Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 11, 2014 | |
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 | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 8,877,795 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
ASSETS | ' | ' | |
Cash and due from banks | $15,521 | $11,890 | [1] |
Interest-earning deposits | 171,173 | 116,739 | [1] |
Cash and cash equivalents | 186,694 | 128,629 | [1] |
CDs held for investment | 26,460 | 31,850 | [1] |
Investment securities available-for-sale, at fair value | 17,234 | 32,566 | [1] |
Investment securities held-to-maturity, at amortized cost | 90,272 | 98,013 | [1] |
Total investment securities | 107,506 | 130,579 | [1] |
Loans | 476,682 | 492,712 | [1] |
Allowance for loan losses | -10,946 | -11,590 | [1] |
Net loans | 465,736 | 481,122 | [1] |
Mortgage loans held for sale | 581 | 0 | |
Accrued interest receivable | 1,550 | 1,576 | [1] |
Bank premises and equipment, net | 12,168 | 12,571 | [1] |
FHLB stock | 5,778 | 6,076 | [1] |
Investment in life insurance | 14,487 | 14,380 | [1] |
Foreclosed assets | 6,048 | 8,502 | [1] |
Other assets | 6,358 | 6,261 | [1] |
Total assets | 833,366 | 821,546 | [1] |
Deposits: | ' | ' | |
Noninterest-bearing demand | 253,359 | 228,203 | [1] |
Money market, NOW accounts and savings accounts | 161,557 | 166,102 | [1] |
Time deposits, $100,000 and over | 154,372 | 162,403 | [1] |
Other time deposits | 95,270 | 100,912 | [1] |
Total deposits | 664,558 | 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 | 1,730 | 1,642 | [1] |
Other liabilities | 3,402 | 4,289 | [1] |
Total liabilities | 806,062 | 799,923 | [1] |
Commitments (Note F) | ' | ' | [1] |
Common stock, $1.00 par value, 80,000,000 shares authorized; 8,877,795 and 7,977,657 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively. | 8,878 | 7,978 | [1] |
Additional paid-in capital | 34,329 | 34,269 | [1] |
Accumulated deficit | -16,614 | -20,390 | [1] |
Accumulated other comprehensive income (loss) | 711 | -234 | [1] |
Total shareholders' equity | 27,304 | 21,623 | [1] |
Total liabilities and shareholders' equity | $833,366 | $821,546 | [1] |
[1] | Derived from audited consolidated financial statements. |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jun. 30, 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 | 8,877,795 | 7,977,657 |
Common stock, shares outstanding | 8,877,795 | 7,977,657 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Interest and dividend income: | ' | ' | ' | ' |
Loans, including fees | $6,535 | $6,785 | $13,096 | $13,781 |
Taxable investments | 628 | 226 | 1,283 | 475 |
Dividends | 81 | 86 | 163 | 185 |
Interest-earning deposits | 184 | 166 | 342 | 334 |
Total interest and dividend income | 7,428 | 7,263 | 14,884 | 14,775 |
Interest expense: | ' | ' | ' | ' |
Deposits | 722 | 897 | 1,457 | 1,847 |
Borrowings | 1,014 | 1,014 | 2,016 | 2,016 |
Subordinated debentures | 50 | 51 | 99 | 102 |
Subordinated promissory notes | 254 | 254 | 506 | 506 |
Total interest expense | 2,040 | 2,216 | 4,078 | 4,471 |
Net interest income | 5,388 | 5,047 | 10,806 | 10,304 |
Provision for loan losses | 0 | 0 | 0 | 35 |
Net interest income after provision for loan losses | 5,388 | 5,047 | 10,806 | 10,269 |
Non-interest income: | ' | ' | ' | ' |
Service charges on deposit accounts | 413 | 410 | 813 | 875 |
Other service charges, commissions and fees | 776 | 780 | 1,480 | 1,510 |
Gains on sale of investment securities available-for-sale, net | 90 | 321 | 214 | 370 |
Recovery of impairment loss on redemption of preferred shares | 0 | 0 | 89 | 0 |
Income from investment in life insurance | 53 | 68 | 107 | 137 |
Other | 2,066 | 101 | 2,797 | 897 |
Total non-interest income | 3,398 | 1,680 | 5,500 | 3,789 |
Non-interest expenses: | ' | ' | ' | ' |
Salaries | 2,440 | 2,531 | 4,851 | 5,314 |
Employee benefits | 476 | 464 | 962 | 1,000 |
Occupancy expenses | 303 | 306 | 593 | 653 |
Equipment expenses | 332 | 342 | 631 | 705 |
Professional and consulting fees | 863 | 703 | 1,430 | 1,406 |
FDIC assessments | 454 | 478 | 908 | 919 |
Foreclosed asset-related costs, net | 83 | 346 | 447 | 940 |
Collection expenses | 172 | 334 | 354 | 691 |
Other | 1,244 | 1,328 | 2,354 | 2,458 |
Total non-interest expenses | 6,367 | 6,832 | 12,530 | 14,086 |
Income (loss) before income taxes | 2,419 | -105 | 3,776 | -28 |
Income tax | 0 | 0 | 0 | 0 |
Net income (loss) | $2,419 | ($105) | $3,776 | ($28) |
Basic net income per common share (in usd per share) | $0.27 | ($0.01) | $0.45 | $0 |
Diluted net income per common share (in usd per share) | $0.27 | ($0.01) | $0.45 | $0 |
Weighted Average Shares Outstanding, Basic | 8,870,439 | 7,924,563 | 8,456,016 | 7,873,330 |
Weighted Average Shares Outstanding, Diluted | 8,896,741 | 7,924,563 | 8,475,539 | 7,873,330 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income (loss) | $2,419 | ($105) | $3,776 | ($28) |
Securities available-for-sale: | ' | ' | ' | ' |
Unrealized gains (losses) on securities available-for-sale | 397 | -529 | 1,211 | -573 |
Tax effect | 0 | 204 | 0 | 221 |
Reclassification of gains recognized in net income | -90 | -321 | -214 | -370 |
Tax effect | 0 | 124 | 0 | 143 |
Amortization of unrealized (losses) gains on investment securities transferred from available-for-sale to held-to-maturity | -24 | 10 | -52 | 10 |
Tax effect | 0 | -4 | 0 | -4 |
Total other comprehensive income (loss) | 283 | -516 | 945 | -573 |
Comprehensive income (loss) | $2,702 | ($621) | $4,721 | ($601) |
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 (loss) | -28 | ' | ' | -28 | ' | |
Other comprehensive income (loss) | -573 | ' | ' | ' | -573 | |
Issuance of common stock (in shares) | ' | 125,333 | ' | ' | ' | |
Issuance of common stock | 168 | 126 | 42 | ' | ' | |
Stock based compensation | 20 | ' | 20 | ' | ' | |
ENDING BALANCE at Jun. 30, 2013 | 22,263 | 7,941 | 34,254 | -20,068 | 136 | |
ENDING BALANCE (in shares) at Jun. 30, 2013 | ' | 7,940,718 | ' | ' | ' | |
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 (loss) | 3,776 | ' | ' | 3,776 | ' | |
Other comprehensive income (loss) | 945 | ' | ' | ' | 945 | |
Issuance of common stock (in shares) | ' | 900,138 | ' | ' | ' | |
Issuance of common stock | 940 | 900 | 40 | ' | ' | |
Stock based compensation | 20 | ' | 20 | ' | ' | |
ENDING BALANCE at Jun. 30, 2014 | $27,304 | $8,878 | $34,329 | ($16,614) | $711 | |
ENDING BALANCE (in shares) at Jun. 30, 2014 | ' | 8,877,795 | ' | ' | ' | |
[1] | Derived from audited consolidated financial statements. |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | |
Cash flows from operating activities: | ' | ' | |
Net income (loss) | $3,776 | ($28) | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | |
Provision for loan losses | 0 | 35 | |
Depreciation and amortization | 439 | 499 | |
Net amortization of bond premiums and discounts | 600 | 913 | |
Stock based compensation | 20 | 20 | |
Gain on sale of investment securities | -214 | -370 | |
Gain on sale of branches | 0 | -586 | |
Gain on disposition of bank premises and equipment | -4 | 0 | |
(Gain) loss on sale of foreclosed assets, net | -69 | 51 | |
Valuation adjustment on foreclosed assets | 295 | 637 | |
Earnings on bank-owned life insurance | -107 | -137 | |
Gain on sale of mortgage loans held for sale | -110 | -324 | |
Originations of mortgage loans held for sale | -13,372 | -15,789 | |
Proceeds from sale of mortgage loans held for sale | 12,901 | 15,695 | |
Recovery of impairment loss on redemption of preferred shares | -89 | 0 | |
Changes in assets and liabilities: | ' | ' | |
Other assets | -263 | 3,478 | |
Accrued interest receivable | 26 | 346 | |
Other liabilities | -887 | 6,382 | |
Accrued interest payable | 88 | -162 | |
Net cash provided by operating activities | 3,030 | 10,660 | |
Cash flows from investing activities: | ' | ' | |
Proceeds from sales and calls of investment securities available-for-sale | 19,981 | 12,879 | |
Proceeds from paydowns of investment securities available-for-sale | 723 | 5,273 | |
Proceeds from paydowns of investment securities held-to-maturity | 7,152 | 3,903 | |
Purchases of investment securities available-for-sale | -3,969 | -17,863 | |
Purchases of investment securities held-to-maturity | 0 | -22,626 | |
Net cash from sale of branches | 0 | -39,622 | |
Redemption (purchase) of CDs held for investment | 5,390 | -3,675 | |
Redemption of FHLB stock | 298 | 339 | |
Net decrease in loans outstanding | 14,844 | 8,663 | |
Purchases of bank premises and equipment, net of disposals | -32 | -142 | |
Proceeds from sales of foreclosed assets | 2,770 | 3,781 | |
Net recoveries on foreclosed assets | 0 | 12 | |
Net cash provided by (used in) investing activities | 47,157 | -49,078 | |
Cash flows from financing activities: | ' | ' | |
Net increase in deposit accounts | 6,938 | 14,986 | |
Proceeds from issuance of common stock | 940 | 168 | |
Net cash provided by financing activities | 7,878 | 15,154 | |
Change in cash and cash equivalents | 58,065 | -23,264 | |
Cash and cash equivalents at beginning of period | 128,629 | [1] | 183,150 |
Cash and cash equivalents at end of period | 186,694 | 159,886 | |
Supplemental disclosures of cash flow information: | ' | ' | |
Interest paid on deposits and borrowings | 3,990 | 4,633 | |
Income taxes paid | 50 | 0 | |
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 | 1,163 | -573 | |
Amortization of net gain on investment securities transferred to held-to-maturity | -52 | 0 | |
Unrealized gains on investment securities transferred from available-for-sale to held-to-maturity | 0 | 355 | |
Available-for-sale securities purchased, not yet settled | 0 | 4,708 | |
Loans transferred to held for investment from held for sale | 542 | 1,121 | |
Transfer of available-for-sale securities to held-to-maturity securities | ' | 76,487 | |
Loans transferred to held for investment from held for sale | 0 | 3,639 | |
Bank premise and equipment transferred to held for investment from held for sale | $0 | $34 | |
[1] | Derived from audited consolidated financial statements. |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
BASIS OF PRESENTATION | ' |
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 six months ended June 30, 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 six months ended June 30, 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. | |
Recent Accounting Pronouncements | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) which supersedes the revenue recognition requirements of Accounting Standards Codification (“ASC”) Topic 605, Revenue Recognition, and most industry-specific guidance on revenue recognition throughout the ASC. The new standard is principles based and provides a five step model to determine when and how revenue is recognized. The core principle of the new standard is that revenue should be recognized when a company transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The new standard also requires disclosure of qualitative and quantitative information surrounding the amount, nature, timing and uncertainty of revenues and cash flows arising from contracts with customers. The new standard is effective for the Company in the first quarter of the year ended December 31, 2017 and can be applied either retrospectively to all periods presented or as a cumulative-effect adjustment as of the date of adoption. Early adoption is not permitted. The Company is currently evaluating the impact of adoption of the new standard on its 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. | |
In July 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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. | |
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. |
NET_INCOME_LOSS_PER_SHARE
NET INCOME (LOSS) PER SHARE | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
NET INCOME (LOSS) PER SHARE | ' | |||||||||||||||
NET INCOME (LOSS) PER SHARE | ||||||||||||||||
Basic net income (loss) per share represents earnings credited to common shareholders divided by the weighted average number of common shares outstanding during the period. Diluted income (loss) 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 (loss) per common share have been computed based upon net income (loss) 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 (amounts in thousands, except share data): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income (loss) available to common shareholders | $ | 2,419 | $ | (105 | ) | $ | 3,776 | $ | (28 | ) | ||||||
Weighted average number of common shares - basic | 8,870,439 | 7,924,563 | 8,456,016 | 7,873,330 | ||||||||||||
Effect of dilutive stock options | 26,302 | — | 19,523 | — | ||||||||||||
Weighted average number of common shares - dilutive | 8,896,741 | 7,924,563 | 8,475,539 | 7,873,330 | ||||||||||||
Basic earnings per common share | $ | 0.27 | $ | (0.01 | ) | $ | 0.45 | $ | 0 | |||||||
Diluted earnings per common share | $ | 0.27 | $ | (0.01 | ) | $ | 0.45 | $ | 0 | |||||||
Anti-dilutive awards | 181,232 | 305,005 | 181,232 | 305,005 | ||||||||||||
For the three and six month period ended June 30, 2014, there were 26,302 and 19,523 dilutive shares as the average market price for the shares was greater than the exercise price. For the three and six months ended June 30, 2013, 305,005 outstanding stock options were anti-dilutive due to losses incurred. |
INVESTMENT_SECURITIES
INVESTMENT SECURITIES | 6 Months Ended | |||||||||||||||||||||||||||||
Jun. 30, 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 June 30, 2014 and December 31, 2013 are as follows (amounts in thousands): | ||||||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||||||
Securities Available-for-Sale: | Amortized | Gross | Gross | Fair | ||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||
Taxable municipal securities | $ | 10,141 | $ | 372 | $ | — | $ | 10,513 | ||||||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||||||||
GNMA | 6,533 | 99 | — | 6,632 | ||||||||||||||||||||||||||
Equity securities | 53 | 36 | — | 89 | ||||||||||||||||||||||||||
Total | $ | 16,727 | $ | 507 | $ | — | $ | 17,234 | ||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||||||
Securities Held-to-Maturity: | Amortized | Gross | Gross | Fair | ||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||
Taxable municipal securities | $ | 3,609 | $ | — | $ | 48 | $ | 3,561 | ||||||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||||||||
GNMA | 82,666 | 705 | 449 | 82,922 | ||||||||||||||||||||||||||
FNMA | 3,997 | 36 | — | 4,033 | ||||||||||||||||||||||||||
Total | $ | 90,272 | $ | 741 | $ | 497 | $ | 90,516 | ||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||
Securities Available-for-Sale: | Amortized | Gross | Gross | Fair | ||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||
Taxable municipal securities | $ | 6,176 | $ | — | $ | 243 | $ | 5,933 | ||||||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||||||||
GNMA | 25,773 | — | 296 | 25,477 | ||||||||||||||||||||||||||
Trust preferred securities | 1,175 | — | 150 | 1,025 | ||||||||||||||||||||||||||
Equity securities | 98 | 33 | — | 131 | ||||||||||||||||||||||||||
Total | $ | 33,222 | $ | 33 | $ | 689 | $ | 32,566 | ||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||
Securities Held-to-Maturity: | Amortized | Gross | Gross | Fair | ||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||
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 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 the transfer. The related $346,000 of holding gains for these held-to-maturity securities remained in accumulated other comprehensive income and is being amortized as an adjustment to interest income over the remaining life of the securities. This will offset the 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 June 30, 2014 and December 31, 2013 (amounts in thousands). There were no available-for-sale securities in a loss position at June 30, 2014. | ||||||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||
Securities Held-to-Maturity: | # Securities | Fair | Unrealized | # Securities | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||
value | losses | value | losses | value | losses | |||||||||||||||||||||||||
Taxable municipal securities | — | $ | — | $ | — | 9 | $ | 3,399 | $ | 48 | $ | 3,399 | $ | 48 | ||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||||||||
GNMA | 3 | 7,013 | 36 | 18 | 35,790 | 413 | 42,803 | 449 | ||||||||||||||||||||||
Total temporarily impaired securities | 3 | $ | 7,013 | $ | 36 | 27 | $ | 39,189 | $ | 461 | $ | 46,202 | $ | 497 | ||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||
Securities Available-for-Sale: | # Securities | Fair | Unrealized | # Securities | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||
value | losses | value | losses | value | losses | |||||||||||||||||||||||||
Taxable municipal securities | 6 | $ | 5,933 | $ | 243 | — | $ | — | $ | — | $ | 5,933 | $ | 243 | ||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||||||||
GNMA | 8 | 25,477 | 296 | — | — | — | 25,477 | 296 | ||||||||||||||||||||||
Trust preferred securities | — | — | — | 2 | 1,025 | 150 | 1,025 | 150 | ||||||||||||||||||||||
Total temporarily impaired securities | 14 | $ | 31,410 | $ | 539 | 2 | $ | 1,025 | $ | 150 | $ | 32,435 | $ | 689 | ||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||
Securities Held-to-Maturity: | # Securities | Fair | Unrealized | # Securities | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||
value | losses | value | losses | value | losses | |||||||||||||||||||||||||
Taxable municipal securities | 8 | $ | 2,776 | $ | 157 | — | $ | — | $ | — | $ | 2,776 | $ | 157 | ||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||||||||
GNMA | 39 | 74,830 | 2,073 | 1 | 2,223 | 98 | 77,053 | 2,171 | ||||||||||||||||||||||
FNMA | 3 | 4,467 | 19 | — | — | — | 4,467 | 19 | ||||||||||||||||||||||
