Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 12, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Registrant Name | 'FOUR OAKS FINCORP INC | ' |
Entity Central Index Key | '0001040799 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 7,959,515 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||
ASSETS | ' | ' | |
Cash and due from banks | $12,059 | $18,862 | [1] |
Interest-earning deposits | 118,113 | 164,288 | [1] |
Cash and cash equivalents | 130,172 | 183,150 | [1] |
CDs held for investment | 35,035 | 26,460 | [1] |
Investment securities available for sale, at fair value | 8,821 | 73,722 | [1] |
Investment securities held to maturity, at amortized cost | 102,173 | 20,329 | [1] |
Total investment securities | 110,994 | 94,051 | [1] |
Loans held for sale | 214 | 19,297 | [1] |
Loans | 495,989 | 497,929 | [1] |
Allowance for loan losses | -12,296 | -16,549 | [1] |
Net loans | 483,693 | 481,380 | [1] |
Accrued interest receivable | 1,570 | 1,869 | [1] |
Bank premises and equipment held for sale, net | 0 | 1,901 | [1] |
Bank premises and equipment, net | 12,834 | 13,382 | [1] |
FHLB stock | 6,076 | 6,415 | [1] |
Investment in life insurance | 14,325 | 14,139 | [1] |
Foreclosed assets | 10,443 | 15,136 | |
Other assets | 6,208 | 8,318 | [1] |
Total assets | 811,564 | 865,498 | [1] |
Deposits: | ' | ' | |
Noninterest-bearing demand | 214,918 | 189,048 | [1] |
Money market, NOW accounts and savings accounts | 160,342 | 164,614 | [1] |
Time deposits, $100,000 and over | 166,336 | 215,984 | [1] |
Other time deposits | 104,784 | 130,210 | [1] |
Total deposits | 646,380 | 699,856 | [1] |
Borrowings | 112,000 | 112,000 | [1] |
Subordinated debentures | 12,372 | 12,372 | [1] |
Subordinated promissory notes | 12,000 | 12,000 | [1] |
Accrued interest payable | 1,609 | 1,736 | [1] |
Other liabilities | 4,954 | 4,858 | [1] |
Total liabilities | 789,315 | 842,822 | [1] |
Commitments (Note B) | ' | ' | [1] |
Common stock, $1.00 par value, 80,000,000 shares authorized; 7,959,514 shares issued and outstanding at September 30, 2013 and 7,815,315 shares issued and outstanding at December 31, 2012 | 7,960 | 7,815 | [1] |
Additional paid-in capital | 34,262 | 34,192 | [1] |
Accumulated deficit | -19,988 | -20,040 | [1] |
Accumulated other comprehensive income | 15 | 709 | [1] |
Total shareholders' equity | 22,249 | 22,676 | [1] |
Total liabilities and shareholders' equity | $811,564 | $865,498 | [1] |
[1] | Derived from audited consolidated financial statements. |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Statement of Financial Position [Abstract] | ' | ' |
Common stock, par value (in dollars per share) | $1 | $1 |
Common stock, shares authorized | 80,000,000 | 80,000,000 |
Common stock, shares issued | 7,959,514 | 7,815,315 |
Common stock, shares outstanding | 7,959,514 | 7,815,315 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Interest and dividend income: | ' | ' | ' | ' |
Loans, including fees | $6,827 | $7,654 | $20,608 | $23,981 |
Investment securities: | ' | ' | ' | ' |
Taxable | 443 | 417 | 918 | 1,384 |
Dividends | 78 | 68 | 263 | 223 |
Interest-earning deposits and Federal funds sold | 164 | 163 | 498 | 460 |
Total interest and dividend income | 7,512 | 8,302 | 22,287 | 26,048 |
Interest expense: | ' | ' | ' | ' |
Deposits | 846 | 1,561 | 2,693 | 5,296 |
Borrowings | 1,025 | 1,029 | 3,041 | 3,056 |
Subordinated debentures | 51 | 57 | 153 | 173 |
Subordinated promissory notes | 257 | 260 | 763 | 776 |
Total interest expense | 2,179 | 2,907 | 6,650 | 9,301 |
Net interest income | 5,333 | 5,395 | 15,637 | 16,747 |
Provision for loan losses | 0 | 2,089 | 35 | 1,803 |
Net interest income after provision for loan losses | 5,333 | 3,306 | 15,602 | 14,944 |
Non-interest income: | ' | ' | ' | ' |
Service charges on deposit accounts | 458 | 508 | 1,333 | 1,440 |
Other service charges, commissions and fees | 947 | 661 | 2,577 | 1,962 |
Gains on sale of investment securities available for sale | 92 | 349 | 462 | 1,006 |
Total other-than-temporary impairment loss | 0 | 0 | 0 | -56 |
Portion of loss recognized in other comprehensive income | 0 | 0 | 0 | 56 |
Net impairment loss recognized in earnings | 0 | 0 | 0 | 0 |
Income from investment in life insurance | 49 | 78 | 186 | 246 |
Other non-interest income | 80 | 267 | 858 | 387 |
Total non-interest income | 1,626 | 1,863 | 5,416 | 5,041 |
Non-interest expenses: | ' | ' | ' | ' |
Salaries | 2,435 | 2,560 | 7,749 | 7,652 |
Employee benefits | 384 | 467 | 1,384 | 1,455 |
Occupancy expenses | 250 | 335 | 903 | 995 |
Equipment expenses | 354 | 340 | 1,059 | 1,108 |
Professional and consulting fees | 903 | 622 | 2,309 | 1,915 |
FDIC assessments | 371 | 527 | 1,290 | 1,645 |
Foreclosed asset-related costs, net | 697 | 870 | 1,637 | 1,963 |
Collection expenses | 234 | 290 | 925 | 1,288 |
Other | 1,252 | 1,319 | 3,710 | 3,720 |
Total non-interest expenses | 6,880 | 7,330 | 20,966 | 21,741 |
Income (loss) before income taxes | 79 | -2,161 | 52 | -1,756 |
Provision for income taxes | 0 | 0 | 0 | -175 |
Net Income (loss) | $79 | ($2,161) | $52 | ($1,581) |
Basic net income (loss) per common share (in usd per share) | $0.01 | ($0.28) | $0.01 | ($0.20) |
Diluted net income (loss) per common share (in usd per share) | $0.01 | ($0.28) | $0.01 | ($0.20) |
Weighted Average Shares Outstanding, Basic | 7,944,600 | 7,769,887 | 7,897,348 | 7,729,454 |
Weighted Average Shares Outstanding, Diluted | 7,944,600 | 7,769,887 | 7,897,348 | 7,729,454 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net income (loss) | $79 | ($2,161) | $52 | ($1,581) |
Securities available for sale: | ' | ' | ' | ' |
Unrealized gains(losses) on securities available for sale | -154 | 709 | -728 | 1,738 |
Tax benefit(expense) | 59 | -279 | 281 | -681 |
Reclassification of gains recognized in net income | -92 | -349 | -462 | -1,006 |
Tax benefit | 35 | 135 | 178 | 388 |
Amortization of unrealized gains on investment securities transferred from available-for-sale to held-to-maturity | 50 | 0 | 60 | 0 |
Tax expense | -19 | 0 | -23 | 0 |
Portion of other-than-temporary loss recognized in other comprehensive income | 0 | 0 | 0 | -56 |
Tax benefit | 0 | 0 | 0 | 22 |
Total other comprehensive income (loss) | -121 | 216 | -694 | 405 |
Comprehensive loss | ($42) | ($1,945) | ($642) | ($1,176) |
CONSOLIDATED_STATEMENT_OF_SHAR
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (UNAUDITED) (USD $) | Total | Common stock [Member] | Additional paid-in capital [Member] | Accumulated deficit [Member] | Accumulated other comprehensive income [Member] | |
In Thousands, except Share data, unless otherwise specified | ||||||
BEGINNING BALANCE at Dec. 31, 2011 | $29,692 | $7,663 | $34,048 | ($13,071) | $1,052 | |
BEGINNING BALANCE (in shares) at Dec. 31, 2011 | ' | 7,663,387 | ' | ' | ' | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | |
Net income (loss) | -1,581 | ' | ' | -1,581 | ' | |
Other comprehensive income (loss) | 405 | ' | ' | ' | 405 | |
Issuance of common stock (in shares) | ' | 122,131 | ' | ' | ' | |
Issuance of common stock | 199 | 123 | 76 | ' | ' | |
Stock based compensation | 50 | ' | 50 | ' | ' | |
ENDING BALANCE at Sep. 30, 2012 | 28,765 | 7,786 | 34,174 | -14,652 | 1,457 | |
ENDING BALANCE (in shares) at Sep. 30, 2012 | ' | 7,785,518 | ' | ' | ' | |
BEGINNING BALANCE at Dec. 31, 2012 | 22,676 | [1] | 7,815 | 34,192 | -20,040 | 709 |
BEGINNING BALANCE (in shares) at Dec. 31, 2012 | ' | 7,815,385 | ' | ' | ' | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | |
Net income (loss) | 52 | ' | ' | 52 | ' | |
Other comprehensive income (loss) | -694 | ' | ' | ' | -694 | |
Issuance of common stock (in shares) | ' | 144,129 | ' | ' | ' | |
Issuance of common stock | 195 | 145 | 50 | ' | ' | |
Stock based compensation | 20 | ' | 20 | ' | ' | |
ENDING BALANCE at Sep. 30, 2013 | $22,249 | $7,960 | $34,262 | ($19,988) | $15 | |
ENDING BALANCE (in shares) at Sep. 30, 2013 | ' | 7,959,514 | ' | ' | ' | |
[1] | Derived from audited consolidated financial statements. |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | |
Cash flows from operating activities: | ' | ' | |
Net income (loss) | $52 | ($1,581) | |
Adjustments to reconcile net income (loss) to net cash provided by operations: | ' | ' | |
Provision for loan losses | 35 | 1,803 | |
Provision for depreciation and amortization | 735 | 873 | |
Net amortization of bond premiums and discounts | 1,368 | 1,409 | |
Stock based compensation | 20 | 50 | |
Gain on sale of investment securities | -462 | -1,006 | |
Gain on sale of branches | -586 | 0 | |
Loss on sale of foreclosed assets, net | 1 | 237 | |
Valuation adjustment on foreclosed assets | 1,207 | 1,726 | |
Earnings on bank-owned life insurance | -186 | -246 | |
Proceeds from sale of mortgage loans held for sale | 21,993 | 0 | |
Originations of mortgage loans held for sale | -21,136 | 0 | |
Gain on sale of mortgage loans held for sale | -473 | 0 | |
Changes in assets and liabilities: | ' | ' | |
Other assets | 2,174 | 1,720 | |
Accrued interest receivable | 299 | 120 | |
Other liabilities | 96 | 1,441 | |
Accrued interest payable | -127 | 262 | |
Net cash provided by operating activities | 5,010 | 6,808 | |
Cash flows from investing activities: | ' | ' | |
Proceeds from sales and calls of investment securities available for sale | 20,874 | 37,937 | |
Proceeds from paydowns of investment securities available for sale | 5,610 | 9,314 | |
Proceeds from paydowns of investment securities held to maturity | 8,604 | 3,454 | |
Purchases of investment securities available for sale | -29,253 | -36,273 | |
Purchases of investment securities held to maturity | -24,660 | -5,319 | |
Net cash from sale of branches | -39,622 | 0 | |
Purchases of CDs held for investment | -8,575 | 0 | |
Redemption of FHLB stock | 339 | 138 | |
Net (increase) decrease in loans outstanding | -666 | 47,346 | |
Purchases of bank premises and equipment | -161 | -336 | |
Proceeds from sales of foreclosed assets | 5,429 | 4,043 | |
Net recoveries (expenditures) on foreclosed assets | 13 | -13 | |
Net cash (used in) provided by investing activities | -62,068 | 60,291 | |
Cash flows from financing activities: | ' | ' | |
Net (decrease) increase in deposit accounts | 3,885 | -10,245 | |
Proceeds from issuance of common stock | 195 | 199 | |
Net cash (used in) provided by financing activities | 4,080 | -10,046 | |
Net (decrease) increase in cash and cash equivalents | -52,978 | 57,053 | |
Cash and cash equivalents at beginning of period | 183,150 | [1] | 164,966 |
Cash and cash equivalents at end of period | 130,172 | 222,019 | |
Supplemental disclosures of cash flow information: | ' | ' | |
Interest paid on deposits and borrowings | -6,777 | -9,039 | |
Supplemental disclosure for sale of branches: | ' | ' | |
Proceeds from sale of fixed assets | 1,875 | 0 | |
Proceeds from sale of loans | 15,060 | 0 | |
Assumption of customer deposits | -57,361 | 0 | |
Gain on sale of branches | 586 | 0 | |
Proceeds from sale of other assets | 225 | 0 | |
Supplemental disclosures of noncash investing and financing activities: | ' | ' | |
Unrealized (losses) gains on investment securities available for sale, net of taxes | -694 | 405 | |
Transfers of loans to foreclosed assets | 1,957 | 8,481 | |
Loans transferred from held for sale to held for investment | 3,639 | 0 | |
Transferred from AFS to HTM securities | $76,487 | $0 | |
[1] | Derived from audited consolidated financial statements. |
ORGANIZATION_AND_GOING_CONCERN
ORGANIZATION AND GOING CONCERN CONSIDERATIONS | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
ORGANIZATION AND GOING CONCERN CONSIDERATION | ' |
ORGANIZATION AND GOING CONCERN CONSIDERATIONS | |
Basis of Presentation | |
In management’s opinion, the financial information contained in the accompanying unaudited consolidated financial statements reflects all adjustments (consisting solely of normal recurring adjustments) necessary for a fair presentation of the financial information as of and for the three and nine months ended September 30, 2013 and 2012, in conformity with accounting principles generally accepted in the United States of America. The consolidated financial statements include the accounts and transactions of Four Oaks Fincorp, Inc., a bank holding company incorporated under the laws of the State of North Carolina (the “Company”), and its wholly-owned subsidiary, Four Oaks Bank & Trust Company (the “Bank”). Operating results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2013. | |
The organization and business of the Company, accounting policies followed by the Company and other information are contained in the notes to the consolidated financial statements filed as part of the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. This Quarterly Report should be read in conjunction with such Annual Report. | |
Certain amounts previously presented in our Consolidated Financial Statements for the prior periods have been reclassified to conform to current classifications. All such reclassifications had no impact on the prior periods' Statements of Operations, Comprehensive Income (Loss), or Shareholders' Equity as previously reported. | |
Going Concern Considerations | |
The consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future. Improving loan trends and a decrease in the specific reserve on individual impaired loans resulted in a small provision for loan losses for the nine months ended September 30, 2013. The year-to-date net charge offs at September 30, 2013 decreased from the amount reported in the prior year to date period. Nonperforming assets continue to be elevated, although balances are less for nonperforming assets at September 30, 2013 as compared to December 31, 2012. Initiatives by the Special Assets Department are expected to continue to resolve nonperforming loans by either returning them to performing status or removing them from the Company's books. Management expects some additional losses to result from this team's efforts as the process for moving these assets continues. Management still believes that its current operations and its cash availability are sufficient for the Company to discharge its liabilities and meet its commitments in the normal course of business. While management does not anticipate further significant deterioration in the Bank's loan portfolio and has performed stress tests and financial modeling under various potential scenarios in determining that the Company and the Bank will maintain at least adequate capitalization under federal regulatory guidelines, no assurances regarding these expectations can be made. These consolidated financial statements do not include any adjustments relating to the recoverability or classification of assets or the amounts and classification of liabilities that may be necessary should the Company be unable to continue as a going concern. | |
Net income for the nine months ended September 30, 2013 was $52,000 compared to a net loss of $1,581,000 for the same period of 2012. In comparing the nine months ended September 30, 2013 and 2012, there was a decrease in the provision for loan losses of $1,768,000. An improvement in net charge-offs and a decrease in loan balances requiring reserves led to a loan loss provision in the amount of $35,000 for the nine months ended September 30, 2013 compared to a provision for loan losses of $1,803,000 for the same period in 2012. Net charge offs for the first nine months of 2013 were $4.3 million and $6.0 million for the comparable period in 2012. The historically low level of provision is attributed to improvements in problem loans and in the credit oversight processes, as well as fewer loans outstanding. For more detail on the changes to the Allowance for Loan and Lease Losses and provision, refer to Note E Loans and "Managements' Discussion and Analysis of Financial Condition and Results of Operations" in Part I, Item 2 of this report. | |
At September 30, 2013 the Company’s total capital to risk weighted assets, Tier 1 capital to risk weighted assets, and Tier 1 capital to average assets were 10.57%, 6.32%, and 3.68%, respectively, compared to 10.17%, 5.93% and 3.33%, respectively, at December 31, 2012. At September 30, 2013, the Bank’s total capital to risk weighted assets, Tier 1 capital to risk weighted assets, and Tier 1 capital to average assets were 10.84%, 9.58% and 5.58%, respectively, compared to 10.20%, 8.93%, and 5.01%, respectively, at December 31, 2012. | |
The Company and the Bank entered into a formal written agreement (the “Written Agreement”) with the Federal Reserve Bank of Richmond (“FRB”) and the North Carolina Office of the Commissioner of Banks (“NCCOB”) that imposes certain restrictions on the Company and the Bank, as described in Notes I, Subordinated Notes and J, Regulatory Restrictions. A material failure to comply with the Written Agreement’s terms could subject the Company to additional regulatory actions and further restrictions on its business, which may have a material adverse effect on the Company’s future results of operations and financial condition. | |
In order for the Company and the Bank to remain well capitalized under federal banking agencies’ guidelines, management believes that the Company will need to raise additional capital to absorb the potential future credit losses associated with the disposition of its nonperforming assets. On July 19, 2013, the Company amended its Articles of Incorporation to increase the number of authorized shares of common stock of the Company from 20,000,000 to 80,000,000. This amendment was approved by the Company's shareholders on June 3, 2013. Management continues to evaluate various alternatives to increase tangible common equity and regulatory capital through the issuance of additional equity. The Company is actively managing its balance sheet to preserve capital and to improve capital ratios and actively evaluating a number of capital sources, asset reductions and other balance sheet management strategies to ensure that the projected level of regulatory capital can support its balance sheet long-term. There can be no assurance as to whether these efforts will be successful, either on a short-term or long-term basis. Should these efforts be unsuccessful, the Company may be unable to discharge its liabilities in the normal course of business. There can be no assurance that the Company will be successful in any efforts to raise additional capital. | |
Cash and cash equivalents at September 30, 2013 were approximately $130.2 million. Based on our liquidity analysis, management anticipates that the Company will be able to meet its future obligations as they become due. If unanticipated market factors emerge, or if the Company is not successful in its efforts to comply with the requirements set forth in the Written Agreement, the FRB and/or the NCCOB may take further enforcement or other actions. These actions might include greater restrictions on the Company’s operations, a revocation of its charter and the placement of the Bank into receivership if the situation materially deteriorates. At this time the Company is in partial compliance with the provisions of the Written Agreement. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
COMMITMENTS AND CONTINGENCIES | ' | |||
COMMITMENTS AND CONTIGENCIES | ||||
The following table presents loan commitments at September 30, 2013. | ||||
September 30, 2013 | ||||
(amounts in thousands) | ||||
Commitments to extend credit | $ | 37,891 | ||
Undisbursed lines of credit | 18,326 | |||
Financial stand-by letters of credit | 343 | |||
Performance stand-by letters of credit | 1,809 | |||
Legally binding commitments | 58,369 | |||
Unused credit card lines | 13,696 | |||
Total | $ | 72,065 | ||
On May 20, 2013, the U.S. Department of Justice (the “DOJ”) issued a subpoena to the Bank requiring the production of documents in connection with an investigation of consumer fraud related to third party payment processing. The Bank has responded to the subpoena and continues to cooperate with the government’s investigation. No proceedings related to this investigation have been instituted against the Bank. Were the DOJ to bring any such proceedings, such proceedings would likely be civil in nature, seeking injunctive relief and monetary relief under the Financial Institutions Reform, Recovery and Enforcement Act. | ||||
In October 2013, multiple putative class action lawsuits were filed in United States district courts across the country against a number of different banks based on the banks’ alleged role in “payday lending.” Four of these lawsuits, pending in the Northern District of Georgia, the Middle District of North Carolina, the District of Maryland, and the Southern District of Florida, name the Bank as one of the defendants. The lawsuits allege that, by processing Automatic Clearing House transactions indirectly on behalf of “payday” lenders, the Bank is illegally participating in an enterprise to collect unlawful debts and is therefore liable to plaintiffs for damages under the federal Racketeer Influenced and Corrupt Organizations Act. The lawsuits also allege a variety of state law claims. The Bank has not yet responded to any of the complaints filed in these actions. |
NET_INCOME_PER_SHARE
NET INCOME PER SHARE | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
NET INCOME PER SHARE | ' | |||||||||||
NET INCOME PER SHARE | ||||||||||||
Basic net income (loss) per share represents earnings credited to common shareholders divided by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate solely to outstanding stock options. | ||||||||||||
Basic and diluted net income (loss) per common share have been computed based upon net income (loss) as presented in the accompanying consolidated statements of operations divided by the weighted average number of common shares outstanding or assumed to be outstanding as summarized below: | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Weighted average number of common shares used in computing basic net income (loss) per common share | 7,944,600 | 7,769,887 | 7,897,348 | 7,729,454 | ||||||||
Effect of dilutive stock options | — | — | — | — | ||||||||
Weighted average number of common shares and dilutive potential common shares used in computing diluted net income (loss) per common share | 7,944,600 | 7,769,887 | 7,897,348 | 7,729,454 | ||||||||
For the three and nine month periods ended September 30, 2013 and 2012 all stock options were considered anti-dilutive either as a result of net losses incurred or the average market price for the shares during each period was less than the assumed proceeds that would be received by the Company upon exercise of the options. | ||||||||||||
For the periods ended September 30, 2013 and 2012, there were 303,980 and 277,289 anti-dilutive stock options outstanding, respectively, which represented all of the options outstanding for both periods. |
INVESTMENT_SECURITIES
INVESTMENT SECURITIES | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||
INVESTMENT SECURITIES | ' | |||||||||||||||||||||||
INVESTMENT SECURITIES | ||||||||||||||||||||||||
The amortized cost, gross unrealized gains, gross unrealized losses, and fair values of securities available for sale and securities held to maturity as of September 30, 2013 and December 31, 2012 are as follows: | ||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
Securities Available for Sale: | (amounts in thousands) | |||||||||||||||||||||||
Taxable municipal securities | $ | 3,971 | $ | — | $ | 148 | $ | 3,823 | ||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||
GNMA | 3,860 | — | 15 | 3,845 | ||||||||||||||||||||
Trust preferred securities | 1,175 | — | 150 | 1,025 | ||||||||||||||||||||
Equity securities | 98 | 30 | — | 128 | ||||||||||||||||||||
Total | $ | 9,104 | $ | 30 | $ | 313 | $ | 8,821 | ||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
Securities Held to Maturity: | (amounts in thousands) | |||||||||||||||||||||||
Taxable municipal securities | $ | 3,648 | $ | 142 | $ | — | $ | 3,790 | ||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||
GNMA | 93,787 | 474 | 1,508 | 92,753 | ||||||||||||||||||||
FNMA | 4,738 | 15 | — | 4,753 | ||||||||||||||||||||
Total | $ | 102,173 | $ | 631 | $ | 1,508 | $ | 101,296 | ||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
Securities Available for Sale: | (amounts in thousands) | |||||||||||||||||||||||
Taxable municipal securities | $ | 5,459 | $ | 454 | $ | — | $ | 5,913 | ||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||
GNMA | 60,056 | 704 | 17 | 60,743 | ||||||||||||||||||||
FNMA | 5,872 | 10 | 2 | 5,880 | ||||||||||||||||||||
Trust preferred securities | 1,175 | — | 169 | 1,006 | ||||||||||||||||||||
Equity securities | 170 | 11 | 1 | 180 | ||||||||||||||||||||
Total | $ | 72,732 | $ | 1,179 | $ | 189 | $ | 73,722 | ||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
Securities Held to Maturity: | (amounts in thousands) | |||||||||||||||||||||||
Mortgage-backed securities - GNMA | $ | 20,329 | $ | 339 | $ | — | $ | 20,668 | ||||||||||||||||
Total | $ | 20,329 | $ | 339 | $ | — | $ | 20,668 | ||||||||||||||||
During the second quarter of 2013, the Company transferred $76.5 million of available-for-sale state and municipal debt and mortgage-backed securities to the held-to-maturity category, reflecting the company's intent to hold those securities to maturity. Transfers of investment securities into the held-to-maturity category from the available-for-sale category are made at fair value at the date of transfer. The related $.4 million of unrealized holding gains that were included in the transfer is retained in accumulated other comprehensive income and in the carrying value of the held-to-maturity securities. This amount will be amortized as an adjustment to interest income over the remaining life of the securities. This will offset the impact of amortization of the net premium created in the transfer. There were no gains or losses recognized as a result of this transfer. | ||||||||||||||||||||||||
The following tables show gross unrealized losses and fair values of investment securities, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, at September 30, 2013 and December 31, 2012. At December 31, 2012 there were no unrealized losses in the held to maturity category. | ||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
value | losses | value | losses | value | losses | |||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||
Securities Available for Sale: | ||||||||||||||||||||||||
Taxable municipal securities | $ | 3,823 | $ | 148 | $ | 3,823 | $ | 148 | ||||||||||||||||
Mortgage-backed securities - GNMA | $ | 3,845 | $ | 15 | $ | — | $ | — | $ | 3,845 | $ | 15 | ||||||||||||
Total temporarily impaired securities | $ | 7,668 | $ | 163 | $ | — | $ | — | $ | 7,668 | $ | 163 | ||||||||||||
Other than temporary impairment | ||||||||||||||||||||||||
Trust preferred securities | $ | — | $ | — | $ | 1,025 | $ | 150 | $ | 1,025 | $ | 150 | ||||||||||||
Total other than temporarily impaired securities | $ | — | $ | — | $ | 1,025 | $ | 150 | $ | 1,025 | $ | 150 | ||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
value | losses | value | losses | value | losses | |||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||
Securities Held to Maturity: | ||||||||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||
GNMA | $ | 55,208 | $ | 1,508 | $ | — | $ | — | $ | 55,208 | $ | 1,508 | ||||||||||||
FNMA | — | — | — | — | — | — | ||||||||||||||||||
Total temporarily impaired securities | $ | 55,208 | $ | 1,508 | $ | — | $ | — | $ | 55,208 | $ | 1,508 | ||||||||||||
December 31, 2012 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
value | losses | value | losses | value | losses | |||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||
Securities Available for Sale: | ||||||||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||
GNMA | $ | 5,132 | $ | 17 | $ | — | $ | — | $ | 5,132 | $ | 17 | ||||||||||||
FNMA | 1,998 | 2 | — | — | 1,998 | 2 | ||||||||||||||||||
Equity securities | — | — | 2 | 1 | 2 | 1 | ||||||||||||||||||
Total temporarily impaired securities | $ | 7,130 | $ | 19 | $ | 2 | $ | 1 | $ | 7,132 | $ | 20 | ||||||||||||
Other than temporary impairment | ||||||||||||||||||||||||
Trust preferred securities | $ | — | $ | — | $ | 1,006 | $ | 169 | $ | 1,006 | $ | 169 | ||||||||||||
