Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 03, 2015 | Jun. 30, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | HFBC | ||
Entity Registrant Name | HOPFED BANCORP INC | ||
Entity Central Index Key | 1041550 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 7,149,439 | ||
Entity Public Float | $82,312,675 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Assets | ||
Cash and due from banks | $34,389,000 | $37,229,000 |
Interest-earning deposits | 6,050,000 | 18,619,000 |
Cash and cash equivalents | 40,439,000 | 55,848,000 |
Federal Home Loan Bank stock, at cost | 4,428,000 | 4,428,000 |
Securities available for sale | 303,628,000 | 318,910,000 |
Loans held for sale | 1,444,000 | |
Loans receivable, net of allowance for loan losses of $6,289 at December 31, 2014, and $8,682 at December 31, 2013 | 539,264,000 | 543,632,000 |
Accrued interest receivable | 4,576,000 | 5,233,000 |
Real estate and other assets owned | 1,927,000 | 1,674,000 |
Bank owned life insurance | 9,984,000 | 9,677,000 |
Premises and equipment, net | 22,940,000 | 23,108,000 |
Deferred tax assets | 2,261,000 | 4,610,000 |
Intangible asset | 33,000 | 130,000 |
Other assets | 4,861,000 | 6,399,000 |
Total assets | 935,785,000 | 973,649,000 |
Deposits: | ||
Non-interest-bearing accounts | 115,051,000 | 105,252,000 |
Interest-bearing accounts: | ||
Interest bearing checking accounts | 186,616,000 | 183,643,000 |
Savings and money market accounts | 97,726,000 | 92,106,000 |
Other time deposits | 331,915,000 | 381,996,000 |
Total deposits | 731,308,000 | 762,997,000 |
Advances from Federal Home Loan Bank | 34,000,000 | 46,780,000 |
Repurchase agreements | 57,358,000 | 52,759,000 |
Subordinated debentures | 10,310,000 | 10,310,000 |
Advances from borrowers for taxes and insurance | 513,000 | 521,000 |
Dividends payable | 301,000 | 326,000 |
Accrued expenses and other liabilities | 3,593,000 | 4,239,000 |
Total liabilities | 837,383,000 | 877,932,000 |
Stockholders' equity | ||
Preferred stock, par value $0.01 per share; authorized-500,000 shares; no shares issued or outstanding at December 31, 2014, and December 31, 2013. | 0 | 0 |
Common stock, par value $.01 per share; authorized 15,000,000 shares; 7,949,665 issued and 7,171,282 outstanding at December 31, 2014, and 7,927,287 issued and 7,447,903 outstanding at December 31, 2013 | 79,000 | 79,000 |
Additional paid-in-capital | 58,466,000 | 58,302,000 |
Retained earnings | 45,729,000 | 44,694,000 |
Treasury stock | -9,429,000 | -5,929,000 |
Accumulated other comprehensive income (loss), net of taxes | 3,557,000 | -1,429,000 |
Total stockholders' equity | 98,402,000 | 95,717,000 |
Total liabilities and stockholders' equity | 935,785,000 | 973,649,000 |
Commitments and contingencies |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Loans receivable, allowance for loan losses | $6,289 | $8,682 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 15,000,000 | 15,000,000 |
Common stock, shares issued | 7,949,665 | 7,927,287 |
Common stock, shares outstanding | 7,171,282 | 7,447,903 |
Treasury stock, shares | 778,383 | 479,384 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest and dividend income | |||
Loans receivable | $26,025 | $26,741 | $29,828 |
Securities available for sale | 6,548 | 6,873 | 8,722 |
Nontaxable securities available for sale | 2,081 | 2,219 | 2,266 |
Interest-earning deposits | 26 | 24 | 24 |
Total interest and dividend income | 34,680 | 35,857 | 40,840 |
Interest expense: | |||
Deposits | 5,603 | 7,114 | 10,571 |
Advances from Federal Home loan Bank | 1,665 | 1,780 | 2,609 |
Repurchase agreements | 874 | 954 | 963 |
Subordinated debentures | 737 | 733 | 734 |
Total interest expense | 8,879 | 10,581 | 14,877 |
Net interest income | 25,801 | 25,276 | 25,963 |
Provision for loan losses | -2,273 | 1,604 | 2,275 |
Net interest income after provision for loan losses | 28,074 | 23,672 | 23,688 |
Non-interest income: | |||
Other-than-temporary impairment losses on debt securities | -511 | ||
Portion of losses recognized in other comprehensive income | 111 | ||
Net impairment losses recognized in earnings | -400 | ||
Service charges | 3,354 | 3,670 | 3,840 |
Merchant card income | 1,075 | 983 | 842 |
Mortgage origination income | 719 | 634 | 956 |
Realized gain from sale of securities available for sale, net | 578 | 1,661 | 1,671 |
Income from bank owned life insurance | 307 | 354 | 399 |
Financial services commission | 980 | 1,250 | 1,071 |
Gain on sale of assets | 412 | ||
Other operating income | 827 | 808 | 860 |
Total non-interest income | 7,840 | 9,372 | 9,639 |
Non-interest expenses: | |||
Salaries and benefits | 15,222 | 14,733 | 13,979 |
Occupancy expense | 3,217 | 3,475 | 3,531 |
Data processing expense | 2,887 | 2,695 | 2,494 |
Franchise and deposit tax | 1,336 | 581 | 647 |
Intangible amortization | 97 | 162 | 227 |
Professional services | 1,331 | 1,773 | 1,605 |
Advertising expense | 1,341 | 1,236 | 1,357 |
Postage and communications expense | 577 | 567 | 562 |
Supplies expense | 627 | 495 | 355 |
Deposit insurance and examination fees | 724 | 727 | 1,539 |
Loss on sale of assets | 25 | 12 | 13 |
Loss (gain) on sale of real estate owned | 208 | 140 | 266 |
Expenses related to real estate owned | 266 | 402 | 123 |
Loss on sale of loan note | 1,781 | ||
Loss on early debt extinguishment | 2,510 | ||
Other operating expenses | 1,767 | 1,640 | 1,743 |
Total non-interest expense | 33,916 | 28,638 | 28,441 |
Income (loss) before income tax expense | 1,998 | 4,406 | 4,886 |
Income tax expense | -201 | 644 | 817 |
Net income | 2,199 | 3,762 | 4,069 |
Less: Dividend on preferred shares | 1,007 | ||
Accretion dividend on preferred shares | 222 | ||
Net income available for common shareholders | $2,199 | $3,762 | $2,840 |
Earnings per share available to common stockholders | |||
Basic | $0.30 | $0.50 | $0.38 |
Fully diluted | $0.30 | $0.50 | $0.38 |
Weighted average shares outstanding - basic | 7,306,078 | 7,483,606 | 7,486,445 |
Weighted average shares outstanding - diluted | 7,306,078 | 7,483,606 | 7,486,445 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $2,199 | $3,762 | $4,069 |
Other comprehensive income (loss), net of tax: | |||
Unrealized holding gain (loss) arising during the year, net of tax effect | 5,130 | -10,568 | 3,348 |
Unrealized gain (loss) on derivatives | 237 | 248 | 113 |
Reclassification adjustment for gains and OTTI losses included in net income | -381 | -832 | -1,104 |
Comprehensive income (loss) | $7,185 | ($7,390) | $6,426 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (USD $) | Total | Common Stock [Member] | Preferred Stock [Member] | Common Stock Warrants [Member] | Additional Paid In Capital [Member] | Retained Earnings [Member] | Treasury Stock Preferred [Member] | Treasury Stock Common [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
In Thousands, except Share data | |||||||||
Beginning balance at Dec. 31, 2011 | $118,483 | $79 | $556 | $75,967 | $39,591 | ($5,076) | $7,366 | ||
Beginning balance, Shares at Dec. 31, 2011 | 7,492,420 | 18,400 | |||||||
Net income | 4,069 | 4,069 | |||||||
Restricted stock awards | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Restricted stock awards, shares | 10,392 | ||||||||
Net change in unrealized gain (losses) on securities available for sale, net of taxes | 2,244 | 2,244 | |||||||
Net change in unrealized gain (losses) on derivatives, net of taxes | 113 | 113 | |||||||
Preferred stock dividend of 5% | -1,007 | -1,007 | |||||||
Cash dividend to common stockholders' | -602 | -602 | |||||||
Common stock repurchase | -18,400 | -18,400 | |||||||
Compensation expense, restricted stock awards | 99 | 99 | |||||||
Accretion of preferred stock discount | 222 | -222 | |||||||
Ending balance at Dec. 31, 2012 | 104,999 | 79 | 556 | 76,288 | 41,829 | -18,400 | -5,076 | 9,723 | |
Ending balance, Shares at Dec. 31, 2012 | 7,502,812 | 18,400 | |||||||
Net income | 3,762 | 3,762 | |||||||
Restricted stock awards | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Restricted stock awards, shares | 21,559 | ||||||||
Net change in unrealized gain (losses) on securities available for sale, net of taxes | -11,400 | -11,400 | |||||||
Net change in unrealized gain (losses) on derivatives, net of taxes | 248 | 248 | |||||||
Preferred stock retired | -18,400 | 18,400 | |||||||
Preferred stock retired, shares | -18,400 | ||||||||
Cash dividend to common stockholders' | -897 | -897 | |||||||
Common stock repurchase | -853 | -853 | |||||||
Common stock repurchase, shares | -76,468 | ||||||||
Cash repurchase of warrant | -257 | -556 | 299 | ||||||
Compensation expense, restricted stock awards | 115 | 115 | |||||||
Ending balance at Dec. 31, 2013 | 95,717 | 79 | 58,302 | 44,694 | -5,929 | -1,429 | |||
Ending balance, Shares at Dec. 31, 2013 | 7,447,903 | ||||||||
Net income | 2,199 | 2,199 | |||||||
Restricted stock awards | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Restricted stock awards, shares | 22,378 | ||||||||
Net change in unrealized gain (losses) on securities available for sale, net of taxes | 4,749 | 4,749 | |||||||
Net change in unrealized gain (losses) on derivatives, net of taxes | 237 | 237 | |||||||
Cash dividend to common stockholders' | -1,164 | -1,164 | |||||||
Common stock repurchase | -3,500 | -3,500 | |||||||
Common stock repurchase, shares | -298,999 | ||||||||
Compensation expense, restricted stock awards | 164 | 164 | |||||||
Ending balance at Dec. 31, 2014 | $98,402 | $79 | $58,466 | $45,729 | ($9,429) | $3,557 | |||
Ending balance, Shares at Dec. 31, 2014 | 7,171,282 |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net change in unrealized gain on securities available for sale, net of income taxes | $2,446 | $5,873 | ($1,156) |
Net change in unrealized loss on derivatives, net of income tax benefit | -122 | -128 | -58 |
Preferred stock dividend | 5.00% | ||
Cash dividend to common stockholders' | $0.16 | $0.12 | $0.08 |
Retained Earnings [Member] | |||
Preferred stock dividend | 5.00% | ||
Cash dividend to common stockholders' | $0.16 | $0.12 | $0.08 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Net change in unrealized gain on securities available for sale, net of income taxes | 2,446 | 5,873 | -1,156 |
Net change in unrealized loss on derivatives, net of income tax benefit | ($122) | ($128) | ($58) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income | $2,199 | $3,762 | $4,069 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for loan losses | -2,273 | 1,604 | 2,275 |
Depreciation | 1,336 | 1,502 | 1,587 |
Amortization of intangible assets | 97 | 162 | 227 |
Amortization of investment premiums and discounts, net | 2,076 | 2,561 | 3,327 |
Other than temporary impairment charge on available for sale securities | 400 | ||
Expense (benefit) for deferred income taxes | -231 | 566 | 487 |
Compensation expense, restricted stock grants and options | 164 | 115 | 99 |
Income from bank owned life insurance | -307 | -354 | -399 |
Gain on sale of securities available for sale | -578 | -1,661 | -1,671 |
Gain on sales of loans | -719 | -634 | -956 |
Loss on sale of commercial real estate loan | 1,781 | ||
Loss on sale of premises and equipment | 25 | 12 | 13 |
Proceeds from sales of loans | 37,300 | 17,577 | 48,705 |
(Gain) loss on sale of foreclosed assets | 208 | 140 | 266 |
Originations of loans sold | -32,835 | -16,943 | -47,749 |
(Increase) decrease in: | |||
Accrued interest receivable | 657 | 165 | 785 |
Other assets (increase) | 1,513 | 171 | -815 |
Increase (decrease) in accrued expenses and other liabilities | -277 | 170 | -911 |
Net cash (used in) provided by operating activities | 10,136 | 9,315 | 9,339 |
Cash flows from investing activities | |||
Proceeds from sales, calls and maturities of securities available for sale | 112,235 | 124,471 | 143,434 |
Purchase of securities available for sale | -91,257 | -105,605 | -114,253 |
Net (increase) decrease in loans | -1,908 | -21,630 | 26,815 |
Proceeds from sale of foreclosed assets | 1,118 | 908 | 2,738 |
Proceeds from bank owned life insurance | 211 | ||
Purchase of premises and equipment | -1,168 | -2,473 | -726 |
Net cash provided by (used in) investing activities | 19,020 | -4,329 | 58,219 |
Cash flows from financing activities: | |||
Net increase (decrease) in deposits | -31,689 | 3,132 | -40,230 |
Increase (decrease) in advance payments by borrowers for taxes and insurance | -8 | 125 | 243 |
Advances from Federal Home Loan Bank | 57,000 | 23,000 | 3,000 |
Repayment of advances from Federal Home Loan Bank | -69,780 | -19,961 | -22,578 |
Increase in repurchase agreements | 4,599 | 9,251 | 428 |
Repurchase of preferred stock | -18,400 | ||
Repurchase of common stock | -3,500 | -853 | |
Repurchase of common stock warrant | -257 | ||
Dividends paid on preferred stock | -1,007 | ||
Dividends paid on common stock | -1,187 | -751 | -598 |
Net cash provided by (used in) financing activities | -44,565 | 13,686 | -79,142 |
Increase (decrease) in cash and cash equivalents | -15,409 | 18,672 | -11,584 |
Cash and cash equivalents, beginning of period | 55,848 | 37,176 | 48,760 |
Cash and cash equivalents, end of period | 40,439 | 55,848 | 37,176 |
Supplemental disclosures of cash flow information: | |||
Interest paid | 8,977 | 10,840 | 15,331 |
Income taxes paid (refund) | -718 | -487 | 1,990 |
Supplemental disclosures of non-cash investing and financing activities: | |||
Loans charged off | 1,232 | 4,444 | 3,684 |
Loan transferred to held for sale | 6,987 | ||
Foreclosures and in substance foreclosures of loans during year | 1,579 | 1,379 | 2,285 |
Net unrealized gains (losses) on investment securities classified as available for sale | 7,195 | -17,273 | 3,400 |
Increase (decrease) in deferred tax asset related to unrealized gain (losses) on investments | -2,446 | 5,873 | -1,156 |
Dividends declared and payable | 301 | 325 | 180 |
Issue of unearned restricted stock | $260 | $232 | $74 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Accounting Policies [Abstract] | |||||
Summary of Significant Accounting Policies | -1 | Summary of Significant Accounting Policies: | |||
Nature of Operations and Customer Concentration | |||||
HopFed Bancorp, Inc. (the Corporation) is a bank holding company incorporated in the state of Delaware and headquartered in Hopkinsville, Kentucky. The Corporation’s principal business activities are conducted through it’s wholly-owned subsidiary, Heritage Bank USA, Inc. (the Bank), a Kentucky state chartered commercial bank engaged in the business of accepting deposits and providing mortgage, consumer, construction and commercial loans to the general public through its retail banking offices. The Bank’s business activities are primarily limited to western Kentucky and middle and western Tennessee. The Bank is subject to competition from other financial institutions. Deposits at the Bank are insured up to the applicable limits by the Federal Deposit Insurance Corporation (FDIC). | |||||
As part of the enactment of the Dodd-Frank Financial Reform Act of 2010, the Corporation and Bank’s former regulator, the Office of Thrift Supervision, was eliminated on July 21, 2011. Prior to June 5, 2013, the Bank was subject to comprehensive regulation, examination and supervision by the Office of Comptroller of the Currency (OCC) and the FDIC. After June 5, 2013, the Bank’s legal name was changed to Heritage Bank USA, Inc. and the Bank was granted a Kentucky commercial bank charter and is now supervised by the Kentucky Department of Financial Institutions (“KDFI”) and the Federal Deposit Insurance Corporation (“FDIC”). Supervision of the Corporation continues to be conducted by the Federal Reserve Bank of Saint Louis (“FED”). | |||||
A substantial portion of the Bank’s loans are secured by real estate in the western Kentucky and middle and west Tennessee markets. In addition, foreclosed real estate is located in this same market. Accordingly, the ultimate ability to collect on a substantial portion of the Bank’s loan portfolio and the recovery of a substantial portion of the carrying amount of foreclosed real estate is susceptible to changes in local market conditions. | |||||
Principles of Consolidation | |||||
The consolidated financial statements include the accounts of the Corporation, the Bank and its wholly-owned subsidiary Fall & Fall Insurance (collectively the Company) for all periods. The Company sold all significant assets of Fall & Fall on December 31, 2013, to an unrelated third party. Significant inter-company balances and transactions have been eliminated in consolidation. | |||||
Accounting | |||||
The accounting and reporting policies of the Company are in accordance with accounting principles generally accepted in the United States of America and conform to general practices in the banking industry. | |||||
The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity (VIE) under accounting principles generally accepted in the United States. Voting interest entities in which the total equity investment is a risk is sufficient to enable the entity to finance itself independently and provides the equity holders with the obligation to absorb losses, the right to receive residual returns and the right to make decision about the entity’s activities. The Company consolidates voting interest entities in which it has all, or at least a majority of, the voting interest. As defined in applicable accounting standards, VIE’s are entities in which it has all, or at least a majority of, the voting interest. A controlling financial interest in a VIE is present when an enterprise has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and an obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The subsidiaries, HopFed Capital Trust I and Fort Webb LP, LLC are VIEs for which the Company is not the primary beneficiary. Accordingly, these accounts are not included in the Company’s consolidated financial statements. | |||||
The Company has evaluated subsequent events for potential impact and disclosure through the issue date of these consolidated financial statements. | |||||
Estimates | |||||
In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheets and revenues and expenses for each year. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. In connection with the determination of the allowances for loan losses and foreclosed real estate, management obtains independent appraisals for significant collateral. | |||||
Cash and Cash Equivalents | |||||
Cash and cash equivalents are defined as cash on hand, amounts due on demand from commercial banks, interest-earning deposits in other financial institutions and federal funds sold with maturities of three months or less. | |||||
Securities | |||||
The Company reports debt, readily-marketable equity, mortgage-backed and mortgage related securities in one of the following categories: (i) “trading” (held for current resale) which are to be reported at fair value, with unrealized gains and losses included in earnings; and (ii) “available for sale” (all other debt, equity, mortgage-backed and mortgage related securities) which are to be reported at fair value, with unrealized gains and losses reported net of tax as a separate component of stockholders’ equity. At the time of new security purchases, a determination is made as to the appropriate classification. Realized and unrealized gains and losses on trading securities are included in net income. Unrealized gains and losses on securities available for sale are recognized as direct increases or decreases in stockholders’ equity, net of any tax effect. Cost of securities sold is recognized using the specific identification method. | |||||
Interest income on securities is recognized as earned. The Company purchases many agency bonds at either a premium or discount to its par value. Premiums and discounts on agency bonds are amortized using the net interest method. For callable bonds purchased at a premium, the premium is amortized to the first call date. If the bond is not called on that date, the premium is fully amortized and the Company recognizes an increase in the net yield of the investment. The Company has determined that callable bonds purchased at a premium have a high likelihood of being called, and the decision to amortize premiums to their first call is a more conservative method of recognizing income and any variance from amortizing to contractual maturity is not material to the consolidated financial statements. For agency bonds purchased at a discount, the discount is accreted to the final maturity date. For callable bonds purchased at discount and called before maturity, the Company recognizes a gain on the sale of securities. The Company amortizes premiums and accretes discounts on mortgage back securities and collateralized mortgage obligations based on the securities three month average prepayment speed. | |||||
Other Than Temporary Impairment | |||||
A decline in the fair value of any available-for-sale security below cost that is deemed to be other-than-temporary results in a reduction in the carrying amount to fair value. To determine whether impairment is other-than-temporary, management considers whether the entity expects to recover the entire amortized cost basis of the security by reviewing the present value of the future cash flows associated with the security. The shortfall of the present value of the cash flows expected to be collected in relation to the amortized cost basis is referred to as a credit loss. If a credit loss is identified, management then considers whether it is more-likely-than-not that the Company will be required to sell the security prior to recovery. If management concludes that it is not more-likely-than-not that it will be required to sell the security, then the security is not other-than-temporarily impaired and the shortfall is recorded as a component of equity. If the security is determined to be other-than-temporarily impaired, the credit loss is recognized as a charge to earnings and a new cost basis for the security is established. | |||||
Other Securities | |||||
Other securities which are not actively traded and may be restricted, such as Federal Home Loan Bank (FHLB) stock are recognized at cost, as the value is not considered impaired. | |||||
Loans Receivable | |||||
Loans receivable are stated at unpaid principal balances, less the allowance for loan losses and deferred loan cost. The Statement of Financial Accounting Standards ASC 310-20, Nonrefundable Fees and Other Costs Associated with Originating or Acquiring Loans and Initial Direct Costs of Leases, requires the recognition of loan origination fee income over the life of the loan and the recognition of certain direct loan origination costs over the life of the loan. | |||||
Uncollectible interest on loans that are contractually past due is charged off, or an allowance is established based on management’s periodic evaluation. The Company charges off loans after, in management’s opinion, the collection of all or a large portion of the principal or interest is not collectable. The allowance is established by a charge to interest income equal to all interest previously accrued, and income is subsequently recognized only to the extent that cash payments are received while the loan is classified as non-accrual, when the loan is ninety days past due. Loans may be returned to accrual status when all principal and interest amounts contractually due (including arrearages) are reasonably assured of repayment within an acceptable period of time, and there is a sustained period of repayment performance by the borrower in accordance with the contractual terms of interest and principal. | |||||
The Company provides an allowance for loan losses and includes in operating expenses a provision for loan losses determined by management. Management’s periodic evaluation of the adequacy of the allowance is based on the Company’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, and current economic conditions. Management’s estimate of the adequacy of the allowance for loan loss can be classified as either a reserve for currently classified loans or estimates of future losses in the current loan portfolio. | |||||
Loans are considered to be impaired when, in management’s judgment, principal or interest is not collectible according to the contractual terms of the loan agreement. When conducting loan evaluations, management considers various factors such as historical loan performance, the financial condition of the borrower and adequacy of collateral to determine if a loan is impaired. Impaired loans and loans classified as Troubled Debt Restructurings (“TDR’s”) may be classified as either substandard or doubtful and reserved for based on individual loans risk for loss. Loans not considered impaired may be classified as either special mention or watch and may have an allowance established for it. Typically, unimpaired classified loans exhibit some form of weakness in either industry trends, collateral, or cash flow that result in a default risk greater than that of the Company’s typical loan. All classified amounts include all unpaid interest and fees as well as the principal balance outstanding. | |||||
The measurement of impaired loans generally may be based on the present value of future cash flows discounted at the historical effective interest rate. However, the majority of the Company’s problem loans become collateral dependent at the time they are judged to be impaired. Therefore, the measurement of impaired requires the Company to obtain a new appraisal to obtain the fair value of the collateral. The appraised value is then discounted to an estimated of the Company’s net realizable value, reducing the appraised value by the amount of holding and selling cost. When the measured amount of an impaired loan is less than the recorded investment in the loan, the impairment is recorded as a charge to income and a valuation allowance, which is included as a component of the allowance for loan losses. For loans not individually evaluated, management considers the Company’s recent charge off history, the Company’s current past due and non-accrual trends, banking industry trends and both local and national economic conditions when making an estimate as to the amount to reserve for losses. Management believes it has established the allowance in accordance with accounting principles generally accepted in the United States of America and has taken into account the views of its regulators and the current economic environment. | |||||
Fixed Rate Mortgage Originations | |||||
The Company operates a mortgage division that originates mortgage loans in the name of assorted investors, including Federal Home Loan Mortgage Corporation (Freddie Mac). Originations for Freddie Mac are sold through the Bank while originations to other investors are processed for a fee. On a limited basis, loans sold to Freddie Mac may result in the Bank retaining loan servicing rights. In recent years, customers have chosen lower origination rates over having their loan locally serviced; thereby limiting the amount of new loans sold with servicing retained. At December 31, 2014, the Bank maintained a servicing portfolio of one to four family real estate loans of approximately $25.0 million. For the years ended December 31, 2014, December 31, 2013, and December 31, 2012, the Bank has reviewed the value of the servicing asset as well as the operational cost associated with servicing the portfolio. The Bank has determined that the values of its servicing rights are not material to the Company’s consolidated financial statements. | |||||
Real Estate and Other Assets Owned | |||||
Assets acquired through, or in lieu of, loan foreclosure or repossession carried at the lower of cost or fair value less selling expenses. Costs of improving the assets are capitalized, whereas costs relating to holding the property are expensed. Management conducts periodic valuations (no less than annually) and any adjustments to value are recognized in the current period’s operations. | |||||
Brokered Deposits | |||||
The Company may choose to attract deposits from several sources, including using outside brokers to assist in obtaining time deposits using national distribution channels. Brokered deposits offer the Company an alternative to Federal Home Loan Bank advances and local retail time deposits. | |||||
Repurchase Agreements | |||||
The Company sells investments from its portfolio to business and municipal customers with a written agreement to repurchase those investments on the next business day. The repurchase product gives business customers the opportunity to earn income on liquid cash reserves. These funds are overnight borrowings of the Company secured by Company assets and are not FDIC insured. | |||||
Revenue Recognition | |||||
Mortgage loans held for sale are generally delivered to secondary market investors under best efforts sales commitments entered into prior to the closing of the individual loan. Loan sales and related gains or losses are recognized at settlement. Loan fees earned for the servicing of secondary market loans are recognized as earned. | |||||
Interest income on loans receivable is reported on the interest method. Interest income is not reported when full loan repayment is in doubt, typically when the loan is impaired, placed in non-accrual status, or payments are past due more than 90 days. Interest earned as reported as income is reversed on any loans classified as non-accrual or past due more than 90 days. Interest may continue to accrue on loans over 90 days past due if they are well secured and in the process of collection. | |||||
Income Taxes | |||||
Income taxes are accounted for through the use of the asset and liability method. Under the asset and liability method, deferred taxes are recognized for the tax consequences of temporary differences by applying enacted statutory rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The effect on deferred taxes of a change in tax rates would be recognized in income in the period that includes the enactment date. The Company files its federal and Kentucky income tax returns as well as its Kentucky and Tennessee franchise and excise tax returns on a consolidated basis with its subsidiaries. All taxes are accrued on a separate entity basis. | |||||
Operating Segments | |||||
The Company’s continuing operations include one primary segment, retail banking. The retail banking segment involves the origination of commercial, residential and consumer loans as well as the collections of deposits in eighteen branch offices. | |||||
Premises and Equipment | |||||
Land, land improvements, buildings, and furniture and equipment are carried at cost, less accumulated depreciation and amortization. Buildings and land improvements are depreciated generally by the straight-line method, and furniture and equipment are depreciated under various methods over the estimated useful lives of the assets. The Company capitalizes interest expense on construction in process at a rate equal to the Company’s cost of funds. The estimated useful lives used to compute depreciation are as follows: | |||||
Land improvements | 5-15 years | ||||
Buildings | 40 years | ||||
Furniture and equipment | 5-15 years | ||||
Intangible Assets | |||||
The core deposit intangible asset related to the middle Tennessee acquisition of June 2006 is amortized using the sum of the year’s digits method over an estimated period of nine years. The Company periodically evaluates the recoverability of the intangible assets and takes into account events or circumstances that warrant a revised estimate of the useful lives or indicates that impairment exists. | |||||
Bank Owned Life Insurance | |||||
Bank owned life insurance policies (BOLI) are recorded at the cash surrender value or the amount to be realized upon current redemption. The realization of the redemption value is evaluated for each insuring entity that holds insurance contracts annually by management. | |||||
Advertising | |||||
The Company expenses the production cost of advertising as incurred. | |||||
Financial Instruments | |||||
The Company has entered into off-balance-sheet financial instruments consisting of commitments to extend credit and commercial letters of credit. Such financial instruments are recorded in the consolidated financial statements when they are funded or related fees are incurred or received. | |||||
Derivative Instruments | |||||
Under guidelines ASC 815, Accounting for Derivative Instruments and Hedging Activities, as amended, all derivative instruments are required to be carried at fair value on the consolidated balance sheet. ASC 815 provides special hedge accounting provisions, which permit the change in fair value of the hedge item related to the risk being hedged to be recognized in earnings in the same period and in the same income statement line as the change in the fair value of the derivative. | |||||