Total temporarily impaired securities | 50 | $ | 82,073 | $ | 2,249 | 1 | $ | 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 June 30, 2014 resulted from changing market interest rates compared to the yields available at the time the underlying securities were purchased. As of June 30, 2014 there were 21 of 52 Government National Mortgage Association ("GNMA") mortgage backed securities ("MBS"), 0 of 3 Federal National Mortgage Association ("FNMA") MBS securities, and 9 of 21 taxable municipal securities that contained net unrealized losses. Management identified no impairment related to credit quality. At June 30, 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 and six months ended June 30, 2014. | ||||||||||||||||||||||||||||||
The amortized cost and fair value of available-for-sale and held-to-maturity securities at June 30, 2014 by contractual maturities are shown on the following table (amounts in thousands). 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. | ||||||||||||||||||||||||||||||
30-Jun-14 | ||||||||||||||||||||||||||||||
Securities Available-for-Sale: | Amortized | Fair | ||||||||||||||||||||||||||||
Cost | Value | |||||||||||||||||||||||||||||
Taxable municipal securities: | ||||||||||||||||||||||||||||||
Due after ten years | 10,141 | 10,513 | ||||||||||||||||||||||||||||
Total taxable municipal securities | 10,141 | 10,513 | ||||||||||||||||||||||||||||
Mortgage-backed securities - GNMA/FNMA: | ||||||||||||||||||||||||||||||
Due after five years through ten years | 2,934 | 2,976 | ||||||||||||||||||||||||||||
Due after ten years | 3,599 | 3,656 | ||||||||||||||||||||||||||||
Total mortgage-backed securities - GNMA/FNMA | 6,533 | 6,632 | ||||||||||||||||||||||||||||
Other securities: | ||||||||||||||||||||||||||||||
Equity securities | 53 | 89 | ||||||||||||||||||||||||||||
Total other securities | 53 | 89 | ||||||||||||||||||||||||||||
Total available-for-sale securities | $ | 16,727 | $ | 17,234 | ||||||||||||||||||||||||||
Securities Held-to-Maturity: | ||||||||||||||||||||||||||||||
Taxable municipal securities: | ||||||||||||||||||||||||||||||
Due after one year through five years | 985 | 979 | ||||||||||||||||||||||||||||
Due after five years through ten years | 2,624 | 2,582 | ||||||||||||||||||||||||||||
Total taxable municipal securities | 3,609 | 3,561 | ||||||||||||||||||||||||||||
Mortgage-backed securities - GNMA/FNMA: | ||||||||||||||||||||||||||||||
Due after one year through five years | 49,551 | 49,935 | ||||||||||||||||||||||||||||
Due after five years through ten years | 24,589 | 24,593 | ||||||||||||||||||||||||||||
Due after ten years | 12,523 | 12,427 | ||||||||||||||||||||||||||||
Total mortgage-backed securities - GNMA/FNMA | 86,663 | 86,955 | ||||||||||||||||||||||||||||
Total held-to-maturity securities | $ | 90,272 | $ | 90,516 | ||||||||||||||||||||||||||
Sales and calls of securities available-for-sale for the six months ended June 30, 2014 and 2013 of $20.0 million and $12.9 million generated net realized gains of $214,000 and $370,000, respectively, and no net realized losses for either period. Sales and calls of securities available-for-sale for the three months ended June 30, 2014 and 2013 of $6.6 million and $10.7 million generated net realized gains of $90,000 and $321,000, respectively, and no net realized losses for either period. |
LOANS_AND_ALLOWANCE_FOR_LOAN_L
LOANS AND ALLOWANCE FOR LOAN LOSSES | 6 Months Ended | |||||||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||||||
Loans and Leases Receivable Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||
LOANS AND ALLOWANCE FOR LOAN LOSSES | ' | |||||||||||||||||||||||||||||||
LOANS AND ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||||||||||||||
The Company has adopted comprehensive lending policies, underwriting standards and loan review procedures, which are reviewed on a regular basis. Each class of loans 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. There have been no significant changes to loan class definitions outlined in the Company's Annual Report on Form 10-K for the year ended December 31, 2013. | ||||||||||||||||||||||||||||||||
The classification of loans as of June 30, 2014 and December 31, 2013 are summarized as follows (amounts in thousands): | ||||||||||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||
Commercial and industrial | $ | 24,826 | $ | 25,858 | ||||||||||||||||||||||||||||
Commercial construction and land development | 59,705 | 66,253 | ||||||||||||||||||||||||||||||
Commercial real estate | 204,625 | 214,159 | ||||||||||||||||||||||||||||||
Residential construction | 30,471 | 28,697 | ||||||||||||||||||||||||||||||
Residential mortgage | 146,877 | 147,300 | ||||||||||||||||||||||||||||||
Consumer | 6,754 | 6,750 | ||||||||||||||||||||||||||||||
Consumer credit cards | 2,164 | 2,339 | ||||||||||||||||||||||||||||||
Business credit cards | 1,140 | 1,124 | ||||||||||||||||||||||||||||||
Other | 653 | 738 | ||||||||||||||||||||||||||||||
Gross loans | 477,215 | 493,218 | ||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||
Net deferred loan fees | (533 | ) | (506 | ) | ||||||||||||||||||||||||||||
Net loans before allowance | 476,682 | 492,712 | ||||||||||||||||||||||||||||||
Allowance for loan losses | (10,946 | ) | (11,590 | ) | ||||||||||||||||||||||||||||
Total net loans | $ | 465,736 | $ | 481,122 | ||||||||||||||||||||||||||||
Allowance for Loan Losses and Recorded Investment in Loans | ||||||||||||||||||||||||||||||||
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 and six months ended June 30, 2014 and 2013 and as of and for the twelve months ended December 31, 2013 (amounts in thousands). | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Allowances for loan losses: | Commercial | Commercial | Commercial | Residential | Residential | Consumer | Other | Totals | ||||||||||||||||||||||||
and | Construction | Real | Construction | Mortgage | ||||||||||||||||||||||||||||
Industrial | and Land | Estate | ||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||
Balance March 31, 2014 | $ | 407 | $ | 5,482 | $ | 2,847 | $ | 701 | $ | 1,900 | $ | 170 | $ | 9 | $ | 11,516 | ||||||||||||||||
Provision for loan losses | (92 | ) | 107 | (326 | ) | 90 | 171 | 44 | 6 | — | ||||||||||||||||||||||
Loans charged-off | (1 | ) | (164 | ) | (283 | ) | (171 | ) | (173 | ) | (47 | ) | — | (839 | ) | |||||||||||||||||
Recoveries | 75 | 142 | 3 | — | 47 | 2 | — | 269 | ||||||||||||||||||||||||
Net recoveries (charge-offs) | 74 | (22 | ) | (280 | ) | (171 | ) | (126 | ) | (45 | ) | — | (570 | ) | ||||||||||||||||||
Balance June 30, 2014 | $ | 389 | $ | 5,567 | $ | 2,241 | $ | 620 | $ | 1,945 | $ | 169 | $ | 15 | $ | 10,946 | ||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Allowances for loan losses: | Commercial | Commercial | Commercial | Residential | Residential | Consumer | Other | Totals | ||||||||||||||||||||||||
and | Construction | Real | Construction | Mortgage | ||||||||||||||||||||||||||||
Industrial | and Land | Estate | ||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||
Balance December 31, 2013 | $ | 487 | $ | 5,037 | $ | 2,981 | $ | 713 | $ | 2,146 | $ | 188 | $ | 38 | $ | 11,590 | ||||||||||||||||
Provision for loan losses | (188 | ) | 663 | (412 | ) | 78 | (150 | ) | 53 | (44 | ) | — | ||||||||||||||||||||
Loans charged-off | (24 | ) | (317 | ) | (490 | ) | (171 | ) | (240 | ) | (89 | ) | — | (1,331 | ) | |||||||||||||||||
Recoveries | 114 | 184 | 162 | — | 189 | 17 | 21 | 687 | ||||||||||||||||||||||||
Net recoveries (charge-offs) | 90 | (133 | ) | (328 | ) | (171 | ) | (51 | ) | (72 | ) | 21 | (644 | ) | ||||||||||||||||||
Balance June 30, 2014 | $ | 389 | $ | 5,567 | $ | 2,241 | $ | 620 | $ | 1,945 | $ | 169 | $ | 15 | $ | 10,946 | ||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 116 | $ | 1,078 | $ | 353 | $ | — | $ | 580 | $ | — | $ | — | $ | 2,127 | ||||||||||||||||
Ending balance: collectively evaluated for impairment (1) | 273 | 4,489 | 1,888 | 620 | 1,365 | 169 | 15 | 8,819 | ||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||
Ending balance | $ | 25,966 | $ | 59,705 | $ | 204,625 | $ | 30,471 | $ | 146,877 | $ | 8,918 | $ | 653 | $ | 477,215 | ||||||||||||||||
Less ending balance: individually evaluated for impairment | $ | 633 | $ | 10,924 | $ | 10,795 | $ | 524 | $ | 9,029 | $ | 533 | $ | — | $ | 32,438 | ||||||||||||||||
Ending balance: collectively | $ | 25,333 | $ | 48,781 | $ | 193,830 | $ | 29,947 | $ | 137,848 | $ | 8,385 | $ | 653 | $ | 444,777 | ||||||||||||||||
evaluated for impairment (1) | ||||||||||||||||||||||||||||||||
(1) Includes $1.5 million in small dollar homogeneous loans collectively evaluated for impairment with $142,000 in reserves established. | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
June 30, 2013 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Allowances for loan losses: | Commercial | Commercial | Commercial | Residential | Residential | Consumer | Other | Totals | ||||||||||||||||||||||||
and | Construction | Real | Construction | Mortgage | ||||||||||||||||||||||||||||
Industrial | and Land | Estate | ||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||
Balance March 31, 2013 | $ | 1,178 | $ | 7,619 | $ | 2,472 | $ | 462 | $ | 3,282 | $ | 173 | $ | 61 | $ | 15,247 | ||||||||||||||||
Provision for loan losses | (395 | ) | 62 | 271 | 125 | (133 | ) | 39 | 31 | — | ||||||||||||||||||||||
Loans charged-off | (42 | ) | (1,198 | ) | (987 | ) | (138 | ) | (294 | ) | (73 | ) | — | (2,732 | ) | |||||||||||||||||
Recoveries | 228 | 91 | 1,007 | — | 158 | 39 | — | 1,523 | ||||||||||||||||||||||||
Net recoveries (charge-offs) | 186 | (1,107 | ) | 20 | (138 | ) | (136 | ) | (34 | ) | — | (1,209 | ) | |||||||||||||||||||
Balance June 30, 2013 | $ | 969 | $ | 6,574 | $ | 2,763 | $ | 449 | $ | 3,013 | $ | 178 | $ | 92 | $ | 14,038 | ||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||||||||||
30-Jun-13 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Allowances for loan losses: | Commercial | Commercial | Commercial | Residential | Residential | Consumer | Other | Totals | ||||||||||||||||||||||||
and | Construction | Real | Construction | Mortgage | ||||||||||||||||||||||||||||
Industrial | and Land | Estate | ||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||
Balance December 31, 2013 | $ | 1,185 | $ | 7,251 | $ | 2,961 | $ | 423 | $ | 4,471 | $ | 188 | $ | 70 | $ | 16,549 | ||||||||||||||||
Provision for loan losses | (407 | ) | 1,003 | 19 | 164 | (835 | ) | 69 | 22 | 35 | ||||||||||||||||||||||
Loans charged-off | (60 | ) | (1,858 | ) | (1,225 | ) | (138 | ) | (904 | ) | (164 | ) | — | (4,349 | ) | |||||||||||||||||
Recoveries | 251 | 178 | 1,008 | — | 281 | 85 | — | 1,803 | ||||||||||||||||||||||||
Net recoveries (charge-offs) | 191 | (1,680 | ) | (217 | ) | (138 | ) | (623 | ) | (79 | ) | — | (2,546 | ) | ||||||||||||||||||
Balance June 30, 2013 | $ | 969 | $ | 6,574 | $ | 2,763 | $ | 449 | $ | 3,013 | $ | 178 | $ | 92 | $ | 14,038 | ||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 338 | $ | 348 | $ | 509 | $ | — | $ | 253 | $ | — | $ | — | $ | 1,448 | ||||||||||||||||
Ending balance: collectively | 631 | 6,226 | 2,254 | 449 | 2,760 | 178 | 92 | 12,590 | ||||||||||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||
Ending balance | $ | 27,701 | $ | 79,362 | $ | 186,324 | $ | 24,263 | $ | 161,806 | $ | 9,207 | $ | 907 | $ | 489,570 | ||||||||||||||||
Less ending balance: individually evaluated for impairment | $ | 1,246 | $ | 16,108 | $ | 15,392 | $ | 695 | $ | 14,991 | $ | 22 | $ | — | $ | 48,454 | ||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 26,455 | $ | 63,254 | $ | 170,932 | $ | 23,568 | $ | 146,815 | $ | 9,185 | $ | 907 | $ | 441,116 | ||||||||||||||||
Twelve Months Ended | ||||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Allowances for loan losses: | Commercial | Commercial | Commercial | Residential | Residential | Consumer | Other | Totals | ||||||||||||||||||||||||
and | Construction | Real | Construction | Mortgage | ||||||||||||||||||||||||||||
Industrial | and Land | Estate | ||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||
Balance December 31, 2012 | $ | 1,185 | $ | 7,251 | $ | 2,961 | $ | 423 | $ | 4,471 | $ | 188 | $ | 70 | $ | 16,549 | ||||||||||||||||
Provision for loan losses | (801 | ) | 958 | 701 | 428 | (1,332 | ) | 117 | (36 | ) | 35 | |||||||||||||||||||||
Loans charged-off | (411 | ) | (3,759 | ) | (2,226 | ) | (138 | ) | (1,553 | ) | (271 | ) | — | (8,358 | ) | |||||||||||||||||
Recoveries | 514 | 587 | 1,545 | — | 560 | 154 | 4 | 3,364 | ||||||||||||||||||||||||
Net recoveries (charge-offs) | 103 | (3,172 | ) | (681 | ) | (138 | ) | (993 | ) | (117 | ) | 4 | (4,994 | ) | ||||||||||||||||||
Balance December 31, 2013 | $ | 487 | $ | 5,037 | $ | 2,981 | $ | 713 | $ | 2,146 | $ | 188 | $ | 38 | $ | 11,590 | ||||||||||||||||
Ending balance: individually | $ | 80 | $ | 264 | $ | 887 | $ | 137 | $ | 457 | $ | — | $ | — | $ | 1,825 | ||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Ending balance: collectively | 407 | 4,773 | 2,094 | 576 | 1,689 | 188 | 38 | 9,765 | ||||||||||||||||||||||||
evaluated for impairment (1) | ||||||||||||||||||||||||||||||||
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) | ||||||||||||||||||||||||||||||||
(1) In mid-2013, the Company began evaluating small dollar homogeneous loans collectively for impairment. These loans and their related allowance for loan losses are included in these totals. At December 31, 2013, there were $1.7 million in impaired loans collectively evaluated for impairment with $226,000 in reserves established. | ||||||||||||||||||||||||||||||||
Credit Risk | ||||||||||||||||||||||||||||||||
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. There have been no significant changes in credit grade definitions as outlined in the Company's Annual Report on Form 10-K for the year ended December 31, 2013. | ||||||||||||||||||||||||||||||||
The following tables are an analysis of the creditworthiness class by loan class and credit card portfolio exposure as of | ||||||||||||||||||||||||||||||||
June 30, 2014 and December 31, 2013 (amounts in thousands). | ||||||||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Residential | Consumer | Other | Totals | |||||||||||||||||||||||||
and | Construction | Real | Construction | Mortgage | ||||||||||||||||||||||||||||
Industrial | and Land | Estate | ||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||
1 - Lowest Risk | $ | 2,110 | $ | — | $ | — | $ | — | $ | — | $ | 1,608 | $ | 8 | $ | 3,726 | ||||||||||||||||
2 - Satisfactory Quality | 655 | 587 | 2,467 | 397 | 14,425 | 376 | 13 | 18,920 | ||||||||||||||||||||||||
3 - Satisfactory-Merits Attention | 9,485 | 10,654 | 76,742 | 3,282 | 53,952 | 3,728 | 343 | 158,186 | ||||||||||||||||||||||||
4 - Low Satisfactory | 11,486 | 35,316 | 112,158 | 26,268 | 57,577 | 955 | 166 | 243,926 | ||||||||||||||||||||||||
5 - Special mention | 228 | 2,859 | 4,455 | — | 8,494 | 53 | 123 | 16,212 | ||||||||||||||||||||||||
6-8 - Substandard | 862 | 10,289 | 8,803 | 524 | 12,429 | 34 | — | 32,941 | ||||||||||||||||||||||||
$ | 24,826 | $ | 59,705 | $ | 204,625 | $ | 30,471 | $ | 146,877 | $ | 6,754 | $ | 653 | $ | 473,911 | |||||||||||||||||
Consumer - | Business- | |||||||||||||||||||||||||||||||
Credit Card | Credit Card | |||||||||||||||||||||||||||||||
Performing | $ | 2,155 | $ | 1,133 | ||||||||||||||||||||||||||||
Non Performing | 9 | 7 | ||||||||||||||||||||||||||||||
Total | $ | 2,164 | $ | 1,140 | ||||||||||||||||||||||||||||
Total Loans | $ | 477,215 | ||||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Residential | Consumer | Other | Totals | |||||||||||||||||||||||||
and | Construction | Real | Construction | Mortgage | ||||||||||||||||||||||||||||
Industrial | and Land | Estate | ||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||
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 | |||||||||||||||||
Consumer- | Business- | |||||||||||||||||||||||||||||||
Credit Card | Credit Card | |||||||||||||||||||||||||||||||
Performing | $ | 2,316 | $ | 1,124 | ||||||||||||||||||||||||||||
Non Performing | 23 | — | ||||||||||||||||||||||||||||||
Total | $ | 2,339 | $ | 1,124 | ||||||||||||||||||||||||||||
Total Loans | $ | 493,218 | ||||||||||||||||||||||||||||||
Asset Quality | ||||||||||||||||||||||||||||||||
The following tables are an age analysis of past due loans, including those on nonaccrual. by loan class, as of June 30, 2014 and December 31, 2013 (amounts in thousands). | ||||||||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||||||||
30-89 Days | Nonaccrual | Greater than 90 Days Past Due | Total Past | Current | Total | |||||||||||||||||||||||||||
Past Due | Due | Loans | ||||||||||||||||||||||||||||||
Commercial & industrial | $ | 32 | $ | 625 | $ | — | $ | 657 | $ | 24,169 | $ | 24,826 | ||||||||||||||||||||
Commercial construction and land development | 54 | 9,537 | — | 9,591 | 50,114 | 59,705 | ||||||||||||||||||||||||||
Commercial real estate | 246 | 3,949 | — | 4,195 | 200,430 | 204,625 | ||||||||||||||||||||||||||
Residential construction | — | 525 | — | 525 | 29,946 | 30,471 | ||||||||||||||||||||||||||
Residential mortgage | 796 | 8,756 | — | 9,552 | 136,792 | 146,344 | ||||||||||||||||||||||||||
Consumer | 55 | 6 | — | 61 | 7,226 | 7,287 | ||||||||||||||||||||||||||
Consumer credit cards | 70 | — | 9 | 79 | 2,085 | 2,164 | ||||||||||||||||||||||||||
Business credit cards | 63 | — | 7 | 70 | 1,070 | 1,140 | ||||||||||||||||||||||||||
Other loans | — | — | — | — | 653 | 653 | ||||||||||||||||||||||||||
Total | $ | 1,316 | $ | 23,398 | $ | 16 | $ | 24,730 | $ | 452,485 | $ | 477,215 | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
30-89 Days | Nonaccrual | Greater than 90 Days Past Due | Total Past | Current | Total | |||||||||||||||||||||||||||
Past Due | Due | Loans | ||||||||||||||||||||||||||||||
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 | $ | 27,227 | $ | 23 | $ | 28,845 | $ | 464,373 | $ | 493,218 | ||||||||||||||||||||
Total nonperforming assets at June 30, 2014 and December 31, 2013 consist of the following (amounts in thousands): | ||||||||||||||||||||||||||||||||
June 30, 2014 | 31-Dec-13 | |||||||||||||||||||||||||||||||
Loans past due ninety days or more and still accruing | $ | 16 | $ | 23 | ||||||||||||||||||||||||||||
Nonaccrual loans | 23,398 | 27,227 | ||||||||||||||||||||||||||||||
Foreclosed assets | 6,048 | 8,502 | ||||||||||||||||||||||||||||||
