Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 07, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | FOUR OAKS FINCORP INC | |
Entity Central Index Key | 1,040,799 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 6,771,359 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | [1] | |
ASSETS | ||||
Cash and due from banks | $ 19,415 | $ 23,940 | ||
Interest-earning deposits | 32,863 | 8,623 | ||
Cash and cash equivalents | 52,278 | 32,563 | ||
Certificates of deposits held for investment | 15,190 | 18,125 | ||
Investment securities available-for-sale, at fair value | 76,210 | 58,141 | ||
Investment securities held-to-maturity, at amortized cost | 45,398 | 51,205 | ||
Total investment securities | 121,608 | 109,346 | ||
Loans held for sale | 2,497 | 206 | ||
Loans | 497,761 | 507,004 | ||
Allowance for loan losses | (9,654) | (9,647) | ||
Net loans | 488,107 | 497,357 | ||
Accrued interest receivable | 1,715 | 1,598 | ||
Bank premises and equipment held for sale | 1,285 | 2,373 | ||
Bank premises and equipment, net | 9,571 | 9,844 | ||
FHLB stock | 4,046 | 3,596 | ||
Investment in life insurance | 20,198 | 19,987 | ||
Foreclosed assets | 1,381 | 1,682 | ||
Deferred tax assets, net | 16,824 | 18,201 | ||
Other assets | 5,131 | 5,005 | ||
TOTAL ASSETS | 739,831 | 719,883 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Noninterest-bearing demand | 164,989 | 151,860 | ||
Money market, NOW accounts and savings accounts | 207,402 | 200,386 | ||
Time deposits, $250,000 and over | 29,535 | 29,767 | ||
Other time deposits | 158,226 | 171,518 | ||
Total deposits | 560,152 | 553,531 | ||
Borrowings | 80,000 | 70,000 | ||
Subordinated debentures | 12,372 | 12,372 | ||
Subordinated promissory notes | 11,500 | 11,500 | ||
Accrued interest payable | 404 | 384 | ||
Other liabilities | 4,087 | 4,091 | ||
TOTAL LIABILITIES | 668,515 | 651,878 | ||
Commitments and Contingencies (Note F) | ||||
Shareholders’ equity: | ||||
Common stock, $1.00 par value, 16,000,000 shares authorized; 6,771,359 and 6,757,047 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively(1) | [2] | 6,771 | 6,757 | |
Additional paid-in capital | 59,498 | 58,976 | ||
Retained earnings | 4,738 | 2,287 | ||
Accumulated other comprehensive income (loss) | 309 | (15) | ||
Total shareholders' equity | 71,316 | 68,005 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 739,831 | $ 719,883 | ||
[1] | Derived from audited consolidated financial statements. | |||
[2] | Common stock shares authorized, issued and outstanding have been adjusted to reflect the one for five reserve stock split that occurred on March 8, 2017. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) | Jun. 30, 2017$ / sharesshares | Dec. 31, 2016$ / sharesshares |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in usd per share) | $ / shares | $ 1 | $ 1 |
Common stock, shares authorized | 16,000,000 | 16,000,000 |
Common stock, shares issued | 6,771,359 | 6,757,047 |
Common stock, shares outstanding | 6,771,359 | 6,757,047 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Interest and dividend income: | |||||
Loans, including fees | $ 6,555 | $ 6,306 | $ 13,316 | $ 12,395 | |
Taxable investments | 748 | 776 | 1,387 | 1,616 | |
Tax-exempt investments | 4 | 0 | 7 | 0 | |
Dividends and other investments | 96 | 100 | 187 | 181 | |
Interest-earning deposits | 134 | 116 | 246 | 225 | |
Total interest and dividend income | 7,537 | 7,298 | 15,143 | 14,417 | |
Interest expense: | |||||
Deposits | 539 | 592 | 1,079 | 1,193 | |
Borrowings | 386 | 366 | 762 | 744 | |
Subordinated debentures | 79 | 62 | 152 | 121 | |
Subordinated promissory notes | 181 | 217 | 361 | 399 | |
Total interest expense | 1,185 | 1,237 | 2,354 | 2,457 | |
Net interest income | 6,352 | 6,061 | 12,789 | 11,960 | |
Provision for loan losses | 0 | 0 | 0 | 0 | |
Net interest income after provision for loan losses | 6,352 | 6,061 | 12,789 | 11,960 | |
Non-interest income: | |||||
Service charges on deposit accounts | 373 | 361 | 741 | 718 | |
Other service charges, commissions and fees | 885 | 896 | 1,680 | 1,647 | |
Gains on sale of investment securities available-for-sale, net | 0 | 266 | 0 | 266 | |
Income from investment in life insurance | 113 | 42 | 211 | 85 | |
Other non-interest income | 257 | 10 | 320 | 28 | |
Total non-interest income | 1,628 | 1,575 | 2,952 | 2,744 | |
Non-interest expense: | |||||
Salaries | 2,581 | 2,755 | 5,238 | 5,348 | |
Employee benefits | 567 | 594 | 1,242 | 1,223 | |
Occupancy expenses | 289 | 335 | 599 | 671 | |
Equipment expenses | 143 | 142 | 265 | 290 | |
Professional and consulting fees | 453 | 683 | 1,023 | 1,223 | |
Merger-related expenses | 524 | 0 | 524 | 0 | |
FDIC assessments | 70 | 122 | 157 | 250 | |
Collection and foreclosed asset-related costs, net | 37 | 88 | 84 | 246 | |
Other operating expenses | 1,291 | 1,547 | 2,743 | 2,789 | |
Total non-interest expense | 5,955 | 6,266 | 11,875 | 12,040 | |
Income before income taxes | 2,025 | 1,370 | 3,866 | 2,664 | |
Income tax expense | 702 | 498 | 1,355 | 961 | |
Net income | $ 1,323 | $ 872 | $ 2,511 | $ 1,703 | |
Basic net income per common share (in usd per share) | [1] | $ 0.20 | $ 0.13 | $ 0.38 | $ 0.26 |
Diluted net income per common share (in usd per share) | [1] | $ 0.20 | $ 0.13 | $ 0.38 | $ 0.26 |
Weighted Average Shares Outstanding, Basic | [1] | 6,515,569 | 6,486,792 | 6,510,209 | 6,470,743 |
Weighted Average Shares Outstanding, Diluted | [1] | 6,661,505 | 6,569,049 | 6,652,512 | 6,537,109 |
[1] | Weighted average common shares outstanding used in the computation of basic and diluted net income per common share were adjusted to reflect the one for five reverse stock split that occurred on March 8, 2017. |
CONSOLIDATED STATEMENTS OF OPE5
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Parenthetical) | Mar. 08, 2017 |
Income Statement [Abstract] | |
Reverse stock split ratio | 0.20 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,323 | $ 872 | $ 2,511 | $ 1,703 |
Securities available-for-sale: | ||||
Unrealized holding gains on available-for-sale securities | 361 | 1,112 | 527 | 2,661 |
Tax effect | (133) | (309) | (193) | (877) |
Reclassification of gains recognized in net income | 0 | (266) | 0 | (266) |
Tax effect | 0 | 0 | 0 | 0 |
Amortization of unrealized losses on investment securities transferred from available-for-sale to held-to-maturity | (6) | (9) | (15) | (20) |
Tax effect | 2 | 3 | 5 | 7 |
Total other comprehensive income | 224 | 531 | 324 | 1,505 |
Comprehensive income | $ 1,547 | $ 1,403 | $ 2,835 | $ 3,208 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive (loss) income | ||
BEGINNING BALANCE at Dec. 31, 2015 | $ 60,406 | $ 6,719 | $ 58,543 | $ (4,571) | $ (285) | ||
BEGINNING BALANCE (in shares) at Dec. 31, 2015 | [1] | 6,719,162 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 1,703 | 1,703 | |||||
Other comprehensive income | 1,505 | 1,505 | |||||
Stock based compensation | 152 | 152 | |||||
Issuance of common stock | 159 | $ 19 | 140 | ||||
Issuance of common stock (in shares) | [1] | 19,338 | |||||
Excess income tax benefit | 1 | 1 | |||||
Issuance of restricted stock | 0 | $ 42 | (42) | ||||
Issuance of restricted stock (in shares) | [1] | 42,000 | |||||
Forfeiture of restricted stock | 0 | $ (17) | 17 | ||||
Forfeiture of restricted stock (in shares) | [1] | (17,000) | |||||
Stock withheld for payment of taxes | (71) | $ (7) | (64) | ||||
Stock withheld for payment of taxes (in shares) | [1] | (7,498) | |||||
ENDING BALANCE at Jun. 30, 2016 | 63,855 | $ 6,756 | 58,747 | (2,868) | 1,220 | ||
ENDING BALANCE (in shares) at Jun. 30, 2016 | [1] | 6,756,002 | |||||
BEGINNING BALANCE at Dec. 31, 2016 | 68,005 | [2] | $ 6,757 | 58,976 | 2,287 | (15) | |
BEGINNING BALANCE (in shares) at Dec. 31, 2016 | [1] | 6,757,047 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 2,511 | 2,511 | |||||
Other comprehensive income | 324 | 324 | |||||
Stock based compensation | 300 | 300 | |||||
Issuance of common stock | 213 | $ 21 | 192 | ||||
Issuance of common stock (in shares) | [1] | 21,112 | |||||
Excess income tax benefit | 23 | 23 | |||||
Forfeiture of restricted stock | 0 | $ (7) | 7 | ||||
Forfeiture of restricted stock (in shares) | [1] | (6,800) | |||||
Cash dividends of $0.01 per share | (60) | (60) | |||||
ENDING BALANCE at Jun. 30, 2017 | $ 71,316 | $ 6,771 | $ 59,498 | $ 4,738 | $ 309 | ||
ENDING BALANCE (in shares) at Jun. 30, 2017 | [1] | 6,771,359 | |||||
[1] | Common stock shares outstanding have been adjusted to reflect the one for five reserve stock split that occurred on March 8, 2017. | ||||||
[2] | Derived from audited consolidated financial statements. |
CONSOLIDATED STATEMENTS OF SHA8
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) (Parenthetical) | 6 Months Ended |
Jun. 30, 2017$ / shares | |
Statement of Stockholders' Equity [Abstract] | |
Cash dividends paid per share (in usd per share) | $ 0.01 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | ||
Cash flows from operating activities: | |||
Net income | $ 2,511,000 | $ 1,703,000 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Deferred income tax expense | 1,189,000 | 887,000 | |
Provision for depreciation and amortization | 330,000 | 338,000 | |
Net amortization of bond premiums and discounts | 375,000 | 450,000 | |
Stock based compensation | 300,000 | 152,000 | |
Excess tax benefits from stock options | 23,000 | 1,000 | |
Gain on sale of investment securities | 0 | (266,000) | |
(Gain) loss on disposition of bank premises and equipment | (195,000) | 7,000 | |
Gain on sale of foreclosed assets, net | (7,000) | (18,000) | |
Valuation adjustment on foreclosed assets | 7,000 | 36,000 | |
Earnings on investment in bank-owned life insurance | (211,000) | (85,000) | |
Gain on sale of mortgage loans held for sale | (217,000) | (228,000) | |
Originations of mortgage loans held for sale | (11,042,000) | (9,347,000) | |
Proceeds from sale of loans held for sale | 8,968,000 | 10,039,000 | |
Changes in assets and liabilities: | |||
Other assets | (126,000) | 76,000 | |
Accrued interest receivable | (117,000) | 68,000 | |
Other liabilities | (4,000) | (1,242,000) | |
Accrued interest payable | 20,000 | (36,000) | |
Net cash provided by operating activities | 1,804,000 | 2,535,000 | |
Cash flows from investing activities: | |||
Proceeds from sales and calls of investment securities available-for-sale | 0 | 5,198,000 | |
Proceeds from maturities and calls of investment securities held-to-maturity | 155,000 | 100,000 | |
Proceeds from paydowns of investment securities available-for-sale | 4,287,000 | 3,195,000 | |
Proceeds from paydowns of investment securities held-to-maturity | 5,444,000 | 6,513,000 | |
Purchases of investment securities available-for-sale | (22,011,000) | (250,000) | |
Redemption of certificates of deposits held for investment | 2,935,000 | 1,715,000 | |
Purchases of FHLB stock | (450,000) | (308,000) | |
Net decrease (increase) in loans outstanding | 9,250,000 | (30,366,000) | |
Disposal (purchases) of bank premises and equipment | 1,226,000 | (265,000) | |
Proceeds from sales of foreclosed assets | 301,000 | 240,000 | |
Net cash provided by (used in) investing activities | 1,137,000 | (14,228,000) | |
Cash flows from financing activities: | |||
Net proceeds from borrowings | 10,000,000 | 10,000,000 | |
Net increase in deposit accounts | 6,621,000 | 9,441,000 | |
Proceeds from issuance of common stock | 213,000 | 159,000 | |
Cash dividends paid | (60,000) | 0 | |
Shares withheld for payment of taxes | 0 | (71,000) | |
Net cash provided by financing activities | 16,774,000 | 19,529,000 | |
Change in cash and cash equivalents | 19,715,000 | 7,836,000 | |
Cash and cash equivalents at beginning of period | 32,563,000 | [1] | 26,755,000 |
Cash and cash equivalents at end of period | 52,278,000 | 34,591,000 | |
Supplemental disclosures of cash flow information: | |||
Interest paid on deposits and borrowings | 2,334,000 | 2,493,000 | |
Supplemental disclosures of noncash investing and financing activities: | |||
Unrealized gains on investment securities available-for-sale | 527,000 | 2,395,000 | |
Amortization of net losses on investment securities transferred to held-to-maturity | (15,000) | (20,000) | |
Transfer of loans to foreclosed assets | 0 | 1,017,000 | |
Transfer from premises and equipment to premises and equipment held for sale | $ 1,088,000 | $ 0 | |
[1] | Derived from audited consolidated financial statements. |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | Basis of Presentation The organization and business of Four Oaks Fincorp, Inc., a bank holding company incorporated under the laws of the State of North Carolina (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, 2016 . This Quarterly Report should be read in conjunction with such Annual Report. The accompanying unaudited consolidated financial statements are prepared in accordance with instructions for Form 10-Q and the applicable rules and regulations of the Securities and Exchange Commission. In management’s opinion, the financial information contained in the accompanying unaudited consolidated financial statements reflects all adjustments (consisting solely of normal recurring adjustments) necessary for a fair presentation of the financial information as of and for the six months ended June 30, 2017 and 2016 , in conformity with accounting principles generally accepted in the United States of America. The consolidated financial statements include the accounts and transactions of the Company, and its wholly-owned subsidiary, Four Oaks Bank & Trust Company (the "Bank"). Operating results for the six months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2017 . Certain amounts previously presented in the Company's 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, or Shareholders' Equity as previously reported. Significant Event On June 26, 2017, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") with United Community Banks, Inc. ("United"), the holding company for United Community Bank, Blairsville, Georgia. Under the Merger Agreement, the Company will merge with and into United (the "Merger") and the Bank will merge with and into United Community Bank, pursuant to which United and United Community Bank will be the surviving entities. Under the terms and subject to the conditions of the Merger Agreement, at the effective time of the Merger (the "Effective Time"), outstanding shares of the Company's common stock, $1.00 par value per share, will be converted into the right to receive (i) $1.90 in cash, plus (ii) 0.6178 shares of United's common stock, $1.00 par value per share ("UCBI Stock"), together with cash in lieu of any fractional shares. The Merger Agreement also includes provisions that address the treatment of the outstanding equity awards of the Company in the Merger. The Merger Agreement has been unanimously approved by the Board of Directors of each of the Company and United. The closing of the Merger is subject to the required approval of the Company’s shareholders, requisite regulatory approvals, the effectiveness of the registration statement to be filed by United with respect to the UCBI Stock to be issued in the Merger, and other customary closing conditions. The parties anticipate closing the Merger during the fourth quarter of 2017. The Merger Agreement provides certain termination rights for both the Company and United and further provides that a termination fee of $4 million (the “Break-up Fee”) will be payable by the Company upon termination of the Merger Agreement if, prior to the event giving rise to a termination right, an alternative acquisition proposal (an “Acquisition Proposal”) is made known to the Company’s Board of Directors (the “Board”) or management, or made directly to its shareholders and not withdrawn, and the Merger Agreement is terminated (i) by the Company for any reason other than a material breach of the Merger Agreement by United or the occurrence of an event having a material adverse effect on United, or (ii) by United if either (a) an event having a material adverse effect on the Company occurs, (b) the Company breaches (and fails to cure) any of its covenants or obligations in the Merger Agreement, or (c) United learns that the Company failed to disclose a material fact. If United terminates the Merger Agreement after the Board changes its recommendation to another transaction, but the Break-up Fee is not due based on the terms of the Merger Agreement, the Company would instead be required to pay United an amount equal to United’s transaction expenses. In connection with entering into the Merger Agreement, Mr. Kenneth Lehman, a member of the Board, entered into a Support Agreement (the “Support Agreement”) with United pursuant to which Mr. Lehman agreed to vote certain of his shares to approve the Merger Agreement and the Merger and against any Acquisition Proposal for the Company, unless (i) the Merger Agreement has been terminated, or (ii) the Board (a) withdraws, qualifies, or modifies in a manner adverse to United its recommendation for the Merger or (b) approves or recommends an Acquisition Proposal. Recent Accounting Pronouncements In May 2017, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting, which provides clarity and guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. ASU 2017-09 is effective for annual and interim reporting periods beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities, which shortens the amortization period for certain callable debt securities held at a premium to the earliest call date instead of to the maturity date. This update does not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 31, 2018. The Company is currently evaluating the impact of adoption this new standard will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . This update amends several aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 was effective for annual and interim reporting periods beginning after December 15, 2016. The Company adopted this guidance during the first quarter of 2017 and the adoption did not have a material effect 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 PER SHARE