A derivative instrument designated in a hedge relationship to mitigate exposure to changes in the fair value of an asset, liability or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges under ASC 815. Derivative instruments designated in a hedge relationship to mitigate exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Cash value hedges are accounted for by recording the fair value of the derivative instrument and the fair value related to the risk being hedged of the hedged asset or liability on the consolidated balance sheet with corresponding offsets recorded in the consolidated balance sheet. The adjustment to the hedged asset or liability is included in the basis of the hedged item, while the fair value of the derivative is recorded as a freestanding asset or liability. Actual cash receipts or payments and related amounts accrued during the period on derivatives included in a fair value hedge relationship are recorded as adjustments to the income or expense recorded on the hedged asset or liability. | |||||
Under both the fair value and cash flow hedge methods, derivative gains and losses not effective in hedging the change in fair value or expected cash flows of the hedged item are recognized immediately in the income statement. At the hedge’s inception and at least quarterly thereafter, a formal assessment is performed to determine whether changes in the fair values or cash flows of the derivative instrument has been highly effective in offsetting changes in the fair values or cash flows of the hedged items and whether they are expected to be highly effective in the future. If it is determined a derivative instrument has not been, or will not continue to be highly effective as a hedge, hedged accounting is discontinued. ASC 815 basis adjustments recorded on hedged assets and liabilities are amortized over the remaining life of the hedged item beginning no later than when hedge accounting ceases. There were no fair value hedging gains or losses, as a result of hedge ineffectiveness, recognized for the years ended December 31, 2014, 2013 and 2012. | |||||
Fair Values of Financial Instruments | |||||
ASC 825, Disclosures about Fair Value of Financial Instruments, requires disclosure of fair value information about financial instruments, whether or not recognized in the consolidated balance sheets for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments. Fair value estimates are made at a point in time, based on relevant market information and information about the financial instrument. Accordingly, such estimates involve uncertainties and matters of judgment and therefore cannot be determined with precision. ASC 825 excludes certain financial instruments and all non-financial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. | |||||
The following are the more significant methods and assumptions used by the Company in estimating its fair value disclosures for financial instruments: | |||||
Cash and cash equivalents | |||||
The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents approximate those assets’ fair values, because they mature within 90 days or less and do not present credit risk concerns. | |||||
Interest earning deposits | |||||
The carrying amounts reported in the consolidated balance sheets for interest earning deposits approximate those assets’ fair values, because they are considered overnight deposits and may be withdrawn at any time without penalty and do not present credit risk concerns. | |||||
Available-for-sale securities | |||||
Fair values for investment securities available-for-sale are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments provided by a third party pricing service. The Company reviews all securities in which the book value is greater than the market value for impairment that is other than temporary. For securities deemed to be other than temporarily impaired, the Company reduces the book value of the security to its market value by recognizing an impairment charge on its income statement. | |||||
Loans receivable | |||||
The fair values for of fixed-rate loans and variable rate loans that re-price on an infrequent basis is estimated using discounted cash flow analysis which considers future re-pricing dates and estimated repayment dates, and further using interest rates currently being offered for loans of similar type, terms to borrowers of similar credit quality. Loan fair value estimates include judgments regarding future expected loss experience and risk characteristics. The estimated fair value of variable-rate loans that re-price frequently and with have no significant change in credit risk is approximately the carrying value of the loan. | |||||
Letters of credit | |||||
The fair value of standby letters of credit is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements, the likelihood of the counter parties drawing on such financial instruments and the present creditworthiness of such counter parties. Such commitments have been made on terms which are competitive in the markets in which the Company operates, thus, the fair value of standby letters of credit equals the carrying value for the purposes of this disclosure. | |||||
Accrued interest receivable | |||||
Fair value is estimated to approximate the carrying amount because such amounts are expected to be received within 90 days or less and any credit concerns have been previously considered in the carrying value. | |||||
Repurchase agreements | |||||
Overnight repurchase agreements have a fair value at book, given that they mature overnight. The fair values for of longer date repurchase agreements is estimated using discounted cash flow analysis which considers the current market pricing for repurchase agreements of similar final maturities and collateral requirements. | |||||
Bank owned life insurance | |||||
The fair value of bank owned life insurance is the cash surrender value of the policy less redemption charges. By surrendering the policy, the Company is also subject to federal income taxes on all earnings previously recognized. | |||||
Deposits | |||||
The fair values disclosed for deposits with no stated maturity such as demand deposits, interest-bearing checking accounts and savings accounts are, by definition, equal to the amount payable on demand at the reporting date (that is, their carrying amounts). The fair values for certificates of deposit and other fixed maturity time deposits are estimated using a discounted cash flow calculation that applies interest rates currently being offered on such type accounts or similar accounts to a schedule of aggregated contractual maturities or similar maturities on such time deposits. | |||||
Advances from the Federal Home Loan Bank (FHLB) | |||||
The fair value of these advances is estimated by discounting the future cash flows of these advances using the current rates at which similar advances or similar financial instruments could be obtained. | |||||
FHLB stock | |||||
The fair value of FHLB stock is recognized at cost. | |||||
Subordinated debentures | |||||
The book value of subordinated debentures is cost. The subordinated debentures re-price quarterly at a rate equal to three month libor plus 3.10%. | |||||
Off-Balance-Sheet Instruments | |||||
Off-balance-sheet lending commitments approximate their fair values due to the short period of time before the commitment expires. | |||||
Dividend Restrictions | |||||
The Company is not permitted to pay a dividend to common shareholders if it fails to make a quarterly interest payment to the holders of the Company’s subordinated debentures. Furthermore, the Bank may be restricted in the payment of dividends to the Corporation by the KDFI or FDIC. Any restrictions imposed by either regulator would effectively limit the Company’s ability to pay a dividend to its common stockholders as discussed in Note 17. At December 31, 2013, there were no such restrictions. At December 31, 2014, the Corporation has $2.9 million in cash on hand available to pay common dividends and repurchase common share as outlined in Note 20. At December 31, 2014, the Bank may not pay an additional cash dividend to the Company without regulatory approval. | |||||
Earnings Per Share | |||||
Earnings per share (EPS) consists of two separate components, basic EPS and diluted EPS. Basic EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for each period presented. Diluted EPS is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding plus dilutive common stock equivalents (CSE). CSE consists of dilutive stock options granted through the Company’s stock option plan. Restricted stock awards represent future compensation expense and are dilutive. Common stock equivalents which are considered anti-dilutive are not included for the purposes of this calculation. Common stock warrants issued in December 2008 and all stock options outstanding are currently anti-dilutive and are not included for the purposes of this calculation. | |||||
Both EPS and diluted EPS are reduced by the amount of dividend payments on preferred stock and the accretion of the discount on the preferred stock. The Company repurchased all preferred shares in December of 2012. The effect of the Company’s dividend payment on preferred stock and accretion of the preferred stock is as provided for the year ended December 31, 2012: | |||||
2012 | |||||
Dividend on preferred shares | $ | 1,006,886 | |||
Accretion dividend on preferred shares | 222,360 | ||||
Total cost of preferred stock | $ | 1,229,246 | |||
Reduction in earnings per share to common stockholders: | |||||
Basic | $ | 0.16 | |||
Fully diluted | $ | 0.16 | |||
Weighted average shares outstanding -basic | 7,486,445 | ||||
Weighted average shares outstanding -diluted | 7,486,445 | ||||
Stock Compensation | |||||
The Company utilized the Black-Sholes valuation model to determine the fair value of stock options on the date of grant. The model derives the fair value of stock options based on certain assumptions related to the expected stock prices volatility, expected option life, risk-free rate of return and the dividend yield of the stock. The expected life of options granted is estimated based on historical employee exercise behavior. The risk free rate of return coincides with the expected life of the options and is based on the ten year Treasury note rate at the time the options are issued. The historical volatility levels of the Company’s common stock are used to estimate the expected stock price volatility. The set dividend yield is used to estimate the expected dividend yield of the stock. | |||||
Effect of New Accounting Pronouncements | |||||
In January 2014, the FASB issued ASU No. 2014-04, Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. These amendments are intended to clarify when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan should be derecognized and the real estate recognized. The amendments clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either: (1) the creditor obtaining legal title to the residential real estate property upon completion of residential foreclosure, or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additional disclosures about such activities are required by these amendments. The amendments in this ASU become effective for public companies for annual periods and interim periods within those annual periods beginning after December 15, 2014, and early adoption is permitted. The Company is assessing the impact that these amendments will have on its financial position and results of operations, but does not currently anticipate that it will have a material impact. | |||||
On June 12, 2014, the FASB issued ASU 2014-11, which makes limited amendments to the guidance in ASC 860 on accounting for certain repurchase agreements (“repos”). ASU 2014-11 requires entities to account for repurchase-to-maturity transactions as secured borrowings (rather than as sales with forward repurchase agreements), (2) eliminates accounting guidance on linked repurchase financing transactions, and (3) expands disclosure requirements related to certain transfers of financial assets that are accounted for as sales and certain transfers (specifically, repos, securities lending transactions, and repurchase-to-maturity transactions) accounted for as secured borrowings. | |||||
ASU 2014-11 also amends ASC 860 to clarify that repos and securities lending transactions that do not meet all of the de-recognition criteria in ASC 860-10-40-5 should be accounted for as secured borrowings. In addition, the ASU provides examples of repurchase and securities lending arrangements that illustrate whether a transferor has maintained effective control over the transferred financial assets. For public business entities, the accounting changes are effective for the first interim or annual period beginning after December 15, 2014. The Company is assessing the impact that these amendments will have on its financial position and results of operations. | |||||
ASU 2013-10, “Derivatives and Hedging (Topic 815) – Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes.” ASU 2013-10 permits the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) to be used as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815, in addition to interest rates on direct Treasury obligations of the U.S. government and the London Interbank Offered Rate (“LIBOR”). ASU 2013-10 became effective for qualifying new or re-designated hedging relationships entered into on or after July 17, 2013, and did not have a significant impact on the Company’s consolidated financial position or results of operations. | |||||
ASU 2015-01, “Income Statement—Extraordinary and Unusual Items (Subtopic 225-20) – Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” ASU 2015-01 eliminates from U.S. GAAP the concept of extraordinary items, which, among other things, required an entity to segregate extraordinary items considered to be unusual and infrequent from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. ASU 2015-01 is effective for the Corporation beginning January 1, 2016, though early adoption is permitted. ASU 2015-01 is not expected to have a significant impact on the Company’s consolidated financial position or results of operations. | |||||
Other accounting standards that have been issued or proposed 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 or cash flows. | |||||
Reclassifications | |||||
Certain items in prior financial statements have been reclassified to conform to the current presentation. |
Securities
Securities | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||
Securities | -2 | Securities: | |||||||||||||||||||||||
Securities, which consist of debt and equity investments, have been classified in the consolidated balance sheets according to management’s intent. The carrying amount of securities and their estimated fair values follow: | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Gains | Losses | Value | |||||||||||||||||||||||
Restricted: | |||||||||||||||||||||||||
FHLB stock | $ | 4,428 | — | — | 4,428 | ||||||||||||||||||||
Available for Sale: | |||||||||||||||||||||||||
U.S. Treasury securities | $ | 3,977 | 3 | — | 3,980 | ||||||||||||||||||||
U.S. Agency securities: | 101,654 | 2,125 | (527 | ) | 103,252 | ||||||||||||||||||||
Tax free municipal bonds | 57,399 | 3,814 | (166 | ) | 61,047 | ||||||||||||||||||||
Taxable municipal bonds | 11,871 | 235 | (63 | ) | 12,043 | ||||||||||||||||||||
Trust preferred securities | 1,600 | — | (111 | ) | 1,489 | ||||||||||||||||||||
Commercial bonds | 2,000 | 7 | — | 2,007 | |||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||
GNMA | 27,535 | 670 | (122 | ) | 28,083 | ||||||||||||||||||||
FNMA | 50,617 | 694 | (536 | ) | 50,775 | ||||||||||||||||||||
FHLMC | 3,276 | 38 | — | 3,314 | |||||||||||||||||||||
SLMA CMOs | 9,895 | — | (252 | ) | 9,643 | ||||||||||||||||||||
AGENCY CMOs | 28,024 | 176 | (205 | ) | 27,995 | ||||||||||||||||||||
$ | 297,848 | 7,762 | (1,982 | ) | 303,628 | ||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Gains | Losses | Value | |||||||||||||||||||||||
Restricted: | |||||||||||||||||||||||||
FHLB stock | $ | 4,428 | — | — | 4,428 | ||||||||||||||||||||
Available for Sale: | |||||||||||||||||||||||||
U.S. government and agency securities: | $ | 120,608 | 1,856 | (2,441 | ) | 120,023 | |||||||||||||||||||
Tax free municipal bonds | 64,291 | 2,066 | (898 | ) | 65,459 | ||||||||||||||||||||
Taxable municipal bonds | 18,337 | 458 | (738 | ) | 18,057 | ||||||||||||||||||||
Trust preferred securities | 1,600 | — | (111 | ) | 1,489 | ||||||||||||||||||||
Commercial bonds | 2,000 | — | (16 | ) | 1,984 | ||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||
GNMA | 17,327 | 590 | (142 | ) | 17,775 | ||||||||||||||||||||
FNMA | 70,104 | 526 | (1,938 | ) | 68,692 | ||||||||||||||||||||
FHLMC | 1,301 | 35 | — | 1,336 | |||||||||||||||||||||
SLMA CMOs | 8,459 | — | (374 | ) | 8,085 | ||||||||||||||||||||
AGENCY CMOs | 16,296 | 134 | (420 | ) | 16,010 | ||||||||||||||||||||
$ | 320,323 | 5,665 | (7,078 | ) | 318,910 | ||||||||||||||||||||
The scheduled maturities of debt securities available for sale at December 31, 2014, were as follows: | |||||||||||||||||||||||||
Amortized | Estimated | ||||||||||||||||||||||||
Cost | Fair | ||||||||||||||||||||||||
Value | |||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||
Due within one year | $ | 4,830 | 4,927 | ||||||||||||||||||||||
Due in one to five years | 21,564 | 21,818 | |||||||||||||||||||||||
Due in five to ten years | 41,683 | 42,613 | |||||||||||||||||||||||
Due after ten years | 33,119 | 35,380 | |||||||||||||||||||||||
101,196 | 104,738 | ||||||||||||||||||||||||
Amortizing agency bonds | 77,305 | 79,080 | |||||||||||||||||||||||
Mortgage-backed securities | 119,347 | 119,810 | |||||||||||||||||||||||
Total unrestricted securities available for sale | $ | 297,848 | 303,628 | ||||||||||||||||||||||
The scheduled maturities of debt securities available for sale at December 31, 2013, were as follows: | |||||||||||||||||||||||||
2013 | Amortized | Estimated | |||||||||||||||||||||||
Cost | Fair | ||||||||||||||||||||||||
Value | |||||||||||||||||||||||||
Due within one year | $ | 501 | 505 | ||||||||||||||||||||||
Due in one to five years | 12,630 | 12,954 | |||||||||||||||||||||||
Due in five to ten years | 38,192 | 37,364 | |||||||||||||||||||||||
Due after ten years | 49,284 | 49,314 | |||||||||||||||||||||||
100,607 | 100,137 | ||||||||||||||||||||||||
Amortizing agency bonds | 106,229 | 106,875 | |||||||||||||||||||||||
Mortgage-backed securities | 113,487 | 111,898 | |||||||||||||||||||||||
Total unrestricted securities available for sale | $ | 320,323 | 318,910 | ||||||||||||||||||||||
The FHLB stock is an equity interest in the Federal Home Loan Bank. FHLB stock does not have a readily determinable fair value because ownership is restricted and a market is lacking. FHLB stock is classified as a restricted investment security, carried at cost and evaluated for impairment. | |||||||||||||||||||||||||
The estimated fair value and unrealized loss amounts of temporarily impaired investments as of December 31, 2014, are as follows: | |||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||
December 31, 2014 | Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | |||||||||||||||||||
Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||
U.S. government and agency securities: | |||||||||||||||||||||||||
Agency debt securities | $ | 14,021 | (20 | ) | 29,156 | (507 | ) | 43,177 | (527 | ) | |||||||||||||||
Taxable municipals | — | — | 4,785 | (63 | ) | 4,785 | (63 | ) | |||||||||||||||||
Tax free municipals | — | — | 6,647 | (166 | ) | 6,647 | (166 | ) | |||||||||||||||||
Trust preferred securities | — | — | 1,489 | (111 | ) | 1,489 | (111 | ) | |||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||
GNMA | 12,568 | (108 | ) | 2,895 | (14 | ) | 15,463 | (122 | ) | ||||||||||||||||
FNMA | — | — | 18,927 | (536 | ) | 18,927 | (536 | ) | |||||||||||||||||
SLMA CMOs | 1,923 | (14 | ) | 7,720 | (238 | ) | 9,643 | (252 | ) | ||||||||||||||||
AGENCY CMOs | 9,545 | (91 | ) | 7,685 | (114 | ) | 17,230 | (205 | ) | ||||||||||||||||
Total Available for Sale | $ | 38,057 | (233 | ) | 79,304 | (1,749 | ) | 117,361 | (1,982 | ) | |||||||||||||||
The estimated fair value and unrealized loss amounts of temporarily impaired investments as of December 31, 2013, are as follows: | |||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||
December 31, 2013 | Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | |||||||||||||||||||
Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||
U.S. government and agency securities: | |||||||||||||||||||||||||
Agency debt securities | $ | 44,968 | (2,107 | ) | 6,793 | (334 | ) | 51,761 | (2,441 | ) | |||||||||||||||
Taxable municipals | 7,903 | (660 | ) | 797 | (78 | ) | 8,700 | (738 | ) | ||||||||||||||||
Tax free municipals | 9,848 | (692 | ) | 3,720 | (206 | ) | 13,568 | (898 | ) | ||||||||||||||||
Trust preferred securities | — | — | 1,489 | (111 | ) | 1,489 | (111 | ) | |||||||||||||||||
Commercial bonds | 1,984 | (16 | ) | — | — | 1,984 | (16 | ) | |||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||
GNMA | 5,320 | (128 | ) | 1,551 | (14 | ) | 6,871 | (142 | ) | ||||||||||||||||
FNMA | 42,464 | (1,626 | ) | 6,746 | (312 | ) | 49,210 | (1,938 | ) | ||||||||||||||||
NON-AGENCY CMOs | 5,224 | (374 | ) | — | — | 5,224 | (374 | ) | |||||||||||||||||
AGENCY CMOs | 7,031 | (223 | ) | 1,844 | (197 | ) | 8,875 | (420 | ) | ||||||||||||||||
Total Available for Sale | $ | 124,742 | (5,826 | ) | 22,940 | (1,252 | ) | 147,682 | (7,078 | ) | |||||||||||||||
-2 | Securities: (Continued) | ||||||||||||||||||||||||
Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluations. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. | |||||||||||||||||||||||||
At December 31, 2014, the Company has 67 securities with unrealized losses. With the exception of a subordinated debenture discussed below, Management believes these unrealized losses relate to changes in interest rates and not credit quality. Management also believes the Company has the ability to hold these securities until maturity or for the foreseeable future and therefore no declines are deemed to be other than temporary. | |||||||||||||||||||||||||
The carrying value of the Company’s investment securities may decline in the future if the financial condition of issuers deteriorates and management determines it is probable that the Company will not recover the entire amortized cost bases of the securities. As a result, there is a risk that other-than-temporary impairment charges may occur in the future. | |||||||||||||||||||||||||
In June of 2008, the Company purchased $2.0 million par value of a private placement subordinated debenture issued by First Financial Services Corporation (“FFKY”), the holding Company for First Federal Savings Bank (“First Fed”). The debenture is a thirty year security with a coupon rate of 8.00%. FFKY is a NASDAQ listed commercial bank holding company located in Elizabethtown, Kentucky. In October of 2010, FFKY informed the owners of its subordinated trust, including the Company, that it was deferring the dividend payments for up to five years as prescribed by the trust. | |||||||||||||||||||||||||
At September 30, 2013, the Company recognized a $400,000 impairment charge due against this security. The impairment charge was recognized due to management’s financial analysis of the issuing institution and our opinion that it would be unable to make dividend payments after the five year extension expired. The current par value of the security is $1.6 million, which reflects the impairment charge taken. At December 31, 2014, the Company has determined that our Company’s investment in FFKY remained impaired. | |||||||||||||||||||||||||
-2 | Securities: (Continued) | ||||||||||||||||||||||||
During 2014, the Company sold investment securities classified as available for sale for proceeds of $75.3 million resulting in gross gains of $788,000 and gross losses of $210,000. During 2013, the Company sold investment securities classified as available for sale for proceeds of $68.5 million resulting in gross gains of $1.7 million and gross losses of $33,000. During 2012, the Company sold investment securities classified as available for sale for proceeds of $69.0 million resulting in gross gains of $1.8 million and gross losses of $115,000. | |||||||||||||||||||||||||
As part of its normal course of business, the Bank holds significant balances of municipal and other deposits that require the Bank to pledge investment instruments as collateral. At December 31, 2014, the Bank pledged investments with a book value of $181.8 million and a market value of approximately $192.8 million to various municipal entities as required by law. In addition, the Bank has provided $11.0 million of letters of credit issued by the Federal Home Loan Bank of Cincinnati to collateralize municipal deposits. The collateral for these letters of credit are the Bank’s one to four family loan portfolio. |
Loans_Receivable_Net
Loans Receivable, Net | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||
Loans Receivable, Net | -3 | Loans Receivable, Net: | |||||||||||||||||||||||||||
The components of loans receivable in the consolidated balance sheets as of December 31, 2014, and December 31, 2013, were as follows: | |||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||
Amount | Percent | Amount | Percent | ||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||
One-to-four family (closed end) first mortgages | $ | 150,551 | 27.6 | % | 155,252 | 28.1 | % | ||||||||||||||||||||||
Second mortgages (closed end) | 2,102 | 0.4 | % | 3,248 | 0.6 | % | |||||||||||||||||||||||
Home equity lines of credit | 34,238 | 6.3 | % | 34,103 | 6.2 | % | |||||||||||||||||||||||
Multi-family | 25,991 | 4.8 | % | 29,736 | 5.4 | % | |||||||||||||||||||||||
Construction | 24,241 | 4.4 | % | 10,618 | 1.9 | % | |||||||||||||||||||||||
Land | 26,654 | 4.9 | % | 34,681 | 6.3 | % | |||||||||||||||||||||||
Farmland | 42,874 | 7.8 | % | 51,868 | 9.4 | % | |||||||||||||||||||||||
Non-residential real estate | 150,596 | 27.6 | % | 157,692 | 28.5 | % | |||||||||||||||||||||||
Total mortgage loans | 457,247 | 83.8 | % | 477,198 | 86.4 | % | |||||||||||||||||||||||
Consumer loans | 14,438 | 2.6 | % | 11,167 | 2 | % | |||||||||||||||||||||||
Commercial loans | 74,154 | 13.6 | % | 64,041 | 11.6 | % | |||||||||||||||||||||||
Total other loans | 88,592 | 16.2 | % | 75,208 | 13.6 | % | |||||||||||||||||||||||
Total loans, gross | 545,839 | 100 | % | 552,406 | 100 | % | |||||||||||||||||||||||
Deferred loan cost, net of fees | (286 | ) | (92 | ) | |||||||||||||||||||||||||
Less allowance for loan losses | (6,289 | ) | (8,682 | ) | |||||||||||||||||||||||||
Total loans | $ | 539,264 | 543,632 | ||||||||||||||||||||||||||
The Company continues to reduce its land development loan portfolio exposure. The land development portfolio continues to be plagued by higher levels of loan losses, adverse risk classifications and regulatory scrutiny. At December 31, 2014, the Company has approximately $26.7 million land development loans, with $10.8 million, or 40.6% of the land development portfolio, being classified as substandard. At December 31, 2014, the Company has $37.4 million of total loans classified as substandard. | |||||||||||||||||||||||||||||
Loans serviced for the benefit of others totaled approximately $30.4 million, $32.6 million and $40.3 million at December 31, 2014, 2013 and 2012, respectively. At December 31, 2014, approximately $25.0 million of the $30.4 million in loans serviced by the Company are serviced for the benefit of Freddie Mac. Servicing loans for others generally consists of collecting mortgage payments, maintaining escrow amounts, disbursing payments to investors and foreclosure processing. The servicing rights associated with these loans are not material to the Company’s consolidated financial statements. Qualified one-to-four family first mortgage loans, non-residential real estate loans, multi-family loans and commercial real estate loans are pledged to the Federal Home Loan Bank of Cincinnati as discussed in Note 7. | |||||||||||||||||||||||||||||
The Company originates most fixed rate loans for immediate sale to FHLMC or other investors. Generally, the sale of such loans is arranged shortly after the loan application is tentatively approved through commitments. | |||||||||||||||||||||||||||||
The Company conducts annual reviews on all loan relationships above $1.0 million to ascertain the borrowers continued ability to service their debt as agreed. In addition to the credit relationships mentioned above, management may classify any credit relationship once it becomes aware of adverse credit trends for that customer. Typically, the annual review consists of updated financial statements for borrowers and any guarantors, a review of the borrower’s credit history with the Company and other creditors, and current income tax information. As a result of this review, management will classify loans based on their credit risk. Additionally, the Company provides a risk grade for all loans past due more than sixty days. | |||||||||||||||||||||||||||||
The Company uses the following risk definitions for risk grades: | |||||||||||||||||||||||||||||
Satisfactory loans of average strength having some deficiency or vulnerability to changing economic or industry conditions. These customers should have reasonable amount of capital and operating ratios. Secured loans may lack in margin or liquidity. Loans to individuals, perhaps supported in dollars of net worth, but with supporting assets may be difficult to liquidate. | |||||||||||||||||||||||||||||
Watch loans are acceptable credits: (1) that need continual monitoring, such as out-of territory or asset-based loans (since the Company does not have an asset-based lending department), or (2) with a marginal risk level to business concerns and individuals that; (a) have exhibited favorable performance in the past, though currently experiencing negative trends; (b) are in an industry that is experiencing volatility or is declining, and their performance is less than industry norms; and (c) are experiencing unfavorable trends in their financial position, such as one-time net losses or declines in asset values. These marginal borrowers may have early warning signs of problems such as occasional overdrafts and minor delinquency. | |||||||||||||||||||||||||||||
If considered marginal, a loan would be a “watch” until financial data demonstrated improved performance or further deterioration to a “substandard” grade usually within a 12-month period. In the table on page 38, Watch loans are included with satisfactory loans and classified as Pass. | |||||||||||||||||||||||||||||
Other Loans Especially Mentioned are currently protected but are potentially weak. These loans constitute an undue and unwarranted credit risk but not to the point of justifying a substandard classification. The credit risk may be relatively minor yet constitutes an unwarranted risk in light of the circumstances surrounding a specific loan. These credit weaknesses, if not checked or corrected, will weaken the loan or inadequately protect the Bank’s credit position at some future date. | |||||||||||||||||||||||||||||
A Substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. The loans are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. This does not imply ultimate loss of the principal, but may involve burdensome administrative expenses and the accompanying cost to carry the credit. Examples of substandard loans include those to borrowers with insufficient or negative cash flow, negative net worth coupled with inadequate guarantor support, inadequate working capital, and/or significantly past-due loans and overdrafts. | |||||||||||||||||||||||||||||
A loan classified Doubtful has all the weaknesses inherent in a substandard credit except that the weaknesses make collection or liquidation in full (on the basis of currently existing facts, conditions, and values) highly questionable and improbable. The possibility of loss is extremely high, but because of certain pending factors charge-off is deferred until its more exact status may be determined. Pending factors include proposed merger, acquisition, or liquidation procedures, capital injection, perfecting liens on additional collateral, and refinancing plans. The doubtful classification is applied to that portion of the credit in which the full collection of principal and interest is questionable. | |||||||||||||||||||||||||||||
A loan is considered to be impaired when management determines that it is probable that the Company will be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan agreement. The value of individually impaired loans is measured based on the present value of expected payments or using the fair value of the collateral if the loan is collateral dependent. Currently, it is management’s practice to classify all substandard or doubtful loans as impaired. | |||||||||||||||||||||||||||||
Loan Origination/Risk Management | |||||||||||||||||||||||||||||
The Company has certain lending policies and procedures in place that are designed to maximize loan income within an acceptable level of risk. Management reviews and approves these policies and procedures on a regular basis. A reporting system supplements the review process by providing management with frequent reports related to loan production, loan quality, concentrations of credit, loan delinquencies and non-performing and potential problem loans. Diversification in the loan portfolio is a means of managing risk associated with fluctuations in economic conditions. | |||||||||||||||||||||||||||||