Total other than temporarily impaired securities | $ | — | $ | — | $ | 1,006 | $ | 169 | $ | 1,006 | $ | 169 | ||||||||||||
Management evaluates each quarter whether unrealized losses on securities represent impairment that is other than temporary. For debt securities, the Company considers its intent to sell the securities or if it is more likely than not that the Company will be required to sell the securities. If such impairment is identified, based upon the intent to sell or the more likely than not threshold, the carrying amount of the security is reduced to fair value with a charge to earnings. Upon the result of the aforementioned review, management then reviews for potential other than temporary impairment based upon other qualitative factors. In making this evaluation, management considers changes in market rates relative to those available when the security was acquired, changes in market expectations about the timing of cash flows from securities that can be prepaid, performance of the debt security, and changes in the market's perception of the issuer's financial health and the security's credit quality. If determined that a debt security has incurred other than temporary impairment, then the amount of the credit related impairment is determined. If a credit loss is evident, the amount of the credit loss is charged to earnings and the non-credit related impairment is recognized through other comprehensive income. | ||||||||||||||||||||||||
At September 30, 2013, the unrealized losses relate to 26 mortgage backed securities, 4 taxable municipal securities and two trust preferred securities. Only the two trust preferred securities were in a continuous unrealized loss position for more than twelve months. At December 31, 2011 management determined that one of the trust preferred securities was other than temporarily impaired in the amount of $75,000. Management continues to monitor the creditworthiness of the issuers of the trust preferred securities and has determined that based on the their current financial condition the unrealized losses as of September 30, 2013 are not credit related and will therefore be recognized in other comprehensive income. The gross unrealized losses reported for mortgage-backed securities relate to investment securities issued by the Government National Mortgage Association. The unrealized losses were primarily attributable to changes in interest rates and not due to the credit quality of the investment securities. The Company does not intend to sell, and it is not more likely than not that the Company will be required to sell, these debt securities before the anticipated recovery of the amortized cost basis and; therefore, does not consider them to be other-than-temporarily impaired at September 30, 2013. | ||||||||||||||||||||||||
The amortized cost and fair value of available for sale and held to maturity securities at September 30, 2013 by contractual maturities are shown on the following table. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | ||||||||||||||||||||||||
Available for Sale | ||||||||||||||||||||||||
Amortized | Fair | |||||||||||||||||||||||
Cost | Value | |||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||
Taxable municipal securities: | ||||||||||||||||||||||||
Due after one year through five years | $ | — | $ | — | ||||||||||||||||||||
Due after five years through ten years | — | — | ||||||||||||||||||||||
Due after ten years | 3,971 | 3,823 | ||||||||||||||||||||||
Total taxable municipal securities | 3,971 | 3,823 | ||||||||||||||||||||||
Mortgage-backed securities - GNMA/FNMA: | ||||||||||||||||||||||||
Due within one year | — | — | ||||||||||||||||||||||
Due after one year through five years | — | — | ||||||||||||||||||||||
Due after five years through ten years | — | — | ||||||||||||||||||||||
Due after ten years | 3,860 | 3,845 | ||||||||||||||||||||||
Total mortgage-backed securities - GNMA/FNMA | 3,860 | 3,845 | ||||||||||||||||||||||
Other securities: | ||||||||||||||||||||||||
Trust preferred securities | 1,175 | 1,025 | ||||||||||||||||||||||
Equity securities | 98 | 128 | ||||||||||||||||||||||
Total other securities | 1,273 | 1,153 | ||||||||||||||||||||||
Total available for sale securities | $ | 9,104 | $ | 8,821 | ||||||||||||||||||||
Held to Maturity | ||||||||||||||||||||||||
Amortized | Fair | |||||||||||||||||||||||
Cost | Value | |||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||
Taxable municipal securities: | ||||||||||||||||||||||||
Due within one year | — | — | ||||||||||||||||||||||
Due after one year through five years | 528 | 536 | ||||||||||||||||||||||
Due after five years through ten years | 3,120 | 3,254 | ||||||||||||||||||||||
Due after ten years | — | — | ||||||||||||||||||||||
Total taxable municipal securities | 3,648 | 3,790 | ||||||||||||||||||||||
Mortgage-backed securities - GNMA/FNMA: | ||||||||||||||||||||||||
Due within one year | 1,248 | 1,264 | ||||||||||||||||||||||
Due after one year through five years | 64,388 | 64,421 | ||||||||||||||||||||||
Due after five years through ten years | 31,684 | 30,618 | ||||||||||||||||||||||
Due after ten years | 1,205 | 1,203 | ||||||||||||||||||||||
Total mortgage-backed securities - GNMA/FNMA | 98,525 | 97,506 | ||||||||||||||||||||||
Total held to maturity securities | $ | 102,173 | $ | 101,296 | ||||||||||||||||||||
Securities with a carrying value of approximately $90.7 million and $93.2 million at September 30, 2013 and December 31, 2012, respectively, were pledged to secure public deposits and for other purposes required or permitted by law. | ||||||||||||||||||||||||
Proceeds from sales and calls of investment securities available for sale for the nine months ended September 30, 2013 and 2012 were $20.9 million and $37.9 million, respectively. For the nine months ended September 30, 2013 and 2012 we recognized gross realized gains of $462,000 and $1.0 million, and gross losses of $0, respectively. | ||||||||||||||||||||||||
Sales and calls of securities available for sale and equity securities during the three months ended September 30, 2013 and 2012 were $8.0 million and $10.7 million, respectively. For the three months ended September 30, 2013 and 2012 generated gross realized gains were $92,000 and $349,000 and gross losses of $0, respectively. |
LOANS
LOANS | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Loans and Leases Receivable Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||
LOANS | ' | |||||||||||||||||||||||||||||||
LOANS | ||||||||||||||||||||||||||||||||
The Company has adopted comprehensive lending policies, underwriting standards and loan review procedures, which are reviewed on a regular basis. Each class of loans detailed below is subject to risks that could have an adverse impact on the credit quality of the loan portfolio. Loans are primarily made in the Company's market area in North Carolina, principally Johnston County, and parts of Wake, Harnett, Duplin, and Sampson counties. | ||||||||||||||||||||||||||||||||
Commercial and industrial loans | ||||||||||||||||||||||||||||||||
Each commercial loan or lease is underwritten based primarily upon the customer's ability to generate the required cash flow to service the debt in accordance with the contractual terms and conditions of the loan agreement. A complete understanding of the borrower's businesses, including the experience and background of the principals, is obtained prior to approval. To the extent that the loan or lease is secured by collateral, the likely value of the collateral and what level of strength the collateral brings to the transaction is evaluated. This collateral is generally comprised of personal property or business assets, such as inventory or accounts receivable. To the extent that the principals or other parties provide personal guarantees, the relative financial strength and liquidity of each guarantor is assessed. Common risks include general economic conditions within the markets the Bank serves, as well as risks that are specific to each transaction, including operational performance of the business, collectability of receivables, demand for products and services, personal events such as disability or change in marital status, and reductions in the value of collateral. | ||||||||||||||||||||||||||||||||
Commercial construction and land development loans | ||||||||||||||||||||||||||||||||
Commercial construction and land development loans are fully underwritten based on the borrower's repayment capacity and experience, as well as the project's structure, market, and financial feasibility. All debts and sources of income are analyzed prior to commitment. These loans are highly dependent on the supply and demand for commercial real estate and developed lots in the markets served by the Bank. Deterioration in demand could result in significant decreases in the underlying collateral values and make repayment of the outstanding loans more difficult for customers. | ||||||||||||||||||||||||||||||||
Commercial real estate loans | ||||||||||||||||||||||||||||||||
Commercial real estate loans consist primarily of loans secured by nonresidential owner or non-owner occupied real estate, multifamily housing, and agricultural loans. Owner-occupied commercial properties are real estate properties whose loan repayment capacities are based on the credit strength and cash flow of the business occupying and operating the property. Non-owner occupied and multifamily commercial real estate are primarily dependent on successful operation or management of the property. The primary risk associated with these loans is the ability of the income-producing property to collateralize the loan to produce adequate cash flow to service the debt. High unemployment or generally weak economic conditions may result in customers having to provide rental rate concessions to achieve adequate occupancy rates. While commercial real estate loans are normally secured by commercial buildings for office, storage and warehouse space, it is possible that the liquidation of the collateral will not fully satisfy the obligation. | ||||||||||||||||||||||||||||||||
Residential construction loans | ||||||||||||||||||||||||||||||||
Residential construction loans are made to both individuals and builders/contractors and are typically secured by 1-4 family residential property. The Bank has stringent underwriting and initial investment requirements for new residential construction loans. The primary source of repayment on these loans comes from funds due to the sale of the underlying property or from permanent financing obtained by the individual building the residence. Significant and rapid declines in real estate values or demand can result in increased difficulty in selling these properties and/or converting these construction loans to permanent loans. Such a decline in values has led to unprecedented levels of foreclosures and losses within the banking industry. | ||||||||||||||||||||||||||||||||
Residential mortgage loans | ||||||||||||||||||||||||||||||||
Each residential mortgage loan is underwritten by performing an analysis of the borrower's cash flow, as well as reviewing credit reports for items such as payment history, credit utilization, length of credit history, types of credit currently in use, and recent credit inquiries. Since these loans are secured by collateral, the likely value of that collateral is evaluated. Common risks to these loans that are not specific to individual transactions include general economic conditions within the markets the Bank serves, particularly unemployment and potential declines in real estate values. Personal events such as disability or change in marital status also add risk to residential mortgage loans. Revolving mortgage loans are often secured by second liens on residential real estate, thereby making such loans particularly susceptible to declining collateral values. A substantial decline in collateral value could render a second lien position to be effectively unsecured. Additional risks include lien perfection inaccuracies and disputes with first lien holders that may further weaken the collateral position. Further, the open-end structure of these loans creates the risk that customers may draw on the lines in excess of the collateral value if there have been significant declines since origination. | ||||||||||||||||||||||||||||||||
Consumer and other loans | ||||||||||||||||||||||||||||||||
Consumer and other loans include loans secured by personal property such as automobiles, marketable securities, other titled recreational vehicles, including boats and motorcycles, as well as unsecured consumer debt. The value of underlying collateral within this class is especially volatile due to potential rapid depreciation in values since date of loan origination in excess of principal repayment. Consumer loan collections are sensitive to job loss, illness and other personal factors. | ||||||||||||||||||||||||||||||||
The classification of loans as of September 30, 2013 and December 31, 2012 are summarized as follows: | ||||||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 27,286 | $ | 29,563 | ||||||||||||||||||||||||||||
Commercial construction and land development | 70,227 | 90,899 | ||||||||||||||||||||||||||||||
Commercial real estate | 197,858 | 181,194 | ||||||||||||||||||||||||||||||
Residential construction | 27,144 | 20,445 | ||||||||||||||||||||||||||||||
Residential mortgage | 163,890 | 165,009 | ||||||||||||||||||||||||||||||
Consumer | 8,928 | 9,664 | ||||||||||||||||||||||||||||||
Other | 1,085 | 1,278 | ||||||||||||||||||||||||||||||
Gross loans | 496,418 | 498,052 | ||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||
Net deferred loan fees | (429 | ) | (123 | ) | ||||||||||||||||||||||||||||
Net loans before allowance | 495,989 | 497,929 | ||||||||||||||||||||||||||||||
Allowance for loan losses | (12,296 | ) | (16,549 | ) | ||||||||||||||||||||||||||||
Total net loans | $ | 483,693 | $ | 481,380 | ||||||||||||||||||||||||||||
Nonperforming assets at September 30, 2013 and December 31, 2012 consist of the following: | ||||||||||||||||||||||||||||||||
September 30, 2013 | 31-Dec-12 | |||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
Loans past due ninety days or more and still accruing | $ | 25 | $ | 32 | ||||||||||||||||||||||||||||
Nonaccrual loans | 33,873 | 35,970 | ||||||||||||||||||||||||||||||
Foreclosed assets | 10,443 | 15,136 | ||||||||||||||||||||||||||||||
Total | $ | 44,341 | $ | 51,138 | ||||||||||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||||||||||||
The allowance for loan losses represents management’s estimate of an amount adequate to provide for known and inherent losses in the loan portfolio in the normal course of business. Management evaluates the adequacy of this allowance at least quarterly during which time those loans that are identified as impaired are evaluated individually. | ||||||||||||||||||||||||||||||||
The following tables are an analysis of the allowance for loan losses by loan class, as of and for the three and nine months ended September 30, 2013 and 2012 and as of and for the twelve months ended December 31, 2012. | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Residential | Consumer | Other | Totals | |||||||||||||||||||||||||
and | Construction | Real | Construction | Mortgage | ||||||||||||||||||||||||||||
Industrial | and Land | Estate | ||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||
Allowances for loan losses: | (amounts in thousands) | |||||||||||||||||||||||||||||||
Balance July 1, 2013 | $ | 969 | $ | 6,574 | $ | 2,763 | $ | 449 | $ | 3,013 | $ | 178 | $ | 92 | $ | 14,038 | ||||||||||||||||
Provision for loan losses | (263 | ) | 125 | 817 | 79 | (718 | ) | (11 | ) | (29 | ) | — | ||||||||||||||||||||
Loans charged-off | (207 | ) | (1,485 | ) | (503 | ) | — | (259 | ) | (52 | ) | — | (2,506 | ) | ||||||||||||||||||
Recoveries | 175 | 318 | 11 | — | 211 | 49 | — | 764 | ||||||||||||||||||||||||
Net (charge-offs) recoveries | (32 | ) | (1,167 | ) | (492 | ) | — | (48 | ) | (3 | ) | — | (1,742 | ) | ||||||||||||||||||
Balance September 30, 2013 | $ | 674 | $ | 5,532 | $ | 3,088 | $ | 528 | $ | 2,247 | $ | 164 | $ | 63 | $ | 12,296 | ||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Residential | Consumer | Other | Totals | |||||||||||||||||||||||||
and | Construction | Real | Construction | Mortgage | ||||||||||||||||||||||||||||
Industrial | and Land | Estate | ||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||
Allowances for loan losses: | (amounts in thousands) | |||||||||||||||||||||||||||||||
Balance January 1, 2013 | $ | 1,185 | $ | 7,251 | $ | 2,961 | $ | 423 | $ | 4,471 | $ | 188 | $ | 70 | $ | 16,549 | ||||||||||||||||
Provision for loan losses | (670 | ) | 1,128 | 836 | 243 | (1,553 | ) | 58 | (7 | ) | 35 | |||||||||||||||||||||
Loans charged-off | (267 | ) | (3,343 | ) | (1,728 | ) | (138 | ) | (1,164 | ) | (216 | ) | — | (6,856 | ) | |||||||||||||||||
Recoveries | 426 | 496 | 1,019 | — | 493 | 134 | — | 2,568 | ||||||||||||||||||||||||
Net (charge-offs) recoveries | 159 | (2,847 | ) | (709 | ) | (138 | ) | (671 | ) | (82 | ) | — | (4,288 | ) | ||||||||||||||||||
Balance September 30, 2013 | $ | 674 | $ | 5,532 | $ | 3,088 | $ | 528 | $ | 2,247 | $ | 164 | $ | 63 | $ | 12,296 | ||||||||||||||||
Ending Balance: individually | $ | 212 | $ | 667 | $ | 688 | $ | — | $ | 234 | $ | — | $ | — | $ | 1,801 | ||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Ending Balance: collectively | $ | 462 | $ | 4,865 | $ | 2,400 | $ | 528 | $ | 2,013 | $ | 164 | $ | 63 | $ | 10,495 | ||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||
Ending balance | $ | 27,286 | $ | 70,227 | $ | 197,858 | $ | 27,144 | $ | 163,890 | $ | 8,928 | $ | 1,085 | $ | 496,418 | ||||||||||||||||
Less: ending Balance: individually | 936 | 14,328 | 13,519 | 695 | 14,124 | 19 | — | 43,621 | ||||||||||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Ending balance: collectively | $ | 26,350 | $ | 55,899 | $ | 184,339 | $ | 26,449 | $ | 149,766 | $ | 8,909 | $ | 1,085 | $ | 452,797 | ||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
September 30, 2012 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Residential | Consumer | Other | Totals | |||||||||||||||||||||||||
and | Construction | Real | Construction | Mortgage | ||||||||||||||||||||||||||||
Industrial | and Land | Estate | ||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
Allowances for loan losses: | ||||||||||||||||||||||||||||||||
Balance July 1, 2012 | $ | 1,786 | $ | 8,010 | $ | 3,290 | $ | 401 | $ | 4,438 | $ | 482 | $ | 11 | $ | 18,418 | ||||||||||||||||
Provision for loan losses | (493 | ) | 1,783 | 733 | (108 | ) | 103 | 16 | 55 | 2,089 | ||||||||||||||||||||||
Loans charged-off | (241 | ) | (2,580 | ) | (791 | ) | (1 | ) | (508 | ) | (75 | ) | — | (4,196 | ) | |||||||||||||||||
Recoveries | 142 | 145 | 123 | — | 170 | 30 | 610 | |||||||||||||||||||||||||
Net (charge-offs) recoveries | (99 | ) | (2,435 | ) | (668 | ) | (1 | ) | (338 | ) | (45 | ) | — | (3,586 | ) | |||||||||||||||||
Balance September 30, 2012 | $ | 1,194 | $ | 7,358 | $ | 3,355 | $ | 292 | $ | 4,203 | $ | 453 | $ | 66 | $ | 16,921 | ||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||||||||
30-Sep-12 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Residential | Consumer | Other | Totals | |||||||||||||||||||||||||
and | Construction | Real | Construction | Mortgage | ||||||||||||||||||||||||||||
Industrial | and Land | Estate | ||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||
Allowances for loan losses: | (amounts in thousands) | |||||||||||||||||||||||||||||||
Balance January 1, 2012 | $ | 2,730 | $ | 8,799 | $ | 3,800 | $ | 740 | $ | 4,630 | $ | 413 | $ | 29 | $ | 21,141 | ||||||||||||||||
Provision for loan losses | (1,109 | ) | 2,349 | 531 | (412 | ) | 83 | 324 | 37 | 1,803 | ||||||||||||||||||||||
Loans charged-off | (681 | ) | (4,735 | ) | (1,277 | ) | (36 | ) | (786 | ) | (405 | ) | — | (7,920 | ) | |||||||||||||||||
Recoveries | 254 | 945 | 301 | — | 276 | 121 | — | 1,897 | ||||||||||||||||||||||||
Net (charge-offs) recoveries | (427 | ) | (3,790 | ) | (976 | ) | (36 | ) | (510 | ) | (284 | ) | — | (6,023 | ) | |||||||||||||||||
Balance September 30, 2012 | $ | 1,194 | $ | 7,358 | $ | 3,355 | $ | 292 | $ | 4,203 | $ | 453 | $ | 66 | $ | 16,921 | ||||||||||||||||
Ending Balance: individually | $ | 258 | $ | 2,815 | $ | 1,762 | $ | 68 | $ | 2,342 | $ | — | $ | — | $ | 7,245 | ||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Ending Balance: collectively | $ | 936 | $ | 4,543 | $ | 1,593 | $ | 224 | $ | 1,861 | $ | 453 | $ | 66 | $ | 9,676 | ||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||
Ending balance | $ | 31,201 | $ | 102,776 | $ | 186,850 | $ | 22,922 | $ | 182,230 | $ | 10,007 | $ | 4,484 | $ | 540,470 | ||||||||||||||||
Less ending balance: individually | 1,233 | 32,382 | 20,052 | 1,404 | 20,960 | 45 | — | 76,076 | ||||||||||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Ending balance: collectively | $ | 29,968 | $ | 70,394 | $ | 166,798 | $ | 21,518 | $ | 161,270 | $ | 9,962 | $ | 4,484 | $ | 464,394 | ||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Twelve Months Ended | ||||||||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Residential | Consumer | Other | Totals | |||||||||||||||||||||||||
and | Construction | Real | Construction | Mortgage | ||||||||||||||||||||||||||||
Industrial | and Land | Estate | ||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
Allowances for loan losses: | ||||||||||||||||||||||||||||||||
Balance January 1, 2012 | $ | 2,730 | $ | 8,799 | $ | 3,800 | $ | 740 | $ | 4,630 | $ | 413 | $ | 29 | $ | 21,141 | ||||||||||||||||
Provision for loan losses | (1,464 | ) | 5,205 | 2,486 | (214 | ) | 1,184 | 143 | 41 | 7,381 | ||||||||||||||||||||||
Loans charged-off | (703 | ) | (7,929 | ) | (3,691 | ) | (103 | ) | (1,801 | ) | (516 | ) | — | (14,743 | ) | |||||||||||||||||
Recoveries | 622 | 1,176 | 366 | — | 458 | 148 | — | 2,770 | ||||||||||||||||||||||||
Net (charge-offs) recoveries | (81 | ) | (6,753 | ) | (3,325 | ) | (103 | ) | (1,343 | ) | (368 | ) | — | (11,973 | ) | |||||||||||||||||
Balance December 31, 2012 | $ | 1,185 | $ | 7,251 | $ | 2,961 | $ | 423 | $ | 4,471 | $ | 188 | $ | 70 | $ | 16,549 | ||||||||||||||||
Ending Balance: individually | $ | 636 | $ | 1,693 | $ | 640 | $ | 86 | $ | 2,334 | $ | — | $ | — | $ | 5,389 | ||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Ending Balance: collectively | $ | 549 | $ | 5,558 | $ | 2,321 | $ | 337 | $ | 2,137 | $ | 188 | $ | 70 | $ | 11,160 | ||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||
Ending balance | $ | 29,563 | $ | 90,899 | $ | 181,194 | $ | 20,445 | $ | 165,009 | $ | 9,664 | $ | 1,278 | $ | 498,052 | ||||||||||||||||
Less: ending Balance: individually | 1,437 | 20,885 | 17,742 | 1,173 | 17,573 | 50 | — | 58,860 | ||||||||||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Ending balance: collectively | $ | 28,126 | $ | 70,014 | $ | 163,452 | $ | 19,272 | $ | 147,436 | $ | 9,614 | $ | 1,278 | $ | 439,192 | ||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Credit Quality Indicators | ||||||||||||||||||||||||||||||||
The Company uses an internal grading system to assign the degree of inherent risk on each individual loan. The grade is initially assigned by the lending officer and reviewed by the loan administration function throughout the life of the loan. The credit grades have been defined as follows: | ||||||||||||||||||||||||||||||||
• | Grade 1 - Lowest Risk | |||||||||||||||||||||||||||||||
Loans secured by properly margined liquid collateral such as certificates of deposit, government securities, cash value of life insurance, stock actively traded on one of the major stock exchanges, etc. Repayment is definite and being handled as agreed. Maintains a strong, liquid financial condition as evidenced by a current financial statement in the Bank. | ||||||||||||||||||||||||||||||||
•Grade 2 - Satisfactory Quality | ||||||||||||||||||||||||||||||||
Loans secured by properly margined collateral with a definite repayment agreement in effect. Unsecured loans with repayment agreements that are definite, realistic, and are being handled as agreed. Repayment source well defined by proven income, cash flow, trade asset turn, etc. Multiple repayment sources exist. Individual and businesses will typically have a sound financial condition. | ||||||||||||||||||||||||||||||||
•Grade 3 – Satisfactory - Merits Attention | ||||||||||||||||||||||||||||||||
Loans being repaid as agreed that require close following because of complexity, information or underwriting deficiencies, emerging signs of weakness or non-standard terms. Secured loans repaying as agreed where collateral value or marketability are questionable but do not materially affect risk. Repayment sources well defined by proven income, cash flow, trade asset turn, etc., but may be weaker than Grade 2. Loans to weak individuals or business borrowers with a strong endorser or guarantor. Fully collectible, unsecured loans or loans secured by other than approved collateral for which an acceptable repayment agreement has not been established. | ||||||||||||||||||||||||||||||||
•Grade 4 - Low Satisfactory | ||||||||||||||||||||||||||||||||
New Loans - Applicants with excessive minor exceptions as defined by the Risk Grade forms. Applicants with major credit history or beacon score issues as defined by the Risk Grade forms. Applicants with two or more major exceptions with mitigating factors identified on the Fair Lending form. | ||||||||||||||||||||||||||||||||
Existing Loans - Borrower’s ability to repay from primary (intended) repayment sources is not clearly sufficient to ensure performance as contracted; but the loan is performing as contracted, and secondary repayment sources are clearly sufficient to protect against the risk of principal or income loss; and it is reasonable to expect that the circumstances causing repayment capacity to be uncertain will be resolved within six months. Access to alternative financing sources exists but may be limited to institutions specializing in higher risk financing. | ||||||||||||||||||||||||||||||||
•Grade 5 - Special Mention | ||||||||||||||||||||||||||||||||
Special Mention is an additional risk grade not available on the Grading Form. Loans are not typically made if the grade is Special Mention at inception, without management's approval. These loans include the following characteristics: Loans currently performing satisfactorily but with potential weaknesses that may, if not corrected, weaken the asset or inadequately protect the bank’s position at some future date. Loans are not typically made if graded special mention at inception, without management's approval. Potential weaknesses exist generally as a result of deviations from prudent lending practices, such as over advances on collateral or unproven primary repayment sources. Loans where adverse economic conditions develop subsequent to the loan origination, that do not jeopardize liquidation of the debt but do increase the level of risk, may also warrant this rating. Such trends may be in the borrower’s options, credit quality or financial strength. Also may include new loans with exceptions, where no mitigating factors are justified. | ||||||||||||||||||||||||||||||||
• | Grade 6 -8 - Substandard or Worse | |||||||||||||||||||||||||||||||
Substandard, Doubtful, and Loss are additional risk grades not available on the Grading Form. Loans are not typically made if graded Substandard or worse at inception, without management's approval. A substandard loan is inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified as Substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt; they are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Loans classified Doubtful have all the weaknesses inherent in loans classified Substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans classified as Loss are considered uncollectable and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this worthless loan even though partial recovery may be affected in the future. | ||||||||||||||||||||||||||||||||
Credit Risk Profile by Creditworthiness Class and Credit Card Portfolio Exposure | ||||||||||||||||||||||||||||||||