NET INCOME PER SHARE | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE | NET INCOME PER SHARE Basic net income per share represents earnings credited to common shareholders divided by the weighted average number of common shares outstanding during the period. Diluted net income per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate solely to outstanding stock options and vesting of restricted stock awards. Basic and diluted net income per common share are computed based upon net income as presented in the accompanying consolidated statements of operations divided by the weighted average number of common shares outstanding or assumed to be outstanding. All share and per common share amounts have been adjusted to reflect the Reverse Stock Split (as defined below). Refer to Note J - Reverse Stock Split for additional information. The following table presents the calculation of basic and diluted net income per common share (amounts in thousands, except share data). Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Net income available to common shareholders $ 1,323 $ 872 $ 2,511 $ 1,703 Weighted average number of common shares - basic 6,515,569 6,486,792 6,510,209 6,470,743 Effect of dilutive stock options 4,637 7,450 6,076 7,206 Effect of dilutive restricted stock awards 141,299 74,807 136,227 59,160 Weighted average number of common shares - dilutive 6,661,505 6,569,049 6,652,512 6,537,109 Basic earnings per common share $ 0.20 $ 0.13 $ 0.38 $ 0.26 Diluted earnings per common share $ 0.20 $ 0.13 $ 0.38 $ 0.26 Potential shares: anti-dilutive awards 2,461 2,461 2,461 2,461 |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 6 Months Ended |
Jun. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | INVESTMENT SECURITIES The amortized cost, gross unrealized gains, gross unrealized losses, and fair values of securities available-for-sale and securities held-to-maturity as of June 30, 2017 and December 31, 2016 are as follows (amounts in thousands) : June 30, 2017 Securities Available-for-Sale: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Taxable municipal securities $ 19,840 $ 642 $ 62 $ 20,420 Tax exempt municipal securities 531 6 — 537 Mortgage-backed securities GNMA 9,873 58 38 9,893 FNMA & FHLMC 44,532 35 207 44,360 Other debt securities 1,000 — — 1,000 Total $ 75,776 $ 741 $ 307 $ 76,210 June 30, 2017 Securities Held-to-Maturity: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Taxable municipal securities $ 3,200 $ 29 $ — $ 3,229 Mortgage-backed securities GNMA 40,663 437 96 41,004 FNMA 1,535 22 — 1,557 Total $ 45,398 $ 488 $ 96 $ 45,790 December 31, 2016 Securities Available-for-Sale: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Taxable municipal securities $ 19,846 $ 350 $ 147 $ 20,049 Mortgage-backed securities GNMA 11,704 44 68 11,680 FNMA & FHLMC 25,684 — 272 25,412 Other debt securities 1,000 — — 1,000 Total $ 58,234 $ 394 $ 487 $ 58,141 December 31, 2016 Securities Held-to-Maturity: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Taxable municipal securities $ 3,380 $ 9 $ 3 $ 3,386 Mortgage-backed securities GNMA 45,968 407 187 46,188 FNMA 1,857 21 — 1,878 Total $ 51,205 $ 437 $ 190 $ 51,452 The following tables show gross unrealized losses and fair values of investment securities, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, at June 30, 2017 and December 31, 2016 (amounts in thousands) . June 30, 2017 Less Than 12 Months 12 Months or More Total Securities Available-for-Sale: # Securities Fair value Unrealized losses # Securities Fair value Unrealized losses Fair value Unrealized losses Taxable municipal securities 5 $ 3,658 $ 62 — $ — $ — $ 3,658 $ 62 Mortgage-backed securities GNMA 1 1,934 12 1 2,788 26 4,722 38 FNMA & FHLMC 13 27,927 207 — — — 27,927 207 Total temporarily impaired securities 19 $ 33,519 $ 281 1 $ 2,788 $ 26 $ 36,307 $ 307 June 30, 2017 Less Than 12 Months 12 Months or More Total Securities Held-to-Maturity: # Securities Fair value Unrealized losses # Securities Fair value Unrealized losses Fair value Unrealized losses Mortgage-backed securities GNMA 9 9,617 96 — — — 9,617 96 Total temporarily impaired securities 9 $ 9,617 $ 96 — $ — $ — $ 9,617 $ 96 December 31, 2016 Less Than 12 Months 12 Months or More Total Securities Available-for-Sale: # Securities Fair value Unrealized losses # Securities Fair value Unrealized losses Fair value Unrealized losses Taxable municipal securities 9 $ 9,988 $ 147 — $ — $ — $ 9,988 $ 147 Mortgage-backed securities GNMA 3 8,842 68 — — — 8,842 68 FNMA & FHLMC 11 25,412 272 — — — 25,412 272 Total temporarily impaired securities 23 $ 44,242 $ 487 — $ — $ — $ 44,242 $ 487 December 31, 2016 Less Than 12 Months 12 Months or More Total Securities Held-to-Maturity: # Securities Fair value Unrealized losses # Securities Fair value Unrealized losses Fair value Unrealized losses Taxable municipal securities 1 $ 525 $ 3 — $ — $ — $ 525 $ 3 Mortgage-backed securities GNMA 16 21,074 187 — — — 21,074 187 Total temporarily impaired securities 17 $ 21,599 $ 190 — $ — $ — $ 21,599 $ 190 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 it is 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 June 30, 2017 resulted from changing market interest rates compared to the yields available at the time the underlying securities were purchased. The investment portfolio included 11 of 54 Government National Mortgage Association ("GNMA") mortgage-backed securities ("MBS"), 13 of 21 Federal National Mortgage Association ("FNMA") and Federal Home Loan Mortgage Corporation ("FHLMC") MBS, and 5 of 32 taxable municipal securities that contained net unrealized losses at June 30, 2017 . 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 six months ended June 30, 2017 . The amortized cost and fair value of available-for-sale and held-to-maturity securities at June 30, 2017 by expected 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. June 30, 2017 Securities Available-for-Sale: Amortized Cost Fair Value Taxable municipal securities: Due after ten years $ 19,840 $ 20,420 Total taxable municipal securities 19,840 20,420 Tax exempt municipal securities: Due after ten years 531 537 Total tax exempt municipal securities 531 537 Mortgage-backed securities - GNMA/FNMA & FHLMC: Due after ten years 54,405 54,253 Total mortgage-backed securities - GNMA/FNMA & FHLMC 54,405 54,253 Other debt securities: Due after five years through ten years 1,000 1,000 Total other debt securities 1,000 1,000 Total available-for-sale securities $ 75,776 $ 76,210 Securities Held-to-Maturity: Taxable municipal securities: Due after one year through five years $ 2,679 $ 2,695 Due after five years through ten years 521 534 Total taxable municipal securities 3,200 3,229 Mortgage-backed securities - GNMA/FNMA: Due after one year through five years 978 993 Due after five years through ten years 7,628 7,806 Due after ten years 33,592 33,762 Total mortgage-backed securities - GNMA/FNMA 42,198 42,561 Total held-to-maturity securities $ 45,398 $ 45,790 Securities with a carrying value of approximately $33.4 million and $28.4 million at June 30, 2017 and December 31, 2016 , respectively, were pledged to secure public deposits, borrowing lines, and for other purposes required or permitted by law. Sales and calls of securities available-for-sale for the three and six months ended June 30, 2016 of $5.2 million generated net realized gains of $266,000 and no gross realized losses. There were no sales of securities available-for-sale for the three or six months ended June 30, 2017. |
LOANS AND ALLOWANCE FOR LOAN LO
LOANS AND ALLOWANCE FOR LOAN LOSSES | 6 Months Ended |
Jun. 30, 2017 | |
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, Wake, Harnett, and Duplin counties. There have been no significant changes to the loan class definitions outlined in the Company's Annual Report on Form 10-K for the year ended December 31, 2016 . The classification of loan segments as of June 30, 2017 and December 31, 2016 are summarized as follows (amounts in thousands) : June 30, 2017 December 31, 2016 Commercial and industrial $ 23,448 $ 21,742 Commercial construction and land development 45,626 46,114 Commercial real estate 250,316 253,086 Residential construction 43,706 42,660 Residential mortgage 125,047 132,971 Consumer 6,505 6,896 Consumer credit cards 1,942 2,114 Business credit cards 1,122 1,235 Other 332 502 Gross loans 498,044 507,320 Less: Net deferred loan fees (283 ) (316 ) Net loans before allowance 497,761 507,004 Allowance for loan losses (9,654 ) (9,647 ) Total net loans $ 488,107 $ 497,357 Loans held for sale $ 2,497 $ 206 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 on at least a quarterly basis, which includes a review of loans both specifically and collectively evaluated for impairment. The following tables are an analysis of the allowance for loan losses by loan segment as of and for the three and six months ended June 30, 2017 and 2016 and as of and for the twelve months ended December 31, 2016 (amounts in thousands) . Three Months Ended June 30, 2017 Real Estate Allowances for loan losses: Commercial and Industrial Commercial Construction and Land Development Commercial Real Estate Residential Construction Residential Mortgage Consumer Other Totals Balance, beginning of period $ 50 $ 4,989 $ 3,082 $ 301 $ 997 $ 166 $ 35 $ 9,620 Provision for loan losses 6 (4 ) (19 ) 16 (3 ) 3 1 — Loans charged-off — — — — (1 ) (30 ) — (31 ) Recoveries 12 20 1 — 8 24 — 65 Net recoveries (charge-offs) 12 20 1 — 7 (6 ) — 34 Balance, end of period $ 68 $ 5,005 $ 3,064 $ 317 $ 1,001 $ 163 $ 36 $ 9,654 Six Months Ended June 30, 2017 Real Estate Allowances for loan losses: Commercial Commercial Commercial Residential Residential Consumer Other Totals Balance, beginning of period $ 58 $ 4,915 $ 3,198 $ 258 $ 1,078 $ 98 $ 42 $ 9,647 Provision for loan losses (3 ) 52 (136 ) 59 (72 ) 107 (7 ) — Loans charged-off (15 ) — — — (24 ) (84 ) — (123 ) Recoveries 28 38 2 — 19 42 1 130 Net recoveries (charge-offs) 13 38 2 — (5 ) (42 ) 1 7 Balance, end of period $ 68 $ 5,005 $ 3,064 $ 317 $ 1,001 $ 163 $ 36 $ 9,654 Ending balance: individually evaluated for impairment $ — $ 373 $ 465 $ — $ 160 $ 74 $ — $ 1,072 Ending balance: collectively evaluated for impairment (1) $ 68 $ 4,632 $ 2,599 $ 317 $ 841 $ 89 $ 36 $ 8,582 Loans: Balance, end of period (2) $ 24,570 $ 45,626 $ 250,316 $ 43,706 $ 125,047 $ 8,447 $ 332 $ 498,044 Ending balance: individually evaluated for impairment $ 43 $ 479 $ 2,782 $ — $ 1,636 $ 74 $ — $ 5,014 Ending balance: collectively evaluated for impairment (1) $ 24,527 $ 45,147 $ 247,534 $ 43,706 $ 123,411 $ 8,373 $ 332 $ 493,030 (1) At June 30, 2017 , there were $163,000 in impaired loans collectively evaluated for impairment with $19,000 in reserves established. (2) The commercial and industrial loan segment includes business credit cards and the consumer loan segment includes consumer credit cards. Three Months Ended June 30, 2016 Real Estate Allowances for loan losses: Commercial and Industrial Commercial Construction and Land Development Commercial Real Estate Residential Construction Residential Mortgage Consumer Other Totals Balance, beginning of period $ 252 $ 5,040 $ 2,250 $ 292 $ 1,102 $ 95 $ 53 $ 9,084 Provision for loan losses (57 ) (178 ) 242 (21 ) 34 (26 ) 6 — Loans charged-off (35 ) (97 ) — — — (29 ) — (161 ) Recoveries 22 51 — — 11 61 1 146 Net (charge-offs) recoveries (13 ) (46 ) — — 11 32 1 (15 ) Balance, end of period $ 182 $ 4,816 $ 2,492 $ 271 $ 1,147 $ 101 $ 60 $ 9,069 Six Months Ended June 30, 2016 Real Estate Allowances for loan losses: Commercial and Industrial Commercial Construction and Land Development Commercial Real Estate Residential Construction Residential Mortgage Consumer Other Totals Balance, beginning of period $ 221 $ 5,470 $ 2,268 $ 305 $ 1,191 $ 113 $ 48 $ 9,616 Provision for loan losses (29 ) (619 ) 787 (55 ) (65 ) (29 ) 10 — Loans charged-off (59 ) (97 ) (565 ) — — (70 ) — (791 ) Recoveries 49 62 2 21 21 87 2 244 Net (charge-offs) recoveries (10 ) (35 ) (563 ) 21 21 17 2 (547 ) Balance, end of period $ 182 $ 4,816 $ 2,492 $ 271 $ 1,147 $ 101 $ 60 $ 9,069 Ending balance: individually evaluated for impairment $ 1 $ 522 $ 133 $ — $ 7 $ — $ — $ 663 Ending balance: collectively evaluated for impairment (1) $ 181 $ 4,294 $ 2,359 $ 271 $ 1,140 $ 101 $ 60 $ 8,406 Loans: Balance, end of period (2) $ 24,068 $ 45,439 $ 236,962 $ 38,458 $ 133,822 $ 9,113 $ 65 $ 487,927 Ending balance: individually evaluated for impairment $ 27 $ 1,132 $ 1,813 $ 287 $ 1,517 $ — $ — $ 4,776 Ending balance: collectively evaluated for impairment (1) $ 24,041 $ 44,307 $ 235,149 $ 38,171 $ 132,305 $ 9,113 $ 65 $ 483,151 (1) At June 30, 2016 , there were $220,000 impaired loans collectively evaluated for impairment with $31,000 in reserves established. (2) The commercial and industrial loan segment includes business credit cards and the consumer loan segment includes consumer credit cards. Twelve Months Ended December 31, 2016 Real Estate Allowances for loan losses: Commercial and Industrial Commercial Construction and Land Development Commercial Real Estate Residential Construction Residential Mortgage Consumer Other Totals Balance, beginning of period $ 221 $ 5,470 $ 2,268 $ 305 $ 1,191 $ 113 $ 48 $ 9,616 Provision for loan losses (187 ) (1,114 ) 1,474 (68 ) (138 ) 33 — — Loans charged-off (73 ) (229 ) (565 ) — (45 ) (161 ) (9 ) (1,082 ) Recoveries 97 788 21 21 70 113 3 1,113 Net recoveries (charge-offs) 24 559 (544 ) 21 25 (48 ) (6 ) 31 Balance, end of period $ 58 $ 4,915 $ 3,198 $ 258 $ 1,078 $ 98 $ 42 $ 9,647 Ending balance: individually evaluated for impairment $ — $ 415 $ 530 $ — $ 39 $ — $ — $ 984 Ending balance: collectively evaluated for impairment (1) $ 58 $ 4,500 $ 2,668 $ 258 $ 1,039 $ 98 $ 42 $ 8,663 Loans: Balance, end of period (2) $ 22,977 $ 46,114 $ 253,086 $ 42,660 $ 132,971 $ 9,010 $ 502 $ 507,320 Ending balance: individually evaluated for impairment $ 24 $ 652 $ 2,866 $ — $ 1,844 $ — $ — $ 5,386 Ending balance: collectively evaluated for impairment (1) $ 22,953 $ 45,462 $ 250,220 $ 42,660 $ 131,127 $ 9,010 $ 502 $ 501,934 (1) At December 31, 2016 , there were $176,000 in impaired loans collectively evaluated for impairment with $23,000 in reserves established. (2) The commercial and industrial loan segment includes business credit cards and the consumer loan segment includes consumer credit cards. Credit Risk The Company uses an internal grading system to assign the degree of inherent risk on each individual loan and monitors trends in portfolio quality. The grade is initially assigned by the lending officer or credit administration 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, 2016 . The following tables are an analysis of the creditworthiness by loan class and credit card portfolio exposure as of June 30, 2017 and December 31, 2016 (amounts in thousands) . June 30, 2017 Real Estate Commercial and Industrial Commercial Construction and Land Development Commercial Real Estate Residential Construction Residential Mortgage Consumer Other Totals 1 - Lowest Risk $ 872 $ — $ — $ — $ — $ 1,478 $ — $ 2,350 2 - Strong 1,133 1,365 5,530 488 15,848 494 94 24,952 3 - Standard 9,709 14,158 112,358 16,607 50,864 1,256 146 205,098 4 - Acceptable 11,426 26,401 118,731 26,611 50,841 3,155 92 237,257 5 - Special Mention 258 3,074 10,256 — 5,878 48 — 19,514 6-8 - Substandard 50 628 3,441 — 1,616 74 — 5,809 $ 23,448 $ 45,626 $ 250,316 $ 43,706 $ 125,047 $ 6,505 $ 332 $ 494,980 Consumer - Credit Card Business- Credit Card Performing $ 1,930 $ 1,122 Nonperforming 12 — Total $ 1,942 $ 1,122 Total Loans $ 498,044 December 31, 2016 Real Estate Commercial and Industrial Commercial Construction and Land Development Commercial Real Estate Residential Construction Residential Mortgage Consumer Other Totals 1 - Lowest Risk $ 897 $ — $ — $ — $ — $ 1,321 $ — $ 2,218 2 - Strong 915 1,524 5,439 292 15,105 597 97 23,969 3 - Standard 9,588 13,671 116,065 12,300 56,374 1,131 311 209,440 4 - Acceptable 9,932 26,926 118,077 30,068 53,832 3,770 94 242,699 5 - Special Mention 373 3,261 10,088 — 5,804 77 — 19,603 6-8 - Substandard 37 732 3,417 — 1,856 — — 6,042 $ 21,742 $ 46,114 $ 253,086 $ 42,660 $ 132,971 $ 6,896 $ 502 $ 503,971 Consumer- Credit Card Business- Credit Card Performing $ 2,095 $ 1,214 Non Performing 19 21 Total $ 2,114 $ 1,235 Total Loans $ 507,320 Asset Quality The following tables are an age analysis of past due loans, including those on nonaccrual by loan class, as of June 30, 2017 and December 31, 2016 (amounts in thousands). June 30, 2017 30-89 Days Past Due 90 Days or More Past Due Nonaccrual Total Past Due Current Total Loans Commercial & industrial $ 21 $ — $ 51 $ 72 $ 23,376 $ 23,448 Commercial construction & land development — — 588 588 45,038 45,626 Commercial real estate — — 1,817 1,817 248,499 250,316 Residential construction — — — — 43,706 43,706 Residential mortgage 89 — 1,468 1,557 123,490 125,047 Consumer 9 — 74 83 6,422 6,505 Consumer credit cards 31 12 — 43 1,899 1,942 Business credit cards 5 — — 5 1,117 1,122 Other loans — — — — 332 332 Total $ 155 $ 12 $ 3,998 $ 4,165 $ 493,879 $ 498,044 December 31, 2016 30-89 Days 90 Days or More Past Due Nonaccrual Total Past Current Total Commercial & industrial $ — $ — $ 36 $ 36 $ 21,706 $ 21,742 Commercial construction & land development 89 — 691 780 45,334 46,114 Commercial real estate 10 — 2,153 2,163 250,923 253,086 Residential construction — — — — 42,660 42,660 Residential mortgage 295 — 1,444 1,739 131,232 132,971 Consumer 42 — — 42 6,854 6,896 Consumer credit cards 48 19 — 67 2,047 2,114 Business credit cards 9 21 — 30 1,205 1,235 Other loans — — — — 502 502 Total $ 493 $ 40 $ 4,324 $ 4,857 $ 502,463 $ 507,320 Nonperforming assets Nonperforming assets at June 30, 2017 and December 31, 2016 consist of the following (amounts in thousands) : June 30, 2017 December 31, 2016 Loans past due ninety days or more and still accruing $ 12 $ 40 Nonaccrual loans 3,998 4,324 Foreclosed assets 1,381 1,682 Total nonperforming assets $ 5,391 $ 6,046 Impaired Loans The following tables illustrate the impaired loans by loan class as of June 30, 2017 and December 31, 2016 (amounts in thousands) . June 30, 2017 As of Date Year to Date Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial and industrial $ 43 $ 44 $ — $ 45 $ — Commercial construction & land development 48 57 — 50 — Commercial real estate 1,058 1,620 — 1,089 25 Residential mortgage 1,476 1,577 — 1,499 7 Subtotal: 2,625 3,298 — 2,683 32 With an allowance recorded: Commercial and industrial 7 7 1 10 — Commercial construction & land development 541 660 386 548 — Commercial real estate 1,725 1,745 465 1,728 — Residential mortgage 205 211 165 107 — Consumer 74 76 74 76 — Subtotal: 2,552 2,699 1,091 2,469 — Totals: Commercial 3,422 4,133 852 3,470 25 Residential 1,681 1,788 165 1,606 7 Consumer 74 76 74 76 — Grand Total $ 5,177 $ 5,997 $ 1,091 $ 5,152 $ 32 December 31, 2016 As of Date Year to Date Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial and industrial $ 18 $ 19 $ — $ 21 $ — Commercial construction & land development 53 60 — 58 — Commercial real estate 1,131 1,660 — 1,189 50 Residential mortgage 1,804 1,882 — 1,881 37 Subtotal: 3,006 3,621 — 3,149 87 With an allowance recorded: Commercial and industrial 18 18 2 17 — Commercial construction & land development 638 763 420 660 11 Commercial real estate 1,736 1,739 529 1,741 36 Residential mortgage 164 208 56 191 13 Subtotal: 2,556 2,728 1,007 2,609 60 Totals: Commercial 3,594 4,259 951 3,686 97 Residential 1,968 2,090 56 2,072 50 Grand Total: $ 5,562 $ 6,349 $ 1,007 $ 5,758 $ 147 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 Bank grants a concession through a modification of the original loan agreement that would not otherwise be considered. Generally concessions are granted as a result of a borrower's inability to meet the contractual repayment obligations of the initial loan terms and in the interest of improving the likelihood of recovery of the loan. We may grant these concessions by a number of means such as (1) forgiving principal or interest, (2) reducing the stated interest rate to a below market rate, (3) deferring principal payments, (4) changing repayment terms from amortizing to interest only, (5) extending the repayment period, or (6) accepting a change in terms based upon a bankruptcy plan. However, the Bank only restructures loans for borrowers that demonstrate the willingness and capacity to repay the loan under reasonable terms and where the Bank has sufficient protection provided by the cash flow of the underlying collateral or business. The Bank'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 does not perform under the restructured terms, the loan is placed on nonaccrual status. 