Commercial and industrial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably and prudently expand its business. Underwriting standards are designed to promote relationship banking rather than transactional banking. Once it is determined that the borrower’s management possesses sound ethics and solid business acumen, the Company’s management examines current and projected cash flows to determine the ability of the borrower to repay their obligations as agreed. Commercial and industrial loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial and industrial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee; however, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. | |||||||||||||||||||||||||||||
Commercial real estate loans are subject to underwriting standards and processes similar to commercial and industrial loans, in addition to those of real estate loans. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally largely dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s commercial real estate portfolio are diverse in terms of type and geographic location. This diversity helps reduce the Company’s exposure to adverse economic events that affect any single market or industry. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. As a general rule, the Company avoids financing single-purpose projects unless other underwriting factors are present to help mitigate risk. The Company also utilizes third-party experts to provide insight and guidance about economic conditions and trends affecting market areas it serves. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner occupied loans. At December 31, 2014, approximately $82.0 million of the outstanding principal balance of the Company’s non-residential real estate loans were secured by owner-occupied properties, approximately $68.6 million was secured by non-owner occupied properties. | |||||||||||||||||||||||||||||
With respect to loans to developers and builders that are secured by non-owner occupied properties that the Company may originate from time to time, the Company generally requires the borrower to have had an existing relationship with the Company and have a proven record of success. Construction loans are underwritten utilizing feasibility studies, independent appraisal reviews, sensitivity analysis of absorption and lease rates and financial analysis of the developers and property owners. Construction loans are generally based upon estimates of costs and value associated with the completed project. These estimates may be inaccurate. Construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions and the availability of long-term financing. | |||||||||||||||||||||||||||||
The Company maintains an independent loan review function that is typically outsourced to firms that specialize in conducting loan reviews. Results of these reviews are presented to management. The loan review process complements and reinforces the risk identification and assessment decisions made by lenders and credit personnel, as well as the Company policies and procedures. | |||||||||||||||||||||||||||||
Most of the Company’s lending activity occurs in Western Kentucky and middle and western Tennessee. The majority of the Company’s loan portfolio consists of non-residential real estate loans and one-to-four family residential real estate loans. | |||||||||||||||||||||||||||||
Loans by classification type and the related valuation allowance amounts at December 31, 2014, were as follows: | |||||||||||||||||||||||||||||
Special | Impaired Loans | Specific | Allowance for | ||||||||||||||||||||||||||
Allowance for | Loans not | ||||||||||||||||||||||||||||
Pass | Mention | Substandard | Doubtful | Total | Impairment | Impaired | |||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
One-to-four family mortgages | $ | 146,129 | 203 | 4,219 | — | 150,551 | 51 | 1,147 | |||||||||||||||||||||
Home equity line of credit | 33,481 | — | 757 | — | 34,238 | — | 181 | ||||||||||||||||||||||
Junior lien | 2,025 | 40 | 37 | — | 2,102 | — | 14 | ||||||||||||||||||||||
Multi-family | 20,066 | 2,904 | 3,021 | — | 25,991 | — | 85 | ||||||||||||||||||||||
Construction | 24,241 | — | — | — | 24,241 | — | 146 | ||||||||||||||||||||||
Land | 15,328 | 362 | 10,964 | — | 26,654 | 663 | 460 | ||||||||||||||||||||||
Non-residential real estate | 131,854 | 5,492 | 13,250 | — | 150,596 | 738 | 1,345 | ||||||||||||||||||||||
Farmland | 40,121 | 516 | 2,237 | — | 42,874 | — | 461 | ||||||||||||||||||||||
Consumer loans | 14,118 | 21 | 299 | — | 14,438 | 62 | 432 | ||||||||||||||||||||||
Commercial loans | 71,246 | 325 | 2,583 | — | 74,154 | — | 504 | ||||||||||||||||||||||
Total | $ | 498,609 | 9,863 | 37,367 | — | 545,839 | 1,514 | 4,775 | |||||||||||||||||||||
Loans by classification type and the related valuation allowance amounts at December 31, 2013, were as follows: | |||||||||||||||||||||||||||||
Special | Impaired Loans | Specific | Allowance for | ||||||||||||||||||||||||||
Allowance for | Loans not | ||||||||||||||||||||||||||||
Pass | Mention | Substandard | Doubtful | Total | Impairment | Impaired | |||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
One-to-four family mortgages | $ | 149,351 | 814 | 5,087 | — | 155,252 | 597 | 1,451 | |||||||||||||||||||||
Home equity line of credit | 33,462 | — | 641 | — | 34,103 | — | 218 | ||||||||||||||||||||||
Junior lien | 3,126 | 43 | 79 | — | 3,248 | — | 39 | ||||||||||||||||||||||
Multi-family | 29,736 | — | — | — | 29,736 | — | 466 | ||||||||||||||||||||||
Construction | 10,443 | — | 175 | — | 10,618 | — | 88 | ||||||||||||||||||||||
Land | 19,899 | 52 | 14,730 | — | 34,681 | 771 | 534 | ||||||||||||||||||||||
Non-residential real estate | 143,044 | 515 | 14,133 | — | 157,692 | 465 | 2,254 | ||||||||||||||||||||||
Farmland | 46,042 | 480 | 5,346 | — | 51,868 | — | 510 | ||||||||||||||||||||||
Consumer loans | 10,727 | — | 440 | — | 11,167 | 96 | 445 | ||||||||||||||||||||||
Commercial loans | 61,502 | 526 | 2,013 | — | 64,041 | — | 748 | ||||||||||||||||||||||
Total | $ | 507,332 | 2,430 | 42,644 | — | 552,406 | 1,929 | 6,753 | |||||||||||||||||||||
Impaired loans by classification type and the related valuation allowance amounts at December 31, 2014, were as follows: | |||||||||||||||||||||||||||||
For the year ended | |||||||||||||||||||||||||||||
At December 31, 2014 | December 31, 2014 | ||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | |||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | |||||||||||||||||||||||||
Balance | Investment | Recognized | |||||||||||||||||||||||||||
Impaired loans with no specific allowance | |||||||||||||||||||||||||||||
One-to-four family mortgages | $ | 3,501 | 3,501 | — | 2,972 | 176 | |||||||||||||||||||||||
Home equity line of credit | 757 | 757 | — | 690 | 35 | ||||||||||||||||||||||||
Junior liens | 37 | 37 | — | 39 | 2 | ||||||||||||||||||||||||
Multi-family | 3,021 | 3,021 | — | 1,342 | 190 | ||||||||||||||||||||||||
Construction | — | — | — | 29 | — | ||||||||||||||||||||||||
Land | 7,740 | 7,740 | — | 8,978 | 339 | ||||||||||||||||||||||||
Non-residential real estate | 12,057 | 12,057 | — | 8,672 | 669 | ||||||||||||||||||||||||
Farmland | 2,237 | 2,237 | 3,968 | 125 | |||||||||||||||||||||||||
Consumer loans | 51 | 51 | — | 36 | 3 | ||||||||||||||||||||||||
Commercial loans | 2,583 | 2,583 | — | 2,246 | 154 | ||||||||||||||||||||||||
Total | 31,984 | 31,984 | — | 28,972 | 1,693 | ||||||||||||||||||||||||
Impaired loans with a specific allowance | |||||||||||||||||||||||||||||
One-to-four family mortgages | $ | 718 | 718 | 51 | 1,434 | 44 | |||||||||||||||||||||||
Home equity line of credit | — | — | — | — | — | ||||||||||||||||||||||||
Junior liens | — | — | — | — | — | ||||||||||||||||||||||||
Multi-family | — | — | — | — | — | ||||||||||||||||||||||||
Construction | — | — | — | — | — | ||||||||||||||||||||||||
Land | 3,224 | 4,737 | 663 | 3,418 | 160 | ||||||||||||||||||||||||
Non-residential real estate | 1,193 | 1,258 | 738 | 3,617 | 69 | ||||||||||||||||||||||||
Farmland | — | — | — | 619 | — | ||||||||||||||||||||||||
Consumer loans | 248 | 248 | 62 | 355 | — | ||||||||||||||||||||||||
Commercial loans | — | — | — | 100 | — | ||||||||||||||||||||||||
Total | 5,383 | 6,961 | 1,514 | 9,543 | 273 | ||||||||||||||||||||||||
Total impaired loans | $ | 37,367 | 38,945 | 1,514 | 38,515 | 1,966 | |||||||||||||||||||||||
Impaired loans by classification type and the related valuation allowance amounts at December 31, 2013, were as follows: | |||||||||||||||||||||||||||||
For the year ended | |||||||||||||||||||||||||||||
At December 31, 2013 | December 31, 2013 | ||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | |||||||||||||||||||||||||
Principal | Recorded | Income | |||||||||||||||||||||||||||
Investment | Balance | Allowance | Investment | Recognized | |||||||||||||||||||||||||
Impaired loans with no specific allowance | |||||||||||||||||||||||||||||
One-to-four family mortgages | $ | 3,216 | 3,216 | — | 2,361 | 8 | |||||||||||||||||||||||
Home equity line of credit | 641 | 641 | — | 564 | 3 | ||||||||||||||||||||||||
Junior liens | 79 | 79 | — | 239 | 1 | ||||||||||||||||||||||||
Multi-family | — | — | — | 990 | — | ||||||||||||||||||||||||
Construction | 175 | 175 | — | 1,072 | 5 | ||||||||||||||||||||||||
Land | 10,882 | 12,315 | — | 10,668 | 186 | ||||||||||||||||||||||||
Non-residential real estate | 10,775 | 10,775 | — | 6,196 | 263 | ||||||||||||||||||||||||
Farmland | 5,346 | 5,346 | 6,955 | 149 | |||||||||||||||||||||||||
Consumer loans | 56 | 56 | — | 48 | — | ||||||||||||||||||||||||
Commercial loans | 2,013 | 2,013 | — | 2,391 | 95 | ||||||||||||||||||||||||
Total | 33,183 | 34,616 | — | 31,484 | 710 | ||||||||||||||||||||||||
Impaired loans with a specific allowance | |||||||||||||||||||||||||||||
One-to-four family mortgages | $ | 1,871 | 1,871 | 597 | 2,501 | 9 | |||||||||||||||||||||||
Home equity line of credit | — | — | — | 279 | — | ||||||||||||||||||||||||
Junior liens | — | — | — | 113 | — | ||||||||||||||||||||||||
Multi-family | — | — | — | — | — | ||||||||||||||||||||||||
Construction | — | — | — | 1,385 | — | ||||||||||||||||||||||||
Land | 3,848 | 3,848 | 771 | 2,741 | 29 | ||||||||||||||||||||||||
Non-residential real estate | 3,358 | 4,222 | 465 | 2,243 | 111 | ||||||||||||||||||||||||
Farmland | — | — | — | 1,601 | — | ||||||||||||||||||||||||
Consumer loans | 384 | 384 | 96 | 401 | — | ||||||||||||||||||||||||
Commercial loans | — | — | — | 346 | — | ||||||||||||||||||||||||
Total | 9,461 | 10,325 | 1,929 | 11,610 | 149 | ||||||||||||||||||||||||
Total impaired loans | $ | 42,644 | 44,941 | 1,929 | 43,094 | 859 | |||||||||||||||||||||||
The following table presents the balance in the allowance for loan losses and the recorded investment in loans as of December 31, 2014, and December 31, 2013, by portfolio segment and based on the impairment method as of December 31, 2014, and December 31, 2013. | |||||||||||||||||||||||||||||
Commercial | Land | Commercial | Residential | Consumer | Total | ||||||||||||||||||||||||
Development / | Real Estate | Real Estate | |||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||
December 31, 2014: | |||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | 663 | $ | 738 | $ | 51 | $ | 62 | $ | 1,514 | |||||||||||||||||
Collectively evaluated for impairment | 504 | 606 | 1,891 | 1,342 | 432 | 4,775 | |||||||||||||||||||||||
Total ending allowance balance | $ | 504 | $ | 1,269 | $ | 2,629 | $ | 1,393 | $ | 494 | $ | 6,289 | |||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 2,583 | $ | 10,964 | $ | 18,508 | $ | 5,013 | $ | 299 | $ | 37,367 | |||||||||||||||||
Loans collectively evaluated for impairment | 71,571 | 39,931 | 200,953 | 181,878 | 14,139 | 508,472 | |||||||||||||||||||||||
Total ending loans balance | $ | 74,154 | $ | 50,895 | $ | 219,461 | $ | 186,891 | $ | 14,438 | $ | 545,839 | |||||||||||||||||
Commercial | Land | Commercial | Residential | Consumer | Total | ||||||||||||||||||||||||
Development / | Real Estate | Real Estate | |||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||
December 31, 2013: | |||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | 771 | $ | 465 | $ | 597 | $ | 96 | $ | 1,929 | |||||||||||||||||
Collectively evaluated for impairment | 748 | 622 | 3,230 | 1,708 | 445 | 6,753 | |||||||||||||||||||||||
Total ending allowance balance | $ | 748 | $ | 1,393 | $ | 3,695 | $ | 2,305 | $ | 541 | $ | 8,682 | |||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 2,013 | $ | 14,905 | $ | 19,479 | $ | 5,807 | $ | 440 | $ | 42,644 | |||||||||||||||||
Loans collectively evaluated for impairment | 62,028 | 30,394 | 219,817 | 186,796 | 10,727 | 509,762 | |||||||||||||||||||||||
Total ending loans balance | $ | 64,041 | $ | 45,299 | $ | 239,296 | $ | 192,603 | $ | 11,167 | $ | 552,406 | |||||||||||||||||
The average recorded investment in impaired loans for the years ended December 31, 2014, 2013 and 2012 was $38.5 million, $43.1 million and $79.3 million, respectively. Interest income recognized on impaired loans for the years ended December 31, 2014 and December 31, 2013 and December 31, 2012, was $2.0 million, $859,000 and $2.8 million, respectively. The following table provides a detail of the Company’s activity in the allowance for loan loss account allocated by loan type for the year ended December 31, 2014: | |||||||||||||||||||||||||||||
Year ended December 31, 2014 | Balance | Charge | Recovery | General | Specific | Ending | |||||||||||||||||||||||
12/31/13 | off | 2014 | Provision | Provision | Balance | ||||||||||||||||||||||||
2014 | 2014 | 2014 | 12/31/14 | ||||||||||||||||||||||||||
One-to-four family mortgages | 2,048 | (233 | ) | 24 | (304 | ) | (337 | ) | 1,198 | ||||||||||||||||||||
Home equity line of credit | 218 | (83 | ) | 3 | (37 | ) | 80 | 181 | |||||||||||||||||||||
Junior liens | 39 | — | 9 | (25 | ) | (9 | ) | 14 | |||||||||||||||||||||
Multi-family | 466 | — | — | (381 | ) | — | 85 | ||||||||||||||||||||||
Construction | 88 | (139 | ) | 9 | 58 | 130 | 146 | ||||||||||||||||||||||
Land | 1,305 | — | — | (74 | ) | (108 | ) | 1,123 | |||||||||||||||||||||
Non-residential real estate | 2,719 | (66 | ) | 864 | (1,368 | ) | (66 | ) | 2,083 | ||||||||||||||||||||
Farmland | 510 | — | — | 542 | (591 | ) | 461 | ||||||||||||||||||||||
Consumer loans | 541 | (415 | ) | 109 | (13 | ) | 272 | 494 | |||||||||||||||||||||
Commercial loans | 748 | (296 | ) | 94 | (244 | ) | 202 | 504 | |||||||||||||||||||||
8,682 | (1,232 | ) | 1,112 | (1,846 | ) | (427 | ) | 6,289 | |||||||||||||||||||||
The following table provides a detail of the Company’s activity in the allowance for loan loss account allocated by loan type for the year ended December 30, 2013: | |||||||||||||||||||||||||||||
Year ended December 31, 2013 | Balance | Charge | Recovery | General | Specific | Ending | |||||||||||||||||||||||
12/31/12 | off | 2013 | Provision | Provision | Balance | ||||||||||||||||||||||||
2013 | 2013 | 2013 | 12/31/13 | ||||||||||||||||||||||||||
One-to-four family mortgages | $ | 2,490 | (852 | ) | 329 | (285 | ) | 366 | 2,048 | ||||||||||||||||||||
Home equity line of credit | 374 | (22 | ) | 9 | (88 | ) | (55 | ) | 218 | ||||||||||||||||||||
Junior liens | 230 | (119 | ) | 71 | 5 | (148 | ) | 39 | |||||||||||||||||||||
Multi-family | 524 | (38 | ) | 164 | (20 | ) | (164 | ) | 466 | ||||||||||||||||||||
Construction | 256 | — | — | (168 | ) | — | 88 | ||||||||||||||||||||||
Land | 2,184 | (1,432 | ) | 9 | (718 | ) | 1,262 | 1,305 | |||||||||||||||||||||
Non-residential real estate | 2,921 | (1,041 | ) | 14 | 757 | 68 | 2,719 | ||||||||||||||||||||||
Farmland | 712 | — | — | (202 | ) | — | 510 | ||||||||||||||||||||||
Consumer loans | 338 | (649 | ) | 246 | 228 | 378 | 541 | ||||||||||||||||||||||
Commercial loans | 619 | (291 | ) | 32 | 437 | (49 | ) | 748 | |||||||||||||||||||||
$ | 10,648 | (4,444 | ) | 874 | (54 | ) | 1,658 | 8,682 | |||||||||||||||||||||
Non-accrual loans totaled $3.2 million and $10.1 million at December 31, 2014, and December 31, 2013, respectively. All non-accrual loans noted below are classified as either substandard or doubtful. Interest income foregone on such loans totaled $76,000 at December 31, 2014, $432,000 at December 31, 2013, and $271,000 at December 31, 2012, respectively. The Company is not committed to lend additional funds to borrowers whose loans have been placed on a non-accrual basis. There were no loans past due more than three months and still accruing interest as of December 31, 2014, and December 31, 2013. For the years ended December 31, 2014, and December 31, 2013, the components of the Company’s balances of non-accrual loans are as follows: | |||||||||||||||||||||||||||||
12/31/14 | 12/31/13 | ||||||||||||||||||||||||||||
One-to-four family first mortgages | $ | 1,501 | 945 | ||||||||||||||||||||||||||
Home equity lines of credit | — | 1 | |||||||||||||||||||||||||||
Junior liens | — | 2 | |||||||||||||||||||||||||||
Multi-family | 95 | — | |||||||||||||||||||||||||||
Construction | — | 175 | |||||||||||||||||||||||||||
Land | 215 | 1,218 | |||||||||||||||||||||||||||
Non-residential real estate | 1,159 | 6,546 | |||||||||||||||||||||||||||
Farmland | 115 | 703 | |||||||||||||||||||||||||||
Consumer loans | — | 13 | |||||||||||||||||||||||||||
Commercial loans | 90 | 463 | |||||||||||||||||||||||||||
Total non-accrual loans | $ | 3,175 | 10,066 | ||||||||||||||||||||||||||
The table below presents loan balances at December 31, 2014, by loan classification allocated between past due, classified, performing and non-performing: | |||||||||||||||||||||||||||||
Currently | 30 - 89 | Non-accrual | Special | Impaired Loans | |||||||||||||||||||||||||
Days | Currently Performing | ||||||||||||||||||||||||||||
Performing | Past Due | Loans | Mention | Substandard | Doubtful | Total | |||||||||||||||||||||||
One-to-four family mortgages | $ | 145,372 | 757 | 1,501 | 203 | 2,718 | — | 150,551 | |||||||||||||||||||||
Home equity line of credit | 33,338 | 143 | — | — | 757 | — | 34,238 | ||||||||||||||||||||||
Junior liens | 2,025 | — | — | 40 | 37 | — | 2,102 | ||||||||||||||||||||||
Multi-family | 20,066 | — | 95 | 2,904 | 2,926 | — | 25,991 | ||||||||||||||||||||||
Construction | 24,241 | — | — | — | — | — | 24,241 | ||||||||||||||||||||||
Land | 14,674 | 654 | 215 | 362 | 10,749 | — | 26,654 | ||||||||||||||||||||||
Non-residential real estate | 131,854 | — | 1,159 | 5,492 | 12,091 | — | 150,596 | ||||||||||||||||||||||
Farmland | 40,057 | 64 | 115 | 516 | 2,122 | — | 42,874 | ||||||||||||||||||||||
Consumer loans | 14,104 | 14 | — | 21 | 299 | — | 14,438 | ||||||||||||||||||||||
Commercial loans | 71,191 | 55 | 90 | 325 | 2,493 | — | 74,154 | ||||||||||||||||||||||
Total | $ | 496,922 | 1,687 | 3,175 | 9,863 | 34,192 | — | 545,839 | |||||||||||||||||||||
The table below presents loan balances at December 31, 2013, by loan classification allocated between performing and non-performing: | |||||||||||||||||||||||||||||
Currently | 30—89 | Non-accrual | Special | Impaired Loans | |||||||||||||||||||||||||
Days | Currently Performing | ||||||||||||||||||||||||||||
Performing | Past Due | Loans | Mention | Substandard | Doubtful | Total | |||||||||||||||||||||||
One-to-four family mortgages | $ | 148,759 | 592 | 945 | 814 | 4,142 | — | 155,252 | |||||||||||||||||||||
Home equity line of credit | 33,369 | 93 | 1 | — | 640 | — | 34,103 | ||||||||||||||||||||||
Junior liens | 3,126 | — | 2 | 43 | 77 | — | 3,248 | ||||||||||||||||||||||
Multi-family | 29,736 | — | — | — | — | — | 29,736 | ||||||||||||||||||||||
Construction | 10,443 | — | 175 | — | — | — | 10,618 | ||||||||||||||||||||||
Land | 19,899 | — | 1,218 | 52 | 13,512 | — | 34,681 | ||||||||||||||||||||||
Non-residential real estate | 142,701 | 343 | 6,546 | 515 | 7,587 | — | 157,692 | ||||||||||||||||||||||
Farmland | 46,042 | — | 703 | 480 | 4,643 | — | 51,868 | ||||||||||||||||||||||
Consumer loans | 10,493 | 234 | 13 | — | 427 | — | 11,167 | ||||||||||||||||||||||
Commercial loans | 61,379 | 123 | 463 | 526 | 1,550 | — | 64,041 | ||||||||||||||||||||||
Total | $ | 505,947 | 1,385 | 10,066 | 2,430 | 32,578 | — | 552,406 | |||||||||||||||||||||
All loans listed as 30-89 days past due and non-accrual are not performing as agreed. Loans listed as special mention, substandard and doubtful are paying as agreed. However, the customer’s financial statements may indicate weaknesses in their current cash flow, the customer’s industry may be in decline due to current economic conditions, collateral values used to secure the loan may be declining, or the Company may be concerned about the customer’s future business prospects. | |||||||||||||||||||||||||||||
Troubled Debt Restructuring | |||||||||||||||||||||||||||||
On a periodic basis, the Company may modify the terms of certain loans. In evaluating whether a restructuring constitutes a troubled debt restructuring (TDR), Financial Accounting Standards Board has issued Accounting Standards Update 310 (ASU 310); A Creditor’s Determination of Whether a Restructuring is a Troubled Debt Restructuring. In evaluating whether a restructuring constitutes a TDR, the Company must separately conclude that both of the following exist: | |||||||||||||||||||||||||||||
a.) | The restructuring constitutes a concession | ||||||||||||||||||||||||||||
b.) | The debtor is experiencing financial difficulties | ||||||||||||||||||||||||||||
ASU 310 provides the following guidance for the Company’s evaluation of whether it has granted a concession as follows: | |||||||||||||||||||||||||||||
If a debtor does not otherwise have access to funds at a market interest rate for debt with similar risk characteristics as the restructured debt, the restructured debt would be considered a below market rate, which may indicate that the Company may have granted a concession. In that circumstance, the Company should consider all aspects of the restructuring in determining whether it has granted a concession, the creditor must make a separate assessment about whether the debtor is experiencing financial difficulties to determine whether the restructuring constitutes a TDR. | |||||||||||||||||||||||||||||
A temporary or permanent increase in the interest rate on a loan as a result of a restructuring does not eliminate the possibility of the restructuring from being considered a concession if the new interest rate on the loan is below the market interest rate for loans of similar risk characteristics. | |||||||||||||||||||||||||||||
A restructuring that results in a delay in payment that is insignificant is not a concession. However, the Company must consider a variety of factors in assessing whether a restructuring resulting in a delay in payment is insignificant. | |||||||||||||||||||||||||||||
At December 31, 2014, the Company had no loans classified as performing TDRs as compared to no loans at December 31, 2013. A summary of the activity in loans classified as TDRs for the twelve month period ended December 31, 2014, is as follows: | |||||||||||||||||||||||||||||
Balance at | New | Loss or | Transfer to Held | Removed | Balance | ||||||||||||||||||||||||
12/31/13 | TDR | Foreclosure | for Sale | from | at | ||||||||||||||||||||||||
(Taken to) | 12/31/14 | ||||||||||||||||||||||||||||
Non-accrual | |||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
One-to-four family mortgages | $ | — | — | — | — | — | $ | — | |||||||||||||||||||||
Home equity line of credit | — | — | — | — | — | — | |||||||||||||||||||||||
Junior Lien | — | — | — | — | — | — | |||||||||||||||||||||||
Multi-family | — | — | — | — | — | — | |||||||||||||||||||||||
Construction | — | — | — | — | — | — | |||||||||||||||||||||||
Land | — | — | — | — | — | — | |||||||||||||||||||||||
Non-residential real estate | — | 10,271 | — | (6,987 | ) | — | 3,284 | ||||||||||||||||||||||
Farmland | — | — | — | — | — | — | |||||||||||||||||||||||
Consumer loans | — | — | — | — | — | — | |||||||||||||||||||||||
Commercial loans | — | — | — | — | — | — | |||||||||||||||||||||||
Total performing TDR | $ | — | 10,271 | — | (6,987 | ) | — | $ | 3,284 | ||||||||||||||||||||
A summary of the activity in loans classified as TDRs for the year ended December 31, 2013, is as follows: | |||||||||||||||||||||||||||||
Balance at | New | Loss or | Removed due to | Removed | Balance | ||||||||||||||||||||||||
12/31/12 | TDR | Foreclosure | Payment or | from | at | ||||||||||||||||||||||||
Performance | (Taken to) | 12/31/13 | |||||||||||||||||||||||||||
Non-accrual | |||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
One-to-four family mortgages | $ | 1,888 | 242 | — | (1,863 | ) | (267 | ) | — | ||||||||||||||||||||
Home equity line of credit | — | — | — | — | — | — | |||||||||||||||||||||||
Junior Lien | 96 | — | — | (10 | ) | (86 | ) | — | |||||||||||||||||||||
Multi-family | 234 | — | — | (234 | ) | — | — | ||||||||||||||||||||||
Construction | 4,112 | — | — | — | (4,112 | ) | — | ||||||||||||||||||||||
Land | 656 | 2,649 | (393 | ) | (656 | ) | (2,256 | ) | — | ||||||||||||||||||||
Non-residential real estate | 3,173 | 266 | (864 | ) | — | (2,575 | ) | — | |||||||||||||||||||||
Farmland | 865 | — | — | (865 | ) | — | — | ||||||||||||||||||||||
Consumer loans | 5 | — | — | (5 | ) | — | — | ||||||||||||||||||||||
Commercial loans | 9 | 222 | — | (231 | ) | — | — | ||||||||||||||||||||||
Total performing TDR | $ | 11,038 | 3,379 | (1,257 | ) | (3,864 | ) | (9,296 | ) | — | |||||||||||||||||||
The Company originates loans to officers and directors and their affiliates at terms substantially identical to those available to other borrowers. Loans to officers and directors at December 31, 2014 and December 31, 2013, were approximately $4.0 million and $4.8 million, respectively. At December 31, 2014, funds committed that were undisbursed to officers and directors approximated $447,000. | |||||||||||||||||||||||||||||
The following summarizes activity of loans to officers and directors and their affiliates for the years ended December 31, 2014, and December 31, 2013: | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Balance at beginning of period | $ | 4,800 | 8,846 | ||||||||||||||||||||||||||
New loans | 669 | 410 | |||||||||||||||||||||||||||
Principal repayments | (1,447 | ) | (4,456 | ) | |||||||||||||||||||||||||
Balance at end of period | $ | 4,022 | 4,800 | ||||||||||||||||||||||||||
Premises_and_Equipment
Premises and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Premises and Equipment | -4 | Premises and Equipment: | |||||||
Components of premises and equipment included in the consolidated balance sheets as of December 31, 2014 and December 31, 2013, consisted of the following: | |||||||||
2014 | 2013 | ||||||||
Land | $ | 6,576 | 6,526 | ||||||
Land improvements | 611 | 575 | |||||||
Buildings | 20,914 | 20,257 | |||||||
Construction in process | 486 | 582 | |||||||
Furniture and equipment | 6,213 | 6,696 | |||||||
34,800 | 34,636 | ||||||||
Less accumulated depreciation | 11,860 | 11,528 | |||||||
Premises and equipment, net | $ | 22,940 | 23,108 | ||||||
Depreciation expense was approximately $1,336,000, $1,502,000 and $1,587,000 for the years ended December 31, 2014, 2013 and 2012, respectively. |
Intangible_Assets
Intangible Assets | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Intangible Assets | -5 | Intangible Assets: | |||
The amount of other intangible assets and the changes in the carrying amounts of other intangible assets for the years ended December 31, 2014, 2013 and 2012: | |||||
Core Deposits | |||||
Intangible | |||||
Balance, December 31, 2011 | $ | 519 | |||
Amortization | (227 | ) | |||
Balance December 31, 2012 | 292 | ||||
Amortization | (162 | ) | |||
Balance December 31, 2013 | 130 | ||||
Amortization | (97 | ) | |||
Balance, December 31, 2014 | $ | 33 | |||
Deposits
Deposits | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Text Block [Abstract] | |||||||||||||
Deposits | -6 | Deposits: | |||||||||||
At December 31, 2014, the scheduled maturities of other time deposits were as follows: | |||||||||||||
Years Ending December 31, | |||||||||||||
2015 | $ | 139,708 | |||||||||||
2016 | 137,147 | ||||||||||||
2017 | 32,175 | ||||||||||||
2018 | 15,299 | ||||||||||||
2019 | 7,576 | ||||||||||||
2020 and thereafter | 10 | ||||||||||||
$ | 331,915 | ||||||||||||
The amount of other time deposits with a minimum denomination of $100,000 was approximately $169.3 million and $200.2 million at December 31, 2014, and December 31, 2013, respectively. At December 31, 2014, directors, members of senior management and their affiliates had deposits in the Bank of approximately $4.4 million. | |||||||||||||
Interest expense on deposits for the years ended December 31, 2014, December 31, 2013 and December 31, 2012 is summarized as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Interest bearing checking accounts | $ | 1,253 | $ | 1,243 | 1,180 | ||||||||
Money market accounts | 86 | 73 | 58 | ||||||||||
Savings | 109 | 79 | 71 | ||||||||||
Other time deposits | 4,155 | 5,719 | 9,262 | ||||||||||
$ | 5,603 | $ | 7,114 | 10,571 | |||||||||
The Bank maintains clearing arrangements for its demand, interest bearing checking accounts and money market accounts with BBVA Compass Bank. The Bank is required to maintain certain cash reserves in its account to cover average daily clearings. At December 31, 2014, average daily clearings were approximately $6.1 million. | |||||||||||||
At December 31, 2014, the Company had approximately $248,000 of deposit accounts in overdraft status and thus has been reclassified to loans on the accompanying consolidated balance sheet. At December 31, 2013, the Company had approximately $384,000 of deposit accounts in overdraft status and thus has been reclassified to loans on the accompanying consolidated balance sheet. At December 31, 2014, and December 31, 2013, the Company had deposits classified as brokered deposits totaling $37.1 million and $46.3 million, respectively. |
Advances_from_Federal_Home_Loa
Advances from Federal Home Loan Bank | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||
Advances from Federal Home Loan Bank | -7 | Advances from Federal Home Loan Bank: | |||||||||||||||
Federal Home Loan Bank advances are summarized as follows: | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Weighted | Weighted | ||||||||||||||||
Types of Advances | Amount | Average Rate | Amount | Average Rate | |||||||||||||
Fixed-rate | $ | 34,000 | 0.88 | % | $ | 46,780 | 3.72 | % | |||||||||
Scheduled maturities of FHLB advances as of December 31, 2014 are as follows: | |||||||||||||||||
Years Ending | Fixed | Average | |||||||||||||||
December 31, | Rate | Cost | |||||||||||||||
2015 | $ | 30,000 | 0.29 | % | |||||||||||||
2016 | 4,000 | 5.34 | % | ||||||||||||||
Total | $ | 34,000 | 0.88 | % | |||||||||||||
On December 30, 2014, the Company prepaid $35.9 million in FHLB advances, incurring a $2.5 million prepayment penalty. To fund this transaction, the Company borrowed $15.0 million from the FHLB with a maturity of one month and $15.0 million with a maturity of six months. | |||||||||||||||||
The Bank has an approved line of credit of $30 million at the FHLB of Cincinnati, which is secured by a blanket agreement to maintain residential first mortgage loans and non-residential real estate loans with a principal value of 125% of the outstanding advances and has a variable interest rate. At December 31, 2014, the Bank could borrow an additional $52.6 million from the FHLB of Cincinnati without pledging additional collateral. At December 31, 2014, the Bank has an additional $40.1 million in additional collateral that could be pledged to the FHLB to secure additional advance requirements. The Bank has an $8 million unsecured line of credit with BVA Compass Bank of Birmingham, Alabama. The Company’s overnight lines of credit with both the Federal Home Loan Bank of Cincinnati and Compass Bank had no balance at December 31, 2014. |
Repurchase_Agreements
Repurchase Agreements | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Text Block [Abstract] | |||||||||||||||
Repurchase Agreements | -8 | Repurchase Agreements: | |||||||||||||
In 2006, the Company enhanced its cash management product line to include an automated sweep of excess funds from checking accounts to repurchase accounts, allowing interest to be paid on excess funds remaining in checking accounts of business and municipal customers. Repurchase balances are overnight borrowings from customers and are not FDIC insured. In addition, the Company has entered into two long term repurchase agreements with third parties. | |||||||||||||||
At December 31, 2014, the Company provided investment securities with a market value and book value of $57.9 million as collateral for repurchase agreements. The maximum repurchase balances outstanding during the twelve month periods ending December 31, 2014, and December 31, 2013, was $57.9 million and $58.1 million, respectively. | |||||||||||||||
At December 31, 2014, and December 31, 2013, the respective cost and maturities of the Company’s repurchase agreements are as follows: | |||||||||||||||