The following tables are an analysis of the creditworthiness class by loan class and credit card portfolio exposure as of September 30, 2013 and December 31, 2012. | ||||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Residential | Consumer | Other | Totals | |||||||||||||||||||||||||
and | Construction | Real | Construction | Mortgage | ||||||||||||||||||||||||||||
Industrial | and Land | Estate | ||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
1 - Lowest Risk | $ | 2,100 | $ | — | $ | — | $ | — | $ | — | $ | 1,331 | $ | 11 | $ | 3,442 | ||||||||||||||||
2 - Satisfactory Quality | 580 | 344 | 2,299 | 4 | 12,374 | 254 | 16 | 15,871 | ||||||||||||||||||||||||
3 - Satisfactory | ||||||||||||||||||||||||||||||||
- Merits Attention | 9,745 | 15,257 | 70,418 | 3,016 | 57,023 | 3,959 | 816 | 160,234 | ||||||||||||||||||||||||
4 - Low Satisfactory | 12,448 | 33,874 | 109,955 | 22,781 | 69,362 | 1,078 | 113 | 249,611 | ||||||||||||||||||||||||
5 - Special mention | 196 | 3,600 | 2,558 | 162 | 7,519 | 69 | 129 | 14,233 | ||||||||||||||||||||||||
6-8 - Substandard | 1,035 | 17,152 | 12,628 | 1,181 | 17,612 | 61 | — | 49,669 | ||||||||||||||||||||||||
$ | 26,104 | $ | 70,227 | $ | 197,858 | $ | 27,144 | $ | 163,890 | $ | 6,752 | $ | 1,085 | $ | 493,060 | |||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Consumer - | Business- | |||||||||||||||||||||||||||||||
Credit Card | Credit Card | |||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
Performing | $ | 2,156 | $ | 1,177 | ||||||||||||||||||||||||||||
Non Performing | 20 | 5 | ||||||||||||||||||||||||||||||
Total | $ | 2,176 | $ | 1,182 | ||||||||||||||||||||||||||||
Total Loans | $ | 496,418 | ||||||||||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Residential | Consumer | Other | Totals | |||||||||||||||||||||||||
and | Construction | Real | Construction | Mortgage | ||||||||||||||||||||||||||||
Industrial | and Land | Estate | ||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
1 - Lowest Risk | $ | 2,446 | $ | — | $ | — | $ | — | $ | 51 | $ | 1,372 | $ | 13 | $ | 3,882 | ||||||||||||||||
2 - Satisfactory Quality | 441 | 595 | 2,429 | 109 | 10,595 | 288 | — | 14,457 | ||||||||||||||||||||||||
3 - Satisfactory | ||||||||||||||||||||||||||||||||
- Merits Attention | 10,222 | 22,278 | 51,384 | 1,337 | 58,140 | 4,526 | 1,091 | 148,978 | ||||||||||||||||||||||||
4 - Low Satisfactory | 13,558 | 35,502 | 104,652 | 17,008 | 68,148 | 1,019 | 125 | 240,012 | ||||||||||||||||||||||||
5 - Special mention | 323 | 9,064 | 6,228 | 356 | 9,720 | 91 | 49 | 25,831 | ||||||||||||||||||||||||
6-8 - Substandard | 1,387 | 23,460 | 16,501 | 1,635 | 18,355 | 103 | — | 61,441 | ||||||||||||||||||||||||
$ | 28,377 | $ | 90,899 | $ | 181,194 | $ | 20,445 | $ | 165,009 | $ | 7,399 | $ | 1,278 | $ | 494,601 | |||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
Consumer- | Business- | |||||||||||||||||||||||||||||||
Credit Card | Credit Card | |||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
Performing | $ | 2,233 | $ | 1,186 | ||||||||||||||||||||||||||||
Non Performing | 32 | — | ||||||||||||||||||||||||||||||
Total | $ | 2,265 | $ | 1,186 | ||||||||||||||||||||||||||||
Total Loans | $ | 498,052 | ||||||||||||||||||||||||||||||
Age Analysis of Past Due Loans | ||||||||||||||||||||||||||||||||
The following tables are an age analysis of past due loans by loan class, as of September 30, 2013 and December 31, 2012. | ||||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
30-89 Days | Nonaccrual | Total Past | Current | Total | Recorded | |||||||||||||||||||||||||||
Past Due | and Greater | Due | Loans | Investment | ||||||||||||||||||||||||||||
than 90 | > 90 Days | |||||||||||||||||||||||||||||||
Days Past | and | |||||||||||||||||||||||||||||||
Due | Accruing | |||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
Commercial & industrial | $ | 28 | $ | 898 | — | $ | 926 | $ | 25,178 | $ | 26,104 | $ | — | |||||||||||||||||||
Commercial construction and land Development | 757 | 13,747 | 14,504 | 55,723 | 70,227 | — | ||||||||||||||||||||||||||
Commercial real estate | 471 | 7,529 | 8,000 | 189,858 | 197,858 | — | ||||||||||||||||||||||||||
Residential construction | — | 695 | 695 | 26,449 | 27,144 | — | ||||||||||||||||||||||||||
Residential mortgage | 779 | 10,985 | 11,764 | 152,126 | 163,890 | — | ||||||||||||||||||||||||||
Consumer | 20 | 19 | 39 | 6,713 | 6,752 | — | ||||||||||||||||||||||||||
Consumer credit cards | 74 | 20 | 94 | 2,082 | 2,176 | 20 | ||||||||||||||||||||||||||
Business credit cards | 9 | 5 | 14 | 1,168 | 1,182 | 5 | ||||||||||||||||||||||||||
Other loans | — | — | — | 1,085 | 1,085 | — | ||||||||||||||||||||||||||
Total | $ | 2,138 | $ | 33,898 | $ | 36,036 | $ | 460,382 | $ | 496,418 | $ | 25 | ||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
30-89 Days | Nonaccrual | Total Past | Current | Total | Recorded | |||||||||||||||||||||||||||
Past Due | and Greater | Due | Loans | Investment | ||||||||||||||||||||||||||||
than 90 | > 90 Days | |||||||||||||||||||||||||||||||
Days Past | and | |||||||||||||||||||||||||||||||
Due | Accruing | |||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
Commercial & industrial | $ | 119 | $ | 664 | $ | 783 | $ | 27,594 | $ | 28,377 | $ | — | ||||||||||||||||||||
Commercial construction and land Development | 819 | 15,941 | 16,760 | 74,139 | 90,899 | — | ||||||||||||||||||||||||||
Commercial real estate | 499 | 9,091 | 9,590 | 171,604 | 181,194 | — | ||||||||||||||||||||||||||
Residential construction | — | 833 | 833 | 19,612 | 20,445 | — | ||||||||||||||||||||||||||
Residential mortgage | 1,076 | 9,408 | 10,484 | 154,525 | 165,009 | — | ||||||||||||||||||||||||||
Consumer | 34 | 33 | 67 | 7,332 | 7,399 | — | ||||||||||||||||||||||||||
Consumer credit cards | 67 | 32 | 99 | 2,166 | 2,265 | 32 | ||||||||||||||||||||||||||
Business credit cards | 12 | — | 12 | 1,174 | 1,186 | — | ||||||||||||||||||||||||||
Other loans | — | — | — | 1,278 | 1,278 | — | ||||||||||||||||||||||||||
Total | $ | 2,626 | $ | 36,002 | $ | 38,628 | $ | 459,424 | $ | 498,052 | $ | 32 | ||||||||||||||||||||
Impaired Loan by Loan Class | ||||||||||||||||||||||||||||||||
When the Bank determines that a loan is impaired, an analysis is performed to determine the appropriate method in which to measure impairment. For those loans determined to be collateral dependent, an updated collateral value is obtained based on where the loan is in the collection process and the age of the existing appraisal. Each piece of collateral is analyzed to identify potential sales costs and additional discounts due to property type and/or quality of the approval resulting in the collateral's fair value. This amount is then compared to the legal balance of the loan to estimate potential loss which could result in a write down on the loan or a specific reserve. Appraised values on real estate collateral are subject to constant change and management makes certain assumptions about how the age of an appraisal impacts current value. The Bank has various loans in the coastal region of North Carolina which are collateralized by properties and have seen declines in values which the Bank, at the present time, has no significant concentrations that pose a material risk that is in excess of 10% of total loans. Impairment is measured using a discounted value of expected future cash flows for a portion of loans determined not to be collateral dependent. Impaired loans are re-evaluated periodically to determine the adequacy of specific reserves and prior charge-offs. Impaired loans decreased by 25.9% to $43.6 million at September 30, 2013 from $58.9 million at December 31, 2012. | ||||||||||||||||||||||||||||||||
The reasons for the reduction in the recorded investment of impaired loans between December 31, 2012 and September 30, 2013 resulted from approximately $4.3 million in charge offs, principal reductions of $5.9 million and $3.7 million in impaired loans that were either upgraded or otherwise removed from impairment due to improvement in the repayment capacity of the borrowers or guarantors. Additionally, $2.0 million in balances were transferred to foreclosed assets, $3.6 million were sold, and approximately $4.2 million of loans were newly classified as impaired during the reporting period. | ||||||||||||||||||||||||||||||||
The following table illustrates the impaired loans by loan class as of September 30, 2013 and December 31, 2012. | ||||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Quarter to Date | Year to Date | |||||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | Average | Interest | ||||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | Recorded | Income | ||||||||||||||||||||||||||
Balance | Investment | Recognized | Investment | Recognized | ||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 393 | $ | 432 | $ | — | $ | 421 | $ | 2 | $ | 449 | $ | 10 | ||||||||||||||||||
Commercial construction and land development | 12,273 | 19,364 | — | 13,400 | 15 | 14,797 | 73 | |||||||||||||||||||||||||
Commercial real estate other | 11,086 | 13,356 | — | 11,434 | 10 | 11,935 | 54 | |||||||||||||||||||||||||
Residential construction | 695 | 1,134 | — | 695 | — | 766 | — | |||||||||||||||||||||||||
Residential mortgage | 13,434 | 15,196 | — | 13,860 | 4 | 14,419 | 64 | |||||||||||||||||||||||||
Consumer | 19 | 29 | — | 20 | — | 24 | — | |||||||||||||||||||||||||
Subtotal: | 37,900 | 49,511 | — | 39,830 | 31 | 42,390 | 201 | |||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 543 | $ | 759 | $ | 212 | $ | 695 | $ | — | $ | 778 | $ | 4 | ||||||||||||||||||
Commercial construction and land development | 2,055 | 2,929 | 667 | 2,062 | 3 | 2,123 | 12 | |||||||||||||||||||||||||
Commercial real estate other | 2,433 | 2,595 | 688 | 2,458 | — | 2,496 | 1 | |||||||||||||||||||||||||
Residential construction | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Residential mortgage | 690 | 724 | 234 | 697 | — | 707 | — | |||||||||||||||||||||||||
Consumer | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Subtotal: | 5,721 | 7,007 | 1,801 | 5,912 | 3 | 6,104 | 17 | |||||||||||||||||||||||||
Totals: | ||||||||||||||||||||||||||||||||
Commercial | $ | 28,783 | $ | 39,435 | $ | 1,567 | $ | 30,470 | $ | 30 | $ | 32,578 | $ | 154 | ||||||||||||||||||
Consumer | 19 | 29 | — | 20 | — | 24 | — | |||||||||||||||||||||||||
Residential | 14,819 | 17,054 | 234 | 15,252 | 4 | 15,892 | 64 | |||||||||||||||||||||||||
Grand Total | $ | 43,621 | $ | 56,518 | $ | 1,801 | $ | 45,742 | $ | 34 | $ | 48,494 | $ | 218 | ||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
Year to Date | ||||||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | ||||||||||||||||||||||||||||
Balance | Investment | Recognized | ||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 498 | $ | 686 | $ | — | $ | 484 | $ | 1 | ||||||||||||||||||||||
Commercial construction and land development | 11,266 | 15,889 | — | 13,008 | 22 | |||||||||||||||||||||||||||
Commercial real estate other | 12,865 | 14,263 | — | 12,328 | 64 | |||||||||||||||||||||||||||
Residential construction | 340 | 340 | — | 162 | — | |||||||||||||||||||||||||||
Residential mortgage | 10,106 | 11,542 | — | 9,937 | 132 | |||||||||||||||||||||||||||
Consumer | 25 | 42 | — | 26 | — | |||||||||||||||||||||||||||
Other | — | — | — | — | — | |||||||||||||||||||||||||||
Subtotal: | 35,100 | 42,762 | — | 35,945 | 219 | |||||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 939 | $ | 956 | $ | 636 | $ | 528 | $ | 11 | ||||||||||||||||||||||
Commercial construction and land development | 9,619 | 13,033 | 1,693 | 10,003 | 36 | |||||||||||||||||||||||||||
Commercial real estate other | 4,877 | 6,852 | 640 | 5,623 | 46 | |||||||||||||||||||||||||||
Residential construction | 833 | 1,134 | 86 | 884 | — | |||||||||||||||||||||||||||
Residential mortgage | 7,467 | 8,081 | 2,334 | 7,493 | 44 | |||||||||||||||||||||||||||
Consumer | 25 | 34 | — | 25 | — | |||||||||||||||||||||||||||
Other | — | — | — | — | — | |||||||||||||||||||||||||||
Subtotal: | 23,760 | 30,090 | 5,389 | 24,556 | 137 | |||||||||||||||||||||||||||
Totals: | ||||||||||||||||||||||||||||||||
Commercial | 40,064 | 51,679 | 2,969 | 41,974 | 180 | |||||||||||||||||||||||||||
Consumer | 50 | 76 | — | 51 | — | |||||||||||||||||||||||||||
Residential | 18,746 | 21,097 | 2,420 | 18,476 | 176 | |||||||||||||||||||||||||||
Grand Total | $ | 58,860 | $ | 72,852 | $ | 5,389 | $ | 60,501 | $ | 356 | ||||||||||||||||||||||
Loans on Nonaccrual Status | ||||||||||||||||||||||||||||||||
The following table illustrates nonaccrual loans by loan class as of September 30, 2013 and December 31, 2012. | ||||||||||||||||||||||||||||||||
September 30, 2013 | 31-Dec-12 | |||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
Commercial & industrial | $ | 898 | $ | 664 | ||||||||||||||||||||||||||||
Commercial construction and land development | 13,747 | 15,941 | ||||||||||||||||||||||||||||||
Commercial real estate | 7,529 | 9,091 | ||||||||||||||||||||||||||||||
Residential construction | 695 | 833 | ||||||||||||||||||||||||||||||
Residential mortgage | 10,985 | 9,408 | ||||||||||||||||||||||||||||||
Consumer | 19 | 33 | ||||||||||||||||||||||||||||||
Total | $ | 33,873 | $ | 35,970 | ||||||||||||||||||||||||||||
Troubled Debt Restructurings | ||||||||||||||||||||||||||||||||
For the three and nine months ended September 30, 2013 | ||||||||||||||||||||||||||||||||
Loans are classified as a troubled debt restructuring (“TDR”) when, for economic or legal reasons related to the debtor's financial difficulties, the Bank grants a concession to the debtor that would not otherwise be considered. Generally, these loans are restructured due to a borrower's inability to repay or meet the contractual obligations under the loan, which predominantly occurs because of cash flow problems. The Bank only restructures loans for borrowers in financial difficulty 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 potential of the underlying collateral or business. We may grant concessions by (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 on a bankruptcy plan. | ||||||||||||||||||||||||||||||||
Loans being renewed or modified are reviewed by the Bank to determine if the risk grade assigned is accurate based on updated information. All loans graded a “5” or worse at or prior to renewal or modification are also reviewed to determine if the loan should be classified as a TDR. The Bank's knowledge of the borrower's situation and any updated financial information obtained is first used to determine whether the borrower is experiencing financial difficulty. The Bank then reviews the requested modification terms to determine if a concession has been made. If the Bank determines the answer to both of the above items is yes, the loan will be classified as a TDR. If the Bank determines the answer to either of these questions is no, the loan is not classified as a TDR. Documentation to support this review and determination of classification is maintained with the credit file. | ||||||||||||||||||||||||||||||||
The Bank's policy with respect to accrual of interest on loans restructured as part of a TDR follows relevant supervisory guidance. If a borrower has demonstrated performance under the previous loan terms and shows capacity to perform under the restructured loan terms, continued accrual of interest at the restructured interest rate is likely. If the borrower was materially delinquent on payments prior to the restructuring, but shows the capacity to meet the restructured loan terms, the loan will likely continue as nonaccrual until such time as continued performance has been demonstrated, which is typically a period of at least six consecutive monthly payments. If the borrower does not perform under the restructured terms, the loan would remain on or be placed on nonaccrual status. We will continue to closely monitor these loans and will cease accruing interest on them if management believes that the borrowers may not continue performing based on the restructured terms. However, all TDRs are considered to be impaired and are evaluated as such in the quarterly allowance calculation. | ||||||||||||||||||||||||||||||||
The following table provides a summary of loans modified as TDRs at September 30, 2013 and December 31, 2012 (amounts in thousands). | ||||||||||||||||||||||||||||||||
September 30, 2013: | Accrual | Nonaccrual | Total TDRs | Allowance for Loan Losses Allocated | ||||||||||||||||||||||||||||
Commercial & Industrial | $ | 38 | $ | 337 | $ | 375 | $ | 25 | ||||||||||||||||||||||||
Commercial Construction and Land Development | 228 | 9,600 | 9,828 | — | ||||||||||||||||||||||||||||
Commercial real estate | 4,479 | 4,759 | 9,238 | 182 | ||||||||||||||||||||||||||||
Residential mortgage | 3,025 | 2,963 | 5,988 | 234 | ||||||||||||||||||||||||||||
Consumer | — | 3 | 3 | — | ||||||||||||||||||||||||||||
Total modifications | $ | 7,770 | $ | 17,662 | $ | 25,432 | $ | 441 | ||||||||||||||||||||||||
31-Dec-12 | Accrual | Nonaccrual | Total TDRs | Allowance for Loan Losses Allocated | ||||||||||||||||||||||||||||
Commercial & Industrial | $ | 349 | $ | 87 | $ | 436 | $ | 45 | ||||||||||||||||||||||||
Commercial Construction and Land Development | 3,484 | 10,659 | 14,143 | — | ||||||||||||||||||||||||||||
Commercial real estate | 5,522 | 4,437 | 9,959 | 922 | ||||||||||||||||||||||||||||
Residential mortgage | 3,945 | 3,113 | 7,058 | 372 | ||||||||||||||||||||||||||||
Total modifications | $ | 13,300 | $ | 18,296 | $ | 31,596 | $ | 1,339 | ||||||||||||||||||||||||
The following table presents a breakdown of new TDRs by loan class and the type of concession made to the borrower, for the three and nine months ended September 30, 2013. | ||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2013 | |||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||
(amounts in thousands, except number of loans) | ||||||||||||||||||||||||||||||||
Below market interest rate | ||||||||||||||||||||||||||||||||
Residential mortgage | — | $ | — | $ | — | 1 | $ | 453 | $ | 453 | ||||||||||||||||||||||
Subtotal | — | — | — | 1 | 453 | 453 | ||||||||||||||||||||||||||
Extended payment terms | ||||||||||||||||||||||||||||||||
Commercial real estate | — | $ | — | $ | — | 4 | $ | 213 | $ | 213 | ||||||||||||||||||||||
Residential mortgage | 1 | 58 | 58 | 4 | 249 | 249 | ||||||||||||||||||||||||||
Subtotal | 1 | 58 | 58 | 8 | 462 | 462 | ||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||
Commercial real estate | — | $ | — | $ | — | 1 | $ | 33 | $ | 33 | ||||||||||||||||||||||
Total | 1 | $ | 58 | $ | 58 | 10 | $ | 948 | $ | 948 | ||||||||||||||||||||||
The table below details successes and failures of TDRs that we have entered into during the twelve months ended September 30, 2013. There have been ten TDRs executed during the previous 12 months, of which two resulted in default by the borrower, as $30,000 was accepted as settlement and the remainder of $200,000 was charged off. Notes totaling $796,000 are paying as agreed in the restructure, and notes totaling $58,000 were converted to non-accrual. | ||||||||||||||||||||||||||||||||
For the 12 month period ended September 30, 2013 | ||||||||||||||||||||||||||||||||
Paid in full | Paying as restructured | Converted to non-accrual | Foreclosure/Default | |||||||||||||||||||||||||||||
Number of loans | Recorded Investment | Number of loans | Recorded Investment | Number of loans | Recorded Investment | Number of loans | Recorded Investment | |||||||||||||||||||||||||
(amounts in thousands, except number of loans) | ||||||||||||||||||||||||||||||||
Below market interest rate | — | $ | — | 1 | $ | 452 | — | $ | — | — | $ | — | ||||||||||||||||||||
Extended payment terms | — | — | 5 | 311 | 1 | 58 | 2 | — | ||||||||||||||||||||||||
Forgiveness of principal | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Other | — | — | 1 | 33 | — | — | — | — | ||||||||||||||||||||||||
Total | — | $ | — | 7 | $ | 796 | 1 | $ | 58 | 2 | $ | — | ||||||||||||||||||||
FAIR_VALUE_MEASUREMENT
FAIR VALUE MEASUREMENT | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
FAIR VALUE MEASUREMENT | ' | |||||||||||||||||||
FAIR VALUE MEASUREMENT | ||||||||||||||||||||
The Company records securities available for sale at fair value on a recurring basis. Fair value is a market-based measurement and is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. The transaction to sell the asset or transfer the liability is a hypothetical transaction at the measurement date, considered from the perspective of a market participant that holds the assets or owes the liability. In general, the transaction price will equal the exit price and, therefore, represent the fair value of the asset or liability at initial recognition. In determining whether a transaction price represents the fair value of the asset or liability at initial recognition, each reporting entity is required to consider factors specific to the transaction and the asset or liability, the principal or most advantageous market for the asset or liability, and market participants with whom the entity would transact in the market. | ||||||||||||||||||||
The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements and Disclosures” (“ASC 820”) establishes a fair value hierarchy to prioritize the inputs of valuation techniques used to measure fair value. The inputs are evaluated and an overall level for the fair value measurement is determined. This overall level is an indication of how market-observable the fair value measurement is and defines the level of disclosure. ASC 820 clarifies fair value in terms of the price in an orderly transaction between market participants to sell an asset or transfer a liability in the principal (or most advantageous) market for the asset or liability at the measurement date (an exit price). In order to determine the fair value or the exit price, entities must determine the unit of account, highest and best use, principal market, and market participants. These determinations allow the reporting entity to define the inputs for fair value and level of hierarchy. | ||||||||||||||||||||
Outlined below is the application of the fair value hierarchy established by ASC 820 to the Company’s financial assets that are carried at fair value. | ||||||||||||||||||||
Level 1 – Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. An active market for the asset or liability is a market in which the transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. | ||||||||||||||||||||
Level 2 – Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. | ||||||||||||||||||||
Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Unobservable inputs are supported by little or no market activity or by the entity’s own assumptions. | ||||||||||||||||||||
Fair Value Measured on a Recurring Basis. The Company measures certain assets at fair value on a recurring basis, as described below. | ||||||||||||||||||||
Investment Securities Available for Sale | ||||||||||||||||||||
Investment securities available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include mortgage-backed securities issued by the Government National Mortgage Association (“GNMA”), the Federal National Mortgage Association ("FNMA"), municipal bonds and corporate debt securities. | ||||||||||||||||||||
Securities classified as Level 3 include trust preferred securities. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Management has continued to monitor the creditworthiness of the issuers of trust preferred securities during the third quarter of 2013 in considering similar key factors. As of the date of the most recently available financial information, the issuers' market value, credit rating, income, and capital ratios have all increased. | ||||||||||||||||||||
As of September 30, 2013, the fair value of the Company's investments in available-for-sale Level 3 trust preferred securities was $1.0 million. These securities consist of two single issuer trust preferred securities and are floating rate securities based off of three month LIBOR plus a spread of 5.0% and a weighted average maturity of 6 years. The issuers of these securities are community bank financial institutions operating primarily in North Carolina. | ||||||||||||||||||||
To estimate their fair value, the Company's third party investment pricing organization used a valuation model, which is based on a discounted cash flow approach. While both securities have call features associated with them, given the current economic and regulatory environment, it has been assumed that for valuation purposes, these securities will be outstanding until maturity. The most significant input for the valuation model is the discount rate used in the analysis. Both the actual floating rate and estimated market rate of the securities are swapped to a comparable fixed rate using the LIBOR swap curve as of the valuation date. In the current environment, a fixed rate of 9.0% was used given the presence of preferred shares issued to the US Treasury under the Capital Purchase Program. The present value of the difference between the two rates is taken to determine the market value of the security. | ||||||||||||||||||||
The following table presents information about assets measured at fair value on a recurring basis at September 30, 2013 and December 31, 2012. | ||||||||||||||||||||
Fair Value Measurements at | ||||||||||||||||||||
September 30, 2013, Using | ||||||||||||||||||||
Total Carrying | Assets | Quoted Prices | Significant | Significant | ||||||||||||||||
Amount in the | Measured | in Active | Other | Unobservable | ||||||||||||||||
Consolidated | at Fair Value | Markets | Observable | Inputs | ||||||||||||||||
Balance Sheet | for Identical | Inputs | ||||||||||||||||||
Assets | ||||||||||||||||||||
Description | 9/30/13 | 9/30/13 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||
(amounts in thousands) | ||||||||||||||||||||
Taxable municipal securities | $ | 3,823 | $ | 3,823 | $ | — | $ | 3,823 | $ | — | ||||||||||
Mortgage-backed securities | ||||||||||||||||||||
GNMA | 3,845 | 3,845 | — | 3,845 | — | |||||||||||||||
FNMA | — | — | — | — | — | |||||||||||||||
Trust preferred securities | 1,025 | 1,025 | — | — | 1,025 | |||||||||||||||
Equity securities | 128 | 128 | 50 | 78 | — | |||||||||||||||
Total available for sale | $ | 8,821 | $ | 8,821 | $ | 50 | $ | 7,746 | $ | 1,025 | ||||||||||
securities | ||||||||||||||||||||
Fair Value Measurements at | ||||||||||||||||||||
December 31, 2012, Using | ||||||||||||||||||||
Total Carrying | Assets | Quoted Prices | Significant | Significant | ||||||||||||||||
Amount in the Consolidated | Measured | in Active | Other | Unobservable | ||||||||||||||||
Balance Sheet | at Fair Value | Markets | Observable | Inputs | ||||||||||||||||
for Identical | Inputs | |||||||||||||||||||
Assets | ||||||||||||||||||||
Description | 12/31/12 | 12/31/12 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||
(amounts in thousands) | ||||||||||||||||||||
Taxable municipal securities | $ | 5,913 | $ | 5,913 | $ | — | $ | 5,913 | $ | — | ||||||||||
Mortgage-backed securities | ||||||||||||||||||||
GNMA | 60,743 | 60,743 | — | 60,743 | — | |||||||||||||||
FNMA | 5,880 | 5,880 | — | 5,880 | — | |||||||||||||||
Trust preferred securities | 1,006 | 1,006 | — | — | 1,006 | |||||||||||||||
Equity securities | 180 | 180 | 56 | 124 | — | |||||||||||||||
Total available for sale | $ | 73,722 | $ | 73,722 | $ | 56 | $ | 72,660 | $ | 1,006 | ||||||||||
securities | ||||||||||||||||||||
The following table presents the reconciliation for the three and nine months ended September 30, 2013 and 2012 for all Level 3 assets that are measured at fair value on a recurring basis. | ||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
Securities available-for-sale | Securities available-for-sale | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||
Beginning Balance | $ | 1,019 | $ | 1,019 | $ | 1,006 | $ | 1,085 | ||||||||||||
Total realized and unrealized gains or (losses): | ||||||||||||||||||||
Included in earnings | — | — | — | — | ||||||||||||||||
Included in other comprehensive income (loss) | 6 | 12 | 19 | (54 | ) | |||||||||||||||
Purchases, issuances and settlements | — | — | — | — | ||||||||||||||||
Transfers in (out) of Level 3 | — | — | — | — | ||||||||||||||||
Ending Balance | $ | 1,025 | $ | 1,031 | $ | 1,025 | $ | 1,031 | ||||||||||||