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. The following table provides the total recorded investment in modified as TDRs at June 30, 2017 and December 31, 2016 (amounts in thousands). June 30, 2017 Accrual Nonaccrual Total TDRs Allowance for Loan Losses Allocated Commercial & industrial $ — $ 43 $ 43 $ — Commercial real estate 965 339 1,304 102 Residential mortgage 213 253 466 — Total modifications $ 1,178 $ 635 $ 1,813 $ 102 December 31, 2016 Accrual Nonaccrual Total TDRs Allowance for Loan Losses Allocated Commercial & industrial $ — $ 24 $ 24 $ 1 Commercial real estate 714 657 1,371 155 Residential mortgage 474 121 595 — Total modifications $ 1,188 $ 802 $ 1,990 $ 156 The table below provides a summary of those loans modified as TDRs for the three and six months ended June 30, 2017 (amounts in thousands) . There were no new TDRs made to borrowers for the three and six months ended June 30, 2016 . Three Months Ended Six Months Ended June 30, 2017 June 30, 2017 Number of loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Extended payment terms: Commercial & industrial — $ — $ — 1 $ 45 $ 45 Subtotal — $ — $ — 1 $ 45 $ 45 Total — $ — $ — 1 $ 45 $ 45 Current Bank policy considers a loan to be in payment default at the time that the loan is placed on nonaccrual. For the three months ended June 30, 2017 , there were no payment defaults on loans that were modified during the previous twelve months. For the six months ended June 30, 2017 , payment defaults occurred on one loan totaling $253,000 which was modified during the previous twelve months. For the three and six months ended June 30, 2016 , there were no payment defaults on loans that were modified during the previous twelve months. There have been eight TDRs executed during the previous twelve months, of which four have been paid in full. Additionally, three TDRs totaling $627,000 are paying as agreed in the restructure and one TDR totaling $253,000 was converted to non-accrual. The table below details successes and failures of TDRs that the Bank has entered into during the twelve months ended June 30, 2017 (amounts in thousands) . Twelve Months Ended June 30, 2017 Paid in full Paying as restructured Converted to nonaccrual Foreclosure/Default Number of loans Recorded Investment Number of loans Recorded Investment Number of loans Recorded Investment Number of loans Recorded Investment (amounts in thousands, except number of loans) Extended payment terms 3 $ — 3 $ 627 1 $ 253 — $ — Other 1 — — — — — — — Total 4 $ — 3 $ 627 1 $ 253 — $ — |
BORROWINGS
BORROWINGS | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
BORROWINGS | BORROWINGS At June 30, 2017 and December 31, 2016 , borrowed funds included the following Federal Home Loan Bank ("FHLB") advances (amounts in thousands). Origination Date Maturity Date Interest Rate June 30, 2017 February 4, 2008 February 5, 2018 2.06% Fixed $ 10,000 June 5, 2008 June 5, 2018 2.25% Fixed 5,000 June 5, 2008 June 5, 2018 2.55% Fixed 5,000 September 18, 2008 September 18, 2018 2.71% Fixed 10,000 February 10, 2016 August 9, 2017 0.73% Fixed 10,000 April 29, 2016 (1) April 29, 2019 2.54% Fixed 5,000 April 29, 2016 (1) April 29, 2019 2.62% Fixed 5,000 April 29, 2016 (1) April 29, 2019 2.83% Fixed 10,000 May 25, 2016 May 25, 2018 1.13% Fixed 10,000 January 9, 2017 July 7, 2017 0.76% Fixed 5,000 February 2, 2017 November 2, 2017 0.89% Fixed 5,000 $ 80,000 (1) These advances were redeemed and restructured on April 29, 2016 and were originally executed between 2007 and 2008. Origination Date Maturity Interest Rate December 31, 2016 February 4, 2008 February 5, 2018 2.06% Fixed $ 10,000 June 5, 2008 June 5, 2018 2.25% Fixed 5,000 June 5, 2008 June 5, 2018 2.55% Fixed 5,000 September 18, 2008 September 18, 2018 2.71% Fixed 10,000 February 10, 2016 August 9, 2017 0.73% Fixed 10,000 April 29, 2016 (1) April 29, 2019 2.54% Fixed 5,000 April 29, 2016 (1) April 29, 2019 2.62% Fixed 5,000 April 29, 2016 (1) April 29, 2019 2.83% Fixed 10,000 May 25, 2016 May 25, 2018 1.13% Fixed 10,000 $ 70,000 (1) These advances were redeemed and restructured on April 29, 2016 and were originally executed between 2007 and 2008. FHLB advances are secured by a floating lien covering the Company's loan portfolio of qualifying mortgage loans, as well as specific bonds in the investment portfolio. At June 30, 2017 , the Company had available lines of credit totaling $103.6 million with the FHLB for borrowing dependent on adequate collateralization. The weighted average rates for the above borrowings at June 30, 2017 and December 31, 2016 were 1.91% and 2.06% , respectively. In addition to the above advances, the Company has lines of credit of $37.0 million from various financial institutions to purchase federal funds on a short-term basis. The Company has no federal funds purchases outstanding as of June 30, 2017 . |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments The following table presents loan commitments at June 30, 2017 (amounts in thousands) . June 30, 2017 Commitments to extend credit $ 35,726 Undisbursed lines of credit 105,523 Financial stand-by letters of credit 835 Performance stand-by letters of credit 153 Legally binding commitments 142,237 Unused credit card lines 17,179 Total $ 159,416 Pledged Assets Certain assets are pledged to secure municipal deposits, borrowings, and borrowing capacity, subject to certain limits, at 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 securities and a floating lien covering the Company's loan portfolio of qualifying residential (1-4 units) first mortgage and commercial real estate loans. The following table provides the total market value of pledged assets by asset type at June 30, 2017 (amounts in thousands) . June 30, 2017 Securities $ 33,664 Loans 92,450 Litigation Proceedings The Company is a party to certain legal actions in the ordinary course of our business. The Company believes these actions are routine in nature and incidental to the operation of its 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 the Company's 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, its business, financial condition, results of operations, cash flows and prospects could be adversely affected. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 6 Months Ended |
Jun. 30, 2017 | |
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 have historically included equity securities traded on an active exchange, such as the New York Stock Exchange. As of June 30, 2017 , there were no Level 1 securities. Level 2 securities include taxable and tax exempt municipalities and mortgage-backed securities issued by government sponsored entities. The Company’s mortgage-backed securities were primarily issued by GNMA, FNMA, and FHLMC. As of June 30, 2017 , all of the Company’s mortgage-backed securities were agency issued and designated as Level 2 securities. Securities classified as Level 3 include other debt securities in less liquid markets and with no quoted market price. The following table presents information about assets measured at fair value on a recurring basis at June 30, 2017 and December 31, 2016 (amounts in thousands) . Fair Value Measurements at June 30, 2017, Using Total Carrying Amount in the Consolidated Balance Sheet Assets Measured at Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Available-for-Sale Securities: 6/30/2017 6/30/2017 (Level 1) (Level 2) (Level 3) Taxable municipal securities $ 20,420 $ 20,420 $ — $ 20,420 $ — Tax exempt municipal securities 537 537 — 537 — Mortgage-backed securities: GNMA 9,893 9,893 — 9,893 — FNMA & FHLMC 44,360 44,360 — 44,360 — Other debt securities 1,000 1,000 — — 1,000 Total available-for-sale securities $ 76,210 $ 76,210 $ — $ 75,210 $ 1,000 Fair Value Measurements at December 31, 2016, Using Total Carrying Amount in the Consolidated Balance Sheet Assets Measured at Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Available-for-Sale Securities: 12/31/2016 12/31/2016 (Level 1) (Level 2) (Level 3) Taxable municipal securities $ 20,049 $ 20,049 $ — $ 20,049 $ — Mortgage-backed securities: GNMA 11,680 11,680 — 11,680 — FNMA & FHLMC 25,412 25,412 — 25,412 — Other debt securities 1,000 1,000 — — 1,000 Total available-for-sale securities $ 58,141 $ 58,141 $ — $ 57,141 $ 1,000 The following table presents the reconciliation for the three and six months ended June 30, 2017 and 2016 for all Level 3 assets that are measured at fair value on a recurring basis (amounts in thousands) . Three Months Ended Six Months Ended June 30, June 30, Securities Available-for-Sale: 2017 2016 2017 2016 Beginning Balance $ 1,000 $ 500 $ 1,000 $ 500 Total realized and unrealized gains or (losses): Included in earnings — — — — Included in other comprehensive income — — — — Purchases, issuances and settlements — 250 — 250 Ending Balance $ 1,000 $ 750 $ 1,000 $ 750 Fair Value Measured on a Nonrecurring Basis. The Company measures certain assets at fair value on a nonrecurring basis, as described below. Loans Held for Sale Loans held for sale are carried at the lower of cost or market value. The fair value of loans held for sale is based on what secondary markets are currently offering for portfolios with similar characteristics. As such, the Company classifies loans held for sale as a Level 2 valuation. Impaired Loans The Company does not record loans at fair value on a recurring basis. However, when a loan is considered impaired, it is evaluated for impairment and written down to its estimated fair value or an allowance for loan losses is established. When the fair value of an impaired loan is based on an observable market price or a current appraised value with no adjustments, the Company records the impaired loan as nonrecurring Level 2. When 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. Foreclosed Assets Foreclosed assets are adjusted to fair value less estimated selling costs upon transfer of the loans to foreclosed assets. Subsequently, foreclosed assets are carried at the lower of carrying value or fair value. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. Given the lack of observable market prices for identical properties, the Company records foreclosed assets as non-recurring Level 3. Premises and Equipment Premises and equipment held for sale are carried at the lower of cost or fair value less estimate selling costs. Fair value is based upon independent market prices, appraised values of the property or management's estimation of the value of the property. Given the lack of observable market prices, the Company records premises and equipment held for sale assets as non-recurring Level 3. Assets measured at fair value on a non-recurring basis are included in the tables below at June 30, 2017 and December 31, 2016 (amounts in thousands). Fair Value Measurements at June 30, 2017, Using Total Carrying Amount in the Consolidated Balance Sheet Assets Measured at Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs 6/30/2017 6/30/2017 (Level 1) (Level 2) (Level 3) Loans held for sale $ 2,497 $ 2,497 $ — $ 2,497 $ — Impaired loans 2,038 2,038 — — 2,038 Foreclosed assets 1,381 1,381 — — 1,381 Premises and equipment held for sale 1,285 1,285 — — 1,285 Fair Value Measurements at December 31, 2016, Using Total Carrying Amount in the Consolidated Balance Sheet Assets Measured at Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs 12/31/2016 12/31/2016 (Level 1) (Level 2) (Level 3) Loans held for sale $ 206 $ 206 $ — $ 206 $ — Impaired loans 2,179 2,179 — — 2,179 Foreclosed assets 1,682 1,682 — — 1,682 Premises and equipment held for sale 2,373 2,373 — — 2,373 Quantitative Information about Level 3 Fair Value Measurements The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a recurring and nonrecurring basis at June 30, 2017 (amounts in thousands, except percentages). Total Carrying Amount at June 30, 2017 Valuation Methodology Range of Inputs Recurring measurements: Other debt securities $ 1,000 Probability of default 0% Loss given default 100% Nonrecurring measurements: Impaired loans $ 2,038 Collateral discounts 9 - 50% Foreclosed assets $ 1,381 Discounted appraisals 10 - 30% Premises and equipment held for sale $ 1,285 Discounted appraisals 10 - 50% Collateral discounts to determine fair value on impaired loans varies widely and result from the consideration of the following factors: the age of the most recent appraisal, 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. 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. Certificate of Deposits These investments are valued at carrying amounts for fair value purposes. Securities Available-for-Sale and Securities Held-to-Maturity Fair values of investment securities are based on quoted market prices. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. Loans Held For Sale The fair value of mortgage loans held for sale is based on commitments on hand from investors within the secondary market for loans with similar characteristics. Loans The fair value of loans has been estimated utilizing the net present value of future cash flows based upon contractual balances, prepayment assumptions, and applicable weighted average interest rates, adjusted for a 3% current liquidity and market discount assumption. The Company has assigned no fair value to off-balance sheet financial instruments since they are either short term in nature or subject to immediate repricing. FHLB Stock The carrying amount of FHLB stock approximates fair value. Deposits The fair value of non-maturing deposits such as noninterest-bearing demand, money market, NOW, and savings accounts, are by definition, equal to the amount payable on demand. Fair value for maturing deposits such as CDs and IRAs are estimated using a discounted cash flow approach that applies current interest rates to expected maturities. Borrowings, Subordinated Debentures, and Subordinated Promissory Notes The fair value of borrowings, subordinated debentures, and subordinated promissory notes, is based on discounting expected cash flows at the interest rate from debt with the same or similar remaining maturities and collection requirements. Accrued Interest Receivable and Payable The carrying amounts of accrued interest approximates fair value. The following table presents information for financial assets and liabilities as of June 30, 2017 and December 31, 2016 (amounts in thousands) . June 30, 2017 Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 52,278 $ 52,278 $ 52,278 $ — $ — Certificates of deposit 15,190 15,190 — 15,190 — Securities available-for-sale 76,210 76,210 — 75,210 1,000 Securities held-to-maturity 45,398 45,790 — 45,790 — Loans held for sale 2,497 2,497 — 2,497 — Loans, net 488,107 470,730 — — 470,730 FHLB stock 4,046 4,046 — 4,046 — Accrued interest receivable 1,715 1,715 — 1,715 — Financial liabilities: Deposits $ 560,152 $ 558,570 $ — $ 558,570 $ — Subordinated debentures and subordinated promissory notes 23,872 23,872 — — 23,872 Borrowings 80,000 80,585 — 80,585 — Accrued interest payable 404 404 — 404 — December 31, 2016 Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 32,563 $ 32,563 $ 32,563 $ — $ — Certificates of deposit 18,125 18,125 — 18,125 — Securities available-for-sale 58,141 58,141 — 57,141 1,000 Securities held-to-maturity 51,205 51,452 — 51,452 — Loans held for sale 206 206 — 206 — Loans, net 497,357 479,184 — — 479,184 FHLB stock 3,596 3,596 — 3,596 — Accrued interest receivable 1,598 1,598 — 1,598 — Financial liabilities: Deposits $ 553,531 $ 552,207 $ — $ 552,207 $ — Subordinated debentures and subordinated promissory notes 23,872 23,872 — — 23,872 Borrowings 70,000 70,896 — 70,896 — Accrued interest payable 384 384 — 384 — |
CAPITAL & REGULATORY INFORMATIO
CAPITAL & REGULATORY INFORMATION | 6 Months Ended |
Jun. 30, 2017 | |
Brokers and Dealers [Abstract] | |