2014 | Balance | Average Rate | Maturity | Comments | |||||||||||
Third Party | |||||||||||||||
Merrill Lynch | $ | 6,000 | 4.36 | % | 9/18/16 | Quarterly callable | |||||||||
Various customers | 51,358 | 0.6 | % | Overnight | |||||||||||
Total | $ | 57,358 | 1.42 | % | |||||||||||
2013 | Balance | Average Rate | Maturity | Comments | |||||||||||
Third Party | |||||||||||||||
Deutsch Bank | $ | 10,000 | 4.28 | % | 9/5/14 | Quarterly callable | |||||||||
Merrill Lynch | 6,000 | 4.36 | % | 9/18/16 | Quarterly callable | ||||||||||
Various customers | 36,759 | 0.99 | % | Overnight | |||||||||||
Total | $ | 52,759 | 2.29 | % | |||||||||||
Fair_Value_Measurement
Fair Value Measurement | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
Fair Value Measurement | -9 | Fair Value Measurement: | |||||||||||||||||||
In September 2006, FASB issued ASC Topic 820, Fair Value Measurements and Disclosures. ASC 820 establishes a fair value hierarchy which requires an entity to maximize the use of observable input and minimize the use of unobservable inputs when measuring fair value. Although ASC 820 provides for fair value accounting, the Company did not elect the fair value option for any financial instrument not presently required to be accounted for at fair value. | |||||||||||||||||||||
HopFed Bancorp has developed a process for determining fair values. Fair value is based upon quoted market prices, where available. If listed prices or quotes are not available, fair value is based upon internally developed models or processes that use primarily market based or based on third party market data, including interest rate yield curves, option volatilities and other third party information. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies, or assumptions, to determine the fair value of certain financials instruments could result in a different estimate of fair value at the reporting date. | |||||||||||||||||||||
ASC 820 establishes a three-level valuation hierarchy for disclosure of fair value measurement. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. | |||||||||||||||||||||
• | Level 1 is for assets and liabilities that management has obtained quoted prices (unadjusted for transaction cost) or identical assets or liabilities in active markets that the Company has the ability to access as of the measurement date. | ||||||||||||||||||||
• | Level 2 is for assets and liabilities in which significant unobservable inputs other than Level 1 prices such as quoted prices for similar assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. | ||||||||||||||||||||
• | Level 3 is for assets and liabilities in which significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. | ||||||||||||||||||||
The fair value of securities available for sale are determined by a matrix pricing, which is a mathematical technique what is widely used in the industry to value debt securities without relying exclusively on quoted prices for the individual securities in the Company’s portfolio but relying on the securities relationship to other benchmark quoted securities. Impaired loans are valued at the net present value of expected payments and considering the fair value of any assigned collateral. | |||||||||||||||||||||
The Company has certain liabilities carried at fair value including interest rate swap agreements. The fair value of these liabilities is based on information obtained from a third party bank and is reflected within level 2 of the valuation hierarchy. | |||||||||||||||||||||
Assets and Liabilities Measured on a Recurring Basis | |||||||||||||||||||||
The assets and liabilities measured at fair value on a recurring basis are summarized below: | |||||||||||||||||||||
December 31, 2014 | Total carrying | Quoted Prices | Significant | Significant | |||||||||||||||||
value in the | In Active | Other | Unobservable | ||||||||||||||||||
consolidated | Markets for | Observable | |||||||||||||||||||
Description | balance sheet at | Identical Assets | Inputs | Inputs | |||||||||||||||||
December 31, 2014 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Assets | |||||||||||||||||||||
Available for sale securities | $ | 303,628 | — | 302,139 | 1,489 | ||||||||||||||||
Liabilities | |||||||||||||||||||||
Interest rate swap | $ | 390 | — | 390 | — | ||||||||||||||||
December 31, 2013 | Total carrying | Quoted Prices | Significant | Significant | |||||||||||||||||
value in the | In Active | Other | Unobservable | ||||||||||||||||||
consolidated | Markets for | Observable | |||||||||||||||||||
Description | balance sheet at | Identical Assets | Inputs | Inputs | |||||||||||||||||
December 31, 2013 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Assets | |||||||||||||||||||||
Available for sale securities | $ | 318,910 | — | 317,421 | 1,489 | ||||||||||||||||
Liabilities | |||||||||||||||||||||
Interest rate swap | $ | 750 | — | 750 | — | ||||||||||||||||
The assets and liabilities measured at fair value on a non-recurring basis are summarized below: | |||||||||||||||||||||
December 31, 2014 | Total carrying | Quoted Prices | Significant | Significant | |||||||||||||||||
value in the | In Active | Other | |||||||||||||||||||
Description | consolidated | Markets for | Observable | Unobservable | |||||||||||||||||
balance sheet at | Identical Assets | Inputs | Inputs | ||||||||||||||||||
12/31/14 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Assets | |||||||||||||||||||||
Other real estate owned | $ | 1,927 | — | — | 1,927 | ||||||||||||||||
Impaired loans, net of allowance of $1,514 | $ | 35,853 | — | — | 35,853 | ||||||||||||||||
December 31, 2013 | Total carrying | Quoted Prices | Significant | Significant | |||||||||||||||||
value in the | In Active | Other | |||||||||||||||||||
Description | consolidated | Markets for | Observable | Unobservable | |||||||||||||||||
balance sheet at | Identical Assets | Inputs | Inputs | ||||||||||||||||||
12/31/13 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Assets | |||||||||||||||||||||
Other real estate owned | $ | 1,674 | — | — | 1,674 | ||||||||||||||||
Impaired loans, net of allowance of $1,929 | $ | 40,715 | — | — | 40,715 | ||||||||||||||||
Change in level 3 fair value measurements: | |||||||||||||||||||||
The table below includes a roll-forward of the balance sheet items for the years ended December 31, 2014 and 2013, (including the change in fair value) for assets and liabilities classified by HopFed Bancorp, Inc. within level 3 of the valuation hierarchy for assets and liabilities measured at fair value on a recurring basis. When a determination is made to classify a financial instrument within level 3 of the valuation hierarchy, the determination is based upon the significance of the unobservable factors to the overall fair value measurement. However, since level 3 financial instruments typically include, in addition to the unobservable or level 3 components, observable components (that is components that are actively quoted and can be validated to external sources), the gains and losses in the table below include changes in fair value due in part to observable factors that are part of the valuation methodology. | |||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Other | Other | Other | Other | ||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||
Fair value, December 31, | $ | 1,489 | — | $ | 1,489 | — | |||||||||||||||
Change in unrealized gains (losses) included in other comprehensive income for assets and liabilities still held at December 31, | — | — | — | — | |||||||||||||||||
Other than temporary impairment charge | — | — | — | — | |||||||||||||||||
Purchases, issuances and settlements, net | — | — | — | — | |||||||||||||||||
Transfers in and/or out of Level 3 | — | — | — | — | |||||||||||||||||
Fair value, December 31, | $ | 1,489 | — | $ | 1,489 | — | |||||||||||||||
The estimated fair values of financial instruments were as follows at December 31, 2014: | |||||||||||||||||||||
Carrying | Estimated | Quoted Prices | Using | Significant | |||||||||||||||||
Amount | Fair | In Active Markets | Significant | Unobservable | |||||||||||||||||
Value | for Identical | Other | Inputs | ||||||||||||||||||
Assets | Observable | Level 3 | |||||||||||||||||||
Level 1 | Inputs | ||||||||||||||||||||
Level 2 | |||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||
Cash and due from banks | $ | 34,389 | 34,389 | $ | 34,389 | — | — | ||||||||||||||
Interest-earning deposits | 6,050 | 6,050 | 6,050 | — | — | ||||||||||||||||
Securities available for sale | 303,628 | 303,628 | — | 302,139 | 1,489 | ||||||||||||||||
Federal Home Loan Bank stock | 4,428 | 4,428 | — | 4,428 | — | ||||||||||||||||
Loans held for sale | 1,444 | 1,444 | — | 1,444 | — | ||||||||||||||||
Loans receivable | 539,264 | 537,493 | — | — | 537,493 | ||||||||||||||||
Accrued interest receivable | 4,576 | 4,576 | — | 4,576 | — | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | 731,308 | 714,750 | — | 714,750 | — | ||||||||||||||||
Advances from borrowers for taxes and insurance | 513 | 513 | — | 513 | — | ||||||||||||||||
Advances from Federal Home Loan Bank | 34,000 | 34,217 | — | 34,217 | — | ||||||||||||||||
Repurchase agreements | 57,358 | 57,688 | — | 57,688 | — | ||||||||||||||||
Subordinated debentures | 10,310 | 10,099 | — | — | 10,099 | ||||||||||||||||
Off-balance-sheet liabilities: | |||||||||||||||||||||
Commitments to extend credit | — | — | — | — | — | ||||||||||||||||
Commercial letters of credit | — | — | — | — | — | ||||||||||||||||
Market value of interest rate swap | 390 | 390 | — | 390 | — | ||||||||||||||||
The estimated fair values of financial instruments were as follows at December 31, 2013: | |||||||||||||||||||||
Carrying | Estimated | Quoted Prices | Using | Significant | |||||||||||||||||
Amount | Fair | In Active Markets | Significant | Unobservable | |||||||||||||||||
Value | for Identical | Other | Inputs | ||||||||||||||||||
Assets | Observable | Level 3 | |||||||||||||||||||
Level 1 | Inputs | ||||||||||||||||||||
Level 2 | |||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||
Cash and due from banks | $ | 37,229 | 37,229 | 37,229 | — | — | |||||||||||||||
Interest-earning deposits | 18,619 | 18,619 | 18,619 | — | — | ||||||||||||||||
Securities available for sale | 318,910 | 318,910 | — | 317,421 | 1,489 | ||||||||||||||||
Federal Home Loan Bank stock | 4,428 | 4,428 | — | 4,428 | — | ||||||||||||||||
Loans receivable | 543,632 | 546,319 | — | — | 546,319 | ||||||||||||||||
Accrued interest receivable | 5,233 | 5,233 | — | 5,233 | — | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | 762,997 | 763,605 | — | 763,605 | — | ||||||||||||||||
Advances from borrowers for taxes and insurance | 521 | 521 | — | 521 | — | ||||||||||||||||
Advances from Federal Home Loan Bank | 46,780 | 51,010 | — | 51,010 | — | ||||||||||||||||
Repurchase agreements | 52,759 | 53,712 | — | 53,712 | — | ||||||||||||||||
Subordinated debentures | 10,310 | 10,099 | — | — | 10,099 | ||||||||||||||||
Off-balance-sheet liabilities: | |||||||||||||||||||||
Commitments to extend credit | — | — | — | — | — | ||||||||||||||||
Commercial letters of credit | — | — | — | — | — | ||||||||||||||||
Market value of interest rate swap | 750 | 750 | — | 750 | — | ||||||||||||||||
Non-Financial Assets and Non-Financial Liabilities: | |||||||||||||||||||||
The Company has no non-financial assets or non-financial liabilities measured at fair value on a recurring basis. Certain non-financial assets measured at fair value on a non-recurring basis include foreclosed assets (upon initial recognition or subsequent impairment), non-financial assets and intangible assets and other non-financial long-lived assets measured at fair value for impairment assessment. Non-financial assets measured at fair value on a non-recurring basis during the reported periods include certain foreclosed assets which, upon initial recognition, were re-measured and reported at fair value through a charge-off to the allowance for loan losses and certain foreclosed assets which, subsequent to their initial recognition, were re-measured at fair value through a write-down included in other non-interest expense. The fair value of a foreclosed asset is estimated using Level 2 inputs based on observable market data or Level 3 inputs based on customized discounting criteria. | |||||||||||||||||||||
The following table presents foreclosed assets that were re-measured and reported at fair value: | |||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Beginning balance | $ | 1,674 | 1,548 | 2,267 | |||||||||||||||||
Foreclosed assets measured at initial recognition: | |||||||||||||||||||||
Carrying value of foreclosed assets prior to acquisition | 1,816 | 1,535 | 2,634 | ||||||||||||||||||
Proceeds from sale of foreclosed assets | (1,118 | ) | (908 | ) | (2,738 | ) | |||||||||||||||
Charge-offs recognized in the allowance for loan loss | (237 | ) | (361 | ) | (349 | ) | |||||||||||||||
Gains (losses) on REO included in non-interest expense | (208 | ) | (140 | ) | (266 | ) | |||||||||||||||
Fair value | $ | 1,927 | 1,674 | 1,548 | |||||||||||||||||
Subordinated_Debentures
Subordinated Debentures | 12 Months Ended | |
Dec. 31, 2014 | ||
Brokers and Dealers [Abstract] | ||
Subordinated Debentures | -10 | Subordinated Debentures: |
On September 25, 2003, the Company formed HopFed Capital Trust I (the Trust). The Trust is a statutory trust formed under the laws of the state of Delaware. In September 2003, the Trust issued variable rate capital securities with an aggregate liquidation amount of $10,000,000 ($1,000 per preferred security) to a third-party investor. The Company then issued floating rate junior subordinated debentures aggregating $10,310,000 to the Trust. The junior subordinated debentures are the sole assets of the Trust. The junior subordinated debentures and the capital securities pay interest and dividends, respectively, on a quarterly basis. The variable interest rate is the three-month LIBOR plus 3.10% adjusted quarterly, The most recent adjustment was effective January 8, 2015, which adjusted the total coupon rate to 3.35%. These junior subordinated debentures mature in 2033, at which time the capital securities must be redeemed. The junior subordinated debentures and capital securities became redeemable contemporaneously, in whole or in part, beginning October 8, 2008 at a redemption price of $1,000 per capital security. | ||
The Company has provided a full-irrevocable and unconditional guarantee on a subordinated basis of the obligations of the Trust under the capital securities in the event of the occurrence of an event of default, as defined in such guarantee. |
Concentrations_of_Credit_Risk
Concentrations of Credit Risk | 12 Months Ended | |
Dec. 31, 2014 | ||
Risks and Uncertainties [Abstract] | ||
Concentrations of Credit Risk | -11 | Concentrations of Credit Risk: |
Most of the Bank’s business activity is with customers located within the western part of the Commonwealth of Kentucky and middle and western Tennessee. One-to-four family residential and non residential real estate collateralize the majority of the loans. The Bank requires collateral for the majority of loans. | ||
The distribution of commitments to extend credit approximates the distribution of loans outstanding. The contractual amounts of credit-related financial instruments such as commitments to extend credit and commercial letters of credit represent the amounts of potential accounting loss should the contract be fully drawn upon, the customer default, and the value of any existing collateral become worthless. In October of 2008, the FDIC increased its deposit coverage on all accounts to $250,000. In addition, financial institutions could choose to pay a higher premium to have all non-interest demand deposit balances insured. Compass Bank of Birmingham, Alabama, the Heritage Bank correspondent banker, elected to accept this additional coverage. Therefore, uninsured deposits are limited to those balances transferred to an overnight federal funds account. During 2013 and 2012, Heritage Bank chose not to transfer balances to an overnight federal funds account. Unlimited FDIC insurance on non-interest bearing deposits ended December 31, 2012. | ||
At December 31, 2014, all cash and cash equivalents are deposited with Compass BBVA Bank, the Federal Reserve Bank or the Federal Home Loan Bank of Cincinnati (FHLB). Deposits at Compass BBVA Bank are insured to $250,000. All deposits at the FHLB are liabilities of the individual bank and were not federally insured. The FHLB is a government sponsored enterprise (GSE) and has the second highest rating available by all rating agencies. At December 31, 2014, total FHLB deposits were approximately $1.0 million and total deposits at the Federal Reserve were $5.8 million, none of which is insured by the FDIC. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||
Employee Benefit Plans | -12 | Employee Benefit Plans: | |||||||
Stock Option Plan | |||||||||
The total amount of options outstanding and the exercise price of options were adjusted to reflect a 2% stock dividend paid to stockholders’ of record on September 30, 2010, and October 3, 2011. | |||||||||
On February 24, 1999, the Board of Directors of the Company adopted the HopFed Bancorp, Inc. 1999 Stock Option Plan (Option Plan), which was subsequently approved at the 1999 Annual Meeting of Stockholders. Under the Option Plan, the Option Committee has discretionary authority to grant stock options and stock appreciation rights to such employees, directors and advisory directors, as the committee shall designate. The Option Plan reserved 403,360 shares of common stock for issuance upon the exercise of options or stock appreciation rights. At December 31, 2012, the Company can no longer issue options under this plan. The remaining 20,808 options are fully vested and outstanding until their maturity date. | |||||||||
On May 31, 2000, the Board of Directors of the Company adopted the HopFed Bancorp, Inc. 2000 Stock Option Plan (the “2000 Option Plan”). Under the 2000 Option Plan, the option committee has discretionary authority to grant stock options to such employees as the committee shall designate. The 2000 Option Plan reserves 40,000 shares of common stock for issuance upon the exercise of options. The Company will receive the exercise price for shares of common stock issued to 2000 Option Plan participants upon the exercise of their option. The Board of Directors has granted options to purchase 40,000 shares of common stock under the 2000 Option Plan at an exercise price of $10.00 per share, which was the fair market value on the date of the grant. At December 31, 2014, all options having been granted under the 2000 Option Plan have been exercised and expired. | |||||||||
Number of | Weighted | ||||||||
Shares | Average Exercise | ||||||||
Price | |||||||||
Options outstanding, December 2011 | 31,212 | 15.06 | |||||||
Granted | — | — | |||||||
Exercised | — | — | |||||||
Forfeited | (10,404 | ) | 11.85 | ||||||
Options outstanding, December 2012 | 20,808 | 16.67 | |||||||
Granted | — | — | |||||||
Exercised | — | — | |||||||
Forfeited | — | — | |||||||
Options outstanding, December 2013 | 20,808 | 16.67 | |||||||
Granted | — | — | |||||||
Exercised | — | — | |||||||
Forfeited | (20,808 | ) | 16.67 | ||||||
Options outstanding, December 2014 | — | — | |||||||
At December 31, 2014, there are no stock options outstanding. | |||||||||
HopFed Bancorp Long Term Incentive Plans | |||||||||
On February 18, 2004, the Board of Directors of the Company adopted the HopFed Bancorp, Inc. 2004 Long Term Incentive Plan (the Plan), which was subsequently approved at the 2004 Annual Meeting of Stockholders. Under the Plan, the Compensation Committee has discretionary authority to grant up to 200,000 shares in the form of restricted stock grants, options, and stock appreciation rights to such employees, directors and advisory directors as the committee shall designate. The grants vest in equal installments over a four-year period. Grants may vest immediately upon specific events, including a change of control of the Company, death or disability of award recipient, and termination of employment of the recipient by the Company without cause. | |||||||||
On March 20, 2013, the Board of Directors of the Company adopted the HopFed Bancorp, Inc. 2013 Long Term Incentive Plan (the Plan), which was subsequently approved at the 2013 Annual Meeting of Stockholders. Under the Plan, the Compensation Committee has discretionary authority to grant up to 300,000 shares in the form of restricted stock grants and options to such employees, directors and advisory directors as the committee shall designate. The grants vest in equal installments over a three or four year period. Grants may vest immediately upon specific events, including a change of control of the Company, death or disability of award recipient, and termination of employment of the recipient by the Company without cause. The 2004 Plan has now expired and no other shares may be issued under the 2004 Plan. | |||||||||
Awards are recognized as an expense to the Company in accordance with the vesting schedule. Awards in which the vesting is accelerated must be recognized as an expense immediately. Awards are valued at the closing stock price on the day the award is granted. For the year ended December 31, 2014, the Compensation Committee granted 22,378 shares of restricted stock with a market value of $260,000. For the year ended December 31, 2013, the Compensation Committee granted 21,559 shares of restricted stock with a market value of $232,000. For the year ended December 31, 2012, the Compensation Committee granted 10,392 shares of restricted stock with a market value of $73,800. The Company recognized $164,000, $115,000, and $99,000 in compensation expense in 2014, 2013 and 2012, respectively. | |||||||||
The remaining compensation expense to be recognized at December 31, 2014 is as follows: | |||||||||
Year Ending December 31, | Approximate Future | ||||||||
Compensation Expense | |||||||||
2015 | $ | 186 | |||||||
2016 | 133 | ||||||||
2017 | 46 | ||||||||
2018 | 3 | ||||||||
Total | $ | 368 | |||||||
HopFed Bancorp Long Term Incentive Plans | |||||||||
The Compensation Committee may make additional awards of restricted stock, thereby increasing the future expense related to this plan. The early vesting of restricted stock awards due to factors outlined in the award agreement may accelerate future compensation expenses related to the plan. However, the total amount of future compensation expense would not change as a result of an accelerated vesting of shares. At December 31, 2014, the Company has 256,290 restricted shares available from the HopFed Bancorp, Inc. 2013 Long Term Incentive Plan that may be awarded. | |||||||||
401(K) Plan | |||||||||
The Company has a 401(k) retirement program that is available to all employees who meet minimum eligibility requirements. Participants may generally contribute up to 15% of earnings, and in addition, management will match employee contributions up to 4%. In addition, the Company has chosen to provide all eligible employees an additional 4% of compensation without regards to the amount of the employee contribution. Expense related to Company contributions amounted to $769,000, $737,000, and $627,000 in 2014, 2013 and 2012, respectively. The reduction in expense related to the 401K program in 2014, 2013 and 2012 was the offset of approximately $43,000, $22,000 and $59,000, respectively, in Company contributions forfeited by employees who are no longer employed by the Company and have not met the full vesting requirements of the plan. See footnote 24 on subsequent events. | |||||||||
Deferred Compensation Plan | |||||||||
During the third quarter of 2002, the Company purchased assets and assumed the liabilities relating to a nonqualified deferred compensation plan for certain employees of the Fulton division. The Company owns single premium life insurance policies on the life of each participant and is the beneficiary of the policy value. When a participant retires, the benefits accrued for each participant will be distributed to the participant in equal installments for 15 years. The plan is now fully funded and no additional expenses will be recognized. The Deferred Compensation Plan also provides the participant with life insurance coverage, which is a percentage of the net death proceeds for the policy, if any, applicable to the participant. The original face value of all deferred compensation contracts was approximately $668,000. At December 31, 2014, the accrued value of all deferred compensation contacts is approximately $292,000. The Company is currently making cash remittances of approximately $12,000 per year on deferred compensation contracts. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | -13 | Income Taxes: | |||||||||||
The provision for income tax expense (benefit) for the years ended December 31, 2014, December 31, 2013, and December 31, 2012, consisted of the following: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current | |||||||||||||
Federal | $ | — | (32 | ) | 210 | ||||||||
State | 30 | 110 | 120 | ||||||||||
30 | 78 | 330 | |||||||||||
Deferred | |||||||||||||
Federal | (231 | ) | 566 | 487 | |||||||||
State | — | — | — | ||||||||||
(231 | ) | 566 | 487 | ||||||||||
($ | 201 | ) | 644 | 817 | |||||||||
Total income tax expense for the years ended December 31, 2014, 2013, and 2012 differed from the amounts computed by applying the federal income tax rate of 34 percent to income before income taxes as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Expected federal income tax expense at statutory tax rate | $ | 748 | 1,498 | 1,661 | |||||||||
Effect of nontaxable interest income | (724 | ) | (590 | ) | (575 | ) | |||||||
Effect of nontaxable bank owned life insurance income | (104 | ) | (120 | ) | (136 | ) | |||||||
Effect of QSCAB credit | (220 | ) | (220 | ) | (220 | ) | |||||||
State taxes on income, net of federal benefit | 84 | 73 | 79 | ||||||||||
Other tax credits | (80 | ) | (80 | ) | (64 | ) | |||||||
Non deductible expenses | 95 | 83 | 72 | ||||||||||
Total income tax expense | ($ | 201 | ) | 644 | 817 | ||||||||
Effective rate | (10.1 | %) | 14.6 | % | 16.7 | % | |||||||
The components of deferred taxes as of December 31, 2014, and December 31, 2013, are summarized as follows: | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Allowance for loan loss | $ | 2,116 | 2,952 | ||||||||||
Accrued expenses | 1,482 | 310 | |||||||||||
Intangible amortization | 981 | 1,184 | |||||||||||
Other | 287 | 275 | |||||||||||
Unrealized loss on items in comprehensive income | — | 736 | |||||||||||
Other real estate owned | 95 | 63 | |||||||||||
4,961 | 5,520 | ||||||||||||
Deferred tax liabilities: | |||||||||||||
FHLB stock dividends | (787 | ) | (787 | ) | |||||||||
Unrealized gain on items in comprehensive income | (1,832 | ) | — | ||||||||||
Depreciation and amortization | (81 | ) | (123 | ) | |||||||||
(2,700 | ) | (910 | ) | ||||||||||
Net deferred tax asset (liability) | $ | 2,261 | 4,610 | ||||||||||
The Small Business Protection Act of 1996, among other things, repealed the tax bad debt reserve method for thrifts effective for taxable years beginning after December 31, 1995. Commercial banks with assets greater than $500 million can no longer use the reserve method and may only deduct loan losses as they actually arise (i.e., the specific charge-off method). | |||||||||||||
The portion of a thrift’s tax bad debt reserve that is not recaptured (generally pre-1988 bad debt reserves) under the 1996 law is only subject to recapture at a later date under certain circumstances. These include stock repurchase redemptions by the thrift or if the thrift converts to a type of institution (such as a credit union) that is not considered a bank for tax purposes. However, no recapture was required due to the Bank’s charter conversion from a thrift to a commercial bank or if the bank was acquired by another bank. The Bank does not anticipate engaging in any transactions at this time that would require the recapture of its remaining tax bad debt reserves. Therefore, retained earnings at December 31, 2014, and December 31, 2013, includes approximately $4,027,000 which represents such bad debt deductions for which no deferred income taxes have been provided. | |||||||||||||
No valuation allowance for deferred tax assets was recorded at December 31, 2014, and December 31, 2013, as management believes it is more likely than not that all of the deferred tax assets will be realized because they were supported by recoverable taxes paid in prior years and expected future taxable income. There were no unrecognized tax benefits during any of the reported periods. The Corporation files income tax returns in the U.S. federal jurisdiction. The Company is no longer subject to U.S. federal income tax examinations by tax authorities for years before 2010. |
Real_Estate_and_Other_Assets_O
Real Estate and Other Assets Owned | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Banking and Thrift [Abstract] | |||||||||
Real Estate and Other Assets Owned | -14 | Real Estate and Other Assets Owned: | |||||||
The Company’s real estate and other assets owned balances at December 31, 2014, and December 31, 2013, represent properties and personal collateral acquired by the Bank through customer loan defaults. The property is recorded at the lower of cost or fair value less estimated cost of to sell at the date acquired with any loss recognized as a charge off through the allowance for loan loss account. Additional real estate and other asset losses may be determined on individual properties at specific intervals or at the time of disposal. Additional losses are recognized as a non-interest expense. As of December 31, 2014, and December 31, 2013, the composition of the Company’s balance in both real estate and other assets owned are as follows: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
One-to-four family mortgages | $ | 159 | 350 | ||||||
Land | 1,768 | 1,124 | |||||||
Non-residential real estate | — | 200 | |||||||
Total other assets owned | $ | 1,927 | 1,674 | ||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||
Commitments and Contingencies | -15 | Commitments and Contingencies: | |||||||
In the ordinary course of business, the Bank has various outstanding commitments and contingent liabilities that are not reflected in the accompanying consolidated financial statements. | |||||||||
The Bank had open loan commitments at December 31, 2014 and 2013 of approximately $45.2 million and $31.1 million, respectively. At December 31, 2014 and 2013, the Bank had no fixed rate loan commitments. Unused lines of credit were approximately $80.1 million and $74.7 million at December 31, 2014 and 2013, respectively. Also at December 31, 2014 and December 31, 2013, the Bank has unused consumer lines of credit tied to customer deposit accounts of $35.5 million and $20.7 million, respectively. | |||||||||
The Company and the Bank have agreed to enter into employment agreements with certain officers, which provide certain benefits in the event of their termination following a change in control of the Company or the Bank. The employment agreements provide for an initial term of three years. On each anniversary of the commencement date of the employment agreements, the term of each agreement may be extended for an additional year at the discretion of the Board. In the event of a change in control of the Company or the Bank, as defined in the agreement, the officers shall be paid an amount equal to two times the officer’s base salary as defined in the employment agreement. | |||||||||
The Company and the Bank have entered into commitments to rent facilities, purchase services and lease operating equipment that are non-cancelable. At December 31, 2014, future minimal purchase, lease and rental commitments were as follows: | |||||||||
Years Ending | |||||||||
31-Dec | |||||||||
2015 | $ | 5,599 | |||||||
2016 | 2,268 | ||||||||
2017 | 2,214 | ||||||||
2018 | 187 | ||||||||
2019 | 21 | ||||||||
Total | $ | 10,289 | |||||||
The Company incurred rental expenses of approximately $66,000, $54,000 and $61,000 for the years ended December 31, 2014, 2013, and 2012, respectively. | |||||||||
In the normal course of business, the Bank and Corporation have entered into operating contracts necessary to conduct the Company’s daily business. The most significant operating contract is for the Bank’s data processing services. The monthly cost associated with this contract is variable based on the number of accounts and usage but has an expected annual cost of approximately $1.2 million. The Bank has several ATM branding agreements with local businesses. These agreements allow the Bank to maintain a cash machine and signage in various locations for an annual cost of approximately $130,000. | |||||||||