Fair Value Measured on a Nonrecurring Basis. The Company measures certain assets at fair value on a nonrecurring basis, as described below. | ||||||||||||||||||||
Impaired Loans | ||||||||||||||||||||
The Company does not record loans at fair value on a recurring basis. However, from time to time, a loan is considered impaired and an allowance for loan losses is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment in accordance with ASC 310, “Receivables” and ASC 450, “Contingencies”. The fair value of impaired loans is estimated using one of several methods, including collateral value, market value of similar debt, enterprise value, liquidation value and discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. At September 30, 2013, substantially all of the total impaired loans were evaluated based on the fair value of the collateral. In accordance with ASC 820, impaired loans with an allowance established based on the fair value of collateral require classification in the fair value hierarchy. When the fair value of the collateral is based on an observable market price or a current appraised value that relies upon comparable values from identical sources, the Company records the impaired loan as nonrecurring Level 2. When a current appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the impaired loan as nonrecurring Level 3. Impaired loans totaled $43.6 million at September 30, 2013. Of such loans, $5.7 million had specific loss allowances aggregating $1.8 million at that date for a net fair value of $3.9 million. Of those specific allowances, all were determined using Level 3 inputs. For impaired loans with no specific allowance the Company has either determined that the fair value of the expected repayments or collateral exceeds the recorded investment in such loans or the loan has been partially charged-off to its fair value and as such a new cost basis has been established. | ||||||||||||||||||||
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 September 30, 2013 (amounts in thousands, except percentages): | ||||||||||||||||||||
Total Carrying Amount | ||||||||||||||||||||
Nonrecurring measurements: | ||||||||||||||||||||
Impaired loans | $ | 3,920 | Collateral discounts | 15-70% | ||||||||||||||||
Foreclosed assets | $ | 10,443 | Discounted appraisals | 10-30% | ||||||||||||||||
Recurring measurements: | ||||||||||||||||||||
Trust preferred securities | $ | 1,025 | Probability of default | 10-20% | ||||||||||||||||
Loss given default | 100% | |||||||||||||||||||
Foreclosed Assets | ||||||||||||||||||||
The carrying values of foreclosed assets are adjusted to not exceed the net realizable value upon transfer of the loans to foreclosed assets. Net realizable value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral adjusted for selling costs. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the foreclosed asset as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the foreclosed asset as nonrecurring Level 3. Through the nine month period ended September 30, 2013, the Company recognized approximately $1.2 million in valuation reductions on foreclosed assets and the carrying value of foreclosed assets was $10.4 million at September 30, 2013. As of and for the year ended December 31, 2012, there was $2.3 million recognized in valuation adjustments on foreclosed assets and the carrying value of foreclosed assets was $15.1 million at December 31, 2012. | ||||||||||||||||||||
The following table presents information about individually identified impaired loans and foreclosed assets measured on a non-recurring basis at fair value at September 30, 2013 and December 31, 2012. | ||||||||||||||||||||
Fair Value Measurements at | ||||||||||||||||||||
September 30, 2013, Using | ||||||||||||||||||||
Total Carrying | Assets | Quoted Prices | Significant | Significant | ||||||||||||||||
Amount in the | Measured | in Active | Other | Unobservable | ||||||||||||||||
Consolidated | at Fair Value | Markets | Observable | Inputs | ||||||||||||||||
Balance Sheet | for Identical | Inputs | ||||||||||||||||||
Assets | ||||||||||||||||||||
9/30/13 | 9/30/13 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||
Impaired loans | $ | 3,920 | $ | 3,920 | $ | — | $ | — | $ | 3,920 | ||||||||||
Foreclosed assets | $ | 10,443 | $ | 10,443 | $ | — | $ | — | $ | 10,443 | ||||||||||
Fair Value Measurements at | ||||||||||||||||||||
December 31, 2012, Using | ||||||||||||||||||||
Total Carrying | Assets | Quoted Prices | Significant | Significant Unobservable Inputs | ||||||||||||||||
Amount in the | Measured | in Active | Other | |||||||||||||||||
Consolidated | at Fair Value | Markets | Observable Inputs | |||||||||||||||||
Balance Sheet | for Identical | |||||||||||||||||||
Assets | ||||||||||||||||||||
12/31/12 | 12/31/12 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||
Impaired loans | $ | 18,371 | $ | 18,371 | $ | — | $ | — | $ | 18,371 | ||||||||||
Foreclosed assets | $ | 15,136 | $ | 15,136 | $ | — | $ | — | $ | 15,136 | ||||||||||
FAIR_VALUE_OF_FINANCIAL_INSTRU
FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ' | |||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||||||||||||||||||
ASC 825, “Financial Instruments” requires the disclosure of estimated fair values for financial instruments. Quoted market prices, if available, are utilized as an estimate of the fair value of financial instruments. Because no quoted market prices exist for a significant part of the Company’s financial instruments, the fair value of such instruments has been derived based on management’s assumptions with respect to future economic conditions, the amount and timing of future cash flows and estimated discount rates. Different assumptions could significantly affect these estimates. Accordingly, the net realizable value could be materially different from the estimates presented below. In addition, the estimates are only indicative of individual financial instruments’ values and should not be considered an indication of the fair value of the Company taken as a whole. The following methods and assumptions were used to estimate the fair value of each class of financial instrument. | ||||||||||||||||||
Cash and Cash Equivalents | ||||||||||||||||||
The carrying amounts of cash and due from banks, interest bearing due from banks, approximate to the fair values due to the liquid nature of the financial instruments and are classified as Level 1. | ||||||||||||||||||
CDs Held for Investment | ||||||||||||||||||
The carrying amounts for these assets approximate fair value because of the short maturities of those instruments. | ||||||||||||||||||
Investment Securities | ||||||||||||||||||
Fair values of investment securities available for sale 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. Fair value for investment securities held to maturity is determined using discounted cash flow analysis. | ||||||||||||||||||
Loans | ||||||||||||||||||
The Company does not record loans at fair value on a recurring basis. 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 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. However, from time to time, a loan is considered impaired and an allowance for loan losses is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Impaired loans are valued at the lower of cost or fair value. The methods utilized to estimate fair value of loans do not necessarily represent an exit price. | ||||||||||||||||||
FHLB Stock | ||||||||||||||||||
The carrying value of Federal Home Loan Bank (FHLB) stock approximates fair value based on the redemption provisions of the FHLB. | ||||||||||||||||||
Deposits | ||||||||||||||||||
The fair values disclosed for demand deposits (e.g., interest and non-interest checking, savings, and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount) resulting in a Level 2 classification. The carrying amount of certificates of deposit approximates their fair value at the reporting date. Fair value for certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits resulting in a Level 2 classification. | ||||||||||||||||||
Subordinated Debentures, and Subordinated Notes | ||||||||||||||||||
The fair value of 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, resulting in a Level 3 classification. | ||||||||||||||||||
Borrowings | ||||||||||||||||||
The fair value of borrowings as of September 30, 2013 is based on the monthly mark to market schedule published by the lender FHLB, which is indicative of current rates for similar borrowings of comparable remaining duration, resulting in a Level 2 classification. | ||||||||||||||||||
Accrued Interest Receivable and Payable | ||||||||||||||||||
The carrying amounts of accrued interest approximate fair value. | ||||||||||||||||||
The following table presents information for financial assets and liabilities as of September 30, 2013 and December 31, 2012. | ||||||||||||||||||
September 30, 2013 | ||||||||||||||||||
Carrying | Estimated | Level 1 | Level 2 | Level 3 | ||||||||||||||
Value | Fair Value | |||||||||||||||||
Financial assets: | (amounts in thousands) | |||||||||||||||||
Cash and cash equivalents | $ | 130,172 | $ | 130,172 | $ | 130,172 | $ | — | $ | — | ||||||||
CDs held for investment | $ | 35,035 | $ | 35,035 | $ | — | $ | 35,035 | $ | — | ||||||||
Securities available for sale | $ | 8,821 | $ | 8,821 | $ | 50 | $ | 7,746 | $ | 1,025 | ||||||||
Securities held to maturity | $ | 102,173 | $ | 101,296 | $ | — | $ | 101,296 | $ | — | ||||||||
Loans held for sale | $ | 214 | $ | 214 | $ | — | $ | — | $ | 214 | ||||||||
Loans, net | $ | 483,693 | $ | 484,777 | $ | — | $ | — | $ | 484,777 | ||||||||
FHLB stock | $ | 6,076 | $ | 6,076 | $ | — | $ | 6,076 | $ | — | ||||||||
Accrued interest receivable | $ | 1,570 | $ | 1,570 | $ | — | $ | 1,570 | $ | — | ||||||||
Financial liabilities: | ||||||||||||||||||
Deposits | $ | 646,380 | $ | 632,240 | $ | — | $ | 632,240 | $ | — | ||||||||
Subordinated debentures and promissory notes | $ | 24,372 | $ | 15,598 | $ | — | $ | — | $ | 15,598 | ||||||||
Borrowings | $ | 112,000 | $ | 122,231 | $ | — | $ | 122,231 | $ | — | ||||||||
Accrued interest payable | $ | 1,609 | $ | 1,609 | $ | — | $ | 1,609 | $ | — | ||||||||
December 31, 2012 | ||||||||||||||||||
Carrying | Estimated | Level 1 | Level 2 | Level 3 | ||||||||||||||
Value | Fair Value | |||||||||||||||||
Financial assets: | (amounts in thousands) | |||||||||||||||||
Cash and cash equivalents | $ | 183,150 | $ | 183,150 | $ | 183,150 | $ | — | $ | — | ||||||||
CDs held for investment | $ | 26,460 | $ | 26,460 | $ | — | $ | 26,460 | $ | — | ||||||||
Securities available for sale | $ | 73,722 | $ | 73,722 | $ | 56 | $ | 72,660 | $ | 1,006 | ||||||||
Securities held to maturity | $ | 20,329 | $ | 20,668 | $ | — | $ | 20,668 | $ | — | ||||||||
Loans held for sale | $ | 19,297 | $ | 19,297 | $ | — | $ | — | $ | 19,297 | ||||||||
Loans, net | $ | 481,380 | $ | 460,422 | $ | — | $ | — | $ | 460,422 | ||||||||
FHLB stock | $ | 6,415 | $ | 6,415 | $ | — | $ | 6,415 | $ | — | ||||||||
Premises and equipment, held for sale | $ | 1,901 | $ | 1,901 | $ | — | $ | — | $ | 1,901 | ||||||||
Accrued interest receivable | $ | 1,869 | $ | 1,869 | $ | — | $ | 1,869 | $ | — | ||||||||
Financial liabilities: | ||||||||||||||||||
Deposits | $ | 699,856 | $ | 694,184 | $ | — | $ | 694,184 | $ | — | ||||||||
Subordinated debentures and promissory notes | $ | 24,372 | $ | 15,598 | $ | — | $ | — | $ | 15,598 | ||||||||
Borrowings | $ | 112,000 | $ | 126,738 | $ | — | $ | 126,738 | $ | — | ||||||||
Accrued interest payable | $ | 1,736 | $ | 1,736 | $ | — | $ | 1,736 | $ | — | ||||||||
OTHER_RECENT_ACCOUNTING_PRONOU
OTHER RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2013 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
OTHER RECENT ACCOUNTING PRONOUNCEMENTS | ' |
OTHER RECENT ACCOUNTING PRONOUNCEMENTS | |
New Accounting Standards | |
In December 2011, the FASB issued (Accounting Standards Update) ASU 2011-11, Disclosures about Offsetting Assets and Liabilities, amending ASC Topic 210 requiring an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. The amendment is effective for annual and interim periods beginning on or after January 1, 2013. The adoption of this amendment did not have a material effect on the Company's consolidated financial statements. | |
In January 2013, the FASB issued ASU 2013-01, "Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities." The main objective of this Update is to address implementation issues about the scope of ASU No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting and Liabilities. The guidance in this ASU is effective for the first interim or annual period beginning on or after January 1, 2013. The adoption of the new guidance did not have a material impact on the Company's consolidated financial statements. | |
In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This update seeks to to improve the reporting of reclassifications out of accumulated other comprehensive income by requiring an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income, if the amount being reclassified is required under U.S. GAAP to be reclassified in its entirety to net income. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under U.S. GAAP that provide additional detail about those amounts. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is reclassified to a balance sheet account (for example, inventory) instead of directly to income or expense in the same reporting period. For public entities, the amendments are effective prospectively for reporting periods beginning after December 15, 2012. The adoption of this amendment 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. |
SUBORDINATED_NOTES
SUBORDINATED NOTES | 9 Months Ended |
Sep. 30, 2013 | |
Subordinated Debt [Abstract] | ' |
SUBORDINATED NOTES | ' |
SUBORDINATED NOTES | |
The Company is currently prohibited by the Written Agreement, described in Note J of these Notes to Consolidated Financial Statements, from paying interest on its subordinated promissory notes and on its subordinated debentures in connection with its trust preferred securities (TPS) without prior approval of the supervisory authorities. The Company and the Bank are prohibited from declaring or paying dividends without prior approval of the supervisory authorities. The Company obtained approval to pay the interest on its subordinated promissory notes for the third quarter of 2013. The Company exercised its right to defer regularly scheduled interest payments on its outstanding TPS and as of September 30, 2013, $650,000 of interest payments have been accrued for and deferred pursuant to the terms of the indenture governing the TPS. The Company may not pay any cash dividends on its Common Stock until it is current on interest payments on such TPS. The Company has not paid any cash dividends on its Common Stock since it suspended dividends in the fourth quarter of 2010. As a bank holding company, the Company’s ability to declare and pay dividends also depends on certain federal regulatory considerations, including the guidelines of the Federal Reserve regarding capital adequacy and dividends. |
REGULATORY_RESTRICTIONS
REGULATORY RESTRICTIONS | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Regulatory Capital Requirements [Abstract] | ' | ||||||||||||||||||||
REGULATORY RESTRICTIONS | ' | ||||||||||||||||||||
REGULATORY RESTRICTIONS | |||||||||||||||||||||
The Bank, as a North Carolina banking corporation, may pay dividends to the Company only out of undivided profits as determined pursuant to North Carolina General Statutes Section 53-87. However, regulatory authorities may limit payment of dividends by any bank when it is determined that such a limitation is in the public interest and is necessary to ensure the financial soundness of the bank. No dividends were paid to the Company by the Bank during the nine months ended September 30, 2013 or the years 2012 and 2011. | |||||||||||||||||||||
To be considered adequately capitalized, current federal regulations require that the Bank maintain a minimum ratio of total capital to risk weighted assets of 8%, with at least 4% being in the form of Tier 1 capital, as defined in the regulations. In addition, the Bank must maintain a leverage ratio, Tier 1 capital to average assets of 4%. To be categorized as well capitalized, the Bank must maintain minimum amounts and ratios as set forth in the table below. The Bank’s actual capital amounts and ratios are also presented in the table below. | |||||||||||||||||||||
Actual | Minimum For Capital | Minimum To be Well | |||||||||||||||||||
Adequacy Purposes | Capitalized under | ||||||||||||||||||||
Prompt Corrective | |||||||||||||||||||||
Action Provisions | |||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||
As of September 30, 2013: | (amounts in thousands, except ratios) | ||||||||||||||||||||
Total Capital (to Risk Weighted Assets) | $ | 50,761 | 10.84 | % | $ | 37,446 | 8 | % | $ | 46,808 | 10 | % | |||||||||
Tier I Capital (to Risk Weighted Assets) | 44,821 | 9.58 | % | 18,723 | 4 | % | 28,085 | 6 | % | ||||||||||||
Tier I Capital (to Average Assets) | 44,821 | 5.58 | % | 32,143 | 4 | % | 40,179 | 5 | % | ||||||||||||
As of December 31, 2012: | |||||||||||||||||||||
Total Capital (to Risk Weighted Assets) | $ | 50,044 | 10.2 | % | $ | 39,246 | 8 | % | $ | 49,057 | 10 | % | |||||||||
Tier I Capital (to Risk Weighted Assets) | 43,797 | 8.93 | % | 19,623 | 4 | % | 29,434 | 6 | % | ||||||||||||
Tier I Capital (to Average Assets) | 43,797 | 5.01 | % | 34,949 | 4 | % | 43,687 | 5 | % | ||||||||||||
The Company is also subject to capital requirements. At September 30, 2013 and December 31, 2012, the Company’s total capital to risk weighted assets, Tier 1 capital to risk weighted assets, and Tier 1 capital to average assets were 10.57%, 6.32%, and 3.68%, and 10.17%, 5.93%, and 3.33%, respectively. | |||||||||||||||||||||
In late May 2011, the Company and the Bank entered into the Written Agreement with the FRB and the NCCOB. Under the terms of the Written Agreement, the Bank developed and submitted for approval, within the time periods specified, plans to: | |||||||||||||||||||||
• | revise lending and credit administration policies and procedures at the Bank and provide relevant training; | ||||||||||||||||||||
• | enhance the Bank's real estate appraisal policies and procedures; | ||||||||||||||||||||
• | enhance the Bank's loan grading and independent loan review programs; | ||||||||||||||||||||
• | improve the Bank's position with respect to loans, relationships, or other assets in excess of $750,000, which are now or in the future become past due more than 90 days, are on the Bank's problem loan list, or adversely classified in any report of examination of the Bank; and | ||||||||||||||||||||
• | review and revise the Bank's policy regarding the Bank's allowance for loan and lease losses and maintain a program for the maintenance of an adequate allowance. | ||||||||||||||||||||
In addition, the Bank has agreed that it will: | |||||||||||||||||||||
• | refrain from extending, renewing, or restructuring any credit to or for the benefit of any borrower, or related interest, whose loans or other extensions of credit have been criticized in any report of examination of the Bank absent prior approval by the Bank's board of directors or a designated committee of the board in accordance with the restrictions in the Written Agreement; | ||||||||||||||||||||
• | eliminate from its books, by charge-off or collection, all assets or portions of assets classified as “loss” in any report of examination of the Bank, unless otherwise approved by the FRB and the NCCOB; and | ||||||||||||||||||||
• | take all necessary steps to correct all violations of law or regulation cited by the FRB and the NCCOB. | ||||||||||||||||||||
In addition, the Company has agreed that it will: | |||||||||||||||||||||
• | refrain from taking any form of payment representing a reduction in capital from the Bank or make any distributions of interest, principal, or other sums on subordinated debentures or trust preferred securities absent prior regulatory approval; | ||||||||||||||||||||
• | refrain from incurring, increasing, or guaranteeing any debt without the prior written approval of the FRB; and | ||||||||||||||||||||
• | refrain from purchasing or redeeming any shares of its stock without the prior written consent of the FRB. | ||||||||||||||||||||
Under the terms of the Written Agreement, both the Company and the Bank have agreed to: | |||||||||||||||||||||
• | submit for approval a joint plan to maintain sufficient capital at the Company on a consolidated basis and at the Bank on a stand-alone basis; | ||||||||||||||||||||
• | notify the FRB and the NCCOB if the Company's or the Bank's capital ratios fall below the approved capital plan's minimum ratios; | ||||||||||||||||||||
• | refrain from declaring or paying any dividends absent prior regulatory approval; | ||||||||||||||||||||
• | comply with applicable notice provisions with respect to the appointment of new directors and senior executive officers of the Company and the Bank and legal and regulatory limitations on indemnification and severance payments; and | ||||||||||||||||||||
• | submit annual business plans and budgets and quarterly joint written progress reports regarding compliance with the Written Agreement. | ||||||||||||||||||||
The Company is committed to expeditiously addressing and resolving the issues raised in the Written Agreement. As such, the Board of Directors has established an Enforcement Action Committee that meets regularly to monitor the Bank's progress on compliance with the Written Agreement. The Bank has made progress on multiple provisions included in the Written Agreement and continues to aggressively work to implement any necessary changes to policies and procedures. Several control changes have been implemented to address the identification and valuation of impaired loans, the support and validation of the allowance for loan losses, and the valuation of foreclosed assets. Additionally, the Bank has implemented additional controls around obtaining updated collateral valuations as required by regulation and has established new policies to further reduce commercial real estate concentrations, ensure current financial information is evaluated, and control interest only loans. The Bank also created a separate Special Assets department and added additional resources to provide adequate attention and expertise to problem loan management. Other areas also being addressed are the adequacy of credit resources, portfolio risk management and reporting, and consistency and compliance when dealing with loan workouts. A material failure to comply with the terms of the Written Agreement could subject the Company to additional regulatory actions and further restrictions on its business. These regulatory actions and resulting restrictions on the Company's business may have a material adverse effect on its future results of operations and financial condition. | |||||||||||||||||||||
Since the Company and the Bank entered the Written Agreement, management has had frequent and regular communication with the FRB and NCCOB. This communication has involved: | |||||||||||||||||||||
• | updates on the progress involving each of the actions outlined in the Written Agreement; | ||||||||||||||||||||
• | specific steps taken by the Company to remain in compliance with the Written Agreement; and | ||||||||||||||||||||
• | communications, verbally and via interim internal reports, regarding the financial status of the Company including, but not limited to, the Company's key capital ratios. | ||||||||||||||||||||
To date, the Company has not received any disagreement from the regulatory authorities regarding actions taken or contemplated. At this time, the Company is in partial compliance with the provisions of the Written Agreement. |
BRANCH_SALE
BRANCH SALE | 9 Months Ended |
Sep. 30, 2013 | |
Discontinued Operations and Disposal Groups [Abstract] | ' |
BRANCH SALE | ' |
BRANCH SALE | |
On March 22, 2013, the Bank sold selected deposits and assets associated with two branches located in Rockingham and Southern Pines, North Carolina. The transaction was consummated pursuant to a definitive purchase and assumption agreement with First Bank of Troy, North Carolina, which was entered into on September 26, 2012. Under the terms of the purchase and assumption agreement First Bank assumed the selected customer deposits of both branches offset by the purchase of (i) the aggregate net book value of the real property and related tangible personal property of the Rockingham, North Carolina branch as well as the value of cash on hand at the Rockingham, North Carolina branch, (ii) the aggregate of certain loans for both branches and (iii) a 1% premium of the deposits assumed. | |
Subject to a one-hundred day settlement period, the final cash settlement of $39.6 million to First Bank resulted from the assumption of customer deposits of $57.4 million less a 1% premium of the deposits balance of $0.6 million, and the sale of $17.2 million of related assets comprised of $0.2 million in cash on hand, $1.9 million of real property and equipment and $15.1 million of loans valued at March 19, 2013. |
ORGANIZATION_AND_GOING_CONCERN1
ORGANIZATION AND GOING CONCERN CONSIDERATIONS (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Going Concern Considerations | ' |
Going Concern Considerations | |
The consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future. Improving loan trends and a decrease in the specific reserve on individual impaired loans resulted in a small provision for loan losses for the nine months ended September 30, 2013. The year-to-date net charge offs at September 30, 2013 decreased from the amount reported in the prior year to date period. Nonperforming assets continue to be elevated, although balances are less for nonperforming assets at September 30, 2013 as compared to December 31, 2012. Initiatives by the Special Assets Department are expected to continue to resolve nonperforming loans by either returning them to performing status or removing them from the Company's books. Management expects some additional losses to result from this team's efforts as the process for moving these assets continues. Management still believes that its current operations and its cash availability are sufficient for the Company to discharge its liabilities and meet its commitments in the normal course of business. While management does not anticipate further significant deterioration in the Bank's loan portfolio and has performed stress tests and financial modeling under various potential scenarios in determining that the Company and the Bank will maintain at least adequate capitalization under federal regulatory guidelines, no assurances regarding these expectations can be made. These consolidated financial statements do not include any adjustments relating to the recoverability or classification of assets or the amounts and classification of liabilities that may be necessary should the Company be unable to continue as a going concern. | |
New Accounting Standards | ' |
New Accounting Standards | |
In December 2011, the FASB issued (Accounting Standards Update) ASU 2011-11, Disclosures about Offsetting Assets and Liabilities, amending ASC Topic 210 requiring an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. The amendment is effective for annual and interim periods beginning on or after January 1, 2013. The adoption of this amendment did not have a material effect on the Company's consolidated financial statements. | |
In January 2013, the FASB issued ASU 2013-01, "Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities." The main objective of this Update is to address implementation issues about the scope of ASU No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting and Liabilities. The guidance in this ASU is effective for the first interim or annual period beginning on or after January 1, 2013. The adoption of the new guidance did not have a material impact on the Company's consolidated financial statements. | |