CAPITAL & REGULATORY INFORMATION | CAPITAL & REGULATORY INFORMATION Current federal regulations require that the Company and the Bank maintain a minimum ratio of total capital to risk weighted assets of 8.0% , with at least 6.0% being in the form of Tier 1 capital, as defined in the regulations. In addition, the Company and the Bank must maintain a common equity Tier 1 capital ratio of 4.5% and a leverage ratio of 4.0% . For the Bank to be categorized as well capitalized, the Bank must maintain minimum amounts and ratios as set forth in the table below. There is no such category for well capitalized at the Company level. At June 30, 2017 , the Bank was classified as well capitalized for regulatory capital purposes. Capital ratios for the Bank and the Company are presented in the table below. Actual Ratio Minimum For Capital Adequacy Purposes Minimum to be Well Prompt Corrective Action Provisions 6/30/2017 12/31/2016 Ratio Ratio Bank Total Capital (to Risk Weighted Assets) 16.0 % 15.4 % 8.0 % 10.0 % Tier I Capital (to Risk Weighted Assets) 14.7 % 14.1 % 6.0 % 8.0 % Common Equity Tier 1 Capital (to Risk Weighted Assets) 14.7 % 14.1 % 4.5 % 6.5 % Tier I Capital (to Average Assets) 11.3 % 11.0 % 4.0 % 5.0 % Company Total Capital (to Risk Weighted Assets) 16.3 % 15.6 % 8.0 % N/A Tier I Capital (to Risk Weighted Assets) 13.0 % 12.2 % 6.0 % N/A Common Equity Tier 1 Capital (to Risk Weighted Assets) 11.2 % 10.9 % 4.5 % N/A Tier I Capital (to Average Assets) 9.9 % 9.5 % 4.0 % N/A In July 2015, the Bank entered into a Written Agreement (the "2015 Written Agreement") with the FRB replacing the Written Agreement the Company and the Bank entered into with the FRB and the North Carolina Office of the Commissioner of Banks in May 2011. Under the terms of the 2015 Written Agreement, the Bank submitted and implemented the following plans: • a written plan to assure ongoing board oversight of the Bank's management and operations; • a written program for the review of new products, services, or business lines; and • an enhanced written program for conducting appropriate levels of customer due diligence by the Bank. In addition, the Bank agreed that within 30 days after the end of each calendar quarter following the date of the 2015 Written Agreement, it would submit to FRB written progress reports detailing the form and manner of all actions taken to secure compliance with the 2015 Written Agreement and the results thereof. On May 4, 2017, the FRB announced that it terminated the 2015 Written Agreement, effective April 28, 2017. |
RESTRICTED STOCK
RESTRICTED STOCK | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
RESTRICTED STOCK | RESTRICTED STOCK A summary of the activity of the Company's restricted stock awards for the six months ended June 30, 2017 is presented below. All share and share-related information have been adjusted to reflect the Reverse Stock Split. Refer to Note J - Reverse Stock Split for additional information. Restricted Stock Weighted Average Grant-Date Fair Value Unvested at December 31, 2016: 258,070 $ 8.49 Granted — — Vested (2,000 ) 8.90 Forfeited (6,800 ) 8.08 Unvested at June 30, 2017: 249,270 $ 8.50 The Company measures the fair value of restricted shares based on the price of the Company's common stock on the grant date, and compensation expense is recorded over the vesting period. The related compensation expense recognized for restricted stock awards for the six months ended June 30, 2017 and 2016 was $300,000 and $150,000 , respectively. At June 30, 2017 , the Company estimates there was $1.7 million of total unrecognized compensation cost related to unvested restricted stock granted under the plan. That cost is expected to be recognized over the next two years . The grant-date fair value of restricted stock grants vested during the six months ended June 30, 2017 was $8.90 . |
REVERSE STOCK SPLIT
REVERSE STOCK SPLIT | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
REVERSE STOCK SPLIT | REVERSE STOCK SPLIT On March 7, 2017, the Company filed with the North Carolina Department of the Secretary of State Articles of Amendment (the “Articles of Amendment”) to the Company’s Articles of Incorporation, as amended, to effect a one for five reverse stock split of the Company’s authorized, issued, and outstanding common stock, par value $1.00 per share (the “Reverse Stock Split”). The Articles of Amendment did not change the par value of the Company’s common stock. The Articles of Amendment provided that the Reverse Stock Split became effective at 5 P.M., Eastern Time, on March 8, 2017, at which time every five shares of the Company’s issued and outstanding common stock were automatically combined into one issued and outstanding share of the Company’s common stock. No fractional shares were issued in connection with the Reverse Stock Split, and any fractional shares resulting from the Reverse Stock Split were rounded up to the nearest whole share. In addition, the number of authorized shares of common stock was reduced from 80,000,000 to 16,000,000 . |
ORGANIZATION AND BASIS OF PRE20
ORGANIZATION AND BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2017, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting, which provides clarity and guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. ASU 2017-09 is effective for annual and interim reporting periods beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities, which shortens the amortization period for certain callable debt securities held at a premium to the earliest call date instead of to the maturity date. This update does not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 31, 2018. The Company is currently evaluating the impact of adoption this new standard will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . This update amends several aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 was effective for annual and interim reporting periods beginning after December 15, 2016. The Company adopted this guidance during the first quarter of 2017 and the adoption did not have a material effect 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 PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income Per Common Share | The following table presents the calculation of basic and diluted net income per common share (amounts in thousands, except share data). Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Net income available to common shareholders $ 1,323 $ 872 $ 2,511 $ 1,703 Weighted average number of common shares - basic 6,515,569 6,486,792 6,510,209 6,470,743 Effect of dilutive stock options 4,637 7,450 6,076 7,206 Effect of dilutive restricted stock awards 141,299 74,807 136,227 59,160 Weighted average number of common shares - dilutive 6,661,505 6,569,049 6,652,512 6,537,109 Basic earnings per common share $ 0.20 $ 0.13 $ 0.38 $ 0.26 Diluted earnings per common share $ 0.20 $ 0.13 $ 0.38 $ 0.26 Potential shares: anti-dilutive awards 2,461 2,461 2,461 2,461 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses, and Fair Values of Securities Available-for-sale | June 30, 2017 Securities Available-for-Sale: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Taxable municipal securities $ 19,840 $ 642 $ 62 $ 20,420 Tax exempt municipal securities 531 6 — 537 Mortgage-backed securities GNMA 9,873 58 38 9,893 FNMA & FHLMC 44,532 35 207 44,360 Other debt securities 1,000 — — 1,000 Total $ 75,776 $ 741 $ 307 $ 76,210 December 31, 2016 Securities Available-for-Sale: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Taxable municipal securities $ 19,846 $ 350 $ 147 $ 20,049 Mortgage-backed securities GNMA 11,704 44 68 11,680 FNMA & FHLMC 25,684 — 272 25,412 Other debt securities 1,000 — — 1,000 Total $ 58,234 $ 394 $ 487 $ 58,141 |
Schedule of Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses, and Fair Values of Securities Held-to-maturity | December 31, 2016 Securities Held-to-Maturity: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Taxable municipal securities $ 3,380 $ 9 $ 3 $ 3,386 Mortgage-backed securities GNMA 45,968 407 187 46,188 FNMA 1,857 21 — 1,878 Total $ 51,205 $ 437 $ 190 $ 51,452 June 30, 2017 Securities Held-to-Maturity: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Taxable municipal securities $ 3,200 $ 29 $ — $ 3,229 Mortgage-backed securities GNMA 40,663 437 96 41,004 FNMA 1,535 22 — 1,557 Total $ 45,398 $ 488 $ 96 $ 45,790 |
Schedule of Unrealized Losses and Fair Values of Investment Securities | The following tables show gross unrealized losses and fair values of investment securities, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, at June 30, 2017 and December 31, 2016 (amounts in thousands) . June 30, 2017 Less Than 12 Months 12 Months or More Total Securities Available-for-Sale: # Securities Fair value Unrealized losses # Securities Fair value Unrealized losses Fair value Unrealized losses Taxable municipal securities 5 $ 3,658 $ 62 — $ — $ — $ 3,658 $ 62 Mortgage-backed securities GNMA 1 1,934 12 1 2,788 26 4,722 38 FNMA & FHLMC 13 27,927 207 — — — 27,927 207 Total temporarily impaired securities 19 $ 33,519 $ 281 1 $ 2,788 $ 26 $ 36,307 $ 307 June 30, 2017 Less Than 12 Months 12 Months or More Total Securities Held-to-Maturity: # Securities Fair value Unrealized losses # Securities Fair value Unrealized losses Fair value Unrealized losses Mortgage-backed securities GNMA 9 9,617 96 — — — 9,617 96 Total temporarily impaired securities 9 $ 9,617 $ 96 — $ — $ — $ 9,617 $ 96 December 31, 2016 Less Than 12 Months 12 Months or More Total Securities Available-for-Sale: # Securities Fair value Unrealized losses # Securities Fair value Unrealized losses Fair value Unrealized losses Taxable municipal securities 9 $ 9,988 $ 147 — $ — $ — $ 9,988 $ 147 Mortgage-backed securities GNMA 3 8,842 68 — — — 8,842 68 FNMA & FHLMC 11 25,412 272 — — — 25,412 272 Total temporarily impaired securities 23 $ 44,242 $ 487 — $ — $ — $ 44,242 $ 487 December 31, 2016 Less Than 12 Months 12 Months or More Total Securities Held-to-Maturity: # Securities Fair value Unrealized losses # Securities Fair value Unrealized losses Fair value Unrealized losses Taxable municipal securities 1 $ 525 $ 3 — $ — $ — $ 525 $ 3 Mortgage-backed securities GNMA 16 21,074 187 — — — 21,074 187 Total temporarily impaired securities 17 $ 21,599 $ 190 — $ — $ — $ 21,599 $ 190 |
Investment Securities Classified by Contractual Maturities | The amortized cost and fair value of available-for-sale and held-to-maturity securities at June 30, 2017 by expected 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. June 30, 2017 Securities Available-for-Sale: Amortized Cost Fair Value Taxable municipal securities: Due after ten years $ 19,840 $ 20,420 Total taxable municipal securities 19,840 20,420 Tax exempt municipal securities: Due after ten years 531 537 Total tax exempt municipal securities 531 537 Mortgage-backed securities - GNMA/FNMA & FHLMC: Due after ten years 54,405 54,253 Total mortgage-backed securities - GNMA/FNMA & FHLMC 54,405 54,253 Other debt securities: Due after five years through ten years 1,000 1,000 Total other debt securities 1,000 1,000 Total available-for-sale securities $ 75,776 $ 76,210 Securities Held-to-Maturity: Taxable municipal securities: Due after one year through five years $ 2,679 $ 2,695 Due after five years through ten years 521 534 Total taxable municipal securities 3,200 3,229 Mortgage-backed securities - GNMA/FNMA: Due after one year through five years 978 993 Due after five years through ten years 7,628 7,806 Due after ten years 33,592 33,762 Total mortgage-backed securities - GNMA/FNMA 42,198 42,561 Total held-to-maturity securities $ 45,398 $ 45,790 |
LOANS AND ALLOWANCE FOR LOAN 23
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Classification of Loan Segments | The classification of loan segments as of June 30, 2017 and December 31, 2016 are summarized as follows (amounts in thousands) : June 30, 2017 December 31, 2016 Commercial and industrial $ 23,448 $ 21,742 Commercial construction and land development 45,626 46,114 Commercial real estate 250,316 253,086 Residential construction 43,706 42,660 Residential mortgage 125,047 132,971 Consumer 6,505 6,896 Consumer credit cards 1,942 2,114 Business credit cards 1,122 1,235 Other 332 502 Gross loans 498,044 507,320 Less: Net deferred loan fees (283 ) (316 ) Net loans before allowance 497,761 507,004 Allowance for loan losses (9,654 ) (9,647 ) Total net loans $ 488,107 $ 497,357 Loans held for sale $ 2,497 $ 206 |
Analysis of the Allowance for Loan Losses by Loan Segment | The following tables are an analysis of the allowance for loan losses by loan segment as of and for the three and six months ended June 30, 2017 and 2016 and as of and for the twelve months ended December 31, 2016 (amounts in thousands) . Three Months Ended June 30, 2017 Real Estate Allowances for loan losses: Commercial and Industrial Commercial Construction and Land Development Commercial Real Estate Residential Construction Residential Mortgage Consumer Other Totals Balance, beginning of period $ 50 $ 4,989 $ 3,082 $ 301 $ 997 $ 166 $ 35 $ 9,620 Provision for loan losses 6 (4 ) (19 ) 16 (3 ) 3 1 — Loans charged-off — — — — (1 ) (30 ) — (31 ) Recoveries 12 20 1 — 8 24 — 65 Net recoveries (charge-offs) 12 20 1 — 7 (6 ) — 34 Balance, end of period $ 68 $ 5,005 $ 3,064 $ 317 $ 1,001 $ 163 $ 36 $ 9,654 Six Months Ended June 30, 2017 Real Estate Allowances for loan losses: Commercial Commercial Commercial Residential Residential Consumer Other Totals Balance, beginning of period $ 58 $ 4,915 $ 3,198 $ 258 $ 1,078 $ 98 $ 42 $ 9,647 Provision for loan losses (3 ) 52 (136 ) 59 (72 ) 107 (7 ) — Loans charged-off (15 ) — — — (24 ) (84 ) — (123 ) Recoveries 28 38 2 — 19 42 1 130 Net recoveries (charge-offs) 13 38 2 — (5 ) (42 ) 1 7 Balance, end of period $ 68 $ 5,005 $ 3,064 $ 317 $ 1,001 $ 163 $ 36 $ 9,654 Ending balance: individually evaluated for impairment $ — $ 373 $ 465 $ — $ 160 $ 74 $ — $ 1,072 Ending balance: collectively evaluated for impairment (1) $ 68 $ 4,632 $ 2,599 $ 317 $ 841 $ 89 $ 36 $ 8,582 Loans: Balance, end of period (2) $ 24,570 $ 45,626 $ 250,316 $ 43,706 $ 125,047 $ 8,447 $ 332 $ 498,044 Ending balance: individually evaluated for impairment $ 43 $ 479 $ 2,782 $ — $ 1,636 $ 74 $ — $ 5,014 Ending balance: collectively evaluated for impairment (1) $ 24,527 $ 45,147 $ 247,534 $ 43,706 $ 123,411 $ 8,373 $ 332 $ 493,030 (1) At June 30, 2017 , there were $163,000 in impaired loans collectively evaluated for impairment with $19,000 in reserves established. (2) The commercial and industrial loan segment includes business credit cards and the consumer loan segment includes consumer credit cards. Three Months Ended June 30, 2016 Real Estate Allowances for loan losses: Commercial and Industrial Commercial Construction and Land Development Commercial Real Estate Residential Construction Residential Mortgage Consumer Other Totals Balance, beginning of period $ 252 $ 5,040 $ 2,250 $ 292 $ 1,102 $ 95 $ 53 $ 9,084 Provision for loan losses (57 ) (178 ) 242 (21 ) 34 (26 ) 6 — Loans charged-off (35 ) (97 ) — — — (29 ) — (161 ) Recoveries 22 51 — — 11 61 1 146 Net (charge-offs) recoveries (13 ) (46 ) — — 11 32 1 (15 ) Balance, end of period $ 182 $ 4,816 $ 2,492 $ 271 $ 1,147 $ 101 $ 60 $ 9,069 Six Months Ended June 30, 2016 Real Estate Allowances for loan losses: Commercial and Industrial Commercial Construction and Land Development Commercial Real Estate Residential Construction Residential Mortgage Consumer Other Totals Balance, beginning of period $ 221 $ 5,470 $ 2,268 $ 305 $ 1,191 $ 113 $ 48 $ 9,616 Provision for loan losses (29 ) (619 ) 787 (55 ) (65 ) (29 ) 10 — Loans charged-off (59 ) (97 ) (565 ) — — (70 ) — (791 ) Recoveries 49 62 2 21 21 87 2 244 Net (charge-offs) recoveries (10 ) (35 ) (563 ) 21 21 17 2 (547 ) Balance, end of period $ 182 $ 4,816 $ 2,492 $ 271 $ 1,147 $ 101 $ 60 $ 9,069 Ending balance: individually evaluated for impairment $ 1 $ 522 $ 133 $ — $ 7 $ — $ — $ 663 Ending balance: collectively evaluated for impairment (1) $ 181 $ 4,294 $ 2,359 $ 271 $ 1,140 $ 101 $ 60 $ 8,406 Loans: Balance, end of period (2) $ 24,068 $ 45,439 $ 236,962 $ 38,458 $ 133,822 $ 9,113 $ 65 $ 487,927 Ending balance: individually evaluated for impairment $ 27 $ 1,132 $ 1,813 $ 287 $ 1,517 $ — $ — $ 4,776 Ending balance: collectively evaluated for impairment (1) $ 24,041 $ 44,307 $ 235,149 $ 38,171 $ 132,305 $ 9,113 $ 65 $ 483,151 (1) At June 30, 2016 , there were $220,000 impaired loans collectively evaluated for impairment with $31,000 in reserves established. (2) The commercial and industrial loan segment includes business credit cards and the consumer loan segment includes consumer credit cards. Twelve Months Ended December 31, 2016 Real Estate Allowances for loan losses: Commercial and Industrial Commercial Construction and Land Development Commercial Real Estate Residential Construction Residential Mortgage Consumer Other Totals Balance, beginning of period $ 221 $ 5,470 $ 2,268 $ 305 $ 1,191 $ 113 $ 48 $ 9,616 Provision for loan losses (187 ) (1,114 ) 1,474 (68 ) (138 ) 33 — — Loans charged-off (73 ) (229 ) (565 ) — (45 ) (161 ) (9 ) (1,082 ) Recoveries 97 788 21 21 70 113 3 1,113 Net recoveries (charge-offs) 24 559 (544 ) 21 25 (48 ) (6 ) 31 Balance, end of period $ 58 $ 4,915 $ 3,198 $ 258 $ 1,078 $ 98 $ 42 $ 9,647 Ending balance: individually evaluated for impairment $ — $ 415 $ 530 $ — $ 39 $ — $ — $ 984 Ending balance: collectively evaluated for impairment (1) $ 58 $ 4,500 $ 2,668 $ 258 $ 1,039 $ 98 $ 42 $ 8,663 Loans: Balance, end of period (2) $ 22,977 $ 46,114 $ 253,086 $ 42,660 $ 132,971 $ 9,010 $ 502 $ 507,320 Ending balance: individually evaluated for impairment $ 24 $ 652 $ 2,866 $ — $ 1,844 $ — $ — $ 5,386 Ending balance: collectively evaluated for impairment (1) $ 22,953 $ 45,462 $ 250,220 $ 42,660 $ 131,127 $ 9,010 $ 502 $ 501,934 (1) At December 31, 2016 , there were $176,000 in impaired loans collectively evaluated for impairment with $23,000 in reserves established. |
Creditworthiness Analysis by Loan Class and Credit Card Portfolio Exposure | The following tables are an analysis of the creditworthiness by loan class and credit card portfolio exposure as of June 30, 2017 and December 31, 2016 (amounts in thousands) . June 30, 2017 Real Estate Commercial and Industrial Commercial Construction and Land Development Commercial Real Estate Residential Construction Residential Mortgage Consumer Other Totals 1 - Lowest Risk $ 872 $ — $ — $ — $ — $ 1,478 $ — $ 2,350 2 - Strong 1,133 1,365 5,530 488 15,848 494 94 24,952 3 - Standard 9,709 14,158 112,358 16,607 50,864 1,256 146 205,098 4 - Acceptable 11,426 26,401 118,731 26,611 50,841 3,155 92 237,257 5 - Special Mention 258 3,074 10,256 — 5,878 48 — 19,514 6-8 - Substandard 50 628 3,441 — 1,616 74 — 5,809 $ 23,448 $ 45,626 $ 250,316 $ 43,706 $ 125,047 $ 6,505 $ 332 $ 494,980 Consumer - Credit Card Business- Credit Card Performing $ 1,930 $ 1,122 Nonperforming 12 — Total $ 1,942 $ 1,122 Total Loans $ 498,044 December 31, 2016 Real Estate Commercial and Industrial Commercial Construction and Land Development Commercial Real Estate Residential Construction Residential Mortgage Consumer Other Totals 1 - Lowest Risk $ 897 $ — $ — $ — $ — $ 1,321 $ — $ 2,218 2 - Strong 915 1,524 5,439 292 15,105 597 97 23,969 3 - Standard 9,588 13,671 116,065 12,300 56,374 1,131 311 209,440 4 - Acceptable 9,932 26,926 118,077 30,068 53,832 3,770 94 242,699 5 - Special Mention 373 3,261 10,088 — 5,804 77 — 19,603 6-8 - Substandard 37 732 3,417 — 1,856 — — 6,042 $ 21,742 $ 46,114 $ 253,086 $ 42,660 $ 132,971 $ 6,896 $ 502 $ 503,971 Consumer- Credit Card Business- Credit Card Performing $ 2,095 $ 1,214 Non Performing 19 21 Total $ 2,114 $ 1,235 Total Loans $ 507,320 |