Total nonperforming assets | $ | 29,462 | $ | 35,752 | ||||||||||||||||||||||||||||
Impaired Loans | ||||||||||||||||||||||||||||||||
The following tables illustrate the impaired loans by loan class as of June 30, 2014 and December 31, 2013 (amounts in thousands). | ||||||||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||||||||
Year to Date | ||||||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | ||||||||||||||||||||||||||||
Balance | Investment | Recognized | ||||||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 364 | $ | 377 | $ | — | $ | 367 | $ | 1 | ||||||||||||||||||||||
Commercial construction and land development | 7,153 | 11,465 | — | 7,434 | 11 | |||||||||||||||||||||||||||
Commercial real estate | 8,285 | 9,965 | — | 8,581 | 101 | |||||||||||||||||||||||||||
Residential construction | 524 | 1,134 | — | 667 | — | |||||||||||||||||||||||||||
Residential mortgage | 7,896 | 9,655 | — | 8,099 | 52 | |||||||||||||||||||||||||||
Consumer | 6 | 7 | — | 8 | — | |||||||||||||||||||||||||||
Subtotal: | 24,228 | 32,603 | — | 25,156 | 165 | |||||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 297 | $ | 320 | $ | 116 | $ | 301 | $ | — | ||||||||||||||||||||||
Commercial construction and land development | 3,892 | 4,604 | 1,078 | 3,983 | 9 | |||||||||||||||||||||||||||
Commercial real estate | 2,686 | 2,846 | 353 | 2,702 | 54 | |||||||||||||||||||||||||||
Residential mortgage | 2,821 | 3,095 | 580 | 2,836 | 10 | |||||||||||||||||||||||||||
Subtotal: | 9,696 | 10,865 | 2,127 | 9,822 | 73 | |||||||||||||||||||||||||||
Totals: | ||||||||||||||||||||||||||||||||
Commercial | 22,677 | 29,577 | 1,547 | 23,368 | 176 | |||||||||||||||||||||||||||
Consumer | 6 | 7 | — | 8 | — | |||||||||||||||||||||||||||
Residential | 11,241 | 13,884 | 580 | 11,602 | 62 | |||||||||||||||||||||||||||
Grand Total | $ | 33,924 | $ | 43,468 | $ | 2,127 | $ | 34,978 | $ | 238 | ||||||||||||||||||||||
At June 30, 2014, the recorded investment in loans considered impaired totaled $33.9 million. Of the total investment in loans considered impaired, $9.7 million were found to show specific impairment for which a $2.1 million valuation allowance was recorded; the remaining $24.2 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 June 30, 2014, the average recorded investment in impaired loans was approximately $35.0 million. The amount of interest recognized on impaired loans during the portion of the year that they were considered impaired was approximately $238,000. | ||||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Year to Date | ||||||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | ||||||||||||||||||||||||||||
Balance | Investment | Recognized | ||||||||||||||||||||||||||||||
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 | 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 | — | |||||||||||||||||||||||||||
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 | 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 | |||||||||||||||||||||||||||
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. | ||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | ||||||||||||||||||||||||||||||||
Loans are classified as a troubled debt restructuring ("TDR") when, for economic or legal reasons which result in a debtor experiencing financial difficulties, the Company grants a concession through a modification of the original loan agreement that would not otherwise be considered. Loans in the process of renewal or modification are reviewed by the Company to determine if the risk grade assigned is accurate based on updated information. The Company's policy with respect to accrual of interest on loans restructured in a TDR process 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 considered and the loan is considered performing. 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 and nonperforming until such time as continued performance has been demonstrated, which is typically a period of at least six consecutive payments. If the borrower does not perform under the restructured terms, the loan is placed on nonaccrual status. | ||||||||||||||||||||||||||||||||
The following table provides a summary of loans modified as TDRs at June 30, 2014 and December 31, 2013 (amounts in thousands). | ||||||||||||||||||||||||||||||||
June 30, 2014: | Accrual | Nonaccrual | Total TDRs | Allowance for Loan Losses Allocated | ||||||||||||||||||||||||||||
Commercial & industrial | $ | 37 | $ | 299 | $ | 336 | $ | — | ||||||||||||||||||||||||
Commercial construction and land development | 1,509 | 4,107 | 5,616 | 247 | ||||||||||||||||||||||||||||
Commercial real estate | 5,448 | 2,217 | 7,665 | 180 | ||||||||||||||||||||||||||||
Residential mortgage | 1,961 | 2,385 | 4,346 | 230 | ||||||||||||||||||||||||||||
Total modifications | $ | 8,955 | $ | 9,008 | $ | 17,963 | $ | 657 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
The following table presents a breakdown of new TDRs by loan class and the type of concession made to the borrower for the three and six months ended June 30, 2014. | ||||||||||||||||||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||||||||||||
June 30, 2014 | June 30, 2014 | |||||||||||||||||||||||||||||||
Number of loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Number of loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | |||||||||||||||||||||||||||
Forgiveness of principal: | ||||||||||||||||||||||||||||||||
Commercial construction and land development | 2 | $ | 100 | $ | 42 | 2 | $ | 100 | $ | 42 | ||||||||||||||||||||||
Subtotal | 2 | $ | 100 | $ | 42 | 2 | $ | 100 | $ | 42 | ||||||||||||||||||||||
Total | 2 | $ | 100 | $ | 42 | 2 | $ | 100 | $ | 42 | ||||||||||||||||||||||
The table below details TDRs that the Company has entered into during the 12 months ended June 30, 2014 (amounts in thousands, except number of loans). The three TDRs executed during the previous 12 months have been converted to or remain on nonaccrual status. | ||||||||||||||||||||||||||||||||
For the 12 month period ended June 30, 2014 | ||||||||||||||||||||||||||||||||
Paid in full | Paying as restructured | Converted to nonaccrual | Foreclosure/Default | |||||||||||||||||||||||||||||
Number of loans | Recorded Investment | Number of loans | Recorded Investment | Number of loans | Recorded Investment | Number of loans | Recorded Investment | |||||||||||||||||||||||||
Extended payment terms | — | — | — | — | 1 | 55 | — | — | ||||||||||||||||||||||||
Forgiveness of principal | — | — | — | — | 2 | 42 | — | — | ||||||||||||||||||||||||
Total | — | $ | — | — | $ | — | 3 | $ | 97 | — | $ | — | ||||||||||||||||||||
There were no TDR loans modified during the previous 12 months that had a payment default for the three and six months ended June 30, 2014. |
SUBORDINATED_DEBT
SUBORDINATED DEBT | 6 Months Ended |
Jun. 30, 2014 | |
Subordinated Debt [Abstract] | ' |
SUBORDINATED DEBT | ' |
SUBORDINATED DEBT | |
The Company is currently prohibited by the Written Agreement, described in Note H - Regulatory Restrictions 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 second quarter of 2014. The Company exercised its right to defer regularly scheduled interest payments on its outstanding TPS and as of June 30, 2014, $799,000 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. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended | |||
Jun. 30, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
COMMITMENTS AND CONTINGENCIES | ' | |||
COMMITMENTS AND CONTIGENCIES | ||||
Commitments | ||||
The following table presents loan commitments at June 30, 2014 (amounts in thousands). | ||||
June 30, 2014 | ||||
Commitments to extend credit | $ | 4,632 | ||
Undisbursed lines of credit | 74,745 | |||
Financial stand-by letters of credit | 238 | |||
Performance stand-by letters of credit | 750 | |||
Legally binding commitments | 80,365 | |||
Unused credit card lines | 14,568 | |||
Total | $ | 94,933 | ||
Pledged Assets | ||||
Certain assets are pledged to secure municipal deposits, borrowings, and borrowing capacity, subject to certain limits, at the Federal Home Loan Bank ("FHLB") and the Federal Reserve Bank of Richmond ("FRB"), as well as for other purposes as required or permitted by law. FHLB borrowings are secured by cash, securities, and a floating lien covering the Company's loan portfolio of qualifying residential (1-4 units) first mortgage and commercial real estate loans. In addition, securities are pledged against the Company's ability to borrow funds from various short term lines of credit, and utilizing the discount window of the FRB. The following table provides the total market value of pledged assets by asset type at June 30, 2014 (amounts in thousands). | ||||
30-Jun-14 | ||||
Cash | $ | 24,000 | ||
Securities | 106,933 | |||
Loans | 49,470 | |||
Legal Proceedings | ||||
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 District of Maryland granted the motion and dismissed the case; that ruling is on appeal to the United States Court of Appeals for the Fourth Circuit. The Middle District of North Carolina granted the motion in part and denied it in part. The motions to dismiss in the two 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. |
FAIR_VALUE_MEASUREMENT
FAIR VALUE MEASUREMENT | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
FAIR VALUE MEASUREMENT | ' | |||||||||||||||||||
FAIR VALUE MEASUREMENT | ||||||||||||||||||||
Fair Value Measured 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 June 30, 2014, all of the Company’s mortgage-backed securities were agency issued and designated as Level 2 securities. Securities historically classified as Level 3 include trust preferred securities in less liquid markets; however, as of June 30, 2014, there were no Level 3 securities. | ||||||||||||||||||||
The following table presents information about assets measured at fair value on a recurring basis at June 30, 2014 and December 31, 2013 (amounts in thousands). | ||||||||||||||||||||
Fair Value Measurements at | ||||||||||||||||||||
June 30, 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 | ||||||||||||||||||||
Available-for-Sale Securities: | 6/30/14 | 6/30/14 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Taxable municipal securities | $ | 10,513 | $ | 10,513 | $ | — | $ | 10,513 | $ | — | ||||||||||
Mortgage-backed securities - GNMA | 6,632 | 6,632 | — | 6,632 | — | |||||||||||||||
Equity securities | 89 | 89 | 78 | 11 | — | |||||||||||||||
Total available-for-sale securities | $ | 17,234 | $ | 17,234 | $ | 78 | $ | 17,156 | $ | — | ||||||||||
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 | ||||||||||||||||||||
Available-for-Sale Securities: | 12/31/13 | 12/31/13 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Taxable municipal securities | $ | 5,933 | $ | 5,933 | $ | — | $ | 5,933 | $ | — | ||||||||||
Mortgage-backed securities - GNMA | 25,477 | 25,477 | — | 25,477 | — | |||||||||||||||
Trust preferred securities | 1,025 | 1,025 | — | — | 1,025 | |||||||||||||||
Equity securities | 131 | 131 | 70 | 61 | — | |||||||||||||||
Total available-for-sale securities | $ | 32,566 | $ | 32,566 | $ | 70 | $ | 31,471 | $ | 1,025 | ||||||||||
The following table presents the reconciliation for the three and six months ended June 30, 2014 and 2013 for all Level 3 assets that are measured at fair value on a recurring basis (amounts in thousands). | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||
Securities Available-for-Sale: | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Beginning Balance | $ | 410 | $ | 1,019 | $ | 1,025 | $ | 1,019 | ||||||||||||
Total realized and unrealized gains or (losses): | ||||||||||||||||||||
Included in earnings | 90 | — | 90 | — | ||||||||||||||||
Purchases, issuances and settlements | (500 | ) | — | (1,115 | ) | — | ||||||||||||||
Ending Balance | $ | — | $ | 1,019 | $ | — | $ | 1,019 | ||||||||||||
Fair Value Measured on a Nonrecurring Basis. | ||||||||||||||||||||
The Company measures certain assets at fair value on a nonrecurring basis, as described below. | ||||||||||||||||||||
Loans Held for Sale | ||||||||||||||||||||
Loans held for sale are carried at the lower of cost or market value. The fair value of loans held for sale is based on what secondary markets are currently offering for portfolios with similar characteristics. As such, the Company classifies loans held for sale as a Level 2 valuation. | ||||||||||||||||||||
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. 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 June 30, 2014, the Company identified $19.4 million in impaired loans that were carried at fair value which included $9.7 million in loans that required a specific valuation allowance of $2.1 million and an additional $9.7 million in loans without a specific valuation allowance that have previously been written down to fair value. As of December 31, 2013, the Company 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 $12.2 million in loans without a specific valuation allowance that have previously been written down to fair value. | ||||||||||||||||||||
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 six month period ended June 30, 2014, the Company recognized approximately $295,000 in valuation reductions on foreclosed assets and the carrying value of foreclosed assets was $6.0 million at June 30, 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 certain assets measured on a non-recurring basis at fair value at June 30, 2014 and December 31, 2013 (amounts in thousands). | ||||||||||||||||||||
Fair Value Measurements at | ||||||||||||||||||||
June 30, 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 | ||||||||||||||||||||
6/30/14 | 6/30/14 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||
Loans held for sale | $ | 581 | $ | 581 | $ | — | $ | 581 | $ | — | ||||||||||
Impaired loans | 17,302 | 17,302 | — | — | 17,302 | |||||||||||||||
Foreclosed assets | 6,048 | 6,048 | — | — | 6,048 | |||||||||||||||
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) | ||||||||||||||||
Impaired loans | $ | 18,215 | $ | 18,215 | $ | — | $ | — | $ | 18,215 | ||||||||||
Foreclosed assets | 8,502 | 8,502 | — | — | 8,502 | |||||||||||||||
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 June 30, 2014 (amounts in thousands, except percentages): | ||||||||||||||||||||
Total Carrying Amount at June 30, 2014 | Valuation Methodology | Range of Inputs | ||||||||||||||||||
Recurring measurements: | ||||||||||||||||||||
Trust preferred securities | $ | — | Probability of default | 10 - 20% | ||||||||||||||||
Loss given default | 100% | |||||||||||||||||||
Nonrecurring measurements: | ||||||||||||||||||||
Impaired loans | $ | 17,302 | Collateral discounts | 9 - 50% | ||||||||||||||||
Foreclosed assets | $ | 6,048 | Discounted appraisals | 10 - 30% | ||||||||||||||||
Collateral discounts to determine fair value on impaired loans vary widely and result from the consideration of the following factors: the age of the most recent appraisal (i.e. an appraisal dating from an earlier period of real estate speculation could require as much as a 40% discount), the type of asset serving as collateral, the expected marketability of the asset, its material or environmental condition, and comparisons to actual sales data of similar assets from both internal and external sources. | ||||||||||||||||||||
The following table reflects the general range of collateral discounts for impaired loans by segment: | ||||||||||||||||||||
Loan Segment: | Range of Percentages | |||||||||||||||||||
Commercial construction and land development | 10.5% - 40% | |||||||||||||||||||
Commercial real estate other | 12.5% - 50% | |||||||||||||||||||
Residential construction | 9% - 30% | |||||||||||||||||||
Residential mortgage | 9% - 20% | |||||||||||||||||||
All other segments | 9% - 20% | |||||||||||||||||||
As foreclosed assets are brought into other real estate owned through a process which requires a fair market valuation, further discounts typically reflect market conditions specific to the asset. These conditions are usually captured in subsequent appraisals which are required on an annual basis, and depending upon asset type and marketability demonstrate a more restrained variance than that noted above. | ||||||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||||
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. | ||||||||||||||||||||
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 June 30, 2014 and December 31, 2013 (amounts in thousands). | ||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||
Carrying | Estimated | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Value | Fair Value | |||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 186,694 | $ | 186,694 | $ | 186,694 | $ | — | $ | — | ||||||||||
CDs held for investment | 26,460 | 26,460 | — | 26,460 | — | |||||||||||||||
Securities available-for-sale | 17,234 | 17,234 | 78 | 17,156 | — | |||||||||||||||
Securities held-to-maturity | 90,272 | 90,516 | — | 90,516 | — | |||||||||||||||
Loans held for sale | 581 | 581 | — | 581 | — | |||||||||||||||
Loans, net | 465,736 | 444,032 | — | — | 444,032 | |||||||||||||||
FHLB stock | 5,778 | 5,778 | — | 5,778 | — | |||||||||||||||
Accrued interest receivable | 1,550 | 1,550 | — | 1,550 | — | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | $ | 664,558 | $ | 666,311 | $ | — | $ | 666,311 | $ | — | ||||||||||
Subordinated debentures and subordinated promissory notes | 24,372 | 24,374 | — | — | 24,374 | |||||||||||||||
Borrowings | 112,000 | 120,948 | — | 120,948 | — | |||||||||||||||
Accrued interest payable | 1,730 | 1,730 | — | 1,730 | — | |||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Carrying | Estimated | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Value | Fair Value | |||||||||||||||||||
Financial assets: | ||||||||||||||||||||
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 | 70 | 31,471 | 1,025 | |||||||||||||||
Securities held-to-maturity | 98,013 | 95,831 | — | 95,831 | — | |||||||||||||||
Loans, net | 481,122 | 458,254 | — | — | 458,254 | |||||||||||||||
FHLB stock | 6,076 | 6,076 | — | 6,076 | — | |||||||||||||||
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