In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This update seeks to to improve the reporting of reclassifications out of accumulated other comprehensive income by requiring an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income, if the amount being reclassified is required under U.S. GAAP to be reclassified in its entirety to net income. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under U.S. GAAP that provide additional detail about those amounts. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is reclassified to a balance sheet account (for example, inventory) instead of directly to income or expense in the same reporting period. For public entities, the amendments are effective prospectively for reporting periods beginning after December 15, 2012. The adoption of this amendment did not have a material effect on the Company's consolidated financial statements. |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Schedule of Loan Commitments | ' | |||
The following table presents loan commitments at September 30, 2013. | ||||
September 30, 2013 | ||||
(amounts in thousands) | ||||
Commitments to extend credit | $ | 37,891 | ||
Undisbursed lines of credit | 18,326 | |||
Financial stand-by letters of credit | 343 | |||
Performance stand-by letters of credit | 1,809 | |||
Legally binding commitments | 58,369 | |||
Unused credit card lines | 13,696 | |||
Total | $ | 72,065 | ||
NET_INCOME_PER_SHARE_Tables
NET INCOME PER SHARE (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Schedule of Weighted Average Number of Shares | ' | |||||||||||
Basic and diluted net income (loss) per common share have been computed based upon net income (loss) as presented in the accompanying consolidated statements of operations divided by the weighted average number of common shares outstanding or assumed to be outstanding as summarized below: | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Weighted average number of common shares used in computing basic net income (loss) per common share | 7,944,600 | 7,769,887 | 7,897,348 | 7,729,454 | ||||||||
Effect of dilutive stock options | — | — | — | — | ||||||||
Weighted average number of common shares and dilutive potential common shares used in computing diluted net income (loss) per common share | 7,944,600 | 7,769,887 | 7,897,348 | 7,729,454 | ||||||||
INVESTMENT_SECURITIES_Tables
INVESTMENT SECURITIES (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||
Schedule of Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses, and Fair Values of Securities Available for Sale | ' | |||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
Securities Available for Sale: | (amounts in thousands) | |||||||||||||||||||||||
Taxable municipal securities | $ | 3,971 | $ | — | $ | 148 | $ | 3,823 | ||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||
GNMA | 3,860 | — | 15 | 3,845 | ||||||||||||||||||||
Trust preferred securities | 1,175 | — | 150 | 1,025 | ||||||||||||||||||||
Equity securities | 98 | 30 | — | 128 | ||||||||||||||||||||
Total | $ | 9,104 | $ | 30 | $ | 313 | $ | 8,821 | ||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
Securities Available for Sale: | (amounts in thousands) | |||||||||||||||||||||||
Taxable municipal securities | $ | 5,459 | $ | 454 | $ | — | $ | 5,913 | ||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||
GNMA | 60,056 | 704 | 17 | 60,743 | ||||||||||||||||||||
FNMA | 5,872 | 10 | 2 | 5,880 | ||||||||||||||||||||
Trust preferred securities | 1,175 | — | 169 | 1,006 | ||||||||||||||||||||
Equity securities | 170 | 11 | 1 | 180 | ||||||||||||||||||||
Total | $ | 72,732 | $ | 1,179 | $ | 189 | $ | 73,722 | ||||||||||||||||
Schedule of Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses, and Fair Values of Securities Held to Maturity | ' | |||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
Securities Held to Maturity: | (amounts in thousands) | |||||||||||||||||||||||
Taxable municipal securities | $ | 3,648 | $ | 142 | $ | — | $ | 3,790 | ||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||
GNMA | 93,787 | 474 | 1,508 | 92,753 | ||||||||||||||||||||
FNMA | 4,738 | 15 | — | 4,753 | ||||||||||||||||||||
Total | $ | 102,173 | $ | 631 | $ | 1,508 | $ | 101,296 | ||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
Securities Held to Maturity: | (amounts in thousands) | |||||||||||||||||||||||
Mortgage-backed securities - GNMA | $ | 20,329 | $ | 339 | $ | — | $ | 20,668 | ||||||||||||||||
Total | $ | 20,329 | $ | 339 | $ | — | $ | 20,668 | ||||||||||||||||
Schedule of Unrealized Losses and Fair Values of Investment Securities | ' | |||||||||||||||||||||||
The following tables show gross unrealized losses and fair values of investment securities, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, at September 30, 2013 and December 31, 2012. At December 31, 2012 there were no unrealized losses in the held to maturity category. | ||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
value | losses | value | losses | value | losses | |||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||
Securities Available for Sale: | ||||||||||||||||||||||||
Taxable municipal securities | $ | 3,823 | $ | 148 | $ | 3,823 | $ | 148 | ||||||||||||||||
Mortgage-backed securities - GNMA | $ | 3,845 | $ | 15 | $ | — | $ | — | $ | 3,845 | $ | 15 | ||||||||||||
Total temporarily impaired securities | $ | 7,668 | $ | 163 | $ | — | $ | — | $ | 7,668 | $ | 163 | ||||||||||||
Other than temporary impairment | ||||||||||||||||||||||||
Trust preferred securities | $ | — | $ | — | $ | 1,025 | $ | 150 | $ | 1,025 | $ | 150 | ||||||||||||
Total other than temporarily impaired securities | $ | — | $ | — | $ | 1,025 | $ | 150 | $ | 1,025 | $ | 150 | ||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
value | losses | value | losses | value | losses | |||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||
Securities Held to Maturity: | ||||||||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||
GNMA | $ | 55,208 | $ | 1,508 | $ | — | $ | — | $ | 55,208 | $ | 1,508 | ||||||||||||
FNMA | — | — | — | — | — | — | ||||||||||||||||||
Total temporarily impaired securities | $ | 55,208 | $ | 1,508 | $ | — | $ | — | $ | 55,208 | $ | 1,508 | ||||||||||||
December 31, 2012 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
value | losses | value | losses | value | losses | |||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||
Securities Available for Sale: | ||||||||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||
GNMA | $ | 5,132 | $ | 17 | $ | — | $ | — | $ | 5,132 | $ | 17 | ||||||||||||
FNMA | 1,998 | 2 | — | — | 1,998 | 2 | ||||||||||||||||||
Equity securities | — | — | 2 | 1 | 2 | 1 | ||||||||||||||||||
Total temporarily impaired securities | $ | 7,130 | $ | 19 | $ | 2 | $ | 1 | $ | 7,132 | $ | 20 | ||||||||||||
Other than temporary impairment | ||||||||||||||||||||||||
Trust preferred securities | $ | — | $ | — | $ | 1,006 | $ | 169 | $ | 1,006 | $ | 169 | ||||||||||||
Total other than temporarily impaired securities | $ | — | $ | — | $ | 1,006 | $ | 169 | $ | 1,006 | $ | 169 | ||||||||||||
Investment Securities Classified by Contractual Maturities | ' | |||||||||||||||||||||||
The amortized cost and fair value of available for sale and held to maturity securities at September 30, 2013 by contractual maturities are shown on the following table. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | ||||||||||||||||||||||||
Available for Sale | ||||||||||||||||||||||||
Amortized | Fair | |||||||||||||||||||||||
Cost | Value | |||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||
Taxable municipal securities: | ||||||||||||||||||||||||
Due after one year through five years | $ | — | $ | — | ||||||||||||||||||||
Due after five years through ten years | — | — | ||||||||||||||||||||||
Due after ten years | 3,971 | 3,823 | ||||||||||||||||||||||
Total taxable municipal securities | 3,971 | 3,823 | ||||||||||||||||||||||
Mortgage-backed securities - GNMA/FNMA: | ||||||||||||||||||||||||
Due within one year | — | — | ||||||||||||||||||||||
Due after one year through five years | — | — | ||||||||||||||||||||||
Due after five years through ten years | — | — | ||||||||||||||||||||||
Due after ten years | 3,860 | 3,845 | ||||||||||||||||||||||
Total mortgage-backed securities - GNMA/FNMA | 3,860 | 3,845 | ||||||||||||||||||||||
Other securities: | ||||||||||||||||||||||||
Trust preferred securities | 1,175 | 1,025 | ||||||||||||||||||||||
Equity securities | 98 | 128 | ||||||||||||||||||||||
Total other securities | 1,273 | 1,153 | ||||||||||||||||||||||
Total available for sale securities | $ | 9,104 | $ | 8,821 | ||||||||||||||||||||
Held to Maturity | ||||||||||||||||||||||||
Amortized | Fair | |||||||||||||||||||||||
Cost | Value | |||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||
Taxable municipal securities: | ||||||||||||||||||||||||
Due within one year | — | — | ||||||||||||||||||||||
Due after one year through five years | 528 | 536 | ||||||||||||||||||||||
Due after five years through ten years | 3,120 | 3,254 | ||||||||||||||||||||||
Due after ten years | — | — | ||||||||||||||||||||||
Total taxable municipal securities | 3,648 | 3,790 | ||||||||||||||||||||||
Mortgage-backed securities - GNMA/FNMA: | ||||||||||||||||||||||||
Due within one year | 1,248 | 1,264 | ||||||||||||||||||||||
Due after one year through five years | 64,388 | 64,421 | ||||||||||||||||||||||
Due after five years through ten years | 31,684 | 30,618 | ||||||||||||||||||||||
Due after ten years | 1,205 | 1,203 | ||||||||||||||||||||||
Total mortgage-backed securities - GNMA/FNMA | 98,525 | 97,506 | ||||||||||||||||||||||
Total held to maturity securities | $ | 102,173 | $ | 101,296 | ||||||||||||||||||||
LOANS_Tables
LOANS (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Loans and Leases Receivable Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||
Summary of Loans Outstanding | ' | |||||||||||||||||||||||||||||||
The classification of loans as of September 30, 2013 and December 31, 2012 are summarized as follows: | ||||||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 27,286 | $ | 29,563 | ||||||||||||||||||||||||||||
Commercial construction and land development | 70,227 | 90,899 | ||||||||||||||||||||||||||||||
Commercial real estate | 197,858 | 181,194 | ||||||||||||||||||||||||||||||
Residential construction | 27,144 | 20,445 | ||||||||||||||||||||||||||||||
Residential mortgage | 163,890 | 165,009 | ||||||||||||||||||||||||||||||
Consumer | 8,928 | 9,664 | ||||||||||||||||||||||||||||||
Other | 1,085 | 1,278 | ||||||||||||||||||||||||||||||
Gross loans | 496,418 | 498,052 | ||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||
Net deferred loan fees | (429 | ) | (123 | ) | ||||||||||||||||||||||||||||
Net loans before allowance | 495,989 | 497,929 | ||||||||||||||||||||||||||||||
Allowance for loan losses | (12,296 | ) | (16,549 | ) | ||||||||||||||||||||||||||||
Total net loans | $ | 483,693 | $ | 481,380 | ||||||||||||||||||||||||||||
Summary of Nonperforming Assets | ' | |||||||||||||||||||||||||||||||
Nonperforming assets at September 30, 2013 and December 31, 2012 consist of the following: | ||||||||||||||||||||||||||||||||
September 30, 2013 | 31-Dec-12 | |||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
Loans past due ninety days or more and still accruing | $ | 25 | $ | 32 | ||||||||||||||||||||||||||||
Nonaccrual loans | 33,873 | 35,970 | ||||||||||||||||||||||||||||||
Foreclosed assets | 10,443 | 15,136 | ||||||||||||||||||||||||||||||
Total | $ | 44,341 | $ | 51,138 | ||||||||||||||||||||||||||||
Analysis of the Allowance for Loan Losses by Loan Class | ' | |||||||||||||||||||||||||||||||
The following tables are an analysis of the allowance for loan losses by loan class, as of and for the three and nine months ended September 30, 2013 and 2012 and as of and for the twelve months ended December 31, 2012. | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Residential | Consumer | Other | Totals | |||||||||||||||||||||||||
and | Construction | Real | Construction | Mortgage | ||||||||||||||||||||||||||||
Industrial | and Land | Estate | ||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||
Allowances for loan losses: | (amounts in thousands) | |||||||||||||||||||||||||||||||
Balance July 1, 2013 | $ | 969 | $ | 6,574 | $ | 2,763 | $ | 449 | $ | 3,013 | $ | 178 | $ | 92 | $ | 14,038 | ||||||||||||||||
Provision for loan losses | (263 | ) | 125 | 817 | 79 | (718 | ) | (11 | ) | (29 | ) | — | ||||||||||||||||||||
Loans charged-off | (207 | ) | (1,485 | ) | (503 | ) | — | (259 | ) | (52 | ) | — | (2,506 | ) | ||||||||||||||||||
Recoveries | 175 | 318 | 11 | — | 211 | 49 | — | 764 | ||||||||||||||||||||||||
Net (charge-offs) recoveries | (32 | ) | (1,167 | ) | (492 | ) | — | (48 | ) | (3 | ) | — | (1,742 | ) | ||||||||||||||||||
Balance September 30, 2013 | $ | 674 | $ | 5,532 | $ | 3,088 | $ | 528 | $ | 2,247 | $ | 164 | $ | 63 | $ | 12,296 | ||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Residential | Consumer | Other | Totals | |||||||||||||||||||||||||
and | Construction | Real | Construction | Mortgage | ||||||||||||||||||||||||||||
Industrial | and Land | Estate | ||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||
Allowances for loan losses: | (amounts in thousands) | |||||||||||||||||||||||||||||||
Balance January 1, 2013 | $ | 1,185 | $ | 7,251 | $ | 2,961 | $ | 423 | $ | 4,471 | $ | 188 | $ | 70 | $ | 16,549 | ||||||||||||||||
Provision for loan losses | (670 | ) | 1,128 | 836 | 243 | (1,553 | ) | 58 | (7 | ) | 35 | |||||||||||||||||||||
Loans charged-off | (267 | ) | (3,343 | ) | (1,728 | ) | (138 | ) | (1,164 | ) | (216 | ) | — | (6,856 | ) | |||||||||||||||||
Recoveries | 426 | 496 | 1,019 | — | 493 | 134 | — | 2,568 | ||||||||||||||||||||||||
Net (charge-offs) recoveries | 159 | (2,847 | ) | (709 | ) | (138 | ) | (671 | ) | (82 | ) | — | (4,288 | ) | ||||||||||||||||||
Balance September 30, 2013 | $ | 674 | $ | 5,532 | $ | 3,088 | $ | 528 | $ | 2,247 | $ | 164 | $ | 63 | $ | 12,296 | ||||||||||||||||
Ending Balance: individually | $ | 212 | $ | 667 | $ | 688 | $ | — | $ | 234 | $ | — | $ | — | $ | 1,801 | ||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Ending Balance: collectively | $ | 462 | $ | 4,865 | $ | 2,400 | $ | 528 | $ | 2,013 | $ | 164 | $ | 63 | $ | 10,495 | ||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||
Ending balance | $ | 27,286 | $ | 70,227 | $ | 197,858 | $ | 27,144 | $ | 163,890 | $ | 8,928 | $ | 1,085 | $ | 496,418 | ||||||||||||||||
Less: ending Balance: individually | 936 | 14,328 | 13,519 | 695 | 14,124 | 19 | — | 43,621 | ||||||||||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Ending balance: collectively | $ | 26,350 | $ | 55,899 | $ | 184,339 | $ | 26,449 | $ | 149,766 | $ | 8,909 | $ | 1,085 | $ | 452,797 | ||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
September 30, 2012 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Residential | Consumer | Other | Totals | |||||||||||||||||||||||||
and | Construction | Real | Construction | Mortgage | ||||||||||||||||||||||||||||
Industrial | and Land | Estate | ||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
Allowances for loan losses: | ||||||||||||||||||||||||||||||||
Balance July 1, 2012 | $ | 1,786 | $ | 8,010 | $ | 3,290 | $ | 401 | $ | 4,438 | $ | 482 | $ | 11 | $ | 18,418 | ||||||||||||||||
Provision for loan losses | (493 | ) | 1,783 | 733 | (108 | ) | 103 | 16 | 55 | 2,089 | ||||||||||||||||||||||
Loans charged-off | (241 | ) | (2,580 | ) | (791 | ) | (1 | ) | (508 | ) | (75 | ) | — | (4,196 | ) | |||||||||||||||||
Recoveries | 142 | 145 | 123 | — | 170 | 30 | 610 | |||||||||||||||||||||||||
Net (charge-offs) recoveries | (99 | ) | (2,435 | ) | (668 | ) | (1 | ) | (338 | ) | (45 | ) | — | (3,586 | ) | |||||||||||||||||
Balance September 30, 2012 | $ | 1,194 | $ | 7,358 | $ | 3,355 | $ | 292 | $ | 4,203 | $ | 453 | $ | 66 | $ | 16,921 | ||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||||||||
30-Sep-12 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Residential | Consumer | Other | Totals | |||||||||||||||||||||||||
and | Construction | Real | Construction | Mortgage | ||||||||||||||||||||||||||||
Industrial | and Land | Estate | ||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||
Allowances for loan losses: | (amounts in thousands) | |||||||||||||||||||||||||||||||
Balance January 1, 2012 | $ | 2,730 | $ | 8,799 | $ | 3,800 | $ | 740 | $ | 4,630 | $ | 413 | $ | 29 | $ | 21,141 | ||||||||||||||||
Provision for loan losses | (1,109 | ) | 2,349 | 531 | (412 | ) | 83 | 324 | 37 | 1,803 | ||||||||||||||||||||||
Loans charged-off | (681 | ) | (4,735 | ) | (1,277 | ) | (36 | ) | (786 | ) | (405 | ) | — | (7,920 | ) | |||||||||||||||||
Recoveries | 254 | 945 | 301 | — | 276 | 121 | — | 1,897 | ||||||||||||||||||||||||
Net (charge-offs) recoveries | (427 | ) | (3,790 | ) | (976 | ) | (36 | ) | (510 | ) | (284 | ) | — | (6,023 | ) | |||||||||||||||||
Balance September 30, 2012 | $ | 1,194 | $ | 7,358 | $ | 3,355 | $ | 292 | $ | 4,203 | $ | 453 | $ | 66 | $ | 16,921 | ||||||||||||||||
Ending Balance: individually | $ | 258 | $ | 2,815 | $ | 1,762 | $ | 68 | $ | 2,342 | $ | — | $ | — | $ | 7,245 | ||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Ending Balance: collectively | $ | 936 | $ | 4,543 | $ | 1,593 | $ | 224 | $ | 1,861 | $ | 453 | $ | 66 | $ | 9,676 | ||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||
Ending balance | $ | 31,201 | $ | 102,776 | $ | 186,850 | $ | 22,922 | $ | 182,230 | $ | 10,007 | $ | 4,484 | $ | 540,470 | ||||||||||||||||
Less ending balance: individually | 1,233 | 32,382 | 20,052 | 1,404 | 20,960 | 45 | — | 76,076 | ||||||||||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Ending balance: collectively | $ | 29,968 | $ | 70,394 | $ | 166,798 | $ | 21,518 | $ | 161,270 | $ | 9,962 | $ | 4,484 | $ | 464,394 | ||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Twelve Months Ended | ||||||||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Residential | Consumer | Other | Totals | |||||||||||||||||||||||||
and | Construction | Real | Construction | Mortgage | ||||||||||||||||||||||||||||
Industrial | and Land | Estate | ||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
Allowances for loan losses: | ||||||||||||||||||||||||||||||||
Balance January 1, 2012 | $ | 2,730 | $ | 8,799 | $ | 3,800 | $ | 740 | $ | 4,630 | $ | 413 | $ | 29 | $ | 21,141 | ||||||||||||||||
Provision for loan losses | (1,464 | ) | 5,205 | 2,486 | (214 | ) | 1,184 | 143 | 41 | 7,381 | ||||||||||||||||||||||
Loans charged-off | (703 | ) | (7,929 | ) | (3,691 | ) | (103 | ) | (1,801 | ) | (516 | ) | — | (14,743 | ) | |||||||||||||||||
Recoveries | 622 | 1,176 | 366 | — | 458 | 148 | — | 2,770 | ||||||||||||||||||||||||
Net (charge-offs) recoveries | (81 | ) | (6,753 | ) | (3,325 | ) | (103 | ) | (1,343 | ) | (368 | ) | — | (11,973 | ) | |||||||||||||||||
Balance December 31, 2012 | $ | 1,185 | $ | 7,251 | $ | 2,961 | $ | 423 | $ | 4,471 | $ | 188 | $ | 70 | $ | 16,549 | ||||||||||||||||
Ending Balance: individually | $ | 636 | $ | 1,693 | $ | 640 | $ | 86 | $ | 2,334 | $ | — | $ | — | $ | 5,389 | ||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Ending Balance: collectively | $ | 549 | $ | 5,558 | $ | 2,321 | $ | 337 | $ | 2,137 | $ | 188 | $ | 70 | $ | 11,160 | ||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||
Ending balance | $ | 29,563 | $ | 90,899 | $ | 181,194 | $ | 20,445 | $ | 165,009 | $ | 9,664 | $ | 1,278 | $ | 498,052 | ||||||||||||||||
Less: ending Balance: individually | 1,437 | 20,885 | 17,742 | 1,173 | 17,573 | 50 | — | 58,860 | ||||||||||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Ending balance: collectively | $ | 28,126 | $ | 70,014 | $ | 163,452 | $ | 19,272 | $ | 147,436 | $ | 9,614 | $ | 1,278 | $ | 439,192 | ||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Summary of Segments of Loans by Grade | ' | |||||||||||||||||||||||||||||||
The following tables are an analysis of the creditworthiness class by loan class and credit card portfolio exposure as of September 30, 2013 and December 31, 2012. | ||||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Residential | Consumer | Other | Totals | |||||||||||||||||||||||||
and | Construction | Real | Construction | Mortgage | ||||||||||||||||||||||||||||
Industrial | and Land | Estate | ||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
1 - Lowest Risk | $ | 2,100 | $ | — | $ | — | $ | — | $ | — | $ | 1,331 | $ | 11 | $ | 3,442 | ||||||||||||||||
2 - Satisfactory Quality | 580 | 344 | 2,299 | 4 | 12,374 | 254 | 16 | 15,871 | ||||||||||||||||||||||||
3 - Satisfactory | ||||||||||||||||||||||||||||||||
- Merits Attention | 9,745 | 15,257 | 70,418 | 3,016 | 57,023 | 3,959 | 816 | 160,234 | ||||||||||||||||||||||||
4 - Low Satisfactory | 12,448 | 33,874 | 109,955 | 22,781 | 69,362 | 1,078 | 113 | 249,611 | ||||||||||||||||||||||||
5 - Special mention | 196 | 3,600 | 2,558 | 162 | 7,519 | 69 | 129 | 14,233 | ||||||||||||||||||||||||
6-8 - Substandard | 1,035 | 17,152 | 12,628 | 1,181 | 17,612 | 61 | — | 49,669 | ||||||||||||||||||||||||
$ | 26,104 | $ | 70,227 | $ | 197,858 | $ | 27,144 | $ | 163,890 | $ | 6,752 | $ | 1,085 | $ | 493,060 | |||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Consumer - | Business- | |||||||||||||||||||||||||||||||
Credit Card | Credit Card | |||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
Performing | $ | 2,156 | $ | 1,177 | ||||||||||||||||||||||||||||
Non Performing | 20 | 5 | ||||||||||||||||||||||||||||||
Total | $ | 2,176 | $ | 1,182 | ||||||||||||||||||||||||||||
Total Loans | $ | 496,418 | ||||||||||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Residential | Consumer | Other | Totals | |||||||||||||||||||||||||
and | Construction | Real | Construction | Mortgage | ||||||||||||||||||||||||||||
Industrial | and Land | Estate | ||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
1 - Lowest Risk | $ | 2,446 | $ | — | $ | — | $ | — | $ | 51 | $ | 1,372 | $ | 13 | $ | 3,882 | ||||||||||||||||
2 - Satisfactory Quality | 441 | 595 | 2,429 | 109 | 10,595 | 288 | — | 14,457 | ||||||||||||||||||||||||
3 - Satisfactory | ||||||||||||||||||||||||||||||||
- Merits Attention | 10,222 | 22,278 | 51,384 | 1,337 | 58,140 | 4,526 | 1,091 | 148,978 | ||||||||||||||||||||||||
4 - Low Satisfactory | 13,558 | 35,502 | 104,652 | 17,008 | 68,148 | 1,019 | 125 | 240,012 | ||||||||||||||||||||||||
5 - Special mention | 323 | 9,064 | 6,228 | 356 | 9,720 | 91 | 49 | 25,831 | ||||||||||||||||||||||||
6-8 - Substandard | 1,387 | 23,460 | 16,501 | 1,635 | 18,355 | 103 | — | 61,441 | ||||||||||||||||||||||||
$ | 28,377 | $ | 90,899 | $ | 181,194 | $ | 20,445 | $ | 165,009 | $ | 7,399 | $ | 1,278 | $ | 494,601 | |||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
Consumer- | Business- | |||||||||||||||||||||||||||||||
Credit Card | Credit Card | |||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
Performing | $ | 2,233 | $ | 1,186 | ||||||||||||||||||||||||||||
Non Performing | 32 | — | ||||||||||||||||||||||||||||||
Total | $ | 2,265 | $ | 1,186 | ||||||||||||||||||||||||||||
Total Loans | $ | 498,052 | ||||||||||||||||||||||||||||||
Age Analysis of Past Due Loans | ' | |||||||||||||||||||||||||||||||
The following tables are an age analysis of past due loans by loan class, as of September 30, 2013 and December 31, 2012. | ||||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
30-89 Days | Nonaccrual | Total Past | Current | Total | Recorded | |||||||||||||||||||||||||||
Past Due | and Greater | Due | Loans | Investment | ||||||||||||||||||||||||||||
than 90 | > 90 Days | |||||||||||||||||||||||||||||||
Days Past | and | |||||||||||||||||||||||||||||||
Due | Accruing | |||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
Commercial & industrial | $ | 28 | $ | 898 | — | $ | 926 | $ | 25,178 | $ | 26,104 | $ | — | |||||||||||||||||||
Commercial construction and land Development | 757 | 13,747 | 14,504 | 55,723 | 70,227 | — | ||||||||||||||||||||||||||
Commercial real estate | 471 | 7,529 | 8,000 | 189,858 | 197,858 | — | ||||||||||||||||||||||||||
Residential construction | — | 695 | 695 | 26,449 | 27,144 | — | ||||||||||||||||||||||||||
Residential mortgage | 779 | 10,985 | 11,764 | 152,126 | 163,890 | — | ||||||||||||||||||||||||||
Consumer | 20 | 19 | 39 | 6,713 | 6,752 | — | ||||||||||||||||||||||||||
Consumer credit cards | 74 | 20 | 94 | 2,082 | 2,176 | 20 | ||||||||||||||||||||||||||
Business credit cards | 9 | 5 | 14 | 1,168 | 1,182 | 5 | ||||||||||||||||||||||||||
Other loans | — | — | — | 1,085 | 1,085 | — | ||||||||||||||||||||||||||
Total | $ | 2,138 | $ | 33,898 | $ | 36,036 | $ | 460,382 | $ | 496,418 | $ | 25 | ||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
30-89 Days | Nonaccrual | Total Past | Current | Total | Recorded | |||||||||||||||||||||||||||
Past Due | and Greater | Due | Loans | Investment | ||||||||||||||||||||||||||||
than 90 | > 90 Days | |||||||||||||||||||||||||||||||
Days Past | and | |||||||||||||||||||||||||||||||
Due | Accruing | |||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
Commercial & industrial | $ | 119 | $ | 664 | $ | 783 | $ | 27,594 | $ | 28,377 | $ | — | ||||||||||||||||||||
Commercial construction and land Development | 819 | 15,941 | 16,760 | 74,139 | 90,899 | — | ||||||||||||||||||||||||||
Commercial real estate | 499 | 9,091 | 9,590 | 171,604 | 181,194 | — | ||||||||||||||||||||||||||
Residential construction | — | 833 | 833 | 19,612 | 20,445 | — | ||||||||||||||||||||||||||
Residential mortgage | 1,076 | 9,408 | 10,484 | 154,525 | 165,009 | — | ||||||||||||||||||||||||||
Consumer | 34 | 33 | 67 | 7,332 | 7,399 | — | ||||||||||||||||||||||||||
Consumer credit cards | 67 | 32 | 99 | 2,166 | 2,265 | 32 | ||||||||||||||||||||||||||
Business credit cards | 12 | — | 12 | 1,174 | 1,186 | — | ||||||||||||||||||||||||||
Other loans | — | — | — | 1,278 | 1,278 | — | ||||||||||||||||||||||||||
Total | $ | 2,626 | $ | 36,002 | $ | 38,628 | $ | 459,424 | $ | 498,052 | $ | 32 | ||||||||||||||||||||
Summary of Impaired Loans | ' | |||||||||||||||||||||||||||||||
The following table illustrates the impaired loans by loan class as of September 30, 2013 and December 31, 2012. | ||||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Quarter to Date | Year to Date | |||||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | Average | Interest | ||||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | Recorded | Income | ||||||||||||||||||||||||||
Balance | Investment | Recognized | Investment | Recognized | ||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 393 | $ | 432 | $ | — | $ | 421 | $ | 2 | $ | 449 | $ | 10 | ||||||||||||||||||
Commercial construction and land development | 12,273 | 19,364 | — | 13,400 | 15 | 14,797 | 73 | |||||||||||||||||||||||||
Commercial real estate other | 11,086 | 13,356 | — | 11,434 | 10 | 11,935 | 54 | |||||||||||||||||||||||||
Residential construction | 695 | 1,134 | — | 695 | — | 766 | — | |||||||||||||||||||||||||
Residential mortgage | 13,434 | 15,196 | — | 13,860 | 4 | 14,419 | 64 | |||||||||||||||||||||||||
Consumer | 19 | 29 | — | 20 | — | 24 | — | |||||||||||||||||||||||||
Subtotal: | 37,900 | 49,511 | — | 39,830 | 31 | 42,390 | 201 | |||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 543 | $ | 759 | $ | 212 | $ | 695 | $ | — | $ | 778 | $ | 4 | ||||||||||||||||||
Commercial construction and land development | 2,055 | 2,929 | 667 | 2,062 | 3 | 2,123 | 12 | |||||||||||||||||||||||||
Commercial real estate other | 2,433 | 2,595 | 688 | 2,458 | — | 2,496 | 1 | |||||||||||||||||||||||||
Residential construction | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Residential mortgage | 690 | 724 | 234 | 697 | — | 707 | — | |||||||||||||||||||||||||
Consumer | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Subtotal: | 5,721 | 7,007 | 1,801 | 5,912 | 3 | 6,104 | 17 | |||||||||||||||||||||||||
Totals: | ||||||||||||||||||||||||||||||||
Commercial | $ | 28,783 | $ | 39,435 | $ | 1,567 | $ | 30,470 | $ | 30 | $ | 32,578 | $ | 154 | ||||||||||||||||||
Consumer | 19 | 29 | — | 20 | — | 24 | — | |||||||||||||||||||||||||
Residential | 14,819 | 17,054 | 234 | 15,252 | 4 | 15,892 | 64 | |||||||||||||||||||||||||
Grand Total | $ | 43,621 | $ | 56,518 | $ | 1,801 | $ | 45,742 | $ | 34 | $ | 48,494 | $ | 218 | ||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
Year to Date | ||||||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | ||||||||||||||||||||||||||||
Balance | Investment | Recognized | ||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 498 | $ | 686 | $ | — | $ | 484 | $ | 1 | ||||||||||||||||||||||