Age Analysis of Past Due Loans | The following tables are an age analysis of past due loans, including those on nonaccrual by loan class, as of June 30, 2017 and December 31, 2016 (amounts in thousands). June 30, 2017 30-89 Days Past Due 90 Days or More Past Due Nonaccrual Total Past Due Current Total Loans Commercial & industrial $ 21 $ — $ 51 $ 72 $ 23,376 $ 23,448 Commercial construction & land development — — 588 588 45,038 45,626 Commercial real estate — — 1,817 1,817 248,499 250,316 Residential construction — — — — 43,706 43,706 Residential mortgage 89 — 1,468 1,557 123,490 125,047 Consumer 9 — 74 83 6,422 6,505 Consumer credit cards 31 12 — 43 1,899 1,942 Business credit cards 5 — — 5 1,117 1,122 Other loans — — — — 332 332 Total $ 155 $ 12 $ 3,998 $ 4,165 $ 493,879 $ 498,044 December 31, 2016 30-89 Days 90 Days or More Past Due Nonaccrual Total Past Current Total Commercial & industrial $ — $ — $ 36 $ 36 $ 21,706 $ 21,742 Commercial construction & land development 89 — 691 780 45,334 46,114 Commercial real estate 10 — 2,153 2,163 250,923 253,086 Residential construction — — — — 42,660 42,660 Residential mortgage 295 — 1,444 1,739 131,232 132,971 Consumer 42 — — 42 6,854 6,896 Consumer credit cards 48 19 — 67 2,047 2,114 Business credit cards 9 21 — 30 1,205 1,235 Other loans — — — — 502 502 Total $ 493 $ 40 $ 4,324 $ 4,857 $ 502,463 $ 507,320 |
Summary of Nonperforming Assets | Nonperforming assets at June 30, 2017 and December 31, 2016 consist of the following (amounts in thousands) : June 30, 2017 December 31, 2016 Loans past due ninety days or more and still accruing $ 12 $ 40 Nonaccrual loans 3,998 4,324 Foreclosed assets 1,381 1,682 Total nonperforming assets $ 5,391 $ 6,046 |
Summary of Impaired Loans | The following tables illustrate the impaired loans by loan class as of June 30, 2017 and December 31, 2016 (amounts in thousands) . June 30, 2017 As of Date Year to Date Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial and industrial $ 43 $ 44 $ — $ 45 $ — Commercial construction & land development 48 57 — 50 — Commercial real estate 1,058 1,620 — 1,089 25 Residential mortgage 1,476 1,577 — 1,499 7 Subtotal: 2,625 3,298 — 2,683 32 With an allowance recorded: Commercial and industrial 7 7 1 10 — Commercial construction & land development 541 660 386 548 — Commercial real estate 1,725 1,745 465 1,728 — Residential mortgage 205 211 165 107 — Consumer 74 76 74 76 — Subtotal: 2,552 2,699 1,091 2,469 — Totals: Commercial 3,422 4,133 852 3,470 25 Residential 1,681 1,788 165 1,606 7 Consumer 74 76 74 76 — Grand Total $ 5,177 $ 5,997 $ 1,091 $ 5,152 $ 32 December 31, 2016 As of Date Year to Date Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial and industrial $ 18 $ 19 $ — $ 21 $ — Commercial construction & land development 53 60 — 58 — Commercial real estate 1,131 1,660 — 1,189 50 Residential mortgage 1,804 1,882 — 1,881 37 Subtotal: 3,006 3,621 — 3,149 87 With an allowance recorded: Commercial and industrial 18 18 2 17 — Commercial construction & land development 638 763 420 660 11 Commercial real estate 1,736 1,739 529 1,741 36 Residential mortgage 164 208 56 191 13 Subtotal: 2,556 2,728 1,007 2,609 60 Totals: Commercial 3,594 4,259 951 3,686 97 Residential 1,968 2,090 56 2,072 50 Grand Total: $ 5,562 $ 6,349 $ 1,007 $ 5,758 $ 147 |
Schedule of Loans Modified as TDRs | The following table provides the total recorded investment in modified as TDRs at June 30, 2017 and December 31, 2016 (amounts in thousands). June 30, 2017 Accrual Nonaccrual Total TDRs Allowance for Loan Losses Allocated Commercial & industrial $ — $ 43 $ 43 $ — Commercial real estate 965 339 1,304 102 Residential mortgage 213 253 466 — Total modifications $ 1,178 $ 635 $ 1,813 $ 102 December 31, 2016 Accrual Nonaccrual Total TDRs Allowance for Loan Losses Allocated Commercial & industrial $ — $ 24 $ 24 $ 1 Commercial real estate 714 657 1,371 155 Residential mortgage 474 121 595 — Total modifications $ 1,188 $ 802 $ 1,990 $ 156 |
Troubled Debt Restructurings on Financing Receivables | The table below provides a summary of those loans modified as TDRs for the three and six months ended June 30, 2017 (amounts in thousands) . There were no new TDRs made to borrowers for the three and six months ended June 30, 2016 . Three Months Ended Six Months Ended June 30, 2017 June 30, 2017 Number of loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Extended payment terms: Commercial & industrial — $ — $ — 1 $ 45 $ 45 Subtotal — $ — $ — 1 $ 45 $ 45 Total — $ — $ — 1 $ 45 $ 45 The table below details successes and failures of TDRs that the Bank has entered into during the twelve months ended June 30, 2017 (amounts in thousands) . Twelve Months Ended June 30, 2017 Paid in full Paying as restructured Converted to nonaccrual Foreclosure/Default Number of loans Recorded Investment Number of loans Recorded Investment Number of loans Recorded Investment Number of loans Recorded Investment (amounts in thousands, except number of loans) Extended payment terms 3 $ — 3 $ 627 1 $ 253 — $ — Other 1 — — — — — — — Total 4 $ — 3 $ 627 1 $ 253 — $ — |
BORROWINGS (Tables)
BORROWINGS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Federal Home Loan Bank, Advances | At June 30, 2017 and December 31, 2016 , borrowed funds included the following Federal Home Loan Bank ("FHLB") advances (amounts in thousands). Origination Date Maturity Date Interest Rate June 30, 2017 February 4, 2008 February 5, 2018 2.06% Fixed $ 10,000 June 5, 2008 June 5, 2018 2.25% Fixed 5,000 June 5, 2008 June 5, 2018 2.55% Fixed 5,000 September 18, 2008 September 18, 2018 2.71% Fixed 10,000 February 10, 2016 August 9, 2017 0.73% Fixed 10,000 April 29, 2016 (1) April 29, 2019 2.54% Fixed 5,000 April 29, 2016 (1) April 29, 2019 2.62% Fixed 5,000 April 29, 2016 (1) April 29, 2019 2.83% Fixed 10,000 May 25, 2016 May 25, 2018 1.13% Fixed 10,000 January 9, 2017 July 7, 2017 0.76% Fixed 5,000 February 2, 2017 November 2, 2017 0.89% Fixed 5,000 $ 80,000 (1) These advances were redeemed and restructured on April 29, 2016 and were originally executed between 2007 and 2008. Origination Date Maturity Interest Rate December 31, 2016 February 4, 2008 February 5, 2018 2.06% Fixed $ 10,000 June 5, 2008 June 5, 2018 2.25% Fixed 5,000 June 5, 2008 June 5, 2018 2.55% Fixed 5,000 September 18, 2008 September 18, 2018 2.71% Fixed 10,000 February 10, 2016 August 9, 2017 0.73% Fixed 10,000 April 29, 2016 (1) April 29, 2019 2.54% Fixed 5,000 April 29, 2016 (1) April 29, 2019 2.62% Fixed 5,000 April 29, 2016 (1) April 29, 2019 2.83% Fixed 10,000 May 25, 2016 May 25, 2018 1.13% Fixed 10,000 $ 70,000 (1) These advances were redeemed and restructured on April 29, 2016 and were originally executed between 2007 and 2008. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Loan Commitments | The following table presents loan commitments at June 30, 2017 (amounts in thousands) . June 30, 2017 Commitments to extend credit $ 35,726 Undisbursed lines of credit 105,523 Financial stand-by letters of credit 835 Performance stand-by letters of credit 153 Legally binding commitments 142,237 Unused credit card lines 17,179 Total $ 159,416 |
Total Market Value of Pledged Assets by Asset Type | The following table provides the total market value of pledged assets by asset type at June 30, 2017 (amounts in thousands) . June 30, 2017 Securities $ 33,664 Loans 92,450 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Assets Measured at Fair Value on a Recurring Basis | The following table presents information about assets measured at fair value on a recurring basis at June 30, 2017 and December 31, 2016 (amounts in thousands) . Fair Value Measurements at June 30, 2017, Using Total Carrying Amount in the Consolidated Balance Sheet Assets Measured at Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Available-for-Sale Securities: 6/30/2017 6/30/2017 (Level 1) (Level 2) (Level 3) Taxable municipal securities $ 20,420 $ 20,420 $ — $ 20,420 $ — Tax exempt municipal securities 537 537 — 537 — Mortgage-backed securities: GNMA 9,893 9,893 — 9,893 — FNMA & FHLMC 44,360 44,360 — 44,360 — Other debt securities 1,000 1,000 — — 1,000 Total available-for-sale securities $ 76,210 $ 76,210 $ — $ 75,210 $ 1,000 Fair Value Measurements at December 31, 2016, Using Total Carrying Amount in the Consolidated Balance Sheet Assets Measured at Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Available-for-Sale Securities: 12/31/2016 12/31/2016 (Level 1) (Level 2) (Level 3) Taxable municipal securities $ 20,049 $ 20,049 $ — $ 20,049 $ — Mortgage-backed securities: GNMA 11,680 11,680 — 11,680 — FNMA & FHLMC 25,412 25,412 — 25,412 — Other debt securities 1,000 1,000 — — 1,000 Total available-for-sale securities $ 58,141 $ 58,141 $ — $ 57,141 $ 1,000 |
Reconciliation of Level 3 Assets Measured at Fair Value on Recurring Basis | The following table presents the reconciliation for the three and six months ended June 30, 2017 and 2016 for all Level 3 assets that are measured at fair value on a recurring basis (amounts in thousands) . Three Months Ended Six Months Ended June 30, June 30, Securities Available-for-Sale: 2017 2016 2017 2016 Beginning Balance $ 1,000 $ 500 $ 1,000 $ 500 Total realized and unrealized gains or (losses): Included in earnings — — — — Included in other comprehensive income — — — — Purchases, issuances and settlements — 250 — 250 Ending Balance $ 1,000 $ 750 $ 1,000 $ 750 |
Assets Measured at Fair Value on a Non-recurring Basis | Assets measured at fair value on a non-recurring basis are included in the tables below at June 30, 2017 and December 31, 2016 (amounts in thousands). Fair Value Measurements at June 30, 2017, Using Total Carrying Amount in the Consolidated Balance Sheet Assets Measured at Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs 6/30/2017 6/30/2017 (Level 1) (Level 2) (Level 3) Loans held for sale $ 2,497 $ 2,497 $ — $ 2,497 $ — Impaired loans 2,038 2,038 — — 2,038 Foreclosed assets 1,381 1,381 — — 1,381 Premises and equipment held for sale 1,285 1,285 — — 1,285 Fair Value Measurements at December 31, 2016, Using Total Carrying Amount in the Consolidated Balance Sheet Assets Measured at Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs 12/31/2016 12/31/2016 (Level 1) (Level 2) (Level 3) Loans held for sale $ 206 $ 206 $ — $ 206 $ — Impaired loans 2,179 2,179 — — 2,179 Foreclosed assets 1,682 1,682 — — 1,682 Premises and equipment held for sale 2,373 2,373 — — 2,373 |
Valuation Methodology and Unobservable Inputs for Level 3 Assets | The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a recurring and nonrecurring basis at June 30, 2017 (amounts in thousands, except percentages). Total Carrying Amount at June 30, 2017 Valuation Methodology Range of Inputs Recurring measurements: Other debt securities $ 1,000 Probability of default 0% Loss given default 100% Nonrecurring measurements: Impaired loans $ 2,038 Collateral discounts 9 - 50% Foreclosed assets $ 1,381 Discounted appraisals 10 - 30% Premises and equipment held for sale $ 1,285 Discounted appraisals 10 - 50% |
Information for Financial Assets and Liabilities | The following table presents information for financial assets and liabilities as of June 30, 2017 and December 31, 2016 (amounts in thousands) . June 30, 2017 Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 52,278 $ 52,278 $ 52,278 $ — $ — Certificates of deposit 15,190 15,190 — 15,190 — Securities available-for-sale 76,210 76,210 — 75,210 1,000 Securities held-to-maturity 45,398 45,790 — 45,790 — Loans held for sale 2,497 2,497 — 2,497 — Loans, net 488,107 470,730 — — 470,730 FHLB stock 4,046 4,046 — 4,046 — Accrued interest receivable 1,715 1,715 — 1,715 — Financial liabilities: Deposits $ 560,152 $ 558,570 $ — $ 558,570 $ — Subordinated debentures and subordinated promissory notes 23,872 23,872 — — 23,872 Borrowings 80,000 80,585 — 80,585 — Accrued interest payable 404 404 — 404 — December 31, 2016 Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 32,563 $ 32,563 $ 32,563 $ — $ — Certificates of deposit 18,125 18,125 — 18,125 — Securities available-for-sale 58,141 58,141 — 57,141 1,000 Securities held-to-maturity 51,205 51,452 — 51,452 — Loans held for sale 206 206 — 206 — Loans, net 497,357 479,184 — — 479,184 FHLB stock 3,596 3,596 — 3,596 — Accrued interest receivable 1,598 1,598 — 1,598 — Financial liabilities: Deposits $ 553,531 $ 552,207 $ — $ 552,207 $ — Subordinated debentures and subordinated promissory notes 23,872 23,872 — — 23,872 Borrowings 70,000 70,896 — 70,896 — Accrued interest payable 384 384 — 384 — |
CAPITAL & REGULATORY INFORMAT27
CAPITAL & REGULATORY INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Brokers and Dealers [Abstract] | |
Schedule of Capital Ratios | Capital ratios for the Bank and the Company are presented in the table below. Actual Ratio Minimum For Capital Adequacy Purposes Minimum to be Well Prompt Corrective Action Provisions 6/30/2017 12/31/2016 Ratio Ratio Bank Total Capital (to Risk Weighted Assets) 16.0 % 15.4 % 8.0 % 10.0 % Tier I Capital (to Risk Weighted Assets) 14.7 % 14.1 % 6.0 % 8.0 % Common Equity Tier 1 Capital (to Risk Weighted Assets) 14.7 % 14.1 % 4.5 % 6.5 % Tier I Capital (to Average Assets) 11.3 % 11.0 % 4.0 % 5.0 % Company Total Capital (to Risk Weighted Assets) 16.3 % 15.6 % 8.0 % N/A Tier I Capital (to Risk Weighted Assets) 13.0 % 12.2 % 6.0 % N/A Common Equity Tier 1 Capital (to Risk Weighted Assets) 11.2 % 10.9 % 4.5 % N/A Tier I Capital (to Average Assets) 9.9 % 9.5 % 4.0 % N/A |
RESTRICTED STOCK (Tables)
RESTRICTED STOCK (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Non-vested Restricted Stock Awards | A summary of the activity of the Company's restricted stock awards for the six months ended June 30, 2017 is presented below. All share and share-related information have been adjusted to reflect the Reverse Stock Split. Refer to Note J - Reverse Stock Split for additional information. Restricted Stock Weighted Average Grant-Date Fair Value Unvested at December 31, 2016: 258,070 $ 8.49 Granted — — Vested (2,000 ) 8.90 Forfeited (6,800 ) 8.08 Unvested at June 30, 2017: 249,270 $ 8.50 |
ORGANIZATION AND BASIS OF PRE29
ORGANIZATION AND BASIS OF PRESENTATION Significant Event (Details) - $ / shares | 6 Months Ended | |||
Dec. 31, 2017 | Jun. 30, 2017 | Mar. 08, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||||
Common stock, par value (in usd per share) | $ 1 | $ 1 | $ 1 | |
Scenario, Forecast | ||||
Business Acquisition [Line Items] | ||||
Common stock, par value (in usd per share) | $ 1 | |||
United | Scenario, Forecast | ||||
Business Acquisition [Line Items] | ||||
Common stock, par value (in usd per share) | $ 1 | |||
Number of shares to be received by the Company | 0.6178 | |||
Cash per share to be received by the Company (in usd per share) | $ 1.90 |
NET INCOME PER SHARE (Details)
NET INCOME PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Net income available to common shareholders | $ 1,323 | $ 872 | $ 2,511 | $ 1,703 | |
Weighted average number of common shares outstanding: | |||||
Weighted average number of common shares - basic | [1] | 6,515,569 | 6,486,792 | 6,510,209 | 6,470,743 |
Weighted average number of common shares - dilutive | [1] | 6,661,505 | 6,569,049 | 6,652,512 | 6,537,109 |
Basic earnings per common share (in usd per share) | [1] | $ 0.20 | $ 0.13 | $ 0.38 | $ 0.26 |
Diluted earnings per common share (in usd per share) | [1] | $ 0.20 | $ 0.13 | $ 0.38 | $ 0.26 |
Potential shares: anti-dilutive awards | 2,461 | 2,461 | 2,461 | 2,461 | |
Stock options | |||||
Weighted average number of common shares outstanding: | |||||
Effect of dilutive shares | 4,637 | 7,450 | 6,076 | 7,206 | |
Restricted stock awards | |||||
Weighted average number of common shares outstanding: | |||||
Effect of dilutive shares | 141,299 | 74,807 | 136,227 | 59,160 | |
[1] | Weighted average common shares outstanding used in the computation of basic and diluted net income per common share were adjusted to reflect the one for five reverse stock split that occurred on March 8, 2017. |
INVESTMENT SECURITIES (Securiti
INVESTMENT SECURITIES (Securities Available-for-sale) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | $ 75,776 | $ 58,234 | |
Gross Unrealized Gains | 741 | 394 | |
Gross Unrealized Losses | 307 | 487 | |
Fair Value | 76,210 | 58,141 | [1] |
Taxable municipal securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 19,840 | 19,846 | |
Gross Unrealized Gains | 642 | 350 | |
Gross Unrealized Losses | 62 | 147 | |
Fair Value | 20,420 | 20,049 | |
Tax exempt municipal securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 531 | ||
Gross Unrealized Gains | 6 | ||
Gross Unrealized Losses | 0 | ||
Fair Value | 537 | ||
Mortgage-backed Securities GNMA | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 9,873 | 11,704 | |
Gross Unrealized Gains | 58 | 44 | |
Gross Unrealized Losses | 38 | 68 | |
Fair Value | 9,893 | 11,680 | |
Mortgage-backed securities FNMA & FHLMC | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 44,532 | 25,684 | |
Gross Unrealized Gains | 35 | 0 | |
Gross Unrealized Losses | 207 | 272 | |
Fair Value | 44,360 | 25,412 | |
Other debt securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 1,000 | 1,000 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | $ 1,000 | $ 1,000 | |
[1] | Derived from audited consolidated financial statements. |
INVESTMENT SECURITIES (Securi32
INVESTMENT SECURITIES (Securities Held-to-maturity) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | |
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | $ 45,398 | $ 51,205 | [1] |
Gross Unrealized Gains | 488 | 437 | |
Gross Unrealized Losses | 96 | 190 | |
Fair Value | 45,790 | 51,452 | |
Taxable municipal securities | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | 3,200 | 3,380 | |