The Company is partially self-insured for medical benefits provided to employees. Heritage Bank is named as the plan administrator for this plan and has retained Anthem Blue Cross Blue Shield (“Anthem”) to process claims and handle other duties of the plan. Anthem does not assume any liabilities as a third party administrator. The Bank purchased two stop-loss insurance policies to limit total medical claims from Anthem. The first specific stop-loss policy limits the Company’s cost in any one year to $90,000 per covered individual. The Company has purchased a second stop-loss policy that limits the aggregate claims for the Company in a given year at $1,783,289 based upon the Company’s current enrollment. The Company has established a liability for outstanding claims as well as incurred but unreported claims. While management uses what it believes are pertinent factors in estimating the plan liability, the actual liability is subject to change based upon unexpected claims experience and fluctuations in enrollment during the plan year. At December 31, 2014, and December 31, 2013, the Company recognized a liability for self-insured medical expenses of approximately $170,000 and $393,000, respectively. | |||||||||
The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit, standby letters of credit, and financial guarantees. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The contract or notional amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. | |||||||||
The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit and financial guarantees written is represented by the contractual notional amount of those instruments. The Company uses the same credit policies in making these commitments and conditional obligations as it does for on-balance-sheet instruments. | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Commitments to extend credit | $ | 45,177 | 31,103 | ||||||
Standby letters of credit | 462 | 322 | |||||||
Unused commercial lines of credit | 49,026 | 44,962 | |||||||
Unused home equity lines of credit | 29,843 | 29,733 | |||||||
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the counter-party. Collateral held varies but may include property, plant, and equipment and income-producing commercial properties. | |||||||||
Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing, and similar transactions. Most guarantees extend from one to two years. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. | |||||||||
In October of 2008, the Company entered into an interest rate swap agreement for a term of seven years and an amount of $10 million. The Bank will pay a fixed rate of 7.27% for seven years and receive an amount equal to the three-month London Interbank Lending Rate (Libor) plus 3.10%. The interest rate swap is classified as a cash flow hedge by the Bank and will be tested quarterly for effectiveness. At December 31, 2014, the cost of the Bank to terminate the cash flow hedge is approximately $390,000. The Bank, in the normal course of business, originates fixed rate mortgages that are sold to Freddie Mac. Upon tentative underwriting approval by Freddie Mac, the Bank issues a best effort commitment to originate a fixed rate first mortgage under specific terms and conditions that the Bank intends to sell to Freddie Mac. The Bank no longer assumes a firm commitment to originate fixed rate loans, thus eliminating the risk of having to deliver loans they did not close or pay commitment fees to make Freddie Mac whole. | |||||||||
The Company is subject to various claims and legal actions that have arisen in the course of conducting business. Management does not expect the ultimate disposition of these matters to have a material adverse impact on the Company’s financial statements. | |||||||||
Regulatory_Matters
Regulatory Matters | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||||||||||||||||||
Regulatory Matters | -16 | Regulatory Matters: | |||||||||||||||||||||||||||||||
Prior to June 5, 2013, the Corporation was a federally chartered thrift holding company regulated by the Federal Reserve Bank and the bank subsidiary was regulated by the Office of the Comptroller of the Currency. On June 5, 2013, the Bank converted its charter to a Kentucky non-member state chartered commercial bank. The Corporation is now a commercial bank holding company and, as such, is subject to regulation, examination and supervision by the Federal Reserve Bank. The Corporation’s wholly owned bank subsidiary is a state chartered commercial bank supervised by the Kentucky Department of Financial Institutions and the Federal Deposit Insurance Corporation. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Corporation’s and the Bank’s financial statements. | |||||||||||||||||||||||||||||||||
Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. | |||||||||||||||||||||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of tangible and core capital (as defined in the regulations) to adjusted total assets (as defined), and of total capital (as defined) and Tier 1 to risk weighted assets (as defined). Management believes, as of December 31, 2014, and 2013, that the Bank meets all capital adequacy requirements to which it is subject. | |||||||||||||||||||||||||||||||||
The Company’s consolidated capital ratios and the Bank’s actual capital amounts and ratios as of December 31, 2014, and December 31, 2013, are presented below: | |||||||||||||||||||||||||||||||||
Consolidated | Bank | Required for Capital | Required to be | ||||||||||||||||||||||||||||||
Actual | Actual | Adequacy Purposes | Categorized as Well | ||||||||||||||||||||||||||||||
Capitalized Under | |||||||||||||||||||||||||||||||||
Prompt Corrective | |||||||||||||||||||||||||||||||||
Action Provisions | |||||||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||||||||||
Tier 1 Leverage capital to adjusted total assets | $ | 104,813 | 11.1 | % | $ | 102,240 | 11 | % | $ | 37,252 | 4 | % | $ | 46,567 | 5 | % | |||||||||||||||||
Total capital to risk weighted assets | $ | 111,102 | 18 | % | $ | 108,529 | 17.6 | % | $ | 46,576 | 8 | % | $ | 58,220 | 10 | % | |||||||||||||||||
Tier 1 capital to risk weighted assets | $ | 104,813 | 19.1 | % | $ | 102,240 | 18.6 | % | N/A | N/A | $ | 55,878 | 6 | % | |||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||||||
Tier 1 Leverage capital to adjusted total assets | $ | 107,016 | 11.2 | % | $ | 101,720 | 10.8 | % | $ | 37,819 | 4 | % | $ | 47,274 | 5 | % | |||||||||||||||||
Total capital to risk weighted assets | $ | 114,706 | 18.6 | % | $ | 109,410 | 17.8 | % | $ | 49,138 | 8 | % | $ | 61,423 | 10 | % | |||||||||||||||||
Tier 1 capital to risk weighted assets | $ | 107,016 | 17.4 | % | $ | 101,720 | 16.6 | % | N/A | N/A | $ | 36,854 | 6 | % |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Equity [Abstract] | |||||
Stockholders' Equity | -17 | Stockholders’ Equity: | |||
The Company’s sources of income and funds for dividends to its stockholders are earnings on its investments and dividends from the Bank. The Bank’s primary regulator, the KDFI, has regulations that impose certain restrictions on payment of dividends to the Corporation. Current regulations of the KDFI allow the Bank (based upon its current capital level and supervisory status assigned by the KDFI) to pay a dividend as long as the Bank subsidiary maintains an appropriate Tier 1 Capital ratio. Furthermore, for the Bank to pay a dividend to the Corporation without regulatory approval, the dividend is limited to the total amount of the Bank’s current year net income plus the Bank’s net income of the prior two years less any previous dividends paid by the Bank to the Corporation during that time. At December 31, 2014, the Bank was unable to pay additional dividends to the without regulatory approval. Given the prospects for the approval of Basel III, the Company anticipates that in practice it will need to maintain a minimum Tier 1 Capital ratio of 8.50% at its bank subsidiary to continue to pay dividends to common shareholders and will structure its business plan to maintain a Tier 1 Capital ratio at the Bank level at or above 9.00%. | |||||
Federal Reserve regulations also place restrictions after the conversion on the Company with respect to repurchases of its common stock. With prior notice to the Federal Reserve, the Company is allowed to repurchase its outstanding shares. In August 2006, under the supervision of the OTS, the Company announced that it replaced a previously announced stock buyback plan with a new plan to purchase up to 125,000 shares of common stock over the next two years. Under the plan that expired September 30, 2008, the Company purchased 106,647 shares of common stock at an average price of $15.36 per share. The Company reissued 112,639 shares of Treasury Stock as part of the stock offering discussed below. | |||||
On August 29, 2013, the Company’s Board of Directors approved the commencement of a new stock repurchase program of up to 375,000 shares of the Company’s, or approximately 5% of total shares outstanding. On October 28, 2014, the Company announced it may purchase an additional 300,000 shares of common stock. The Company will conduct repurchases through open market transactions or in privately negotiated transactions that may be made from time to time depending on market conditions and other factors. At December 31, 2014, the Company holds a total of 778,383 shares of treasury stock at an average price of $12.11 per share. | |||||
On December 12, 2008, HopFed Bancorp issued 18,400 shares of preferred stock to the United States Treasury (Treasury) for $18,400,000 pursuant to the Capital Purchase Program. The Company issued a Warrant to the Treasury as a condition to its participation in the Capital Purchase Program. The Warrant had an exercise price of $11.32 each and was immediately exercisable, giving the Treasury the right to purchase 243,816 shares of the Company’s Common Stock. The warrants expired ten years from the date of issuance. The Preferred Stock had no stated maturity and was non-voting, other than having class voting rights on certain matters, and pays cumulative dividends quarterly at a rate of 5% per year for the first five years and 9% thereafter. As a result of a 2% stock dividend paid to shareholders of record at September 30, 2010, total warrants issued was adjusted to 248,692 and the warrant strike price was adjusted to $11.098. As a result of a 2% stock dividend paid to shareholders of record at October 3, 2011, total warrants issued was adjusted to 253,667 and the warrant strike price was adjusted to $10.88. | |||||
On December 19, 2012, HopFed Bancorp repurchased the 18,400 shares of Preferred Stock previously sold to the Treasury at par plus accrued dividends. The repurchase was accomplished with the assistance of a $6.0 million dividend paid to the Company from the Bank. On January 11, 2013, the Company repurchased the warrant from the Treasury for $256,257. | |||||
On September 16, 2010, and September 21, 2011, respectively, the Company declared a 2% stock dividend payable to shareholders of record on September 30, 2010 and October 3, 2011. The stock dividend was paid on October 18, 2010, and October 18, 2011, resulting in the issuance of 143,458 shares of common stock in October of 2010 and 146,485 shares of common stock in October 2011. As discussed earlier, both the price and amount of all outstanding options and common stock warrants were adjusted accordingly. | |||||
The common stock warrants were assigned a value of $2.28 per warrant, or $555,900. As a result, the value of the warrants was recorded as a discount on the preferred stock and was accreted as a reduction in net income available for common shareholders. In 2012, the Company accelerated the last year of our warrant accretion, recognizing $222,360 of accretion, due to the repurchase of all preferred stock from the Treasury and our stated plans to attempt to repurchase the warrant. For the purposes of these calculations, the fair value of the common stock warrants was estimated using the following assumptions: | |||||
• Risk free rate | 2.6 | % | |||
• Expected life of warrants | 10 years | ||||
• Expected dividend yield | 3.5 | % | |||
• Expected volatility | 26.5 | % | |||
• Weighted average fair value | $ | 2.28 | |||
The Company’s computation of expected volatility is based on the weekly historical volatility. The risk free rate was the approximate rate of the ten year treasury at the end of November 2008. | |||||
The Company has paid all interest payments due on HopFed Capital Trust 1. If interest payments to HopFed Capital Trust 1 are not made in a timely manner, the Company is prohibited from making cash dividend payments to its common shareholders. | |||||
In July 2013, the Federal Reserve Board and the FDIC approved final rules that substantially amend the regulatory risk-based capital rules applicable to Heritage Bank USA, Inc. and HopFed Bancorp, Inc. The final rules implement the regulatory capital reforms of the Basel Committee on Banking Supervision reflected in “Basel III: A Global Regulatory Framework for More Resilient Banks and Banking Systems” (Basel III) and changes required by the Dodd-Frank Act. | |||||
Under these rules, the leverage and risk-based capital ratios of bank holding companies may not be lower than the leverage and risk-based capital ratios for insured depository institutions. The final rules implementing the Basel III regulatory capital reforms will become effective as to the Bank and Corporation on January 1, 2015, and include new minimum risk-based capital and leverage ratios. Moreover, these rules refine the definition of what constitutes “capital” for purposes of calculating those ratios, including the definitions of Tier 1 capital and Tier 2 capital. | |||||
The new minimum capital level requirements applicable to bank holding companies and banks subject to the rules are: | |||||
• | a new common equity Tier 1 capital ratio of 4.5%; | ||||
• | a Tier 1 risk-based capital ratio of 6% (increased from 4%) | ||||
• | a total risk-based capital ratio of 8% (unchanged from current rules) | ||||
• | a Tier 1 leverage ratio of 4% for all institutions. | ||||
The rules also establish a “capital conservation buffer” of 2.5% (to be phased in over three years) above the new regulatory minimum risk-based capital ratios, and result in the following minimum ratios once the capital conservation buffer is fully phased in: | |||||
• | a common equity Tier 1 risk-based capital ratio of 7.0% | ||||
• | a Tier 1 risk-based capital ratio of 8.5% | ||||
• | a total risk-based capital ratio of 10.5%. | ||||
At December 31, 2014, the Bank and Corporation met all fully phased capital requires of Basel III, including the capital conservation buffer of 2.5%. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Earnings Per Share | -18 | Earnings Per Share: | |||||||||||
Earnings per share of common stock are based on the weighted average number of basic shares and dilutive shares outstanding during the year. Common stock warrants outstanding are not included in the dilutive earnings per share computations because they would be anti-dilutive. | |||||||||||||
The following is a reconciliation of weighted average common shares for the basic and dilutive earnings per share computations: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Basic earnings per share: | |||||||||||||
Weighted average common shares | 7,306,078 | 7,483,606 | 7,486,445 | ||||||||||
Adjustment for stock dividend | — | — | — | ||||||||||
Weighted average common shares | 7,306,078 | 7,483,606 | 7,486,445 | ||||||||||
Dilutive effect of stock options | — | — | — | ||||||||||
Adjustment for stock dividend | — | — | — | ||||||||||
Weighted average common and incremental shares | 7,306,078 | 7,483,606 | 7,486,445 | ||||||||||
Variable_Interest_Entities
Variable Interest Entities | 12 Months Ended | |
Dec. 31, 2014 | ||
Equity Method Investments and Joint Ventures [Abstract] | ||
Variable Interest Entities | -19 | Variable Interest Entities: |
Under ASC 810, the Company is deemed to be the primary beneficiary and required to consolidate a variable interest entity (VIE) if it has a variable interest in the VIE that provides it with a controlling financial interest. For such purposes, the determination of whether a controlling financial interest exists is based on whether a single party has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. ASC 810 requires continual reconsideration of conclusions reached regarding which interest holder is a VIE’s primary beneficiary and disclosures surrounding those VIE’s which have not been consolidated. The consolidation methodology provided in this footnote as of December 31, 2014 and 2013 has been prepared in accordance with ASC 810. At December 31, 2014, the Company did not have any consolidated variable interest entities to disclose but did have a commitment to a low income housing partnership and issued trust preferred securities. |
Condensed_Parent_Company_Only_
Condensed Parent Company Only Financial Statements | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||
Condensed Parent Company Only Financial Statements | -20 | Condensed Parent Company Only Financial Statements: | |||||||||||
The following condensed balance sheets as of December 31, 2014, and December 31, 2013, and condensed statements of income and cash flows for the years ended December 31, 2014, 2013 and 2012 of the parent company only should be read in conjunction with the consolidated financial statements and the notes thereto. | |||||||||||||
Condensed Balance Sheets: | |||||||||||||
2014 | 2013 | ||||||||||||
Assets: | |||||||||||||
Cash and due from banks | $ | 2,932 | 5,199 | ||||||||||
Investment in subsidiary | 106,088 | 100,914 | |||||||||||
Prepaid expenses and other assets | 534 | 1,078 | |||||||||||
Total assets | $ | 109,554 | $ | 107,191 | |||||||||
Liabilities and equity | |||||||||||||
Liabilities | |||||||||||||
Unrealized loss on derivative | $ | 390 | 750 | ||||||||||
Dividends payable - common | 301 | 325 | |||||||||||
Interest payable | 87 | 87 | |||||||||||
Other liabilities | 64 | 2 | |||||||||||
Subordinated debentures | 10,310 | 10,310 | |||||||||||
Total liabilities | 11,152 | 11,474 | |||||||||||
Equity: | |||||||||||||
Preferred stock | — | — | |||||||||||
Common stock | 79 | 79 | |||||||||||
Additional paid-in capital | 58,466 | 58,302 | |||||||||||
Retained earnings | 45,729 | 44,694 | |||||||||||
Treasury stock- common stock | (9,429 | ) | (5,929 | ) | |||||||||
Accumulated other | 3,557 | (1,429 | ) | ||||||||||
comprehensive income | |||||||||||||
Total equity | 98,402 | 95,717 | |||||||||||
Total liabilities and equity | $ | 109,554 | 107,191 | ||||||||||
Condensed Statements of Income: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Interest and dividend income: | |||||||||||||
Dividend income from subsidiary Bank | $ | 2,600 | 5,500 | 6,000 | |||||||||
Income on agency securities | — | — | 56 | ||||||||||
Total interest and dividend income | 2,600 | 5,500 | 6,056 | ||||||||||
Interest expense | 737 | 733 | 745 | ||||||||||
Non-interest expenses | 546 | 684 | 584 | ||||||||||
Total expenses | 1,283 | 1,417 | 1,329 | ||||||||||
Income (loss) before income taxes and equity in undistributed earnings of subsidiary | 1,317 | 4,083 | 4,727 | ||||||||||
Income tax benefits | (459 | ) | (496 | ) | (367 | ) | |||||||
Income (loss) before equity in undistributed earnings of subsidiary | 1,776 | 4,579 | 5,094 | ||||||||||
Equity in (distribution in excess of) earnings of subsidiary | 423 | (817 | ) | (1,025 | ) | ||||||||
Net income | 2,199 | 3,762 | 4,069 | ||||||||||
Preferred stock dividend and warrant accretion | — | — | (1,229 | ) | |||||||||
Income available to common shareholders | $ | 2,199 | 3,762 | 2,840 | |||||||||
Condensed Statements of Cash Flows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Cash flows from operating activities: | |||||||||||||
Net income | $ | 2,199 | 3,762 | 4,069 | |||||||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities | |||||||||||||
Equity in undistributed earnings of subsidiary | (423 | ) | 817 | 1,025 | |||||||||
Amortization of restricted stock | 164 | 115 | 99 | ||||||||||
Increase (decrease) in: | |||||||||||||
Current income taxes payable | 200 | (355 | ) | 74 | |||||||||
Accrued expenses | 280 | (142 | ) | (1 | ) | ||||||||
Net cash (used in) provided by operating activities: | 2,420 | 4,197 | 5,266 | ||||||||||
Cash flows for investing activities: | |||||||||||||
Net cash flow used in investing activities | — | — | — | ||||||||||
Cash flows from financing activities: | |||||||||||||
Purchase of preferred stock - treasury | — | — | (18,400 | ) | |||||||||
Purchase of common stock - treasury | (3,500 | ) | (853 | ) | — | ||||||||
Purchase of common stock warrant | — | (257 | ) | — | |||||||||
Dividends paid on preferred stock | — | — | (1,007 | ) | |||||||||
Dividends paid on common stock | (1,187 | ) | (751 | ) | (598 | ) | |||||||
Net cash (used in) provided by financing activities | (4,687 | ) | (1,861 | ) | (20,005 | ) | |||||||
Net increase (decrease) in cash | (2,267 | ) | 2,336 | (14,739 | ) | ||||||||
Cash and due from banks at beginning of year | 5,199 | 2,863 | 17,602 | ||||||||||
Cash and due from banks at end of year | $ | 2,932 | 5,199 | 2,863 | |||||||||
Investments_in_Affiliated_Comp
Investments in Affiliated Companies | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |||||||||||||||||
Investments in Affiliated Companies | -21 | Investments in Affiliated Companies (Unaudited): | |||||||||||||||
Investments in affiliated companies accounted for under the equity method consist of 100% of the common stock of HopFed Capital Trust I (the Trust), a wholly owned statutory business trust. The Trust was formed on September 25, 2003. Summary financial information for the HopFed Capital Trust 1 is as follows: | |||||||||||||||||
Summary Balance Sheets | |||||||||||||||||
December. 31, | December. 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Asset – investment in subordinated debentures issued by HopFed Bancorp, Inc. | $ | 10,310 | 10,310 | ||||||||||||||
Liabilities | $ | — | — | ||||||||||||||
Stockholders’ equity: | |||||||||||||||||
Trust preferred securities | 10,000 | 10,000 | |||||||||||||||
Common stock (100% owned by HopFed Bancorp, Inc.) | 310 | 310 | |||||||||||||||
Total stockholder’s equity | 10,310 | 10,310 | |||||||||||||||
Total liabilities and stockholder’s equity | $ | 10,310 | 10,310 | ||||||||||||||
Summary Statements of Income | |||||||||||||||||
Years Ended December. 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Income – interest income from subordinated debentures issued by HopFed Bancorp, Inc. | $ | 348 | 353 | ||||||||||||||
Net income | $ | 348 | 353 | ||||||||||||||
Summary Statements of Stockholder’s Equity | |||||||||||||||||
Trust | Common | Retained | Total | ||||||||||||||
Preferred | Stock | Earnings | Stockholder’s | ||||||||||||||
Securities | Equity | ||||||||||||||||
Beginning balances, January 1, 2014 | $ | 10,000 | 310 | — | 10,310 | ||||||||||||
Retained earnings: | |||||||||||||||||
Net income | — | — | 348 | 348 | |||||||||||||
Dividends: | |||||||||||||||||
Trust preferred securities | — | — | (337 | ) | (337 | ) | |||||||||||
Common dividends paid to HopFed Bancorp, Inc. | — | — | (11 | ) | (11 | ) | |||||||||||
Total retained earnings | — | — | — | — | |||||||||||||
Ending balances, December 31, 2014 | $ | 10,000 | 310 | — | 10,310 | ||||||||||||
Quarterly_Results_of_Operation
Quarterly Results of Operations | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Results of Operations | -22 | Quarterly Results of Operations: (Unaudited) | |||||||||||||||
Summarized unaudited quarterly operating results for the year ended December 31, 2014: | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
December 31, 2014: | |||||||||||||||||
Interest and dividend income | $ | 8,658 | 8,734 | 8,994 | 8,294 | ||||||||||||
Interest expense | 2,338 | 2,354 | 2,186 | 2,001 | |||||||||||||
Net interest income | 6,320 | 6,380 | 6,808 | 6,293 | |||||||||||||
Provision for loan losses | 380 | (261 | ) | (892 | ) | (1,500 | ) | ||||||||||
Net interest income after provision for loan losses | 5,940 | 6,641 | 7,700 | 7,793 | |||||||||||||
Noninterest income | 1,598 | 1,945 | 2,393 | 1,904 | |||||||||||||
Noninterest expense | 7,324 | 7,447 | 7,563 | 11,582 | |||||||||||||
Income (loss) before income taxes | 214 | 1,139 | 2,530 | (1,885 | ) | ||||||||||||
Income tax expense (benefit) | (140 | ) | 214 | 577 | (852 | ) | |||||||||||
Net income (loss) | $ | 354 | 925 | 1,953 | (1,033 | ) | |||||||||||
Basic earnings (loss) per share | $ | 0.05 | 0.13 | 0.27 | (0.14 | ) | |||||||||||
Diluted earnings (loss) per share | $ | 0.05 | 0.13 | 0.27 | (0.14 | ) | |||||||||||
Weighted average shares outstanding: | |||||||||||||||||
Basic | 7,416,716 | 7,376,726 | 7,265,597 | 7,165,957 | |||||||||||||
Diluted | 7,416,716 | 7,376,726 | 7,265,597 | 7,165,957 | |||||||||||||
Summarized unaudited quarterly operating results for the year ended December 31, 2013: | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
December 31, 2013: | |||||||||||||||||
Interest and dividend income | $ | 9,305 | 8,994 | 8,795 | 8,763 | ||||||||||||
Interest expense | 2,914 | 2,794 | 2,496 | 2,377 | |||||||||||||
Net interest income | 6,391 | 6,200 | 6,299 | 6,386 | |||||||||||||
Provision for loan losses | 376 | 406 | 426 | 396 | |||||||||||||
Net interest income after provision for loan losses | 6,015 | 5,794 | 5,873 | 5,990 | |||||||||||||
Noninterest income | 2,483 | 2,828 | 1,769 | 2,292 | |||||||||||||
Noninterest expense | 7,274 | 7,124 | 6,984 | 7,256 | |||||||||||||
Income before income taxes | 1,224 | 1,498 | 658 | 1,026 | |||||||||||||
Income tax expense (benefit) | 240 | 332 | 122 | (50 | ) | ||||||||||||
Net income | $ | 984 | 1,166 | 536 | 1,076 | ||||||||||||
Basic earnings per share | $ | 0.13 | 0.16 | 0.07 | 0.14 | ||||||||||||
Diluted earnings per share | $ | 0.13 | 0.16 | 0.07 | 0.14 | ||||||||||||
Weighted average shares outstanding: | |||||||||||||||||
Basic | 7,488,445 | 7,488,906 | 7,483,582 | 7,430,970 | |||||||||||||
Diluted | 7,488,445 | 7,488,906 | 7,483,582 | 7,430,970 |
Comprehensive_Income
Comprehensive Income | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Equity [Abstract] | |||||||||||||
Comprehensive Income | -23 | Comprehensive Income: | |||||||||||
FASB ASC 220, Comprehensive Income, established standards for reporting comprehensive income. Comprehensive income includes net income and other comprehensive net income which is defined as non-owner related transactions in equity. The following table sets forth the amounts of other comprehensive income (loss) included in stockholders’ equity along with the related tax effect for the years ended December 31, 2014, 2013 and 2012. | |||||||||||||
Pre-Tax | Tax Benefit | Net of Tax | |||||||||||
Amount | (Expense) | Amount | |||||||||||
December 31, 2014: | |||||||||||||
Unrealized holding gains (losses) on: | |||||||||||||
Available for sale securities | $ | 7,773 | (2,643 | ) | 5,130 | ||||||||
Derivatives | 359 | (122 | ) | 237 | |||||||||
Reclassification adjustments for gains on: | |||||||||||||
Available for sale securities | (578 | ) | 197 | (381 | ) | ||||||||
$ | 7,554 | (2,568 | ) | 4,986 | |||||||||
December 31, 2013: | |||||||||||||
Unrealized holding gains on: | |||||||||||||
Available for sale securities | ($ | 16,012 | ) | 5,444 | (10,568 | ) | |||||||
Derivatives | 376 | (128 | ) | 248 | |||||||||
Reclassification adjustments for gains on: | |||||||||||||
Available for sale securities | (1,661 | ) | 565 | (1,096 | ) | ||||||||
Other than temporary impairment | 400 | (136 | ) | 264 | |||||||||
($ | 16,897 | ) | 5,745 | (11,152 | ) | ||||||||
December 31, 2012: | |||||||||||||
Unrealized holding gains on: | |||||||||||||
Available for sale securities | $ | 5,071 | (1,723 | ) | 3,348 | ||||||||
Derivatives | 171 | (58 | ) | 113 | |||||||||
Reclassification adjustments for gains on: | |||||||||||||
Available for sale securities | (1,671 | ) | 567 | (1,104 | ) | ||||||||
$ | 3,571 | (1,214 | ) | 2,357 | |||||||||
Subsequent_Events
Subsequent Events | 12 Months Ended | |
Dec. 31, 2014 | ||
Subsequent Events [Abstract] | ||
Subsequent Events | -24 | Subsequent Events: |
On January 20, 2015, the Kentucky Department of Financial Institutions approved a special request of the Bank’s Board of Directors to pay a $16.0 million dividend to the Company. The approval for the Bank to pay the dividend is valid for twelve months. The Bank and Corporation expect to be well capitalized and meet all capital requirements under Basel III after the payment of this dividend. | ||
On February 2, 2015, the Bank paid an $8.3 million dividend to the Corporation. The dividend proceeds were used to make two purchases of treasury stock, one for 80,000 shares and one for 534,943 shares. | ||
On February 27, 2015, the Company implemented the HopFed Bancorp, Inc. 2015 Employee Stock Ownership Plan (the “ESOP”) which covers substantially all employees who are at least 21 years old with at least one year of employment with the Corporation and Heritage Bank USA, Inc. (the “Bank”), the Company’s commercial bank subsidiary. Employer contributions to the ESOP are expected to replace matching and profit sharing contributions to the Heritage Bank 401(k) Plan sponsored by the Bank. The ESOP has three individuals who have been selected by the Company to serve as trustees. A directed corporate trustee has also been appointed. The ESOP will be administered by a committee (the “Committee”) composed of three or more individuals selected by the Company or its designee. Until the Committee is appointed, the trustees will carry out the duties and responsibilities of the Committee. | ||
The 2015 ESOP has filed a Notice of Change of Control with the Federal Reserve Bank of St. Louis. The notice is required for the 2015 ESOP to exceed 9.9% ownership of the Company’s stock. If approved, the 2015 ESOP may elect to acquire up to 1.0 million shares of the Company’s treasury stock. Beginning in 2015, the Company will utilize the 2015 ESOP as the primary retirement benefit for its employees. The Company will continue to offer a 401-K plan for its employees but will no longer contribute for the benefit of its employees. | ||
On March 2, 2015, the ESOP entered into a loan agreement with the Corporation to borrow up to $13,500,000 to purchase up to 1,000,000 shares common stock (“ESOP Loan”). On the same date, the ESOP purchased an initial block of 600,000 shares from the Corporation at a cost of $7,884,000 using the proceeds of the ESOP Loan. In accordance with the ESOP Loan documents, the common stock purchased by the ESOP serves as collateral for the ESOP Loan. The ESOP Loan will be repaid principally from discretionary contributions by the Bank to the ESOP over a period ending no later than December 31, 2040. The ESOP Loan documents provide that the ESOP Loan may be repaid over a shorter period, without penalty for prepayments. The interest rate on the ESOP Loan is 3.0%. Shares purchased by the ESOP will be held in a suspense account for allocation among participants as the ESOP Loan is repaid. The ESOP shares are dividend paying. Dividends on the shares will be used to repay the ESOP Loan. | ||
On January 1, 2015, FFKY was sold and merged into Community Bank Shares of Indiana, Inc. (“CBIN”) with CBIN being the surviving Company. On January 20, 2015, the Company was informed in writing by Wilmington Trust, trustee for the debentures, that CBIN terminated the interest extension period of the debenture by making a deposit equal to all amounts due, including compounded interest, with Wilmington Trust. The Company expects to receive approximately $871,000 of past due interest on March 16, 2015. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Accounting Policies [Abstract] | |||||
Nature of Operations and Customer Concentration | Nature of Operations and Customer Concentration | ||||
HopFed Bancorp, Inc. (the Corporation) is a bank holding company incorporated in the state of Delaware and headquartered in Hopkinsville, Kentucky. The Corporation’s principal business activities are conducted through it’s wholly-owned subsidiary, Heritage Bank USA, Inc. (the Bank), a Kentucky state chartered commercial bank engaged in the business of accepting deposits and providing mortgage, consumer, construction and commercial loans to the general public through its retail banking offices. The Bank’s business activities are primarily limited to western Kentucky and middle and western Tennessee. The Bank is subject to competition from other financial institutions. Deposits at the Bank are insured up to the applicable limits by the Federal Deposit Insurance Corporation (FDIC). | |||||
As part of the enactment of the Dodd-Frank Financial Reform Act of 2010, the Corporation and Bank’s former regulator, the Office of Thrift Supervision, was eliminated on July 21, 2011. Prior to June 5, 2013, the Bank was subject to comprehensive regulation, examination and supervision by the Office of Comptroller of the Currency (OCC) and the FDIC. After June 5, 2013, the Bank’s legal name was changed to Heritage Bank USA, Inc. and the Bank was granted a Kentucky commercial bank charter and is now supervised by the Kentucky Department of Financial Institutions (“KDFI”) and the Federal Deposit Insurance Corporation (“FDIC”). Supervision of the Corporation continues to be conducted by the Federal Reserve Bank of Saint Louis (“FED”). | |||||