REGULATORY RESTRICTIONS | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 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 six months ended June 30, 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 (amounts in thousands, except ratios). At June 30, 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 June 30, 2014: | |||||||||||||||||||||
Total Capital (to Risk Weighted Assets) | $ | 54,852 | 12.1 | % | $ | 36,381 | 8 | % | $ | 45,477 | 10 | % | |||||||||
Tier I Capital (to Risk Weighted Assets) | 49,102 | 10.8 | % | 18,191 | 4 | % | 27,286 | 6 | % | ||||||||||||
Tier I Capital (to Average Assets) | 49,102 | 5.9 | % | 33,017 | 4 | % | 41,271 | 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 June 30, 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 11.7%, 7.8%, and 4.3%, and 10.7%, 6.3%, and 3.6%, respectively. At June 30, 2014 the Company was classified as adequately capitalized for regulatory capital purposes. | |||||||||||||||||||||
In late May 2011, the Company and the Bank entered into a formal written agreement (the "Written Agreement") with 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 | 6 Months Ended |
Jun. 30, 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 (49.99% of 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 Company expects the second closing to occur during the month of August 2014, contemporaneous with the completion of the Rights Offering. | |
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 June 18, 2014, the Company commenced its previously announced rights offering of up to approximately $26.6 million (the “Rights Offering”). In the Rights Offering, the Company distributed, at no charge, non-transferable subscription rights to its shareholders as of 5:00 p.m., Eastern Time, on June 16, 2014 (the “Record Date”). For each share of Common Stock held as of the Record Date, each shareholder received 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 exercised their Basic Subscription Privilege in full had 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 subscription period of the Rights Offering expired at 5:00 p.m., Eastern Time, on July 31, 2014. Based on the preliminary results, the Company estimates that it will receive aggregate gross proceeds in connection with the Rights Offering and Standby Offering of $24.0 million dollars. The Company expects that it will receive the maximum amount permissible pursuant to the terms of the Rights Offering and that all basic subscriptions received will be filled. Based on the significant response to the Rights Offering, the Company anticipates that only a fraction of the oversubscription requests will be satisfied. The Company’s estimates are preliminary, as the Rights Offering is subject to a finalization and verification process by the Company and the subscription agent, Registrar and Transfer Company, which the Company expects to be complete during the month of August 2014. |
EMPLOYEE_STOCK_OWNERSHIP_PLAN
EMPLOYEE STOCK OWNERSHIP PLAN | 6 Months Ended |
Jun. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
EMPLOYEE STOCK OWNERSHIP PLAN | ' |
EMPLOYEE STOCK OWNERSHIP PLAN | |
The Company terminated the Employee Stock Ownership Plan (the "ESOP") on April 8, 2014 (“Termination Date”). As a result, the accounts of all participants in the ESOP became 100% vested as of the Termination Date. Each participant received a distribution of 100% of his or her account at no cost to the participant. The cost to the Company was immaterial. |
BASIS_OF_PRESENTATION_Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) which supersedes the revenue recognition requirements of Accounting Standards Codification (“ASC”) Topic 605, Revenue Recognition, and most industry-specific guidance on revenue recognition throughout the ASC. The new standard is principles based and provides a five step model to determine when and how revenue is recognized. The core principle of the new standard is that revenue should be recognized when a company transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The new standard also requires disclosure of qualitative and quantitative information surrounding the amount, nature, timing and uncertainty of revenues and cash flows arising from contracts with customers. The new standard is effective for the Company in the first quarter of the year ended December 31, 2017 and can be applied either retrospectively to all periods presented or as a cumulative-effect adjustment as of the date of adoption. Early adoption is not permitted. The Company is currently evaluating the impact of adoption of the new standard on its 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. | |
In July 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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. | |
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. |
NET_INCOME_LOSS_PER_SHARE_Tabl
NET INCOME (LOSS) PER SHARE (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Schedule of Weighted Average Number of Shares | ' | |||||||||||||||
Basic and diluted net income (loss) per common share have been computed based upon net income (loss) 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 (amounts in thousands, except share data): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income (loss) available to common shareholders | $ | 2,419 | $ | (105 | ) | $ | 3,776 | $ | (28 | ) | ||||||
Weighted average number of common shares - basic | 8,870,439 | 7,924,563 | 8,456,016 | 7,873,330 | ||||||||||||
Effect of dilutive stock options | 26,302 | — | 19,523 | — | ||||||||||||
Weighted average number of common shares - dilutive | 8,896,741 | 7,924,563 | 8,475,539 | 7,873,330 | ||||||||||||
Basic earnings per common share | $ | 0.27 | $ | (0.01 | ) | $ | 0.45 | $ | 0 | |||||||
Diluted earnings per common share | $ | 0.27 | $ | (0.01 | ) | $ | 0.45 | $ | 0 | |||||||
Anti-dilutive awards | 181,232 | 305,005 | 181,232 | 305,005 | ||||||||||||
INVESTMENT_SECURITIES_Tables
INVESTMENT SECURITIES (Tables) | 6 Months Ended | |||||||||||||||||||||||||||||
Jun. 30, 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 | ' | |||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||
Securities Available-for-Sale: | Amortized | Gross | Gross | Fair | ||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||
Taxable municipal securities | $ | 6,176 | $ | — | $ | 243 | $ | 5,933 | ||||||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||||||||
GNMA | 25,773 | — | 296 | 25,477 | ||||||||||||||||||||||||||
Trust preferred securities | 1,175 | — | 150 | 1,025 | ||||||||||||||||||||||||||
Equity securities | 98 | 33 | — | 131 | ||||||||||||||||||||||||||
Total | $ | 33,222 | $ | 33 | $ | 689 | $ | 32,566 | ||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||||||
Securities Available-for-Sale: | Amortized | Gross | Gross | Fair | ||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||
Taxable municipal securities | $ | 10,141 | $ | 372 | $ | — | $ | 10,513 | ||||||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||||||||
GNMA | 6,533 | 99 | — | 6,632 | ||||||||||||||||||||||||||
Equity securities | 53 | 36 | — | 89 | ||||||||||||||||||||||||||
Total | $ | 16,727 | $ | 507 | $ | — | $ | 17,234 | ||||||||||||||||||||||
Schedule of Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses, and Fair Values of Securities Held to Maturity | ' | |||||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||||||
Securities Held-to-Maturity: | Amortized | Gross | Gross | Fair | ||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||
Taxable municipal securities | $ | 3,609 | $ | — | $ | 48 | $ | 3,561 | ||||||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||||||||
GNMA | 82,666 | 705 | 449 | 82,922 | ||||||||||||||||||||||||||
FNMA | 3,997 | 36 | — | 4,033 | ||||||||||||||||||||||||||
Total | $ | 90,272 | $ | 741 | $ | 497 | $ | 90,516 | ||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||
Securities Held-to-Maturity: | Amortized | Gross | Gross | Fair | ||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||
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 June 30, 2014 and December 31, 2013 (amounts in thousands). There were no available-for-sale securities in a loss position at June 30, 2014. | ||||||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||
Securities Held-to-Maturity: | # Securities | Fair | Unrealized | # Securities | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||
value | losses | value | losses | value | losses | |||||||||||||||||||||||||
Taxable municipal securities | — | $ | — | $ | — | 9 | $ | 3,399 | $ | 48 | $ | 3,399 | $ | 48 | ||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||||||||
GNMA | 3 | 7,013 | 36 | 18 | 35,790 | 413 | 42,803 | 449 | ||||||||||||||||||||||
Total temporarily impaired securities | 3 | $ | 7,013 | $ | 36 | 27 | $ | 39,189 | $ | 461 | $ | 46,202 | $ | 497 | ||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||
Securities Available-for-Sale: | # Securities | Fair | Unrealized | # Securities | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||
value | losses | value | losses | value | losses | |||||||||||||||||||||||||
Taxable municipal securities | 6 | $ | 5,933 | $ | 243 | — | $ | — | $ | — | $ | 5,933 | $ | 243 | ||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||||||||
GNMA | 8 | 25,477 | 296 | — | — | — | 25,477 | 296 | ||||||||||||||||||||||
Trust preferred securities | — | — | — | 2 | 1,025 | 150 | 1,025 | 150 | ||||||||||||||||||||||
Total temporarily impaired securities | 14 | $ | 31,410 | $ | 539 | 2 | $ | 1,025 | $ | 150 | $ | 32,435 | $ | 689 | ||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||
Securities Held-to-Maturity: | # Securities | Fair | Unrealized | # Securities | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||
value | losses | value | losses | value | losses | |||||||||||||||||||||||||
Taxable municipal securities | 8 | $ | 2,776 | $ | 157 | — | $ | — | $ | — | $ | 2,776 | $ | 157 | ||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||||||||
GNMA | 39 | 74,830 | 2,073 | 1 | 2,223 | 98 | 77,053 | 2,171 | ||||||||||||||||||||||
FNMA | 3 | 4,467 | 19 | — | — | — | 4,467 | 19 | ||||||||||||||||||||||
Total temporarily impaired securities | 50 | $ | 82,073 | $ | 2,249 | 1 | $ | 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 June 30, 2014 by contractual maturities are shown on the following table (amounts in thousands). 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. | ||||||||||||||||||||||||||||||
30-Jun-14 | ||||||||||||||||||||||||||||||
Securities Available-for-Sale: | Amortized | Fair | ||||||||||||||||||||||||||||
Cost | Value | |||||||||||||||||||||||||||||
Taxable municipal securities: | ||||||||||||||||||||||||||||||
Due after ten years | 10,141 | 10,513 | ||||||||||||||||||||||||||||
Total taxable municipal securities | 10,141 | 10,513 | ||||||||||||||||||||||||||||
Mortgage-backed securities - GNMA/FNMA: | ||||||||||||||||||||||||||||||
Due after five years through ten years | 2,934 | 2,976 | ||||||||||||||||||||||||||||
Due after ten years | 3,599 | 3,656 | ||||||||||||||||||||||||||||
Total mortgage-backed securities - GNMA/FNMA | 6,533 | 6,632 | ||||||||||||||||||||||||||||
Other securities: | ||||||||||||||||||||||||||||||
Equity securities | 53 | 89 | ||||||||||||||||||||||||||||
Total other securities | 53 | 89 | ||||||||||||||||||||||||||||
Total available-for-sale securities | $ | 16,727 | $ | 17,234 | ||||||||||||||||||||||||||
Securities Held-to-Maturity: | ||||||||||||||||||||||||||||||
Taxable municipal securities: | ||||||||||||||||||||||||||||||
Due after one year through five years | 985 | 979 | ||||||||||||||||||||||||||||
Due after five years through ten years | 2,624 | 2,582 | ||||||||||||||||||||||||||||
Total taxable municipal securities | 3,609 | 3,561 | ||||||||||||||||||||||||||||
Mortgage-backed securities - GNMA/FNMA: | ||||||||||||||||||||||||||||||
Due after one year through five years | 49,551 | 49,935 | ||||||||||||||||||||||||||||
Due after five years through ten years | 24,589 | 24,593 | ||||||||||||||||||||||||||||
Due after ten years | 12,523 | 12,427 | ||||||||||||||||||||||||||||
Total mortgage-backed securities - GNMA/FNMA | 86,663 | 86,955 | ||||||||||||||||||||||||||||
Total held-to-maturity securities | $ | 90,272 | $ | 90,516 | ||||||||||||||||||||||||||
LOANS_AND_ALLOWANCE_FOR_LOAN_L1
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 6 Months Ended | |||||||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||||||
Loans and Leases Receivable Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||
Summary of Loans Outstanding | ' | |||||||||||||||||||||||||||||||
The classification of loans as of June 30, 2014 and December 31, 2013 are summarized as follows (amounts in thousands): | ||||||||||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||
Commercial and industrial | $ | 24,826 | $ | 25,858 | ||||||||||||||||||||||||||||
Commercial construction and land development | 59,705 | 66,253 | ||||||||||||||||||||||||||||||
Commercial real estate | 204,625 | 214,159 | ||||||||||||||||||||||||||||||
Residential construction | 30,471 | 28,697 | ||||||||||||||||||||||||||||||
Residential mortgage | 146,877 | 147,300 | ||||||||||||||||||||||||||||||
Consumer | 6,754 | 6,750 | ||||||||||||||||||||||||||||||
Consumer credit cards | 2,164 | 2,339 | ||||||||||||||||||||||||||||||
Business credit cards | 1,140 | 1,124 | ||||||||||||||||||||||||||||||
Other | 653 | 738 | ||||||||||||||||||||||||||||||
Gross loans | 477,215 | 493,218 | ||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||
Net deferred loan fees | (533 | ) | (506 | ) | ||||||||||||||||||||||||||||
Net loans before allowance | 476,682 | 492,712 | ||||||||||||||||||||||||||||||
Allowance for loan losses | (10,946 | ) | (11,590 | ) | ||||||||||||||||||||||||||||
Total net loans | $ | 465,736 | $ | 481,122 | ||||||||||||||||||||||||||||
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 and six months ended June 30, 2014 and 2013 and as of and for the twelve months ended December 31, 2013 (amounts in thousands). | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Allowances for loan losses: | Commercial | Commercial | Commercial | Residential | Residential | Consumer | Other | Totals | ||||||||||||||||||||||||
and | Construction | Real | Construction | Mortgage | ||||||||||||||||||||||||||||
Industrial | and Land | Estate | ||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||
Balance March 31, 2014 | $ | 407 | $ | 5,482 | $ | 2,847 | $ | 701 | $ | 1,900 | $ | 170 | $ | 9 | $ | 11,516 | ||||||||||||||||
Provision for loan losses | (92 | ) | 107 | (326 | ) | 90 | 171 | 44 | 6 | — | ||||||||||||||||||||||
Loans charged-off | (1 | ) | (164 | ) | (283 | ) | (171 | ) | (173 | ) | (47 | ) | — | (839 | ) | |||||||||||||||||
Recoveries | 75 | 142 | 3 | — | 47 | 2 | — | 269 | ||||||||||||||||||||||||
Net recoveries (charge-offs) | 74 | (22 | ) | (280 | ) | (171 | ) | (126 | ) | (45 | ) | — | (570 | ) | ||||||||||||||||||
Balance June 30, 2014 | $ | 389 | $ | 5,567 | $ | 2,241 | $ | 620 | $ | 1,945 | $ | 169 | $ | 15 | $ | 10,946 | ||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Allowances for loan losses: | Commercial | Commercial | Commercial | Residential | Residential | Consumer | Other | Totals | ||||||||||||||||||||||||
and | Construction | Real | Construction | Mortgage | ||||||||||||||||||||||||||||
Industrial | and Land | Estate | ||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||
Balance December 31, 2013 | $ | 487 | $ | 5,037 | $ | 2,981 | $ | 713 | $ | 2,146 | $ | 188 | $ | 38 | $ | 11,590 | ||||||||||||||||
Provision for loan losses | (188 | ) | 663 | (412 | ) | 78 | (150 | ) | 53 | (44 | ) | — | ||||||||||||||||||||
Loans charged-off | (24 | ) | (317 | ) | (490 | ) | (171 | ) | (240 | ) | (89 | ) | — | (1,331 | ) | |||||||||||||||||
Recoveries | 114 | 184 | 162 | — | 189 | 17 | 21 | 687 | ||||||||||||||||||||||||
Net recoveries (charge-offs) | 90 | (133 | ) | (328 | ) | (171 | ) | (51 | ) | (72 | ) | 21 | (644 | ) | ||||||||||||||||||
Balance June 30, 2014 | $ | 389 | $ | 5,567 | $ | 2,241 | $ | 620 | $ | 1,945 | $ | 169 | $ | 15 | $ | 10,946 | ||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 116 | $ | 1,078 | $ | 353 | $ | — | $ | 580 | $ | — | $ | — | $ | 2,127 | ||||||||||||||||
Ending balance: collectively evaluated for impairment (1) | 273 | 4,489 | 1,888 | 620 | 1,365 | 169 | 15 | 8,819 | ||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||
Ending balance | $ | 25,966 | $ | 59,705 | $ | 204,625 | $ | 30,471 | $ | 146,877 | $ | 8,918 | $ | 653 | $ | 477,215 | ||||||||||||||||
Less ending balance: individually evaluated for impairment | $ | 633 | $ | 10,924 | $ | 10,795 | $ | 524 | $ | 9,029 | $ | 533 | $ | — | $ | 32,438 | ||||||||||||||||
Ending balance: collectively | $ | 25,333 | $ | 48,781 | $ | 193,830 | $ | 29,947 | $ | 137,848 | $ | 8,385 | $ | 653 | $ | 444,777 | ||||||||||||||||
evaluated for impairment (1) | ||||||||||||||||||||||||||||||||
(1) Includes $1.5 million in small dollar homogeneous loans collectively evaluated for impairment with $142,000 in reserves established. | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
June 30, 2013 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Allowances for loan losses: | Commercial | Commercial | Commercial | Residential | Residential | Consumer | Other | Totals | ||||||||||||||||||||||||
and | Construction | Real | Construction | Mortgage | ||||||||||||||||||||||||||||
Industrial | and Land | Estate | ||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||
Balance March 31, 2013 | $ | 1,178 | $ | 7,619 | $ | 2,472 | $ | 462 | $ | 3,282 | $ | 173 | $ | 61 | $ | 15,247 | ||||||||||||||||
Provision for loan losses | (395 | ) | 62 | 271 | 125 | (133 | ) | 39 | 31 | — | ||||||||||||||||||||||
Loans charged-off | (42 | ) | (1,198 | ) | (987 | ) | (138 | ) | (294 | ) | (73 | ) | — | (2,732 | ) | |||||||||||||||||
Recoveries | 228 | 91 | 1,007 | — | 158 | 39 | — | 1,523 | ||||||||||||||||||||||||
Net recoveries (charge-offs) | 186 | (1,107 | ) | 20 | (138 | ) | (136 | ) | (34 | ) | — | (1,209 | ) | |||||||||||||||||||
