Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 14, 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-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 32,023,556 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
ASSETS | ' | ' | |
Cash and due from banks | $12,535 | $11,890 | [1] |
Interest-earning deposits | 198,795 | 116,739 | [1] |
Cash and cash equivalents | 211,330 | 128,629 | [1] |
CDs held for investment | 29,645 | 31,850 | [1] |
Investment securities available-for-sale, at fair value | 17,827 | 32,566 | [1] |
Investment securities held-to-maturity, at amortized cost | 85,773 | 98,013 | [1] |
Total investment securities | 103,600 | 130,579 | [1] |
Loans | 446,347 | 492,712 | [1] |
Allowance for loan losses | -9,347 | -11,590 | [1] |
Net loans | 437,000 | 481,122 | [1] |
Loans held for sale | 12,237 | 0 | [1] |
Accrued interest receivable | 1,486 | 1,576 | [1] |
Bank premises and equipment, net | 12,057 | 12,571 | [1] |
FHLB stock | 5,553 | 6,076 | [1] |
Bank owned life insurance | 14,537 | 14,380 | [1] |
Foreclosed assets | 4,724 | 8,502 | [1] |
Other assets | 5,750 | 6,261 | [1] |
Total assets | 837,919 | 821,546 | [1] |
Deposits: | ' | ' | |
Noninterest-bearing demand | 252,967 | 228,203 | [1] |
Money market, NOW accounts and savings accounts | 168,205 | 166,102 | [1] |
Time deposits, $100,000 and over | 147,476 | 162,403 | [1] |
Other time deposits | 93,164 | 100,912 | [1] |
Total deposits | 661,812 | 657,620 | [1] |
Borrowings | 107,000 | 112,000 | [1] |
Subordinated debentures | 12,372 | 12,372 | [1] |
Subordinated promissory notes | 12,000 | 12,000 | [1] |
Accrued interest payable | 1,747 | 1,642 | [1] |
Other liabilities | 2,916 | 4,289 | [1] |
Total liabilities | 797,847 | 799,923 | [1] |
Commitments (Note F) | ' | ' | [1] |
Common stock, $1.00 par value, 80,000,000 shares authorized; 32,023,556 and 7,977,657 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively. | 32,024 | 7,978 | [1] |
Additional paid-in capital | 32,503 | 34,269 | [1] |
Accumulated deficit | -25,212 | -20,390 | [1] |
Accumulated other comprehensive income (loss) | 757 | -234 | [1] |
Total shareholders' equity | 40,072 | 21,623 | [1] |
Total liabilities and shareholders' equity | $837,919 | $821,546 | [1] |
[1] | Derived from audited consolidated financial statements. |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 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 | 32,023,556 | 7,977,657 |
Common stock, shares outstanding | 32,023,556 | 7,977,657 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Interest and dividend income: | ' | ' | ' | ' |
Loans, including fees | $6,590 | $6,827 | $19,686 | $20,608 |
Taxable investments | 516 | 443 | 1,799 | 918 |
Dividends | 76 | 78 | 239 | 263 |
Interest-earning deposits | 173 | 164 | 515 | 498 |
Total interest and dividend income | 7,355 | 7,512 | 22,239 | 22,287 |
Interest expense: | ' | ' | ' | ' |
Deposits | 716 | 846 | 2,173 | 2,693 |
Borrowings | 1,025 | 1,025 | 3,041 | 3,041 |
Subordinated debentures | 50 | 51 | 149 | 153 |
Subordinated promissory notes | 257 | 257 | 763 | 763 |
Total interest expense | 2,048 | 2,179 | 6,126 | 6,650 |
Net interest income | 5,307 | 5,333 | 16,113 | 15,637 |
Provision for loan losses | 7,954 | 0 | 7,954 | 35 |
Net interest income after provision for loan losses | -2,647 | 5,333 | 8,159 | 15,602 |
Non-interest income: | ' | ' | ' | ' |
Service charges on deposit accounts | 446 | 458 | 1,259 | 1,333 |
Other service charges, commissions and fees | 732 | 947 | 2,639 | 2,649 |
Gains on sale of investment securities available-for-sale, net | 51 | 92 | 265 | 462 |
Recovery of impairment loss on redemption of equity securities | 175 | 0 | 264 | 0 |
Income from investment in life insurance | 50 | 49 | 157 | 186 |
Indemnification from third party payment processor clients | 772 | 0 | 3,049 | 0 |
Other | 44 | 80 | 137 | 786 |
Total non-interest income | 2,270 | 1,626 | 7,770 | 5,416 |
Non-interest expenses: | ' | ' | ' | ' |
Salaries | 2,470 | 2,435 | 7,321 | 7,749 |
Employee benefits | 402 | 384 | 1,364 | 1,384 |
Occupancy expenses | 328 | 250 | 921 | 903 |
Equipment expenses | 287 | 354 | 918 | 1,059 |
Professional and consulting fees | 976 | 903 | 2,406 | 2,309 |
FDIC assessments | 460 | 371 | 1,368 | 1,290 |
Foreclosed asset-related costs, net | 1,359 | 697 | 1,806 | 1,637 |
Collection expenses | 143 | 234 | 497 | 925 |
Other | 1,796 | 1,252 | 4,150 | 3,710 |
Total non-interest expenses | 8,221 | 6,880 | 20,751 | 20,966 |
Income (loss) before income taxes | -8,598 | 79 | -4,822 | 52 |
Income tax | 0 | 0 | 0 | 0 |
Net income (loss) | ($8,598) | $79 | ($4,822) | $52 |
Basic net income (loss) per common share (in usd per share) | ($0.42) | $0.01 | ($0.38) | $0.01 |
Diluted net income (loss) per common share (in usd per share) | ($0.42) | $0.01 | ($0.38) | $0.01 |
Weighted Average Shares Outstanding, Basic | 20,696,393 | 7,944,600 | 12,584,239 | 7,897,348 |
Weighted Average Shares Outstanding, Diluted | 20,696,393 | 7,944,600 | 12,584,239 | 7,897,348 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income (loss) | ($8,598) | $79 | ($4,822) | $52 |
Securities available-for-sale: | ' | ' | ' | ' |
Unrealized gains (losses) on securities available-for-sale | -47 | -154 | 1,329 | -728 |
Tax effect | 0 | 59 | 0 | 281 |
Reclassification of gains recognized in net income | -51 | -92 | -265 | -462 |
Tax effect | 0 | 35 | 0 | 178 |
Amortization of unrealized (losses) gains on investment securities transferred from available-for-sale to held-to-maturity | -21 | 50 | -73 | 60 |
Tax effect | 0 | -19 | 0 | -23 |
Total other comprehensive income (loss) | -119 | -121 | 991 | -694 |
Comprehensive (loss) | ($8,717) | ($42) | ($3,831) | ($642) |
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) | 52 | ' | ' | 52 | ' | |
Other comprehensive income (loss) | -694 | ' | ' | ' | -694 | |
Issuance of common stock (in shares) | ' | 144,129 | ' | ' | ' | |
Issuance of common stock | 195 | 145 | 50 | ' | ' | |
Stock based compensation | 20 | ' | 20 | ' | ' | |
ENDING BALANCE at Sep. 30, 2013 | 22,249 | 7,960 | 34,262 | -19,988 | 15 | |
ENDING BALANCE (in shares) at Sep. 30, 2013 | ' | 7,959,514 | ' | ' | ' | |
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) | -4,822 | ' | ' | -4,822 | ' | |
Other comprehensive income (loss) | 991 | ' | ' | ' | 991 | |
Issuance of common stock (in shares) | ' | 24,045,899 | ' | ' | ' | |
Issuance of common stock | 22,229 | 24,046 | -1,817 | ' | ' | |
Stock based compensation | 51 | ' | 51 | ' | ' | |
ENDING BALANCE at Sep. 30, 2014 | $40,072 | $32,024 | $32,503 | ($25,212) | $757 | |
ENDING BALANCE (in shares) at Sep. 30, 2014 | ' | 32,023,556 | ' | ' | ' | |
[1] | Derived from audited consolidated financial statements. |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | |
Cash flows from operating activities: | ' | ' | |
Net income (loss) | ($4,822) | $52 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | |
Provision for loan losses | 7,954 | 35 | |
Depreciation and amortization | 649 | 735 | |
Net amortization of bond premiums and discounts | 915 | 1,368 | |
Stock based compensation | 51 | 20 | |
Gain on sale of investment securities | -265 | -462 | |
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 | -224 | 1 | |
Valuation adjustment on foreclosed assets | 1,680 | 1,207 | |
Earnings on bank-owned life insurance | -157 | -186 | |
Gain on sale of mortgage loans held for sale | -402 | -473 | |
Originations of mortgage loans held for sale | -17,227 | -21,136 | |
Proceeds from sale of mortgage loans held for sale | 16,581 | 21,993 | |
Recovery of impairment loss on redemption of securities | -264 | 0 | |
Changes in assets and liabilities: | ' | ' | |
Other assets | 345 | 2,174 | |
Accrued interest receivable | 90 | 299 | |
Other liabilities | -1,373 | 96 | |
Accrued interest payable | 105 | -127 | |
Net cash provided by operating activities | 3,632 | 5,010 | |
Cash flows from investing activities: | ' | ' | |
Proceeds from sales and calls of investment securities available-for-sale | 22,661 | 20,874 | |
Proceeds from paydowns of investment securities available-for-sale | 888 | 5,610 | |
Proceeds from paydowns of investment securities held-to-maturity | 11,381 | 8,604 | |
Purchases of investment securities available-for-sale | -7,180 | -29,253 | |
Purchases of investment securities held-to-maturity | 0 | -24,660 | |
Net cash from sale of branches | 0 | -39,622 | |
Redemption (purchase) of CDs held for investment | 2,205 | -8,575 | |
Redemption of FHLB stock | 523 | 339 | |
Net decrease (increase) in loans outstanding | 23,424 | -666 | |
Purchases of bank premises and equipment, net of disposals | -131 | -161 | |
Proceeds from sales of foreclosed assets | 3,877 | 5,429 | |
Net recoveries on foreclosed assets | 0 | 13 | |
Net cash provided by (used in) investing activities | 57,648 | -62,068 | |
Cash flows from financing activities: | ' | ' | |
Net repayments from borrowings | -5,000 | 0 | |
Net increase in deposit accounts | 4,192 | 3,885 | |
Proceeds from issuance of common stock | 22,229 | 195 | |
Net cash provided by financing activities | 21,421 | 4,080 | |
Change in cash and cash equivalents | 82,701 | -52,978 | |
Cash and cash equivalents at beginning of period | 128,629 | [1] | 183,150 |
Cash and cash equivalents at end of period | 211,330 | 130,172 | |
Supplemental disclosures of cash flow information: | ' | ' | |
Interest paid on deposits and borrowings | -6,021 | -6,777 | |
Income taxes paid | -110 | 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 | 1,231 | -694 | |
Amortization of net loss on investment securities transferred to held-to-maturity | -73 | 0 | |
Transfers of loans to loans held for sale | 1,555 | 1,957 | |
Transfer of available-for-sale securities to held-to-maturity securities | 0 | 76,487 | |
Transfers of loans to loans held for sale | $11,189 | $3,639 | |
[1] | Derived from audited consolidated financial statements. |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 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 nine months ended September 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 nine months ended September 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 August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This update requires management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date the financial statements are issued. Substantial doubt about an entity’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that an entity will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued. If the substantial doubt is alleviated as a result of consideration of management’s plans, the entity should disclose information that enables financial statement users to understand the principal conditions or events that raised substantial doubt, management’s evaluation of the conditions and management’s plans to alleviate the substantial doubt. If substantial doubt exists about an entity’s ability to continue as a going concern, and the substantial doubt is not alleviated after consideration of management’s plans, an entity should include a statement in the footnotes indicating that there is substantial doubt about the entity’s ability to continue as a going concern. The amendments in this update become effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. The Company does not believe the adoption of this update will have a material impact of the Company’s consolidated financial statements. | |
In August 2014, the FASB issued ASU No. 2014-14, Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40), Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure. This update addresses classification of government-guaranteed mortgage loans, including those where guarantees are offered by the Federal Housing Administration (“FHA”), the U.S. Department of Housing and Urban Development (“HUD”), and the U.S. Department of Veterans Affairs (“VA”). Although current accounting guidance stipulates proper measurement and classification in situations where a creditor obtains from a debtor, assets in satisfaction of a receivable (such as through foreclosure), current guidance does not specify how to measure and classify foreclosed mortgage loans that are government-guaranteed. Under the provisions of this update, a creditor would derecognize a mortgage loan that has been foreclosed upon, and recognize a separate receivable if the following conditions are met: (1) The loan has a government guarantee that is not separable from the loan before foreclosure, (2) At the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim, and (3) At the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. The amendments within this update are effective for annual and interim periods beginning after December 15, 2014. The Company does not believe the adoption of this update will have a material impact of the Company’s consolidated financial statements. | |
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. The Company does not expect the adoption of this guidance to have a material impact on the Company's financial statements. | |
In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This update seeks to eliminate the diversity in practice in the presentation of unrecognized tax benefits by providing explicit guidance on the financial statement presentation of an unrecognized tax benefit with a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This amendment is effective for annual and interim periods beginning after December 15, 2013. The adoption of the new guidance did not have a material impact on the Company's consolidated financial statements. | |
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 | 9 Months Ended | |||||||||||||||
Sep. 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 | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income (loss) available to common shareholders | $ | (8,598 | ) | $ | 79 | $ | (4,822 | ) | $ | 52 | ||||||
Weighted average number of common shares - basic | 20,696,393 | 7,944,600 | 12,584,239 | 7,897,348 | ||||||||||||
Effect of dilutive stock options | — | — | — | — | ||||||||||||
Weighted average number of common shares - dilutive | 20,696,393 | 7,944,600 | 12,584,239 | 7,897,348 | ||||||||||||
Basic earnings per common share | $ | (0.42 | ) | $ | 0.01 | $ | (0.38 | ) | $ | 0.01 | ||||||
Diluted earnings per common share | $ | (0.42 | ) | $ | 0.01 | $ | (0.38 | ) | $ | 0.01 | ||||||
Anti-dilutive awards | 280,982 | 303,980 | 280,982 | 303,980 | ||||||||||||
For the three and nine month period ended September 30, 2014, there were 280,982 outstanding stock options that were anti-dilutive due to the losses incurred compared to 303,980 for the three and nine month period ended September 30, 2013. | ||||||||||||||||
During the third quarter of 2014, the Company raised approximately $22.2 million, net of fees and costs, through the Rights Offering and the Standby Offering. As a result of the offerings, approximately 24.0 million shares of common stock were issued. Consequently, the average weighted shares of common stock increased 12.8 million for the quarter ended September 30, 2014 compared to 7.9 million at September 30, 2013. |
INVESTMENT_SECURITIES
INVESTMENT SECURITIES | 9 Months Ended | |||||||||||||||||||||||||||||
Sep. 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 September 30, 2014 and December 31, 2013 are as follows (amounts in thousands): | ||||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||||
Securities Available-for-Sale: | Amortized | Gross | Gross | Fair | ||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||
Taxable municipal securities | $ | 10,844 | $ | 495 | $ | 32 | $ | 11,307 | ||||||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||||||||
GNMA | 6,355 | 78 | — | 6,433 | ||||||||||||||||||||||||||
Equity securities | 53 | 34 | — | 87 | ||||||||||||||||||||||||||
Total | $ | 17,252 | $ | 607 | $ | 32 | $ | 17,827 | ||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||||
Securities Held-to-Maturity: | Amortized | Gross | Gross | Fair | ||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||
Taxable municipal securities | $ | 3,597 | $ | — | $ | 43 | $ | 3,554 | ||||||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||||||||