Commercial construction and land development | 11,266 | 15,889 | — | 13,008 | 22 | |||||||||||||||||||||||||||
Commercial real estate other | 12,865 | 14,263 | — | 12,328 | 64 | |||||||||||||||||||||||||||
Residential construction | 340 | 340 | — | 162 | — | |||||||||||||||||||||||||||
Residential mortgage | 10,106 | 11,542 | — | 9,937 | 132 | |||||||||||||||||||||||||||
Consumer | 25 | 42 | — | 26 | — | |||||||||||||||||||||||||||
Other | — | — | — | — | — | |||||||||||||||||||||||||||
Subtotal: | 35,100 | 42,762 | — | 35,945 | 219 | |||||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 939 | $ | 956 | $ | 636 | $ | 528 | $ | 11 | ||||||||||||||||||||||
Commercial construction and land development | 9,619 | 13,033 | 1,693 | 10,003 | 36 | |||||||||||||||||||||||||||
Commercial real estate other | 4,877 | 6,852 | 640 | 5,623 | 46 | |||||||||||||||||||||||||||
Residential construction | 833 | 1,134 | 86 | 884 | — | |||||||||||||||||||||||||||
Residential mortgage | 7,467 | 8,081 | 2,334 | 7,493 | 44 | |||||||||||||||||||||||||||
Consumer | 25 | 34 | — | 25 | — | |||||||||||||||||||||||||||
Other | — | — | — | — | — | |||||||||||||||||||||||||||
Subtotal: | 23,760 | 30,090 | 5,389 | 24,556 | 137 | |||||||||||||||||||||||||||
Totals: | ||||||||||||||||||||||||||||||||
Commercial | 40,064 | 51,679 | 2,969 | 41,974 | 180 | |||||||||||||||||||||||||||
Consumer | 50 | 76 | — | 51 | — | |||||||||||||||||||||||||||
Residential | 18,746 | 21,097 | 2,420 | 18,476 | 176 | |||||||||||||||||||||||||||
Grand Total | $ | 58,860 | $ | 72,852 | $ | 5,389 | $ | 60,501 | $ | 356 | ||||||||||||||||||||||
Schedule of Loans, Non Accrual Status | ' | |||||||||||||||||||||||||||||||
The following table illustrates nonaccrual loans by loan class as of September 30, 2013 and December 31, 2012. | ||||||||||||||||||||||||||||||||
September 30, 2013 | 31-Dec-12 | |||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
Commercial & industrial | $ | 898 | $ | 664 | ||||||||||||||||||||||||||||
Commercial construction and land development | 13,747 | 15,941 | ||||||||||||||||||||||||||||||
Commercial real estate | 7,529 | 9,091 | ||||||||||||||||||||||||||||||
Residential construction | 695 | 833 | ||||||||||||||||||||||||||||||
Residential mortgage | 10,985 | 9,408 | ||||||||||||||||||||||||||||||
Consumer | 19 | 33 | ||||||||||||||||||||||||||||||
Total | $ | 33,873 | $ | 35,970 | ||||||||||||||||||||||||||||
Schedule of Loans Modified as Troubled Debt Restructurings | ' | |||||||||||||||||||||||||||||||
The following table provides a summary of loans modified as TDRs at September 30, 2013 and December 31, 2012 (amounts in thousands). | ||||||||||||||||||||||||||||||||
September 30, 2013: | Accrual | Nonaccrual | Total TDRs | Allowance for Loan Losses Allocated | ||||||||||||||||||||||||||||
Commercial & Industrial | $ | 38 | $ | 337 | $ | 375 | $ | 25 | ||||||||||||||||||||||||
Commercial Construction and Land Development | 228 | 9,600 | 9,828 | — | ||||||||||||||||||||||||||||
Commercial real estate | 4,479 | 4,759 | 9,238 | 182 | ||||||||||||||||||||||||||||
Residential mortgage | 3,025 | 2,963 | 5,988 | 234 | ||||||||||||||||||||||||||||
Consumer | — | 3 | 3 | — | ||||||||||||||||||||||||||||
Total modifications | $ | 7,770 | $ | 17,662 | $ | 25,432 | $ | 441 | ||||||||||||||||||||||||
31-Dec-12 | Accrual | Nonaccrual | Total TDRs | Allowance for Loan Losses Allocated | ||||||||||||||||||||||||||||
Commercial & Industrial | $ | 349 | $ | 87 | $ | 436 | $ | 45 | ||||||||||||||||||||||||
Commercial Construction and Land Development | 3,484 | 10,659 | 14,143 | — | ||||||||||||||||||||||||||||
Commercial real estate | 5,522 | 4,437 | 9,959 | 922 | ||||||||||||||||||||||||||||
Residential mortgage | 3,945 | 3,113 | 7,058 | 372 | ||||||||||||||||||||||||||||
Total modifications | $ | 13,300 | $ | 18,296 | $ | 31,596 | $ | 1,339 | ||||||||||||||||||||||||
Summary of Troubled Debt Restructurings by Loan Class | ' | |||||||||||||||||||||||||||||||
The following table presents a breakdown of new TDRs by loan class and the type of concession made to the borrower, for the three and nine months ended September 30, 2013. | ||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2013 | |||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||
(amounts in thousands, except number of loans) | ||||||||||||||||||||||||||||||||
Below market interest rate | ||||||||||||||||||||||||||||||||
Residential mortgage | — | $ | — | $ | — | 1 | $ | 453 | $ | 453 | ||||||||||||||||||||||
Subtotal | — | — | — | 1 | 453 | 453 | ||||||||||||||||||||||||||
Extended payment terms | ||||||||||||||||||||||||||||||||
Commercial real estate | — | $ | — | $ | — | 4 | $ | 213 | $ | 213 | ||||||||||||||||||||||
Residential mortgage | 1 | 58 | 58 | 4 | 249 | 249 | ||||||||||||||||||||||||||
Subtotal | 1 | 58 | 58 | 8 | 462 | 462 | ||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||
Commercial real estate | — | $ | — | $ | — | 1 | $ | 33 | $ | 33 | ||||||||||||||||||||||
Total | 1 | $ | 58 | $ | 58 | 10 | $ | 948 | $ | 948 | ||||||||||||||||||||||
Summary of Successes and Failures of Troubled Debt Restructurings | ' | |||||||||||||||||||||||||||||||
The table below details successes and failures of TDRs that we have entered into during the twelve months ended September 30, 2013. There have been ten TDRs executed during the previous 12 months, of which two resulted in default by the borrower, as $30,000 was accepted as settlement and the remainder of $200,000 was charged off. Notes totaling $796,000 are paying as agreed in the restructure, and notes totaling $58,000 were converted to non-accrual. | ||||||||||||||||||||||||||||||||
For the 12 month period ended September 30, 2013 | ||||||||||||||||||||||||||||||||
Paid in full | Paying as restructured | Converted to non-accrual | Foreclosure/Default | |||||||||||||||||||||||||||||
Number of loans | Recorded Investment | Number of loans | Recorded Investment | Number of loans | Recorded Investment | Number of loans | Recorded Investment | |||||||||||||||||||||||||
(amounts in thousands, except number of loans) | ||||||||||||||||||||||||||||||||
Below market interest rate | — | $ | — | 1 | $ | 452 | — | $ | — | — | $ | — | ||||||||||||||||||||
Extended payment terms | — | — | 5 | 311 | 1 | 58 | 2 | — | ||||||||||||||||||||||||
Forgiveness of principal | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Other | — | — | 1 | 33 | — | — | — | — | ||||||||||||||||||||||||
Total | — | $ | — | 7 | $ | 796 | 1 | $ | 58 | 2 | $ | — | ||||||||||||||||||||
FAIR_VALUE_MEASUREMENT_Tables
FAIR VALUE MEASUREMENT (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
Assets Measured at Fair Value on a Recurring Basis | ' | |||||||||||||||||||
The following table presents information about assets measured at fair value on a recurring basis at September 30, 2013 and December 31, 2012. | ||||||||||||||||||||
Fair Value Measurements at | ||||||||||||||||||||
September 30, 2013, Using | ||||||||||||||||||||
Total Carrying | Assets | Quoted Prices | Significant | Significant | ||||||||||||||||
Amount in the | Measured | in Active | Other | Unobservable | ||||||||||||||||
Consolidated | at Fair Value | Markets | Observable | Inputs | ||||||||||||||||
Balance Sheet | for Identical | Inputs | ||||||||||||||||||
Assets | ||||||||||||||||||||
Description | 9/30/13 | 9/30/13 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||
(amounts in thousands) | ||||||||||||||||||||
Taxable municipal securities | $ | 3,823 | $ | 3,823 | $ | — | $ | 3,823 | $ | — | ||||||||||
Mortgage-backed securities | ||||||||||||||||||||
GNMA | 3,845 | 3,845 | — | 3,845 | — | |||||||||||||||
FNMA | — | — | — | — | — | |||||||||||||||
Trust preferred securities | 1,025 | 1,025 | — | — | 1,025 | |||||||||||||||
Equity securities | 128 | 128 | 50 | 78 | — | |||||||||||||||
Total available for sale | $ | 8,821 | $ | 8,821 | $ | 50 | $ | 7,746 | $ | 1,025 | ||||||||||
securities | ||||||||||||||||||||
Fair Value Measurements at | ||||||||||||||||||||
December 31, 2012, Using | ||||||||||||||||||||
Total Carrying | Assets | Quoted Prices | Significant | Significant | ||||||||||||||||
Amount in the Consolidated | Measured | in Active | Other | Unobservable | ||||||||||||||||
Balance Sheet | at Fair Value | Markets | Observable | Inputs | ||||||||||||||||
for Identical | Inputs | |||||||||||||||||||
Assets | ||||||||||||||||||||
Description | 12/31/12 | 12/31/12 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||
(amounts in thousands) | ||||||||||||||||||||
Taxable municipal securities | $ | 5,913 | $ | 5,913 | $ | — | $ | 5,913 | $ | — | ||||||||||
Mortgage-backed securities | ||||||||||||||||||||
GNMA | 60,743 | 60,743 | — | 60,743 | — | |||||||||||||||
FNMA | 5,880 | 5,880 | — | 5,880 | — | |||||||||||||||
Trust preferred securities | 1,006 | 1,006 | — | — | 1,006 | |||||||||||||||
Equity securities | 180 | 180 | 56 | 124 | — | |||||||||||||||
Total available for sale | $ | 73,722 | $ | 73,722 | $ | 56 | $ | 72,660 | $ | 1,006 | ||||||||||
securities | ||||||||||||||||||||
Level 3 Assets Measured at Fair Value on a Recurring Basis | ' | |||||||||||||||||||
The following table presents the reconciliation for the three and nine months ended September 30, 2013 and 2012 for all Level 3 assets that are measured at fair value on a recurring basis. | ||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
Securities available-for-sale | Securities available-for-sale | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||
Beginning Balance | $ | 1,019 | $ | 1,019 | $ | 1,006 | $ | 1,085 | ||||||||||||
Total realized and unrealized gains or (losses): | ||||||||||||||||||||
Included in earnings | — | — | — | — | ||||||||||||||||
Included in other comprehensive income (loss) | 6 | 12 | 19 | (54 | ) | |||||||||||||||
Purchases, issuances and settlements | — | — | — | — | ||||||||||||||||
Transfers in (out) of Level 3 | — | — | — | — | ||||||||||||||||
Ending Balance | $ | 1,025 | $ | 1,031 | $ | 1,025 | $ | 1,031 | ||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | |||||||||||||||||||
Impaired Loans and Foreclosed Assets Measured at Fair Value on a Nonrecurring Basis | ' | |||||||||||||||||||
The following table presents information about individually identified impaired loans and foreclosed assets measured on a non-recurring basis at fair value at September 30, 2013 and December 31, 2012. | ||||||||||||||||||||
Fair Value Measurements at | ||||||||||||||||||||
September 30, 2013, Using | ||||||||||||||||||||
Total Carrying | Assets | Quoted Prices | Significant | Significant | ||||||||||||||||
Amount in the | Measured | in Active | Other | Unobservable | ||||||||||||||||
Consolidated | at Fair Value | Markets | Observable | Inputs | ||||||||||||||||
Balance Sheet | for Identical | Inputs | ||||||||||||||||||
Assets | ||||||||||||||||||||
9/30/13 | 9/30/13 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||
Impaired loans | $ | 3,920 | $ | 3,920 | $ | — | $ | — | $ | 3,920 | ||||||||||
Foreclosed assets | $ | 10,443 | $ | 10,443 | $ | — | $ | — | $ | 10,443 | ||||||||||
Fair Value Measurements at | ||||||||||||||||||||
December 31, 2012, Using | ||||||||||||||||||||
Total Carrying | Assets | Quoted Prices | Significant | Significant Unobservable Inputs | ||||||||||||||||
Amount in the | Measured | in Active | Other | |||||||||||||||||
Consolidated | at Fair Value | Markets | Observable Inputs | |||||||||||||||||
Balance Sheet | for Identical | |||||||||||||||||||
Assets | ||||||||||||||||||||
12/31/12 | 12/31/12 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||
Impaired loans | $ | 18,371 | $ | 18,371 | $ | — | $ | — | $ | 18,371 | ||||||||||
Foreclosed assets | $ | 15,136 | $ | 15,136 | $ | — | $ | — | $ | 15,136 | ||||||||||
Significant Unobservable Inputs (Level 3) [Member] | ' | |||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | |||||||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques | ' | |||||||||||||||||||
The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a recurring and nonrecurring basis at September 30, 2013 (amounts in thousands, except percentages): | ||||||||||||||||||||
Total Carrying Amount | ||||||||||||||||||||
Nonrecurring measurements: | ||||||||||||||||||||
Impaired loans | $ | 3,920 | Collateral discounts | 15-70% | ||||||||||||||||
Foreclosed assets | $ | 10,443 | Discounted appraisals | 10-30% | ||||||||||||||||
Recurring measurements: | ||||||||||||||||||||
Trust preferred securities | $ | 1,025 | Probability of default | 10-20% | ||||||||||||||||
Loss given default | 100% |
FAIR_VALUE_OF_FINANCIAL_INSTRU1
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||
Information for Financial Assets and Liabilities | ' | |||||||||||||||||
The following table presents information for financial assets and liabilities as of September 30, 2013 and December 31, 2012. | ||||||||||||||||||
September 30, 2013 | ||||||||||||||||||
Carrying | Estimated | Level 1 | Level 2 | Level 3 | ||||||||||||||
Value | Fair Value | |||||||||||||||||
Financial assets: | (amounts in thousands) | |||||||||||||||||
Cash and cash equivalents | $ | 130,172 | $ | 130,172 | $ | 130,172 | $ | — | $ | — | ||||||||
CDs held for investment | $ | 35,035 | $ | 35,035 | $ | — | $ | 35,035 | $ | — | ||||||||
Securities available for sale | $ | 8,821 | $ | 8,821 | $ | 50 | $ | 7,746 | $ | 1,025 | ||||||||
Securities held to maturity | $ | 102,173 | $ | 101,296 | $ | — | $ | 101,296 | $ | — | ||||||||
Loans held for sale | $ | 214 | $ | 214 | $ | — | $ | — | $ | 214 | ||||||||
Loans, net | $ | 483,693 | $ | 484,777 | $ | — | $ | — | $ | 484,777 | ||||||||
FHLB stock | $ | 6,076 | $ | 6,076 | $ | — | $ | 6,076 | $ | — | ||||||||
Accrued interest receivable | $ | 1,570 | $ | 1,570 | $ | — | $ | 1,570 | $ | — | ||||||||
Financial liabilities: | ||||||||||||||||||
Deposits | $ | 646,380 | $ | 632,240 | $ | — | $ | 632,240 | $ | — | ||||||||
Subordinated debentures and promissory notes | $ | 24,372 | $ | 15,598 | $ | — | $ | — | $ | 15,598 | ||||||||
Borrowings | $ | 112,000 | $ | 122,231 | $ | — | $ | 122,231 | $ | — | ||||||||
Accrued interest payable | $ | 1,609 | $ | 1,609 | $ | — | $ | 1,609 | $ | — | ||||||||
December 31, 2012 | ||||||||||||||||||
Carrying | Estimated | Level 1 | Level 2 | Level 3 | ||||||||||||||
Value | Fair Value | |||||||||||||||||
Financial assets: | (amounts in thousands) | |||||||||||||||||
Cash and cash equivalents | $ | 183,150 | $ | 183,150 | $ | 183,150 | $ | — | $ | — | ||||||||
CDs held for investment | $ | 26,460 | $ | 26,460 | $ | — | $ | 26,460 | $ | — | ||||||||
Securities available for sale | $ | 73,722 | $ | 73,722 | $ | 56 | $ | 72,660 | $ | 1,006 | ||||||||
Securities held to maturity | $ | 20,329 | $ | 20,668 | $ | — | $ | 20,668 | $ | — | ||||||||
Loans held for sale | $ | 19,297 | $ | 19,297 | $ | — | $ | — | $ | 19,297 | ||||||||
Loans, net | $ | 481,380 | $ | 460,422 | $ | — | $ | — | $ | 460,422 | ||||||||
FHLB stock | $ | 6,415 | $ | 6,415 | $ | — | $ | 6,415 | $ | — | ||||||||
Premises and equipment, held for sale | $ | 1,901 | $ | 1,901 | $ | — | $ | — | $ | 1,901 | ||||||||
Accrued interest receivable | $ | 1,869 | $ | 1,869 | $ | — | $ | 1,869 | $ | — | ||||||||
Financial liabilities: | ||||||||||||||||||
Deposits | $ | 699,856 | $ | 694,184 | $ | — | $ | 694,184 | $ | — | ||||||||
Subordinated debentures and promissory notes | $ | 24,372 | $ | 15,598 | $ | — | $ | — | $ | 15,598 | ||||||||
Borrowings | $ | 112,000 | $ | 126,738 | $ | — | $ | 126,738 | $ | — | ||||||||
Accrued interest payable | $ | 1,736 | $ | 1,736 | $ | — | $ | 1,736 | $ | — | ||||||||
REGULATORY_RESTRICTIONS_Tables
REGULATORY RESTRICTIONS (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Regulatory Capital Requirements [Abstract] | ' | ||||||||||||||||||||
Schedule of Capital Amounts and Ratios | ' | ||||||||||||||||||||
The Bank’s actual capital amounts and ratios are also presented in the table below. | |||||||||||||||||||||
Actual | Minimum For Capital | Minimum To be Well | |||||||||||||||||||
Adequacy Purposes | Capitalized under | ||||||||||||||||||||
Prompt Corrective | |||||||||||||||||||||
Action Provisions | |||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||
As of September 30, 2013: | (amounts in thousands, except ratios) | ||||||||||||||||||||
Total Capital (to Risk Weighted Assets) | $ | 50,761 | 10.84 | % | $ | 37,446 | 8 | % | $ | 46,808 | 10 | % | |||||||||
Tier I Capital (to Risk Weighted Assets) | 44,821 | 9.58 | % | 18,723 | 4 | % | 28,085 | 6 | % | ||||||||||||
Tier I Capital (to Average Assets) | 44,821 | 5.58 | % | 32,143 | 4 | % | 40,179 | 5 | % | ||||||||||||
As of December 31, 2012: | |||||||||||||||||||||
Total Capital (to Risk Weighted Assets) | $ | 50,044 | 10.2 | % | $ | 39,246 | 8 | % | $ | 49,057 | 10 | % | |||||||||
Tier I Capital (to Risk Weighted Assets) | 43,797 | 8.93 | % | 19,623 | 4 | % | 29,434 | 6 | % | ||||||||||||
Tier I Capital (to Average Assets) | 43,797 | 5.01 | % | 34,949 | 4 | % | 43,687 | 5 | % | ||||||||||||
ORGANIZATION_AND_GOING_CONCERN2
ORGANIZATION AND GOING CONCERN CONSIDERATIONS (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 19, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Parent Company [Member] | Parent Company [Member] | Four Oaks Bank & Trust Company (the bBankb) [Member] | Four Oaks Bank & Trust Company (the bBankb) [Member] | Totals [Member] | Totals [Member] | Totals [Member] | Totals [Member] | Totals [Member] | ||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net income (loss) | $79 | ($2,161) | $52 | ($1,581) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Decrease in provision for loan losses | ' | ' | -1,768 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Provision for loan losses | 0 | 2,089 | 35 | 1,803 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Allowance for loan losses, net charge-offs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,742 | -3,586 | -4,288 | -6,023 | -11,973 | |
Total capital to risk weighted assets | ' | ' | ' | ' | ' | ' | ' | ' | 10.57% | 10.17% | 10.84% | 10.20% | ' | ' | ' | ' | ' | |
Tier 1 capital to risk weighted assets | ' | ' | ' | ' | ' | ' | ' | ' | 6.32% | 5.93% | 9.58% | 8.93% | ' | ' | ' | ' | ' | |
Tier 1 capital to average assets | ' | ' | ' | ' | ' | ' | ' | ' | 3.68% | 3.33% | 5.58% | 5.01% | ' | ' | ' | ' | ' | |
Common stock, shares authorized | 80,000,000 | ' | 80,000,000 | ' | 80,000,000 | 20,000,000 | 80,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Cash and Cash Equivalents [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Cash and cash equivalents | $130,172 | $222,019 | $130,172 | $222,019 | ' | ' | $183,150 | [1] | $164,966 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
[1] | Derived from audited consolidated financial statements. |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Loan Commitments [Line Items] | ' |
Loan commitments | $72,065 |
Legally Binding Commitment [Member] | ' |
Loan Commitments [Line Items] | ' |
Loan commitments | 58,369 |
Commitments to Extend Credit [Member] | ' |
Loan Commitments [Line Items] | ' |
Loan commitments | 37,891 |
Undisbursed Lines of Credit [Member] | ' |
Loan Commitments [Line Items] | ' |
Loan commitments | 18,326 |
Financial Stand-by Letters of Credit [Member] | ' |
Loan Commitments [Line Items] | ' |
Loan commitments | 343 |
Performance Stand-by Letters of Credit [Member] | ' |
Loan Commitments [Line Items] | ' |
Loan commitments | 1,809 |
Unused Credit Card Lines [Member] | ' |
Loan Commitments [Line Items] | ' |
Loan commitments | $13,696 |
NET_INCOME_PER_SHARE_Details
NET INCOME PER SHARE (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Weighted average number of common shares outstanding: | ' | ' | ' | ' |
Weighted average number of common shares used in computing basic net income (loss) per common share | 7,944,600 | 7,769,887 | 7,897,348 | 7,729,454 |
Effect of dilutive stock options | 0 | 0 | 0 | 0 |
Weighted average number of common shares and dilutive potential common shares used in computing diluted net income (loss) per common share | 7,944,600 | 7,769,887 | 7,897,348 | 7,729,454 |
Stock Options [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive stock options outstanding | ' | ' | 303,980 | 277,289 |
INVESTMENT_SECURITIES_Securiti
INVESTMENT SECURITIES (Securities Available for Sale) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Amortized cost | $9,104 | $72,732 | ' |
Gross unrealized gains | 30 | 1,179 | ' |
Gross unrealized losses | 313 | 189 | ' |
Available for sale securities, fair value | 8,821 | 73,722 | ' |
Temporarily Impaired Securities [Member] | ' | ' | ' |
Securities available for sale in continuous unrealized loss position: | ' | ' | ' |
Less than 12 Months, Fair value | 7,668 | 7,130 | ' |
Less than 12 Months, Unrealized losses | 163 | 19 | ' |
12 Months or More, Fair value | 0 | 2 | ' |
12 Months or More, Unrealized losses | 0 | 1 | ' |
Total, Fair value | 7,668 | 7,132 | ' |
Total, Unrealized losses | 163 | 20 | ' |
Other than Temporarily Impaired Securities [Member] | ' | ' | ' |
Securities available for sale in continuous unrealized loss position: | ' | ' | ' |
Less than 12 Months, Fair value | 0 | 0 | ' |
Less than 12 Months, Unrealized losses | 0 | 0 | ' |
12 Months or More, Fair value | 1,025 | 1,006 | ' |
12 Months or More, Unrealized losses | 150 | 169 | ' |
Total, Fair value | 1,025 | 1,006 | ' |
Total, Unrealized losses | 150 | 169 | ' |
Taxable Municipal Securities [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Amortized cost | 3,971 | 5,459 | ' |
Gross unrealized gains | 0 | 454 | ' |
Gross unrealized losses | 148 | 0 | ' |
Available for sale securities, fair value | 3,823 | 5,913 | ' |
Taxable Municipal Securities [Member] | Temporarily Impaired Securities [Member] | ' | ' | ' |
Securities available for sale in continuous unrealized loss position: | ' | ' | ' |
Less than 12 Months, Fair value | 3,823 | ' | ' |
Less than 12 Months, Unrealized losses | 148 | ' | ' |
12 Months or More, Fair value | ' | ' | ' |
12 Months or More, Unrealized losses | ' | ' | ' |
Total, Fair value | ' | ' | 3,823 |
Total, Unrealized losses | ' | ' | 148 |
Mortgage-backed Securities GNMA [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Amortized cost | 3,860 | 60,056 | ' |
Gross unrealized gains | 0 | 704 | ' |
Gross unrealized losses | 15 | 17 | ' |
Available for sale securities, fair value | 3,845 | 60,743 | ' |
Mortgage-backed Securities GNMA [Member] | Temporarily Impaired Securities [Member] | ' | ' | ' |
Securities available for sale in continuous unrealized loss position: | ' | ' | ' |
Less than 12 Months, Fair value | 3,845 | 5,132 | ' |
Less than 12 Months, Unrealized losses | 15 | 17 | ' |
12 Months or More, Fair value | 0 | 0 | ' |
12 Months or More, Unrealized losses | 0 | 0 | ' |
Total, Fair value | 3,845 | 5,132 | ' |
Total, Unrealized losses | 15 | 17 | ' |
Mortgage-backed securities FNMA [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Amortized cost | ' | 5,872 | ' |
Gross unrealized gains | ' | 10 | ' |
Gross unrealized losses | ' | 2 | ' |
Available for sale securities, fair value | ' | 5,880 | ' |
Mortgage-backed securities FNMA [Member] | Temporarily Impaired Securities [Member] | ' | ' | ' |
Securities available for sale in continuous unrealized loss position: | ' | ' | ' |
Less than 12 Months, Fair value | ' | 1,998 | ' |
Less than 12 Months, Unrealized losses | ' | 2 | ' |
12 Months or More, Fair value | ' | 0 | ' |
12 Months or More, Unrealized losses | ' | 0 | ' |
Total, Fair value | ' | 1,998 | ' |
Total, Unrealized losses | ' | 2 | ' |
Trust Preferred Securities [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Amortized cost | 1,175 | 1,175 | ' |
Gross unrealized gains | 0 | 0 | ' |
Gross unrealized losses | 150 | 169 | ' |
Available for sale securities, fair value | 1,025 | 1,006 | ' |
Trust Preferred Securities [Member] | Other than Temporarily Impaired Securities [Member] | ' | ' | ' |
Securities available for sale in continuous unrealized loss position: | ' | ' | ' |
Less than 12 Months, Fair value | 0 | 0 | ' |
Less than 12 Months, Unrealized losses | 0 | 0 | ' |
12 Months or More, Fair value | 1,025 | 1,006 | ' |
12 Months or More, Unrealized losses | 150 | 169 | ' |
Total, Fair value | 1,025 | 1,006 | ' |
Total, Unrealized losses | 150 | 169 | ' |
Equity Securities [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Amortized cost | 98 | 170 | ' |
Gross unrealized gains | 30 | 11 | ' |
Gross unrealized losses | 0 | 1 | ' |
Available for sale securities, fair value | 128 | 180 | ' |
Equity Securities [Member] | Temporarily Impaired Securities [Member] | ' | ' | ' |
Securities available for sale in continuous unrealized loss position: | ' | ' | ' |
Less than 12 Months, Fair value | ' | 0 | ' |
Less than 12 Months, Unrealized losses | ' | 0 | ' |
12 Months or More, Fair value | ' | 2 | ' |
12 Months or More, Unrealized losses | ' | 1 | ' |
Total, Fair value | ' | 2 | ' |
Total, Unrealized losses | ' | $1 | ' |
INVESTMENT_SECURITIES_Securiti1
INVESTMENT SECURITIES (Securities Held to Maturity) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||
Schedule of Held-to-maturity Securities [Line Items] | ' | ' | |
Amortized cost | $102,173 | $20,329 | [1] |
Gross unrealized gains | 631 | 339 | |
Gross unrealized losses | 1,508 | 0 | |
Held to maturity securities, fair value | 101,296 | 20,668 | |
Temporarily Impaired Securities [Member] | ' | ' | |
Securities held to maturity in continuous unrealized loss position: | ' | ' | |
Less than 12 Months, Fair value | 55,208 | ' | |
Less than 12 Months, Unrealized losses | 1,508 | ' | |
12 Months or Morer, Fair value | 0 | ' | |
12 Months or More, Unrealized losses | 0 | ' | |
Total, Fair value | 55,208 | ' | |
Total, Unrealized losses | 1,508 | ' | |
Taxable Municipal Securities [Member] | ' | ' | |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' | |
Amortized cost | 3,648 | ' | |
Gross unrealized gains | 142 | ' | |
Gross unrealized losses | 0 | ' | |
Held to maturity securities, fair value | 3,790 | ' | |
Mortgage-backed Securities GNMA [Member] | ' | ' | |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' | |
Amortized cost | 93,787 | 20,329 | |
Gross unrealized gains | 474 | 339 | |
Gross unrealized losses | 1,508 | 0 | |
Held to maturity securities, fair value | 92,753 | 20,668 | |
Mortgage-backed Securities GNMA [Member] | Temporarily Impaired Securities [Member] | ' | ' | |
Securities held to maturity in continuous unrealized loss position: | ' | ' | |
Less than 12 Months, Fair value | 55,208 | ' | |
Less than 12 Months, Unrealized losses | 1,508 | ' | |
12 Months or Morer, Fair value | 0 | ' | |
12 Months or More, Unrealized losses | 0 | ' | |
Total, Fair value | 55,208 | ' | |
Total, Unrealized losses | 1,508 | ' | |
Mortgage-backed securities FNMA [Member] | ' | ' | |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' | |
Amortized cost | 4,738 | ' | |
Gross unrealized gains | 15 | ' | |
Gross unrealized losses | 0 | ' | |
Held to maturity securities, fair value | 4,753 | ' | |
Mortgage-backed securities FNMA [Member] | Temporarily Impaired Securities [Member] | ' | ' | |
Securities held to maturity in continuous unrealized loss position: | ' | ' | |
Less than 12 Months, Fair value | 0 | ' | |
Less than 12 Months, Unrealized losses | 0 | ' | |
12 Months or Morer, Fair value | 0 | ' | |
12 Months or More, Unrealized losses | 0 | ' | |
Total, Fair value | 0 | ' | |
Total, Unrealized losses | $0 | ' | |
[1] | Derived from audited consolidated financial statements. |
INVESTMENT_SECURITIES_Securiti2
INVESTMENT SECURITIES (Securities Containing Unrealized Losses) (Details) (USD $) | 9 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
Securities Available for Sale [Member] | Mortgage Backed Securities [Member] | Taxable Municipal Securities [Member] | Trust Preferred Securities [Member] | Trust Preferred Security 1 [Member] | |||
securities | securities | securities | securities | Securities Available for Sale [Member] | |||
Gain (Loss) on Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Transferred from AFS to HTM securities | $76,487,000 | $0 | ' | ' | ' | ' | ' |
Number of securities containing unrealized losses | ' | ' | ' | 26 | 4 | 2 | ' |
Number of securities other than temporarily impaired | ' | ' | 1 | ' | ' | ' | ' |
Credit loss on other than temporarily impaired security | ' | ' | ' | ' | ' | ' | 75,000 |