Balance June 30, 2013 | $ | 969 | $ | 6,574 | $ | 2,763 | $ | 449 | $ | 3,013 | $ | 178 | $ | 92 | $ | 14,038 | ||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||||||||||
30-Jun-13 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Allowances for loan losses: | Commercial | Commercial | Commercial | Residential | Residential | Consumer | Other | Totals | ||||||||||||||||||||||||
and | Construction | Real | Construction | Mortgage | ||||||||||||||||||||||||||||
Industrial | and Land | Estate | ||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||
Balance December 31, 2013 | $ | 1,185 | $ | 7,251 | $ | 2,961 | $ | 423 | $ | 4,471 | $ | 188 | $ | 70 | $ | 16,549 | ||||||||||||||||
Provision for loan losses | (407 | ) | 1,003 | 19 | 164 | (835 | ) | 69 | 22 | 35 | ||||||||||||||||||||||
Loans charged-off | (60 | ) | (1,858 | ) | (1,225 | ) | (138 | ) | (904 | ) | (164 | ) | — | (4,349 | ) | |||||||||||||||||
Recoveries | 251 | 178 | 1,008 | — | 281 | 85 | — | 1,803 | ||||||||||||||||||||||||
Net recoveries (charge-offs) | 191 | (1,680 | ) | (217 | ) | (138 | ) | (623 | ) | (79 | ) | — | (2,546 | ) | ||||||||||||||||||
Balance June 30, 2013 | $ | 969 | $ | 6,574 | $ | 2,763 | $ | 449 | $ | 3,013 | $ | 178 | $ | 92 | $ | 14,038 | ||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 338 | $ | 348 | $ | 509 | $ | — | $ | 253 | $ | — | $ | — | $ | 1,448 | ||||||||||||||||
Ending balance: collectively | 631 | 6,226 | 2,254 | 449 | 2,760 | 178 | 92 | 12,590 | ||||||||||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||
Ending balance | $ | 27,701 | $ | 79,362 | $ | 186,324 | $ | 24,263 | $ | 161,806 | $ | 9,207 | $ | 907 | $ | 489,570 | ||||||||||||||||
Less ending balance: individually evaluated for impairment | $ | 1,246 | $ | 16,108 | $ | 15,392 | $ | 695 | $ | 14,991 | $ | 22 | $ | — | $ | 48,454 | ||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 26,455 | $ | 63,254 | $ | 170,932 | $ | 23,568 | $ | 146,815 | $ | 9,185 | $ | 907 | $ | 441,116 | ||||||||||||||||
Twelve Months Ended | ||||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Allowances for loan losses: | Commercial | Commercial | Commercial | Residential | Residential | Consumer | Other | Totals | ||||||||||||||||||||||||
and | Construction | Real | Construction | Mortgage | ||||||||||||||||||||||||||||
Industrial | and Land | Estate | ||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||
Balance December 31, 2012 | $ | 1,185 | $ | 7,251 | $ | 2,961 | $ | 423 | $ | 4,471 | $ | 188 | $ | 70 | $ | 16,549 | ||||||||||||||||
Provision for loan losses | (801 | ) | 958 | 701 | 428 | (1,332 | ) | 117 | (36 | ) | 35 | |||||||||||||||||||||
Loans charged-off | (411 | ) | (3,759 | ) | (2,226 | ) | (138 | ) | (1,553 | ) | (271 | ) | — | (8,358 | ) | |||||||||||||||||
Recoveries | 514 | 587 | 1,545 | — | 560 | 154 | 4 | 3,364 | ||||||||||||||||||||||||
Net recoveries (charge-offs) | 103 | (3,172 | ) | (681 | ) | (138 | ) | (993 | ) | (117 | ) | 4 | (4,994 | ) | ||||||||||||||||||
Balance December 31, 2013 | $ | 487 | $ | 5,037 | $ | 2,981 | $ | 713 | $ | 2,146 | $ | 188 | $ | 38 | $ | 11,590 | ||||||||||||||||
Ending balance: individually | $ | 80 | $ | 264 | $ | 887 | $ | 137 | $ | 457 | $ | — | $ | — | $ | 1,825 | ||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Ending balance: collectively | 407 | 4,773 | 2,094 | 576 | 1,689 | 188 | 38 | 9,765 | ||||||||||||||||||||||||
evaluated for impairment (1) | ||||||||||||||||||||||||||||||||
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) | ||||||||||||||||||||||||||||||||
(1) In mid-2013, the Company began evaluating small dollar homogeneous loans collectively for impairment. These loans and their related allowance for loan losses are included in these totals. At December 31, 2013, there were $1.7 million in impaired loans collectively evaluated for impairment with $226,000 in reserves established. | ||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
June 30, 2014 and December 31, 2013 (amounts in thousands). | ||||||||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Residential | Consumer | Other | Totals | |||||||||||||||||||||||||
and | Construction | Real | Construction | Mortgage | ||||||||||||||||||||||||||||
Industrial | and Land | Estate | ||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||
1 - Lowest Risk | $ | 2,110 | $ | — | $ | — | $ | — | $ | — | $ | 1,608 | $ | 8 | $ | 3,726 | ||||||||||||||||
2 - Satisfactory Quality | 655 | 587 | 2,467 | 397 | 14,425 | 376 | 13 | 18,920 | ||||||||||||||||||||||||
3 - Satisfactory-Merits Attention | 9,485 | 10,654 | 76,742 | 3,282 | 53,952 | 3,728 | 343 | 158,186 | ||||||||||||||||||||||||
4 - Low Satisfactory | 11,486 | 35,316 | 112,158 | 26,268 | 57,577 | 955 | 166 | 243,926 | ||||||||||||||||||||||||
5 - Special mention | 228 | 2,859 | 4,455 | — | 8,494 | 53 | 123 | 16,212 | ||||||||||||||||||||||||
6-8 - Substandard | 862 | 10,289 | 8,803 | 524 | 12,429 | 34 | — | 32,941 | ||||||||||||||||||||||||
$ | 24,826 | $ | 59,705 | $ | 204,625 | $ | 30,471 | $ | 146,877 | $ | 6,754 | $ | 653 | $ | 473,911 | |||||||||||||||||
Consumer - | Business- | |||||||||||||||||||||||||||||||
Credit Card | Credit Card | |||||||||||||||||||||||||||||||
Performing | $ | 2,155 | $ | 1,133 | ||||||||||||||||||||||||||||
Non Performing | 9 | 7 | ||||||||||||||||||||||||||||||
Total | $ | 2,164 | $ | 1,140 | ||||||||||||||||||||||||||||
Total Loans | $ | 477,215 | ||||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Residential | Consumer | Other | Totals | |||||||||||||||||||||||||
and | Construction | Real | Construction | Mortgage | ||||||||||||||||||||||||||||
Industrial | and Land | Estate | ||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||
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 | |||||||||||||||||
Consumer- | Business- | |||||||||||||||||||||||||||||||
Credit Card | Credit Card | |||||||||||||||||||||||||||||||
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, including those on nonaccrual. by loan class, as of June 30, 2014 and December 31, 2013 (amounts in thousands). | ||||||||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||||||||
30-89 Days | Nonaccrual | Greater than 90 Days Past Due | Total Past | Current | Total | |||||||||||||||||||||||||||
Past Due | Due | Loans | ||||||||||||||||||||||||||||||
Commercial & industrial | $ | 32 | $ | 625 | $ | — | $ | 657 | $ | 24,169 | $ | 24,826 | ||||||||||||||||||||
Commercial construction and land development | 54 | 9,537 | — | 9,591 | 50,114 | 59,705 | ||||||||||||||||||||||||||
Commercial real estate | 246 | 3,949 | — | 4,195 | 200,430 | 204,625 | ||||||||||||||||||||||||||
Residential construction | — | 525 | — | 525 | 29,946 | 30,471 | ||||||||||||||||||||||||||
Residential mortgage | 796 | 8,756 | — | 9,552 | 136,792 | 146,344 | ||||||||||||||||||||||||||
Consumer | 55 | 6 | — | 61 | 7,226 | 7,287 | ||||||||||||||||||||||||||
Consumer credit cards | 70 | — | 9 | 79 | 2,085 | 2,164 | ||||||||||||||||||||||||||
Business credit cards | 63 | — | 7 | 70 | 1,070 | 1,140 | ||||||||||||||||||||||||||
Other loans | — | — | — | — | 653 | 653 | ||||||||||||||||||||||||||
Total | $ | 1,316 | $ | 23,398 | $ | 16 | $ | 24,730 | $ | 452,485 | $ | 477,215 | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
30-89 Days | Nonaccrual | Greater than 90 Days Past Due | Total Past | Current | Total | |||||||||||||||||||||||||||
Past Due | Due | Loans | ||||||||||||||||||||||||||||||
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 | $ | 27,227 | $ | 23 | $ | 28,845 | $ | 464,373 | $ | 493,218 | ||||||||||||||||||||
Summary of Nonperforming Assets | ' | |||||||||||||||||||||||||||||||
Total nonperforming assets at June 30, 2014 and December 31, 2013 consist of the following (amounts in thousands): | ||||||||||||||||||||||||||||||||
June 30, 2014 | 31-Dec-13 | |||||||||||||||||||||||||||||||
Loans past due ninety days or more and still accruing | $ | 16 | $ | 23 | ||||||||||||||||||||||||||||
Nonaccrual loans | 23,398 | 27,227 | ||||||||||||||||||||||||||||||
Foreclosed assets | 6,048 | 8,502 | ||||||||||||||||||||||||||||||
Total nonperforming assets | $ | 29,462 | $ | 35,752 | ||||||||||||||||||||||||||||
Summary of Impaired Loans | ' | |||||||||||||||||||||||||||||||
The following tables illustrate the impaired loans by loan class as of June 30, 2014 and December 31, 2013 (amounts in thousands). | ||||||||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||||||||
Year to Date | ||||||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | ||||||||||||||||||||||||||||
Balance | Investment | Recognized | ||||||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 364 | $ | 377 | $ | — | $ | 367 | $ | 1 | ||||||||||||||||||||||
Commercial construction and land development | 7,153 | 11,465 | — | 7,434 | 11 | |||||||||||||||||||||||||||
Commercial real estate | 8,285 | 9,965 | — | 8,581 | 101 | |||||||||||||||||||||||||||
Residential construction | 524 | 1,134 | — | 667 | — | |||||||||||||||||||||||||||
Residential mortgage | 7,896 | 9,655 | — | 8,099 | 52 | |||||||||||||||||||||||||||
Consumer | 6 | 7 | — | 8 | — | |||||||||||||||||||||||||||
Subtotal: | 24,228 | 32,603 | — | 25,156 | 165 | |||||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 297 | $ | 320 | $ | 116 | $ | 301 | $ | — | ||||||||||||||||||||||
Commercial construction and land development | 3,892 | 4,604 | 1,078 | 3,983 | 9 | |||||||||||||||||||||||||||
Commercial real estate | 2,686 | 2,846 | 353 | 2,702 | 54 | |||||||||||||||||||||||||||
Residential mortgage | 2,821 | 3,095 | 580 | 2,836 | 10 | |||||||||||||||||||||||||||
Subtotal: | 9,696 | 10,865 | 2,127 | 9,822 | 73 | |||||||||||||||||||||||||||
Totals: | ||||||||||||||||||||||||||||||||
Commercial | 22,677 | 29,577 | 1,547 | 23,368 | 176 | |||||||||||||||||||||||||||
Consumer | 6 | 7 | — | 8 | — | |||||||||||||||||||||||||||
Residential | 11,241 | 13,884 | 580 | 11,602 | 62 | |||||||||||||||||||||||||||
Grand Total | $ | 33,924 | $ | 43,468 | $ | 2,127 | $ | 34,978 | $ | 238 | ||||||||||||||||||||||
At June 30, 2014, the recorded investment in loans considered impaired totaled $33.9 million. Of the total investment in loans considered impaired, $9.7 million were found to show specific impairment for which a $2.1 million valuation allowance was recorded; the remaining $24.2 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 June 30, 2014, the average recorded investment in impaired loans was approximately $35.0 million. The amount of interest recognized on impaired loans during the portion of the year that they were considered impaired was approximately $238,000. | ||||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Year to Date | ||||||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | ||||||||||||||||||||||||||||
Balance | Investment | Recognized | ||||||||||||||||||||||||||||||
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 | 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 | — | |||||||||||||||||||||||||||
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 | 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 | |||||||||||||||||||||||||||
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 Modified as Troubled Debt Restructurings | ' | |||||||||||||||||||||||||||||||
The following table provides a summary of loans modified as TDRs at June 30, 2014 and December 31, 2013 (amounts in thousands). | ||||||||||||||||||||||||||||||||
June 30, 2014: | Accrual | Nonaccrual | Total TDRs | Allowance for Loan Losses Allocated | ||||||||||||||||||||||||||||
Commercial & industrial | $ | 37 | $ | 299 | $ | 336 | $ | — | ||||||||||||||||||||||||
Commercial construction and land development | 1,509 | 4,107 | 5,616 | 247 | ||||||||||||||||||||||||||||
Commercial real estate | 5,448 | 2,217 | 7,665 | 180 | ||||||||||||||||||||||||||||
Residential mortgage | 1,961 | 2,385 | 4,346 | 230 | ||||||||||||||||||||||||||||
Total modifications | $ | 8,955 | $ | 9,008 | $ | 17,963 | $ | 657 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Schedule of Troubled Debt Restructurings by Loan Class | ' | |||||||||||||||||||||||||||||||
The following table presents a breakdown of new TDRs by loan class and the type of concession made to the borrower for the three and six months ended June 30, 2014. | ||||||||||||||||||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||||||||||||
June 30, 2014 | June 30, 2014 | |||||||||||||||||||||||||||||||
Number of loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Number of loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | |||||||||||||||||||||||||||
Forgiveness of principal: | ||||||||||||||||||||||||||||||||
Commercial construction and land development | 2 | $ | 100 | $ | 42 | 2 | $ | 100 | $ | 42 | ||||||||||||||||||||||
Subtotal | 2 | $ | 100 | $ | 42 | 2 | $ | 100 | $ | 42 | ||||||||||||||||||||||
Total | 2 | $ | 100 | $ | 42 | 2 | $ | 100 | $ | 42 | ||||||||||||||||||||||
Summary of Successes and Failures of Troubled Debt Restructurings | ' | |||||||||||||||||||||||||||||||
The table below details TDRs that the Company has entered into during the 12 months ended June 30, 2014 (amounts in thousands, except number of loans). The three TDRs executed during the previous 12 months have been converted to or remain on nonaccrual status. | ||||||||||||||||||||||||||||||||
For the 12 month period ended June 30, 2014 | ||||||||||||||||||||||||||||||||
Paid in full | Paying as restructured | Converted to nonaccrual | Foreclosure/Default | |||||||||||||||||||||||||||||
Number of loans | Recorded Investment | Number of loans | Recorded Investment | Number of loans | Recorded Investment | Number of loans | Recorded Investment | |||||||||||||||||||||||||
Extended payment terms | — | — | — | — | 1 | 55 | — | — | ||||||||||||||||||||||||
Forgiveness of principal | — | — | — | — | 2 | 42 | — | — | ||||||||||||||||||||||||
Total | — | $ | — | — | $ | — | 3 | $ | 97 | — | $ | — | ||||||||||||||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended | |||
Jun. 30, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Schedule of Loan Commitments | ' | |||
The following table presents loan commitments at June 30, 2014 (amounts in thousands). | ||||
June 30, 2014 | ||||
Commitments to extend credit | $ | 4,632 | ||
Undisbursed lines of credit | 74,745 | |||
Financial stand-by letters of credit | 238 | |||
Performance stand-by letters of credit | 750 | |||
Legally binding commitments | 80,365 | |||
Unused credit card lines | 14,568 | |||
Total | $ | 94,933 | ||
Schedule of Pledged Assets by Asset Type, at Fair Value | ' | |||
The following table provides the total market value of pledged assets by asset type at June 30, 2014 (amounts in thousands). | ||||
30-Jun-14 | ||||
Cash | $ | 24,000 | ||
Securities | 106,933 | |||
Loans | 49,470 | |||
FAIR_VALUE_MEASUREMENT_Tables
FAIR VALUE MEASUREMENT (Tables) | 6 Months Ended | |||||||||||||||||||
Jun. 30, 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 June 30, 2014 and December 31, 2013 (amounts in thousands). | ||||||||||||||||||||
Fair Value Measurements at | ||||||||||||||||||||
June 30, 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 | ||||||||||||||||||||
Available-for-Sale Securities: | 6/30/14 | 6/30/14 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Taxable municipal securities | $ | 10,513 | $ | 10,513 | $ | — | $ | 10,513 | $ | — | ||||||||||
Mortgage-backed securities - GNMA | 6,632 | 6,632 | — | 6,632 | — | |||||||||||||||
Equity securities | 89 | 89 | 78 | 11 | — | |||||||||||||||
Total available-for-sale securities | $ | 17,234 | $ | 17,234 | $ | 78 | $ | 17,156 | $ | — | ||||||||||
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 | ||||||||||||||||||||
Available-for-Sale Securities: | 12/31/13 | 12/31/13 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Taxable municipal securities | $ | 5,933 | $ | 5,933 | $ | — | $ | 5,933 | $ | — | ||||||||||
Mortgage-backed securities - GNMA | 25,477 | 25,477 | — | 25,477 | — | |||||||||||||||
Trust preferred securities | 1,025 | 1,025 | — | — | 1,025 | |||||||||||||||
Equity securities | 131 | 131 | 70 | 61 | — | |||||||||||||||
Total available-for-sale securities | $ | 32,566 | $ | 32,566 | $ | 70 | $ | 31,471 | $ | 1,025 | ||||||||||
Level 3 Assets Measured at Fair Value on a Recurring Basis | ' | |||||||||||||||||||
The following table presents the reconciliation for the three and six months ended June 30, 2014 and 2013 for all Level 3 assets that are measured at fair value on a recurring basis (amounts in thousands). | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||
Securities Available-for-Sale: | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Beginning Balance | $ | 410 | $ | 1,019 | $ | 1,025 | $ | 1,019 | ||||||||||||
Total realized and unrealized gains or (losses): | ||||||||||||||||||||
Included in earnings | 90 | — | 90 | — | ||||||||||||||||
Purchases, issuances and settlements | (500 | ) | — | (1,115 | ) | — | ||||||||||||||
Ending Balance | $ | — | $ | 1,019 | $ | — | $ | 1,019 | ||||||||||||
Impaired Loans and Foreclosed Assets Measured at Fair Value on a Nonrecurring Basis | ' | |||||||||||||||||||
The following table presents information about certain assets measured on a non-recurring basis at fair value at June 30, 2014 and December 31, 2013 (amounts in thousands). | ||||||||||||||||||||
Fair Value Measurements at | ||||||||||||||||||||
June 30, 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 | ||||||||||||||||||||
6/30/14 | 6/30/14 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||
Loans held for sale | $ | 581 | $ | 581 | $ | — | $ | 581 | $ | — | ||||||||||
Impaired loans | 17,302 | 17,302 | — | — | 17,302 | |||||||||||||||
Foreclosed assets | 6,048 | 6,048 | — | — | 6,048 | |||||||||||||||
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) | ||||||||||||||||
Impaired loans | $ | 18,215 | $ | 18,215 | $ | — | $ | — | $ | 18,215 | ||||||||||
Foreclosed assets | 8,502 | 8,502 | — | — | 8,502 | |||||||||||||||
Fair Value Inputs, Assets, Quantitative Information | ' | |||||||||||||||||||
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 June 30, 2014 (amounts in thousands, except percentages): | ||||||||||||||||||||