GNMA | 78,429 | 565 | 508 | 78,486 | ||||||||||||||||||||||||||
FNMA | 3,747 | 31 | — | 3,778 | ||||||||||||||||||||||||||
Total | $ | 85,773 | $ | 596 | $ | 551 | $ | 85,818 | ||||||||||||||||||||||
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 September 30, 2014 and December 31, 2013 (amounts in thousands). | ||||||||||||||||||||||||||||||
30-Sep-14 | ||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||
# Securities | Fair | Unrealized | # Securities | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||
value | losses | value | losses | value | losses | |||||||||||||||||||||||||
Securities Available-for-Sale: | ||||||||||||||||||||||||||||||
Taxable municipal securities | 3 | $ | 3,175 | $ | 32 | — | $ | — | $ | — | $ | 3,175 | $ | 32 | ||||||||||||||||
Total temporarily impaired securities | 3 | $ | 3,175 | $ | 32 | — | $ | — | $ | — | $ | 3,175 | $ | 32 | ||||||||||||||||
September 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 | — | $ | — | $ | — | 7 | $ | 3,102 | $ | 43 | $ | 3,102 | $ | 43 | ||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||||||||
GNMA | 5 | 8,106 | 57 | 16 | 32,488 | 451 | 40,594 | 508 | ||||||||||||||||||||||
Total temporarily impaired securities | 5 | $ | 8,106 | $ | 57 | 23 | $ | 35,590 | $ | 494 | $ | 43,696 | $ | 551 | ||||||||||||||||
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 securities at September 30, 2014 resulted from changing market interest rates compared to the yields available at the time the underlying securities were purchased. As of September 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, 10 of 22 taxable municipal securities, and 0 of 7 equity securities that contained net unrealized losses. Management identified no impairment related to credit quality. For debt securities in an unrealized loss position, the Company does not intend to sell and it is not likely that the Company will be required to sell these securities before the anticipated recovery of the amortized cost basis. As a result, no other than temporary impairment losses were recognized during the three and nine months ended September 30, 2014. | ||||||||||||||||||||||||||||||
The amortized cost and fair value of available-for-sale and held-to-maturity securities at September 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. | ||||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||||
Securities Available-for-Sale: | Amortized Cost | Fair Value | ||||||||||||||||||||||||||||
Taxable municipal securities: | ||||||||||||||||||||||||||||||
Due after ten years | $ | 10,844 | $ | 11,307 | ||||||||||||||||||||||||||
Total taxable municipal securities | 10,844 | 11,307 | ||||||||||||||||||||||||||||
Mortgage-backed securities - GNMA/FNMA: | ||||||||||||||||||||||||||||||
Due after five years through ten years | 6,355 | 6,433 | ||||||||||||||||||||||||||||
Total mortgage-backed securities - GNMA/FNMA | 6,355 | 6,433 | ||||||||||||||||||||||||||||
Other securities: | ||||||||||||||||||||||||||||||
Equity securities | 53 | 87 | ||||||||||||||||||||||||||||
Total other securities | 53 | 87 | ||||||||||||||||||||||||||||
Total available-for-sale securities | $ | 17,252 | $ | 17,827 | ||||||||||||||||||||||||||
Securities Held-to-Maturity: | ||||||||||||||||||||||||||||||
Taxable municipal securities: | ||||||||||||||||||||||||||||||
Due after one year through five years | $ | 982 | $ | 976 | ||||||||||||||||||||||||||
Due after five years through ten years | 2,615 | 2,578 | ||||||||||||||||||||||||||||
Total taxable municipal securities | 3,597 | 3,554 | ||||||||||||||||||||||||||||
Mortgage-backed securities - GNMA/FNMA: | ||||||||||||||||||||||||||||||
Due after one year through five years | 50,365 | 50,628 | ||||||||||||||||||||||||||||
Due after five years through ten years | 24,088 | 23,987 | ||||||||||||||||||||||||||||
Due after ten years | 7,723 | 7,649 | ||||||||||||||||||||||||||||
Total mortgage-backed securities - GNMA/FNMA | 82,176 | 82,264 | ||||||||||||||||||||||||||||
Total held-to-maturity securities | $ | 85,773 | $ | 85,818 | ||||||||||||||||||||||||||
Sales and calls of securities available-for-sale for the nine months ended September 30, 2014 and 2013 of $22.7 million and $20.9 million generated net realized gains of $265,000 and $462,000, respectively, and no net realized losses for either period. Sales and calls of securities available-for-sale for the three months ended September 30, 2014 and 2013 of $2.7 million and $8.0 million generated net realized gains of $51,000 and $92,000, respectively, and no net realized losses for either period. |
LOANS_AND_ALLOWANCE_FOR_LOAN_L
LOANS AND ALLOWANCE FOR LOAN LOSSES | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 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. | ||||||||||||||||||||||||||||||||
During the third quarter of 2014, the Company identified problem assets and began the disposition process under the asset resolution plan (the "Asset Resolution Plan"), required by that certain Securities Purchase Agreement with Kenneth R. Lehman dated March 24, 2014 and approved by Company management. Execution of these actions resulted in net charge-offs for the quarter of $9.6 million and a provision expense of $8.0 million. Additionally, the Company transferred $11.2 million of loans held for investment to loans held for sale in anticipation of near term loan sales as a result of the Asset Resolution Plan. These loans are not included in the tables within Note D however, additional details about these loans have been added to provide information on the credit quality of these assets. | ||||||||||||||||||||||||||||||||
The classification of loans as of September 30, 2014 and December 31, 2013 are summarized as follows (amounts in thousands): | ||||||||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||
Commercial and industrial | $ | 24,343 | $ | 25,858 | ||||||||||||||||||||||||||||
Commercial construction and land development | 53,009 | 66,253 | ||||||||||||||||||||||||||||||
Commercial real estate | 192,202 | 214,159 | ||||||||||||||||||||||||||||||
Residential construction | 31,161 | 28,697 | ||||||||||||||||||||||||||||||
Residential mortgage | 135,120 | 147,300 | ||||||||||||||||||||||||||||||
Consumer | 7,040 | 6,750 | ||||||||||||||||||||||||||||||
Consumer credit cards | 2,257 | 2,339 | ||||||||||||||||||||||||||||||
Business credit cards | 1,241 | 1,124 | ||||||||||||||||||||||||||||||
Other | 522 | 738 | ||||||||||||||||||||||||||||||
Gross loans | 446,895 | 493,218 | ||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||
Net deferred loan fees | (548 | ) | (506 | ) | ||||||||||||||||||||||||||||
Net loans before allowance | 446,347 | 492,712 | ||||||||||||||||||||||||||||||
Allowance for loan losses | (9,347 | ) | (11,590 | ) | ||||||||||||||||||||||||||||
Total net loans | $ | 437,000 | $ | 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 nine months ended September 30, 2014 and 2013 and as of and for the twelve months ended December 31, 2013 (amounts in thousands). These tables do not include loans classified as held for sale. | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
September 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 June 30, 2014 | $ | 389 | $ | 5,567 | $ | 2,241 | $ | 620 | $ | 1,945 | $ | 169 | $ | 15 | $ | 10,946 | ||||||||||||||||
Provision for loan losses | 135 | 2,282 | 2,139 | 23 | 3,407 | (32 | ) | — | 7,954 | |||||||||||||||||||||||
Loans charged-off | (436 | ) | (2,779 | ) | (2,529 | ) | — | (4,177 | ) | (25 | ) | — | (9,946 | ) | ||||||||||||||||||
Recoveries | 49 | 113 | 43 | — | 123 | 64 | 1 | 393 | ||||||||||||||||||||||||
Net recoveries (charge-offs) | (387 | ) | (2,666 | ) | (2,486 | ) | — | (4,054 | ) | 39 | 1 | (9,553 | ) | |||||||||||||||||||
Balance September 30, 2014 | $ | 137 | $ | 5,183 | $ | 1,894 | $ | 643 | $ | 1,298 | $ | 176 | $ | 16 | $ | 9,347 | ||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||||||||
September 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 | (53 | ) | 2,945 | 1,727 | 101 | 3,257 | 21 | (44 | ) | 7,954 | ||||||||||||||||||||||
Loans charged-off | (460 | ) | (3,096 | ) | (3,019 | ) | (171 | ) | (4,417 | ) | (114 | ) | — | (11,277 | ) | |||||||||||||||||
Recoveries | 163 | 297 | 205 | — | 312 | 81 | 22 | 1,080 | ||||||||||||||||||||||||
Net recoveries (charge-offs) | (297 | ) | (2,799 | ) | (2,814 | ) | (171 | ) | (4,105 | ) | (33 | ) | 22 | (10,197 | ) | |||||||||||||||||
Balance September 30, 2014 | $ | 137 | $ | 5,183 | $ | 1,894 | $ | 643 | $ | 1,298 | $ | 176 | $ | 16 | $ | 9,347 | ||||||||||||||||
Ending balance: individually evaluated for impairment | $ | — | $ | 528 | $ | 6 | $ | — | $ | — | $ | — | $ | — | $ | 534 | ||||||||||||||||
Ending balance: collectively evaluated for impairment (1) | $ | 137 | $ | 4,655 | $ | 1,888 | $ | 643 | $ | 1,298 | $ | 176 | $ | 16 | $ | 8,813 | ||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||
Balance September 30, 2014 | $ | 25,584 | $ | 53,009 | $ | 192,202 | $ | 31,161 | $ | 135,120 | $ | 9,297 | $ | 522 | $ | 446,895 | ||||||||||||||||
Less ending balance: individually evaluated for impairment | $ | — | $ | 5,504 | $ | 4,946 | $ | — | $ | 2,844 | $ | 8 | $ | — | $ | 13,302 | ||||||||||||||||
Ending balance: collectively | $ | 25,584 | $ | 47,505 | $ | 187,256 | $ | 31,161 | $ | 132,276 | $ | 9,289 | $ | 522 | $ | 433,593 | ||||||||||||||||
evaluated for impairment (1) | ||||||||||||||||||||||||||||||||
(1) There were no small dollar homogeneous loans collectively evaluated for impairment for the nine months ended September 30, 2014. | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
September 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 June 30, 2013 | $ | 969 | $ | 6,574 | $ | 2,763 | $ | 449 | $ | 3,013 | $ | 178 | $ | 92 | $ | 14,038 | ||||||||||||||||
Provision for loan losses | (263 | ) | 125 | 817 | 79 | (718 | ) | (11 | ) | (29 | ) | — | ||||||||||||||||||||
Loans charged-off | (207 | ) | (1,485 | ) | (503 | ) | — | (259 | ) | (52 | ) | — | (2,506 | ) | ||||||||||||||||||
Recoveries | 175 | 318 | 11 | — | 211 | 49 | — | 764 | ||||||||||||||||||||||||
Net recoveries (charge-offs) | (32 | ) | (1,167 | ) | (492 | ) | — | (48 | ) | (3 | ) | — | (1,742 | ) | ||||||||||||||||||
Balance September 30, 2013 | $ | 674 | $ | 5,532 | $ | 3,088 | $ | 528 | $ | 2,247 | $ | 164 | $ | 63 | $ | 12,296 | ||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||||||||
September 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 December 31, 2012 | $ | 1,185 | $ | 7,251 | $ | 2,961 | $ | 423 | $ | 4,471 | $ | 188 | $ | 70 | $ | 16,549 | ||||||||||||||||
Provision for loan losses | (670 | ) | 1,128 | 836 | 243 | (1,553 | ) | 58 | (7 | ) | 35 | |||||||||||||||||||||
Loans charged-off | (267 | ) | (3,343 | ) | (1,728 | ) | (138 | ) | (1,164 | ) | (216 | ) | — | (6,856 | ) | |||||||||||||||||
Recoveries | 426 | 496 | 1,019 | — | 493 | 134 | — | 2,568 | ||||||||||||||||||||||||
Net recoveries (charge-offs) | 159 | (2,847 | ) | (709 | ) | (138 | ) | (671 | ) | (82 | ) | — | (4,288 | ) | ||||||||||||||||||
Balance September 30, 2013 | $ | 674 | $ | 5,532 | $ | 3,088 | $ | 528 | $ | 2,247 | $ | 164 | $ | 63 | $ | 12,296 | ||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 212 | $ | 667 | $ | 688 | $ | — | $ | 234 | $ | — | $ | — | $ | 1,801 | ||||||||||||||||
Ending balance: collectively | $ | 462 | $ | 4,865 | $ | 2,400 | $ | 528 | $ | 2,013 | $ | 164 | $ | 63 | $ | 10,495 | ||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||
Balance September 30, 2013 | $ | 27,286 | $ | 70,227 | $ | 197,858 | $ | 27,144 | $ | 163,890 | $ | 8,928 | $ | 1,085 | $ | 496,418 | ||||||||||||||||
Less ending balance: individually evaluated for impairment | $ | 936 | $ | 14,328 | $ | 13,519 | $ | 695 | $ | 14,124 | $ | 19 | $ | — | $ | 43,621 | ||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 26,350 | $ | 55,899 | $ | 184,339 | $ | 26,449 | $ | 149,766 | $ | 8,909 | $ | 1,085 | $ | 452,797 | ||||||||||||||||
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: | ||||||||||||||||||||||||||||||||
Balance December 31, 2013 | $ | 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 late 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 September 30, 2014 and December 31, 2013 (amounts in thousands). | ||||||||||||||||||||||||||||||||
September 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 | $ | 1,947 | $ | — | $ | — | $ | — | $ | — | $ | 1,728 | $ | 7 | $ | 3,682 | ||||||||||||||||
2 - Satisfactory Quality | 923 | 660 | 2,493 | — | 14,627 | 341 | 20 | 19,064 | ||||||||||||||||||||||||
3 - Satisfactory-Merits Attention | 9,797 | 11,346 | 73,207 | 2,857 | 50,722 | 3,373 | 223 | 151,525 | ||||||||||||||||||||||||
4 - Low Satisfactory | 11,462 | 34,924 | 109,658 | 28,171 | 57,401 | 1,022 | 153 | 242,791 | ||||||||||||||||||||||||
5 - Special mention | 214 | 1,911 | 4,481 | — | 9,858 | 53 | 119 | 16,636 | ||||||||||||||||||||||||
6-8 - Substandard (1) | — | 4,168 | 2,363 | 133 | 2,512 | 523 | — | 9,699 | ||||||||||||||||||||||||
$ | 24,343 | $ | 53,009 | $ | 192,202 | $ | 31,161 | $ | 135,120 | $ | 7,040 | $ | 522 | $ | 443,397 | |||||||||||||||||
Consumer - | Business- | |||||||||||||||||||||||||||||||
Credit Card | Credit Card | |||||||||||||||||||||||||||||||
Performing | $ | 2,236 | $ | 1,241 | ||||||||||||||||||||||||||||
Non Performing | 21 | — | ||||||||||||||||||||||||||||||
Total | $ | 2,257 | $ | 1,241 | ||||||||||||||||||||||||||||
Total Loans | $ | 446,895 | ||||||||||||||||||||||||||||||
(1) The above tables include loans held for investment only. As of September 30, 2014 there were $11.2 million in risk grade 6 loans classified as loans held for sale. | ||||||||||||||||||||||||||||||||
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 September 30, 2014 and December 31, 2013 (amounts in thousands). | ||||||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||||||
30-89 Days | Nonaccrual(1) | Greater than 90 Days Past Due | Total Past | Current | Total | |||||||||||||||||||||||||||
Past Due (1) | Due (1) | Loans | ||||||||||||||||||||||||||||||
Commercial & industrial | $ | 192 | $ | — | $ | — | $ | 192 | $ | 24,151 | $ | 24,343 | ||||||||||||||||||||
Commercial construction and land development | 72 | 3,989 | — | 4,061 | 48,948 | 53,009 | ||||||||||||||||||||||||||
Commercial real estate | — | 1,852 | — | 1,852 | 190,350 | 192,202 | ||||||||||||||||||||||||||
Residential construction | — | — | — | — | 31,161 | 31,161 | ||||||||||||||||||||||||||
Residential mortgage | 242 | 1,439 | — | 1,681 | 133,439 | 135,120 | ||||||||||||||||||||||||||
Consumer | 74 | 500 | — | 574 | 6,466 | 7,040 | ||||||||||||||||||||||||||
Consumer credit cards | 60 | — | 21 | 81 | 2,176 | 2,257 | ||||||||||||||||||||||||||
Business credit cards | 40 | — | — | 40 | 1,201 | 1,241 | ||||||||||||||||||||||||||
Other loans | — | — | — | — | 522 | 522 | ||||||||||||||||||||||||||
Total | $ | 680 | $ | 7,780 | $ | 21 | $ | 8,481 | $ | 438,414 | $ | 446,895 | ||||||||||||||||||||
(1) The above table includes loans held for investment only. As of September 30, 2014 there were $10,000 in loans 30-89 past due and $8.2 million in loans on nonaccrual classified as loans held for sale. | ||||||||||||||||||||||||||||||||
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 September 30, 2014 and December 31, 2013 consist of the following (amounts in thousands): | ||||||||||||||||||||||||||||||||
September 30, 2014 | 31-Dec-13 | |||||||||||||||||||||||||||||||
Loans past due ninety days or more and still accruing | $ | 21 | $ | 23 | ||||||||||||||||||||||||||||
Nonaccrual loans | 7,780 | 27,227 | ||||||||||||||||||||||||||||||
Foreclosed assets | 4,724 | 8,502 | ||||||||||||||||||||||||||||||
Loans held for sale - nonperforming | 8,176 | — | ||||||||||||||||||||||||||||||
Total nonperforming assets | $ | 20,701 | $ | 35,752 | ||||||||||||||||||||||||||||
As of September 30, 2014 there were $8.2 million of loans held for sale that were in nonaccrual status and therefore considered nonperforming. | ||||||||||||||||||||||||||||||||
Impaired Loans | ||||||||||||||||||||||||||||||||
The following tables illustrate the impaired loans by loan class as of September 30, 2014 and December 31, 2013 (amounts in thousands). | ||||||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||||||