Gross Unrealized Gains | 29 | 9 | |
Gross Unrealized Losses | 0 | 3 | |
Fair Value | 3,229 | 3,386 | |
Mortgage-backed Securities GNMA | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | 40,663 | 45,968 | |
Gross Unrealized Gains | 437 | 407 | |
Gross Unrealized Losses | 96 | 187 | |
Fair Value | 41,004 | 46,188 | |
Mortgage-backed securities FNMA | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | 1,535 | 1,857 | |
Gross Unrealized Gains | 22 | 21 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | $ 1,557 | $ 1,878 | |
[1] | Derived from audited consolidated financial statements. |
INVESTMENT SECURITIES (Unrealiz
INVESTMENT SECURITIES (Unrealized Losses and Fair Values of Investment Securities) (Details) $ in Thousands | Jun. 30, 2017USD ($)security | Dec. 31, 2016USD ($)security |
Number of Securities | ||
Less Than 12 Months | security | 9 | 17 |
12 Months or More | security | 0 | 0 |
Fair value | ||
Less Than 12 Months | $ 9,617 | $ 21,599 |
12 Months or More | 0 | 0 |
Total | 9,617 | 21,599 |
Unrealized losses | ||
Less Than 12 Months | 96 | 190 |
12 Months or More | 0 | 0 |
Total | $ 96 | $ 190 |
Number of Securities | ||
Less Than 12 Months | security | 19 | 23 |
12 Months or More | security | 1 | 0 |
Fair value | ||
Less Than 12 Months | $ 33,519 | $ 44,242 |
12 Months or More | 2,788 | 0 |
Total | 36,307 | 44,242 |
Unrealized losses | ||
Less Than 12 Months | 281 | 487 |
12 Months or More | 26 | 0 |
Total | $ 307 | $ 487 |
Taxable municipal securities | ||
Number of Securities | ||
Less Than 12 Months | security | 1 | |
12 Months or More | security | 0 | |
Fair value | ||
Less Than 12 Months | $ 525 | |
12 Months or More | 0 | |
Total | 525 | |
Unrealized losses | ||
Less Than 12 Months | 3 | |
12 Months or More | 0 | |
Total | $ 3 | |
Number of Securities | ||
Less Than 12 Months | security | 5 | 9 |
12 Months or More | security | 0 | 0 |
Fair value | ||
Less Than 12 Months | $ 3,658 | $ 9,988 |
12 Months or More | 0 | 0 |
Total | 3,658 | 9,988 |
Unrealized losses | ||
Less Than 12 Months | 62 | 147 |
12 Months or More | 0 | 0 |
Total | $ 62 | $ 147 |
Mortgage-backed Securities GNMA | ||
Number of Securities | ||
Less Than 12 Months | security | 9 | 16 |
12 Months or More | security | 0 | 0 |
Fair value | ||
Less Than 12 Months | $ 9,617 | $ 21,074 |
12 Months or More | 0 | 0 |
Total | 9,617 | 21,074 |
Unrealized losses | ||
Less Than 12 Months | 96 | 187 |
12 Months or More | 0 | 0 |
Total | $ 96 | $ 187 |
Number of Securities | ||
Less Than 12 Months | security | 1 | 3 |
12 Months or More | security | 1 | 0 |
Fair value | ||
Less Than 12 Months | $ 1,934 | $ 8,842 |
12 Months or More | 2,788 | 0 |
Total | 4,722 | 8,842 |
Unrealized losses | ||
Less Than 12 Months | 12 | 68 |
12 Months or More | 26 | 0 |
Total | $ 38 | $ 68 |
Mortgage-backed securities FNMA & FHLMC | ||
Number of Securities | ||
Less Than 12 Months | security | 13 | 11 |
12 Months or More | security | 0 | 0 |
Fair value | ||
Less Than 12 Months | $ 27,927 | $ 25,412 |
12 Months or More | 0 | 0 |
Total | 27,927 | 25,412 |
Unrealized losses | ||
Less Than 12 Months | 207 | 272 |
12 Months or More | 0 | 0 |
Total | $ 207 | $ 272 |
INVESTMENT SECURITIES (Narrativ
INVESTMENT SECURITIES (Narrative) (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017USD ($)security | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)security | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
OTTI losses recognized | $ | $ 0 | $ 0 | |||
Carrying value of securities | $ | 33,400,000 | 33,400,000 | $ 28,400,000 | ||
Proceeds from sales and calls of investment securities available-for-sale | $ | $ 0 | $ 5,200,000 | 0 | $ 5,198,000 | |
Net realized gains | $ | 266,000 | $ 0 | 266,000 | ||
Gross realized losses | $ | $ 0 | $ 0 | |||
Mortgage-backed Securities GNMA | |||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
Number of loss positions | 11 | 11 | |||
Number of debt securities held | 54 | 54 | |||
Mortgage-backed securities FNMA & FHLMC | |||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
Number of loss positions | 13 | 13 | |||
Number of debt securities held | 21 | 21 | |||
Taxable municipal securities | |||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
Number of loss positions | 5 | 5 | |||
Number of debt securities held | 32 | 32 |
INVESTMENT SECURITIES (Securi35
INVESTMENT SECURITIES (Securities Available-for-sale by Contractual Maturities) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | |
Amortized Cost | |||
Amortized Cost | $ 75,776 | $ 58,234 | |
Fair Value | |||
Investment securities available-for-sale, at fair value | 76,210 | 58,141 | [1] |
Taxable municipal securities | |||
Amortized Cost | |||
Due after ten years | 19,840 | ||
Amortized Cost | 19,840 | 19,846 | |
Fair Value | |||
Due after ten years | 20,420 | ||
Investment securities available-for-sale, at fair value | 20,420 | 20,049 | |
Tax exempt municipal securities | |||
Amortized Cost | |||
Due after ten years | 531 | ||
Amortized Cost | 531 | ||
Fair Value | |||
Due after ten years | 537 | ||
Investment securities available-for-sale, at fair value | 537 | ||
Mortgage-backed securities - GNMA/FNMA & FHLMC | |||
Amortized Cost | |||
Due after ten years | 54,405 | ||
Amortized Cost | 54,405 | ||
Fair Value | |||
Due after ten years | 54,253 | ||
Investment securities available-for-sale, at fair value | 54,253 | ||
Other debt securities | |||
Amortized Cost | |||
Due after five years through ten years | 1,000 | ||
Amortized Cost | 1,000 | 1,000 | |
Fair Value | |||
Due after five years through ten years | 1,000 | ||
Investment securities available-for-sale, at fair value | $ 1,000 | $ 1,000 | |
[1] | Derived from audited consolidated financial statements. |
INVESTMENT SECURITIES (Securi36
INVESTMENT SECURITIES (Securities Held-to-Maturity by Contractual Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | |
Amortized Cost | |||
Amortized Cost | $ 45,398 | $ 51,205 | [1] |
Fair Value | |||
Fair Value | 45,790 | 51,452 | |
Taxable municipal securities | |||
Amortized Cost | |||
Due after one year through five years | 2,679 | ||
Due after five years through ten years | 521 | ||
Amortized Cost | 3,200 | 3,380 | |
Fair Value | |||
Due after one year through five years | 2,695 | ||
Due after five years through ten years | 534 | ||
Fair Value | 3,229 | $ 3,386 | |
Mortgage-backed securities - GNMA/FNMA | |||
Amortized Cost | |||
Due after one year through five years | 978 | ||
Due after five years through ten years | 7,628 | ||
Due after ten years | 33,592 | ||
Amortized Cost | 42,198 | ||
Fair Value | |||
Due after one year through five years | 993 | ||
Due after five years through ten years | 7,806 | ||
Due after ten years | 33,762 | ||
Fair Value | $ 42,561 | ||
[1] | Derived from audited consolidated financial statements. |
LOANS AND ALLOWANCE FOR LOAN 37
LOANS AND ALLOWANCE FOR LOAN LOSSES (Classification of Loan Segments) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Gross loans | $ 498,044 | $ 507,320 | $ 487,927 | ||||
Net deferred loan fees | (283) | (316) | |||||
Net loans before allowance | 497,761 | 507,004 | [1] | ||||
Allowance for loan losses | (9,654) | $ (9,620) | (9,647) | [1] | (9,069) | $ (9,084) | $ (9,616) |
Net loans | 488,107 | 497,357 | [1] | ||||
Loans held for sale | 2,497 | 206 | |||||
Credit Cards | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Gross loans | 1,122 | 1,235 | |||||
Commercial and Industrial | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Gross loans | 23,448 | 21,742 | |||||
Commercial Real Estate | Construction | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Gross loans | 45,626 | 46,114 | 45,439 | ||||
Allowance for loan losses | (5,005) | (4,989) | (4,915) | (4,816) | (5,040) | (5,470) | |
Commercial Real Estate | Real Estate | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Gross loans | 250,316 | 253,086 | 236,962 | ||||
Allowance for loan losses | (3,064) | (3,082) | (3,198) | (2,492) | (2,250) | (2,268) | |
Residential | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Gross loans | 125,047 | 132,971 | 133,822 | ||||
Allowance for loan losses | (1,001) | (997) | (1,078) | (1,147) | (1,102) | (1,191) | |
Residential | Construction | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Gross loans | 43,706 | 42,660 | 38,458 | ||||
Allowance for loan losses | (317) | (301) | (258) | (271) | (292) | (305) | |
Consumer | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Gross loans | 6,505 | 6,896 | |||||
Consumer | Credit Cards | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Gross loans | 1,942 | 2,114 | |||||
Commercial | Credit Cards | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Gross loans | 1,122 | 1,235 | |||||
Other | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Gross loans | 332 | 502 | 65 | ||||
Allowance for loan losses | $ (36) | $ (35) | $ (42) | $ (60) | $ (53) | $ (48) | |
[1] | Derived from audited consolidated financial statements. |
LOANS AND ALLOWANCE FOR LOAN 38
LOANS AND ALLOWANCE FOR LOAN LOSSES (Allowance for Loan Losses by Loan Class) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |||
Allowances for loan losses: | |||||||
Balance, beginning of period | $ 9,620 | $ 9,084 | $ 9,647 | [1] | $ 9,616 | $ 9,616 | |
Provision for loan losses | 0 | 0 | 0 | 0 | 0 | ||
Loans charged-off | (31) | (161) | (123) | (791) | (1,082) | ||
Recoveries | 65 | 146 | 130 | 244 | 1,113 | ||
Net recoveries (charge-offs) | 34 | (15) | 7 | (547) | 31 | ||
Balance, end of period | 9,654 | 9,069 | 9,654 | 9,069 | 9,647 | [1] | |
Ending balance: individually evaluated for impairment | 1,072 | 663 | 1,072 | 663 | 984 | ||
Ending balance: collectively evaluated for impairment | 8,582 | 8,406 | 8,582 | 8,406 | 8,663 | ||
Loans: | |||||||
Gross loans | 498,044 | 487,927 | 498,044 | 487,927 | 507,320 | ||
Ending balance: individually evaluated for impairment | 5,014 | 4,776 | 5,014 | 4,776 | 5,386 | ||
Ending balance, collectively evaluated for impairment | 493,030 | 483,151 | 493,030 | 483,151 | 501,934 | ||
Small Dollar Homogeneous Impaired Loans | |||||||
Allowances for loan losses: | |||||||
Ending balance: collectively evaluated for impairment | 19 | 31 | 19 | 31 | 23 | ||
Loans: | |||||||
Ending balance, collectively evaluated for impairment | 163 | 220 | 163 | 220 | 176 | ||
Commercial and Industrial | |||||||
Allowances for loan losses: | |||||||
Balance, beginning of period | 50 | 252 | 58 | 221 | 221 | ||
Provision for loan losses | 6 | (57) | (3) | (29) | (187) | ||
Loans charged-off | 0 | (35) | (15) | (59) | (73) | ||
Recoveries | 12 | 22 | 28 | 49 | 97 | ||
Net recoveries (charge-offs) | 12 | (13) | 13 | (10) | 24 | ||
Balance, end of period | 68 | 182 | 68 | 182 | 58 | ||
Ending balance: individually evaluated for impairment | 0 | 1 | 0 | 1 | 0 | ||
Ending balance: collectively evaluated for impairment | 68 | 181 | 68 | 181 | 58 | ||
Loans: | |||||||
Gross loans | 24,570 | 24,068 | 24,570 | 24,068 | 22,977 | ||
Ending balance: individually evaluated for impairment | 43 | 27 | 43 | 27 | 24 | ||
Ending balance, collectively evaluated for impairment | 24,527 | 24,041 | 24,527 | 24,041 | 22,953 | ||
Commercial Real Estate | Construction | |||||||
Allowances for loan losses: | |||||||
Balance, beginning of period | 4,989 | 5,040 | 4,915 | 5,470 | 5,470 | ||
Provision for loan losses | (4) | (178) | 52 | (619) | (1,114) | ||
Loans charged-off | 0 | (97) | 0 | (97) | (229) | ||
Recoveries | 20 | 51 | 38 | 62 | 788 | ||
Net recoveries (charge-offs) | 20 | (46) | 38 | (35) | 559 | ||
Balance, end of period | 5,005 | 4,816 | 5,005 | 4,816 | 4,915 | ||
Ending balance: individually evaluated for impairment | 373 | 522 | 373 | 522 | 415 | ||
Ending balance: collectively evaluated for impairment | 4,632 | 4,294 | 4,632 | 4,294 | 4,500 | ||
Loans: | |||||||
Gross loans | 45,626 | 45,439 | 45,626 | 45,439 | 46,114 | ||
Ending balance: individually evaluated for impairment | 479 | 1,132 | 479 | 1,132 | 652 | ||
Ending balance, collectively evaluated for impairment | 45,147 | 44,307 | 45,147 | 44,307 | 45,462 | ||
Commercial Real Estate | Real Estate | |||||||
Allowances for loan losses: | |||||||
Balance, beginning of period | 3,082 | 2,250 | 3,198 | 2,268 | 2,268 | ||
Provision for loan losses | (19) | 242 | (136) | 787 | 1,474 | ||
Loans charged-off | 0 | 0 | 0 | (565) | (565) | ||
Recoveries | 1 | 0 | 2 | 2 | 21 | ||
Net recoveries (charge-offs) | 1 | 0 | 2 | (563) | (544) | ||
Balance, end of period | 3,064 | 2,492 | 3,064 | 2,492 | 3,198 | ||
Ending balance: individually evaluated for impairment | 465 | 133 | 465 | 133 | 530 | ||
Ending balance: collectively evaluated for impairment | 2,599 | 2,359 | 2,599 | 2,359 | 2,668 | ||
Loans: | |||||||
Gross loans | 250,316 | 236,962 | 250,316 | 236,962 | 253,086 | ||
Ending balance: individually evaluated for impairment | 2,782 | 1,813 | 2,782 | 1,813 | 2,866 | ||
Ending balance, collectively evaluated for impairment | 247,534 | 235,149 | 247,534 | 235,149 | 250,220 | ||
Residential | |||||||
Allowances for loan losses: | |||||||
Balance, beginning of period | 997 | 1,102 | 1,078 | 1,191 | 1,191 | ||
Provision for loan losses | (3) | 34 | (72) | (65) | (138) | ||
Loans charged-off | (1) | 0 | (24) | 0 | (45) | ||
Recoveries | 8 | 11 | 19 | 21 | 70 | ||
Net recoveries (charge-offs) | 7 | 11 | (5) | 21 | 25 | ||
Balance, end of period | 1,001 | 1,147 | 1,001 | 1,147 | 1,078 | ||
Ending balance: individually evaluated for impairment | 160 | 7 | 160 | 7 | 39 | ||
Ending balance: collectively evaluated for impairment | 841 | 1,140 | 841 | 1,140 | 1,039 | ||
Loans: | |||||||
Gross loans | 125,047 | 133,822 | 125,047 | 133,822 | 132,971 | ||
Ending balance: individually evaluated for impairment | 1,636 | 1,517 | 1,636 | 1,517 | 1,844 | ||
Ending balance, collectively evaluated for impairment | 123,411 | 132,305 | 123,411 | 132,305 | 131,127 | ||
Residential | Construction | |||||||
Allowances for loan losses: | |||||||
Balance, beginning of period | 301 | 292 | 258 | 305 | 305 | ||
Provision for loan losses | 16 | (21) | 59 | (55) | (68) | ||
Loans charged-off | 0 | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 21 | 21 | ||
Net recoveries (charge-offs) | 0 | 0 | 0 | 21 | 21 | ||
Balance, end of period | 317 | 271 | 317 | 271 | 258 | ||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | ||
Ending balance: collectively evaluated for impairment | 317 | 271 | 317 | 271 | 258 | ||
Loans: | |||||||
Gross loans | 43,706 | 38,458 | 43,706 | 38,458 | 42,660 | ||
Ending balance: individually evaluated for impairment | 0 | 287 | 0 | 287 | 0 | ||
Ending balance, collectively evaluated for impairment | 43,706 | 38,171 | 43,706 | 38,171 | 42,660 | ||
Consumer | |||||||
Allowances for loan losses: | |||||||
Balance, beginning of period | 166 | 95 | 98 | 113 | 113 | ||
Provision for loan losses | 3 | (26) | 107 | (29) | 33 | ||
Loans charged-off | (30) | (29) | (84) | (70) | (161) | ||
Recoveries | 24 | 61 | 42 | 87 | 113 | ||
Net recoveries (charge-offs) | (6) | 32 | (42) | 17 | (48) | ||
Balance, end of period | 163 | 101 | 163 | 101 | 98 | ||
Ending balance: individually evaluated for impairment | 74 | 0 | 74 | 0 | 0 | ||
Ending balance: collectively evaluated for impairment | 89 | 101 | 89 | 101 | 98 | ||
Loans: | |||||||
Gross loans | 8,447 | 9,113 | 8,447 | 9,113 | 9,010 | ||
Ending balance: individually evaluated for impairment | 74 | 0 | 74 | 0 | 0 | ||
Ending balance, collectively evaluated for impairment | 8,373 | 9,113 | 8,373 | 9,113 | 9,010 | ||
Other | |||||||
Allowances for loan losses: | |||||||
Balance, beginning of period | 35 | 53 | 42 | 48 | 48 | ||
Provision for loan losses | 1 | 6 | (7) | 10 | 0 | ||
Loans charged-off | 0 | 0 | 0 | 0 | (9) | ||
Recoveries | 0 | 1 | 1 | 2 | 3 | ||
Net recoveries (charge-offs) | 0 | 1 | 1 | 2 | (6) | ||
Balance, end of period | 36 | 60 | 36 | 60 | 42 | ||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | ||
Ending balance: collectively evaluated for impairment | 36 | 60 | 36 | 60 | 42 | ||
Loans: | |||||||
Gross loans | 332 | 65 | 332 | 65 | 502 | ||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | ||
Ending balance, collectively evaluated for impairment | $ 332 | $ 65 | $ 332 | $ 65 | $ 502 | ||
[1] | Derived from audited consolidated financial statements. |
LOANS AND ALLOWANCE FOR LOAN 39
LOANS AND ALLOWANCE FOR LOAN LOSSES (Credit Quality) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | $ 494,980 | $ 503,971 | |
Gross loans | 498,044 | 507,320 | $ 487,927 |
1 - Lowest Risk | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 2,350 | 2,218 | |
2 - Strong | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 24,952 | 23,969 | |
3 - Standard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 205,098 | 209,440 | |
4 - Acceptable | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 237,257 | 242,699 | |
5 - Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 19,514 | 19,603 | |
6-8 - Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 5,809 | 6,042 | |
Commercial and Industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 23,448 | 21,742 | |
Gross loans | 24,570 | 22,977 | 24,068 |
Commercial and Industrial | 1 - Lowest Risk | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 872 | 897 | |
Commercial and Industrial | 2 - Strong | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 1,133 | 915 | |
Commercial and Industrial | 3 - Standard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 9,709 | 9,588 | |
Commercial and Industrial | 4 - Acceptable | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 11,426 | 9,932 | |
Commercial and Industrial | 5 - Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 258 | 373 | |
Commercial and Industrial | 6-8 - Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 50 | 37 | |
Commercial Real Estate | Construction | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 45,626 | 46,114 | |
Gross loans | 45,626 | 46,114 | 45,439 |
Commercial Real Estate | Construction | 1 - Lowest Risk | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 0 | 0 | |
Commercial Real Estate | Construction | 2 - Strong | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 1,365 | 1,524 | |
Commercial Real Estate | Construction | 3 - Standard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 14,158 | 13,671 | |
Commercial Real Estate | Construction | 4 - Acceptable | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 26,401 | 26,926 | |