Total Carrying Amount at June 30, 2014 | Valuation Methodology | Range of Inputs | ||||||||||||||||||
Recurring measurements: | ||||||||||||||||||||
Trust preferred securities | $ | — | Probability of default | 10 - 20% | ||||||||||||||||
Loss given default | 100% | |||||||||||||||||||
Nonrecurring measurements: | ||||||||||||||||||||
Impaired loans | $ | 17,302 | Collateral discounts | 9 - 50% | ||||||||||||||||
Foreclosed assets | $ | 6,048 | Discounted appraisals | 10 - 30% | ||||||||||||||||
Fair Value Inputs, Range of Collateral Discounts for Impaired Loans by Segment | ' | |||||||||||||||||||
The following table reflects the general range of collateral discounts for impaired loans by segment: | ||||||||||||||||||||
Loan Segment: | Range of Percentages | |||||||||||||||||||
Commercial construction and land development | 10.5% - 40% | |||||||||||||||||||
Commercial real estate other | 12.5% - 50% | |||||||||||||||||||
Residential construction | 9% - 30% | |||||||||||||||||||
Residential mortgage | 9% - 20% | |||||||||||||||||||
All other segments | 9% - 20% | |||||||||||||||||||
Information for Financial Assets and Liabilities | ' | |||||||||||||||||||
The following table presents information for financial assets and liabilities as of June 30, 2014 and December 31, 2013 (amounts in thousands). | ||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||
Carrying | Estimated | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Value | Fair Value | |||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 186,694 | $ | 186,694 | $ | 186,694 | $ | — | $ | — | ||||||||||
CDs held for investment | 26,460 | 26,460 | — | 26,460 | — | |||||||||||||||
Securities available-for-sale | 17,234 | 17,234 | 78 | 17,156 | — | |||||||||||||||
Securities held-to-maturity | 90,272 | 90,516 | — | 90,516 | — | |||||||||||||||
Loans held for sale | 581 | 581 | — | 581 | — | |||||||||||||||
Loans, net | 465,736 | 444,032 | — | — | 444,032 | |||||||||||||||
FHLB stock | 5,778 | 5,778 | — | 5,778 | — | |||||||||||||||
Accrued interest receivable | 1,550 | 1,550 | — | 1,550 | — | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | $ | 664,558 | $ | 666,311 | $ | — | $ | 666,311 | $ | — | ||||||||||
Subordinated debentures and subordinated promissory notes | 24,372 | 24,374 | — | — | 24,374 | |||||||||||||||
Borrowings | 112,000 | 120,948 | — | 120,948 | — | |||||||||||||||
Accrued interest payable | 1,730 | 1,730 | — | 1,730 | — | |||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Carrying | Estimated | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Value | Fair Value | |||||||||||||||||||
Financial assets: | ||||||||||||||||||||
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 | 70 | 31,471 | 1,025 | |||||||||||||||
Securities held-to-maturity | 98,013 | 95,831 | — | 95,831 | — | |||||||||||||||
Loans, net | 481,122 | 458,254 | — | — | 458,254 | |||||||||||||||
FHLB stock | 6,076 | 6,076 | — | 6,076 | — | |||||||||||||||
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) | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 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 (amounts in thousands, except ratios). At June 30, 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 June 30, 2014: | |||||||||||||||||||||
Total Capital (to Risk Weighted Assets) | $ | 54,852 | 12.1 | % | $ | 36,381 | 8 | % | $ | 45,477 | 10 | % | |||||||||
Tier I Capital (to Risk Weighted Assets) | 49,102 | 10.8 | % | 18,191 | 4 | % | 27,286 | 6 | % | ||||||||||||
Tier I Capital (to Average Assets) | 49,102 | 5.9 | % | 33,017 | 4 | % | 41,271 | 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 | % | ||||||||||||
NET_INCOME_LOSS_PER_SHARE_Deta
NET INCOME (LOSS) PER SHARE (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net income (loss) available to common shareholders | $2,419 | ($105) | $3,776 | ($28) |
Weighted average number of common shares outstanding: | ' | ' | ' | ' |
Weighted average number of common shares - basic | 8,870,439 | 7,924,563 | 8,456,016 | 7,873,330 |
Effect of dilutive stock options (in shares) | 26,302 | 0 | 19,523 | 0 |
Weighted average number of common shares - dilutive | 8,896,741 | 7,924,563 | 8,475,539 | 7,873,330 |
Basic net income per common share (in usd per share) | $0.27 | ($0.01) | $0.45 | $0 |
Diluted net income per common share (in usd per share) | $0.27 | ($0.01) | $0.45 | $0 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive securities (in shares) | ' | ' | 181,232 | 305,005 |
Stock Options [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive securities (in shares) | 181,232 | 305,005 | ' | ' |
INVESTMENT_SECURITIES_Securiti
INVESTMENT SECURITIES (Securities Available for Sale) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | securities | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Amortized cost | $16,727 | $33,222 | |
Gross unrealized gains | 507 | 33 | |
Gross unrealized losses | 0 | 689 | |
Available for sale securities | 17,234 | 32,566 | [1] |
Securities available for sale in continuous unrealized loss position: | ' | ' | |
Number of securities in a loss position | 0 | ' | |
Temporarily Impaired Securities [Member] | ' | ' | |
Securities available for sale in continuous unrealized loss position: | ' | ' | |
Less Than 12 Months, No. of Securities | ' | 14,000 | |
Less than 12 Months, Fair value | ' | 31,410 | |
Less than 12 Months, Unrealized losses | ' | 539 | |
12 Months or More, No. of Securities | ' | 2,000 | |
12 Months or More, Fair value | ' | 1,025 | |
12 Months or More, Unrealized losses | ' | 150 | |
Total, Fair value | ' | 32,435 | |
Total, Unrealized losses | ' | 689 | |
Taxable Municipal Securities [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Amortized cost | 10,141 | 6,176 | |
Gross unrealized gains | 372 | 0 | |
Gross unrealized losses | 0 | 243 | |
Available for sale securities | 10,513 | 5,933 | |
Taxable Municipal Securities [Member] | Temporarily Impaired Securities [Member] | ' | ' | |
Securities available for sale in continuous unrealized loss position: | ' | ' | |
Less Than 12 Months, No. of Securities | ' | 6,000 | |
Less than 12 Months, Fair value | ' | 5,933 | |
Less than 12 Months, Unrealized losses | ' | 243 | |
12 Months or More, No. of Securities | ' | 0 | |
12 Months or More, Fair value | ' | 0 | |
12 Months or More, Unrealized losses | ' | 0 | |
Total, Fair value | ' | 5,933 | |
Total, Unrealized losses | ' | 243 | |
Mortgage-backed Securities GNMA [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Amortized cost | 6,533 | 25,773 | |
Gross unrealized gains | 99 | 0 | |
Gross unrealized losses | 0 | 296 | |
Available for sale securities | 6,632 | 25,477 | |
Mortgage-backed Securities GNMA [Member] | Temporarily Impaired Securities [Member] | ' | ' | |
Securities available for sale in continuous unrealized loss position: | ' | ' | |
Less Than 12 Months, No. of Securities | ' | 8,000 | |
Less than 12 Months, Fair value | ' | 25,477 | |
Less than 12 Months, Unrealized losses | ' | 296 | |
12 Months or More, No. of Securities | ' | 0 | |
12 Months or More, Fair value | ' | 0 | |
12 Months or More, Unrealized losses | ' | 0 | |
Total, Fair value | ' | 25,477 | |
Total, Unrealized losses | ' | 296 | |
Trust Preferred Securities [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Amortized cost | ' | 1,175 | |
Gross unrealized gains | ' | 0 | |
Gross unrealized losses | ' | 150 | |
Available for sale securities | ' | 1,025 | |
Trust Preferred Securities [Member] | Temporarily Impaired Securities [Member] | ' | ' | |
Securities available for sale in continuous unrealized loss position: | ' | ' | |
Less Than 12 Months, No. of Securities | ' | 0 | |
Less than 12 Months, Fair value | ' | 0 | |
Less than 12 Months, Unrealized losses | ' | 0 | |
12 Months or More, No. of Securities | ' | 2,000 | |
12 Months or More, Fair value | ' | 1,025 | |
12 Months or More, Unrealized losses | ' | 150 | |
Total, Fair value | ' | 1,025 | |
Total, Unrealized losses | ' | 150 | |
Equity Securities [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Amortized cost | 53 | 98 | |
Gross unrealized gains | 36 | 33 | |
Gross unrealized losses | 0 | 0 | |
Available for sale securities | $89 | $131 | |
[1] | Derived from audited consolidated financial statements. |
INVESTMENT_SECURITIES_Securiti1
INVESTMENT SECURITIES (Securities Held to Maturity) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Schedule of Held-to-maturity Securities [Line Items] | ' | ' | |
Amortized cost | $90,272 | $98,013 | [1] |
Gross unrealized gains | 741 | 165 | |
Gross unrealized losses | 497 | 2,347 | |
Held to maturity securities, fair value | 90,516 | 95,831 | |
Temporarily Impaired Securities [Member] | ' | ' | |
Securities held to maturity in continuous unrealized loss position: | ' | ' | |
Less than 12 Months, No. of Securities | 3,000 | 50,000 | |
Less than 12 Months, Fair value | 7,013 | 82,073 | |
Less than 12 Months, Unrealized losses | 36 | 2,249 | |
12 Months or More, No. of Securities | 27,000 | 1,000 | |
12 Months or Morer, Fair value | 39,189 | 2,223 | |
12 Months or More, Unrealized losses | 461 | 98 | |
Total, Fair value | 46,202 | 84,296 | |
Total, Unrealized losses | 497 | 2,347 | |
Taxable Municipal Securities [Member] | ' | ' | |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' | |
Amortized cost | 3,609 | 3,635 | |
Gross unrealized gains | 0 | 3 | |
Gross unrealized losses | 48 | 157 | |
Held to maturity securities, fair value | 3,561 | 3,481 | |
Taxable Municipal Securities [Member] | Temporarily Impaired Securities [Member] | ' | ' | |
Securities held to maturity in continuous unrealized loss position: | ' | ' | |
Less than 12 Months, No. of Securities | 0 | 8,000 | |
Less than 12 Months, Fair value | 0 | 2,776 | |
Less than 12 Months, Unrealized losses | 0 | 157 | |
12 Months or More, No. of Securities | 9,000 | 0 | |
12 Months or Morer, Fair value | 3,399 | 0 | |
12 Months or More, Unrealized losses | 48 | 0 | |
Total, Fair value | 3,399 | 2,776 | |
Total, Unrealized losses | 48 | 157 | |
Mortgage-backed Securities GNMA [Member] | ' | ' | |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' | |
Amortized cost | 82,666 | 89,892 | |
Gross unrealized gains | 705 | 162 | |
Gross unrealized losses | 449 | 2,171 | |
Held to maturity securities, fair value | 82,922 | 87,883 | |
Mortgage-backed Securities GNMA [Member] | Temporarily Impaired Securities [Member] | ' | ' | |
Securities held to maturity in continuous unrealized loss position: | ' | ' | |
Less than 12 Months, No. of Securities | 3,000 | 39,000 | |
Less than 12 Months, Fair value | 7,013 | 74,830 | |
Less than 12 Months, Unrealized losses | 36 | 2,073 | |
12 Months or More, No. of Securities | 18,000 | 1,000 | |
12 Months or Morer, Fair value | 35,790 | 2,223 | |
12 Months or More, Unrealized losses | 413 | 98 | |
Total, Fair value | 42,803 | 77,053 | |
Total, Unrealized losses | 449 | 2,171 | |
Mortgage-backed securities FNMA [Member] | ' | ' | |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' | |
Amortized cost | 3,997 | 4,486 | |
Gross unrealized gains | 36 | 0 | |
Gross unrealized losses | 0 | 19 | |
Held to maturity securities, fair value | 4,033 | 4,467 | |
Mortgage-backed securities FNMA [Member] | Temporarily Impaired Securities [Member] | ' | ' | |
Securities held to maturity in continuous unrealized loss position: | ' | ' | |
Less than 12 Months, No. of Securities | ' | 3,000 | |
Less than 12 Months, Fair value | ' | 4,467 | |
Less than 12 Months, Unrealized losses | ' | 19 | |
12 Months or More, No. of Securities | ' | 0 | |
12 Months or Morer, Fair value | ' | 0 | |
12 Months or More, Unrealized losses | ' | 0 | |
Total, Fair value | ' | 4,467 | |
Total, Unrealized losses | ' | $19 | |
[1] | Derived from audited consolidated financial statements. |
INVESTMENT_SECURITIES_Securiti2
INVESTMENT SECURITIES (Securities Containing Unrealized Losses) (Details) (USD $) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Gain (Loss) on Investments [Line Items] | ' | ' | ' |
Transfer of AFS securities to HTM securities | $76,500,000 | ' | $76,487,000 |
Holding gains included in the transfer | ' | 346,000 | ' |
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 | ' | 21 | ' |
Number of securities held | ' | 52 | ' |
Mortgage-backed securities FNMA [Member] | ' | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' | ' |
Number of securities containing unrealized losses | ' | 0 | ' |
Number of securities held | ' | 3 | ' |
Taxable Municipal Securities [Member] | ' | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' | ' |
Number of securities containing unrealized losses | ' | 9 | ' |
Number of securities held | ' | 21 | ' |
INVESTMENT_SECURITIES_Investme
INVESTMENT SECURITIES (Investment Securities by Contractual Maturities) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Available-for-sale Securities, Debt Maturities: | ' | ' | |
Amortized cost | $16,727 | $33,222 | |
Available for sale securities, fair value | 17,234 | 32,566 | [1] |
Held-to-maturity Securities, Debt Maturities: | ' | ' | |
Held to maturity securities, amortized cost | 90,272 | ' | |
Held to maturity securities, fair value | 90,516 | 95,831 | |
Taxable Municipal Securities [Member] | ' | ' | |
Available-for-sale Securities, Debt Maturities: | ' | ' | |
Due after ten years, Amortized Cost | 10,141 | ' | |
Amortized cost | 10,141 | 6,176 | |
Due after ten years, Fair Value | 10,513 | ' | |
Available for sale securities, fair value | 10,513 | 5,933 | |
Held-to-maturity Securities, Debt Maturities: | ' | ' | |
Due after one year through five years. Amortized Cost | 985 | ' | |
Due after five years through ten years, Amortized Cost | 2,624 | ' | |
Held to maturity securities, amortized cost | 3,609 | ' | |
Due after one year through five years, Fair Value | 979 | ' | |
Due after five years through ten years, Fair Value | 2,582 | ' | |
Held to maturity securities, fair value | 3,561 | 3,481 | |
Mortgage-backed Securities GNMA and FNMA [Member] | ' | ' | |
Available-for-sale Securities, Debt Maturities: | ' | ' | |
Due after five years through ten years, Amortized Cost | 2,934 | ' | |
Due after ten years, Amortized Cost | 3,599 | ' | |
Amortized cost | 6,533 | ' | |
Due after five years through ten years, Fair Value | 2,976 | ' | |
Due after ten years, Fair Value | 3,656 | ' | |
Available for sale securities, fair value | 6,632 | ' | |
Held-to-maturity Securities, Debt Maturities: | ' | ' | |
Due after one year through five years. Amortized Cost | 49,551 | ' | |
Due after five years through ten years, Amortized Cost | 24,589 | ' | |
Due after ten years, Amortized Cost | 12,523 | ' | |
Held to maturity securities, amortized cost | 86,663 | ' | |
Due after one year through five years, Fair Value | 49,935 | ' | |
Due after five years through ten years, Fair Value | 24,593 | ' | |
Due after ten years, Fair Value | 12,427 | ' | |
Held to maturity securities, fair value | 86,955 | ' | |
Trusted Preferred Securities and Equity Securities [Member] | ' | ' | |
Available-for-sale Securities, Debt Maturities: | ' | ' | |
Amortized cost | 53 | ' | |
Available for sale securities, fair value | 89 | ' | |
Trust Preferred Securities [Member] | ' | ' | |
Available-for-sale Securities, Debt Maturities: | ' | ' | |
Amortized cost | ' | 1,175 | |
Available for sale securities, fair value | ' | 1,025 | |
Equity Securities [Member] | ' | ' | |
Available-for-sale Securities, Debt Maturities: | ' | ' | |
Amortized cost | 53 | 98 | |
Available for sale securities, fair value | $89 | $131 | |
[1] | Derived from audited consolidated financial statements. |
INVESTMENT_SECURITIES_Securiti3
INVESTMENT SECURITIES (Securities Pledged and Sold) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Investments, Debt and Equity Securities [Abstract] | ' | ' | ' | ' |
Proceeds from sales and calls of investment securities available-for-sale | $6,600,000 | $10,700,000 | $19,981,000 | $12,879,000 |
Gross realized gains | 90,000 | 321,000 | 214,000 | 370,000 |
Gross realized losses | $0 | ' | ' | $0 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Loans Outstanding) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Loans and Leases Receivable Disclosure [Abstract] | ' | ' | |
Commercial and industrial loans | $24,826 | $25,858 | |
Commercial construction and land development | 59,705 | 66,253 | |
Commercial real estate | 204,625 | 214,159 | |
Residential construction | 30,471 | 28,697 | |
Residential mortgage | 146,877 | 147,300 | |
Consumer | 6,754 | 6,750 | |
Consumer credit cards | 2,164 | 2,339 | |
Business credit cards | 1,140 | 1,124 | |
Other | 653 | 738 | |
Total loans | 477,215 | 493,218 | |
Net deferred loan fees | -533 | -506 | |
Net loans before allowance | 476,682 | 492,712 | [1] |
Allowance for loan losses | -10,946 | -11,590 | [1] |
Net loans | $465,736 | $481,122 | [1] |
[1] | Derived from audited consolidated financial statements. |
LOANS_AND_ALLOWANCE_FOR_LOAN_L3
LOANS AND ALLOWANCE FOR LOAN LOSSES (Allowance for Loan Losses by Loan Class) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | ||||||||||||||||||||||||||
Commercial and Industrial [Member] | Commercial and Industrial [Member] | Commercial and Industrial [Member] | Commercial and Industrial [Member] | Commercial and Industrial [Member] | Commercial Construction and Land Development [Member] | Commercial Construction and Land Development [Member] | Commercial Construction and Land Development [Member] | Commercial Construction and Land Development [Member] | Commercial Construction and Land Development [Member] | Commercial Real Estate [Member] | Commercial Real Estate [Member] | Commercial Real Estate [Member] | Commercial Real Estate [Member] | Commercial Real Estate [Member] | Residential Construction [Member] | Residential Construction [Member] | Residential Construction [Member] | Residential Construction [Member] | Residential Construction [Member] | Residential Mortgage [Member] | Residential Mortgage [Member] | Residential Mortgage [Member] | Residential Mortgage [Member] | Residential Mortgage [Member] | Consumer [Member] | Consumer [Member] | Consumer [Member] | Consumer [Member] | Consumer [Member] | Other [Member] | Other [Member] | Other [Member] | Other [Member] | Other [Member] | Totals [Member] | Totals [Member] | Totals [Member] | Totals [Member] | Totals [Member] | ||||||||||||||||||||||||||||||||