As of Date | Year to Date | |||||||||||||||||||||||||||||||
Impaired Loans: | Recorded | Unpaid | Related | Average | Interest | |||||||||||||||||||||||||||
Investment (1) | Principal | Allowance | Recorded | Income | ||||||||||||||||||||||||||||
Balance | Investment | Recognized | ||||||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||||||
Commercial construction and land development | $ | 4,260 | $ | 8,087 | $ | — | $ | 5,612 | $ | 43 | ||||||||||||||||||||||
Commercial real estate | 4,610 | 5,807 | — | 5,289 | 123 | |||||||||||||||||||||||||||
Residential mortgage | 2,844 | 3,510 | — | 3,139 | 49 | |||||||||||||||||||||||||||
Consumer | 8 | 8 | — | 8 | — | |||||||||||||||||||||||||||
Subtotal: | 11,722 | 17,412 | — | 14,048 | 215 | |||||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||||||
Commercial construction and land development | 1,244 | 1,926 | 528 | 1,259 | 35 | |||||||||||||||||||||||||||
Commercial real estate | 336 | 336 | 6 | 340 | 14 | |||||||||||||||||||||||||||
Subtotal: | 1,580 | 2,262 | 534 | 1,599 | 49 | |||||||||||||||||||||||||||
Totals: | ||||||||||||||||||||||||||||||||
Commercial | 10,450 | 16,156 | 534 | 12,500 | 215 | |||||||||||||||||||||||||||
Consumer | 8 | 8 | — | 8 | — | |||||||||||||||||||||||||||
Residential | 2,844 | 3,510 | — | 3,139 | 49 | |||||||||||||||||||||||||||
Grand Total | $ | 13,302 | $ | 19,674 | $ | 534 | $ | 15,647 | $ | 264 | ||||||||||||||||||||||
(1) The above tables include loans held for investment only. As of September 30, 2014 the recorded investment in impaired loans classified as held for sale totaled $10.9 million. There were no reserves recorded for these loans. | ||||||||||||||||||||||||||||||||
At September 30, 2014, the recorded investment in loans considered impaired totaled $13.3 million. Of the total investment in loans considered impaired, $1.6 million were found to show specific impairment for which a $534,000 valuation allowance was recorded; the remaining $11.7 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 additional impairment which would require a valuation allowance. At September 30, 2014, the average recorded investment in impaired loans was approximately $15.6 million. The amount of interest recognized on impaired loans during the portion of the year that they were considered impaired was approximately $264,000. | ||||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
As of Date | Year to Date | |||||||||||||||||||||||||||||||
Impaired Loans: | 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 September 30, 2014 and December 31, 2013 (amounts in thousands). | ||||||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||||||
Accrual | Nonaccrual | Total TDRs | Allowance for Loan Losses Allocated | |||||||||||||||||||||||||||||
Commercial construction and land development | $ | 1,349 | $ | 2,783 | $ | 4,132 | $ | 528 | ||||||||||||||||||||||||
Commercial real estate | 3,094 | 733 | 3,827 | 6 | ||||||||||||||||||||||||||||
Residential mortgage | 968 | 551 | 1,519 | — | ||||||||||||||||||||||||||||
Total modifications | $ | 5,411 | $ | 4,067 | $ | 9,478 | $ | 534 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
(1) The above table includes loans held for investment only. At September 30, 2014 there were $1.7 million in accruing TDRs and $2.0 million in TDRs in nonaccrual and classified as held for sale. | ||||||||||||||||||||||||||||||||
There were no new TDRs made to borrowers for the three or nine months ended September 30, 2014 that remain in loans held for investment. Additionally, there were no TDR loans modified during the previous twelve months that had a payment default for the three and nine months ended September 30, 2014. |
SUBORDINATED_DEBT
SUBORDINATED DEBT | 9 Months Ended |
Sep. 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 third quarter of 2014. The Company exercised its right to defer regularly scheduled interest payments on its outstanding TPS and as of September 30, 2014, $849,000 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 | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
COMMITMENTS AND CONTINGENCIES | ' | |||
COMMITMENTS AND CONTINGENCIES | ||||
Commitments | ||||
The following table presents loan commitments at September 30, 2014 (amounts in thousands). | ||||
September 30, 2014 | ||||
Commitments to extend credit | $ | 4,696 | ||
Undisbursed lines of credit | 76,548 | |||
Financial stand-by letters of credit | 230 | |||
Performance stand-by letters of credit | 764 | |||
Legally binding commitments | 82,238 | |||
Unused credit card lines | 12,287 | |||
Total | $ | 94,525 | ||
Pledged Assets | ||||
Certain assets are pledged to secure municipal deposits, borrowings, and borrowing capacity, subject to certain limits, at the Federal Home Loan Bank (the "FHLB") and the Federal Reserve Bank of Richmond (the "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 September 30, 2014 (amounts in thousands). | ||||
September 30, 2014 | ||||
Cash | $ | 22,200 | ||
Securities | 103,559 | |||
Loans | 50,705 | |||
Legal Proceedings | ||||
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 lawsuit in the Northern District of Georgia was voluntarily dismissed by the plaintiff prior to a ruling on the Bank's motion to dismiss. The lawsuit in the Southern District of Florida has been stayed pending arbitration of the plaintiff's claims against the Bank's co-defendants. | ||||
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 | 9 Months Ended | |||||||||||||||||||
Sep. 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 September 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 September 30, 2014, there were no Level 3 securities. | ||||||||||||||||||||
The following table presents information about assets measured at fair value on a recurring basis at September 30, 2014 and December 31, 2013 (amounts in thousands). | ||||||||||||||||||||
Fair Value Measurements at | ||||||||||||||||||||
September 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: | 9/30/14 | 9/30/14 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Taxable municipal securities | $ | 11,307 | $ | 11,307 | $ | — | $ | 11,307 | $ | — | ||||||||||
Mortgage-backed securities - GNMA | 6,433 | 6,433 | — | 6,433 | — | |||||||||||||||
Equity securities | 87 | 87 | 87 | — | — | |||||||||||||||
Total available-for-sale securities | $ | 17,827 | $ | 17,827 | $ | 87 | $ | 17,740 | $ | — | ||||||||||
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 nine months ended September 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 | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
Securities Available-for-Sale: | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Beginning Balance | $ | — | $ | 1,019 | $ | 1,025 | $ | 1,006 | ||||||||||||
Total realized and unrealized gains or (losses): | ||||||||||||||||||||
Included in earnings | 175 | — | 250 | — | ||||||||||||||||
Included in other comprehensive income (loss) | — | 6 | 150 | 19 | ||||||||||||||||
Purchases, issuances and settlements | (175 | ) | — | (1,425 | ) | — | ||||||||||||||
Transfers in (out) of Level 3 | — | — | — | — | ||||||||||||||||
Ending Balance | $ | — | $ | 1,025 | $ | — | $ | 1,025 | ||||||||||||
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. | ||||||||||||||||||||
At September 30, 2014 the Company had $12.2 million in loans held for sale which included residential mortgage loans held for sale in the secondary market and $11.2 million in other loans held for sale that were transferred from loans held for investment during the third quarter of 2014. These loans were transferred to held for sale and are being carried at fair value in anticipation of near term loan sales resulting from the Asset Resolution Plan. There were no loans held for sale as of December 31, 2013. | ||||||||||||||||||||
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 there is no observable market prices, an appraised value is not available, or the Company determines the fair value of the collateral is further impaired below the appraised value, the impaired loan is classified as nonrecurring Level 3. | ||||||||||||||||||||
As of September 30, 2014, the Company identified $9.0 million in impaired loans that were carried at fair value which included $1.6 million in loans that required a specific valuation allowance of $534,000 and an additional $7.9 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. 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 nine month period ended September 30, 2014, the Company recognized approximately $1.7 million in valuation reductions on foreclosed assets and the carrying value of foreclosed assets was $4.7 million at September 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 September 30, 2014 and December 31, 2013 (amounts in thousands). | ||||||||||||||||||||
Fair Value Measurements at | ||||||||||||||||||||
September 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 | ||||||||||||||||||||
9/30/14 | 9/30/14 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||
Loans held for sale | $ | 12,237 | $ | 12,237 | $ | — | $ | 12,237 | $ | — | ||||||||||
Impaired loans | 8,987 | 8,987 | — | — | 8,987 | |||||||||||||||
Foreclosed assets | 4,724 | 4,724 | — | — | 4,724 | |||||||||||||||
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 nonrecurring basis at September 30, 2014 (amounts in thousands, except percentages): | ||||||||||||||||||||
Total Carrying Amount at September 30, 2014 | Valuation Methodology | Range of Inputs | ||||||||||||||||||
Nonrecurring measurements: | ||||||||||||||||||||
Impaired loans | $ | 8,987 | Collateral discounts | 9 - 50% | ||||||||||||||||
Foreclosed assets | $ | 4,724 | 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 loans held for sale is based on what secondary markets are currently offering for portfolios 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 September 30, 2014 and December 31, 2013 (amounts in thousands). | ||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
Carrying | Estimated | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Value | Fair Value | |||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 211,330 | $ | 211,330 | $ | 211,330 | $ | — | $ | — | ||||||||||
CDs held for investment | 29,645 | 29,645 | — | 29,645 | — | |||||||||||||||
Securities available-for-sale | 17,827 | 17,827 | 87 | 17,740 | — | |||||||||||||||
Securities held-to-maturity | 85,773 | 85,818 | — | 85,818 | — | |||||||||||||||
Loans held for sale | 12,237 | 12,237 | — | 12,237 | — | |||||||||||||||
Loans, net | 437,000 | 416,404 | — | — | 416,404 | |||||||||||||||
FHLB stock | 5,553 | 5,553 | — | 5,553 | — | |||||||||||||||
Accrued interest receivable | 1,486 | 1,486 | — | 1,486 | — | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | $ | 661,812 | $ | 663,525 | $ | — | $ | 663,525 | $ | — | ||||||||||
Subordinated debentures and subordinated promissory notes | 24,372 | 24,372 | — | — | 24,372 | |||||||||||||||
Borrowings | 107,000 | 114,334 | — | 114,334 | — | |||||||||||||||
Accrued interest payable | 1,747 | 1,747 | — | 1,747 | — | |||||||||||||||
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 | 9 Months Ended | ||||||||||||||||||||
Sep. 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 nine months ended September 30, 2014. | |||||||||||||||||||||
Current federal regulations require that the Bank maintain a minimum ratio of total capital to risk weighted assets of 8.0%, with at least 4.0% being in the form of Tier 1 capital, as defined in the regulations. In addition, the Bank must maintain a leverage ratio of 4.0%. 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 September 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 September 30, 2014: | |||||||||||||||||||||
Total Capital (to Risk Weighted Assets) | $ | 65,331 | 15 | % | $ | 34,880 | 8 | % | $ | 43,600 | 10 | % | |||||||||
Tier I Capital (to Risk Weighted Assets) | 59,833 | 13.7 | % | 17,440 | 4 | % | 26,160 | 6 | % | ||||||||||||
Tier I Capital (to Average Assets) | 59,833 | 7.1 | % | 33,526 | 4 | % | 41,908 | 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 September 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 15.9%, 11.8%, and 6.2%, and 10.7%, 6.3%, and 3.6%, respectively. | |||||||||||||||||||||
In late May 2011, the Company and the Bank entered into a formal written agreement (the "Written Agreement") with the 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. 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. On August 15, 2014, the Company closed the Rights Offering and concurrent Standby Offering (each as defined in Note I) resulting in the issuance of 24,000,000 shares of Common Stock and proceeds received of $22.2 million, net of fees and costs. The Bank is in full compliance with 19 of the 20 provisions contained in the Written Agreement and continues to address the remaining item that is in partial compliance. | |||||||||||||||||||||
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. | ||||||||||||||||||||
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. To date, the Company has not received any disagreement from the regulatory authorities regarding actions taken or contemplated. |
SECURITIES_PURCHASE_AGREEMENT
SECURITIES PURCHASE AGREEMENT | 9 Months Ended |
Sep. 30, 2014 | |
Equity [Abstract] | ' |
SECURITIES PURCHASE AGREEMENT | ' |
SECURITIES PURCHASE AGREEMENT | |
On March 24, 2014, the Company entered into the Securities Purchase Agreement with Kenneth R. Lehman, a private investor (the “Standby Investor”). Pursuant to the Securities Purchase Agreement, the Standby Investor 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 and on August 15, 2014, a subsequent closing of the remaining number of shares based on the formula above and the Standby Investor’s decision to exercise his right of first refusal occurred, contemporaneous with the completion of the Rights Offering (as defined below), at which the Standby Investor purchased an additional 12,500,000 shares (not including shares purchased from 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 was 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. At the closing of the Standby Offering, the Company entered into a registration rights agreement with the Standby Investor (the “Registration Rights Agreement”), which provides 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 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 (the "Oversubscription Privilege"), subject to certain limitations. | |
The subscription period of the Rights Offering expired at 5:00 p.m., Eastern Time, on July 31, 2014 and the Rights Offering closed on August 15, 2014. In connection with the closing of the Rights Offering, the Company issued 9,248,464 shares to holders upon exercise of their Basic Subscription Privilege (including 2,625,000 shares issued to the Standby Investor) and 1,376,536 shares were issued to holders upon exercise of their Oversubscription Privilege. In the Rights Offering and Standby Offer combined, the Company issued an aggregate of 24,000,000 shares of Common Stock at $1.00 per share for aggregate gross proceeds of $24.0 million. |
EMPLOYEE_STOCK_OWNERSHIP_PLAN
EMPLOYEE STOCK OWNERSHIP PLAN | 9 Months Ended |
Sep. 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) | 9 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This update requires management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date the financial statements are issued. Substantial doubt about an entity’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that an entity will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued. If the substantial doubt is alleviated as a result of consideration of management’s plans, the entity should disclose information that enables financial statement users to understand the principal conditions or events that raised substantial doubt, management’s evaluation of the conditions and management’s plans to alleviate the substantial doubt. If substantial doubt exists about an entity’s ability to continue as a going concern, and the substantial doubt is not alleviated after consideration of management’s plans, an entity should include a statement in the footnotes indicating that there is substantial doubt about the entity’s ability to continue as a going concern. The amendments in this update become effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. The Company does not believe the adoption of this update will have a material impact of the Company’s consolidated financial statements. | |