Commercial Real Estate | Construction | 5 - Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 3,074 | 3,261 | |
Commercial Real Estate | Construction | 6-8 - Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 628 | 732 | |
Commercial Real Estate | Real Estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 250,316 | 253,086 | |
Gross loans | 250,316 | 253,086 | 236,962 |
Commercial Real Estate | Real Estate | 1 - Lowest Risk | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 0 | 0 | |
Commercial Real Estate | Real Estate | 2 - Strong | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 5,530 | 5,439 | |
Commercial Real Estate | Real Estate | 3 - Standard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 112,358 | 116,065 | |
Commercial Real Estate | Real Estate | 4 - Acceptable | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 118,731 | 118,077 | |
Commercial Real Estate | Real Estate | 5 - Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 10,256 | 10,088 | |
Commercial Real Estate | Real Estate | 6-8 - Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 3,441 | 3,417 | |
Residential | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 125,047 | 132,971 | |
Gross loans | 125,047 | 132,971 | 133,822 |
Residential | 1 - Lowest Risk | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 0 | 0 | |
Residential | 2 - Strong | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 15,848 | 15,105 | |
Residential | 3 - Standard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 50,864 | 56,374 | |
Residential | 4 - Acceptable | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 50,841 | 53,832 | |
Residential | 5 - Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 5,878 | 5,804 | |
Residential | 6-8 - Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 1,616 | 1,856 | |
Residential | Construction | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 43,706 | 42,660 | |
Gross loans | 43,706 | 42,660 | 38,458 |
Residential | Construction | 1 - Lowest Risk | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 0 | 0 | |
Residential | Construction | 2 - Strong | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 488 | 292 | |
Residential | Construction | 3 - Standard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 16,607 | 12,300 | |
Residential | Construction | 4 - Acceptable | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 26,611 | 30,068 | |
Residential | Construction | 5 - Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 0 | 0 | |
Residential | Construction | 6-8 - Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 0 | 0 | |
Consumer | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 6,505 | 6,896 | |
Gross loans | 8,447 | 9,010 | 9,113 |
Consumer | 1 - Lowest Risk | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 1,478 | 1,321 | |
Consumer | 2 - Strong | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 494 | 597 | |
Consumer | 3 - Standard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 1,256 | 1,131 | |
Consumer | 4 - Acceptable | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 3,155 | 3,770 | |
Consumer | 5 - Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 48 | 77 | |
Consumer | 6-8 - Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 74 | 0 | |
Other | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 332 | 502 | |
Gross loans | 332 | 502 | $ 65 |
Other | 1 - Lowest Risk | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 0 | 0 | |
Other | 2 - Strong | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 94 | 97 | |
Other | 3 - Standard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 146 | 311 | |
Other | 4 - Acceptable | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 92 | 94 | |
Other | 5 - Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 0 | 0 | |
Other | 6-8 - Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Totals excluding credit card | 0 | 0 | |
Credit Card | Consumer- Credit Card | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit card | 1,942 | 2,114 | |
Credit Card | Consumer- Credit Card | Performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit card | 1,930 | 2,095 | |
Credit Card | Consumer- Credit Card | Nonperforming | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit card | 12 | 19 | |
Credit Card | Business- Credit Card | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit card | 1,122 | 1,235 | |
Credit Card | Business- Credit Card | Performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit card | 1,122 | 1,214 | |
Credit Card | Business- Credit Card | Nonperforming | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit card | $ 0 | $ 21 |
LOANS AND ALLOWANCE FOR LOAN 40
LOANS AND ALLOWANCE FOR LOAN LOSSES (Age Analysis of Past Due Loans) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | $ 155 | $ 493 | |
90 Days or More Past Due | 12 | 40 | |
Nonaccrual | 3,998 | 4,324 | |
Total Past Due | 4,165 | 4,857 | |
Current | 493,879 | 502,463 | |
Gross loans | 498,044 | 507,320 | $ 487,927 |
Credit Cards | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | 5 | 9 | |
90 Days or More Past Due | 0 | 21 | |
Nonaccrual | 0 | 0 | |
Total Past Due | 5 | 30 | |
Current | 1,117 | 1,205 | |
Gross loans | 1,122 | 1,235 | |
Commercial and Industrial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | 21 | 0 | |
90 Days or More Past Due | 0 | 0 | |
Nonaccrual | 51 | 36 | |
Total Past Due | 72 | 36 | |
Current | 23,376 | 21,706 | |
Gross loans | 23,448 | 21,742 | |
Commercial Real Estate | Construction | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | 0 | 89 | |
90 Days or More Past Due | 0 | 0 | |
Nonaccrual | 588 | 691 | |
Total Past Due | 588 | 780 | |
Current | 45,038 | 45,334 | |
Gross loans | 45,626 | 46,114 | 45,439 |
Commercial Real Estate | Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | 0 | 10 | |
90 Days or More Past Due | 0 | 0 | |
Nonaccrual | 1,817 | 2,153 | |
Total Past Due | 1,817 | 2,163 | |
Current | 248,499 | 250,923 | |
Gross loans | 250,316 | 253,086 | 236,962 |
Residential | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | 89 | 295 | |
90 Days or More Past Due | 0 | 0 | |
Nonaccrual | 1,468 | 1,444 | |
Total Past Due | 1,557 | 1,739 | |
Current | 123,490 | 131,232 | |
Gross loans | 125,047 | 132,971 | 133,822 |
Residential | Construction | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | 0 | 0 | |
90 Days or More Past Due | 0 | 0 | |
Nonaccrual | 0 | 0 | |
Total Past Due | 0 | 0 | |
Current | 43,706 | 42,660 | |
Gross loans | 43,706 | 42,660 | 38,458 |
Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | 9 | 42 | |
90 Days or More Past Due | 0 | 0 | |
Nonaccrual | 74 | 0 | |
Total Past Due | 83 | 42 | |
Current | 6,422 | 6,854 | |
Gross loans | 6,505 | 6,896 | |
Consumer | Credit Cards | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | 31 | 48 | |
90 Days or More Past Due | 12 | 19 | |
Nonaccrual | 0 | 0 | |
Total Past Due | 43 | 67 | |
Current | 1,899 | 2,047 | |
Gross loans | 1,942 | 2,114 | |
Other | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | 0 | 0 | |
90 Days or More Past Due | 0 | 0 | |
Nonaccrual | 0 | 0 | |
Total Past Due | 0 | 0 | |
Current | 332 | 502 | |
Gross loans | $ 332 | $ 502 | $ 65 |
LOANS AND ALLOWANCE FOR LOAN 41
LOANS AND ALLOWANCE FOR LOAN LOSSES (Nonperforming Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | |
Loans and Leases Receivable Disclosure [Abstract] | |||
Loans past due ninety days or more and still accruing | $ 12 | $ 40 | |
Nonaccrual loans | 3,998 | 4,324 | |
Foreclosed assets | 1,381 | 1,682 | [1] |
Total nonperforming assets | $ 5,391 | $ 6,046 | |
[1] | Derived from audited consolidated financial statements. |
LOANS AND ALLOWANCE FOR LOAN 42
LOANS AND ALLOWANCE FOR LOAN LOSSES (Impaired Loans) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Recorded Investment | ||
With no related allowance recorded | $ 2,625 | $ 3,006 |
With an allowance recorded | 2,552 | 2,556 |
Totals | 5,177 | 5,562 |
Unpaid Principal Balance | ||
With no related allowance recorded | 3,298 | 3,621 |
With an allowance recorded | 2,699 | 2,728 |
Totals | 5,997 | 6,349 |
Related Allowance | 1,091 | 1,007 |
Average Recorded Investment | ||
With no related allowance recorded | 2,683 | 3,149 |
With an allowance recorded | 2,469 | 2,609 |
Totals | 5,152 | 5,758 |
Interest Income Recognized | ||
With no related allowance recorded | 32 | 87 |
With an allowance recorded | 0 | 60 |
Totals | 32 | 147 |
Commercial | ||
Recorded Investment | ||
Totals | 3,422 | 3,594 |
Unpaid Principal Balance | ||
Totals | 4,133 | 4,259 |
Related Allowance | 852 | 951 |
Average Recorded Investment | ||
Totals | 3,470 | 3,686 |
Interest Income Recognized | ||
Totals | 25 | 97 |
Commercial and Industrial | ||
Recorded Investment | ||
With no related allowance recorded | 43 | 18 |
With an allowance recorded | 7 | 18 |
Unpaid Principal Balance | ||
With no related allowance recorded | 44 | 19 |
With an allowance recorded | 7 | 18 |
Related Allowance | 1 | 2 |
Average Recorded Investment | ||
With no related allowance recorded | 45 | 21 |
With an allowance recorded | 10 | 17 |
Interest Income Recognized | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 0 | 0 |
Commercial Real Estate | Construction | ||
Recorded Investment | ||
With no related allowance recorded | 48 | 53 |
With an allowance recorded | 541 | 638 |
Unpaid Principal Balance | ||
With no related allowance recorded | 57 | 60 |
With an allowance recorded | 660 | 763 |
Related Allowance | 386 | 420 |
Average Recorded Investment | ||
With no related allowance recorded | 50 | 58 |
With an allowance recorded | 548 | 660 |
Interest Income Recognized | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 0 | 11 |
Commercial Real Estate | Real Estate | ||
Recorded Investment | ||
With no related allowance recorded | 1,058 | 1,131 |
With an allowance recorded | 1,725 | 1,736 |
Unpaid Principal Balance | ||
With no related allowance recorded | 1,620 | 1,660 |
With an allowance recorded | 1,745 | 1,739 |
Related Allowance | 465 | 529 |
Average Recorded Investment | ||
With no related allowance recorded | 1,089 | 1,189 |
With an allowance recorded | 1,728 | 1,741 |
Interest Income Recognized | ||
With no related allowance recorded | 25 | 50 |
With an allowance recorded | 0 | 36 |
Residential | ||
Recorded Investment | ||
With no related allowance recorded | 1,476 | 1,804 |
With an allowance recorded | 205 | 164 |
Totals | 1,681 | 1,968 |
Unpaid Principal Balance | ||
With no related allowance recorded | 1,577 | 1,882 |
With an allowance recorded | 211 | 208 |
Totals | 1,788 | 2,090 |
Related Allowance | 165 | 56 |
Average Recorded Investment | ||
With no related allowance recorded | 1,499 | 1,881 |
With an allowance recorded | 107 | 191 |
Totals | 1,606 | 2,072 |
Interest Income Recognized | ||
With no related allowance recorded | 7 | 37 |
With an allowance recorded | 0 | 13 |
Totals | 7 | $ 50 |
Consumer | ||
Recorded Investment | ||
With an allowance recorded | 74 | |
Totals | 74 | |
Unpaid Principal Balance | ||
With an allowance recorded | 76 | |
Totals | 76 | |
Related Allowance | 74 | |
Average Recorded Investment | ||
With an allowance recorded | 76 | |
Totals | 76 | |
Interest Income Recognized | ||
With an allowance recorded | 0 | |
Totals | $ 0 |
LOANS AND ALLOWANCE FOR LOAN 43
LOANS AND ALLOWANCE FOR LOAN LOSSES (Total Recorded Investment Modified as TDRs) (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017USD ($)consecutive_payment | Dec. 31, 2016USD ($) | |
Loans and Leases Receivable Disclosure [Abstract] | ||
Number of consecutive payments required | consecutive_payment | 6 | |
Financing Receivable, Modifications [Line Items] | ||
Accrual | $ 1,178 | $ 1,188 |
Nonaccrual | 635 | 802 |
Total TDRs | 1,813 | 1,990 |
Allowance for Loan Losses Allocated | 102 | 156 |
Commercial & industrial | ||
Financing Receivable, Modifications [Line Items] | ||
Accrual | 0 | 0 |
Nonaccrual | 43 | 24 |
Total TDRs | 43 | 24 |
Allowance for Loan Losses Allocated | 0 | 1 |
Commercial real estate | Real Estate | ||
Financing Receivable, Modifications [Line Items] | ||
Accrual | 965 | 714 |
Nonaccrual | 339 | 657 |
Total TDRs | 1,304 | 1,371 |
Allowance for Loan Losses Allocated | 102 | 155 |
Residential mortgage | ||
Financing Receivable, Modifications [Line Items] | ||
Accrual | 213 | 474 |
Nonaccrual | 253 | 121 |
Total TDRs | 466 | 595 |
Allowance for Loan Losses Allocated | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN 44
LOANS AND ALLOWANCE FOR LOAN LOSSES (Loans Modified as TDRs) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017USD ($)loans | Jun. 30, 2016loans | Jun. 30, 2017USD ($)loans | Jun. 30, 2016loans | Jun. 30, 2017loans | |
Financing Receivable, Modifications [Line Items] | |||||
Number of loans | loans | 0 | 0 | 1 | 0 | 8 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 45 | |||
Post-Modification Outstanding Recorded Investment | $ 0 | $ 45 | |||
Commercial | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of loans | loans | 0 | 1 | |||
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 45 | |||
Post-Modification Outstanding Recorded Investment | $ 0 | $ 45 | |||
Commercial | Commercial and Industrial | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of loans | loans | 0 | 1 | |||
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 45 | |||
Post-Modification Outstanding Recorded Investment | $ 0 | $ 45 |
LOANS AND ALLOWANCE FOR LOAN 45
LOANS AND ALLOWANCE FOR LOAN LOSSES (TDR that the Bank has Entered Into) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2017USD ($)loans | Jun. 30, 2016loans | Jun. 30, 2017USD ($)loans | Jun. 30, 2016loans | Jun. 30, 2017USD ($)loans | Dec. 31, 2016USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | 0 | 0 | 1 | 0 | 8 | |
Recorded Investment | $ | $ 1,813 | $ 1,813 | $ 1,813 | $ 1,990 | ||
Number of loans | 0 | 0 | 0 | |||
Paid in full | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | 4 | |||||
Recorded Investment | $ | $ 0 | 0 | $ 0 | |||
Paying as restructured | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | 3 | |||||
Recorded Investment | $ | 627 | 627 | $ 627 | |||
Converted to nonaccrual | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | 1 | |||||
Recorded Investment | $ | 253 | $ 253 | $ 253 | |||
Number of loans | 1 | |||||
Foreclosure/Default | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | 0 | |||||
Recorded Investment | $ | $ 0 | |||||
Extended payment terms | Paid in full | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | 3 | |||||
Recorded Investment | $ | 0 | $ 0 | $ 0 | |||
Extended payment terms | Paying as restructured | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | 3 | |||||
Recorded Investment | $ | 627 | 627 | $ 627 | |||
Extended payment terms | Converted to nonaccrual | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | 1 | |||||
Recorded Investment | $ | 253 | 253 | $ 253 | |||
Extended payment terms | Foreclosure/Default | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | 0 | |||||
Recorded Investment | $ | $ 0 | |||||
Other | Paid in full | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | 1 | |||||
Recorded Investment | $ | 0 | 0 | $ 0 | |||
Other | Paying as restructured | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | 0 | |||||
Recorded Investment | $ | 0 | 0 | $ 0 | |||
Other | Converted to nonaccrual | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | 0 | |||||
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | |||
Other | Foreclosure/Default | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | 0 | |||||
Recorded Investment | $ | $ 0 |
BORROWINGS (FHLB Advances) (Det
BORROWINGS (FHLB Advances) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
FHLB Advances | $ 80,000 | $ 70,000 | [1] |
2.06% Advance Maturing February 5, 2018 | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Interest Rate | 2.06% | 2.06% | |
FHLB Advances | $ 10,000 | $ 10,000 | |
2.25% Advance Maturing June 5, 2018 | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Interest Rate | 2.25% | 2.25% | |
FHLB Advances | $ 5,000 | $ 5,000 | |
2.55% Advance Maturing June 5, 2018 | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Interest Rate | 2.55% | 2.55% | |
FHLB Advances | $ 5,000 | $ 5,000 | |
2.71% Advance Maturing September 18, 2018 | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Interest Rate | 2.71% | 2.71% | |
FHLB Advances | $ 10,000 | $ 10,000 | |
0.73% Advance Maturing August 9, 2017 | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Interest Rate | 0.73% | 0.73% | |
FHLB Advances | $ 10,000 | $ 10,000 | |
2.54% Advance Maturing April 29, 2019 | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Interest Rate | 2.54% | 2.54% | |
FHLB Advances | $ 5,000 | $ 5,000 | |
2.62% Advance Maturing April 29, 2019 | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Interest Rate | 2.62% | 2.62% | |
FHLB Advances | $ 5,000 | $ 5,000 | |
2.83% Advance Maturing April 29, 2019 | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Interest Rate | 2.83% | 2.83% | |
FHLB Advances | $ 10,000 | $ 10,000 | |
1.13% Advance Maturing May 25, 2018 | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Interest Rate | 1.13% | 1.13% | |
FHLB Advances | $ 10,000 | $ 10,000 | |
0.76% Advance Maturing July 7, 2017 | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Interest Rate | 0.76% | ||
FHLB Advances | $ 5,000 | ||
0.89% Advance Maturing November 2, 2017 | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Interest Rate | 0.89% | ||
FHLB Advances | $ 5,000 | ||
[1] | Derived from audited consolidated financial statements. |
BORROWINGS (Narrative) (Details
BORROWINGS (Narrative) (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
FHLB, available lines of credit | $ 103,600,000 | |
FHLB borrowings, weighted average interest rate | 1.91% | 2.06% |
Line of credit, various financial institutions | $ 37,000,000 | |
Federal fund purchases outstanding | $ 0 |
COMMITMENTS AND CONTINGENCIES48
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Other Commitments [Line Items] | |
Loan commitments | $ 159,416 |
Securities | 33,664 |
Loans | 92,450 |
Commitments to extend credit | |
Other Commitments [Line Items] | |
Loan commitments | 35,726 |
Undisbursed lines of credit | |
Other Commitments [Line Items] | |
Loan commitments | 105,523 |
Financial stand-by letters of credit | |
Other Commitments [Line Items] | |
Loan commitments | 835 |
Performance stand-by letters of credit | |
Other Commitments [Line Items] | |