Available for Sale, transferred to held to maturity, Unrealized Gain | $400,000 | ' | ' | ' | ' | ' | ' |
INVESTMENT_SECURITIES_Investme
INVESTMENT SECURITIES (Investment Securities by Contractual Maturities) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Available-for-sale Securities, Debt Maturities: | ' | ' |
Available for sale securities, amortized cost | $9,104 | $72,732 |
Available for sale securities, fair value | 8,821 | 73,722 |
Held-to-maturity Securities, Debt Maturities: | ' | ' |
Held to maturity securities, amortized cost | 102,173 | ' |
Held to maturity securities, fair value | 101,296 | ' |
Taxable Municipal Securities [Member] | ' | ' |
Available-for-sale Securities, Debt Maturities: | ' | ' |
Due after one year through five years, Amortized Cost | 0 | ' |
Due after five years through ten years, Amortized Cost | 0 | ' |
Due after ten years, Amortized Cost | 3,971 | ' |
Available for sale securities, amortized cost | 3,971 | 5,459 |
Due after one year through five years, Fair Value | 0 | ' |
Due after five years through ten years, Fair Value | 0 | ' |
Due after ten years, Fair Value | 3,823 | ' |
Available for sale securities, fair value | 3,823 | 5,913 |
Held-to-maturity Securities, Debt Maturities: | ' | ' |
Due within one year, Amortized Cost | 0 | ' |
Due after one year through five years. Amortized Cost | 528 | ' |
Due after five years through ten years, Amortized Cost | 3,120 | ' |
Due after ten years, Amortized Cost | 0 | ' |
Held to maturity securities, amortized cost | 3,648 | ' |
Due within one year, Fair Value | 0 | ' |
Due after one year through five years, Fair Value | 536 | ' |
Due after five years through ten years, Fair Value | 3,254 | ' |
Due after ten years, Fair Value | 0 | ' |
Held to maturity securities, fair value | 3,790 | ' |
Mortgage-backed Securities GNMA and FNMA [Member] | ' | ' |
Available-for-sale Securities, Debt Maturities: | ' | ' |
Due within one year, Amortized Cost | 0 | ' |
Due after one year through five years, Amortized Cost | 0 | ' |
Due after five years through ten years, Amortized Cost | 0 | ' |
Due after ten years, Amortized Cost | 3,860 | ' |
Available for sale securities, amortized cost | 3,860 | ' |
Due within one year, Fair Value | 0 | ' |
Due after one year through five years, Fair Value | 0 | ' |
Due after five years through ten years, Fair Value | 0 | ' |
Due after ten years, Fair Value | 3,845 | ' |
Available for sale securities, fair value | 3,845 | ' |
Held-to-maturity Securities, Debt Maturities: | ' | ' |
Due within one year, Amortized Cost | 1,248 | ' |
Due after one year through five years. Amortized Cost | 64,388 | ' |
Due after five years through ten years, Amortized Cost | 31,684 | ' |
Due after ten years, Amortized Cost | 1,205 | ' |
Held to maturity securities, amortized cost | 98,525 | ' |
Due within one year, Fair Value | 1,264 | ' |
Due after one year through five years, Fair Value | 64,421 | ' |
Due after five years through ten years, Fair Value | 30,618 | ' |
Due after ten years, Fair Value | 1,203 | ' |
Held to maturity securities, fair value | 97,506 | ' |
Trusted Preferred Securities and Equity Securities [Member] | ' | ' |
Available-for-sale Securities, Debt Maturities: | ' | ' |
Available for sale securities, amortized cost | 1,273 | ' |
Available for sale securities, fair value | 1,153 | ' |
Trust Preferred Securities [Member] | ' | ' |
Available-for-sale Securities, Debt Maturities: | ' | ' |
Available for sale securities, amortized cost | 1,175 | 1,175 |
Available for sale securities, fair value | 1,025 | 1,006 |
Equity Securities [Member] | ' | ' |
Available-for-sale Securities, Debt Maturities: | ' | ' |
Available for sale securities, amortized cost | 98 | 170 |
Available for sale securities, fair value | $128 | $180 |
INVESTMENT_SECURITIES_Securiti3
INVESTMENT SECURITIES (Securities Pledged and Sold) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Investments, Debt and Equity Securities [Abstract] | ' | ' | ' | ' | ' |
Securities pledged, carrying amount | $90,700,000 | ' | $90,700,000 | ' | $93,200,000 |
Proceeds from sales and calls of investment securities available for sale | ' | ' | 20,874,000 | 37,937,000 | ' |
Gross realized gains | 92,000 | 349,000 | 462,000 | 1,000,000 | ' |
Gross realized losses | 0 | 0 | 0 | 0 | ' |
Proceeds from sale and calls of securities available for sale and equity securities | $8,000,000 | $10,700,000 | ' | ' | ' |
LOANS_Loans_Outstanding_Detail
LOANS (Loans Outstanding) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||
Loans and Leases Receivable Disclosure [Abstract] | ' | ' | |
Commercial and industrial loans | $27,286 | $29,563 | |
Commercial construction and land development | 70,227 | 90,899 | |
Commercial real estate | 197,858 | 181,194 | |
Residential construction | 27,144 | 20,445 | |
Residential mortgage | 163,890 | 165,009 | |
Consumer | 8,928 | 9,664 | |
Other | 1,085 | 1,278 | |
Total loans | 496,418 | 498,052 | |
Net deferred loan fees | -429 | -123 | |
Net loans before allowance | 495,989 | 497,929 | [1] |
Allowance for loan losses | -12,296 | -16,549 | [1] |
Net loans | $483,693 | $481,380 | [1] |
[1] | Derived from audited consolidated financial statements. |
LOANS_Nonperforming_Assets_Det
LOANS (Nonperforming Assets) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Loans and Leases Receivable Disclosure [Abstract] | ' | ' |
Loans past due ninety days or more and still accruing | $25 | $32 |
Nonaccrual loans | 33,873 | 35,970 |
Foreclosed assets | 10,443 | 15,136 |
Total | $44,341 | $51,138 |
LOANS_Allowance_for_Loan_Losse
LOANS (Allowance for Loan Losses by Loan Class) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Allowance for loan losses: | ' | ' | ' | ' | ' | |
Balance, beginning of period | ' | ' | $16,549 | [1] | ' | ' |
Loans charged-off | ' | ' | -4,300 | ' | ' | |
Balance, end of period | 12,296 | ' | 12,296 | ' | ' | |
Financing Receivables: | ' | ' | ' | ' | ' | |
Total loans | 496,418 | ' | 496,418 | ' | 498,052 | |
Commercial and Industrial [Member] | ' | ' | ' | ' | ' | |
Allowance for loan losses: | ' | ' | ' | ' | ' | |
Balance, beginning of period | 969 | 1,786 | 1,185 | 2,730 | 2,730 | |
Provision for loan losses | -263 | -493 | -670 | -1,109 | -1,464 | |
Loans charged-off | -207 | -241 | -267 | -681 | -703 | |
Recoveries | 175 | 142 | 426 | 254 | 622 | |
Net (charge-offs) recoveries | -32 | -99 | 159 | -427 | -81 | |
Balance, end of period | 674 | 1,194 | 674 | 1,194 | 1,185 | |
Ending Balance, individually evaluated for impairment | 212 | 258 | 212 | 258 | 636 | |
Ending Balance, collectively evaluated for impairment | 462 | 936 | 462 | 936 | 549 | |
Financing Receivables: | ' | ' | ' | ' | ' | |
Total loans | 27,286 | 31,201 | 27,286 | 31,201 | 29,563 | |
Less: ending Balance: individually evaluated for impairment | 936 | 1,233 | 936 | 1,233 | 1,437 | |
Ending Balance, collectively evaluated for impairment | 26,350 | 29,968 | 26,350 | 29,968 | 28,126 | |
Commercial Construction and Land Development [Member] | ' | ' | ' | ' | ' | |
Allowance for loan losses: | ' | ' | ' | ' | ' | |
Balance, beginning of period | 6,574 | 8,010 | 7,251 | 8,799 | 8,799 | |
Provision for loan losses | 125 | 1,783 | 1,128 | 2,349 | 5,205 | |
Loans charged-off | -1,485 | -2,580 | -3,343 | -4,735 | -7,929 | |
Recoveries | 318 | 145 | 496 | 945 | 1,176 | |
Net (charge-offs) recoveries | -1,167 | -2,435 | -2,847 | -3,790 | -6,753 | |
Balance, end of period | 5,532 | 7,358 | 5,532 | 7,358 | 7,251 | |
Ending Balance, individually evaluated for impairment | 667 | 2,815 | 667 | 2,815 | 1,693 | |
Ending Balance, collectively evaluated for impairment | 4,865 | 4,543 | 4,865 | 4,543 | 5,558 | |
Financing Receivables: | ' | ' | ' | ' | ' | |
Total loans | 70,227 | 102,776 | 70,227 | 102,776 | 90,899 | |
Less: ending Balance: individually evaluated for impairment | 14,328 | 32,382 | 14,328 | 32,382 | 20,885 | |
Ending Balance, collectively evaluated for impairment | 55,899 | 70,394 | 55,899 | 70,394 | 70,014 | |
Commercial Real Estate [Member] | ' | ' | ' | ' | ' | |
Allowance for loan losses: | ' | ' | ' | ' | ' | |
Balance, beginning of period | 2,763 | 3,290 | 2,961 | 3,800 | 3,800 | |
Provision for loan losses | 817 | 733 | 836 | 531 | 2,486 | |
Loans charged-off | -503 | -791 | -1,728 | -1,277 | -3,691 | |
Recoveries | 11 | 123 | 1,019 | 301 | 366 | |
Net (charge-offs) recoveries | -492 | -668 | -709 | -976 | -3,325 | |
Balance, end of period | 3,088 | 3,355 | 3,088 | 3,355 | 2,961 | |
Ending Balance, individually evaluated for impairment | 688 | 1,762 | 688 | 1,762 | 640 | |
Ending Balance, collectively evaluated for impairment | 2,400 | 1,593 | 2,400 | 1,593 | 2,321 | |
Financing Receivables: | ' | ' | ' | ' | ' | |
Total loans | 197,858 | 186,850 | 197,858 | 186,850 | 181,194 | |
Less: ending Balance: individually evaluated for impairment | 13,519 | 20,052 | 13,519 | 20,052 | 17,742 | |
Ending Balance, collectively evaluated for impairment | 184,339 | 166,798 | 184,339 | 166,798 | 163,452 | |
Residential Construction [Member] | ' | ' | ' | ' | ' | |
Allowance for loan losses: | ' | ' | ' | ' | ' | |
Balance, beginning of period | 449 | 401 | 423 | 740 | 740 | |
Provision for loan losses | 79 | -108 | 243 | -412 | -214 | |
Loans charged-off | 0 | -1 | -138 | -36 | -103 | |
Recoveries | 0 | 0 | 0 | 0 | 0 | |
Net (charge-offs) recoveries | 0 | -1 | -138 | -36 | -103 | |
Balance, end of period | 528 | 292 | 528 | 292 | 423 | |
Ending Balance, individually evaluated for impairment | 0 | 68 | 0 | 68 | 86 | |
Ending Balance, collectively evaluated for impairment | 528 | 224 | 528 | 224 | 337 | |
Financing Receivables: | ' | ' | ' | ' | ' | |
Total loans | 27,144 | 22,922 | 27,144 | 22,922 | 20,445 | |
Less: ending Balance: individually evaluated for impairment | 695 | 1,404 | 695 | 1,404 | 1,173 | |
Ending Balance, collectively evaluated for impairment | 26,449 | 21,518 | 26,449 | 21,518 | 19,272 | |
Residential Mortgage [Member] | ' | ' | ' | ' | ' | |
Allowance for loan losses: | ' | ' | ' | ' | ' | |
Balance, beginning of period | 3,013 | 4,438 | 4,471 | 4,630 | 4,630 | |
Provision for loan losses | -718 | 103 | -1,553 | 83 | 1,184 | |
Loans charged-off | -259 | -508 | -1,164 | -786 | -1,801 | |
Recoveries | 211 | 170 | 493 | 276 | 458 | |
Net (charge-offs) recoveries | -48 | -338 | -671 | -510 | -1,343 | |
Balance, end of period | 2,247 | 4,203 | 2,247 | 4,203 | 4,471 | |
Ending Balance, individually evaluated for impairment | 234 | 2,342 | 234 | 2,342 | 2,334 | |
Ending Balance, collectively evaluated for impairment | 2,013 | 1,861 | 2,013 | 1,861 | 2,137 | |
Financing Receivables: | ' | ' | ' | ' | ' | |
Total loans | 163,890 | 182,230 | 163,890 | 182,230 | 165,009 | |
Less: ending Balance: individually evaluated for impairment | 14,124 | 20,960 | 14,124 | 20,960 | 17,573 | |
Ending Balance, collectively evaluated for impairment | 149,766 | 161,270 | 149,766 | 161,270 | 147,436 | |
Consumer [Member] | ' | ' | ' | ' | ' | |
Allowance for loan losses: | ' | ' | ' | ' | ' | |
Balance, beginning of period | 178 | 482 | 188 | 413 | 413 | |
Provision for loan losses | -11 | 16 | 58 | 324 | 143 | |
Loans charged-off | -52 | -75 | -216 | -405 | -516 | |
Recoveries | 49 | 30 | 134 | 121 | 148 | |
Net (charge-offs) recoveries | -3 | -45 | -82 | -284 | -368 | |
Balance, end of period | 164 | 453 | 164 | 453 | 188 | |
Ending Balance, individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | |
Ending Balance, collectively evaluated for impairment | 164 | 453 | 164 | 453 | 188 | |
Financing Receivables: | ' | ' | ' | ' | ' | |
Total loans | 8,928 | 10,007 | 8,928 | 10,007 | 9,664 | |
Less: ending Balance: individually evaluated for impairment | 19 | 45 | 19 | 45 | 50 | |
Ending Balance, collectively evaluated for impairment | 8,909 | 9,962 | 8,909 | 9,962 | 9,614 | |
Other [Member] | ' | ' | ' | ' | ' | |
Allowance for loan losses: | ' | ' | ' | ' | ' | |
Balance, beginning of period | 92 | 11 | 70 | 29 | 29 | |
Provision for loan losses | -29 | 55 | -7 | 37 | 41 | |
Loans charged-off | 0 | 0 | 0 | 0 | 0 | |
Recoveries | 0 | ' | 0 | 0 | 0 | |
Net (charge-offs) recoveries | 0 | 0 | 0 | 0 | 0 | |
Balance, end of period | 63 | 66 | 63 | 66 | 70 | |
Ending Balance, individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | |
Ending Balance, collectively evaluated for impairment | 63 | 66 | 63 | 66 | 70 | |
Financing Receivables: | ' | ' | ' | ' | ' | |
Total loans | 1,085 | 4,484 | 1,085 | 4,484 | 1,278 | |
Less: ending Balance: individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | |
Ending Balance, collectively evaluated for impairment | 1,085 | 4,484 | 1,085 | 4,484 | 1,278 | |
Totals [Member] | ' | ' | ' | ' | ' | |
Allowance for loan losses: | ' | ' | ' | ' | ' | |
Balance, beginning of period | 14,038 | 18,418 | 16,549 | 21,141 | 21,141 | |
Provision for loan losses | 0 | 2,089 | 35 | 1,803 | 7,381 | |
Loans charged-off | -2,506 | -4,196 | -6,856 | -7,920 | -14,743 | |
Recoveries | 764 | 610 | 2,568 | 1,897 | 2,770 | |
Net (charge-offs) recoveries | -1,742 | -3,586 | -4,288 | -6,023 | -11,973 | |
Balance, end of period | 12,296 | 16,921 | 12,296 | 16,921 | 16,549 | |
Ending Balance, individually evaluated for impairment | 1,801 | 7,245 | 1,801 | 7,245 | 5,389 | |
Ending Balance, collectively evaluated for impairment | 10,495 | 9,676 | 10,495 | 9,676 | 11,160 | |
Financing Receivables: | ' | ' | ' | ' | ' | |
Total loans | 496,418 | 540,470 | 496,418 | 540,470 | 498,052 | |
Less: ending Balance: individually evaluated for impairment | 43,621 | 76,076 | 43,621 | 76,076 | 58,860 | |
Ending Balance, collectively evaluated for impairment | $452,797 | $464,394 | $452,797 | $464,394 | $439,192 | |
[1] | Derived from audited consolidated financial statements. |
LOANS_Credit_Quality_Details
LOANS (Credit Quality) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial and industrial loans | $27,286 | $29,563 |
Commercial construction and land development | 70,227 | 90,899 |
Commercial real estate | 197,858 | 181,194 |
Residential construction | 27,144 | 20,445 |
Residential mortgage | 163,890 | 165,009 |
Consumer | 8,928 | 9,664 |
Other | 1,085 | 1,278 |
Total loans | 496,418 | 498,052 |
Credit Card Portfolio Exposure [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Consumer - credit card | 2,176 | 2,265 |
Business - credit card | 1,182 | 1,186 |
Internally Assigned Grade [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial and industrial loans | 26,104 | 28,377 |
Commercial construction and land development | 70,227 | 90,899 |
Commercial real estate | 197,858 | 181,194 |
Residential construction | 27,144 | 20,445 |
Residential mortgage | 163,890 | 165,009 |
Consumer | 6,752 | 7,399 |
Other | 1,085 | 1,278 |
Total loans | 493,060 | 494,601 |
1 - Lowest Risk [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial and industrial loans | 2,100 | 2,446 |
Commercial construction and land development | 0 | 0 |
Commercial real estate | 0 | 0 |
Residential construction | 0 | 0 |
Residential mortgage | 0 | 51 |
Consumer | 1,331 | 1,372 |
Other | 11 | 13 |
Total loans | 3,442 | 3,882 |
2 - Satisfactory Quality [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial and industrial loans | 580 | 441 |
Commercial construction and land development | 344 | 595 |
Commercial real estate | 2,299 | 2,429 |
Residential construction | 4 | 109 |
Residential mortgage | 12,374 | 10,595 |
Consumer | 254 | 288 |
Other | 16 | 0 |
Total loans | 15,871 | 14,457 |
3 - Satisfactory - Merits Attention [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial and industrial loans | 9,745 | 10,222 |
Commercial construction and land development | 15,257 | 22,278 |
Commercial real estate | 70,418 | 51,384 |
Residential construction | 3,016 | 1,337 |
Residential mortgage | 57,023 | 58,140 |
Consumer | 3,959 | 4,526 |
Other | 816 | 1,091 |
Total loans | 160,234 | 148,978 |
4 - Low Satisfactory [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial and industrial loans | 12,448 | 13,558 |
Commercial construction and land development | 33,874 | 35,502 |
Commercial real estate | 109,955 | 104,652 |
Residential construction | 22,781 | 17,008 |
Residential mortgage | 69,362 | 68,148 |
Consumer | 1,078 | 1,019 |
Other | 113 | 125 |
Total loans | 249,611 | 240,012 |
5 - Special Mention [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial and industrial loans | 196 | 323 |
Commercial construction and land development | 3,600 | 9,064 |
Commercial real estate | 2,558 | 6,228 |
Residential construction | 162 | 356 |
Residential mortgage | 7,519 | 9,720 |
Consumer | 69 | 91 |
Other | 129 | 49 |
Total loans | 14,233 | 25,831 |
6 - Substandard or Worse [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial and industrial loans | 1,035 | 1,387 |
Commercial construction and land development | 17,152 | 23,460 |
Commercial real estate | 12,628 | 16,501 |
Residential construction | 1,181 | 1,635 |
Residential mortgage | 17,612 | 18,355 |
Consumer | 61 | 103 |
Other | 0 | 0 |
Total loans | 49,669 | 61,441 |
Performing [Member] | Credit Card Portfolio Exposure [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Consumer - credit card | 2,156 | 2,233 |
Business - credit card | 1,177 | 1,186 |
Non Performing [Member] | Credit Card Portfolio Exposure [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Consumer - credit card | 20 | 32 |
Business - credit card | $5 | $0 |
LOANS_Age_Analysis_of_Past_Due
LOANS (Age Analysis of Past Due Loans) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-89 Days past due | $2,138 | $2,626 |
Nonaccruals and greater than 90 days past due | 33,898 | 36,002 |
Total past due | 36,036 | 38,628 |
Current | 460,382 | 459,424 |
Total loans | 496,418 | 498,052 |
Recorded investment greater than 90 days and accruing | 25 | 32 |
Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-89 Days past due | 28 | 119 |
Nonaccruals and greater than 90 days past due | 898 | 664 |
Total past due | 926 | 783 |
Current | 25,178 | 27,594 |
Total loans | 26,104 | 28,377 |
Recorded investment greater than 90 days and accruing | 0 | 0 |
Commercial Construction and Land Development [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-89 Days past due | 757 | 819 |
Nonaccruals and greater than 90 days past due | 13,747 | 15,941 |
Total past due | 14,504 | 16,760 |
Current | 55,723 | 74,139 |
Total loans | 70,227 | 90,899 |
Recorded investment greater than 90 days and accruing | 0 | 0 |
Commercial Real Estate [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-89 Days past due | 471 | 499 |
Nonaccruals and greater than 90 days past due | 7,529 | 9,091 |
Total past due | 8,000 | 9,590 |
Current | 189,858 | 171,604 |
Total loans | 197,858 | 181,194 |
Recorded investment greater than 90 days and accruing | 0 | 0 |
Residential Construction [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-89 Days past due | 0 | 0 |
Nonaccruals and greater than 90 days past due | 695 | 833 |
Total past due | 695 | 833 |
Current | 26,449 | 19,612 |
Total loans | 27,144 | 20,445 |
Recorded investment greater than 90 days and accruing | 0 | 0 |
Residential Mortgage [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-89 Days past due | 779 | 1,076 |
Nonaccruals and greater than 90 days past due | 10,985 | 9,408 |
Total past due | 11,764 | 10,484 |
Current | 152,126 | 154,525 |
Total loans | 163,890 | 165,009 |
Recorded investment greater than 90 days and accruing | 0 | 0 |
Consumer [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-89 Days past due | 20 | 34 |
Nonaccruals and greater than 90 days past due | 19 | 33 |
Total past due | 39 | 67 |
Current | 6,713 | 7,332 |
Total loans | 6,752 | 7,399 |
Recorded investment greater than 90 days and accruing | 0 | 0 |
Consumer Credit Cards [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-89 Days past due | 74 | 67 |
Nonaccruals and greater than 90 days past due | 20 | 32 |
Total past due | 94 | 99 |
Current | 2,082 | 2,166 |
Total loans | 2,176 | 2,265 |
Recorded investment greater than 90 days and accruing | 20 | 32 |
Business Credit Cards [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-89 Days past due | 9 | 12 |
Nonaccruals and greater than 90 days past due | 5 | 0 |
Total past due | 14 | 12 |
Current | 1,168 | 1,174 |
Total loans | 1,182 | 1,186 |
Recorded investment greater than 90 days and accruing | 5 | 0 |
Other Loans [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-89 Days past due | 0 | 0 |
Nonaccruals and greater than 90 days past due | 0 | 0 |
Total past due | 0 | 0 |
Current | 1,085 | 1,278 |
Total loans | 1,085 | 1,278 |
Recorded investment greater than 90 days and accruing | $0 | $0 |
LOANS_Impaired_Loans_Details
LOANS (Impaired Loans) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Decrease in impaired loans | ' | ' | -25.90% | ' | ' |
Loans charged-off | ' | ' | ($4,300,000) | ' | ' |
Principal reductions | ' | ' | -5,900,000 | ' | ' |
Loans upgraded due to improvement in repayment capacity of borrowers or guarantors | ' | ' | -3,700,000 | ' | ' |
Transfers to OREO | ' | ' | -2,000,000 | ' | ' |
Impaired Financing Receivable, Recorded Investment, Change in Amount, Sold | ' | ' | -3,600,000 | ' | ' |
Impairment of loans | ' | ' | 4,200,000 | ' | ' |
Impaired Loans, Recorded Investment | ' | ' | ' | ' | ' |
With no related allowance recorded | 37,900,000 | ' | 37,900,000 | ' | 35,100,000 |
With an allowance recorded | 5,721,000 | ' | 5,721,000 | ' | 23,760,000 |
Total | 43,621,000 | ' | 43,621,000 | ' | 58,860,000 |
Impaired Loans, Unpaid Principal Balance | ' | ' | ' | ' | ' |
With no related allowance recorded | 49,511,000 | ' | 49,511,000 | ' | 42,762,000 |
With an allowance recorded | 7,007,000 | ' | 7,007,000 | ' | 30,090,000 |
Total | 56,518,000 | ' | 56,518,000 | ' | 72,852,000 |
Impaired Loans, Related Allowance | 1,801,000 | ' | 1,801,000 | ' | 5,389,000 |
Impaired Loans, Average Recorded Investment | ' | ' | ' | ' | ' |
With no related allowance recorded | 39,830,000 | ' | 42,390,000 | ' | 35,945,000 |
With an allowance recorded | 5,912,000 | ' | 6,104,000 | ' | 24,556,000 |
Total | 45,742,000 | ' | 48,494,000 | ' | 60,501,000 |
Impaired Loans, Interest Income Recognized | ' | ' | ' | ' | ' |
With no related allowance recorded | 31,000 | ' | 201,000 | ' | 219,000 |
With an allowance recorded | 3,000 | ' | 17,000 | ' | 137,000 |
Total | 34,000 | ' | 218,000 | ' | 356,000 |
Commercial [Member] | ' | ' | ' | ' | ' |
Impaired Loans, Recorded Investment | ' | ' | ' | ' | ' |
Total | 28,783,000 | ' | 28,783,000 | ' | 40,064,000 |
Impaired Loans, Unpaid Principal Balance | ' | ' | ' | ' | ' |
Total | 39,435,000 | ' | 39,435,000 | ' | 51,679,000 |
Impaired Loans, Related Allowance | 1,567,000 | ' | 1,567,000 | ' | 2,969,000 |
Impaired Loans, Average Recorded Investment | ' | ' | ' | ' | ' |
Total | 30,470,000 | ' | 32,578,000 | ' | 41,974,000 |
Impaired Loans, Interest Income Recognized | ' | ' | ' | ' | ' |
Total | 30,000 | ' | 154,000 | ' | 180,000 |
Commercial and Industrial [Member] | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Loans charged-off | -207,000 | -241,000 | -267,000 | -681,000 | -703,000 |
Impaired Loans, Recorded Investment | ' | ' | ' | ' | ' |
With no related allowance recorded | 393,000 | ' | 393,000 | ' | 498,000 |
With an allowance recorded | 543,000 | ' | 543,000 | ' | 939,000 |
Impaired Loans, Unpaid Principal Balance | ' | ' | ' | ' | ' |
With no related allowance recorded | 432,000 | ' | 432,000 | ' | 686,000 |
With an allowance recorded | 759,000 | ' | 759,000 | ' | 956,000 |
Impaired Loans, Related Allowance | 212,000 | ' | 212,000 | ' | 636,000 |
Impaired Loans, Average Recorded Investment | ' | ' | ' | ' | ' |
With no related allowance recorded | 421,000 | ' | 449,000 | ' | 484,000 |
With an allowance recorded | 695,000 | ' | 778,000 | ' | 528,000 |
Impaired Loans, Interest Income Recognized | ' | ' | ' | ' | ' |
With no related allowance recorded | 2,000 | ' | 10,000 | ' | 1,000 |
With an allowance recorded | 0 | ' | 4,000 | ' | 11,000 |
Commercial Construction and Land Development [Member] | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Loans charged-off | -1,485,000 | -2,580,000 | -3,343,000 | -4,735,000 | -7,929,000 |
Impaired Loans, Recorded Investment | ' | ' | ' | ' | ' |
With no related allowance recorded | 12,273,000 | ' | 12,273,000 | ' | 11,266,000 |
With an allowance recorded | 2,055,000 | ' | 2,055,000 | ' | 9,619,000 |
Impaired Loans, Unpaid Principal Balance | ' | ' | ' | ' | ' |
With no related allowance recorded | 19,364,000 | ' | 19,364,000 | ' | 15,889,000 |
With an allowance recorded | 2,929,000 | ' | 2,929,000 | ' | 13,033,000 |
Impaired Loans, Related Allowance | 667,000 | ' | 667,000 | ' | 1,693,000 |
Impaired Loans, Average Recorded Investment | ' | ' | ' | ' | ' |
With no related allowance recorded | 13,400,000 | ' | 14,797,000 | ' | 13,008,000 |
With an allowance recorded | 2,062,000 | ' | 2,123,000 | ' | 10,003,000 |
Impaired Loans, Interest Income Recognized | ' | ' | ' | ' | ' |
With no related allowance recorded | 15,000 | ' | 73,000 | ' | 22,000 |
With an allowance recorded | 3,000 | ' | 12,000 | ' | 36,000 |
Commercial Real Estate [Member] | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Loans charged-off | -503,000 | -791,000 | -1,728,000 | -1,277,000 | -3,691,000 |
Impaired Loans, Recorded Investment | ' | ' | ' | ' | ' |
With no related allowance recorded | 11,086,000 | ' | 11,086,000 | ' | 12,865,000 |
With an allowance recorded | 2,433,000 | ' | 2,433,000 | ' | 4,877,000 |
Impaired Loans, Unpaid Principal Balance | ' | ' | ' | ' | ' |
With no related allowance recorded | 13,356,000 | ' | 13,356,000 | ' | 14,263,000 |
With an allowance recorded | 2,595,000 | ' | 2,595,000 | ' | 6,852,000 |
Impaired Loans, Related Allowance | 688,000 | ' | 688,000 | ' | 640,000 |
Impaired Loans, Average Recorded Investment | ' | ' | ' | ' | ' |
With no related allowance recorded | 11,434,000 | ' | 11,935,000 | ' | 12,328,000 |
With an allowance recorded | 2,458,000 | ' | 2,496,000 | ' | 5,623,000 |
Impaired Loans, Interest Income Recognized | ' | ' | ' | ' | ' |
With no related allowance recorded | 10,000 | ' | 54,000 | ' | 64,000 |
With an allowance recorded | 0 | ' | 1,000 | ' | 46,000 |
Residential [Member] | ' | ' | ' | ' | ' |
Impaired Loans, Recorded Investment | ' | ' | ' | ' | ' |
Total | 14,819,000 | ' | 14,819,000 | ' | 18,746,000 |
Impaired Loans, Unpaid Principal Balance | ' | ' | ' | ' | ' |
Total | 17,054,000 | ' | 17,054,000 | ' | 21,097,000 |
Impaired Loans, Related Allowance | 234,000 | ' | 234,000 | ' | 2,420,000 |
Impaired Loans, Average Recorded Investment | ' | ' | ' | ' | ' |
Total | 15,252,000 | ' | 15,892,000 | ' | 18,476,000 |
Impaired Loans, Interest Income Recognized | ' | ' | ' | ' | ' |
Total | 4,000 | ' | 64,000 | ' | 176,000 |
Residential Construction [Member] | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Loans charged-off | 0 | -1,000 | -138,000 | -36,000 | -103,000 |
Impaired Loans, Recorded Investment | ' | ' | ' | ' | ' |
With no related allowance recorded | 695,000 | ' | 695,000 | ' | 340,000 |
With an allowance recorded | 0 | ' | 0 | ' | 833,000 |
Impaired Loans, Unpaid Principal Balance | ' | ' | ' | ' | ' |
With no related allowance recorded | 1,134,000 | ' | 1,134,000 | ' | 340,000 |
With an allowance recorded | 0 | ' | 0 | ' | 1,134,000 |
Impaired Loans, Related Allowance | 0 | ' | 0 | ' | 86,000 |
Impaired Loans, Average Recorded Investment | ' | ' | ' | ' | ' |
With no related allowance recorded | 695,000 | ' | 766,000 | ' | 162,000 |
With an allowance recorded | 0 | ' | 0 | ' | 884,000 |
Impaired Loans, Interest Income Recognized | ' | ' | ' | ' | ' |
With no related allowance recorded | 0 | ' | 0 | ' | 0 |
With an allowance recorded | 0 | ' | 0 | ' | 0 |
Residential Mortgage [Member] | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Loans charged-off | -259,000 | -508,000 | -1,164,000 | -786,000 | -1,801,000 |
Impaired Loans, Recorded Investment | ' | ' | ' | ' | ' |
With no related allowance recorded | 13,434,000 | ' | 13,434,000 | ' | 10,106,000 |
With an allowance recorded | 690,000 | ' | 690,000 | ' | 7,467,000 |
Impaired Loans, Unpaid Principal Balance | ' | ' | ' | ' | ' |
With no related allowance recorded | 15,196,000 | ' | 15,196,000 | ' | 11,542,000 |
With an allowance recorded | 724,000 | ' | 724,000 | ' | 8,081,000 |
Impaired Loans, Related Allowance | 234,000 | ' | 234,000 | ' | 2,334,000 |