In August 2014, the FASB issued ASU No. 2014-14, Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40), Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure. This update addresses classification of government-guaranteed mortgage loans, including those where guarantees are offered by the Federal Housing Administration (“FHA”), the U.S. Department of Housing and Urban Development (“HUD”), and the U.S. Department of Veterans Affairs (“VA”). Although current accounting guidance stipulates proper measurement and classification in situations where a creditor obtains from a debtor, assets in satisfaction of a receivable (such as through foreclosure), current guidance does not specify how to measure and classify foreclosed mortgage loans that are government-guaranteed. Under the provisions of this update, a creditor would derecognize a mortgage loan that has been foreclosed upon, and recognize a separate receivable if the following conditions are met: (1) The loan has a government guarantee that is not separable from the loan before foreclosure, (2) At the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim, and (3) At the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. The amendments within this update are effective for annual and interim periods beginning after December 15, 2014. The Company does not believe the adoption of this update will have a material impact of the Company’s consolidated financial statements. | |
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. The Company does not expect the adoption of this guidance to have a material impact on the Company's financial statements. | |
In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This update seeks to eliminate the diversity in practice in the presentation of unrecognized tax benefits by providing explicit guidance on the financial statement presentation of an unrecognized tax benefit with a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This amendment is effective for annual and interim periods beginning after December 15, 2013. The adoption of the new guidance did not have a material impact on the Company's consolidated financial statements. | |
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) | 9 Months Ended | |||||||||||||||
Sep. 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 | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income (loss) available to common shareholders | $ | (8,598 | ) | $ | 79 | $ | (4,822 | ) | $ | 52 | ||||||
Weighted average number of common shares - basic | 20,696,393 | 7,944,600 | 12,584,239 | 7,897,348 | ||||||||||||
Effect of dilutive stock options | — | — | — | — | ||||||||||||
Weighted average number of common shares - dilutive | 20,696,393 | 7,944,600 | 12,584,239 | 7,897,348 | ||||||||||||
Basic earnings per common share | $ | (0.42 | ) | $ | 0.01 | $ | (0.38 | ) | $ | 0.01 | ||||||
Diluted earnings per common share | $ | (0.42 | ) | $ | 0.01 | $ | (0.38 | ) | $ | 0.01 | ||||||
Anti-dilutive awards | 280,982 | 303,980 | 280,982 | 303,980 | ||||||||||||
INVESTMENT_SECURITIES_Tables
INVESTMENT SECURITIES (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||
Sep. 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 | ' | |||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||||
Securities Available-for-Sale: | Amortized | Gross | Gross | Fair | ||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||
Taxable municipal securities | $ | 10,844 | $ | 495 | $ | 32 | $ | 11,307 | ||||||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||||||||
GNMA | 6,355 | 78 | — | 6,433 | ||||||||||||||||||||||||||
Equity securities | 53 | 34 | — | 87 | ||||||||||||||||||||||||||
Total | $ | 17,252 | $ | 607 | $ | 32 | $ | 17,827 | ||||||||||||||||||||||
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 | ||||||||||||||||||||||
Schedule of Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses, and Fair Values of Securities Held to Maturity | ' | |||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||||
Securities Held-to-Maturity: | Amortized | Gross | Gross | Fair | ||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||
Taxable municipal securities | $ | 3,597 | $ | — | $ | 43 | $ | 3,554 | ||||||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||||||||
GNMA | 78,429 | 565 | 508 | 78,486 | ||||||||||||||||||||||||||
FNMA | 3,747 | 31 | — | 3,778 | ||||||||||||||||||||||||||
Total | $ | 85,773 | $ | 596 | $ | 551 | $ | 85,818 | ||||||||||||||||||||||
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 September 30, 2014 and December 31, 2013 (amounts in thousands). | ||||||||||||||||||||||||||||||
30-Sep-14 | ||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||
# Securities | Fair | Unrealized | # Securities | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||
value | losses | value | losses | value | losses | |||||||||||||||||||||||||
Securities Available-for-Sale: | ||||||||||||||||||||||||||||||
Taxable municipal securities | 3 | $ | 3,175 | $ | 32 | — | $ | — | $ | — | $ | 3,175 | $ | 32 | ||||||||||||||||
Total temporarily impaired securities | 3 | $ | 3,175 | $ | 32 | — | $ | — | $ | — | $ | 3,175 | $ | 32 | ||||||||||||||||
September 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 | — | $ | — | $ | — | 7 | $ | 3,102 | $ | 43 | $ | 3,102 | $ | 43 | ||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||||||||
GNMA | 5 | 8,106 | 57 | 16 | 32,488 | 451 | 40,594 | 508 | ||||||||||||||||||||||
Total temporarily impaired securities | 5 | $ | 8,106 | $ | 57 | 23 | $ | 35,590 | $ | 494 | $ | 43,696 | $ | 551 | ||||||||||||||||
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 September 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. | ||||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||||
Securities Available-for-Sale: | Amortized Cost | Fair Value | ||||||||||||||||||||||||||||
Taxable municipal securities: | ||||||||||||||||||||||||||||||
Due after ten years | $ | 10,844 | $ | 11,307 | ||||||||||||||||||||||||||
Total taxable municipal securities | 10,844 | 11,307 | ||||||||||||||||||||||||||||
Mortgage-backed securities - GNMA/FNMA: | ||||||||||||||||||||||||||||||
Due after five years through ten years | 6,355 | 6,433 | ||||||||||||||||||||||||||||
Total mortgage-backed securities - GNMA/FNMA | 6,355 | 6,433 | ||||||||||||||||||||||||||||
Other securities: | ||||||||||||||||||||||||||||||
Equity securities | 53 | 87 | ||||||||||||||||||||||||||||
Total other securities | 53 | 87 | ||||||||||||||||||||||||||||
Total available-for-sale securities | $ | 17,252 | $ | 17,827 | ||||||||||||||||||||||||||
Securities Held-to-Maturity: | ||||||||||||||||||||||||||||||
Taxable municipal securities: | ||||||||||||||||||||||||||||||
Due after one year through five years | $ | 982 | $ | 976 | ||||||||||||||||||||||||||
Due after five years through ten years | 2,615 | 2,578 | ||||||||||||||||||||||||||||
Total taxable municipal securities | 3,597 | 3,554 | ||||||||||||||||||||||||||||
Mortgage-backed securities - GNMA/FNMA: | ||||||||||||||||||||||||||||||
Due after one year through five years | 50,365 | 50,628 | ||||||||||||||||||||||||||||
Due after five years through ten years | 24,088 | 23,987 | ||||||||||||||||||||||||||||
Due after ten years | 7,723 | 7,649 | ||||||||||||||||||||||||||||
Total mortgage-backed securities - GNMA/FNMA | 82,176 | 82,264 | ||||||||||||||||||||||||||||
Total held-to-maturity securities | $ | 85,773 | $ | 85,818 | ||||||||||||||||||||||||||
LOANS_AND_ALLOWANCE_FOR_LOAN_L1
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||||
Loans and Leases Receivable Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||
Summary of Loans Outstanding | ' | |||||||||||||||||||||||||||||||
The classification of loans as of September 30, 2014 and December 31, 2013 are summarized as follows (amounts in thousands): | ||||||||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||
Commercial and industrial | $ | 24,343 | $ | 25,858 | ||||||||||||||||||||||||||||
Commercial construction and land development | 53,009 | 66,253 | ||||||||||||||||||||||||||||||
Commercial real estate | 192,202 | 214,159 | ||||||||||||||||||||||||||||||
Residential construction | 31,161 | 28,697 | ||||||||||||||||||||||||||||||
Residential mortgage | 135,120 | 147,300 | ||||||||||||||||||||||||||||||
Consumer | 7,040 | 6,750 | ||||||||||||||||||||||||||||||
Consumer credit cards | 2,257 | 2,339 | ||||||||||||||||||||||||||||||
Business credit cards | 1,241 | 1,124 | ||||||||||||||||||||||||||||||
Other | 522 | 738 | ||||||||||||||||||||||||||||||
Gross loans | 446,895 | 493,218 | ||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||
Net deferred loan fees | (548 | ) | (506 | ) | ||||||||||||||||||||||||||||
Net loans before allowance | 446,347 | 492,712 | ||||||||||||||||||||||||||||||
Allowance for loan losses | (9,347 | ) | (11,590 | ) | ||||||||||||||||||||||||||||
Total net loans | $ | 437,000 | $ | 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 nine months ended September 30, 2014 and 2013 and as of and for the twelve months ended December 31, 2013 (amounts in thousands). These tables do not include loans classified as held for sale. | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
September 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 June 30, 2014 | $ | 389 | $ | 5,567 | $ | 2,241 | $ | 620 | $ | 1,945 | $ | 169 | $ | 15 | $ | 10,946 | ||||||||||||||||
Provision for loan losses | 135 | 2,282 | 2,139 | 23 | 3,407 | (32 | ) | — | 7,954 | |||||||||||||||||||||||
Loans charged-off | (436 | ) | (2,779 | ) | (2,529 | ) | — | (4,177 | ) | (25 | ) | — | (9,946 | ) | ||||||||||||||||||
Recoveries | 49 | 113 | 43 | — | 123 | 64 | 1 | 393 | ||||||||||||||||||||||||
Net recoveries (charge-offs) | (387 | ) | (2,666 | ) | (2,486 | ) | — | (4,054 | ) | 39 | 1 | (9,553 | ) | |||||||||||||||||||
Balance September 30, 2014 | $ | 137 | $ | 5,183 | $ | 1,894 | $ | 643 | $ | 1,298 | $ | 176 | $ | 16 | $ | 9,347 | ||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||||||||
September 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 | (53 | ) | 2,945 | 1,727 | 101 | 3,257 | 21 | (44 | ) | 7,954 | ||||||||||||||||||||||
Loans charged-off | (460 | ) | (3,096 | ) | (3,019 | ) | (171 | ) | (4,417 | ) | (114 | ) | — | (11,277 | ) | |||||||||||||||||
Recoveries | 163 | 297 | 205 | — | 312 | 81 | 22 | 1,080 | ||||||||||||||||||||||||
Net recoveries (charge-offs) | (297 | ) | (2,799 | ) | (2,814 | ) | (171 | ) | (4,105 | ) | (33 | ) | 22 | (10,197 | ) | |||||||||||||||||
Balance September 30, 2014 | $ | 137 | $ | 5,183 | $ | 1,894 | $ | 643 | $ | 1,298 | $ | 176 | $ | 16 | $ | 9,347 | ||||||||||||||||
Ending balance: individually evaluated for impairment | $ | — | $ | 528 | $ | 6 | $ | — | $ | — | $ | — | $ | — | $ | 534 | ||||||||||||||||
Ending balance: collectively evaluated for impairment (1) | $ | 137 | $ | 4,655 | $ | 1,888 | $ | 643 | $ | 1,298 | $ | 176 | $ | 16 | $ | 8,813 | ||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||
Balance September 30, 2014 | $ | 25,584 | $ | 53,009 | $ | 192,202 | $ | 31,161 | $ | 135,120 | $ | 9,297 | $ | 522 | $ | 446,895 | ||||||||||||||||
Less ending balance: individually evaluated for impairment | $ | — | $ | 5,504 | $ | 4,946 | $ | — | $ | 2,844 | $ | 8 | $ | — | $ | 13,302 | ||||||||||||||||
Ending balance: collectively | $ | 25,584 | $ | 47,505 | $ | 187,256 | $ | 31,161 | $ | 132,276 | $ | 9,289 | $ | 522 | $ | 433,593 | ||||||||||||||||
evaluated for impairment (1) | ||||||||||||||||||||||||||||||||
(1) There were no small dollar homogeneous loans collectively evaluated for impairment for the nine months ended September 30, 2014. | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
September 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 June 30, 2013 | $ | 969 | $ | 6,574 | $ | 2,763 | $ | 449 | $ | 3,013 | $ | 178 | $ | 92 | $ | 14,038 | ||||||||||||||||
Provision for loan losses | (263 | ) | 125 | 817 | 79 | (718 | ) | (11 | ) | (29 | ) | — | ||||||||||||||||||||
Loans charged-off | (207 | ) | (1,485 | ) | (503 | ) | — | (259 | ) | (52 | ) | — | (2,506 | ) | ||||||||||||||||||
Recoveries | 175 | 318 | 11 | — | 211 | 49 | — | 764 | ||||||||||||||||||||||||
Net recoveries (charge-offs) | (32 | ) | (1,167 | ) | (492 | ) | — | (48 | ) | (3 | ) | — | (1,742 | ) | ||||||||||||||||||
Balance September 30, 2013 | $ | 674 | $ | 5,532 | $ | 3,088 | $ | 528 | $ | 2,247 | $ | 164 | $ | 63 | $ | 12,296 | ||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||||||||
September 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 December 31, 2012 | $ | 1,185 | $ | 7,251 | $ | 2,961 | $ | 423 | $ | 4,471 | $ | 188 | $ | 70 | $ | 16,549 | ||||||||||||||||
Provision for loan losses | (670 | ) | 1,128 | 836 | 243 | (1,553 | ) | 58 | (7 | ) | 35 | |||||||||||||||||||||
Loans charged-off | (267 | ) | (3,343 | ) | (1,728 | ) | (138 | ) | (1,164 | ) | (216 | ) | — | (6,856 | ) | |||||||||||||||||
Recoveries | 426 | 496 | 1,019 | — | 493 | 134 | — | 2,568 | ||||||||||||||||||||||||
Net recoveries (charge-offs) | 159 | (2,847 | ) | (709 | ) | (138 | ) | (671 | ) | (82 | ) | — | (4,288 | ) | ||||||||||||||||||
Balance September 30, 2013 | $ | 674 | $ | 5,532 | $ | 3,088 | $ | 528 | $ | 2,247 | $ | 164 | $ | 63 | $ | 12,296 | ||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 212 | $ | 667 | $ | 688 | $ | — | $ | 234 | $ | — | $ | — | $ | 1,801 | ||||||||||||||||
Ending balance: collectively | $ | 462 | $ | 4,865 | $ | 2,400 | $ | 528 | $ | 2,013 | $ | 164 | $ | 63 | $ | 10,495 | ||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||
Balance September 30, 2013 | $ | 27,286 | $ | 70,227 | $ | 197,858 | $ | 27,144 | $ | 163,890 | $ | 8,928 | $ | 1,085 | $ | 496,418 | ||||||||||||||||
Less ending balance: individually evaluated for impairment | $ | 936 | $ | 14,328 | $ | 13,519 | $ | 695 | $ | 14,124 | $ | 19 | $ | — | $ | 43,621 | ||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 26,350 | $ | 55,899 | $ | 184,339 | $ | 26,449 | $ | 149,766 | $ | 8,909 | $ | 1,085 | $ | 452,797 | ||||||||||||||||
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: | ||||||||||||||||||||||||||||||||
Balance December 31, 2013 | $ | 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 late 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 September 30, 2014 and December 31, 2013 (amounts in thousands). | ||||||||||||||||||||||||||||||||
September 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 | $ | 1,947 | $ | — | $ | — | $ | — | $ | — | $ | 1,728 | $ | 7 | $ | 3,682 | ||||||||||||||||
2 - Satisfactory Quality | 923 | 660 | 2,493 | — | 14,627 | 341 | 20 | 19,064 | ||||||||||||||||||||||||
3 - Satisfactory-Merits Attention | 9,797 | 11,346 | 73,207 | 2,857 | 50,722 | 3,373 | 223 | 151,525 | ||||||||||||||||||||||||
4 - Low Satisfactory | 11,462 | 34,924 | 109,658 | 28,171 | 57,401 | 1,022 | 153 | 242,791 | ||||||||||||||||||||||||
5 - Special mention | 214 | 1,911 | 4,481 | — | 9,858 | 53 | 119 | 16,636 | ||||||||||||||||||||||||
6-8 - Substandard (1) | — | 4,168 | 2,363 | 133 | 2,512 | 523 | — | 9,699 | ||||||||||||||||||||||||
$ | 24,343 | $ | 53,009 | $ | 192,202 | $ | 31,161 | $ | 135,120 | $ | 7,040 | $ | 522 | $ | 443,397 | |||||||||||||||||
Consumer - | Business- | |||||||||||||||||||||||||||||||
Credit Card | Credit Card | |||||||||||||||||||||||||||||||
Performing | $ | 2,236 | $ | 1,241 | ||||||||||||||||||||||||||||
Non Performing | 21 | — | ||||||||||||||||||||||||||||||
Total | $ | 2,257 | $ | 1,241 | ||||||||||||||||||||||||||||
Total Loans | $ | 446,895 | ||||||||||||||||||||||||||||||
(1) The above tables include loans held for investment only. As of September 30, 2014 there were $11.2 million in risk grade 6 loans classified as loans held for sale. | ||||||||||||||||||||||||||||||||
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 September 30, 2014 and December 31, 2013 (amounts in thousands). | ||||||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||||||