Loan commitments | 153 |
Legally binding commitments | |
Other Commitments [Line Items] | |
Loan commitments | 142,237 |
Unused credit card lines | |
Other Commitments [Line Items] | |
Loan commitments | $ 17,179 |
FAIR VALUE MEASUREMENT (Assets
FAIR VALUE MEASUREMENT (Assets Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale, at fair value | $ 76,210 | $ 58,141 | [1] |
Taxable municipal securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale, at fair value | 20,420 | 20,049 | |
Tax exempt municipal securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale, at fair value | 537 | ||
Mortgage-backed Securities GNMA | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale, at fair value | 9,893 | 11,680 | |
Mortgage-backed securities FNMA & FHLMC | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale, at fair value | 44,360 | 25,412 | |
Other debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale, at fair value | 1,000 | 1,000 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale, at fair value | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale, at fair value | 75,210 | 57,141 | |
Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale, at fair value | 1,000 | 1,000 | |
Total Carrying Amount in the Consolidated Balance Sheet | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale, at fair value | 76,210 | 58,141 | |
Assets Measured at Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale, at fair value | 76,210 | 58,141 | |
Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
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 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Taxable municipal securities | |||
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 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Tax exempt municipal securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale, at fair value | 0 | ||
Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed Securities GNMA | |||
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 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed securities FNMA & FHLMC | |||
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 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other debt securities | |||
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 | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale, at fair value | 75,210 | 57,141 | |
Recurring Basis | Significant Other Observable Inputs (Level 2) | Taxable municipal securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale, at fair value | 20,420 | 20,049 | |
Recurring Basis | Significant Other Observable Inputs (Level 2) | Tax exempt municipal securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale, at fair value | 537 | ||
Recurring Basis | Significant Other Observable Inputs (Level 2) | Mortgage-backed Securities GNMA | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale, at fair value | 9,893 | 11,680 | |
Recurring Basis | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities FNMA & FHLMC | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale, at fair value | 44,360 | 25,412 | |
Recurring Basis | Significant Other Observable Inputs (Level 2) | Other debt securities | |||
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 | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale, at fair value | 1,000 | 1,000 | |
Recurring Basis | Significant Unobservable Inputs (Level 3) | Taxable municipal securities | |||
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 | Significant Unobservable Inputs (Level 3) | Tax exempt municipal securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale, at fair value | 0 | ||
Recurring Basis | Significant Unobservable Inputs (Level 3) | Mortgage-backed Securities GNMA | |||
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 | Significant Unobservable Inputs (Level 3) | Mortgage-backed securities FNMA & FHLMC | |||
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 | Significant Unobservable Inputs (Level 3) | Other debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale, at fair value | 1,000 | 1,000 | |
Recurring Basis | Total Carrying Amount in the Consolidated Balance Sheet | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale, at fair value | 76,210 | 58,141 | |
Recurring Basis | Total Carrying Amount in the Consolidated Balance Sheet | Taxable municipal securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale, at fair value | 20,420 | 20,049 | |
Recurring Basis | Total Carrying Amount in the Consolidated Balance Sheet | Tax exempt municipal securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale, at fair value | 537 | ||
Recurring Basis | Total Carrying Amount in the Consolidated Balance Sheet | Mortgage-backed Securities GNMA | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale, at fair value | 9,893 | 11,680 | |
Recurring Basis | Total Carrying Amount in the Consolidated Balance Sheet | Mortgage-backed securities FNMA & FHLMC | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale, at fair value | 44,360 | 25,412 | |
Recurring Basis | Total Carrying Amount in the Consolidated Balance Sheet | Other debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale, at fair value | 1,000 | 1,000 | |
Recurring Basis | Assets Measured at Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale, at fair value | 76,210 | 58,141 | |
Recurring Basis | Assets Measured at Fair Value | Taxable municipal securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale, at fair value | 20,420 | 20,049 | |
Recurring Basis | Assets Measured at Fair Value | Tax exempt municipal securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale, at fair value | 537 | ||
Recurring Basis | Assets Measured at Fair Value | Mortgage-backed Securities GNMA | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale, at fair value | 9,893 | 11,680 | |
Recurring Basis | Assets Measured at Fair Value | Mortgage-backed securities FNMA & FHLMC | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale, at fair value | 44,360 | 25,412 | |
Recurring Basis | Assets Measured at Fair Value | Other debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale, at fair value | $ 1,000 | $ 1,000 | |
[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 ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Level 3 assets measured at fair value on a recurring basis [Roll Forward] | ||||
Beginning Balance | $ 1,000 | $ 500 | $ 1,000 | $ 500 |
Total realized and unrealized gains or (losses): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Included in other comprehensive income | 0 | 0 | 0 | 0 |
Purchases, issuances and settlements | 0 | 250 | 0 | 250 |
Ending Balance | $ 1,000 | $ 750 | $ 1,000 | $ 750 |
FAIR VALUE MEASUREMENT (Asset51
FAIR VALUE MEASUREMENT (Assets Measured at Fair Value on Nonrecurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | $ 0 | $ 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 2,497 | 206 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 0 | 0 |
Total Carrying Amount in the Consolidated Balance Sheet | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 2,497 | 206 |
Assets Measured at Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 2,497 | 206 |
Nonrecurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 0 | 0 |
Impaired loans | 0 | 0 |
Foreclosed assets | 0 | 0 |
Premises and equipment held for sale | 0 | 0 |
Nonrecurring Basis | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 2,497 | 206 |
Impaired loans | 0 | 0 |
Foreclosed assets | 0 | 0 |
Premises and equipment held for sale | 0 | 0 |
Nonrecurring Basis | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 0 | 0 |
Impaired loans | 2,038 | 2,179 |
Foreclosed assets | 1,381 | 1,682 |
Premises and equipment held for sale | 1,285 | 2,373 |
Nonrecurring Basis | Total Carrying Amount in the Consolidated Balance Sheet | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 2,497 | 206 |
Impaired loans | 2,038 | 2,179 |
Foreclosed assets | 1,381 | 1,682 |
Premises and equipment held for sale | 1,285 | 2,373 |
Nonrecurring Basis | Assets Measured at Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 2,497 | 206 |
Impaired loans | 2,038 | 2,179 |
Foreclosed assets | 1,381 | 1,682 |
Premises and equipment held for sale | $ 1,285 | $ 2,373 |
FAIR VALUE MEASUREMENT (Quantit
FAIR VALUE MEASUREMENT (Quantitative Information, Unobservable Input) (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2017 | Dec. 31, 2016 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Securities available-for-sale | $ 76,210 | $ 58,141 | [1] |
Impaired loans | 5,177 | 5,562 | |
Foreclosed assets | 1,381 | 1,682 | [1] |
Premises and equipment held for sale | 1,285 | 2,373 | [1] |
Other debt securities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Securities available-for-sale | 1,000 | 1,000 | |
Significant Unobservable Inputs (Level 3) | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Securities available-for-sale | 1,000 | 1,000 | |
Significant Unobservable Inputs (Level 3) | Recurring measurements | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Securities available-for-sale | 1,000 | 1,000 | |
Significant Unobservable Inputs (Level 3) | Recurring measurements | Other debt securities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Securities available-for-sale | $ 1,000 | $ 1,000 | |
Probability of default (as a percent) | 0.00% | ||
Loss given default (as a percent) | 100.00% | ||
Significant Unobservable Inputs (Level 3) | Nonrecurring measurements | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Impaired loans | $ 2,038 | ||
Foreclosed assets | 1,381 | ||
Premises and equipment held for sale | $ 1,285 | ||
Significant Unobservable Inputs (Level 3) | Nonrecurring measurements | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Collateral discounts (as a percent) | 9.00% | ||
Significant Unobservable Inputs (Level 3) | Nonrecurring measurements | Minimum | Foreclosed assets | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discounted appraisals (as a percent) | 10.00% | ||
Significant Unobservable Inputs (Level 3) | Nonrecurring measurements | Minimum | Premises and equipment held for sale | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discounted appraisals (as a percent) | 10.00% | ||
Significant Unobservable Inputs (Level 3) | Nonrecurring measurements | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Collateral discounts (as a percent) | 50.00% | ||
Significant Unobservable Inputs (Level 3) | Nonrecurring measurements | Maximum | Foreclosed assets | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discounted appraisals (as a percent) | 30.00% | ||
Significant Unobservable Inputs (Level 3) | Nonrecurring measurements | Maximum | Premises and equipment held for sale | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discounted appraisals (as a percent) | 50.00% | ||
[1] | Derived from audited consolidated financial statements. |
FAIR VALUE MEASUREMENT (Informa
FAIR VALUE MEASUREMENT (Information on Financial Assets and Liabilities) (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2017 | Dec. 31, 2016 | ||
Financial assets: | |||
Certificates of deposit | $ 15,190 | $ 18,125 | [1] |
Securities available-for-sale | 76,210 | 58,141 | [1] |
Securities held-to-maturity | 45,790 | 51,452 | |
Level 1 | |||
Financial assets: | |||
Cash and cash equivalents | 52,278 | 32,563 | |
Certificates of deposit | 0 | 0 | |
Securities available-for-sale | 0 | 0 | |
Securities held-to-maturity | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Loans, net | 0 | 0 | |
FHLB stock | 0 | 0 | |
Accrued interest receivable | 0 | 0 | |
Financial liabilities: | |||
Deposits | 0 | 0 | |
Subordinated debentures and subordinated promissory notes | 0 | 0 | |
Borrowings | 0 | 0 | |
Accrued interest payable | 0 | 0 | |
Level 2 | |||
Financial assets: | |||
Cash and cash equivalents | 0 | 0 | |
Certificates of deposit | 15,190 | 18,125 | |
Securities available-for-sale | 75,210 | 57,141 | |
Securities held-to-maturity | 45,790 | 51,452 | |
Loans held for sale | 2,497 | 206 | |
Loans, net | 0 | 0 | |
FHLB stock | 4,046 | 3,596 | |
Accrued interest receivable | 1,715 | 1,598 | |
Financial liabilities: | |||
Deposits | 558,570 | 552,207 | |
Subordinated debentures and subordinated promissory notes | 0 | 0 | |
Borrowings | 80,585 | 70,896 | |
Accrued interest payable | 404 | 384 | |
Level 3 | |||
Financial assets: | |||
Cash and cash equivalents | 0 | 0 | |
Certificates of deposit | 0 | 0 | |
Securities available-for-sale | 1,000 | 1,000 | |
Securities held-to-maturity | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Loans, net | 470,730 | 479,184 | |
FHLB stock | 0 | 0 | |
Accrued interest receivable | 0 | 0 | |
Financial liabilities: | |||
Deposits | 0 | 0 | |
Subordinated debentures and subordinated promissory notes | 23,872 | 23,872 | |
Borrowings | 0 | 0 | |
Accrued interest payable | 0 | 0 | |
Carrying Value | |||
Financial assets: | |||
Cash and cash equivalents | 52,278 | 32,563 | |
Certificates of deposit | 15,190 | 18,125 | |
Securities available-for-sale | 76,210 | 58,141 | |
Securities held-to-maturity | 45,398 | 51,205 | |
Loans held for sale | 2,497 | 206 | |
Loans, net | 488,107 | 497,357 | |
FHLB stock | 4,046 | 3,596 | |
Accrued interest receivable | 1,715 | 1,598 | |
Financial liabilities: | |||
Deposits | 560,152 | 553,531 | |
Subordinated debentures and subordinated promissory notes | 23,872 | 23,872 | |
Borrowings | 80,000 | 70,000 | |
Accrued interest payable | 404 | 384 | |
Estimated Fair Value | |||
Financial assets: | |||
Cash and cash equivalents | 52,278 | 32,563 | |
Certificates of deposit | 15,190 | 18,125 | |
Securities available-for-sale | 76,210 | 58,141 | |
Securities held-to-maturity | 45,790 | 51,452 | |
Loans held for sale | 2,497 | 206 | |
Loans, net | 470,730 | 479,184 | |
FHLB stock | 4,046 | 3,596 | |
Accrued interest receivable | 1,715 | 1,598 | |
Financial liabilities: | |||
Deposits | 558,570 | 552,207 | |
Subordinated debentures and subordinated promissory notes | 23,872 | 23,872 | |
Borrowings | 80,585 | 70,896 | |
Accrued interest payable | $ 404 | $ 384 | |
Loans Receivable | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Adjustment for current liquidity and market discount, rate | 3.00% | ||
[1] | Derived from audited consolidated financial statements. |
CAPITAL & REGULATORY INFORMAT54
CAPITAL & REGULATORY INFORMATION (Details) | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Total Capital and Tier I Capital (to Risk Weighted Assets), Ratio | ||
Total Capital (to Risk Weighted Assets), Ratio, Actual | 16.30% | 15.60% |
Total Capital (to Risk Weighted Assets), Ratio, Minimum for Capital Adequacy Purposes | 8.00% | |
Tier I Capital (to Risk Weighted Assets), Ratio, Actual | 13.00% | 12.20% |
Tier I Capital (to Risk Weighted Assets), Ratio, Minimum for Capital Adequacy Purposes | 6.00% | |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Ratio | ||
Common Equity Tier 1 Capital (to Risk Weighted Assets), Ratio, Actual | 11.20% | 10.90% |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Ratio, Minimum For Capital Adequacy Purposes | 4.50% | |
Tier I Capital (to Average Assets), Ratio | ||
Tier I Capital (to Average Assets), Ratio, Actual | 9.90% | 9.50% |
Tier I Capital (to Average Assets), Ratio, Minimum for Capital Adequacy Purposes | 4.00% | |
Submission to FRB of written progress reports, period after the end of each calendar quarter following the 2015 Written Agreement | 30 days | |
Bank | ||
Total Capital and Tier I Capital (to Risk Weighted Assets), Ratio | ||
Total Capital (to Risk Weighted Assets), Ratio, Actual | 16.00% | 15.40% |
Total Capital (to Risk Weighted Assets), Ratio, Minimum for Capital Adequacy Purposes | 8.00% | |
Total Capital (to Risk Weighted Assets), Ratio, Minimum to be Well Capitalized under Prompt Corrective Action Provisions | 10.00% | |
Tier I Capital (to Risk Weighted Assets), Ratio, Actual | 14.70% | 14.10% |
Tier I Capital (to Risk Weighted Assets), Ratio, Minimum for Capital Adequacy Purposes | 6.00% | |
Tier I Capital (to Risk Weighted Assets), Ratio, Minimum to be Well Capitalized under Prompt Corrective Action Provisions | 8.00% | |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Ratio | ||
Common Equity Tier 1 Capital (to Risk Weighted Assets), Ratio, Actual | 14.70% | 14.10% |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Ratio, Minimum For Capital Adequacy Purposes | 4.50% | |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Ratio, Minimum to be Well Capitalized under Prompt Corrective Action Provisions | 6.50% | |
Tier I Capital (to Average Assets), Ratio | ||
Tier I Capital (to Average Assets), Ratio, Actual | 11.30% | 11.00% |
Tier I Capital (to Average Assets), Ratio, Minimum for Capital Adequacy Purposes | 4.00% | |
Tier I Capital (to Average Assets), Ratio, Minimum to be Well Capitalized under Prompt Corrective Action Provisions | 5.00% |
RESTRICTED STOCK (Non-vested Re
RESTRICTED STOCK (Non-vested Restricted Stock Awards) (Details) - Restricted Stock | 6 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Restricted Stock | |
Balance as of beginning of period (in shares) | shares | 258,070 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | (2,000) |
Forfeited (in shares) | shares | (6,800) |
Balance as of end of period (in shares) | shares | 249,270 |
Weighted Average Grant-Date Fair Value | |
Balance as of beginning of period (in usd per share) | $ / shares | $ 8.49 |
Granted (in usd per share) | $ / shares | 0 |
Vested (in usd per share) | $ / shares | 8.90 |
Forfeited (in usd per share) | $ / shares | 8.08 |
Balance as of end of period (in usd per share) | $ / shares | $ 8.50 |
RESTRICTED STOCK (Narrative) (D
RESTRICTED STOCK (Narrative) (Details) - Restricted Stock - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | $ 300 | $ 150 |
Unrecognized compensation cost | $ 1,700 | |
Unrecognized compensation cost, recognition period | 2 years | |
Grant-date fair value vested (in usd per share) | $ 8.90 |
REVERSE STOCK SPLIT (Details)
REVERSE STOCK SPLIT (Details) | Mar. 08, 2017$ / sharesshares | Jun. 30, 2017$ / sharesshares | Mar. 07, 2017shares | Dec. 31, 2016$ / sharesshares |
Equity [Abstract] | ||||
Reverse stock split ratio | 0.20 | |||
Common stock, par value (in usd per share) | $ / shares | $ 1 | $ 1 | $ 1 | |
Common stock, shares authorized | shares | 16,000,000 | 16,000,000 | 80,000,000 | 16,000,000 |