Allowance for loan losses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||||
Balance, beginning of period | ' | ' | $11,590 | [1] | ' | ' | $407 | $1,185 | $487 | $1,185 | $1,185 | $5,482 | $7,251 | $5,037 | $7,251 | $7,251 | $2,847 | $2,961 | $2,981 | $2,961 | $2,961 | $701 | $423 | $713 | $423 | $423 | $1,900 | $4,471 | $2,146 | $4,471 | $4,471 | $170 | $188 | $188 | $188 | $188 | $9 | $70 | $38 | $70 | $70 | $11,516 | $16,549 | $11,590 | $16,549 | $16,549 | |||||||||||||||||||||||||
Provision for loan losses | 0 | 0 | 0 | 35 | ' | -92 | -395 | -188 | -407 | -801 | 107 | 62 | 663 | 1,003 | 958 | -326 | 271 | -412 | 19 | 701 | 90 | 125 | 78 | 164 | 428 | 171 | -133 | -150 | -835 | -1,332 | 44 | 39 | 53 | 69 | 117 | 6 | 31 | -44 | 22 | -36 | 0 | 0 | 0 | 35 | 35 | ||||||||||||||||||||||||||
Loans charged-off | ' | ' | ' | ' | ' | -1 | -42 | -24 | -60 | -411 | -164 | -1,198 | -317 | -1,858 | -3,759 | -283 | -987 | -490 | -1,225 | -2,226 | -171 | -138 | -171 | -138 | -138 | -173 | -294 | -240 | -904 | -1,553 | -47 | -73 | -89 | -164 | -271 | 0 | 0 | 0 | 0 | 0 | -839 | -2,732 | -1,331 | -4,349 | -8,358 | ||||||||||||||||||||||||||
Recoveries | ' | ' | ' | ' | ' | 75 | 228 | 114 | 251 | 514 | 142 | 91 | 184 | 178 | 587 | 3 | 1,007 | 162 | 1,008 | 1,545 | 0 | 0 | 0 | 0 | 0 | 47 | 158 | 189 | 281 | 560 | 2 | 39 | 17 | 85 | 154 | 0 | 0 | 21 | 0 | 4 | 269 | 1,523 | 687 | 1,803 | 3,364 | ||||||||||||||||||||||||||
Net (charge-offs) recoveries | ' | ' | ' | ' | ' | 74 | 186 | 90 | 191 | 103 | -22 | -1,107 | -133 | -1,680 | -3,172 | -280 | 20 | -328 | -217 | -681 | -171 | -138 | -171 | -138 | -138 | -126 | -136 | -51 | -623 | -993 | -45 | -34 | -72 | -79 | -117 | 0 | 0 | 21 | 0 | 4 | -570 | -1,209 | -644 | -2,546 | -4,994 | ||||||||||||||||||||||||||
Balance, end of period | 10,946 | ' | 10,946 | ' | ' | 389 | 1,178 | 389 | 969 | 487 | 5,567 | 7,619 | 5,567 | 6,574 | 5,037 | 2,241 | 2,472 | 2,241 | 2,763 | 2,981 | 620 | 462 | 620 | 449 | 713 | 1,945 | 3,282 | 1,945 | 3,013 | 2,146 | 169 | 173 | 169 | 178 | 188 | 15 | 61 | 15 | 92 | 38 | 10,946 | 15,247 | 10,946 | 14,038 | 11,590 | ||||||||||||||||||||||||||
Ending Balance, individually evaluated for impairment | ' | ' | ' | ' | ' | 116 | ' | 116 | 338 | 80 | 1,078 | ' | 1,078 | 348 | 264 | 353 | ' | 353 | 509 | 887 | 0 | ' | 0 | 0 | 137 | 580 | ' | 580 | 253 | 457 | 0 | ' | 0 | 0 | 0 | 0 | ' | 0 | 0 | 0 | 2,127 | ' | 2,127 | 1,448 | 1,825 | ||||||||||||||||||||||||||
Ending Balance, collectively evaluated for impairment | 142 | ' | 142 | ' | 226 | 273 | [2] | ' | 273 | [2] | 631 | 407 | [3] | 4,489 | [2] | ' | 4,489 | [2] | 6,226 | 4,773 | [3] | 1,888 | [2] | ' | 1,888 | [2] | 2,254 | 2,094 | [3] | 620 | [2] | ' | 620 | [2] | 449 | 576 | [3] | 1,365 | [2] | ' | 1,365 | [2] | 2,760 | 1,689 | [3] | 169 | [2] | ' | 169 | [2] | 178 | 188 | [3] | 15 | [2] | ' | 15 | [2] | 92 | 38 | [3] | 8,819 | [2] | ' | 8,819 | [2] | 12,590 | 9,765 | [3] | ||
Financing Receivables: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||||
Total loans | 477,215 | ' | 477,215 | ' | 493,218 | 25,966 | ' | 25,966 | 27,701 | 26,982 | 59,705 | ' | 59,705 | 79,362 | 66,253 | 204,625 | ' | 204,625 | 186,324 | 214,159 | 30,471 | ' | 30,471 | 24,263 | 28,697 | 146,877 | ' | 146,877 | 161,806 | 147,300 | 8,918 | ' | 8,918 | 9,207 | 9,089 | 653 | ' | 653 | 907 | 738 | 477,215 | ' | 477,215 | 489,570 | 493,218 | ||||||||||||||||||||||||||
Less: ending Balance: individually evaluated for impairment | ' | ' | ' | ' | ' | 633 | ' | 633 | 1,246 | 652 | 10,924 | ' | 10,924 | 16,108 | 12,234 | 10,795 | ' | 10,795 | 15,392 | 12,345 | 524 | ' | 524 | 695 | 1,181 | 9,029 | ' | 9,029 | 14,991 | 11,043 | 533 | ' | 533 | 22 | 0 | 0 | ' | 0 | 0 | 0 | 32,438 | ' | 32,438 | 48,454 | 37,455 | ||||||||||||||||||||||||||
Ending Balance, collectively evaluated for impairment | $1,500 | ' | $1,500 | ' | $1,700 | $25,333 | [2] | ' | $25,333 | [2] | $26,455 | $26,330 | [3] | $48,781 | [2] | ' | $48,781 | [2] | $63,254 | $54,019 | [3] | $193,830 | [2] | ' | $193,830 | [2] | $170,932 | $201,814 | [3] | $29,947 | [2] | ' | $29,947 | [2] | $23,568 | $27,516 | [3] | $137,848 | [2] | ' | $137,848 | [2] | $146,815 | $136,257 | [3] | $8,385 | [2] | ' | $8,385 | [2] | $9,185 | $9,089 | [3] | $653 | [2] | ' | $653 | [2] | $907 | $738 | [3] | $444,777 | [2] | ' | $444,777 | [2] | $441,116 | $455,763 | [3] | ||
[1] | Derived from audited consolidated financial statements. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | Includes $1.5 million in small dollar homogeneous loans collectively evaluated for impairment with $142,000 in reserves established. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[3] | In mid-2013, the Company began evaluating small dollar homogeneous loans collectively for impairment. These loans and their related allowance for loan losses are included in these totals. At DecemberB 31, 2013, there were $1.7 million in impaired loans collectively evaluated for impairment with $226,000 in reserves established. |
LOANS_AND_ALLOWANCE_FOR_LOAN_L4
LOANS AND ALLOWANCE FOR LOAN LOSSES (Credit Quality) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial and industrial loans | $24,826 | $25,858 |
Commercial construction and land development | 59,705 | 66,253 |
Commercial real estate | 204,625 | 214,159 |
Residential construction | 30,471 | 28,697 |
Residential mortgage | 146,877 | 147,300 |
Consumer | 6,754 | 6,750 |
Other | 653 | 738 |
Totals | 473,911 | 489,755 |
Consumer credit cards | 2,164 | 2,339 |
Business credit cards | 1,140 | 1,124 |
Total loans | 477,215 | 493,218 |
Credit Card Portfolio Exposure [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Consumer credit cards | 2,164 | 2,339 |
Business credit cards | 1,140 | 1,124 |
1 - Lowest Risk [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial and industrial loans | 2,110 | 2,014 |
Commercial construction and land development | 0 | 0 |
Commercial real estate | 0 | 0 |
Residential construction | 0 | 0 |
Residential mortgage | 0 | 0 |
Consumer | 1,608 | 1,365 |
Other | 8 | 8 |
Totals | 3,726 | 3,387 |
2 - Satisfactory Quality [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial and industrial loans | 655 | 646 |
Commercial construction and land development | 587 | 374 |
Commercial real estate | 2,467 | 2,696 |
Residential construction | 397 | 2 |
Residential mortgage | 14,425 | 12,811 |
Consumer | 376 | 412 |
Other | 13 | 15 |
Totals | 18,920 | 16,956 |
3 - Satisfactory - Merits Attention [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial and industrial loans | 9,485 | 9,639 |
Commercial construction and land development | 10,654 | 14,296 |
Commercial real estate | 76,742 | 75,898 |
Residential construction | 3,282 | 3,473 |
Residential mortgage | 53,952 | 53,144 |
Consumer | 3,728 | 3,628 |
Other | 343 | 482 |
Totals | 158,186 | 160,560 |
4 - Low Satisfactory [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial and industrial loans | 11,486 | 12,616 |
Commercial construction and land development | 35,316 | 36,723 |
Commercial real estate | 112,158 | 121,522 |
Residential construction | 26,268 | 23,779 |
Residential mortgage | 57,577 | 57,460 |
Consumer | 955 | 1,235 |
Other | 166 | 107 |
Totals | 243,926 | 253,442 |
5 - Special Mention [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial and industrial loans | 228 | 137 |
Commercial construction and land development | 2,859 | 1,922 |
Commercial real estate | 4,455 | 2,558 |
Residential construction | 0 | 262 |
Residential mortgage | 8,494 | 8,450 |
Consumer | 53 | 63 |
Other | 123 | 126 |
Totals | 16,212 | 13,518 |
6 - Substandard or Worse [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial and industrial loans | 862 | 806 |
Commercial construction and land development | 10,289 | 12,938 |
Commercial real estate | 8,803 | 11,485 |
Residential construction | 524 | 1,181 |
Residential mortgage | 12,429 | 15,435 |
Consumer | 34 | 47 |
Other | 0 | 0 |
Totals | 32,941 | 41,892 |
Performing [Member] | Credit Card Portfolio Exposure [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Consumer credit cards | 2,155 | 2,316 |
Business credit cards | 1,133 | 1,124 |
Non Performing [Member] | Credit Card Portfolio Exposure [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Consumer credit cards | 9 | 23 |
Business credit cards | $7 | $0 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L5
LOANS AND ALLOWANCE FOR LOAN LOSSES (Age Analysis of Past Due Loans) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-89 Days past due | $1,316 | $1,595 |
Nonaccrual | 23,398 | 27,227 |
Greater than 90 Days Past Due | 16 | 23 |
Total past due | 24,730 | 28,845 |
Current | 452,485 | 464,373 |
Total loans | 477,215 | 493,218 |
Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-89 Days past due | 32 | 34 |
Nonaccrual | 625 | 651 |
Greater than 90 Days Past Due | 0 | 0 |
Total past due | 657 | 685 |
Current | 24,169 | 25,173 |
Total loans | 24,826 | 25,858 |
Commercial Construction and Land Development [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-89 Days past due | 54 | 252 |
Nonaccrual | 9,537 | 9,536 |
Greater than 90 Days Past Due | 0 | 0 |
Total past due | 9,591 | 9,788 |
Current | 50,114 | 56,465 |
Total loans | 59,705 | 66,253 |
Commercial Real Estate [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-89 Days past due | 246 | 749 |
Nonaccrual | 3,949 | 6,391 |
Greater than 90 Days Past Due | 0 | 0 |
Total past due | 4,195 | 7,140 |
Current | 200,430 | 207,019 |
Total loans | 204,625 | 214,159 |
Residential Construction [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-89 Days past due | 0 | 0 |
Nonaccrual | 525 | 695 |
Greater than 90 Days Past Due | 0 | 0 |
Total past due | 525 | 695 |
Current | 29,946 | 28,002 |
Total loans | 30,471 | 28,697 |
Residential Mortgage [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-89 Days past due | 796 | 421 |
Nonaccrual | 8,756 | 9,943 |
Greater than 90 Days Past Due | 0 | 0 |
Total past due | 9,552 | 10,364 |
Current | 136,792 | 136,936 |
Total loans | 146,344 | 147,300 |
Consumer [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-89 Days past due | 55 | 11 |
Nonaccrual | 6 | 11 |
Greater than 90 Days Past Due | 0 | 0 |
Total past due | 61 | 22 |
Current | 7,226 | 6,728 |
Total loans | 7,287 | 6,750 |
Consumer Credit Cards [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-89 Days past due | 70 | 76 |
Nonaccrual | 0 | 0 |
Greater than 90 Days Past Due | 9 | 23 |
Total past due | 79 | 99 |
Current | 2,085 | 2,240 |
Total loans | 2,164 | 2,339 |
Business Credit Cards [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-89 Days past due | 63 | 52 |
Nonaccrual | 0 | 0 |
Greater than 90 Days Past Due | 7 | 0 |
Total past due | 70 | 52 |
Current | 1,070 | 1,072 |
Total loans | 1,140 | 1,124 |
Other Loans [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-89 Days past due | 0 | 0 |
Nonaccrual | 0 | 0 |
Greater than 90 Days Past Due | 0 | 0 |
Total past due | 0 | 0 |
Current | 653 | 738 |
Total loans | $653 | $738 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L6
LOANS AND ALLOWANCE FOR LOAN LOSSES (Nonperforming Assets) (Details) (USD $) | Jun. 30, 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 | $16 | $23 | |
Nonaccrual loans | 23,398 | 27,227 | |
Foreclosed assets | 6,048 | 8,502 | [1] |
Total | $29,462 | $35,752 | |
[1] | Derived from audited consolidated financial statements. |
LOANS_AND_ALLOWANCE_FOR_LOAN_L7
LOANS AND ALLOWANCE FOR LOAN LOSSES (Impaired Loans) (Details) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Impaired Loans, Recorded Investment | ' | ' |
With no related allowance recorded | $24,228 | $31,404 |
With an allowance recorded | 9,696 | 7,772 |
Total | 33,924 | 39,176 |
Impaired Loans, Unpaid Principal Balance | ' | ' |
With no related allowance recorded | 32,603 | 39,696 |
With an allowance recorded | 10,865 | 9,178 |
Total | 43,468 | 48,874 |
Impaired loans, allowance | 2,127 | 1,825 |
Impaired Loans, Average Recorded Investment | ' | ' |
With no related allowance recorded | 25,156 | 35,055 |
With an allowance recorded | 9,822 | 8,021 |
Total | 34,978 | 43,076 |
Impaired Loans, Interest Income Recognized | ' | ' |
With no related allowance recorded | 165 | 449 |
With an allowance recorded | 73 | 144 |
Total | 238 | 593 |
Commercial [Member] | ' | ' |
Impaired Loans, Recorded Investment | ' | ' |
Total | 22,677 | 25,609 |
Impaired Loans, Unpaid Principal Balance | ' | ' |
Total | 29,577 | 32,908 |
Impaired loans, allowance | 1,547 | 1,232 |
Impaired Loans, Average Recorded Investment | ' | ' |
Total | 23,368 | 28,713 |
Impaired Loans, Interest Income Recognized | ' | ' |
Total | 176 | 438 |
Commercial and Industrial [Member] | ' | ' |
Impaired Loans, Recorded Investment | ' | ' |
With no related allowance recorded | 364 | 380 |
With an allowance recorded | 297 | 309 |
Impaired Loans, Unpaid Principal Balance | ' | ' |
With no related allowance recorded | 377 | 517 |
With an allowance recorded | 320 | 322 |
Impaired loans, allowance | 116 | 80 |
Impaired Loans, Average Recorded Investment | ' | ' |
With no related allowance recorded | 367 | 491 |
With an allowance recorded | 301 | 321 |
Impaired Loans, Interest Income Recognized | ' | ' |
With no related allowance recorded | 1 | 2 |
With an allowance recorded | 0 | 0 |
Commercial Construction and Land Development [Member] | ' | ' |
Impaired Loans, Recorded Investment | ' | ' |
With no related allowance recorded | 7,153 | 11,142 |
With an allowance recorded | 3,892 | 1,315 |
Impaired Loans, Unpaid Principal Balance | ' | ' |
With no related allowance recorded | 11,465 | 15,809 |
With an allowance recorded | 4,604 | 2,033 |
Impaired loans, allowance | 1,078 | 264 |
Impaired Loans, Average Recorded Investment | ' | ' |
With no related allowance recorded | 7,434 | 13,259 |
With an allowance recorded | 3,983 | 1,348 |
Impaired Loans, Interest Income Recognized | ' | ' |
With no related allowance recorded | 11 | 168 |
With an allowance recorded | 9 | 0 |
Commercial Real Estate [Member] | ' | ' |
Impaired Loans, Recorded Investment | ' | ' |
With no related allowance recorded | 8,285 | 8,437 |
With an allowance recorded | 2,686 | 4,026 |
Impaired Loans, Unpaid Principal Balance | ' | ' |
With no related allowance recorded | 9,965 | 10,131 |
With an allowance recorded | 2,846 | 4,096 |
Impaired loans, allowance | 353 | 888 |
Impaired Loans, Average Recorded Investment | ' | ' |
With no related allowance recorded | 8,581 | 9,190 |
With an allowance recorded | 2,702 | 4,104 |
Impaired Loans, Interest Income Recognized | ' | ' |
With no related allowance recorded | 101 | 132 |
With an allowance recorded | 54 | 136 |
Residential [Member] | ' | ' |
Impaired Loans, Recorded Investment | ' | ' |
Total | 11,241 | 13,556 |
Impaired Loans, Unpaid Principal Balance | ' | ' |
Total | 13,884 | 15,944 |
Impaired loans, allowance | 580 | 593 |
Impaired Loans, Average Recorded Investment | ' | ' |
Total | 11,602 | 14,346 |
Impaired Loans, Interest Income Recognized | ' | ' |
Total | 62 | 155 |
Residential Construction [Member] | ' | ' |
Impaired Loans, Recorded Investment | ' | ' |
With no related allowance recorded | 524 | 486 |
With an allowance recorded | ' | 695 |
Impaired Loans, Unpaid Principal Balance | ' | ' |
With no related allowance recorded | 1,134 | 486 |
With an allowance recorded | ' | 1,134 |
Impaired loans, allowance | ' | 137 |
Impaired Loans, Average Recorded Investment | ' | ' |
With no related allowance recorded | 667 | 474 |
With an allowance recorded | ' | 749 |
Impaired Loans, Interest Income Recognized | ' | ' |
With no related allowance recorded | 0 | 26 |
With an allowance recorded | ' | 0 |
Residential Mortgage [Member] | ' | ' |
Impaired Loans, Recorded Investment | ' | ' |
With no related allowance recorded | 7,896 | 10,948 |
With an allowance recorded | 2,821 | 1,427 |
Impaired Loans, Unpaid Principal Balance | ' | ' |
With no related allowance recorded | 9,655 | 12,731 |
With an allowance recorded | 3,095 | 1,593 |
Impaired loans, allowance | 580 | 456 |
Impaired Loans, Average Recorded Investment | ' | ' |
With no related allowance recorded | 8,099 | 11,624 |
With an allowance recorded | 2,836 | 1,499 |
Impaired Loans, Interest Income Recognized | ' | ' |
With no related allowance recorded | 52 | 121 |
With an allowance recorded | 10 | 8 |
Consumer [Member] | ' | ' |
Impaired Loans, Recorded Investment | ' | ' |
With no related allowance recorded | 6 | 11 |
Total | 6 | 11 |
Impaired Loans, Unpaid Principal Balance | ' | ' |
With no related allowance recorded | 7 | 22 |
Total | 7 | 22 |
Impaired loans, allowance | 0 | 0 |
Impaired Loans, Average Recorded Investment | ' | ' |
With no related allowance recorded | 8 | 17 |
Total | 8 | 17 |
Impaired Loans, Interest Income Recognized | ' | ' |
With no related allowance recorded | 0 | 0 |
Total | $0 | $0 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L8
LOANS AND ALLOWANCE FOR LOAN LOSSES (Loans on Nonaccrual Status) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual loans | $23,398 | $27,227 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L9
LOANS AND ALLOWANCE FOR LOAN LOSSES (Summary of Loans Modified as TDRs) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Modifications [Line Items] | ' | ' |
Accrual | $8,955 | $7,030 |
Nonaccrual | 9,008 | 14,260 |
Total TDRs | 17,963 | 21,290 |
Allowance for Loan Losses Allocated | 657 | 486 |
Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Accrual | 37 | 37 |
Nonaccrual | 299 | 301 |
Total TDRs | 336 | 338 |
Allowance for Loan Losses Allocated | 0 | 0 |
Commercial Construction and Land Development [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Accrual | 1,509 | 227 |
Nonaccrual | 4,107 | 6,699 |
Total TDRs | 5,616 | 6,926 |
Allowance for Loan Losses Allocated | 247 | 34 |
Commercial Real Estate [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Accrual | 5,448 | 4,447 |
Nonaccrual | 2,217 | 4,204 |
Total TDRs | 7,665 | 8,651 |
Allowance for Loan Losses Allocated | 180 | 223 |