A substantial portion of the Bank’s loans are secured by real estate in the western Kentucky and middle and west Tennessee markets. In addition, foreclosed real estate is located in this same market. Accordingly, the ultimate ability to collect on a substantial portion of the Bank’s loan portfolio and the recovery of a substantial portion of the carrying amount of foreclosed real estate is susceptible to changes in local market conditions. | |||||
Principles of Consolidation | Principles of Consolidation | ||||
The consolidated financial statements include the accounts of the Corporation, the Bank and its wholly-owned subsidiary Fall & Fall Insurance (collectively the Company) for all periods. The Company sold all significant assets of Fall & Fall on December 31, 2013, to an unrelated third party. Significant inter-company balances and transactions have been eliminated in consolidation. | |||||
Accounting | Accounting | ||||
The accounting and reporting policies of the Company are in accordance with accounting principles generally accepted in the United States of America and conform to general practices in the banking industry. | |||||
The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity (VIE) under accounting principles generally accepted in the United States. Voting interest entities in which the total equity investment is a risk is sufficient to enable the entity to finance itself independently and provides the equity holders with the obligation to absorb losses, the right to receive residual returns and the right to make decision about the entity’s activities. The Company consolidates voting interest entities in which it has all, or at least a majority of, the voting interest. As defined in applicable accounting standards, VIE’s are entities in which it has all, or at least a majority of, the voting interest. A controlling financial interest in a VIE is present when an enterprise has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and an obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The subsidiaries, HopFed Capital Trust I and Fort Webb LP, LLC are VIEs for which the Company is not the primary beneficiary. Accordingly, these accounts are not included in the Company’s consolidated financial statements. | |||||
The Company has evaluated subsequent events for potential impact and disclosure through the issue date of these consolidated financial statements. | |||||
Estimates | Estimates | ||||
In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheets and revenues and expenses for each year. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. In connection with the determination of the allowances for loan losses and foreclosed real estate, management obtains independent appraisals for significant collateral. | |||||
Cash and Cash Equivalents | Cash and Cash Equivalents | ||||
Cash and cash equivalents are defined as cash on hand, amounts due on demand from commercial banks, interest-earning deposits in other financial institutions and federal funds sold with maturities of three months or less. | |||||
Securities | Securities | ||||
The Company reports debt, readily-marketable equity, mortgage-backed and mortgage related securities in one of the following categories: (i) “trading” (held for current resale) which are to be reported at fair value, with unrealized gains and losses included in earnings; and (ii) “available for sale” (all other debt, equity, mortgage-backed and mortgage related securities) which are to be reported at fair value, with unrealized gains and losses reported net of tax as a separate component of stockholders’ equity. At the time of new security purchases, a determination is made as to the appropriate classification. Realized and unrealized gains and losses on trading securities are included in net income. Unrealized gains and losses on securities available for sale are recognized as direct increases or decreases in stockholders’ equity, net of any tax effect. Cost of securities sold is recognized using the specific identification method. | |||||
Interest income on securities is recognized as earned. The Company purchases many agency bonds at either a premium or discount to its par value. Premiums and discounts on agency bonds are amortized using the net interest method. For callable bonds purchased at a premium, the premium is amortized to the first call date. If the bond is not called on that date, the premium is fully amortized and the Company recognizes an increase in the net yield of the investment. The Company has determined that callable bonds purchased at a premium have a high likelihood of being called, and the decision to amortize premiums to their first call is a more conservative method of recognizing income and any variance from amortizing to contractual maturity is not material to the consolidated financial statements. For agency bonds purchased at a discount, the discount is accreted to the final maturity date. For callable bonds purchased at discount and called before maturity, the Company recognizes a gain on the sale of securities. The Company amortizes premiums and accretes discounts on mortgage back securities and collateralized mortgage obligations based on the securities three month average prepayment speed. | |||||
Other Than Temporary Impairment | Other Than Temporary Impairment | ||||
A decline in the fair value of any available-for-sale security below cost that is deemed to be other-than-temporary results in a reduction in the carrying amount to fair value. To determine whether impairment is other-than-temporary, management considers whether the entity expects to recover the entire amortized cost basis of the security by reviewing the present value of the future cash flows associated with the security. The shortfall of the present value of the cash flows expected to be collected in relation to the amortized cost basis is referred to as a credit loss. If a credit loss is identified, management then considers whether it is more-likely-than-not that the Company will be required to sell the security prior to recovery. If management concludes that it is not more-likely-than-not that it will be required to sell the security, then the security is not other-than-temporarily impaired and the shortfall is recorded as a component of equity. If the security is determined to be other-than-temporarily impaired, the credit loss is recognized as a charge to earnings and a new cost basis for the security is established. | |||||
Other Securities | Other Securities | ||||
Other securities which are not actively traded and may be restricted, such as Federal Home Loan Bank (FHLB) stock are recognized at cost, as the value is not considered impaired. | |||||
Loans Receivable | Loans Receivable | ||||
Loans receivable are stated at unpaid principal balances, less the allowance for loan losses and deferred loan cost. The Statement of Financial Accounting Standards ASC 310-20, Nonrefundable Fees and Other Costs Associated with Originating or Acquiring Loans and Initial Direct Costs of Leases, requires the recognition of loan origination fee income over the life of the loan and the recognition of certain direct loan origination costs over the life of the loan. | |||||
Uncollectible interest on loans that are contractually past due is charged off, or an allowance is established based on management’s periodic evaluation. The Company charges off loans after, in management’s opinion, the collection of all or a large portion of the principal or interest is not collectable. The allowance is established by a charge to interest income equal to all interest previously accrued, and income is subsequently recognized only to the extent that cash payments are received while the loan is classified as non-accrual, when the loan is ninety days past due. Loans may be returned to accrual status when all principal and interest amounts contractually due (including arrearages) are reasonably assured of repayment within an acceptable period of time, and there is a sustained period of repayment performance by the borrower in accordance with the contractual terms of interest and principal. | |||||
The Company provides an allowance for loan losses and includes in operating expenses a provision for loan losses determined by management. Management’s periodic evaluation of the adequacy of the allowance is based on the Company’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, and current economic conditions. Management’s estimate of the adequacy of the allowance for loan loss can be classified as either a reserve for currently classified loans or estimates of future losses in the current loan portfolio. | |||||
Loans are considered to be impaired when, in management’s judgment, principal or interest is not collectible according to the contractual terms of the loan agreement. When conducting loan evaluations, management considers various factors such as historical loan performance, the financial condition of the borrower and adequacy of collateral to determine if a loan is impaired. Impaired loans and loans classified as Troubled Debt Restructurings (“TDR’s”) may be classified as either substandard or doubtful and reserved for based on individual loans risk for loss. Loans not considered impaired may be classified as either special mention or watch and may have an allowance established for it. Typically, unimpaired classified loans exhibit some form of weakness in either industry trends, collateral, or cash flow that result in a default risk greater than that of the Company’s typical loan. All classified amounts include all unpaid interest and fees as well as the principal balance outstanding. | |||||
The measurement of impaired loans generally may be based on the present value of future cash flows discounted at the historical effective interest rate. However, the majority of the Company’s problem loans become collateral dependent at the time they are judged to be impaired. Therefore, the measurement of impaired requires the Company to obtain a new appraisal to obtain the fair value of the collateral. The appraised value is then discounted to an estimated of the Company’s net realizable value, reducing the appraised value by the amount of holding and selling cost. When the measured amount of an impaired loan is less than the recorded investment in the loan, the impairment is recorded as a charge to income and a valuation allowance, which is included as a component of the allowance for loan losses. For loans not individually evaluated, management considers the Company’s recent charge off history, the Company’s current past due and non-accrual trends, banking industry trends and both local and national economic conditions when making an estimate as to the amount to reserve for losses. Management believes it has established the allowance in accordance with accounting principles generally accepted in the United States of America and has taken into account the views of its regulators and the current economic environment. | |||||
Fixed Rate Mortgage Originations | Fixed Rate Mortgage Originations | ||||
The Company operates a mortgage division that originates mortgage loans in the name of assorted investors, including Federal Home Loan Mortgage Corporation (Freddie Mac). Originations for Freddie Mac are sold through the Bank while originations to other investors are processed for a fee. On a limited basis, loans sold to Freddie Mac may result in the Bank retaining loan servicing rights. In recent years, customers have chosen lower origination rates over having their loan locally serviced; thereby limiting the amount of new loans sold with servicing retained. At December 31, 2014, the Bank maintained a servicing portfolio of one to four family real estate loans of approximately $25.0 million. For the years ended December 31, 2014, December 31, 2013, and December 31, 2012, the Bank has reviewed the value of the servicing asset as well as the operational cost associated with servicing the portfolio. The Bank has determined that the values of its servicing rights are not material to the Company’s consolidated financial statements. | |||||
Real Estate and Other Assets Owned | Real Estate and Other Assets Owned | ||||
Assets acquired through, or in lieu of, loan foreclosure or repossession carried at the lower of cost or fair value less selling expenses. Costs of improving the assets are capitalized, whereas costs relating to holding the property are expensed. Management conducts periodic valuations (no less than annually) and any adjustments to value are recognized in the current period’s operations. | |||||
Brokered Deposits | Brokered Deposits | ||||
The Company may choose to attract deposits from several sources, including using outside brokers to assist in obtaining time deposits using national distribution channels. Brokered deposits offer the Company an alternative to Federal Home Loan Bank advances and local retail time deposits. | |||||
Repurchase Agreements | Repurchase Agreements | ||||
The Company sells investments from its portfolio to business and municipal customers with a written agreement to repurchase those investments on the next business day. The repurchase product gives business customers the opportunity to earn income on liquid cash reserves. These funds are overnight borrowings of the Company secured by Company assets and are not FDIC insured. | |||||
Revenue Recognition | Revenue Recognition | ||||
Mortgage loans held for sale are generally delivered to secondary market investors under best efforts sales commitments entered into prior to the closing of the individual loan. Loan sales and related gains or losses are recognized at settlement. Loan fees earned for the servicing of secondary market loans are recognized as earned. | |||||
Interest income on loans receivable is reported on the interest method. Interest income is not reported when full loan repayment is in doubt, typically when the loan is impaired, placed in non-accrual status, or payments are past due more than 90 days. Interest earned as reported as income is reversed on any loans classified as non-accrual or past due more than 90 days. Interest may continue to accrue on loans over 90 days past due if they are well secured and in the process of collection. | |||||
Income Taxes | Income Taxes | ||||
Income taxes are accounted for through the use of the asset and liability method. Under the asset and liability method, deferred taxes are recognized for the tax consequences of temporary differences by applying enacted statutory rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The effect on deferred taxes of a change in tax rates would be recognized in income in the period that includes the enactment date. The Company files its federal and Kentucky income tax returns as well as its Kentucky and Tennessee franchise and excise tax returns on a consolidated basis with its subsidiaries. All taxes are accrued on a separate entity basis. | |||||
Operating Segments | Operating Segments | ||||
The Company’s continuing operations include one primary segment, retail banking. The retail banking segment involves the origination of commercial, residential and consumer loans as well as the collections of deposits in eighteen branch offices. | |||||
Premises and Equipment | Premises and Equipment | ||||
Land, land improvements, buildings, and furniture and equipment are carried at cost, less accumulated depreciation and amortization. Buildings and land improvements are depreciated generally by the straight-line method, and furniture and equipment are depreciated under various methods over the estimated useful lives of the assets. The Company capitalizes interest expense on construction in process at a rate equal to the Company’s cost of funds. The estimated useful lives used to compute depreciation are as follows: | |||||
Land improvements | 5-15 years | ||||
Buildings | 40 years | ||||
Furniture and equipment | 5-15 years | ||||
Intangible Assets | Intangible Assets | ||||
The core deposit intangible asset related to the middle Tennessee acquisition of June 2006 is amortized using the sum of the year’s digits method over an estimated period of nine years. The Company periodically evaluates the recoverability of the intangible assets and takes into account events or circumstances that warrant a revised estimate of the useful lives or indicates that impairment exists. | |||||
Bank Owned Life Insurance | Bank Owned Life Insurance | ||||
Bank owned life insurance policies (BOLI) are recorded at the cash surrender value or the amount to be realized upon current redemption. The realization of the redemption value is evaluated for each insuring entity that holds insurance contracts annually by management. | |||||
Advertising | Advertising | ||||
The Company expenses the production cost of advertising as incurred. | |||||
Financial Instruments | Financial Instruments | ||||
The Company has entered into off-balance-sheet financial instruments consisting of commitments to extend credit and commercial letters of credit. Such financial instruments are recorded in the consolidated financial statements when they are funded or related fees are incurred or received. | |||||
Derivative Instruments | Derivative Instruments | ||||
Under guidelines ASC 815, Accounting for Derivative Instruments and Hedging Activities, as amended, all derivative instruments are required to be carried at fair value on the consolidated balance sheet. ASC 815 provides special hedge accounting provisions, which permit the change in fair value of the hedge item related to the risk being hedged to be recognized in earnings in the same period and in the same income statement line as the change in the fair value of the derivative. | |||||
A derivative instrument designated in a hedge relationship to mitigate exposure to changes in the fair value of an asset, liability or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges under ASC 815. Derivative instruments designated in a hedge relationship to mitigate exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Cash value hedges are accounted for by recording the fair value of the derivative instrument and the fair value related to the risk being hedged of the hedged asset or liability on the consolidated balance sheet with corresponding offsets recorded in the consolidated balance sheet. The adjustment to the hedged asset or liability is included in the basis of the hedged item, while the fair value of the derivative is recorded as a freestanding asset or liability. Actual cash receipts or payments and related amounts accrued during the period on derivatives included in a fair value hedge relationship are recorded as adjustments to the income or expense recorded on the hedged asset or liability. | |||||
Under both the fair value and cash flow hedge methods, derivative gains and losses not effective in hedging the change in fair value or expected cash flows of the hedged item are recognized immediately in the income statement. At the hedge’s inception and at least quarterly thereafter, a formal assessment is performed to determine whether changes in the fair values or cash flows of the derivative instrument has been highly effective in offsetting changes in the fair values or cash flows of the hedged items and whether they are expected to be highly effective in the future. If it is determined a derivative instrument has not been, or will not continue to be highly effective as a hedge, hedged accounting is discontinued. ASC 815 basis adjustments recorded on hedged assets and liabilities are amortized over the remaining life of the hedged item beginning no later than when hedge accounting ceases. There were no fair value hedging gains or losses, as a result of hedge ineffectiveness, recognized for the years ended December 31, 2014, 2013 and 2012. | |||||
Fair Values of Financial Instruments | Fair Values of Financial Instruments | ||||
ASC 825, Disclosures about Fair Value of Financial Instruments, requires disclosure of fair value information about financial instruments, whether or not recognized in the consolidated balance sheets for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments. Fair value estimates are made at a point in time, based on relevant market information and information about the financial instrument. Accordingly, such estimates involve uncertainties and matters of judgment and therefore cannot be determined with precision. ASC 825 excludes certain financial instruments and all non-financial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. | |||||
The following are the more significant methods and assumptions used by the Company in estimating its fair value disclosures for financial instruments: | |||||
Cash and cash equivalents | |||||
The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents approximate those assets’ fair values, because they mature within 90 days or less and do not present credit risk concerns. | |||||
Interest earning deposits | |||||
The carrying amounts reported in the consolidated balance sheets for interest earning deposits approximate those assets’ fair values, because they are considered overnight deposits and may be withdrawn at any time without penalty and do not present credit risk concerns. | |||||
Available-for-sale securities | |||||
Fair values for investment securities available-for-sale are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments provided by a third party pricing service. The Company reviews all securities in which the book value is greater than the market value for impairment that is other than temporary. For securities deemed to be other than temporarily impaired, the Company reduces the book value of the security to its market value by recognizing an impairment charge on its income statement. | |||||
Loans receivable | |||||
The fair values for of fixed-rate loans and variable rate loans that re-price on an infrequent basis is estimated using discounted cash flow analysis which considers future re-pricing dates and estimated repayment dates, and further using interest rates currently being offered for loans of similar type, terms to borrowers of similar credit quality. Loan fair value estimates include judgments regarding future expected loss experience and risk characteristics. The estimated fair value of variable-rate loans that re-price frequently and with have no significant change in credit risk is approximately the carrying value of the loan. | |||||
Letters of credit | |||||
The fair value of standby letters of credit is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements, the likelihood of the counter parties drawing on such financial instruments and the present creditworthiness of such counter parties. Such commitments have been made on terms which are competitive in the markets in which the Company operates, thus, the fair value of standby letters of credit equals the carrying value for the purposes of this disclosure. | |||||
Accrued interest receivable | |||||
Fair value is estimated to approximate the carrying amount because such amounts are expected to be received within 90 days or less and any credit concerns have been previously considered in the carrying value. | |||||
Repurchase agreements | |||||
Overnight repurchase agreements have a fair value at book, given that they mature overnight. The fair values for of longer date repurchase agreements is estimated using discounted cash flow analysis which considers the current market pricing for repurchase agreements of similar final maturities and collateral requirements. | |||||
Bank owned life insurance | |||||
The fair value of bank owned life insurance is the cash surrender value of the policy less redemption charges. By surrendering the policy, the Company is also subject to federal income taxes on all earnings previously recognized. | |||||
Deposits | |||||
The fair values disclosed for deposits with no stated maturity such as demand deposits, interest-bearing checking accounts and savings accounts are, by definition, equal to the amount payable on demand at the reporting date (that is, their carrying amounts). The fair values for certificates of deposit and other fixed maturity time deposits are estimated using a discounted cash flow calculation that applies interest rates currently being offered on such type accounts or similar accounts to a schedule of aggregated contractual maturities or similar maturities on such time deposits. | |||||
Advances from the Federal Home Loan Bank (FHLB) | |||||
The fair value of these advances is estimated by discounting the future cash flows of these advances using the current rates at which similar advances or similar financial instruments could be obtained. | |||||
FHLB stock | |||||
The fair value of FHLB stock is recognized at cost. | |||||
Subordinated debentures | |||||
The book value of subordinated debentures is cost. The subordinated debentures re-price quarterly at a rate equal to three month libor plus 3.10%. | |||||
Off-Balance-Sheet Instruments | |||||
Off-balance-sheet lending commitments approximate their fair values due to the short period of time before the commitment expires. | |||||
Dividend Restrictions | Dividend Restrictions | ||||
The Company is not permitted to pay a dividend to common shareholders if it fails to make a quarterly interest payment to the holders of the Company’s subordinated debentures. Furthermore, the Bank may be restricted in the payment of dividends to the Corporation by the KDFI or FDIC. Any restrictions imposed by either regulator would effectively limit the Company’s ability to pay a dividend to its common stockholders as discussed in Note 17. At December 31, 2013, there were no such restrictions. At December 31, 2014, the Corporation has $2.9 million in cash on hand available to pay common dividends and repurchase common share as outlined in Note 20. At December 31, 2014, the Bank may not pay an additional cash dividend to the Company without regulatory approval. | |||||
Earnings Per Share | Earnings Per Share | ||||
Earnings per share (EPS) consists of two separate components, basic EPS and diluted EPS. Basic EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for each period presented. Diluted EPS is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding plus dilutive common stock equivalents (CSE). CSE consists of dilutive stock options granted through the Company’s stock option plan. Restricted stock awards represent future compensation expense and are dilutive. Common stock equivalents which are considered anti-dilutive are not included for the purposes of this calculation. Common stock warrants issued in December 2008 and all stock options outstanding are currently anti-dilutive and are not included for the purposes of this calculation. | |||||
Both EPS and diluted EPS are reduced by the amount of dividend payments on preferred stock and the accretion of the discount on the preferred stock. The Company repurchased all preferred shares in December of 2012. The effect of the Company’s dividend payment on preferred stock and accretion of the preferred stock is as provided for the year ended December 31, 2012: | |||||
2012 | |||||
Dividend on preferred shares | $ | 1,006,886 | |||
Accretion dividend on preferred shares | 222,360 | ||||
Total cost of preferred stock | $ | 1,229,246 | |||
Reduction in earnings per share to common stockholders: | |||||
Basic | $ | 0.16 | |||
Fully diluted | $ | 0.16 | |||
Weighted average shares outstanding -basic | 7,486,445 | ||||
Weighted average shares outstanding -diluted | 7,486,445 | ||||
Stock Compensation | Stock Compensation | ||||
The Company utilized the Black-Sholes valuation model to determine the fair value of stock options on the date of grant. The model derives the fair value of stock options based on certain assumptions related to the expected stock prices volatility, expected option life, risk-free rate of return and the dividend yield of the stock. The expected life of options granted is estimated based on historical employee exercise behavior. The risk free rate of return coincides with the expected life of the options and is based on the ten year Treasury note rate at the time the options are issued. The historical volatility levels of the Company’s common stock are used to estimate the expected stock price volatility. The set dividend yield is used to estimate the expected dividend yield of the stock. | |||||
Effect of New Accounting Pronouncements | Effect of New Accounting Pronouncements | ||||
In January 2014, the FASB issued ASU No. 2014-04, Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. These amendments are intended to clarify when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan should be derecognized and the real estate recognized. The amendments clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either: (1) the creditor obtaining legal title to the residential real estate property upon completion of residential foreclosure, or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additional disclosures about such activities are required by these amendments. The amendments in this ASU become effective for public companies for annual periods and interim periods within those annual periods beginning after December 15, 2014, and early adoption is permitted. The Company is assessing the impact that these amendments will have on its financial position and results of operations, but does not currently anticipate that it will have a material impact. | |||||
On June 12, 2014, the FASB issued ASU 2014-11, which makes limited amendments to the guidance in ASC 860 on accounting for certain repurchase agreements (“repos”). ASU 2014-11 requires entities to account for repurchase-to-maturity transactions as secured borrowings (rather than as sales with forward repurchase agreements), (2) eliminates accounting guidance on linked repurchase financing transactions, and (3) expands disclosure requirements related to certain transfers of financial assets that are accounted for as sales and certain transfers (specifically, repos, securities lending transactions, and repurchase-to-maturity transactions) accounted for as secured borrowings. | |||||
ASU 2014-11 also amends ASC 860 to clarify that repos and securities lending transactions that do not meet all of the de-recognition criteria in ASC 860-10-40-5 should be accounted for as secured borrowings. In addition, the ASU provides examples of repurchase and securities lending arrangements that illustrate whether a transferor has maintained effective control over the transferred financial assets. For public business entities, the accounting changes are effective for the first interim or annual period beginning after December 15, 2014. The Company is assessing the impact that these amendments will have on its financial position and results of operations. | |||||
ASU 2013-10, “Derivatives and Hedging (Topic 815) – Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes.” ASU 2013-10 permits the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) to be used as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815, in addition to interest rates on direct Treasury obligations of the U.S. government and the London Interbank Offered Rate (“LIBOR”). ASU 2013-10 became effective for qualifying new or re-designated hedging relationships entered into on or after July 17, 2013, and did not have a significant impact on the Company’s consolidated financial position or results of operations. | |||||
ASU 2015-01, “Income Statement—Extraordinary and Unusual Items (Subtopic 225-20) – Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” ASU 2015-01 eliminates from U.S. GAAP the concept of extraordinary items, which, among other things, required an entity to segregate extraordinary items considered to be unusual and infrequent from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. ASU 2015-01 is effective for the Corporation beginning January 1, 2016, though early adoption is permitted. ASU 2015-01 is not expected to have a significant impact on the Company’s consolidated financial position or results of operations. | |||||
Other accounting standards that have been issued or proposed 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 or cash flows. | |||||
Reclassifications | Reclassifications | ||||
Certain items in prior financial statements have been reclassified to conform to the current presentation. | |||||
Troubled Debt Restructuring | Troubled Debt Restructuring | ||||
On a periodic basis, the Company may modify the terms of certain loans. In evaluating whether a restructuring constitutes a troubled debt restructuring (TDR), Financial Accounting Standards Board has issued Accounting Standards Update 310 (ASU 310); A Creditor’s Determination of Whether a Restructuring is a Troubled Debt Restructuring. In evaluating whether a restructuring constitutes a TDR, the Company must separately conclude that both of the following exist: | |||||
a.) | The restructuring constitutes a concession | ||||
b.) | The debtor is experiencing financial difficulties | ||||
ASU 310 provides the following guidance for the Company’s evaluation of whether it has granted a concession as follows: | |||||