Impaired Loans, Average Recorded Investment | ' | ' | ' | ' | ' |
With no related allowance recorded | 13,860,000 | ' | 14,419,000 | ' | 9,937,000 |
With an allowance recorded | 697,000 | ' | 707,000 | ' | 7,493,000 |
Impaired Loans, Interest Income Recognized | ' | ' | ' | ' | ' |
With no related allowance recorded | 4,000 | ' | 64,000 | ' | 132,000 |
With an allowance recorded | 0 | ' | 0 | ' | 44,000 |
Consumer [Member] | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Loans charged-off | -52,000 | -75,000 | -216,000 | -405,000 | -516,000 |
Impaired Loans, Recorded Investment | ' | ' | ' | ' | ' |
With no related allowance recorded | 19,000 | ' | 19,000 | ' | 25,000 |
With an allowance recorded | 0 | ' | 0 | ' | 25,000 |
Total | 19,000 | ' | 19,000 | ' | 50,000 |
Impaired Loans, Unpaid Principal Balance | ' | ' | ' | ' | ' |
With no related allowance recorded | 29,000 | ' | 29,000 | ' | 42,000 |
With an allowance recorded | 0 | ' | 0 | ' | 34,000 |
Total | 29,000 | ' | 29,000 | ' | 76,000 |
Impaired Loans, Related Allowance | 0 | ' | 0 | ' | 0 |
Impaired Loans, Average Recorded Investment | ' | ' | ' | ' | ' |
With no related allowance recorded | 20,000 | ' | 24,000 | ' | 26,000 |
With an allowance recorded | 0 | ' | 0 | ' | 25,000 |
Total | 20,000 | ' | 24,000 | ' | 51,000 |
Impaired Loans, Interest Income Recognized | ' | ' | ' | ' | ' |
With no related allowance recorded | 0 | ' | 0 | ' | 0 |
With an allowance recorded | 0 | ' | 0 | ' | 0 |
Total | 0 | ' | 0 | ' | 0 |
Other [Member] | ' | ' | ' | ' | ' |
Impaired Loans, Recorded Investment | ' | ' | ' | ' | ' |
With no related allowance recorded | ' | ' | ' | ' | 0 |
With an allowance recorded | ' | ' | ' | ' | 0 |
Impaired Loans, Unpaid Principal Balance | ' | ' | ' | ' | ' |
With no related allowance recorded | ' | ' | ' | ' | 0 |
With an allowance recorded | ' | ' | ' | ' | 0 |
Impaired Loans, Related Allowance | ' | ' | ' | ' | 0 |
Impaired Loans, Average Recorded Investment | ' | ' | ' | ' | ' |
With no related allowance recorded | ' | ' | ' | ' | 0 |
With an allowance recorded | ' | ' | ' | ' | 0 |
Impaired Loans, Interest Income Recognized | ' | ' | ' | ' | ' |
With no related allowance recorded | ' | ' | ' | ' | 0 |
With an allowance recorded | ' | ' | ' | ' | $0 |
LOANS_Loans_on_Nonaccrual_Stat
LOANS (Loans on Nonaccrual Status) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual loans | $33,873 | $35,970 |
Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual loans | 898 | 664 |
Commercial Construction and Land Development [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual loans | 13,747 | 15,941 |
Commercial Real Estate [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual loans | 7,529 | 9,091 |
Residential Construction [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual loans | 695 | 833 |
Residential Mortgage [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual loans | 10,985 | 9,408 |
Consumer [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual loans | $19 | $33 |
LOANS_Summary_of_Loans_Modifie
LOANS (Summary of Loans Modified as TDRs) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Modifications [Line Items] | ' | ' |
Accrual | $7,770 | $13,300 |
Nonaccrual | 17,662 | 18,296 |
Total TDRs | 25,432 | 31,596 |
Allowance for Loan Losses Allocated | 441 | 1,339 |
Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Accrual | 38 | 349 |
Nonaccrual | 337 | 87 |
Total TDRs | 375 | 436 |
Allowance for Loan Losses Allocated | 25 | 45 |
Commercial Construction and Land Development [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Accrual | 228 | 3,484 |
Nonaccrual | 9,600 | 10,659 |
Total TDRs | 9,828 | 14,143 |
Allowance for Loan Losses Allocated | 0 | 0 |
Commercial Real Estate [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Accrual | 4,479 | 5,522 |
Nonaccrual | 4,759 | 4,437 |
Total TDRs | 9,238 | 9,959 |
Allowance for Loan Losses Allocated | 182 | 922 |
Residential Mortgage [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Accrual | 3,025 | 3,945 |
Nonaccrual | 2,963 | 3,113 |
Total TDRs | 5,988 | 7,058 |
Allowance for Loan Losses Allocated | 234 | 372 |
Consumer [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Accrual | 0 | ' |
Nonaccrual | 3 | ' |
Total TDRs | 3 | ' |
Allowance for Loan Losses Allocated | $0 | ' |
LOANS_Troubled_Debt_Restructur
LOANS (Troubled Debt Restructurings by Loan Class) (Details) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
loans | loans | |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 1 | 10 |
Pre-classification outstanding recorded investment | $58 | $948 |
Post-modification outstanding recorded investment | 58 | 948 |
Below Market Interest Rate [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 0 | 1 |
Pre-classification outstanding recorded investment | 0 | 453 |
Post-modification outstanding recorded investment | 0 | 453 |
Below Market Interest Rate [Member] | Residential Mortgage [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 0 | 1 |
Pre-classification outstanding recorded investment | 0 | 453 |
Post-modification outstanding recorded investment | 0 | 453 |
Extended Payment Terms [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 1 | 8 |
Pre-classification outstanding recorded investment | 58 | 462 |
Post-modification outstanding recorded investment | 58 | 462 |
Extended Payment Terms [Member] | Commercial Real Estate [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 0 | 4 |
Pre-classification outstanding recorded investment | 0 | 213 |
Post-modification outstanding recorded investment | 0 | 213 |
Extended Payment Terms [Member] | Residential Mortgage [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 1 | 4 |
Pre-classification outstanding recorded investment | 58 | 249 |
Post-modification outstanding recorded investment | 58 | 249 |
Other [Member] | Commercial Real Estate [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 0 | 1 |
Pre-classification outstanding recorded investment | 0 | 33 |
Post-modification outstanding recorded investment | $0 | $33 |
LOANS_Status_of_Troubled_Debt_
LOANS (Status of Troubled Debt Restructurings) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | loans | |
Financing Receivable, Modifications [Line Items] | ' | ' |
Total TDRs | $25,432 | $31,596 |
Number of loans foreclosed | 10 | ' |
Paid in Full [member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 0 | ' |
Total TDRs | 0 | ' |
Paying as Restructured [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 7 | ' |
Total TDRs | 796 | ' |
Converted to Non-accrual [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 1 | ' |
Total TDRs | 58 | ' |
Foreclosure/Default [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans foreclosed | 2 | ' |
Recorded investment foreclosed | 0 | ' |
Accepted as Settlement [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Recorded investment foreclosed | 30 | ' |
Charged Off [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Recorded investment foreclosed | 200 | ' |
Below Market Interest Rate [Member] | Paid in Full [member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 0 | ' |
Total TDRs | 0 | ' |
Below Market Interest Rate [Member] | Paying as Restructured [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 1 | ' |
Total TDRs | 452 | ' |
Below Market Interest Rate [Member] | Converted to Non-accrual [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 0 | ' |
Total TDRs | 0 | ' |
Below Market Interest Rate [Member] | Foreclosure/Default [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans foreclosed | 0 | ' |
Recorded investment foreclosed | 0 | ' |
Extended Payment Terms [Member] | Paid in Full [member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 0 | ' |
Total TDRs | 0 | ' |
Extended Payment Terms [Member] | Paying as Restructured [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 5 | ' |
Total TDRs | 311 | ' |
Extended Payment Terms [Member] | Converted to Non-accrual [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 1 | ' |
Total TDRs | 58 | ' |
Extended Payment Terms [Member] | Foreclosure/Default [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans foreclosed | 2 | ' |
Recorded investment foreclosed | 0 | ' |
Forgiveness of Principal [Member] | Paid in Full [member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 0 | ' |
Total TDRs | 0 | ' |
Forgiveness of Principal [Member] | Paying as Restructured [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 0 | ' |
Total TDRs | 0 | ' |
Forgiveness of Principal [Member] | Converted to Non-accrual [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 0 | ' |
Total TDRs | 0 | ' |
Forgiveness of Principal [Member] | Foreclosure/Default [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans foreclosed | 0 | ' |
Recorded investment foreclosed | 0 | ' |
Other [Member] | Paid in Full [member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 0 | ' |
Total TDRs | 0 | ' |
Other [Member] | Paying as Restructured [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 1 | ' |
Total TDRs | 33 | ' |
Other [Member] | Converted to Non-accrual [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 0 | ' |
Total TDRs | 0 | ' |
Other [Member] | Foreclosure/Default [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans foreclosed | 0 | ' |
Recorded investment foreclosed | $0 | ' |
FAIR_VALUE_MEASUREMENT_Assets_
FAIR VALUE MEASUREMENT (Assets Measured at Fair Value on Recurring Basis) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | $8,821 | $73,722 |
Taxable Municipal Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 3,823 | 5,913 |
Mortgage-backed Securities GNMA [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 3,845 | 60,743 |
Mortgage-backed securities FNMA [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | ' | 5,880 |
Equity Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 128 | 180 |
Quoted Prices in Active Markets for Identical Asset (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 50 | 56 |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 7,746 | 72,660 |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 1,025 | 1,006 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Asset (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 50 | 56 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Asset (Level 1) [Member] | Taxable Municipal Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 0 | 0 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Asset (Level 1) [Member] | Mortgage-backed Securities GNMA [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 0 | 0 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Asset (Level 1) [Member] | Mortgage-backed securities FNMA [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 0 | 0 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Asset (Level 1) [Member] | Trust Preferred Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 0 | 0 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Asset (Level 1) [Member] | Equity Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 50 | 56 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 7,746 | 72,660 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Taxable Municipal Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 3,823 | 5,913 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Mortgage-backed Securities GNMA [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 3,845 | 60,743 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Mortgage-backed securities FNMA [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 0 | 5,880 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Trust Preferred Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 0 | 0 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Equity Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 78 | 124 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 1,025 | 1,006 |
Discount rate used | 9.00% | ' |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Taxable Municipal Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 0 | 0 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Mortgage-backed Securities GNMA [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 0 | 0 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Mortgage-backed securities FNMA [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 0 | 0 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Trust Preferred Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 1,025 | 1,006 |
Number of securities held | 2 | ' |
Duration of LIBOR rate used | '3 months | ' |
Floating interest rate, LIBOR plus | 5.00% | ' |
Weighted average maturity | '6 years | ' |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Equity Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 0 | 0 |
Total Carrying Amount in the Consolidated Balance Sheet [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 8,821 | 73,722 |
Total Carrying Amount in the Consolidated Balance Sheet [Member] | Recurring Basis [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 8,821 | 73,722 |
Total Carrying Amount in the Consolidated Balance Sheet [Member] | Recurring Basis [Member] | Taxable Municipal Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 3,823 | 5,913 |
Total Carrying Amount in the Consolidated Balance Sheet [Member] | Recurring Basis [Member] | Mortgage-backed Securities GNMA [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 3,845 | 60,743 |
Total Carrying Amount in the Consolidated Balance Sheet [Member] | Recurring Basis [Member] | Mortgage-backed securities FNMA [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 0 | 5,880 |
Total Carrying Amount in the Consolidated Balance Sheet [Member] | Recurring Basis [Member] | Trust Preferred Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 1,025 | 1,006 |
Total Carrying Amount in the Consolidated Balance Sheet [Member] | Recurring Basis [Member] | Equity Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 128 | 180 |
Assets Measured at Fair Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 8,821 | 73,722 |
Assets Measured at Fair Value [Member] | Recurring Basis [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 8,821 | 73,722 |
Assets Measured at Fair Value [Member] | Recurring Basis [Member] | Taxable Municipal Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 3,823 | 5,913 |
Assets Measured at Fair Value [Member] | Recurring Basis [Member] | Mortgage-backed Securities GNMA [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 3,845 | 60,743 |
Assets Measured at Fair Value [Member] | Recurring Basis [Member] | Mortgage-backed securities FNMA [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 0 | 5,880 |
Assets Measured at Fair Value [Member] | Recurring Basis [Member] | Trust Preferred Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 1,025 | 1,006 |
Assets Measured at Fair Value [Member] | Recurring Basis [Member] | Equity Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | $128 | $180 |
FAIR_VALUE_MEASUREMENT_Level_3
FAIR VALUE MEASUREMENT (Level 3 Assets Measured at Fair Value on Recurring Basis) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Level 3 assets measured at fair value on a recurring basis [Roll Forward] | ' | ' | ' | ' |
Beginning Balance | $1,019 | $1,019 | $1,006 | $1,085 |
Total realized and unrealized gains or (losses) included in earnings | 0 | 0 | 0 | 0 |
Total realized and unrealized gains or (losses) included in other comprehensive income (loss) | 6 | 12 | 19 | -54 |
Purchases, issuances and settlements | 0 | 0 | 0 | 0 |
Transfers in (out) of Level 3 | 0 | 0 | 0 | 0 |
Ending Balance | $1,025 | $1,031 | $1,025 | $1,031 |
FAIR_VALUE_MEASUREMENT_Assets_1
FAIR VALUE MEASUREMENT (Assets Measured at Fair Value on Nonrecurring Basis) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Impaired loans, amount | $43,621,000 | $58,860,000 |
Impaired loans, amount with allowance | 5,721,000 | 23,760,000 |
Impaired loans, allowance | 1,801,000 | 5,389,000 |
Foreclosed assets | 10,443,000 | 15,136,000 |
Available for sale securities | 8,821,000 | 73,722,000 |
Foreclosed assets valuation reductions | 1,200,000 | 2,300,000 |
Assets measured at fair value: | ' | ' |
Impaired loans | 3,900,000 | ' |
Quoted Prices in Active Markets for Identical Asset (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 50,000 | 56,000 |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 7,746,000 | 72,660,000 |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 1,025,000 | 1,006,000 |
Total Carrying Amount in the Consolidated Balance Sheet [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 8,821,000 | 73,722,000 |
Assets Measured at Fair Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 8,821,000 | 73,722,000 |
Nonrecurring Basis [Member] | Quoted Prices in Active Markets for Identical Asset (Level 1) [Member] | ' | ' |
Assets measured at fair value: | ' | ' |
Impaired loans | 0 | 0 |
Foreclosed assets | 0 | 0 |
Nonrecurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Assets measured at fair value: | ' | ' |
Impaired loans | 0 | 0 |
Foreclosed assets | 0 | 0 |
Nonrecurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Impaired loans, amount | 3,920,000 | ' |
Foreclosed assets | 10,443,000 | ' |
Assets measured at fair value: | ' | ' |
Impaired loans | 3,920,000 | 18,371,000 |
Foreclosed assets | 10,443,000 | 15,136,000 |
Nonrecurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Minimum [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Collateral discounts | 15.00% | ' |
Discounted appraisals | 10.00% | ' |
Nonrecurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Maximum [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Collateral discounts | 70.00% | ' |
Discounted appraisals | 30.00% | ' |
Nonrecurring Basis [Member] | Total Carrying Amount in the Consolidated Balance Sheet [Member] | ' | ' |
Assets measured at fair value: | ' | ' |
Impaired loans | 3,920,000 | 18,371,000 |
Foreclosed assets | 10,443,000 | 15,136,000 |
Nonrecurring Basis [Member] | Assets Measured at Fair Value [Member] | ' | ' |
Assets measured at fair value: | ' | ' |
Impaired loans | 3,920,000 | 18,371,000 |
Foreclosed assets | 10,443,000 | 15,136,000 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Asset (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 50,000 | 56,000 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 7,746,000 | 72,660,000 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 1,025,000 | 1,006,000 |
Recurring Basis [Member] | Total Carrying Amount in the Consolidated Balance Sheet [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 8,821,000 | 73,722,000 |
Recurring Basis [Member] | Assets Measured at Fair Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 8,821,000 | 73,722,000 |
Recurring Basis [Member] | Trust Preferred Securities [Member] | Quoted Prices in Active Markets for Identical Asset (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 0 | 0 |
Recurring Basis [Member] | Trust Preferred Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 0 | 0 |
Recurring Basis [Member] | Trust Preferred Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 1,025,000 | 1,006,000 |
Loss given default | 100.00% | ' |
Recurring Basis [Member] | Trust Preferred Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Minimum [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Probability of default | 10.00% | ' |
Recurring Basis [Member] | Trust Preferred Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Maximum [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Probability of default | 20.00% | ' |
Recurring Basis [Member] | Trust Preferred Securities [Member] | Total Carrying Amount in the Consolidated Balance Sheet [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | 1,025,000 | 1,006,000 |
Recurring Basis [Member] | Trust Preferred Securities [Member] | Assets Measured at Fair Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale securities | $1,025,000 | $1,006,000 |
FAIR_VALUE_OF_FINANCIAL_INSTRU2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||
Financial assets: | ' | ' | |
CDs held for investment | $35,035 | $26,460 | [1] |
Securities available for sale | 8,821 | 73,722 | |
Carrying Value [Member] | ' | ' | |
Financial assets: | ' | ' | |
Cash and cash equivalents | 130,172 | 183,150 | |
CDs held for investment | 35,035 | 26,460 | |
Securities available for sale | 8,821 | 73,722 | |
Securities held to maturity | 102,173 | 20,329 | |
Loans held for sale | 214 | 19,297 | |
Loans, net | 483,693 | 481,380 | |
FHLB stock | 6,076 | 6,415 | |
Premises and equipment, held for sale | ' | 1,901 | |
Accrued interest receivable | 1,570 | 1,869 | |
Financial liabilities: | ' | ' | |
Deposits | 646,380 | 699,856 | |
Subordinated debentures and promissory notes | 24,372 | 24,372 | |
Borrowings | 112,000 | 112,000 | |
Accrued interest payable | 1,609 | 1,736 | |
Estimated Fair Value [Member] | ' | ' | |
Financial assets: | ' | ' | |
Cash and cash equivalents | 130,172 | 183,150 | |
CDs held for investment | 35,035 | 26,460 | |
Securities available for sale | 8,821 | 73,722 | |
Securities held to maturity | 101,296 | 20,668 | |
Loans held for sale | 214 | 19,297 | |
Loans, net | 484,777 | 460,422 | |
FHLB stock | 6,076 | 6,415 | |
Premises and equipment, held for sale | ' | 1,901 | |
Accrued interest receivable | 1,570 | 1,869 | |
Financial liabilities: | ' | ' | |
Deposits | 632,240 | 694,184 | |
Subordinated debentures and promissory notes | 15,598 | 15,598 | |
Borrowings | 122,231 | 126,738 | |
Accrued interest payable | 1,609 | 1,736 | |
Level 1 [Member] | ' | ' | |
Financial assets: | ' | ' | |
Cash and cash equivalents | 130,172 | 183,150 | |
CDs held for investment | 0 | 0 | |
Securities available for sale | 50 | 56 | |
Securities held to maturity | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Loans, net | 0 | 0 | |
FHLB stock | 0 | 0 | |
Premises and equipment, held for sale | ' | 0 | |
Accrued interest receivable | 0 | 0 | |
Financial liabilities: | ' | ' | |
Deposits | 0 | 0 | |
Subordinated debentures and promissory notes | 0 | 0 | |
Borrowings | 0 | 0 | |
Accrued interest payable | 0 | 0 | |
Level 2 [Member] | ' | ' | |
Financial assets: | ' | ' | |
Cash and cash equivalents | 0 | 0 | |
CDs held for investment | 35,035 | 26,460 | |
Securities available for sale | 7,746 | 72,660 | |
Securities held to maturity | 101,296 | 20,668 | |
Loans held for sale | 0 | 0 | |
Loans, net | 0 | 0 | |
FHLB stock | 6,076 | 6,415 | |
Premises and equipment, held for sale | ' | 0 | |
Accrued interest receivable | 1,570 | 1,869 | |
Financial liabilities: | ' | ' | |
Deposits | 632,240 | 694,184 | |
Subordinated debentures and promissory notes | 0 | 0 | |
Borrowings | 122,231 | 126,738 | |
Accrued interest payable | 1,609 | 1,736 | |
Level 3 [Member] | ' | ' | |
Financial assets: | ' | ' | |
Cash and cash equivalents | 0 | 0 | |
CDs held for investment | 0 | 0 | |
Securities available for sale | 1,025 | 1,006 | |
Securities held to maturity | 0 | 0 | |
Loans held for sale | 214 | 19,297 | |
Loans, net | 484,777 | 460,422 | |
FHLB stock | 0 | 0 | |
Premises and equipment, held for sale | ' | 1,901 | |
Accrued interest receivable | 0 | 0 | |
Financial liabilities: | ' | ' | |
Deposits | 0 | 0 | |
Subordinated debentures and promissory notes | 15,598 | 15,598 | |
Borrowings | 0 | 0 | |
Accrued interest payable | $0 | $0 | |
[1] | Derived from audited consolidated financial statements. |
SUBORDINATED_NOTES_Details
SUBORDINATED NOTES (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||
Debt Instrument [Line Items] | ' | ' | |
Interest payable accrued and deferred | $1,609 | $1,736 | [1] |
Subordinated Notes [Member] | Trust Preferred Securities [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Interest payable accrued and deferred | $650 | ' | |
[1] | Derived from audited consolidated financial statements. |
REGULATORY_RESTRICTIONS_Detail
REGULATORY RESTRICTIONS (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 31-May-11 | |
Four Oaks Bank & Trust Company (the bBankb) [Member] | ' | ' | ' | ' |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' | ' | ' |
Dividends paid to the Company by the Bank | $0 | $0 | $0 | ' |
Total Capital (to Risk Weighted Assets), Amount | ' | ' | ' | ' |
Total Capital (to Risk Weighted Assets), Amount, Actual | 50,761,000 | 50,044,000 | ' | ' |
Total Capital (to Risk Weighted Assets), Amount, Minimum for Capital Adequacy Purposes | 37,446,000 | 39,246,000 | ' | ' |
Total Capital (to Risk Weighted Assets), Amount, Minimum to be Well Capitalized under Prompt Corrective Action Provisions | 46,808,000 | 49,057,000 | ' | ' |
Tier I Capital (to Risk Weighted Assets), Amount | ' | ' | ' | ' |
Tier I Capital (to Risk Weighted Assets), Amount, Actual | 44,821,000 | 43,797,000 | ' | ' |
Tier I Capital (to Risk Weighted Assets), Amount, Minimum for Capital Adequacy Purposes | 18,723,000 | 19,623,000 | ' | ' |
Tier I Capital (to Risk Weighted Assets), Amount, Minimum to be Well Capitalized under Prompt Corrective Action Provisions | 28,085,000 | 29,434,000 | ' | ' |
Tier I Capital (to Average Assets), Amount | ' | ' | ' | ' |
Tier I Capital (to Average Assets), Amount, Actual | 44,821,000 | 43,797,000 | ' | ' |
Tier I Capital (to Average Assets), Amount, Minimum for Capital Adequacy Purposes | 32,143,000 | 34,949,000 | ' | ' |
Tier I Capital (to Average Assets), Amount, Minimum to be Well Capitalized under Prompt Corrective Action Provisions | 40,179,000 | 43,687,000 | ' | ' |
Total Capital and Tier I Capital (to Risk Weighted Assets), Ratio | ' | ' | ' | ' |
Total Capital (to Risk Weighted Assets), Ratio, Actual | 10.84% | 10.20% | ' | ' |
Total Capital (to Risk Weighted Assets), Ratio, Minimum for Capital Adequacy Purposes | 8.00% | 8.00% | ' | ' |
Total Capital (to Risk Weighted Assets), Ratio, Minimum to be Well Capitalized under Prompt Corrective Action Provisions | 10.00% | 10.00% | ' | ' |
Tier I Capital (to Risk Weighted Assets), Ratio, Actual | 9.58% | 8.93% | ' | ' |
Tier I Capital (to Risk Weighted Assets), Ratio, Minimum for Capital Adequacy Purposes | 4.00% | 4.00% | ' | ' |
Tier I Capital (to Risk Weighted Assets), Ratio, Minimum to be Well Capitalized under Prompt Corrective Action Provisions | 6.00% | 6.00% | ' | ' |
Tier I Capital (to Average Assets), Ratio | ' | ' | ' | ' |
Tier I Capital (to Average Assets), Ratio, Actual | 5.58% | 5.01% | ' | ' |
Tier I Capital (to Average Assets), Ratio, Minimum for Capital Adequacy Purposes | 4.00% | 4.00% | ' | ' |
Tier I Capital (to Average Assets), Ratio, Minimum to be Well Capitalized under Prompt Corrective Action Provisions | 5.00% | 5.00% | ' | ' |
Minimum individual amount of over 90 days past due loans, relationships, or other assets position to be improved | ' | ' | ' | $750,000 |
Parent Company [Member] | ' | ' | ' | ' |
Total Capital and Tier I Capital (to Risk Weighted Assets), Ratio | ' | ' | ' | ' |
Total Capital (to Risk Weighted Assets), Ratio, Actual | 10.57% | 10.17% | ' | ' |
Tier I Capital (to Risk Weighted Assets), Ratio, Actual | 6.32% | 5.93% | ' | ' |
Tier I Capital (to Average Assets), Ratio | ' | ' | ' | ' |
Tier I Capital (to Average Assets), Ratio, Actual | 3.68% | 3.33% | ' | ' |
BRANCH_SALE_Details
BRANCH SALE (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Mar. 22, 2013 | Mar. 19, 2013 | Mar. 22, 2013 | Mar. 19, 2013 | Mar. 19, 2013 | |
Rockingham, North Carolina [Member] | Rockingham, North Carolina [Member] | Deposits [Member] | Property, Plant and Equipment [Member] | Loans [Member] | ||||||
branch_offices | Rockingham, North Carolina [Member] | Rockingham, North Carolina [Member] | Rockingham, North Carolina [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Number of branch offices sold | ' | ' | ' | ' | 2 | ' | ' | ' | ' | |
Purchase price component, premium over deposits at branches | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | |
Settlement period | ' | ' | ' | ' | '100 days | ' | ' | ' | ' | |
Cash settlement to First Bank NC | ' | ' | ' | ' | $39,600,000 | ' | ' | ' | ' | |
Long-lived assets held for sale | ' | ' | ' | ' | ' | ' | 57,400,000 | 1,900,000 | 15,100,000 | |
Premium of the deposits balance | ' | ' | ' | ' | 600,000 | ' | ' | ' | ' | |
Assets of disposal group | ' | ' | ' | ' | 17,200,000 | ' | ' | ' | ' | |
Cash on hand | $130,172,000 | $183,150,000 | [1] | $222,019,000 | $164,966,000 | ' | $200,000 | ' | ' | ' |
[1] | Derived from audited consolidated financial statements. |