30-89 Days | Nonaccrual(1) | Greater than 90 Days Past Due | Total Past | Current | Total | |||||||||||||||||||||||||||
Past Due (1) | Due (1) | Loans | ||||||||||||||||||||||||||||||
Commercial & industrial | $ | 192 | $ | — | $ | — | $ | 192 | $ | 24,151 | $ | 24,343 | ||||||||||||||||||||
Commercial construction and land development | 72 | 3,989 | — | 4,061 | 48,948 | 53,009 | ||||||||||||||||||||||||||
Commercial real estate | — | 1,852 | — | 1,852 | 190,350 | 192,202 | ||||||||||||||||||||||||||
Residential construction | — | — | — | — | 31,161 | 31,161 | ||||||||||||||||||||||||||
Residential mortgage | 242 | 1,439 | — | 1,681 | 133,439 | 135,120 | ||||||||||||||||||||||||||
Consumer | 74 | 500 | — | 574 | 6,466 | 7,040 | ||||||||||||||||||||||||||
Consumer credit cards | 60 | — | 21 | 81 | 2,176 | 2,257 | ||||||||||||||||||||||||||
Business credit cards | 40 | — | — | 40 | 1,201 | 1,241 | ||||||||||||||||||||||||||
Other loans | — | — | — | — | 522 | 522 | ||||||||||||||||||||||||||
Total | $ | 680 | $ | 7,780 | $ | 21 | $ | 8,481 | $ | 438,414 | $ | 446,895 | ||||||||||||||||||||
(1) The above table includes loans held for investment only. As of September 30, 2014 there were $10,000 in loans 30-89 past due and $8.2 million in loans on nonaccrual classified as loans held for sale. | ||||||||||||||||||||||||||||||||
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 September 30, 2014 and December 31, 2013 consist of the following (amounts in thousands): | ||||||||||||||||||||||||||||||||
September 30, 2014 | 31-Dec-13 | |||||||||||||||||||||||||||||||
Loans past due ninety days or more and still accruing | $ | 21 | $ | 23 | ||||||||||||||||||||||||||||
Nonaccrual loans | 7,780 | 27,227 | ||||||||||||||||||||||||||||||
Foreclosed assets | 4,724 | 8,502 | ||||||||||||||||||||||||||||||
Loans held for sale - nonperforming | 8,176 | — | ||||||||||||||||||||||||||||||
Total nonperforming assets | $ | 20,701 | $ | 35,752 | ||||||||||||||||||||||||||||
Summary of Impaired Loans | ' | |||||||||||||||||||||||||||||||
The following tables illustrate the impaired loans by loan class as of September 30, 2014 and December 31, 2013 (amounts in thousands). | ||||||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||||||
As of Date | Year to Date | |||||||||||||||||||||||||||||||
Impaired Loans: | Recorded | Unpaid | Related | Average | Interest | |||||||||||||||||||||||||||
Investment (1) | Principal | Allowance | Recorded | Income | ||||||||||||||||||||||||||||
Balance | Investment | Recognized | ||||||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||||||
Commercial construction and land development | $ | 4,260 | $ | 8,087 | $ | — | $ | 5,612 | $ | 43 | ||||||||||||||||||||||
Commercial real estate | 4,610 | 5,807 | — | 5,289 | 123 | |||||||||||||||||||||||||||
Residential mortgage | 2,844 | 3,510 | — | 3,139 | 49 | |||||||||||||||||||||||||||
Consumer | 8 | 8 | — | 8 | — | |||||||||||||||||||||||||||
Subtotal: | 11,722 | 17,412 | — | 14,048 | 215 | |||||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||||||
Commercial construction and land development | 1,244 | 1,926 | 528 | 1,259 | 35 | |||||||||||||||||||||||||||
Commercial real estate | 336 | 336 | 6 | 340 | 14 | |||||||||||||||||||||||||||
Subtotal: | 1,580 | 2,262 | 534 | 1,599 | 49 | |||||||||||||||||||||||||||
Totals: | ||||||||||||||||||||||||||||||||
Commercial | 10,450 | 16,156 | 534 | 12,500 | 215 | |||||||||||||||||||||||||||
Consumer | 8 | 8 | — | 8 | — | |||||||||||||||||||||||||||
Residential | 2,844 | 3,510 | — | 3,139 | 49 | |||||||||||||||||||||||||||
Grand Total | $ | 13,302 | $ | 19,674 | $ | 534 | $ | 15,647 | $ | 264 | ||||||||||||||||||||||
(1) The above tables include loans held for investment only. As of September 30, 2014 the recorded investment in impaired loans classified as held for sale totaled $10.9 million. There were no reserves recorded for these loans. | ||||||||||||||||||||||||||||||||
At September 30, 2014, the recorded investment in loans considered impaired totaled $13.3 million. Of the total investment in loans considered impaired, $1.6 million were found to show specific impairment for which a $534,000 valuation allowance was recorded; the remaining $11.7 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 additional impairment which would require a valuation allowance. At September 30, 2014, the average recorded investment in impaired loans was approximately $15.6 million. The amount of interest recognized on impaired loans during the portion of the year that they were considered impaired was approximately $264,000. | ||||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
As of Date | Year to Date | |||||||||||||||||||||||||||||||
Impaired Loans: | 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 September 30, 2014 and December 31, 2013 (amounts in thousands). | ||||||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||||||
Accrual | Nonaccrual | Total TDRs | Allowance for Loan Losses Allocated | |||||||||||||||||||||||||||||
Commercial construction and land development | $ | 1,349 | $ | 2,783 | $ | 4,132 | $ | 528 | ||||||||||||||||||||||||
Commercial real estate | 3,094 | 733 | 3,827 | 6 | ||||||||||||||||||||||||||||
Residential mortgage | 968 | 551 | 1,519 | — | ||||||||||||||||||||||||||||
Total modifications | $ | 5,411 | $ | 4,067 | $ | 9,478 | $ | 534 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
(1) The above table includes loans held for investment only. At September 30, 2014 there were $1.7 million in accruing TDRs and $2.0 million in TDRs in nonaccrual and classified as held for sale. | ||||||||||||||||||||||||||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Schedule of Loan Commitments | ' | |||
The following table presents loan commitments at September 30, 2014 (amounts in thousands). | ||||
September 30, 2014 | ||||
Commitments to extend credit | $ | 4,696 | ||
Undisbursed lines of credit | 76,548 | |||
Financial stand-by letters of credit | 230 | |||
Performance stand-by letters of credit | 764 | |||
Legally binding commitments | 82,238 | |||
Unused credit card lines | 12,287 | |||
Total | $ | 94,525 | ||
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 September 30, 2014 (amounts in thousands). | ||||
September 30, 2014 | ||||
Cash | $ | 22,200 | ||
Securities | 103,559 | |||
Loans | 50,705 | |||
FAIR_VALUE_MEASUREMENT_Tables
FAIR VALUE MEASUREMENT (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 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 September 30, 2014 and December 31, 2013 (amounts in thousands). | ||||||||||||||||||||
Fair Value Measurements at | ||||||||||||||||||||
September 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: | 9/30/14 | 9/30/14 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Taxable municipal securities | $ | 11,307 | $ | 11,307 | $ | — | $ | 11,307 | $ | — | ||||||||||
Mortgage-backed securities - GNMA | 6,433 | 6,433 | — | 6,433 | — | |||||||||||||||
Equity securities | 87 | 87 | 87 | — | — | |||||||||||||||
Total available-for-sale securities | $ | 17,827 | $ | 17,827 | $ | 87 | $ | 17,740 | $ | — | ||||||||||
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 nine months ended September 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 | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
Securities Available-for-Sale: | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Beginning Balance | $ | — | $ | 1,019 | $ | 1,025 | $ | 1,006 | ||||||||||||
Total realized and unrealized gains or (losses): | ||||||||||||||||||||
Included in earnings | 175 | — | 250 | — | ||||||||||||||||
Included in other comprehensive income (loss) | — | 6 | 150 | 19 | ||||||||||||||||
Purchases, issuances and settlements | (175 | ) | — | (1,425 | ) | — | ||||||||||||||
Transfers in (out) of Level 3 | — | — | — | — | ||||||||||||||||
Ending Balance | $ | — | $ | 1,025 | $ | — | $ | 1,025 | ||||||||||||
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 September 30, 2014 and December 31, 2013 (amounts in thousands). | ||||||||||||||||||||
Fair Value Measurements at | ||||||||||||||||||||
September 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 | ||||||||||||||||||||
9/30/14 | 9/30/14 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||
Loans held for sale | $ | 12,237 | $ | 12,237 | $ | — | $ | 12,237 | $ | — | ||||||||||
Impaired loans | 8,987 | 8,987 | — | — | 8,987 | |||||||||||||||
Foreclosed assets | 4,724 | 4,724 | — | — | 4,724 | |||||||||||||||
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 nonrecurring basis at September 30, 2014 (amounts in thousands, except percentages): | ||||||||||||||||||||
Total Carrying Amount at September 30, 2014 | Valuation Methodology | Range of Inputs | ||||||||||||||||||
Nonrecurring measurements: | ||||||||||||||||||||
Impaired loans | $ | 8,987 | Collateral discounts | 9 - 50% | ||||||||||||||||
Foreclosed assets | $ | 4,724 | 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 September 30, 2014 and December 31, 2013 (amounts in thousands). | ||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
Carrying | Estimated | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Value | Fair Value | |||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 211,330 | $ | 211,330 | $ | 211,330 | $ | — | $ | — | ||||||||||
CDs held for investment | 29,645 | 29,645 | — | 29,645 | — | |||||||||||||||
Securities available-for-sale | 17,827 | 17,827 | 87 | 17,740 | — | |||||||||||||||
Securities held-to-maturity | 85,773 | 85,818 | — | 85,818 | — | |||||||||||||||
Loans held for sale | 12,237 | 12,237 | — | 12,237 | — | |||||||||||||||
Loans, net | 437,000 | 416,404 | — | — | 416,404 | |||||||||||||||
FHLB stock | 5,553 | 5,553 | — | 5,553 | — | |||||||||||||||
Accrued interest receivable | 1,486 | 1,486 | — | 1,486 | — | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | $ | 661,812 | $ | 663,525 | $ | — | $ | 663,525 | $ | — | ||||||||||
Subordinated debentures and subordinated promissory notes | 24,372 | 24,372 | — | — | 24,372 | |||||||||||||||
Borrowings | 107,000 | 114,334 | — | 114,334 | — | |||||||||||||||
Accrued interest payable | 1,747 | 1,747 | — | 1,747 | — | |||||||||||||||
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) | 9 Months Ended | ||||||||||||||||||||
Sep. 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 September 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 September 30, 2014: | |||||||||||||||||||||
Total Capital (to Risk Weighted Assets) | $ | 65,331 | 15 | % | $ | 34,880 | 8 | % | $ | 43,600 | 10 | % | |||||||||
Tier I Capital (to Risk Weighted Assets) | 59,833 | 13.7 | % | 17,440 | 4 | % | 26,160 | 6 | % | ||||||||||||
Tier I Capital (to Average Assets) | 59,833 | 7.1 | % | 33,526 | 4 | % | 41,908 | 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 $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Aug. 15, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' | ' |
Net income (loss) available to common shareholders | ' | ($8,598) | $79 | ($4,822) | $52 |
Weighted average number of common shares outstanding: | ' | ' | ' | ' | ' |
Weighted average number of common shares - basic | ' | 20,696,393 | 7,944,600 | 12,584,239 | 7,897,348 |
Effect of dilutive stock options (in shares) | ' | 0 | 0 | 0 | 0 |
Weighted average number of common shares - dilutive | ' | 20,696,393 | 7,944,600 | 12,584,239 | 7,897,348 |
Basic earnings per common share (in usd per share) | ' | ($0.42) | $0.01 | ($0.38) | $0.01 |
Diluted earnings per common share (in usd per share) | ' | ($0.42) | $0.01 | ($0.38) | $0.01 |
Amount raised net of fees and costs | $22,200 | ' | ' | $22,229 | $195 |
Issuance of common stock (in shares) | 24,000,000 | 24,000,000 | ' | ' | ' |
Increase in average weighted shares of common stock | ' | 12,800,000 | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ' |
Antidilutive awards (in shares) | ' | 280,982 | 303,980 | 280,982 | 303,980 |
Stock Options [Member] | ' | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ' |
Antidilutive awards (in shares) | ' | ' | ' | 280,982 | 303,980 |
INVESTMENT_SECURITIES_Securiti
INVESTMENT SECURITIES (Securities Available for Sale) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Amortized cost | $17,252 | $33,222 | |
Gross unrealized gains | 607 | 33 | |
Gross unrealized losses | 32 | 689 | |
Available for sale securities | 17,827 | 32,566 | [1] |
Temporarily Impaired Securities [Member] | ' | ' | |
Securities available for sale in continuous unrealized loss position: | ' | ' | |
Less Than 12 Months, No. of Securities | 3 | 14 | |
Less than 12 Months, Fair value | 3,175 | 31,410 | |
Less than 12 Months, Unrealized losses | 32 | 539 | |
12 Months or More, No. of Securities | 0 | 2 | |
12 Months or More, Fair value | 0 | 1,025 | |
12 Months or More, Unrealized losses | 0 | 150 | |
Total, Fair value | 3,175 | 32,435 | |
Total, Unrealized losses | 32 | 689 | |
Taxable Municipal Securities [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Amortized cost | 10,844 | 6,176 | |
Gross unrealized gains | 495 | 0 | |
Gross unrealized losses | 32 | 243 | |
Available for sale securities | 11,307 | 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 | 3 | 6 | |
Less than 12 Months, Fair value | 3,175 | 5,933 | |
Less than 12 Months, Unrealized losses | 32 | 243 | |
12 Months or More, No. of Securities | 0 | 0 | |
12 Months or More, Fair value | 0 | 0 | |
12 Months or More, Unrealized losses | 0 | 0 | |
Total, Fair value | 3,175 | 5,933 | |
Total, Unrealized losses | 32 | 243 | |
Mortgage-backed Securities GNMA [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Amortized cost | 6,355 | 25,773 | |
Gross unrealized gains | 78 | 0 | |
Gross unrealized losses | 0 | 296 | |
Available for sale securities | 6,433 | 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 | |
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 | |
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 | 34 | 33 | |
Gross unrealized losses | 0 | 0 | |
Available for sale securities | $87 | $131 | |
[1] | Derived from audited consolidated financial statements. |
INVESTMENT_SECURITIES_Securiti1
INVESTMENT SECURITIES (Securities Held to Maturity) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Schedule of Held-to-maturity Securities [Line Items] | ' | ' | |
Amortized cost | $85,773 | $98,013 | [1] |
Gross unrealized gains | 596 | 165 | |
Gross unrealized losses | 551 | 2,347 | |
Held to maturity securities, fair value | 85,818 | 95,831 | |
Temporarily Impaired Securities [Member] | ' | ' | |
Securities held to maturity in continuous unrealized loss position: | ' | ' | |
Less than 12 Months, No. of Securities | 5 | 50 | |
Less than 12 Months, Fair value | 8,106 | 82,073 | |
Less than 12 Months, Unrealized losses | 57 | 2,249 | |
12 Months or More, No. of Securities | 23 | 1 | |
12 Months or Morer, Fair value | 35,590 | 2,223 | |
12 Months or More, Unrealized losses | 494 | 98 | |
Total, Fair value | 43,696 | 84,296 | |
Total, Unrealized losses | 551 | 2,347 | |
Taxable Municipal Securities [Member] | ' | ' | |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' | |
Amortized cost | 3,597 | 3,635 | |
Gross unrealized gains | 0 | 3 | |
Gross unrealized losses | 43 | 157 | |
Held to maturity securities, fair value | 3,554 | 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 | |
Less than 12 Months, Fair value | 0 | 2,776 | |
Less than 12 Months, Unrealized losses | 0 | 157 | |
12 Months or More, No. of Securities | 7 | 0 | |
12 Months or Morer, Fair value | 3,102 | 0 | |
12 Months or More, Unrealized losses | 43 | 0 | |
Total, Fair value | 3,102 | 2,776 | |
Total, Unrealized losses | 43 | 157 | |
Mortgage-backed Securities GNMA [Member] | ' | ' | |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' | |
Amortized cost | 78,429 | 89,892 | |
Gross unrealized gains | 565 | 162 | |
Gross unrealized losses | 508 | 2,171 | |
Held to maturity securities, fair value | 78,486 | 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 | 5 | 39 | |
Less than 12 Months, Fair value | 8,106 | 74,830 | |
Less than 12 Months, Unrealized losses | 57 | 2,073 | |
12 Months or More, No. of Securities | 16 | 1 | |