If a debtor does not otherwise have access to funds at a market interest rate for debt with similar risk characteristics as the restructured debt, the restructured debt would be considered a below market rate, which may indicate that the Company may have granted a concession. In that circumstance, the Company should consider all aspects of the restructuring in determining whether it has granted a concession, the creditor must make a separate assessment about whether the debtor is experiencing financial difficulties to determine whether the restructuring constitutes a TDR. | |||||
A temporary or permanent increase in the interest rate on a loan as a result of a restructuring does not eliminate the possibility of the restructuring from being considered a concession if the new interest rate on the loan is below the market interest rate for loans of similar risk characteristics. | |||||
A restructuring that results in a delay in payment that is insignificant is not a concession. However, the Company must consider a variety of factors in assessing whether a restructuring resulting in a delay in payment is insignificant. | |||||
Fair Value Measurement | ASC 820 establishes a three-level valuation hierarchy for disclosure of fair value measurement. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. | ||||
• | Level 1 is for assets and liabilities that management has obtained quoted prices (unadjusted for transaction cost) or identical assets or liabilities in active markets that the Company has the ability to access as of the measurement date. | ||||
• | Level 2 is for assets and liabilities in which significant unobservable inputs other than Level 1 prices such as quoted prices for similar assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. | ||||
• | Level 3 is for assets and liabilities in which significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. | ||||
The fair value of securities available for sale are determined by a matrix pricing, which is a mathematical technique what is widely used in the industry to value debt securities without relying exclusively on quoted prices for the individual securities in the Company’s portfolio but relying on the securities relationship to other benchmark quoted securities. Impaired loans are valued at the net present value of expected payments and considering the fair value of any assigned collateral. | |||||
Variable Interest Entities | Under ASC 810, the Company is deemed to be the primary beneficiary and required to consolidate a variable interest entity (VIE) if it has a variable interest in the VIE that provides it with a controlling financial interest. For such purposes, the determination of whether a controlling financial interest exists is based on whether a single party has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. ASC 810 requires continual reconsideration of conclusions reached regarding which interest holder is a VIE’s primary beneficiary and disclosures surrounding those VIE’s which have not been consolidated. The consolidation methodology provided in this footnote as of December 31, 2014 and 2013 has been prepared in accordance with ASC 810. At December 31, 2014, the Company did not have any consolidated variable interest entities to disclose but did have a commitment to a low income housing partnership and issued trust preferred securities. | ||||
Comprehensive Income | FASB ASC 220, Comprehensive Income, established standards for reporting comprehensive income. Comprehensive income includes net income and other comprehensive net income which is defined as non-owner related transactions in equity. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Accounting Policies [Abstract] | |||||
Schedule of Useful Life of Property, Plant, and Equipment | The estimated useful lives used to compute depreciation are as follows: | ||||
Land improvements | 5-15 years | ||||
Buildings | 40 years | ||||
Furniture and equipment | 5-15 years | ||||
Reduction in Earnings Per Share | The effect of the Company’s dividend payment on preferred stock and accretion of the preferred stock is as provided for the year ended December 31, 2012: | ||||
2012 | |||||
Dividend on preferred shares | $ | 1,006,886 | |||
Accretion dividend on preferred shares | 222,360 | ||||
Total cost of preferred stock | $ | 1,229,246 | |||
Reduction in earnings per share to common stockholders: | |||||
Basic | $ | 0.16 | |||
Fully diluted | $ | 0.16 | |||
Weighted average shares outstanding -basic | 7,486,445 | ||||
Weighted average shares outstanding -diluted | 7,486,445 | ||||
Securities_Tables
Securities (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||
Amortized Cost of Securities and their Estimated Fair Values | The carrying amount of securities and their estimated fair values follow: | ||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Gains | Losses | Value | |||||||||||||||||||||||
Restricted: | |||||||||||||||||||||||||
FHLB stock | $ | 4,428 | — | — | 4,428 | ||||||||||||||||||||
Available for Sale: | |||||||||||||||||||||||||
U.S. Treasury securities | $ | 3,977 | 3 | — | 3,980 | ||||||||||||||||||||
U.S. Agency securities: | 101,654 | 2,125 | (527 | ) | 103,252 | ||||||||||||||||||||
Tax free municipal bonds | 57,399 | 3,814 | (166 | ) | 61,047 | ||||||||||||||||||||
Taxable municipal bonds | 11,871 | 235 | (63 | ) | 12,043 | ||||||||||||||||||||
Trust preferred securities | 1,600 | — | (111 | ) | 1,489 | ||||||||||||||||||||
Commercial bonds | 2,000 | 7 | — | 2,007 | |||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||
GNMA | 27,535 | 670 | (122 | ) | 28,083 | ||||||||||||||||||||
FNMA | 50,617 | 694 | (536 | ) | 50,775 | ||||||||||||||||||||
FHLMC | 3,276 | 38 | — | 3,314 | |||||||||||||||||||||
SLMA CMOs | 9,895 | — | (252 | ) | 9,643 | ||||||||||||||||||||
AGENCY CMOs | 28,024 | 176 | (205 | ) | 27,995 | ||||||||||||||||||||
$ | 297,848 | 7,762 | (1,982 | ) | 303,628 | ||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Gains | Losses | Value | |||||||||||||||||||||||
Restricted: | |||||||||||||||||||||||||
FHLB stock | $ | 4,428 | — | — | 4,428 | ||||||||||||||||||||
Available for Sale: | |||||||||||||||||||||||||
U.S. government and agency securities: | $ | 120,608 | 1,856 | (2,441 | ) | 120,023 | |||||||||||||||||||
Tax free municipal bonds | 64,291 | 2,066 | (898 | ) | 65,459 | ||||||||||||||||||||
Taxable municipal bonds | 18,337 | 458 | (738 | ) | 18,057 | ||||||||||||||||||||
Trust preferred securities | 1,600 | — | (111 | ) | 1,489 | ||||||||||||||||||||
Commercial bonds | 2,000 | — | (16 | ) | 1,984 | ||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||
GNMA | 17,327 | 590 | (142 | ) | 17,775 | ||||||||||||||||||||
FNMA | 70,104 | 526 | (1,938 | ) | 68,692 | ||||||||||||||||||||
FHLMC | 1,301 | 35 | — | 1,336 | |||||||||||||||||||||
SLMA CMOs | 8,459 | — | (374 | ) | 8,085 | ||||||||||||||||||||
AGENCY CMOs | 16,296 | 134 | (420 | ) | 16,010 | ||||||||||||||||||||
$ | 320,323 | 5,665 | (7,078 | ) | 318,910 | ||||||||||||||||||||
Maturities of Debt Securities Available for Sale | The scheduled maturities of debt securities available for sale at December 31, 2014, were as follows: | ||||||||||||||||||||||||
Amortized | Estimated | ||||||||||||||||||||||||
Cost | Fair | ||||||||||||||||||||||||
Value | |||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||
Due within one year | $ | 4,830 | 4,927 | ||||||||||||||||||||||
Due in one to five years | 21,564 | 21,818 | |||||||||||||||||||||||
Due in five to ten years | 41,683 | 42,613 | |||||||||||||||||||||||
Due after ten years | 33,119 | 35,380 | |||||||||||||||||||||||
101,196 | 104,738 | ||||||||||||||||||||||||
Amortizing agency bonds | 77,305 | 79,080 | |||||||||||||||||||||||
Mortgage-backed securities | 119,347 | 119,810 | |||||||||||||||||||||||
Total unrestricted securities available for sale | $ | 297,848 | 303,628 | ||||||||||||||||||||||
The scheduled maturities of debt securities available for sale at December 31, 2013, were as follows: | |||||||||||||||||||||||||
2013 | Amortized | Estimated | |||||||||||||||||||||||
Cost | Fair | ||||||||||||||||||||||||
Value | |||||||||||||||||||||||||
Due within one year | $ | 501 | 505 | ||||||||||||||||||||||
Due in one to five years | 12,630 | 12,954 | |||||||||||||||||||||||
Due in five to ten years | 38,192 | 37,364 | |||||||||||||||||||||||
Due after ten years | 49,284 | 49,314 | |||||||||||||||||||||||
100,607 | 100,137 | ||||||||||||||||||||||||
Amortizing agency bonds | 106,229 | 106,875 | |||||||||||||||||||||||
Mortgage-backed securities | 113,487 | 111,898 | |||||||||||||||||||||||
Total unrestricted securities available for sale | $ | 320,323 | 318,910 | ||||||||||||||||||||||
Estimated Fair Value and Unrealized Loss Amounts of Impaired Investments | The estimated fair value and unrealized loss amounts of temporarily impaired investments as of December 31, 2014, are as follows: | ||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||
December 31, 2014 | Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | |||||||||||||||||||
Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||
U.S. government and agency securities: | |||||||||||||||||||||||||
Agency debt securities | $ | 14,021 | (20 | ) | 29,156 | (507 | ) | 43,177 | (527 | ) | |||||||||||||||
Taxable municipals | — | — | 4,785 | (63 | ) | 4,785 | (63 | ) | |||||||||||||||||
Tax free municipals | — | — | 6,647 | (166 | ) | 6,647 | (166 | ) | |||||||||||||||||
Trust preferred securities | — | — | 1,489 | (111 | ) | 1,489 | (111 | ) | |||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||
GNMA | 12,568 | (108 | ) | 2,895 | (14 | ) | 15,463 | (122 | ) | ||||||||||||||||
FNMA | — | — | 18,927 | (536 | ) | 18,927 | (536 | ) | |||||||||||||||||
SLMA CMOs | 1,923 | (14 | ) | 7,720 | (238 | ) | 9,643 | (252 | ) | ||||||||||||||||
AGENCY CMOs | 9,545 | (91 | ) | 7,685 | (114 | ) | 17,230 | (205 | ) | ||||||||||||||||
Total Available for Sale | $ | 38,057 | (233 | ) | 79,304 | (1,749 | ) | 117,361 | (1,982 | ) | |||||||||||||||
The estimated fair value and unrealized loss amounts of temporarily impaired investments as of December 31, 2013, are as follows: | |||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||
December 31, 2013 | Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | |||||||||||||||||||
Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||
U.S. government and agency securities: | |||||||||||||||||||||||||
Agency debt securities | $ | 44,968 | (2,107 | ) | 6,793 | (334 | ) | 51,761 | (2,441 | ) | |||||||||||||||
Taxable municipals | 7,903 | (660 | ) | 797 | (78 | ) | 8,700 | (738 | ) | ||||||||||||||||
Tax free municipals | 9,848 | (692 | ) | 3,720 | (206 | ) | 13,568 | (898 | ) | ||||||||||||||||
Trust preferred securities | — | — | 1,489 | (111 | ) | 1,489 | (111 | ) | |||||||||||||||||
Commercial bonds | 1,984 | (16 | ) | — | — | 1,984 | (16 | ) | |||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||
GNMA | 5,320 | (128 | ) | 1,551 | (14 | ) | 6,871 | (142 | ) | ||||||||||||||||
FNMA | 42,464 | (1,626 | ) | 6,746 | (312 | ) | 49,210 | (1,938 | ) | ||||||||||||||||
NON-AGENCY CMOs | 5,224 | (374 | ) | — | — | 5,224 | (374 | ) | |||||||||||||||||
AGENCY CMOs | 7,031 | (223 | ) | 1,844 | (197 | ) | 8,875 | (420 | ) | ||||||||||||||||
Total Available for Sale | $ | 124,742 | (5,826 | ) | 22,940 | (1,252 | ) | 147,682 | (7,078 | ) |
Loans_Receivable_Net_Tables
Loans Receivable, Net (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||
Composition of Loan Portfolio by Type of Loan | The components of loans receivable in the consolidated balance sheets as of December 31, 2014, and December 31, 2013, were as follows: | ||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||
Amount | Percent | Amount | Percent | ||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||
One-to-four family (closed end) first mortgages | $ | 150,551 | 27.6 | % | 155,252 | 28.1 | % | ||||||||||||||||||||||
Second mortgages (closed end) | 2,102 | 0.4 | % | 3,248 | 0.6 | % | |||||||||||||||||||||||
Home equity lines of credit | 34,238 | 6.3 | % | 34,103 | 6.2 | % | |||||||||||||||||||||||
Multi-family | 25,991 | 4.8 | % | 29,736 | 5.4 | % | |||||||||||||||||||||||
Construction | 24,241 | 4.4 | % | 10,618 | 1.9 | % | |||||||||||||||||||||||
Land | 26,654 | 4.9 | % | 34,681 | 6.3 | % | |||||||||||||||||||||||
Farmland | 42,874 | 7.8 | % | 51,868 | 9.4 | % | |||||||||||||||||||||||
Non-residential real estate | 150,596 | 27.6 | % | 157,692 | 28.5 | % | |||||||||||||||||||||||
Total mortgage loans | 457,247 | 83.8 | % | 477,198 | 86.4 | % | |||||||||||||||||||||||
Consumer loans | 14,438 | 2.6 | % | 11,167 | 2 | % | |||||||||||||||||||||||
Commercial loans | 74,154 | 13.6 | % | 64,041 | 11.6 | % | |||||||||||||||||||||||
Total other loans | 88,592 | 16.2 | % | 75,208 | 13.6 | % | |||||||||||||||||||||||
Total loans, gross | 545,839 | 100 | % | 552,406 | 100 | % | |||||||||||||||||||||||
Deferred loan cost, net of fees | (286 | ) | (92 | ) | |||||||||||||||||||||||||
Less allowance for loan losses | (6,289 | ) | (8,682 | ) | |||||||||||||||||||||||||
Total loans | $ | 539,264 | 543,632 | ||||||||||||||||||||||||||
Summary of the Company's Impaired Loans | Loans by classification type and the related valuation allowance amounts at December 31, 2014, were as follows: | ||||||||||||||||||||||||||||
Special | Impaired Loans | Specific | Allowance for | ||||||||||||||||||||||||||
Allowance for | Loans not | ||||||||||||||||||||||||||||
Pass | Mention | Substandard | Doubtful | Total | Impairment | Impaired | |||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
One-to-four family mortgages | $ | 146,129 | 203 | 4,219 | — | 150,551 | 51 | 1,147 | |||||||||||||||||||||
Home equity line of credit | 33,481 | — | 757 | — | 34,238 | — | 181 | ||||||||||||||||||||||
Junior lien | 2,025 | 40 | 37 | — | 2,102 | — | 14 | ||||||||||||||||||||||
Multi-family | 20,066 | 2,904 | 3,021 | — | 25,991 | — | 85 | ||||||||||||||||||||||
Construction | 24,241 | — | — | — | 24,241 | — | 146 | ||||||||||||||||||||||
Land | 15,328 | 362 | 10,964 | — | 26,654 | 663 | 460 | ||||||||||||||||||||||
Non-residential real estate | 131,854 | 5,492 | 13,250 | — | 150,596 | 738 | 1,345 | ||||||||||||||||||||||
Farmland | 40,121 | 516 | 2,237 | — | 42,874 | — | 461 | ||||||||||||||||||||||
Consumer loans | 14,118 | 21 | 299 | — | 14,438 | 62 | 432 | ||||||||||||||||||||||
Commercial loans | 71,246 | 325 | 2,583 | — | 74,154 | — | 504 | ||||||||||||||||||||||
Total | $ | 498,609 | 9,863 | 37,367 | — | 545,839 | 1,514 | 4,775 | |||||||||||||||||||||
Loans by classification type and the related valuation allowance amounts at December 31, 2013, were as follows: | |||||||||||||||||||||||||||||
Special | Impaired Loans | Specific | Allowance for | ||||||||||||||||||||||||||
Allowance for | Loans not | ||||||||||||||||||||||||||||
Pass | Mention | Substandard | Doubtful | Total | Impairment | Impaired | |||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
One-to-four family mortgages | $ | 149,351 | 814 | 5,087 | — | 155,252 | 597 | 1,451 | |||||||||||||||||||||
Home equity line of credit | 33,462 | — | 641 | — | 34,103 | — | 218 | ||||||||||||||||||||||
Junior lien | 3,126 | 43 | 79 | — | 3,248 | — | 39 | ||||||||||||||||||||||
Multi-family | 29,736 | — | — | — | 29,736 | — | 466 | ||||||||||||||||||||||
Construction | 10,443 | — | 175 | — | 10,618 | — | 88 | ||||||||||||||||||||||
Land | 19,899 | 52 | 14,730 | — | 34,681 | 771 | 534 | ||||||||||||||||||||||
Non-residential real estate | 143,044 | 515 | 14,133 | — | 157,692 | 465 | 2,254 | ||||||||||||||||||||||
Farmland | 46,042 | 480 | 5,346 | — | 51,868 | — | 510 | ||||||||||||||||||||||
Consumer loans | 10,727 | — | 440 | — | 11,167 | 96 | 445 | ||||||||||||||||||||||
Commercial loans | 61,502 | 526 | 2,013 | — | 64,041 | — | 748 | ||||||||||||||||||||||
Total | $ | 507,332 | 2,430 | 42,644 | — | 552,406 | 1,929 | 6,753 | |||||||||||||||||||||
Impaired Loans by Classification Type | Impaired loans by classification type and the related valuation allowance amounts at December 31, 2014, were as follows: | ||||||||||||||||||||||||||||
For the year ended | |||||||||||||||||||||||||||||
At December 31, 2014 | December 31, 2014 | ||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | |||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | |||||||||||||||||||||||||
Balance | Investment | Recognized | |||||||||||||||||||||||||||
Impaired loans with no specific allowance | |||||||||||||||||||||||||||||
One-to-four family mortgages | $ | 3,501 | 3,501 | — | 2,972 | 176 | |||||||||||||||||||||||
Home equity line of credit | 757 | 757 | — | 690 | 35 | ||||||||||||||||||||||||
Junior liens | 37 | 37 | — | 39 | 2 | ||||||||||||||||||||||||
Multi-family | 3,021 | 3,021 | — | 1,342 | 190 | ||||||||||||||||||||||||
Construction | — | — | — | 29 | — | ||||||||||||||||||||||||
Land | 7,740 | 7,740 | — | 8,978 | 339 | ||||||||||||||||||||||||
Non-residential real estate | 12,057 | 12,057 | — | 8,672 | 669 | ||||||||||||||||||||||||
Farmland | 2,237 | 2,237 | 3,968 | 125 | |||||||||||||||||||||||||
Consumer loans | 51 | 51 | — | 36 | 3 | ||||||||||||||||||||||||
Commercial loans | 2,583 | 2,583 | — | 2,246 | 154 | ||||||||||||||||||||||||
Total | 31,984 | 31,984 | — | 28,972 | 1,693 | ||||||||||||||||||||||||
Impaired loans with a specific allowance | |||||||||||||||||||||||||||||
One-to-four family mortgages | $ | 718 | 718 | 51 | 1,434 | 44 | |||||||||||||||||||||||
Home equity line of credit | — | — | — | — | — | ||||||||||||||||||||||||
Junior liens | — | — | — | — | — | ||||||||||||||||||||||||
Multi-family | — | — | — | — | — | ||||||||||||||||||||||||
Construction | — | — | — | — | — | ||||||||||||||||||||||||
Land | 3,224 | 4,737 | 663 | 3,418 | 160 | ||||||||||||||||||||||||
Non-residential real estate | 1,193 | 1,258 | 738 | 3,617 | 69 | ||||||||||||||||||||||||
Farmland | — | — | — | 619 | — | ||||||||||||||||||||||||
Consumer loans | 248 | 248 | 62 | 355 | — | ||||||||||||||||||||||||
Commercial loans | — | — | — | 100 | — | ||||||||||||||||||||||||
Total | 5,383 | 6,961 | 1,514 | 9,543 | 273 | ||||||||||||||||||||||||
Total impaired loans | $ | 37,367 | 38,945 | 1,514 | 38,515 | 1,966 | |||||||||||||||||||||||
Impaired loans by classification type and the related valuation allowance amounts at December 31, 2013, were as follows: | |||||||||||||||||||||||||||||
For the year ended | |||||||||||||||||||||||||||||
At December 31, 2013 | December 31, 2013 | ||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | |||||||||||||||||||||||||
Principal | Recorded | Income | |||||||||||||||||||||||||||
Investment | Balance | Allowance | Investment | Recognized | |||||||||||||||||||||||||
Impaired loans with no specific allowance | |||||||||||||||||||||||||||||
One-to-four family mortgages | $ | 3,216 | 3,216 | — | 2,361 | 8 | |||||||||||||||||||||||
Home equity line of credit | 641 | 641 | — | 564 | 3 | ||||||||||||||||||||||||
Junior liens | 79 | 79 | — | 239 | 1 | ||||||||||||||||||||||||
Multi-family | — | — | — | 990 | — | ||||||||||||||||||||||||
Construction | 175 | 175 | — | 1,072 | 5 | ||||||||||||||||||||||||
Land | 10,882 | 12,315 | — | 10,668 | 186 | ||||||||||||||||||||||||
Non-residential real estate | 10,775 | 10,775 | — | 6,196 | 263 | ||||||||||||||||||||||||
Farmland | 5,346 | 5,346 | 6,955 | 149 | |||||||||||||||||||||||||
Consumer loans | 56 | 56 | — | 48 | — | ||||||||||||||||||||||||
Commercial loans | 2,013 | 2,013 | — | 2,391 | 95 | ||||||||||||||||||||||||
Total | 33,183 | 34,616 | — | 31,484 | 710 | ||||||||||||||||||||||||
Impaired loans with a specific allowance | |||||||||||||||||||||||||||||
One-to-four family mortgages | $ | 1,871 | 1,871 | 597 | 2,501 | 9 | |||||||||||||||||||||||
Home equity line of credit | — | — | — | 279 | — | ||||||||||||||||||||||||
Junior liens | — | — | — | 113 | — | ||||||||||||||||||||||||
Multi-family | — | — | — | — | — | ||||||||||||||||||||||||
Construction | — | — | — | 1,385 | — | ||||||||||||||||||||||||
Land | 3,848 | 3,848 | 771 | 2,741 | 29 | ||||||||||||||||||||||||
Non-residential real estate | 3,358 | 4,222 | 465 | 2,243 | 111 | ||||||||||||||||||||||||
Farmland | — | — | — | 1,601 | — | ||||||||||||||||||||||||
Consumer loans | 384 | 384 | 96 | 401 | — | ||||||||||||||||||||||||
Commercial loans | — | — | — | 346 | — | ||||||||||||||||||||||||
Total | 9,461 | 10,325 | 1,929 | 11,610 | 149 | ||||||||||||||||||||||||
Total impaired loans | $ | 42,644 | 44,941 | 1,929 | 43,094 | 859 | |||||||||||||||||||||||
Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Impairment Method | The following table presents the balance in the allowance for loan losses and the recorded investment in loans as of December 31, 2014, and December 31, 2013, by portfolio segment and based on the impairment method as of December 31, 2014, and December 31, 2013. | ||||||||||||||||||||||||||||
Commercial | Land | Commercial | Residential | Consumer | Total | ||||||||||||||||||||||||
Development / | Real Estate | Real Estate | |||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||
December 31, 2014: | |||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | 663 | $ | 738 | $ | 51 | $ | 62 | $ | 1,514 | |||||||||||||||||
Collectively evaluated for impairment | 504 | 606 | 1,891 | 1,342 | 432 | 4,775 | |||||||||||||||||||||||
Total ending allowance balance | $ | 504 | $ | 1,269 | $ | 2,629 | $ | 1,393 | $ | 494 | $ | 6,289 | |||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 2,583 | $ | 10,964 | $ | 18,508 | $ | 5,013 | $ | 299 | $ | 37,367 | |||||||||||||||||
Loans collectively evaluated for impairment | 71,571 | 39,931 | 200,953 | 181,878 | 14,139 | 508,472 | |||||||||||||||||||||||
Total ending loans balance | $ | 74,154 | $ | 50,895 | $ | 219,461 | $ | 186,891 | $ | 14,438 | $ | 545,839 | |||||||||||||||||
Commercial | Land | Commercial | Residential | Consumer | Total | ||||||||||||||||||||||||
Development / | Real Estate | Real Estate | |||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||
December 31, 2013: | |||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | 771 | $ | 465 | $ | 597 | $ | 96 | $ | 1,929 | |||||||||||||||||
Collectively evaluated for impairment | 748 | 622 | 3,230 | 1,708 | 445 | 6,753 | |||||||||||||||||||||||
Total ending allowance balance | $ | 748 | $ | 1,393 | $ | 3,695 | $ | 2,305 | $ | 541 | $ | 8,682 | |||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 2,013 | $ | 14,905 | $ | 19,479 | $ | 5,807 | $ | 440 | $ | 42,644 | |||||||||||||||||
Loans collectively evaluated for impairment | 62,028 | 30,394 | 219,817 | 186,796 | 10,727 | 509,762 | |||||||||||||||||||||||
Total ending loans balance | $ | 64,041 | $ | 45,299 | $ | 239,296 | $ | 192,603 | $ | 11,167 | $ | 552,406 | |||||||||||||||||
Allowance for Loan Loss Account by Loan | The following table provides a detail of the Company’s activity in the allowance for loan loss account allocated by loan type for the year ended December 31, 2014: | ||||||||||||||||||||||||||||
Year ended December 31, 2014 | Balance | Charge | Recovery | General | Specific | Ending | |||||||||||||||||||||||
12/31/13 | off | 2014 | Provision | Provision | Balance | ||||||||||||||||||||||||
2014 | 2014 | 2014 | 12/31/14 | ||||||||||||||||||||||||||
One-to-four family mortgages | 2,048 | (233 | ) | 24 | (304 | ) | (337 | ) | 1,198 | ||||||||||||||||||||
Home equity line of credit | 218 | (83 | ) | 3 | (37 | ) | 80 | 181 | |||||||||||||||||||||
Junior liens | 39 | — | 9 | (25 | ) | (9 | ) | 14 | |||||||||||||||||||||
Multi-family | 466 | — | — | (381 | ) | — | 85 | ||||||||||||||||||||||
Construction | 88 | (139 | ) | 9 | 58 | 130 | 146 | ||||||||||||||||||||||
Land | 1,305 | — | — | (74 | ) | (108 | ) | 1,123 | |||||||||||||||||||||
Non-residential real estate | 2,719 | (66 | ) | 864 | (1,368 | ) | (66 | ) | 2,083 | ||||||||||||||||||||
Farmland | 510 | — | — | 542 | (591 | ) | 461 | ||||||||||||||||||||||
Consumer loans | 541 | (415 | ) | 109 | (13 | ) | 272 | 494 | |||||||||||||||||||||
Commercial loans | 748 | (296 | ) | 94 | (244 | ) | 202 | 504 | |||||||||||||||||||||
8,682 | (1,232 | ) | 1,112 | (1,846 | ) | (427 | ) | 6,289 | |||||||||||||||||||||
The following table provides a detail of the Company’s activity in the allowance for loan loss account allocated by loan type for the year ended December 30, 2013: | |||||||||||||||||||||||||||||
Year ended December 31, 2013 | Balance | Charge | Recovery | General | Specific | Ending | |||||||||||||||||||||||
12/31/12 | off | 2013 | Provision | Provision | Balance | ||||||||||||||||||||||||
2013 | 2013 | 2013 | 12/31/13 | ||||||||||||||||||||||||||
One-to-four family mortgages | $ | 2,490 | (852 | ) | 329 | (285 | ) | 366 | 2,048 | ||||||||||||||||||||
Home equity line of credit | 374 | (22 | ) | 9 | (88 | ) | (55 | ) | 218 | ||||||||||||||||||||
Junior liens | 230 | (119 | ) | 71 | 5 | (148 | ) | 39 | |||||||||||||||||||||
Multi-family | 524 | (38 | ) | 164 | (20 | ) | (164 | ) | 466 | ||||||||||||||||||||
Construction | 256 | — | — | (168 | ) | — | 88 | ||||||||||||||||||||||
Land | 2,184 | (1,432 | ) | 9 | (718 | ) | 1,262 | 1,305 | |||||||||||||||||||||
Non-residential real estate | 2,921 | (1,041 | ) | 14 | 757 | 68 | 2,719 | ||||||||||||||||||||||
Farmland | 712 | — | — | (202 | ) | — | 510 | ||||||||||||||||||||||
Consumer loans | 338 | (649 | ) | 246 | 228 | 378 | 541 | ||||||||||||||||||||||
Commercial loans | 619 | (291 | ) | 32 | 437 | (49 | ) | 748 | |||||||||||||||||||||
$ | 10,648 | (4,444 | ) | 874 | (54 | ) | 1,658 | 8,682 | |||||||||||||||||||||
Non-accrual Loans | For the years ended December 31, 2014, and December 31, 2013, the components of the Company’s balances of non-accrual loans are as follows: | ||||||||||||||||||||||||||||
12/31/14 | 12/31/13 | ||||||||||||||||||||||||||||
One-to-four family first mortgages | $ | 1,501 | 945 | ||||||||||||||||||||||||||
Home equity lines of credit | — | 1 | |||||||||||||||||||||||||||
Junior liens | — | 2 | |||||||||||||||||||||||||||
Multi-family | 95 | — | |||||||||||||||||||||||||||
Construction | — | 175 | |||||||||||||||||||||||||||
Land | 215 | 1,218 | |||||||||||||||||||||||||||
Non-residential real estate | 1,159 | 6,546 | |||||||||||||||||||||||||||
Farmland | 115 | 703 | |||||||||||||||||||||||||||
Consumer loans | — | 13 | |||||||||||||||||||||||||||
Commercial loans | 90 | 463 | |||||||||||||||||||||||||||
Total non-accrual loans | $ | 3,175 | 10,066 | ||||||||||||||||||||||||||
Past Due and Non-accrual Balances by Loan Classification | The table below presents loan balances at December 31, 2014, by loan classification allocated between past due, classified, performing and non-performing: | ||||||||||||||||||||||||||||
Currently | 30 - 89 | Non-accrual | Special | Impaired Loans | |||||||||||||||||||||||||
Days | Currently Performing | ||||||||||||||||||||||||||||
Performing | Past Due | Loans | Mention | Substandard | Doubtful | Total | |||||||||||||||||||||||
One-to-four family mortgages | $ | 145,372 | 757 | 1,501 | 203 | 2,718 | — | 150,551 | |||||||||||||||||||||
Home equity line of credit | 33,338 | 143 | — | — | 757 | — | 34,238 | ||||||||||||||||||||||
Junior liens | 2,025 | — | — | 40 | 37 | — | 2,102 | ||||||||||||||||||||||
Multi-family | 20,066 | — | 95 | 2,904 | 2,926 | — | 25,991 | ||||||||||||||||||||||
Construction | 24,241 | — | — | — | — | — | 24,241 | ||||||||||||||||||||||
Land | 14,674 | 654 | 215 | 362 | 10,749 | — | 26,654 | ||||||||||||||||||||||
Non-residential real estate | 131,854 | — | 1,159 | 5,492 | 12,091 | — | 150,596 | ||||||||||||||||||||||
Farmland | 40,057 | 64 | 115 | 516 | 2,122 | — | 42,874 | ||||||||||||||||||||||
Consumer loans | 14,104 | 14 | — | 21 | 299 | — | 14,438 | ||||||||||||||||||||||
Commercial loans | 71,191 | 55 | 90 | 325 | 2,493 | — | 74,154 | ||||||||||||||||||||||
Total | $ | 496,922 | 1,687 | 3,175 | 9,863 | 34,192 | — | 545,839 | |||||||||||||||||||||
The table below presents loan balances at December 31, 2013, by loan classification allocated between performing and non-performing: | |||||||||||||||||||||||||||||
Currently | 30—89 | Non-accrual | Special | Impaired Loans | |||||||||||||||||||||||||
Days | Currently Performing | ||||||||||||||||||||||||||||
Performing | Past Due | Loans | Mention | Substandard | Doubtful | Total | |||||||||||||||||||||||
One-to-four family mortgages | $ | 148,759 | 592 | 945 | 814 | 4,142 | — | 155,252 | |||||||||||||||||||||
Home equity line of credit | 33,369 | 93 | 1 | — | 640 | — | 34,103 | ||||||||||||||||||||||
Junior liens | 3,126 | — | 2 | 43 | 77 | — | 3,248 | ||||||||||||||||||||||
Multi-family | 29,736 | — | — | — | — | — | 29,736 | ||||||||||||||||||||||
Construction | 10,443 | — | 175 | — | — | — | 10,618 | ||||||||||||||||||||||
Land | 19,899 | — | 1,218 | 52 | 13,512 | — | 34,681 | ||||||||||||||||||||||
Non-residential real estate | 142,701 | 343 | 6,546 | 515 | 7,587 | — | 157,692 | ||||||||||||||||||||||
Farmland | 46,042 | — | 703 | 480 | 4,643 | — | 51,868 | ||||||||||||||||||||||
Consumer loans | 10,493 | 234 | 13 | — | 427 | — | 11,167 | ||||||||||||||||||||||
Commercial loans | 61,379 | 123 | 463 | 526 | 1,550 | — | 64,041 | ||||||||||||||||||||||
Total | $ | 505,947 | 1,385 | 10,066 | 2,430 | 32,578 | — | 552,406 | |||||||||||||||||||||
Summary of the Activity in Loans Classified as TDRs | A summary of the activity in loans classified as TDRs for the twelve month period ended December 31, 2014, is as follows: | ||||||||||||||||||||||||||||
Balance at | New | Loss or | Transfer to Held | Removed | Balance | ||||||||||||||||||||||||
12/31/13 | TDR | Foreclosure | for Sale | from | at | ||||||||||||||||||||||||
(Taken to) | 12/31/14 | ||||||||||||||||||||||||||||
Non-accrual | |||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
One-to-four family mortgages | $ | — | — | — | — | — | $ | — | |||||||||||||||||||||
Home equity line of credit | — | — | — | — | — | — | |||||||||||||||||||||||
Junior Lien | — | — | — | — | — | — | |||||||||||||||||||||||
Multi-family | — | — | — | — | — | — | |||||||||||||||||||||||
Construction | — | — | — | — | — | — | |||||||||||||||||||||||
Land | — | — | — | — | — | — | |||||||||||||||||||||||
Non-residential real estate | — | 10,271 | — | (6,987 | ) | — | 3,284 | ||||||||||||||||||||||
Farmland | — | — | — | — | — | — | |||||||||||||||||||||||
Consumer loans | — | — | — | — | — | — | |||||||||||||||||||||||
Commercial loans | — | — | — | — | — | — | |||||||||||||||||||||||
Total performing TDR | $ | — | 10,271 | — | (6,987 | ) | — | $ | 3,284 | ||||||||||||||||||||
A summary of the activity in loans classified as TDRs for the year ended December 31, 2013, is as follows: | |||||||||||||||||||||||||||||
Balance at | New | Loss or | Removed due to | Removed | Balance | ||||||||||||||||||||||||
12/31/12 | TDR | Foreclosure | Payment or | from | at | ||||||||||||||||||||||||
Performance | (Taken to) | 12/31/13 | |||||||||||||||||||||||||||
Non-accrual | |||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
One-to-four family mortgages | $ | 1,888 | 242 | — | (1,863 | ) | (267 | ) | — | ||||||||||||||||||||
Home equity line of credit | — | — | — | — | — | — | |||||||||||||||||||||||
Junior Lien | 96 | — | — | (10 | ) | (86 | ) | — | |||||||||||||||||||||
Multi-family | 234 | — | — | (234 | ) | — | — | ||||||||||||||||||||||
Construction | 4,112 | — | — | — | (4,112 | ) | — | ||||||||||||||||||||||
Land | 656 | 2,649 | (393 | ) | (656 | ) | (2,256 | ) | — | ||||||||||||||||||||
Non-residential real estate | 3,173 | 266 | (864 | ) | — | (2,575 | ) | — | |||||||||||||||||||||
Farmland | 865 | — | — | (865 | ) | — | — | ||||||||||||||||||||||
Consumer loans | 5 | — | — | (5 | ) | — | — | ||||||||||||||||||||||
Commercial loans | 9 | 222 | — | (231 | ) | — | — | ||||||||||||||||||||||
Total performing TDR | $ | 11,038 | 3,379 | (1,257 | ) | (3,864 | ) | (9,296 | ) | — | |||||||||||||||||||
Summary of Loans to Officers, Directors and Their Affiliates | The following summarizes activity of loans to officers and directors and their affiliates for the years ended December 31, 2014, and December 31, 2013: | ||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Balance at beginning of period | $ | 4,800 | 8,846 | ||||||||||||||||||||||||||
New loans | 669 | 410 | |||||||||||||||||||||||||||
Principal repayments | (1,447 | ) | (4,456 | ) | |||||||||||||||||||||||||
Balance at end of period | $ | 4,022 | 4,800 | ||||||||||||||||||||||||||
Premises_and_Equipment_Tables
Premises and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Components of Premises and Equipment Included in Consolidated Balance Sheets | Components of premises and equipment included in the consolidated balance sheets as of December 31, 2014 and December 31, 2013, consisted of the following: | ||||||||
2014 | 2013 | ||||||||
Land | $ | 6,576 | 6,526 | ||||||
Land improvements | 611 | 575 | |||||||
Buildings | 20,914 | 20,257 | |||||||
Construction in process | 486 | 582 | |||||||
Furniture and equipment | 6,213 | 6,696 | |||||||
34,800 | 34,636 | ||||||||
Less accumulated depreciation | 11,860 | 11,528 | |||||||
Premises and equipment, net | $ | 22,940 | 23,108 | ||||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Amount of Other Intangible Assets and the Changes in the Carrying Amounts of Other Intangible Assets | The amount of other intangible assets and the changes in the carrying amounts of other intangible assets for the years ended December 31, 2014, 2013 and 2012: | ||||