Residential Mortgage [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Accrual | 1,961 | 2,319 |
Nonaccrual | 2,385 | 3,055 |
Total TDRs | 4,346 | 5,374 |
Allowance for Loan Losses Allocated | 230 | 229 |
Other [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Accrual | ' | 0 |
Nonaccrual | ' | 1 |
Total TDRs | ' | 1 |
Allowance for Loan Losses Allocated | ' | $0 |
Recovered_Sheet1
LOANS AND ALLOWANCE FOR LOAN LOSSES (TDRs by Loan Class) (Details) (USD $) | 3 Months Ended | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 |
loans | loans | |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 2 | 2 |
Pre-Modification Outstanding Recorded Investment | $100 | $100 |
Post-Modification Outstanding Recorded Investment | 42 | 42 |
Forgiveness of Principal [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 2 | 2 |
Pre-Modification Outstanding Recorded Investment | 100 | 100 |
Post-Modification Outstanding Recorded Investment | 42 | 42 |
Forgiveness of Principal [Member] | Commercial Construction and Land Development [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 2 | 2 |
Pre-Modification Outstanding Recorded Investment | 100 | 100 |
Post-Modification Outstanding Recorded Investment | $42 | $42 |
Recovered_Sheet2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Status of Troubled Debt Restructurings) (Details) (USD $) | 12 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
loans | Paid in Full [member] | Paying as Restructured [Member] | Converted to Non-accrual [Member] | Foreclosure/Default [Member] | Extended Payment Terms [Member] | Extended Payment Terms [Member] | Extended Payment Terms [Member] | Extended Payment Terms [Member] | Forgiveness of Principal [Member] | Forgiveness of Principal [Member] | Forgiveness of Principal [Member] | Forgiveness of Principal [Member] | |||
loans | loans | loans | loans | Paid in Full [member] | Paying as Restructured [Member] | Converted to Non-accrual [Member] | Foreclosure/Default [Member] | Paid in Full [member] | Paying as Restructured [Member] | Converted to Non-accrual [Member] | Foreclosure/Default [Member] | ||||
loans | loans | loans | loans | loans | loans | loans | loans | ||||||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of loans | ' | ' | ' | 0 | 0 | 3 | ' | 0 | 0 | 1 | ' | 0 | 0 | 2 | ' |
Total TDRs | ' | $17,963 | $21,290 | $0 | $0 | $97 | ' | $0 | $0 | $55 | ' | $0 | $0 | $42 | ' |
Number of loans foreclosed | 3 | ' | ' | ' | ' | ' | 0 | ' | ' | ' | 0 | ' | ' | ' | 0 |
Recorded investment foreclosed | ' | ' | ' | ' | ' | ' | $0 | ' | ' | ' | $0 | ' | ' | ' | $0 |
SUBORDINATED_DEBT_Details
SUBORDINATED DEBT (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | |
In Thousands, except Per Share data, unless otherwise specified | |||
Debt Instrument [Line Items] | ' | ' | |
Interest payable accrued and deferred | $1,730 | $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 | $799 | ' | |
[1] | Derived from audited consolidated financial statements. |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | Jun. 30, 2014 | Oct. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 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 | $94,933,000 | ' | $80,365,000 | $4,632,000 | $74,745,000 | $238,000 | $750,000 | $14,568,000 | ' |
Cash | 24,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Securities | 106,933,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Loans | 49,470,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Civil monetary penalty | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 |
Civil forfeiture | ' | ' | ' | ' | ' | ' | ' | ' | $200,000 |
Number of pending lawsuits | 2 | 4 | ' | ' | ' | ' | ' | ' | ' |
FAIR_VALUE_MEASUREMENT_Assets_
FAIR VALUE MEASUREMENT (Assets Measured at Fair Value on Recurring Basis) (Details) (USD $) | Jun. 30, 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 | $17,234 | $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 | 10,513 | 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 | 6,632 | 25,477 | |
Equity Securities [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available-for-sale, at fair value | 89 | 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 | 78 | 70 | |
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 | 17,156 | 31,471 | |
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 | 0 | 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 | 17,234 | 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 | 17,234 | 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 | 78 | 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] | 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 | |
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 | 78 | 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 | 17,156 | 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 | 10,513 | 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 | 6,632 | 25,477 | |
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 | |
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 | 0 | 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] | 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 | 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 | 17,234 | 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 | 10,513 | 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 | 6,632 | 25,477 | |
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 | ' | 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 | 89 | 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 | 17,234 | 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 | 10,513 | 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 | 6,632 | 25,477 | |
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 | ' | 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 | $89 | $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 | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Level 3 assets measured at fair value on a recurring basis [Roll Forward] | ' | ' | ' | ' |
Beginning Balance | $410 | $1,019 | $1,025 | $1,019 |
Total realized and unrealized gains or (losses) included in earnings | 90 | 0 | 90 | 0 |
Purchases, issuances and settlements | -500 | 0 | -1,115 | 0 |
Ending Balance | $0 | $1,019 | $0 | $1,019 |
FAIR_VALUE_MEASUREMENT_Assets_1
FAIR VALUE MEASUREMENT (Assets Measured at Fair Value on Nonrecurring Basis) (Details) (USD $) | 6 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | |
Impaired loans, amount | $33,924 | ' | $39,176 | |
Impaired loans, amount with allowance | 9,696 | ' | 7,772 | |
Impaired loans, allowance | 2,127 | ' | 1,825 | |
Impaired loans, with no related allowance recorded | 24,228 | ' | 31,404 | |
Investment securities available-for-sale, at fair value | 17,234 | ' | 32,566 | [1] |
Valuation adjustment on foreclosed assets | 295 | 637 | 1,600 | |
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 | 78 | ' | 70 | |
Assets measured at fair value: | ' | ' | ' | |
Loans held for sale | 0 | ' | ' | |
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 | 17,156 | ' | 31,471 | |
Assets measured at fair value: | ' | ' | ' | |
Loans held for sale | 581 | ' | ' | |
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 | 0 | ' | 1,025 | |
Assets measured at fair value: | ' | ' | ' | |
Loans held for sale | 0 | ' | ' | |
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 | 17,234 | ' | 32,566 | |
Assets measured at fair value: | ' | ' | ' | |
Loans held for sale | 581 | ' | ' | |
Assets Measured at Fair Value [Member] | ' | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | |
Impaired loans, amount | 19,400 | ' | 20,000 | |
Impaired loans, amount with allowance | 9,700 | ' | 7,800 | |
Impaired loans, allowance | 2,100 | ' | 1,800 | |
Impaired loans, with no related allowance recorded | 9,700 | ' | 12,200 | |
Investment securities available-for-sale, at fair value | 17,234 | ' | 32,566 | |
Assets measured at fair value: | ' | ' | ' | |
Loans held for sale | 581 | ' | ' | |
Nonrecurring Basis [Member] | Quoted Prices in Active Markets for Identical Asset (Level 1) [Member] | ' | ' | ' | |
Assets measured at fair value: | ' | ' | ' | |
Loans held for sale | 0 | ' | ' | |
Impaired loans | 0 | ' | 0 | |
Foreclosed assets | 0 | ' | 0 | |
Nonrecurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' | |
Assets measured at fair value: | ' | ' | ' | |
Loans held for sale | 581 | ' | ' | |
Impaired loans | 0 | ' | 0 | |
Foreclosed assets | 0 | ' | 0 | |
Nonrecurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | |
Impaired loans, amount | 17,302 | ' | ' | |
Assets measured at fair value: | ' | ' | ' | |
Loans held for sale | 0 | ' | ' | |
Impaired loans | 17,302 | ' | 18,215 | |
Foreclosed assets | 6,048 | ' | 8,502 | |
Nonrecurring Basis [Member] | Total Carrying Amount in the Consolidated Balance Sheet [Member] | ' | ' | ' | |
Assets measured at fair value: | ' | ' | ' | |
Loans held for sale | 581 | ' | ' | |
Impaired loans | 17,302 | ' | 18,215 | |
Foreclosed assets | 6,048 | ' | 8,502 | |
Nonrecurring Basis [Member] | Assets Measured at Fair Value [Member] | ' | ' | ' | |
Assets measured at fair value: | ' | ' | ' | |
Loans held for sale | 581 | ' | ' | |
Impaired loans | 17,302 | ' | 18,215 | |
Foreclosed assets | $6,048 | ' | $8,502 | |
[1] | Derived from audited consolidated financial statements. |
FAIR_VALUE_MEASUREMENT_Quantit
FAIR VALUE MEASUREMENT (Quantitative Information, Unobservable Input) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
In Thousands, unless otherwise specified | Nonrecurring Basis [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] | Significant Unobservable Inputs (Level 3) [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] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Maximum [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] | ||||||
Loans Receivable [Member] | Trust Preferred Securities [Member] | Trust Preferred Securities [Member] | Trust Preferred Securities [Member] | Trust Preferred Securities [Member] | Minimum [Member] | Maximum [Member] | |||||||||
Minimum [Member] | Maximum [Member] | ||||||||||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Trust preferred securities | $17,234 | $32,566 | [1] | ' | $0 | $1,025 | $0 | $1,025 | $0 | $1,025 | ' | ' | ' | ' | ' |
Impaired loans | 33,924 | 39,176 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,302 | ' | ' | |
Foreclosed assets | $6,048 | $8,502 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6,048 | ' | ' |
Collateral discounts | ' | ' | 40.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.00% | 50.00% | |
Discounted appraisals | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | 30.00% | |
Probability of default | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | 20.00% | ' | ' | ' | |
Loss given default | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | |
[1] | Derived from audited consolidated financial statements. |
FAIR_VALUE_MEASUREMENT_Range_o
FAIR VALUE MEASUREMENT (Range of Collateral Discounts) (Details) | 6 Months Ended |
Jun. 30, 2014 | |
Commercial Construction and Land Development [Member] | Minimum [Member] | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Collateral discounts | 10.50% |
Commercial Construction and Land Development [Member] | Maximum [Member] | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Collateral discounts | 40.00% |
Commercial Real Estate Other [Member] | Minimum [Member] | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Collateral discounts | 12.50% |
Commercial Real Estate Other [Member] | Maximum [Member] | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Collateral discounts | 50.00% |
Residential Construction [Member] | Minimum [Member] | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Collateral discounts | 9.00% |
Residential Construction [Member] | Maximum [Member] | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Collateral discounts | 30.00% |
Residential Mortgage [Member] | Minimum [Member] | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Collateral discounts | 9.00% |
Residential Mortgage [Member] | Maximum [Member] | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Collateral discounts | 20.00% |
All Other Segments [Member] | Minimum [Member] | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Collateral discounts | 9.00% |
All Other Segments [Member] | Maximum [Member] | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Collateral discounts | 20.00% |
FAIR_VALUE_MEASUREMENT_Informa
FAIR VALUE MEASUREMENT (Information on Financial Assets and Liabilities) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Financial assets: | ' | ' | |
CDs held for investment | $26,460 | $31,850 | [1] |
Available for sale securities | 17,234 | 32,566 | [1] |
Securities held to maturity | 90,516 | 95,831 | |
Level 1 [Member] | ' | ' | |
Financial assets: | ' | ' | |
Cash and cash equivalents | 186,694 | 128,629 | |
CDs held for investment | 0 | 0 | |
Available for sale securities | 78 | 70 | |
Securities held to maturity | 0 | 0 | |
Loans held for sale | 0 | ' | |
Loans, net | 0 | 0 | |
FHLB stock | 0 | 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 | 26,460 | 31,850 | |
Available for sale securities | 17,156 | 31,471 | |
Securities held to maturity | 90,516 | 95,831 | |
Loans held for sale | 581 | ' | |
Loans, net | 0 | 0 | |
FHLB stock | 5,778 | 6,076 | |
Accrued interest receivable | 1,550 | 1,576 | |
Financial liabilities: | ' | ' | |
Deposits | 666,311 | 659,733 | |
Subordinated debentures and promissory notes | 0 | 0 | |
Borrowings | 120,948 | 121,519 | |
Accrued interest payable | 1,730 | 1,642 | |
Level 3 [Member] | ' | ' | |
Financial assets: | ' | ' | |
Cash and cash equivalents | 0 | 0 | |
CDs held for investment | 0 | 0 | |
Available for sale securities | 0 | 1,025 | |
Securities held to maturity | 0 | 0 | |
Loans held for sale | 0 | ' | |
Loans, net | 444,032 | 458,254 | |
FHLB stock | 0 | 0 | |
Accrued interest receivable | 0 | 0 | |
Financial liabilities: | ' | ' | |
Deposits | 0 | 0 | |
Subordinated debentures and promissory notes | 24,374 | 24,369 | |
Borrowings | 0 | 0 | |
Accrued interest payable | 0 | 0 | |
Carrying Value [Member] | ' | ' | |
Financial assets: | ' | ' | |
Cash and cash equivalents | 186,694 | 128,629 | |
CDs held for investment | 26,460 | 31,850 | |
Available for sale securities | 17,234 | 32,566 | |
Securities held to maturity | 90,272 | 98,013 | |
Loans held for sale | 581 | ' | |
Loans, net | 465,736 | 481,122 | |
FHLB stock | 5,778 | 6,076 | |
Accrued interest receivable | 1,550 | 1,576 | |
Financial liabilities: | ' | ' | |
Deposits | 664,558 | 657,620 | |
Subordinated debentures and promissory notes | 24,372 | 24,372 | |
Borrowings | 112,000 | 112,000 | |
Accrued interest payable | 1,730 | 1,642 | |
Estimated Fair Value [Member] | ' | ' | |
Financial assets: | ' | ' | |
Cash and cash equivalents | 186,694 | 128,629 | |
CDs held for investment | 26,460 | 31,850 | |
Available for sale securities | 17,234 | 32,566 | |
Securities held to maturity | 90,516 | 95,831 | |
Loans held for sale | 581 | ' | |
Loans, net | 444,032 | 458,254 | |
FHLB stock | 5,778 | 6,076 | |
Accrued interest receivable | 1,550 | 1,576 | |
Financial liabilities: | ' | ' | |
Deposits | 666,311 | 659,733 | |
Subordinated debentures and promissory notes | 24,374 | 24,369 | |
Borrowings | 120,948 | 121,519 | |
Accrued interest payable | $1,730 | $1,642 | |
[1] | Derived from audited consolidated financial statements. |
REGULATORY_RESTRICTIONS_Detail
REGULATORY RESTRICTIONS (Details) (USD $) | 6 Months Ended | ||
Jun. 30, 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 | 54,852,000 | 50,601,000 | ' |
Total Capital (to Risk Weighted Assets), Amount, Minimum for Capital Adequacy Purposes | 36,381,000 | 37,057,000 | ' |
Total Capital (to Risk Weighted Assets), Amount, Minimum to be Well Capitalized under Prompt Corrective Action Provisions | 45,477,000 | 46,322,000 | ' |
Tier I Capital (to Risk Weighted Assets), Amount | ' | ' | ' |
Tier I Capital (to Risk Weighted Assets), Amount, Actual | 49,102,000 | 44,739,000 | ' |
Tier I Capital (to Risk Weighted Assets), Amount, Minimum for Capital Adequacy Purposes | 18,191,000 | 18,529,000 | ' |
Tier I Capital (to Risk Weighted Assets), Amount, Minimum to be Well Capitalized under Prompt Corrective Action Provisions | 27,286,000 | 27,793,000 | ' |
Tier I Capital (to Average Assets), Amount | ' | ' | ' |
Tier I Capital (to Average Assets), Amount, Actual | 49,102,000 | 44,739,000 | ' |
Tier I Capital (to Average Assets), Amount, Minimum for Capital Adequacy Purposes | 33,017,000 | 32,529,000 | ' |
Tier I Capital (to Average Assets), Amount, Minimum to be Well Capitalized under Prompt Corrective Action Provisions | 41,271,000 | 40,661,000 | ' |
Total Capital and Tier I Capital (to Risk Weighted Assets), Ratio | ' | ' | ' |
Total Capital (to Risk Weighted Assets), Ratio, Actual | 12.10% | 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 | 10.80% | 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 | 5.90% | 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 | 11.70% | 10.70% | ' |
Tier I Capital (to Risk Weighted Assets), Ratio, Actual | 7.80% | 6.30% | ' |
Tier I Capital (to Average Assets), Ratio | ' | ' | ' |
Tier I Capital (to Average Assets), Ratio, Actual | 4.30% | 3.60% | ' |
SECURITIES_PURCHASE_AGREEMENT_
SECURITIES PURCHASE AGREEMENT (Details) (USD $) | Mar. 26, 2014 | Mar. 27, 2014 | Mar. 24, 2014 | Mar. 24, 2014 | Jul. 31, 2014 |
In Millions, except Share data, unless otherwise specified | Standby Investor [Member] | Standby Investor [Member] | Maximum [Member] | Forecast [Member] | |
Standby Offering [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 | ' |
Maximum percentage of shares that can be purchased | ' | ' | ' | 49.99% | ' |
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 | ' | ' | ' | ' |
Estimated aggregate gross proceeds from offerings | ' | ' | ' | ' | $24 |
EMPLOYEE_STOCK_OWNERSHIP_PLAN_
EMPLOYEE STOCK OWNERSHIP PLAN (Details) | 0 Months Ended |
Apr. 08, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Employee stock ownership plan, vesting percentage | 100.00% |
Employee stock ownership plan, distribution percentage | 100.00% |