12 Months or Morer, Fair value | 32,488 | 2,223 | |
12 Months or More, Unrealized losses | 451 | 98 | |
Total, Fair value | 40,594 | 77,053 | |
Total, Unrealized losses | 508 | 2,171 | |
Mortgage-backed securities FNMA [Member] | ' | ' | |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' | |
Amortized cost | 3,747 | 4,486 | |
Gross unrealized gains | 31 | 0 | |
Gross unrealized losses | 0 | 19 | |
Held to maturity securities, fair value | 3,778 | 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 | |
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 | 9 Months Ended | ||
Sep. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Gain (Loss) on Investments [Line Items] | ' | ' | ' | ' |
Transfer of AFS securities to HTM securities | ' | $76,500,000 | $0 | $76,487,000 |
Holding gains included in the transfer | ' | 346,000 | ' | ' |
Credit loss on other than temporarily impaired security | $0 | ' | $0 | ' |
Mortgage-backed Securities GNMA [Member] | ' | ' | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' | ' | ' |
Number of securities containing unrealized losses | 21 | ' | 21 | ' |
Number of securities held | 52 | ' | 52 | ' |
Mortgage-backed securities FNMA [Member] | ' | ' | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' | ' | ' |
Number of securities containing unrealized losses | 0 | ' | 0 | ' |
Number of securities held | 3 | ' | 3 | ' |
Taxable Municipal Securities [Member] | ' | ' | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' | ' | ' |
Number of securities containing unrealized losses | 10 | ' | 10 | ' |
Number of securities held | 22 | ' | 22 | ' |
Equity Securities [Member] | ' | ' | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' | ' | ' |
Number of securities containing unrealized losses | 0 | ' | 0 | ' |
Number of securities held | 7 | ' | 7 | ' |
INVESTMENT_SECURITIES_Investme
INVESTMENT SECURITIES (Investment Securities by Contractual Maturities) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Available-for-sale Securities, Debt Maturities: | ' | ' | |
Amortized cost | $17,252 | $33,222 | |
Available for sale securities, fair value | 17,827 | 32,566 | [1] |
Held-to-maturity Securities, Debt Maturities: | ' | ' | |
Held to maturity securities, amortized cost | 85,773 | ' | |
Held to maturity securities, fair value | 85,818 | 95,831 | |
Taxable Municipal Securities [Member] | ' | ' | |
Available-for-sale Securities, Debt Maturities: | ' | ' | |
Due after ten years, Amortized Cost | 10,844 | ' | |
Amortized cost | 10,844 | 6,176 | |
Due after ten years, Fair Value | 11,307 | ' | |
Available for sale securities, fair value | 11,307 | 5,933 | |
Held-to-maturity Securities, Debt Maturities: | ' | ' | |
Due after one year through five years. Amortized Cost | 982 | ' | |
Due after five years through ten years, Amortized Cost | 2,615 | ' | |
Held to maturity securities, amortized cost | 3,597 | ' | |
Due after one year through five years, Fair Value | 976 | ' | |
Due after five years through ten years, Fair Value | 2,578 | ' | |
Held to maturity securities, fair value | 3,554 | 3,481 | |
Mortgage-backed Securities GNMA and FNMA [Member] | ' | ' | |
Available-for-sale Securities, Debt Maturities: | ' | ' | |
Due after five years through ten years, Amortized Cost | 6,355 | ' | |
Amortized cost | 6,355 | ' | |
Due after five years through ten years, Fair Value | 6,433 | ' | |
Available for sale securities, fair value | 6,433 | ' | |
Held-to-maturity Securities, Debt Maturities: | ' | ' | |
Due after one year through five years. Amortized Cost | 50,365 | ' | |
Due after five years through ten years, Amortized Cost | 24,088 | ' | |
Due after ten years, Amortized Cost | 7,723 | ' | |
Held to maturity securities, amortized cost | 82,176 | ' | |
Due after one year through five years, Fair Value | 50,628 | ' | |
Due after five years through ten years, Fair Value | 23,987 | ' | |
Due after ten years, Fair Value | 7,649 | ' | |
Held to maturity securities, fair value | 82,264 | ' | |
Equity Securities [Member] | ' | ' | |
Available-for-sale Securities, Debt Maturities: | ' | ' | |
Amortized cost | 53 | 98 | |
Available for sale securities, fair value | 87 | 131 | |
Trusted Preferred Securities and Equity Securities [Member] | ' | ' | |
Available-for-sale Securities, Debt Maturities: | ' | ' | |
Amortized cost | 53 | ' | |
Available for sale securities, fair value | $87 | ' | |
[1] | Derived from audited consolidated financial statements. |
INVESTMENT_SECURITIES_Securiti3
INVESTMENT SECURITIES (Securities Pledged and Sold) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Investments, Debt and Equity Securities [Abstract] | ' | ' | ' | ' |
Proceeds from sales and calls of investment securities available-for-sale | $2,700,000 | $8,000,000 | $22,661,000 | $20,874,000 |
Net realized gains | 51,000 | 92,000 | 265,000 | 462,000 |
Net realized losses | 0 | 0 | 0 | 0 |
Credit loss on other than temporarily impaired security | $0 | ' | $0 | ' |
LOANS_AND_ALLOWANCE_FOR_LOAN_L2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Loans Outstanding) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | ||
Loans and Leases Receivable Disclosure [Abstract] | ' | ' | ' | ' | ' | |
Net charge-offs | ($9,600,000) | ' | ' | ' | ' | |
Provision expense | 7,954,000 | 0 | 7,954,000 | 35,000 | ' | |
Transfers of loans to loans held for sale | 11,200,000 | ' | 11,189,000 | 3,639,000 | ' | |
Commercial and industrial loans | 24,343,000 | ' | 24,343,000 | ' | 25,858,000 | |
Commercial construction and land development | 53,009,000 | ' | 53,009,000 | ' | 66,253,000 | |
Commercial real estate | 192,202,000 | ' | 192,202,000 | ' | 214,159,000 | |
Residential construction | 31,161,000 | ' | 31,161,000 | ' | 28,697,000 | |
Residential mortgage | 135,120,000 | ' | 135,120,000 | ' | 147,300,000 | |
Consumer | 7,040,000 | ' | 7,040,000 | ' | 6,750,000 | |
Consumer credit cards | 2,257,000 | ' | 2,257,000 | ' | 2,339,000 | |
Business credit cards | 1,241,000 | ' | 1,241,000 | ' | 1,124,000 | |
Other | 522,000 | ' | 522,000 | ' | 738,000 | |
Total loans | 446,895,000 | ' | 446,895,000 | ' | 493,218,000 | |
Net deferred loan fees | -548,000 | ' | -548,000 | ' | -506,000 | |
Net loans before allowance | 446,347,000 | ' | 446,347,000 | ' | 492,712,000 | [1] |
Allowance for loan losses | -9,347,000 | ' | -9,347,000 | ' | -11,590,000 | [1] |
Net loans | $437,000,000 | ' | $437,000,000 | ' | $481,122,000 | [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 | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | ||||
Allowance for loan losses: | ' | ' | ' | ' | ' | ' | |||
Balance, beginning of period | ' | ' | ' | $11,590,000 | [1] | ' | ' | ||
Provision for loan losses | 7,954,000 | 0 | ' | 7,954,000 | 35,000 | ' | |||
Net (charge-offs) recoveries | -9,600,000 | ' | ' | ' | ' | ' | |||
Balance, end of period | 9,347,000 | ' | ' | 9,347,000 | ' | ' | |||
Ending Balance, collectively evaluated for impairment | ' | ' | ' | ' | ' | 226,000 | |||
Financing Receivables: | ' | ' | ' | ' | ' | ' | |||
Total loans | 446,895,000 | ' | ' | 446,895,000 | ' | 493,218,000 | |||
Ending Balance, collectively evaluated for impairment | ' | ' | ' | ' | ' | 1,700,000 | |||
Commercial and Industrial [Member] | ' | ' | ' | ' | ' | ' | |||
Allowance for loan losses: | ' | ' | ' | ' | ' | ' | |||
Balance, beginning of period | 389,000 | ' | ' | 487,000 | 1,185,000 | 1,185,000 | |||
Provision for loan losses | 135,000 | ' | -263,000 | -53,000 | -670,000 | -801,000 | |||
Loans charged-off | -436,000 | ' | -207,000 | -460,000 | -267,000 | -411,000 | |||
Recoveries | 49,000 | ' | 175,000 | 163,000 | 426,000 | 514,000 | |||
Net (charge-offs) recoveries | -387,000 | ' | -32,000 | -297,000 | 159,000 | 103,000 | |||
Balance, end of period | 137,000 | 674,000 | 969,000 | 137,000 | 674,000 | 487,000 | |||
Ending Balance, individually evaluated for impairment | 0 | 212,000 | ' | 0 | 212,000 | 80,000 | |||
Ending Balance, collectively evaluated for impairment | 137,000 | [2] | 462,000 | ' | 137,000 | [2] | 462,000 | 407,000 | [3] |
Financing Receivables: | ' | ' | ' | ' | ' | ' | |||
Total loans | 25,584,000 | 27,286,000 | ' | 25,584,000 | 27,286,000 | 26,982,000 | |||
Less: ending Balance: individually evaluated for impairment | 0 | 936,000 | ' | 0 | 936,000 | 652,000 | |||
Ending Balance, collectively evaluated for impairment | 25,584,000 | [2] | 26,350,000 | ' | 25,584,000 | [2] | 26,350,000 | 26,330,000 | [3] |
Commercial Construction and Land Development [Member] | ' | ' | ' | ' | ' | ' | |||
Allowance for loan losses: | ' | ' | ' | ' | ' | ' | |||
Balance, beginning of period | 5,567,000 | ' | ' | 5,037,000 | 7,251,000 | 7,251,000 | |||
Provision for loan losses | 2,282,000 | ' | 125,000 | 2,945,000 | 1,128,000 | 958,000 | |||
Loans charged-off | -2,779,000 | ' | -1,485,000 | -3,096,000 | -3,343,000 | -3,759,000 | |||
Recoveries | 113,000 | ' | 318,000 | 297,000 | 496,000 | 587,000 | |||
Net (charge-offs) recoveries | -2,666,000 | ' | -1,167,000 | -2,799,000 | -2,847,000 | -3,172,000 | |||
Balance, end of period | 5,183,000 | 5,532,000 | 6,574,000 | 5,183,000 | 5,532,000 | 5,037,000 | |||
Ending Balance, individually evaluated for impairment | 528,000 | 667,000 | ' | 528,000 | 667,000 | 264,000 | |||
Ending Balance, collectively evaluated for impairment | 4,655,000 | [2] | 4,865,000 | ' | 4,655,000 | [2] | 4,865,000 | 4,773,000 | [3] |
Financing Receivables: | ' | ' | ' | ' | ' | ' | |||
Total loans | 53,009,000 | 70,227,000 | ' | 53,009,000 | 70,227,000 | 66,253,000 | |||
Less: ending Balance: individually evaluated for impairment | 5,504,000 | 14,328,000 | ' | 5,504,000 | 14,328,000 | 12,234,000 | |||
Ending Balance, collectively evaluated for impairment | 47,505,000 | [2] | 55,899,000 | ' | 47,505,000 | [2] | 55,899,000 | 54,019,000 | [3] |
Commercial Real Estate [Member] | ' | ' | ' | ' | ' | ' | |||
Allowance for loan losses: | ' | ' | ' | ' | ' | ' | |||
Balance, beginning of period | 2,241,000 | ' | ' | 2,981,000 | 2,961,000 | 2,961,000 | |||
Provision for loan losses | 2,139,000 | ' | 817,000 | 1,727,000 | 836,000 | 701,000 | |||
Loans charged-off | -2,529,000 | ' | -503,000 | -3,019,000 | -1,728,000 | -2,226,000 | |||
Recoveries | 43,000 | ' | 11,000 | 205,000 | 1,019,000 | 1,545,000 | |||
Net (charge-offs) recoveries | -2,486,000 | ' | -492,000 | -2,814,000 | -709,000 | -681,000 | |||
Balance, end of period | 1,894,000 | 3,088,000 | 2,763,000 | 1,894,000 | 3,088,000 | 2,981,000 | |||
Ending Balance, individually evaluated for impairment | 6,000 | 688,000 | ' | 6,000 | 688,000 | 887,000 | |||
Ending Balance, collectively evaluated for impairment | 1,888,000 | [2] | 2,400,000 | ' | 1,888,000 | [2] | 2,400,000 | 2,094,000 | [3] |
Financing Receivables: | ' | ' | ' | ' | ' | ' | |||
Total loans | 192,202,000 | 197,858,000 | ' | 192,202,000 | 197,858,000 | 214,159,000 | |||
Less: ending Balance: individually evaluated for impairment | 4,946,000 | 13,519,000 | ' | 4,946,000 | 13,519,000 | 12,345,000 | |||
Ending Balance, collectively evaluated for impairment | 187,256,000 | [2] | 184,339,000 | ' | 187,256,000 | [2] | 184,339,000 | 201,814,000 | [3] |
Residential Construction [Member] | ' | ' | ' | ' | ' | ' | |||
Allowance for loan losses: | ' | ' | ' | ' | ' | ' | |||
Balance, beginning of period | 620,000 | ' | ' | 713,000 | 423,000 | 423,000 | |||
Provision for loan losses | 23,000 | ' | 79,000 | 101,000 | 243,000 | 428,000 | |||
Loans charged-off | 0 | ' | 0 | -171,000 | -138,000 | -138,000 | |||
Recoveries | 0 | ' | 0 | 0 | 0 | 0 | |||
Net (charge-offs) recoveries | 0 | ' | 0 | -171,000 | -138,000 | -138,000 | |||
Balance, end of period | 643,000 | 528,000 | 449,000 | 643,000 | 528,000 | 713,000 | |||
Ending Balance, individually evaluated for impairment | 0 | 0 | ' | 0 | 0 | 137,000 | |||
Ending Balance, collectively evaluated for impairment | 643,000 | [2] | 528,000 | ' | 643,000 | [2] | 528,000 | 576,000 | [3] |
Financing Receivables: | ' | ' | ' | ' | ' | ' | |||
Total loans | 31,161,000 | 27,144,000 | ' | 31,161,000 | 27,144,000 | 28,697,000 | |||
Less: ending Balance: individually evaluated for impairment | 0 | 695,000 | ' | 0 | 695,000 | 1,181,000 | |||
Ending Balance, collectively evaluated for impairment | 31,161,000 | [2] | 26,449,000 | ' | 31,161,000 | [2] | 26,449,000 | 27,516,000 | [3] |
Residential Mortgage [Member] | ' | ' | ' | ' | ' | ' | |||
Allowance for loan losses: | ' | ' | ' | ' | ' | ' | |||
Balance, beginning of period | 1,945,000 | 3,013,000 | ' | 2,146,000 | 4,471,000 | 4,471,000 | |||
Provision for loan losses | 3,407,000 | -718,000 | ' | 3,257,000 | -1,553,000 | -1,332,000 | |||
Loans charged-off | -4,177,000 | ' | -259,000 | -4,417,000 | -1,164,000 | -1,553,000 | |||
Recoveries | 123,000 | ' | 211,000 | 312,000 | 493,000 | 560,000 | |||
Net (charge-offs) recoveries | -4,054,000 | ' | -48,000 | -4,105,000 | -671,000 | -993,000 | |||
Balance, end of period | 1,298,000 | 2,247,000 | 3,013,000 | 1,298,000 | 2,247,000 | 2,146,000 | |||
Ending Balance, individually evaluated for impairment | 0 | 234,000 | ' | 0 | 234,000 | 457,000 | |||
Ending Balance, collectively evaluated for impairment | 1,298,000 | [2] | 2,013,000 | ' | 1,298,000 | [2] | 2,013,000 | 1,689,000 | [3] |
Financing Receivables: | ' | ' | ' | ' | ' | ' | |||
Total loans | 135,120,000 | 163,890,000 | ' | 135,120,000 | 163,890,000 | 147,300,000 | |||
Less: ending Balance: individually evaluated for impairment | 2,844,000 | 14,124,000 | ' | 2,844,000 | 14,124,000 | 11,043,000 | |||
Ending Balance, collectively evaluated for impairment | 132,276,000 | [2] | 149,766,000 | ' | 132,276,000 | [2] | 149,766,000 | 136,257,000 | [3] |
Consumer [Member] | ' | ' | ' | ' | ' | ' | |||
Allowance for loan losses: | ' | ' | ' | ' | ' | ' | |||
Balance, beginning of period | 169,000 | ' | ' | 188,000 | 188,000 | 188,000 | |||
Provision for loan losses | -32,000 | ' | -11,000 | 21,000 | 58,000 | 117,000 | |||
Loans charged-off | -25,000 | ' | -52,000 | -114,000 | -216,000 | -271,000 | |||
Recoveries | 64,000 | ' | 49,000 | 81,000 | 134,000 | 154,000 | |||
Net (charge-offs) recoveries | 39,000 | ' | -3,000 | -33,000 | -82,000 | -117,000 | |||
Balance, end of period | 176,000 | 164,000 | 178,000 | 176,000 | 164,000 | 188,000 | |||
Ending Balance, individually evaluated for impairment | 0 | 0 | ' | 0 | 0 | 0 | |||
Ending Balance, collectively evaluated for impairment | 176,000 | [2] | 164,000 | ' | 176,000 | [2] | 164,000 | 188,000 | [3] |
Financing Receivables: | ' | ' | ' | ' | ' | ' | |||
Total loans | 9,297,000 | 8,928,000 | ' | 9,297,000 | 8,928,000 | 9,089,000 | |||
Less: ending Balance: individually evaluated for impairment | 8,000 | 19,000 | ' | 8,000 | 19,000 | 0 | |||
Ending Balance, collectively evaluated for impairment | 9,289,000 | [2] | 8,909,000 | ' | 9,289,000 | [2] | 8,909,000 | 9,089,000 | [3] |
Other [Member] | ' | ' | ' | ' | ' | ' | |||
Allowance for loan losses: | ' | ' | ' | ' | ' | ' | |||
Balance, beginning of period | 15,000 | ' | ' | 38,000 | 70,000 | 70,000 | |||
Provision for loan losses | 0 | ' | -29,000 | -44,000 | -7,000 | -36,000 | |||
Loans charged-off | 0 | ' | 0 | 0 | 0 | 0 | |||
Recoveries | 1,000 | ' | 0 | 22,000 | 0 | 4,000 | |||
Net (charge-offs) recoveries | 1,000 | ' | 0 | 22,000 | 0 | 4,000 | |||
Balance, end of period | 16,000 | 63,000 | 92,000 | 16,000 | 63,000 | 38,000 | |||
Ending Balance, individually evaluated for impairment | 0 | 0 | ' | 0 | 0 | 0 | |||
Ending Balance, collectively evaluated for impairment | 16,000 | [2] | 63,000 | ' | 16,000 | [2] | 63,000 | 38,000 | [3] |
Financing Receivables: | ' | ' | ' | ' | ' | ' | |||
Total loans | 522,000 | 1,085,000 | ' | 522,000 | 1,085,000 | 738,000 | |||
Less: ending Balance: individually evaluated for impairment | 0 | 0 | ' | 0 | 0 | 0 | |||
Ending Balance, collectively evaluated for impairment | 522,000 | [2] | 1,085,000 | ' | 522,000 | [2] | 1,085,000 | 738,000 | [3] |
Totals [Member] | ' | ' | ' | ' | ' | ' | |||
Allowance for loan losses: | ' | ' | ' | ' | ' | ' | |||
Balance, beginning of period | 10,946,000 | ' | ' | 11,590,000 | 16,549,000 | 16,549,000 | |||
Provision for loan losses | 7,954,000 | ' | 0 | 7,954,000 | 35,000 | 35,000 | |||
Loans charged-off | -9,946,000 | ' | -2,506,000 | -11,277,000 | -6,856,000 | -8,358,000 | |||
Recoveries | 393,000 | ' | 764,000 | 1,080,000 | 2,568,000 | 3,364,000 | |||
Net (charge-offs) recoveries | -9,553,000 | ' | -1,742,000 | -10,197,000 | -4,288,000 | -4,994,000 | |||
Balance, end of period | 9,347,000 | 12,296,000 | 14,038,000 | 9,347,000 | 12,296,000 | 11,590,000 | |||
Ending Balance, individually evaluated for impairment | 534,000 | 1,801,000 | ' | 534,000 | 1,801,000 | 1,825,000 | |||
Ending Balance, collectively evaluated for impairment | 8,813,000 | [2] | 10,495,000 | ' | 8,813,000 | [2] | 10,495,000 | 9,765,000 | [3] |
Financing Receivables: | ' | ' | ' | ' | ' | ' | |||
Total loans | 446,895,000 | 496,418,000 | ' | 446,895,000 | 496,418,000 | 493,218,000 | |||
Less: ending Balance: individually evaluated for impairment | 13,302,000 | 43,621,000 | ' | 13,302,000 | 43,621,000 | 37,455,000 | |||
Ending Balance, collectively evaluated for impairment | 433,593,000 | [2] | 452,797,000 | ' | 433,593,000 | [2] | 452,797,000 | 455,763,000 | [3] |
Smaller Dollar Homogeneous Loan [Member] | ' | ' | ' | ' | ' | ' | |||
Financing Receivables: | ' | ' | ' | ' | ' | ' | |||
Ending Balance, collectively evaluated for impairment | $0 | ' | ' | $0 | ' | ' | |||
[1] | Derived from audited consolidated financial statements. | ||||||||
[2] | There were no small dollar homogeneous loans collectively evaluated for impairment for the nine months ended SeptemberB 30, 2014. | ||||||||
[3] | In late 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 $) | Sep. 30, 2014 | Dec. 31, 2013 | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | |
Commercial and industrial loans | $24,343,000 | $25,858,000 | |
Commercial construction and land development | 53,009,000 | 66,253,000 | |
Commercial real estate | 192,202,000 | 214,159,000 | |
Residential construction | 31,161,000 | 28,697,000 | |
Residential mortgage | 135,120,000 | 147,300,000 | |
Consumer | 7,040,000 | 6,750,000 | |
Other | 522,000 | 738,000 | |
Totals | 443,397,000 | 489,755,000 | |
Consumer credit cards | 2,257,000 | 2,339,000 | |
Business credit cards | 1,241,000 | 1,124,000 | |
Total loans | 446,895,000 | 493,218,000 | |
Loans held-for-sale | 12,200,000 | 0 | |
Credit Card Portfolio Exposure [Member] | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | |
Consumer credit cards | 2,257,000 | 2,339,000 | |
Business credit cards | 1,241,000 | 1,124,000 | |
1 - Lowest Risk [Member] | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | |
Commercial and industrial loans | 1,947,000 | 2,014,000 | |
Commercial construction and land development | 0 | 0 | |
Commercial real estate | 0 | 0 | |
Residential construction | 0 | 0 | |
Residential mortgage | 0 | 0 | |
Consumer | 1,728,000 | 1,365,000 | |
Other | 7,000 | 8,000 | |
Totals | 3,682,000 | 3,387,000 | |
2 - Satisfactory Quality [Member] | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | |
Commercial and industrial loans | 923,000 | 646,000 | |
Commercial construction and land development | 660,000 | 374,000 | |
Commercial real estate | 2,493,000 | 2,696,000 | |
Residential construction | 0 | 2,000 | |
Residential mortgage | 14,627,000 | 12,811,000 | |
Consumer | 341,000 | 412,000 | |
Other | 20,000 | 15,000 | |
Totals | 19,064,000 | 16,956,000 | |
3 - Satisfactory - Merits Attention [Member] | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | |
Commercial and industrial loans | 9,797,000 | 9,639,000 | |
Commercial construction and land development | 11,346,000 | 14,296,000 | |
Commercial real estate | 73,207,000 | 75,898,000 | |
Residential construction | 2,857,000 | 3,473,000 | |
Residential mortgage | 50,722,000 | 53,144,000 | |
Consumer | 3,373,000 | 3,628,000 | |
Other | 223,000 | 482,000 | |
Totals | 151,525,000 | 160,560,000 | |
4 - Low Satisfactory [Member] | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | |
Commercial and industrial loans | 11,462,000 | 12,616,000 | |
Commercial construction and land development | 34,924,000 | 36,723,000 | |
Commercial real estate | 109,658,000 | 121,522,000 | |
Residential construction | 28,171,000 | 23,779,000 | |
Residential mortgage | 57,401,000 | 57,460,000 | |
Consumer | 1,022,000 | 1,235,000 | |
Other | 153,000 | 107,000 | |
Totals | 242,791,000 | 253,442,000 | |
5 - Special Mention [Member] | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | |
Commercial and industrial loans | 214,000 | 137,000 | |
Commercial construction and land development | 1,911,000 | 1,922,000 | |
Commercial real estate | 4,481,000 | 2,558,000 | |
Residential construction | 0 | 262,000 | |
Residential mortgage | 9,858,000 | 8,450,000 | |
Consumer | 53,000 | 63,000 | |
Other | 119,000 | 126,000 | |
Totals | 16,636,000 | 13,518,000 | |
6-8 Substandard [Member] | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | |
Commercial and industrial loans | 0 | [1] | 806,000 |
Commercial construction and land development | 4,168,000 | [1] | 12,938,000 |
Commercial real estate | 2,363,000 | [1] | 11,485,000 |
Residential construction | 133,000 | [1] | 1,181,000 |
Residential mortgage | 2,512,000 | [1] | 15,435,000 |
Consumer | 523,000 | [1] | 47,000 |
Other | 0 | [1] | 0 |
Totals | 9,699,000 | [1] | 41,892,000 |
Loans held-for-sale | 11,200,000 | ' | |
Performing [Member] | Credit Card Portfolio Exposure [Member] | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | |
Consumer credit cards | 2,236,000 | 2,316,000 | |
Business credit cards | 1,241,000 | 1,124,000 | |
Non Performing [Member] | Credit Card Portfolio Exposure [Member] | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | |
Consumer credit cards | 21,000 | 23,000 | |
Business credit cards | $0 | $0 | |
[1] | The above tables include loans held for investment only. As of SeptemberB 30, 2014 there were $11.2 million in risk grade 6 loans classified as loans held for sale. |
LOANS_AND_ALLOWANCE_FOR_LOAN_L5
LOANS AND ALLOWANCE FOR LOAN LOSSES (Age Analysis of Past Due Loans) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | |
30-89 Days Past Due | $680 | $1,595 | |
Nonaccrual | 7,780 | 27,227 | |
Greater than 90 Days Past Due | 21 | 23 | |
Total past due | 8,481 | [1] | 28,845 |
Current | 438,414 | 464,373 | |
Total loans | 446,895 | 493,218 | |
Loans 30-89 past due classified as held-for-sale | 10 | ' | |
Loans held for sale - nonperforming | 8,176 | 0 | |
Commercial and Industrial [Member] | ' | ' | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | |
30-89 Days Past Due | 192 | 34 | |
Nonaccrual | 0 | 651 | |
Greater than 90 Days Past Due | 0 | 0 | |
Total past due | 192 | [1] | 685 |
Current | 24,151 | 25,173 | |
Total loans | 24,343 | 25,858 | |
Commercial Construction and Land Development [Member] | ' | ' | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | |
30-89 Days Past Due | 72 | 252 | |
Nonaccrual | 3,989 | 9,536 | |
Greater than 90 Days Past Due | 0 | 0 | |
Total past due | 4,061 | [1] | 9,788 |
Current | 48,948 | 56,465 | |
Total loans | 53,009 | 66,253 | |
Commercial Real Estate [Member] | ' | ' | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | |
30-89 Days Past Due | 0 | 749 | |
Nonaccrual | 1,852 | 6,391 | |
Greater than 90 Days Past Due | 0 | 0 | |
Total past due | 1,852 | [1] | 7,140 |
Current | 190,350 | 207,019 | |
Total loans | 192,202 | 214,159 | |
Residential Construction [Member] | ' | ' | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | |
30-89 Days Past Due | 0 | 0 | |
Nonaccrual | 0 | 695 | |
Greater than 90 Days Past Due | 0 | 0 | |
Total past due | 0 | [1] | 695 |
Current | 31,161 | 28,002 | |
Total loans | 31,161 | 28,697 | |
Residential Mortgage [Member] | ' | ' | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | |
30-89 Days Past Due | 242 | 421 | |
Nonaccrual | 1,439 | 9,943 | |
Greater than 90 Days Past Due | 0 | 0 | |
Total past due | 1,681 | [1] | 10,364 |
Current | 133,439 | 136,936 | |
Total loans | 135,120 | 147,300 | |
Consumer [Member] | ' | ' | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | |
30-89 Days Past Due | 74 | 11 | |
Nonaccrual | 500 | 11 | |
Greater than 90 Days Past Due | 0 | 0 | |
Total past due | 574 | [1] | 22 |
Current | 6,466 | 6,728 | |
Total loans | 7,040 | 6,750 | |
Consumer Credit Cards [Member] | ' | ' | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | |
30-89 Days Past Due | 60 | 76 | |
Nonaccrual | 0 | 0 | |
Greater than 90 Days Past Due | 21 | 23 | |
Total past due | 81 | [1] | 99 |
Current | 2,176 | 2,240 | |
Total loans | 2,257 | 2,339 | |
Business Credit Cards [Member] | ' | ' | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | |
30-89 Days Past Due | 40 | 52 | |
Nonaccrual | 0 | 0 | |
Greater than 90 Days Past Due | 0 | 0 | |
Total past due | 40 | [1] | 52 |
Current | 1,201 | 1,072 | |
Total loans | 1,241 | 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 | [1] | 0 |
Current | 522 | 738 | |
Total loans | $522 | $738 | |
[1] | The above table includes loans held for investment only. As of SeptemberB 30, 2014 there were $10,000 in loans 30-89 past due and $8.2 million in loans on nonaccrual classified as loans held for sale. |
LOANS_AND_ALLOWANCE_FOR_LOAN_L6
LOANS AND ALLOWANCE FOR LOAN LOSSES (Nonperforming Assets) (Details) (USD $) | Sep. 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 | $21 | $23 | |
Nonaccrual loans | 7,780 | 27,227 | |
Foreclosed assets | 4,724 | 8,502 | [1] |
Loans held for sale - nonperforming | 8,176 | 0 | |
Total | $20,701 | $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 $) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | ||
Impaired Loans, Recorded Investment | ' | ' | |
With no related allowance recorded | $11,722,000 | [1] | $31,404,000 |
With an allowance recorded | 1,580,000 | [1] | 7,772,000 |
Total | 13,302,000 | [1] | 39,176,000 |
Impaired Loans, Unpaid Principal Balance | ' | ' | |
With no related allowance recorded | 17,412,000 | 39,696,000 | |
With an allowance recorded | 2,262,000 | 9,178,000 | |
Total | 19,674,000 | 48,874,000 | |
Impaired loans, allowance | 534,000 | 1,825,000 | |
Impaired Loans, Average Recorded Investment | ' | ' | |
With no related allowance recorded | 14,048,000 | 35,055,000 | |
With an allowance recorded | 1,599,000 | 8,021,000 | |
Total | 15,647,000 | 43,076,000 | |
Impaired Loans, Interest Income Recognized | ' | ' | |
With no related allowance recorded | 215,000 | 449,000 | |
With an allowance recorded | 49,000 | 144,000 | |
Total | 264,000 | 593,000 | |
Recorded investment in impaired loans classified as held for sale | 10,900,000 | ' | |
Commercial [Member] | ' | ' | |
Impaired Loans, Recorded Investment | ' | ' | |
Total | 10,450,000 | [1] | 25,609,000 |
Impaired Loans, Unpaid Principal Balance | ' | ' | |
Total | 16,156,000 | 32,908,000 | |
Impaired loans, allowance | 534,000 | 1,232,000 | |
Impaired Loans, Average Recorded Investment | ' | ' | |
Total | 12,500,000 | 28,713,000 | |
Impaired Loans, Interest Income Recognized | ' | ' | |
Total | 215,000 | 438,000 | |
Commercial and Industrial [Member] | ' | ' | |
Impaired Loans, Recorded Investment | ' | ' | |
With no related allowance recorded | ' | 380,000 | |
With an allowance recorded | ' | 309,000 | |
Impaired Loans, Unpaid Principal Balance | ' | ' | |
With no related allowance recorded | ' | 517,000 | |
With an allowance recorded | ' | 322,000 | |
Impaired loans, allowance | ' | 80,000 | |
Impaired Loans, Average Recorded Investment | ' | ' | |
With no related allowance recorded | ' | 491,000 | |
With an allowance recorded | ' | 321,000 | |
Impaired Loans, Interest Income Recognized | ' | ' | |
With no related allowance recorded | ' | 2,000 | |
With an allowance recorded | ' | 0 | |
Commercial Construction and Land Development [Member] | ' | ' | |
Impaired Loans, Recorded Investment | ' | ' | |
With no related allowance recorded | 4,260,000 | [1] | 11,142,000 |
With an allowance recorded | 1,244,000 | [1] | 1,315,000 |
Impaired Loans, Unpaid Principal Balance | ' | ' | |
With no related allowance recorded | 8,087,000 | 15,809,000 | |
With an allowance recorded | 1,926,000 | 2,033,000 | |
Impaired loans, allowance | 528,000 | 264,000 | |
Impaired Loans, Average Recorded Investment | ' | ' | |
With no related allowance recorded | 5,612,000 | 13,259,000 | |
With an allowance recorded | 1,259,000 | 1,348,000 | |
Impaired Loans, Interest Income Recognized | ' | ' | |
With no related allowance recorded | 43,000 | 168,000 | |
With an allowance recorded | 35,000 | 0 | |
Commercial Real Estate [Member] | ' | ' | |
Impaired Loans, Recorded Investment | ' | ' | |
With no related allowance recorded | 4,610,000 | [1] | 8,437,000 |
With an allowance recorded | 336,000 | [1] | 4,026,000 |
Impaired Loans, Unpaid Principal Balance | ' | ' | |
With no related allowance recorded | 5,807,000 | 10,131,000 | |
With an allowance recorded | 336,000 | 4,096,000 | |
Impaired loans, allowance | 6,000 | 888,000 | |
Impaired Loans, Average Recorded Investment | ' | ' | |
With no related allowance recorded | 5,289,000 | 9,190,000 | |
With an allowance recorded | 340,000 | 4,104,000 | |
Impaired Loans, Interest Income Recognized | ' | ' | |
With no related allowance recorded | 123,000 | 132,000 | |
With an allowance recorded | 14,000 | 136,000 | |
Residential [Member] | ' | ' | |
Impaired Loans, Recorded Investment | ' | ' | |
Total | 2,844,000 | [1] | 13,556,000 |
Impaired Loans, Unpaid Principal Balance | ' | ' | |
Total | 3,510,000 | 15,944,000 | |
Impaired loans, allowance | 0 | 593,000 | |
Impaired Loans, Average Recorded Investment | ' | ' | |
Total | 3,139,000 | 14,346,000 | |
Impaired Loans, Interest Income Recognized | ' | ' | |
Total | 49,000 | 155,000 | |
Residential Construction [Member] | ' | ' | |
Impaired Loans, Recorded Investment | ' | ' | |
With no related allowance recorded | ' | 486,000 | |
With an allowance recorded | ' | 695,000 | |
Impaired Loans, Unpaid Principal Balance | ' | ' | |
With no related allowance recorded | ' | 486,000 | |
With an allowance recorded | ' | 1,134,000 | |
Impaired loans, allowance | ' | 137,000 | |
Impaired Loans, Average Recorded Investment | ' | ' | |
With no related allowance recorded | ' | 474,000 | |
With an allowance recorded | ' | 749,000 | |
Impaired Loans, Interest Income Recognized | ' | ' | |
With no related allowance recorded | ' | 26,000 | |
With an allowance recorded | ' | 0 | |
Residential Mortgage [Member] | ' | ' | |
Impaired Loans, Recorded Investment | ' | ' | |
With no related allowance recorded | 2,844,000 | [1] | 10,948,000 |
With an allowance recorded | ' | 1,427,000 | |
Impaired Loans, Unpaid Principal Balance | ' | ' | |
With no related allowance recorded | 3,510,000 | 12,731,000 | |
With an allowance recorded | ' | 1,593,000 | |
Impaired loans, allowance | ' | 456,000 | |
Impaired Loans, Average Recorded Investment | ' | ' | |
With no related allowance recorded | 3,139,000 | 11,624,000 | |
With an allowance recorded | ' | 1,499,000 | |
Impaired Loans, Interest Income Recognized | ' | ' | |
With no related allowance recorded | 49,000 | 121,000 | |
With an allowance recorded | ' | 8,000 | |
Consumer [Member] | ' | ' | |
Impaired Loans, Recorded Investment | ' | ' | |
With no related allowance recorded | 8,000 | [1] | 11,000 |
Total | 8,000 | [1] | 11,000 |
Impaired Loans, Unpaid Principal Balance | ' | ' | |
With no related allowance recorded | 8,000 | 22,000 | |
Total | 8,000 | 22,000 | |
Impaired loans, allowance | 0 | 0 | |
Impaired Loans, Average Recorded Investment | ' | ' | |
With no related allowance recorded | 8,000 | 17,000 | |
Total | 8,000 | 17,000 | |
Impaired Loans, Interest Income Recognized | ' | ' | |
With no related allowance recorded | 0 | 0 | |
Total | $0 | $0 | |
[1] | The above tables include loans held for investment only. As of SeptemberB 30, 2014 the recorded investment in impaired loans classified as held for sale totaled $10.9 million. There were no reserves recorded for these loans. |
LOANS_AND_ALLOWANCE_FOR_LOAN_L8
LOANS AND ALLOWANCE FOR LOAN LOSSES (Summary of Loans Modified as TDRs) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Financing Receivable, Modifications [Line Items] | ' | ' |
Accrual | $5,411,000 | $7,030,000 |
Nonaccrual | 4,067,000 | 14,260,000 |
Total TDRs | 9,478,000 | 21,290,000 |
Allowance for Loan Losses Allocated | 534,000 | 486,000 |
Accruing TDRs classified as held for sale | 1,700,000 | ' |
TDRs in nonaccrual classified as held for sale | 2,000,000 | ' |
Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Accrual | ' | 37,000 |
Nonaccrual | ' | 301,000 |
Total TDRs | ' | 338,000 |
Allowance for Loan Losses Allocated | ' | 0 |
Commercial Construction and Land Development [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Accrual | 1,349,000 | 227,000 |
Nonaccrual | 2,783,000 | 6,699,000 |
Total TDRs | 4,132,000 | 6,926,000 |
Allowance for Loan Losses Allocated | 528,000 | 34,000 |
Commercial Real Estate [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Accrual | 3,094,000 | 4,447,000 |
Nonaccrual | 733,000 | 4,204,000 |
Total TDRs | 3,827,000 | 8,651,000 |
Allowance for Loan Losses Allocated | 6,000 | 223,000 |
Residential Mortgage [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Accrual | 968,000 | 2,319,000 |
Nonaccrual | 551,000 | 3,055,000 |
Total TDRs | 1,519,000 | 5,374,000 |
Allowance for Loan Losses Allocated | 0 | 229,000 |
Other [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Accrual | ' | 0 |
Nonaccrual | ' | 1,000 |
Total TDRs | ' | 1,000 |
Allowance for Loan Losses Allocated | ' | $0 |
SUBORDINATED_DEBT_Details
SUBORDINATED DEBT (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | |
In Thousands, except Per Share data, unless otherwise specified | |||
Debt Instrument [Line Items] | ' | ' | |
Interest payable accrued and deferred | $1,747 | $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 | $849 | ' | |
[1] | Derived from audited consolidated financial statements. |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | Sep. 30, 2014 | Oct. 31, 2013 |
In Thousands, unless otherwise specified | lawsuit | |
Loan Commitments [Line Items] | ' | ' |
Loan commitments | $94,525 | ' |
Cash | 22,200 | ' |
Securities | 103,559 | ' |
Loans | 50,705 | ' |
Number of pending lawsuits | ' | 4 |
Legally Binding Commitment [Member] | ' | ' |
Loan Commitments [Line Items] | ' | ' |
Loan commitments | 82,238 | ' |
Commitments to Extend Credit [Member] | ' | ' |
Loan Commitments [Line Items] | ' | ' |
Loan commitments | 4,696 | ' |
Undisbursed Lines of Credit [Member] | ' | ' |
Loan Commitments [Line Items] | ' | ' |
Loan commitments | 76,548 | ' |
Financial Stand-by Letters of Credit [Member] | ' | ' |
Loan Commitments [Line Items] | ' | ' |
Loan commitments | 230 | ' |
Performance Stand-by Letters of Credit [Member] | ' | ' |
Loan Commitments [Line Items] | ' | ' |
Loan commitments | 764 | ' |
Unused Credit Card Lines [Member] | ' | ' |
Loan Commitments [Line Items] | ' | ' |
Loan commitments | $12,287 | ' |
FAIR_VALUE_MEASUREMENT_Assets_
FAIR VALUE MEASUREMENT (Assets Measured at Fair Value on Recurring Basis) (Details) (USD $) | Sep. 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 | $17,827 | $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 | 11,307 | 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 | 6,433 | 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 | 87 | 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 | 87 | 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 | 17,740 | 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 | 17,827 | 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 | 17,827 | 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 | 87 | 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 | 87 | 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 | 17,740 | 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 | 11,307 | 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 | 6,433 | 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 | 0 | 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 | ' | 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 | 17,827 | 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 | 11,307 | 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 | 6,433 | 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 | 87 | 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 | 17,827 | 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 | 11,307 | 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 | 6,433 | 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 | $87 | $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 | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Level 3 assets measured at fair value on a recurring basis [Roll Forward] | ' | ' | ' | ' |
Beginning Balance | $0 | $1,019 | $1,025 | $1,006 |
Total realized and unrealized gains or (losses) included in earnings | 175 | 0 | 250 | 0 |
Total realized and unrealized gains or (losses) included in other comprehensive income (loss) | 0 | 6 | 150 | 19 |
Purchases, issuances and settlements | -175 | 0 | -1,425 | 0 |
Transfers in (out) of Level 3 | 0 | 0 | 0 | 0 |
Ending Balance | $0 | $1,025 | $0 | $1,025 |
FAIR_VALUE_MEASUREMENT_Assets_1
FAIR VALUE MEASUREMENT (Assets Measured at Fair Value on Nonrecurring Basis) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | |||
Quoted Prices in Active Markets for Identical Asset (Level 1) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Total Carrying Amount in the Consolidated Balance Sheet [Member] | Assets Measured at Fair Value [Member] | Assets Measured at Fair Value [Member] | Nonrecurring Basis [Member] | Nonrecurring Basis [Member] | Nonrecurring Basis [Member] | Nonrecurring Basis [Member] | Nonrecurring Basis [Member] | Nonrecurring Basis [Member] | Nonrecurring Basis [Member] | Nonrecurring Basis [Member] | Nonrecurring Basis [Member] | Nonrecurring Basis [Member] | Nonrecurring Basis [Member] | |||||||
Quoted Prices in Active Markets for Identical Asset (Level 1) [Member] | Quoted Prices in Active Markets for Identical Asset (Level 1) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Total Carrying Amount in the Consolidated Balance Sheet [Member] | Total Carrying Amount in the Consolidated Balance Sheet [Member] | Assets Measured at Fair Value [Member] | Assets Measured at Fair Value [Member] | |||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Transfers of loans to loans held for sale | $11,200,000 | $11,189,000 | $3,639,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Loans held-for-sale | 12,200,000 | 12,200,000 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Impaired loans, amount | 13,302,000 | [1] | 13,302,000 | [1] | ' | 39,176,000 | ' | ' | ' | ' | 9,000,000 | 20,000,000 | ' | ' | ' | ' | ' | 8,987,000 | ' | ' | ' | ' | ' |
Impaired loans, amount with allowance | 1,580,000 | [1] | 1,580,000 | [1] | ' | 7,772,000 | ' | ' | ' | ' | 1,600,000 | 7,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impaired loans, allowance | 534,000 | 534,000 | ' | 1,825,000 | ' | ' | ' | ' | 534,000 | 1,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Impaired loans, with no related allowance recorded | 11,722,000 | [1] | 11,722,000 | [1] | ' | 31,404,000 | ' | ' | ' | ' | 7,900,000 | 12,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Valuation adjustment on foreclosed assets | ' | 1,680,000 | 1,207,000 | 1,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Assets measured at fair value: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Loans held for sale | ' | ' | ' | ' | 0 | 12,237,000 | 0 | 12,237,000 | 12,237,000 | ' | 0 | ' | 12,237,000 | ' | 0 | ' | ' | 12,237,000 | ' | 12,237,000 | ' | ||
Impaired loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | 0 | 8,987,000 | ' | 18,215,000 | 8,987,000 | 18,215,000 | 8,987,000 | 18,215,000 | ||
Foreclosed assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $0 | $0 | $4,724,000 | ' | $8,502,000 | $4,724,000 | $8,502,000 | $4,724,000 | $8,502,000 | ||
[1] | The above tables include loans held for investment only. As of SeptemberB 30, 2014 the recorded investment in impaired loans classified as held for sale totaled $10.9 million. There were no reserves recorded for these loans. |
FAIR_VALUE_MEASUREMENT_Quantit
FAIR VALUE MEASUREMENT (Quantitative Information, Unobservable Input) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 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] | ||||
Maximum [Member] | Nonrecurring Basis [Member] | Nonrecurring Basis [Member] | Nonrecurring Basis [Member] | |||||
Loans Receivable [Member] | Minimum [Member] | Maximum [Member] | ||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' | ' | ' | ' | ' | ||
Impaired loans | $13,302 | [1] | $39,176 | ' | $8,987 | ' | ' | |
Foreclosed assets | $4,724 | $8,502 | [2] | ' | $4,724 | ' | ' | |
Collateral discounts | ' | ' | 40.00% | ' | 9.00% | 50.00% | ||
Discounted appraisals | ' | ' | ' | ' | 10.00% | 30.00% | ||
[1] | The above tables include loans held for investment only. As of SeptemberB 30, 2014 the recorded investment in impaired loans classified as held for sale totaled $10.9 million. There were no reserves recorded for these loans. | |||||||
[2] | Derived from audited consolidated financial statements. |
FAIR_VALUE_MEASUREMENT_Range_o
FAIR VALUE MEASUREMENT (Range of Collateral Discounts) (Details) | 9 Months Ended |
Sep. 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 $) | Sep. 30, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Financial assets: | ' | ' | |
CDs held for investment | $29,645 | $31,850 | [1] |
Available for sale securities | 17,827 | 32,566 | [1] |
Securities held to maturity | 85,818 | 95,831 | |
Level 1 [Member] | ' | ' | |
Financial assets: | ' | ' | |
Cash and cash equivalents | 211,330 | 128,629 | |
CDs held for investment | 0 | 0 | |
Available for sale securities | 87 | 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 | 29,645 | 31,850 | |
Available for sale securities | 17,740 | 31,471 | |
Securities held to maturity | 85,818 | 95,831 | |
Loans held for sale | 12,237 | ' | |
Loans, net | 0 | 0 | |
FHLB stock | 5,553 | 6,076 | |
Accrued interest receivable | 1,486 | 1,576 | |
Financial liabilities: | ' | ' | |
Deposits | 663,525 | 659,733 | |
Subordinated debentures and promissory notes | 0 | 0 | |
Borrowings | 114,334 | 121,519 | |
Accrued interest payable | 1,747 | 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 | 416,404 | 458,254 | |
FHLB stock | 0 | 0 | |
Accrued interest receivable | 0 | 0 | |
Financial liabilities: | ' | ' | |
Deposits | 0 | 0 | |
Subordinated debentures and promissory notes | 24,372 | 24,369 | |
Borrowings | 0 | 0 | |
Accrued interest payable | 0 | 0 | |
Carrying Value [Member] | ' | ' | |
Financial assets: | ' | ' | |
Cash and cash equivalents | 211,330 | 128,629 | |
CDs held for investment | 29,645 | 31,850 | |
Available for sale securities | 17,827 | 32,566 | |
Securities held to maturity | 85,773 | 98,013 | |
Loans held for sale | 12,237 | ' | |
Loans, net | 437,000 | 481,122 | |
FHLB stock | 5,553 | 6,076 | |
Accrued interest receivable | 1,486 | 1,576 | |
Financial liabilities: | ' | ' | |
Deposits | 661,812 | 657,620 | |
Subordinated debentures and promissory notes | 24,372 | 24,372 | |
Borrowings | 107,000 | 112,000 | |
Accrued interest payable | 1,747 | 1,642 | |
Estimated Fair Value [Member] | ' | ' | |
Financial assets: | ' | ' | |
Cash and cash equivalents | 211,330 | 128,629 | |
CDs held for investment | 29,645 | 31,850 | |
Available for sale securities | 17,827 | 32,566 | |
Securities held to maturity | 85,818 | 95,831 | |
Loans held for sale | 12,237 | ' | |
Loans, net | 416,404 | 458,254 | |
FHLB stock | 5,553 | 6,076 | |
Accrued interest receivable | 1,486 | 1,576 | |
Financial liabilities: | ' | ' | |
Deposits | 663,525 | 659,733 | |
Subordinated debentures and promissory notes | 24,372 | 24,369 | |
Borrowings | 114,334 | 121,519 | |
Accrued interest payable | $1,747 | $1,642 | |
[1] | Derived from audited consolidated financial statements. |
REGULATORY_RESTRICTIONS_Detail
REGULATORY RESTRICTIONS (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
Aug. 15, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | 31-May-11 | Jun. 30, 2014 | Dec. 31, 2013 | |
provision | provision | Four Oaks Bank & Trust Company (the bBankb) [Member] | Four Oaks Bank & Trust Company (the bBankb) [Member] | Four Oaks Bank & Trust Company (the bBankb) [Member] | Four Oaks Bank & Trust Company (the bBankb) [Member] | Parent Company [Member] | Parent Company [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 | ' | ' | ' | ' | ' | 65,331,000 | 50,601,000 | ' | ' | ' |
Total Capital (to Risk Weighted Assets), Amount, Minimum for Capital Adequacy Purposes | ' | ' | ' | ' | ' | 34,880,000 | 37,057,000 | ' | ' | ' |
Total Capital (to Risk Weighted Assets), Amount, Minimum to be Well Capitalized under Prompt Corrective Action Provisions | ' | ' | ' | ' | ' | 43,600,000 | 46,322,000 | ' | ' | ' |
Tier I Capital (to Risk Weighted Assets), Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tier I Capital (to Risk Weighted Assets), Amount, Actual | ' | ' | ' | ' | ' | 59,833,000 | 44,739,000 | ' | ' | ' |
Tier I Capital (to Risk Weighted Assets), Amount, Minimum for Capital Adequacy Purposes | ' | ' | ' | ' | ' | 17,440,000 | 18,529,000 | ' | ' | ' |
Tier I Capital (to Risk Weighted Assets), Amount, Minimum to be Well Capitalized under Prompt Corrective Action Provisions | ' | ' | ' | ' | ' | 26,160,000 | 27,793,000 | ' | ' | ' |
Tier I Capital (to Average Assets), Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tier I Capital (to Average Assets), Amount, Actual | ' | ' | ' | ' | ' | 59,833,000 | 44,739,000 | ' | ' | ' |
Tier I Capital (to Average Assets), Amount, Minimum for Capital Adequacy Purposes | ' | ' | ' | ' | ' | 33,526,000 | 32,529,000 | ' | ' | ' |
Tier I Capital (to Average Assets), Amount, Minimum to be Well Capitalized under Prompt Corrective Action Provisions | ' | ' | ' | ' | ' | 41,908,000 | 40,661,000 | ' | ' | ' |
Total Capital and Tier I Capital (to Risk Weighted Assets), Ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Capital (to Risk Weighted Assets), Ratio, Actual | ' | ' | ' | ' | ' | 15.00% | 10.90% | ' | 15.90% | 10.70% |
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 | ' | ' | ' | ' | ' | 13.70% | 9.70% | ' | 11.80% | 6.30% |
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 | ' | ' | ' | ' | ' | 7.10% | 5.50% | ' | 6.20% | 3.60% |
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 | ' | ' |
Number of fully complied provisions | ' | 19 | 19 | ' | ' | ' | ' | ' | ' | ' |
Number of provisions contained in the Agreement | ' | 20 | 20 | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock (in shares) | 24,000,000 | 24,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock | $22,200,000 | ' | $22,229,000 | $195,000 | ' | ' | ' | ' | ' | ' |
SECURITIES_PURCHASE_AGREEMENT_
SECURITIES PURCHASE AGREEMENT (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 9 Months Ended | ||||||||||
Aug. 15, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 18, 2014 | Aug. 15, 2014 | Aug. 15, 2014 | Mar. 27, 2014 | Aug. 15, 2014 | Mar. 24, 2014 | Mar. 24, 2014 | Mar. 24, 2014 | Aug. 15, 2014 | Aug. 15, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Aug. 15, 2014 | |
Exercise of Basic Subscription Privilege [Member] | Exercise of Oversubscription Privilege [Member] | Standby Investor [Member] | Standby Investor [Member] | Standby Investor [Member] | Standby Investor [Member] | Standby Investor [Member] | Standby Investor [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | ||||||
Standby Offering [Member] | Standby Offering [Member] | Standby Offering [Member] | Standby Offering [Member] | Exercise of Basic Subscription Privilege [Member] | |||||||||||||
Maximum [Member] | Maximum [Member] | ||||||||||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales price (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1 | ' | ' | ' | ' | ' | ' | $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 | ' | ' | ' | ' | ' | ' | ' | ' | 12,500,000 | 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 | ' | ' | ' | ' | $26,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock (in shares) | 24,000,000 | 24,000,000 | ' | ' | ' | 9,248,464 | 1,376,536 | ' | ' | ' | ' | ' | 2,625,000 | 24,000,000 | 24,045,899 | 144,129 | ' |
Estimated aggregate gross proceeds from offerings | $22,200,000 | ' | $22,229,000 | $195,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $24,000,000 | $24,046,000 | $145,000 | ' |
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% |