Core Deposits | |||||
Intangible | |||||
Balance, December 31, 2011 | $ | 519 | |||
Amortization | (227 | ) | |||
Balance December 31, 2012 | 292 | ||||
Amortization | (162 | ) | |||
Balance December 31, 2013 | 130 | ||||
Amortization | (97 | ) | |||
Balance, December 31, 2014 | $ | 33 | |||
Deposits_Tables
Deposits (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Text Block [Abstract] | |||||||||||||
Scheduled Maturities of Other Time Deposits | At December 31, 2014, the scheduled maturities of other time deposits were as follows: | ||||||||||||
Years Ending December 31, | |||||||||||||
2015 | $ | 139,708 | |||||||||||
2016 | 137,147 | ||||||||||||
2017 | 32,175 | ||||||||||||
2018 | 15,299 | ||||||||||||
2019 | 7,576 | ||||||||||||
2020 and thereafter | 10 | ||||||||||||
$ | 331,915 | ||||||||||||
Interest Expense on Deposits | Interest expense on deposits for the years ended December 31, 2014, December 31, 2013 and December 31, 2012 is summarized as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Interest bearing checking accounts | $ | 1,253 | $ | 1,243 | 1,180 | ||||||||
Money market accounts | 86 | 73 | 58 | ||||||||||
Savings | 109 | 79 | 71 | ||||||||||
Other time deposits | 4,155 | 5,719 | 9,262 | ||||||||||
$ | 5,603 | $ | 7,114 | 10,571 | |||||||||
Advances_from_Federal_Home_Loa1
Advances from Federal Home Loan Bank (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||
Summarized Federal Home Loan Bank Advances | Federal Home Loan Bank advances are summarized as follows: | ||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Weighted | Weighted | ||||||||||||||||
Types of Advances | Amount | Average Rate | Amount | Average Rate | |||||||||||||
Fixed-rate | $ | 34,000 | 0.88 | % | $ | 46,780 | 3.72 | % | |||||||||
Scheduled Maturities of FHLB Advances | Scheduled maturities of FHLB advances as of December 31, 2014 are as follows: | ||||||||||||||||
Years Ending | Fixed | Average | |||||||||||||||
December 31, | Rate | Cost | |||||||||||||||
2015 | $ | 30,000 | 0.29 | % | |||||||||||||
2016 | 4,000 | 5.34 | % | ||||||||||||||
Total | $ | 34,000 | 0.88 | % |
Repurchase_Agreements_Tables
Repurchase Agreements (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Text Block [Abstract] | |||||||||||||||
Cost and Maturities of the Company's Repurchase Agreements | At December 31, 2014, and December 31, 2013, the respective cost and maturities of the Company’s repurchase agreements are as follows: | ||||||||||||||
2014 | Balance | Average Rate | Maturity | Comments | |||||||||||
Third Party | |||||||||||||||
Merrill Lynch | $ | 6,000 | 4.36 | % | 9/18/16 | Quarterly callable | |||||||||
Various customers | 51,358 | 0.6 | % | Overnight | |||||||||||
Total | $ | 57,358 | 1.42 | % | |||||||||||
2013 | Balance | Average Rate | Maturity | Comments | |||||||||||
Third Party | |||||||||||||||
Deutsch Bank | $ | 10,000 | 4.28 | % | 9/5/14 | Quarterly callable | |||||||||
Merrill Lynch | 6,000 | 4.36 | % | 9/18/16 | Quarterly callable | ||||||||||
Various customers | 36,759 | 0.99 | % | Overnight | |||||||||||
Total | $ | 52,759 | 2.29 | % | |||||||||||
Fair_Value_Measurement_Tables
Fair Value Measurement (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The assets and liabilities measured at fair value on a recurring basis are summarized below: | ||||||||||||||||||||
December 31, 2014 | Total carrying | Quoted Prices | Significant | Significant | |||||||||||||||||
value in the | In Active | Other | Unobservable | ||||||||||||||||||
consolidated | Markets for | Observable | |||||||||||||||||||
Description | balance sheet at | Identical Assets | Inputs | Inputs | |||||||||||||||||
December 31, 2014 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Assets | |||||||||||||||||||||
Available for sale securities | $ | 303,628 | — | 302,139 | 1,489 | ||||||||||||||||
Liabilities | |||||||||||||||||||||
Interest rate swap | $ | 390 | — | 390 | — | ||||||||||||||||
December 31, 2013 | Total carrying | Quoted Prices | Significant | Significant | |||||||||||||||||
value in the | In Active | Other | Unobservable | ||||||||||||||||||
consolidated | Markets for | Observable | |||||||||||||||||||
Description | balance sheet at | Identical Assets | Inputs | Inputs | |||||||||||||||||
December 31, 2013 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Assets | |||||||||||||||||||||
Available for sale securities | $ | 318,910 | — | 317,421 | 1,489 | ||||||||||||||||
Liabilities | |||||||||||||||||||||
Interest rate swap | $ | 750 | — | 750 | — | ||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis | The assets and liabilities measured at fair value on a non-recurring basis are summarized below: | ||||||||||||||||||||
December 31, 2014 | Total carrying | Quoted Prices | Significant | Significant | |||||||||||||||||
value in the | In Active | Other | |||||||||||||||||||
Description | consolidated | Markets for | Observable | Unobservable | |||||||||||||||||
balance sheet at | Identical Assets | Inputs | Inputs | ||||||||||||||||||
12/31/14 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Assets | |||||||||||||||||||||
Other real estate owned | $ | 1,927 | — | — | 1,927 | ||||||||||||||||
Impaired loans, net of allowance of $1,514 | $ | 35,853 | — | — | 35,853 | ||||||||||||||||
December 31, 2013 | Total carrying | Quoted Prices | Significant | Significant | |||||||||||||||||
value in the | In Active | Other | |||||||||||||||||||
Description | consolidated | Markets for | Observable | Unobservable | |||||||||||||||||
balance sheet at | Identical Assets | Inputs | Inputs | ||||||||||||||||||
12/31/13 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Assets | |||||||||||||||||||||
Other real estate owned | $ | 1,674 | — | — | 1,674 | ||||||||||||||||
Impaired loans, net of allowance of $1,929 | $ | 40,715 | — | — | 40,715 | ||||||||||||||||
Roll-Forward of the Consolidated Condensed Statement of Financial Condition Items | The table below includes a roll-forward of the balance sheet items for the years ended December 31, 2014 and 2013, (including the change in fair value) for assets and liabilities classified by HopFed Bancorp, Inc. within level 3 of the valuation hierarchy for assets and liabilities measured at fair value on a recurring basis. When a determination is made to classify a financial instrument within level 3 of the valuation hierarchy, the determination is based upon the significance of the unobservable factors to the overall fair value measurement. However, since level 3 financial instruments typically include, in addition to the unobservable or level 3 components, observable components (that is components that are actively quoted and can be validated to external sources), the gains and losses in the table below include changes in fair value due in part to observable factors that are part of the valuation methodology. | ||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Other | Other | Other | Other | ||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||
Fair value, December 31, | $ | 1,489 | — | $ | 1,489 | — | |||||||||||||||
Change in unrealized gains (losses) included in other comprehensive income for assets and liabilities still held at December 31, | — | — | — | — | |||||||||||||||||
Other than temporary impairment charge | — | — | — | — | |||||||||||||||||
Purchases, issuances and settlements, net | — | — | — | — | |||||||||||||||||
Transfers in and/or out of Level 3 | — | — | — | — | |||||||||||||||||
Fair value, December 31, | $ | 1,489 | — | $ | 1,489 | — | |||||||||||||||
Estimated Fair Values of Financial Instruments | The estimated fair values of financial instruments were as follows at December 31, 2014: | ||||||||||||||||||||
Carrying | Estimated | Quoted Prices | Using | Significant | |||||||||||||||||
Amount | Fair | In Active Markets | Significant | Unobservable | |||||||||||||||||
Value | for Identical | Other | Inputs | ||||||||||||||||||
Assets | Observable | Level 3 | |||||||||||||||||||
Level 1 | Inputs | ||||||||||||||||||||
Level 2 | |||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||
Cash and due from banks | $ | 34,389 | 34,389 | $ | 34,389 | — | — | ||||||||||||||
Interest-earning deposits | 6,050 | 6,050 | 6,050 | — | — | ||||||||||||||||
Securities available for sale | 303,628 | 303,628 | — | 302,139 | 1,489 | ||||||||||||||||
Federal Home Loan Bank stock | 4,428 | 4,428 | — | 4,428 | — | ||||||||||||||||
Loans held for sale | 1,444 | 1,444 | — | 1,444 | — | ||||||||||||||||
Loans receivable | 539,264 | 537,493 | — | — | 537,493 | ||||||||||||||||
Accrued interest receivable | 4,576 | 4,576 | — | 4,576 | — | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | 731,308 | 714,750 | — | 714,750 | — | ||||||||||||||||
Advances from borrowers for taxes and insurance | 513 | 513 | — | 513 | — | ||||||||||||||||
Advances from Federal Home Loan Bank | 34,000 | 34,217 | — | 34,217 | — | ||||||||||||||||
Repurchase agreements | 57,358 | 57,688 | — | 57,688 | — | ||||||||||||||||
Subordinated debentures | 10,310 | 10,099 | — | — | 10,099 | ||||||||||||||||
Off-balance-sheet liabilities: | |||||||||||||||||||||
Commitments to extend credit | — | — | — | — | — | ||||||||||||||||
Commercial letters of credit | — | — | — | — | — | ||||||||||||||||
Market value of interest rate swap | 390 | 390 | — | 390 | — | ||||||||||||||||
The estimated fair values of financial instruments were as follows at December 31, 2013: | |||||||||||||||||||||
Carrying | Estimated | Quoted Prices | Using | Significant | |||||||||||||||||
Amount | Fair | In Active Markets | Significant | Unobservable | |||||||||||||||||
Value | for Identical | Other | Inputs | ||||||||||||||||||
Assets | Observable | Level 3 | |||||||||||||||||||
Level 1 | Inputs | ||||||||||||||||||||
Level 2 | |||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||
Cash and due from banks | $ | 37,229 | 37,229 | 37,229 | — | — | |||||||||||||||
Interest-earning deposits | 18,619 | 18,619 | 18,619 | — | — | ||||||||||||||||
Securities available for sale | 318,910 | 318,910 | — | 317,421 | 1,489 | ||||||||||||||||
Federal Home Loan Bank stock | 4,428 | 4,428 | — | 4,428 | — | ||||||||||||||||
Loans receivable | 543,632 | 546,319 | — | — | 546,319 | ||||||||||||||||
Accrued interest receivable | 5,233 | 5,233 | — | 5,233 | — | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | 762,997 | 763,605 | — | 763,605 | — | ||||||||||||||||
Advances from borrowers for taxes and insurance | 521 | 521 | — | 521 | — | ||||||||||||||||
Advances from Federal Home Loan Bank | 46,780 | 51,010 | — | 51,010 | — | ||||||||||||||||
Repurchase agreements | 52,759 | 53,712 | — | 53,712 | — | ||||||||||||||||
Subordinated debentures | 10,310 | 10,099 | — | — | 10,099 | ||||||||||||||||
Off-balance-sheet liabilities: | |||||||||||||||||||||
Commitments to extend credit | — | — | — | — | — | ||||||||||||||||
Commercial letters of credit | — | — | — | — | — | ||||||||||||||||
Market value of interest rate swap | 750 | 750 | — | 750 | — | ||||||||||||||||
Foreclosed Assets that were Re-Measured and Reported at Fair Value | The following table presents foreclosed assets that were re-measured and reported at fair value: | ||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Beginning balance | $ | 1,674 | 1,548 | 2,267 | |||||||||||||||||
Foreclosed assets measured at initial recognition: | |||||||||||||||||||||
Carrying value of foreclosed assets prior to acquisition | 1,816 | 1,535 | 2,634 | ||||||||||||||||||
Proceeds from sale of foreclosed assets | (1,118 | ) | (908 | ) | (2,738 | ) | |||||||||||||||
Charge-offs recognized in the allowance for loan loss | (237 | ) | (361 | ) | (349 | ) | |||||||||||||||
Gains (losses) on REO included in non-interest expense | (208 | ) | (140 | ) | (266 | ) | |||||||||||||||
Fair value | $ | 1,927 | 1,674 | 1,548 | |||||||||||||||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||
Summary Represents Activity Under Stock Option Plans | At December 31, 2014, all options having been granted under the 2000 Option Plan have been exercised and expired. | ||||||||
Number of | Weighted | ||||||||
Shares | Average Exercise | ||||||||
Price | |||||||||
Options outstanding, December 2011 | 31,212 | 15.06 | |||||||
Granted | — | — | |||||||
Exercised | — | — | |||||||
Forfeited | (10,404 | ) | 11.85 | ||||||
Options outstanding, December 2012 | 20,808 | 16.67 | |||||||
Granted | — | — | |||||||
Exercised | — | — | |||||||
Forfeited | — | — | |||||||
Options outstanding, December 2013 | 20,808 | 16.67 | |||||||
Granted | — | — | |||||||
Exercised | — | — | |||||||
Forfeited | (20,808 | ) | 16.67 | ||||||
Options outstanding, December 2014 | — | — | |||||||
Compensation Expense to be Recognized | The remaining compensation expense to be recognized at December 31, 2014 is as follows: | ||||||||
Year Ending December 31, | Approximate Future | ||||||||
Compensation Expense | |||||||||
2015 | $ | 186 | |||||||
2016 | 133 | ||||||||
2017 | 46 | ||||||||
2018 | 3 | ||||||||
Total | $ | 368 | |||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Provision for Income Tax Expense (Benefit) | The provision for income tax expense (benefit) for the years ended December 31, 2014, December 31, 2013, and December 31, 2012, consisted of the following: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current | |||||||||||||
Federal | $ | — | (32 | ) | 210 | ||||||||
State | 30 | 110 | 120 | ||||||||||
30 | 78 | 330 | |||||||||||
Deferred | |||||||||||||
Federal | (231 | ) | 566 | 487 | |||||||||
State | — | — | — | ||||||||||
(231 | ) | 566 | 487 | ||||||||||
($ | 201 | ) | 644 | 817 | |||||||||
Reconciliation of Federal Income Tax Rate | Total income tax expense for the years ended December 31, 2014, 2013, and 2012 differed from the amounts computed by applying the federal income tax rate of 34 percent to income before income taxes as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Expected federal income tax expense at statutory tax rate | $ | 748 | 1,498 | 1,661 | |||||||||
Effect of nontaxable interest income | (724 | ) | (590 | ) | (575 | ) | |||||||
Effect of nontaxable bank owned life insurance income | (104 | ) | (120 | ) | (136 | ) | |||||||
Effect of QSCAB credit | (220 | ) | (220 | ) | (220 | ) | |||||||
State taxes on income, net of federal benefit | 84 | 73 | 79 | ||||||||||
Other tax credits | (80 | ) | (80 | ) | (64 | ) | |||||||
Non deductible expenses | 95 | 83 | 72 | ||||||||||
Total income tax expense | ($ | 201 | ) | 644 | 817 | ||||||||
Effective rate | (10.1 | %) | 14.6 | % | 16.7 | % | |||||||
Components of Deferred Taxes | The components of deferred taxes as of December 31, 2014, and December 31, 2013, are summarized as follows: | ||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Allowance for loan loss | $ | 2,116 | 2,952 | ||||||||||
Accrued expenses | 1,482 | 310 | |||||||||||
Intangible amortization | 981 | 1,184 | |||||||||||
Other | 287 | 275 | |||||||||||
Unrealized loss on items in comprehensive income | — | 736 | |||||||||||
Other real estate owned | 95 | 63 | |||||||||||
4,961 | 5,520 | ||||||||||||
Deferred tax liabilities: | |||||||||||||
FHLB stock dividends | (787 | ) | (787 | ) | |||||||||
Unrealized gain on items in comprehensive income | (1,832 | ) | — | ||||||||||
Depreciation and amortization | (81 | ) | (123 | ) | |||||||||
(2,700 | ) | (910 | ) | ||||||||||
Net deferred tax asset (liability) | $ | 2,261 | 4,610 | ||||||||||
Real_Estate_and_Other_Assets_O1
Real Estate and Other Assets Owned (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Banking and Thrift [Abstract] | |||||||||
Company's Balance in Both Real Estate and Other Assets Owned | As of December 31, 2014, and December 31, 2013, the composition of the Company’s balance in both real estate and other assets owned are as follows: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
One-to-four family mortgages | $ | 159 | 350 | ||||||
Land | 1,768 | 1,124 | |||||||
Non-residential real estate | — | 200 | |||||||
Total other assets owned | $ | 1,927 | 1,674 | ||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||
Future Minimal Lease and Rental Commitments | At December 31, 2014, future minimal purchase, lease and rental commitments were as follows: | ||||||||
Years Ending | |||||||||
31-Dec | |||||||||
2015 | $ | 5,599 | |||||||
2016 | 2,268 | ||||||||
2017 | 2,214 | ||||||||
2018 | 187 | ||||||||
2019 | 21 | ||||||||
Total | $ | 10,289 | |||||||
Commitments and Conditional Obligations | The Company uses the same credit policies in making these commitments and conditional obligations as it does for on-balance-sheet instruments. | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Commitments to extend credit | $ | 45,177 | 31,103 | ||||||
Standby letters of credit | 462 | 322 | |||||||
Unused commercial lines of credit | 49,026 | 44,962 | |||||||
Unused home equity lines of credit | 29,843 | 29,733 |
Regulatory_Matters_Tables
Regulatory Matters (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||||||||||||||||||
The Company's Consolidated Capital Ratios and the Bank's Actual Capital Amounts and Ratios | The Company’s consolidated capital ratios and the Bank’s actual capital amounts and ratios as of December 31, 2014, and December 31, 2013, are presented below: | ||||||||||||||||||||||||||||||||
Consolidated | Bank | Required for Capital | Required to be | ||||||||||||||||||||||||||||||
Actual | Actual | Adequacy Purposes | Categorized as Well | ||||||||||||||||||||||||||||||
Capitalized Under | |||||||||||||||||||||||||||||||||
Prompt Corrective | |||||||||||||||||||||||||||||||||
Action Provisions | |||||||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||||||||||
Tier 1 Leverage capital to adjusted total assets | $ | 104,813 | 11.1 | % | $ | 102,240 | 11 | % | $ | 37,252 | 4 | % | $ | 46,567 | 5 | % | |||||||||||||||||
Total capital to risk weighted assets | $ | 111,102 | 18 | % | $ | 108,529 | 17.6 | % | $ | 46,576 | 8 | % | $ | 58,220 | 10 | % | |||||||||||||||||
Tier 1 capital to risk weighted assets | $ | 104,813 | 19.1 | % | $ | 102,240 | 18.6 | % | N/A | N/A | $ | 55,878 | 6 | % | |||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||||||
Tier 1 Leverage capital to adjusted total assets | $ | 107,016 | 11.2 | % | $ | 101,720 | 10.8 | % | $ | 37,819 | 4 | % | $ | 47,274 | 5 | % | |||||||||||||||||
Total capital to risk weighted assets | $ | 114,706 | 18.6 | % | $ | 109,410 | 17.8 | % | $ | 49,138 | 8 | % | $ | 61,423 | 10 | % | |||||||||||||||||
Tier 1 capital to risk weighted assets | $ | 107,016 | 17.4 | % | $ | 101,720 | 16.6 | % | N/A | N/A | $ | 36,854 | 6 | % |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Equity [Abstract] | |||||
Assumptions for Calculating Fair Value of the Common Stock Warrants | For the purposes of these calculations, the fair value of the common stock warrants was estimated using the following assumptions: | ||||
• Risk free rate | 2.6 | % | |||
• Expected life of warrants | 10 years | ||||
• Expected dividend yield | 3.5 | % | |||
• Expected volatility | 26.5 | % | |||
• Weighted average fair value | $ | 2.28 |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Summary of Reconciliation of Weighted Average Common Shares | The following is a reconciliation of weighted average common shares for the basic and dilutive earnings per share computations: | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Basic earnings per share: | |||||||||||||
Weighted average common shares | 7,306,078 | 7,483,606 | 7,486,445 | ||||||||||
Adjustment for stock dividend | — | — | — | ||||||||||
Weighted average common shares | 7,306,078 | 7,483,606 | 7,486,445 | ||||||||||
Dilutive effect of stock options | — | — | — | ||||||||||
Adjustment for stock dividend | — | — | — | ||||||||||
Weighted average common and incremental shares | 7,306,078 | 7,483,606 | 7,486,445 | ||||||||||
Condensed_Parent_Company_Only_1
Condensed Parent Company Only Financial Statements (Tables) (HopFed [Member]) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
HopFed [Member] | |||||||||||||
Summary of Condensed Balance Sheets | Condensed Balance Sheets: | ||||||||||||
2014 | 2013 | ||||||||||||
Assets: | |||||||||||||
Cash and due from banks | $ | 2,932 | 5,199 | ||||||||||
Investment in subsidiary | 106,088 | 100,914 | |||||||||||
Prepaid expenses and other assets | 534 | 1,078 | |||||||||||
Total assets | $ | 109,554 | $ | 107,191 | |||||||||
Liabilities and equity | |||||||||||||
Liabilities | |||||||||||||
Unrealized loss on derivative | $ | 390 | 750 | ||||||||||
Dividends payable - common | 301 | 325 | |||||||||||
Interest payable | 87 | 87 | |||||||||||
Other liabilities | 64 | 2 | |||||||||||
Subordinated debentures | 10,310 | 10,310 | |||||||||||
Total liabilities | 11,152 | 11,474 | |||||||||||
Equity: | |||||||||||||
Preferred stock | — | — | |||||||||||
Common stock | 79 | 79 | |||||||||||
Additional paid-in capital | 58,466 | 58,302 | |||||||||||
Retained earnings | 45,729 | 44,694 | |||||||||||
Treasury stock- common stock | (9,429 | ) | (5,929 | ) | |||||||||
Accumulated other | 3,557 | (1,429 | ) | ||||||||||
comprehensive income | |||||||||||||
Total equity | 98,402 | 95,717 | |||||||||||
Total liabilities and equity | $ | 109,554 | 107,191 | ||||||||||
Summary of Condensed Statements of Cash Flows | Condensed Statements of Cash Flows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Cash flows from operating activities: | |||||||||||||
Net income | $ | 2,199 | 3,762 | 4,069 | |||||||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities | |||||||||||||
Equity in undistributed earnings of subsidiary | (423 | ) | 817 | 1,025 | |||||||||
Amortization of restricted stock | 164 | 115 | 99 | ||||||||||
Increase (decrease) in: | |||||||||||||
Current income taxes payable | 200 | (355 | ) | 74 | |||||||||
Accrued expenses | 280 | (142 | ) | (1 | ) | ||||||||
Net cash (used in) provided by operating activities: | 2,420 | 4,197 | 5,266 | ||||||||||
Cash flows for investing activities: | |||||||||||||
Net cash flow used in investing activities | — | — | — | ||||||||||
Cash flows from financing activities: | |||||||||||||
Purchase of preferred stock - treasury | — | — | (18,400 | ) | |||||||||
Purchase of common stock - treasury | (3,500 | ) | (853 | ) | — | ||||||||
Purchase of common stock warrant | — | (257 | ) | — | |||||||||
Dividends paid on preferred stock | — | — | (1,007 | ) | |||||||||
Dividends paid on common stock | (1,187 | ) | (751 | ) | (598 | ) | |||||||
Net cash (used in) provided by financing activities | (4,687 | ) | (1,861 | ) | (20,005 | ) | |||||||
Net increase (decrease) in cash | (2,267 | ) | 2,336 | (14,739 | ) | ||||||||
Cash and due from banks at beginning of year | 5,199 | 2,863 | 17,602 | ||||||||||
Cash and due from banks at end of year | $ | 2,932 | 5,199 | 2,863 | |||||||||
Investments_in_Affiliated_Comp1
Investments in Affiliated Companies (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Summary of Condensed Statements of Income | Summary Statements of Income | ||||||||||||||||
Years Ended December. 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Income – interest income from subordinated debentures issued by HopFed Bancorp, Inc. | $ | 348 | 353 | ||||||||||||||
Net income | $ | 348 | 353 | ||||||||||||||
Summary of Balance Sheets | Summary Balance Sheets | ||||||||||||||||
December. 31, | December. 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Asset – investment in subordinated debentures issued by HopFed Bancorp, Inc. | $ | 10,310 | 10,310 | ||||||||||||||
Liabilities | $ | — | — | ||||||||||||||
Stockholders’ equity: | |||||||||||||||||
Trust preferred securities | 10,000 | 10,000 | |||||||||||||||
Common stock (100% owned by HopFed Bancorp, Inc.) | 310 | 310 | |||||||||||||||
Total stockholder’s equity | 10,310 | 10,310 | |||||||||||||||
Total liabilities and stockholder’s equity | $ | 10,310 | 10,310 | ||||||||||||||
Summary of Statement of Stockholder's Equity | Summary Statements of Stockholder’s Equity | ||||||||||||||||
Trust | Common | Retained | Total | ||||||||||||||
Preferred | Stock | Earnings | Stockholder’s | ||||||||||||||
Securities | Equity | ||||||||||||||||
Beginning balances, January 1, 2014 | $ | 10,000 | 310 | — | 10,310 | ||||||||||||
Retained earnings: | |||||||||||||||||
Net income | — | — | 0 | 348 | |||||||||||||
Dividends: | |||||||||||||||||
Trust preferred securities | — | — | 0 | (337 | ) | ||||||||||||
Common dividends paid to HopFed Bancorp, Inc. | — | — | 0 | (11 | ) | ||||||||||||
Total retained earnings | — | — | — | — | |||||||||||||
Ending balances, December 31, 2014 | $ | 10,000 | 310 | — | 10,310 | ||||||||||||
HopFed [Member] | |||||||||||||||||
Summary of Condensed Statements of Income | Condensed Statements of Income: | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Interest and dividend income: | |||||||||||||||||
Dividend income from subsidiary Bank | $ | 2,600 | 5,500 | 6,000 | |||||||||||||
Income on agency securities | — | — | 56 | ||||||||||||||
Total interest and dividend income | 2,600 | 5,500 | 6,056 | ||||||||||||||
Interest expense | 737 | 733 | 745 | ||||||||||||||
Non-interest expenses | 546 | 684 | 584 | ||||||||||||||
Total expenses | 1,283 | 1,417 | 1,329 | ||||||||||||||
Income (loss) before income taxes and equity in undistributed earnings of subsidiary | 1,317 | 4,083 | 4,727 | ||||||||||||||
Income tax benefits | (459 | ) | (496 | ) | (367 | ) | |||||||||||
Income (loss) before equity in undistributed earnings of subsidiary | 1,776 | 4,579 | 5,094 | ||||||||||||||
Equity in (distribution in excess of) earnings of subsidiary | 423 | (817 | ) | (1,025 | ) | ||||||||||||
Net income | 2,199 | 3,762 | 4,069 | ||||||||||||||
Preferred stock dividend and warrant accretion | — | — | (1,229 | ) | |||||||||||||
Income available to common shareholders | $ | 2,199 | 3,762 | 2,840 | |||||||||||||
Quarterly_Results_of_Operation1
Quarterly Results of Operations (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Summarized Unaudited Quarterly Operating Results | Summarized unaudited quarterly operating results for the year ended December 31, 2014: | ||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
December 31, 2014: | |||||||||||||||||
Interest and dividend income | $ | 8,658 | 8,734 | 8,994 | 8,294 | ||||||||||||
Interest expense | 2,338 | 2,354 | 2,186 | 2,001 | |||||||||||||
Net interest income | 6,320 | 6,380 | 6,808 | 6,293 | |||||||||||||
Provision for loan losses | 380 | (261 | ) | (892 | ) | (1,500 | ) | ||||||||||
Net interest income after provision for loan losses | 5,940 | 6,641 | 7,700 | 7,793 | |||||||||||||
Noninterest income | 1,598 | 1,945 | 2,393 | 1,904 | |||||||||||||
Noninterest expense | 7,324 | 7,447 | 7,563 | 11,582 | |||||||||||||
Income (loss) before income taxes | 214 | 1,139 | 2,530 | (1,885 | ) | ||||||||||||
Income tax expense (benefit) | (140 | ) | 214 | 577 | (852 | ) | |||||||||||
Net income (loss) | $ | 354 | 925 | 1,953 | (1,033 | ) | |||||||||||
Basic earnings (loss) per share | $ | 0.05 | 0.13 | 0.27 | (0.14 | ) | |||||||||||
Diluted earnings (loss) per share | $ | 0.05 | 0.13 | 0.27 | (0.14 | ) | |||||||||||
Weighted average shares outstanding: | |||||||||||||||||
Basic | 7,416,716 | 7,376,726 | 7,265,597 | 7,165,957 | |||||||||||||
Diluted | 7,416,716 | 7,376,726 | 7,265,597 | 7,165,957 | |||||||||||||
Summarized unaudited quarterly operating results for the year ended December 31, 2013: | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
December 31, 2013: | |||||||||||||||||
Interest and dividend income | $ | 9,305 | 8,994 | 8,795 | 8,763 | ||||||||||||
Interest expense | 2,914 | 2,794 | 2,496 | 2,377 | |||||||||||||
Net interest income | 6,391 | 6,200 | 6,299 | 6,386 | |||||||||||||
Provision for loan losses | 376 | 406 | 426 | 396 | |||||||||||||
Net interest income after provision for loan losses | 6,015 | 5,794 | 5,873 | 5,990 | |||||||||||||
Noninterest income | 2,483 | 2,828 | 1,769 | 2,292 | |||||||||||||
Noninterest expense | 7,274 | 7,124 | 6,984 | 7,256 | |||||||||||||
Income before income taxes | 1,224 | 1,498 | 658 | 1,026 | |||||||||||||
Income tax expense (benefit) | 240 | 332 | 122 | (50 | ) | ||||||||||||
Net income | $ | 984 | 1,166 | 536 | 1,076 | ||||||||||||
Basic earnings per share | $ | 0.13 | 0.16 | 0.07 | 0.14 | ||||||||||||
Diluted earnings per share | $ | 0.13 | 0.16 | 0.07 | 0.14 | ||||||||||||
Weighted average shares outstanding: | |||||||||||||||||
Basic | 7,488,445 | 7,488,906 | 7,483,582 | 7,430,970 | |||||||||||||
Diluted | 7,488,445 | 7,488,906 | 7,483,582 | 7,430,970 | |||||||||||||
Comprehensive_Income_Tables
Comprehensive Income (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Equity [Abstract] | |||||||||||||
Other Comprehensive (Loss) Income Included in Stockholders' Equity | The following table sets forth the amounts of other comprehensive income (loss) included in stockholders’ equity along with the related tax effect for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||
Pre-Tax | Tax Benefit | Net of Tax | |||||||||||
Amount | (Expense) | Amount | |||||||||||
December 31, 2014: | |||||||||||||
Unrealized holding gains (losses) on: | |||||||||||||
Available for sale securities | $ | 7,773 | (2,643 | ) | 5,130 | ||||||||
Derivatives | 359 | (122 | ) | 237 | |||||||||
Reclassification adjustments for gains on: | |||||||||||||
Available for sale securities | (578 | ) | 197 | (381 | ) | ||||||||
$ | 7,554 | (2,568 | ) | 4,986 | |||||||||
December 31, 2013: | |||||||||||||
Unrealized holding gains on: | |||||||||||||
Available for sale securities | ($ | 16,012 | ) | 5,444 | (10,568 | ) | |||||||
Derivatives | 376 | (128 | ) | 248 | |||||||||
Reclassification adjustments for gains on: | |||||||||||||
Available for sale securities | (1,661 | ) | 565 | (1,096 | ) | ||||||||
Other than temporary impairment | 400 | (136 | ) | 264 | |||||||||
($ | 16,897 | ) | 5,745 | (11,152 | ) | ||||||||
December 31, 2012: | |||||||||||||
Unrealized holding gains on: | |||||||||||||
Available for sale securities | $ | 5,071 | (1,723 | ) | 3,348 | ||||||||
Derivatives | 171 | (58 | ) | 113 | |||||||||
Reclassification adjustments for gains on: | |||||||||||||
Available for sale securities | (1,671 | ) | 567 | (1,104 | ) | ||||||||
$ | 3,571 | (1,214 | ) | 2,357 | |||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2014 | Oct. 31, 2008 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Branch | |||||
Accounting Policies [Line Items] | |||||
Maturity period of federal funds | 3 months | ||||
Average prepayment speed period of securities to amortize premiums and accretes discount | 3 months | ||||
Servicing portfolio of real estate loan | $25,000,000 | $25,000,000 | |||
Accrued interest receivable maximum recovery period | 90 days | ||||
Number of branch offices involved in origination of loans and collection of deposits | 18 | ||||
Hedging gains or losses, fair value | 0 | 0 | 0 | ||
Maturity period of cash and cash equivalents | 90 days | ||||
Interest rate to be received under swap agreement | Three-month London Interbank Lending Rate (Libor) plus 3.10% | Three-month LIBOR plus 3.10% | |||
Percentage above LIBOR | 3.10% | 3.10% | |||
Cash available for dividend | $2,900,000 | $2,900,000 | |||
Treasury note redemption period | 10 years | ||||
Core Deposits [Member] | |||||
Accounting Policies [Line Items] | |||||
Intangible assets useful lives | 9 years |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Schedule of Useful Life of Property, Plant and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives of property, plant and equipment | 40 years |
Minimum [Member] | Land Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives of property, plant and equipment | 5 years |
Minimum [Member] | Furniture and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives of property, plant and equipment | 5 years |
Maximum [Member] | Land Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives of property, plant and equipment | 15 years |
Maximum [Member] | Furniture and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives of property, plant and equipment | 15 years |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Reduction in Earnings Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Accounting Policies [Abstract] | |||||||||||
Dividend on preferred shares | $1,006,886 | ||||||||||
Accretion dividend on preferred shares | 222,360 | ||||||||||
Total cost of preferred stock | $1,229,246 | ||||||||||
Reduction in earnings per share to common stockholders: | |||||||||||
Basic | $0.16 | ||||||||||
Fully diluted | $0.16 | ||||||||||
Weighted average shares outstanding - basic | 7,165,957 | 7,265,597 | 7,376,726 | 7,416,716 | 7,430,970 | 7,483,582 | 7,488,906 | 7,488,445 | 7,306,078 | 7,483,606 | 7,486,445 |
Weighted average shares outstanding - diluted | 7,165,957 | 7,265,597 | 7,376,726 | 7,416,716 | 7,430,970 | 7,483,582 | 7,488,906 | 7,488,445 | 7,306,078 | 7,483,606 | 7,486,445 |
Securities_Amortized_Cost_of_S
Securities - Amortized Cost of Securities and their Estimated Fair Values (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investment Holdings Line Items | ||
FHLB stock | $4,428 | $4,428 |
FHLB stock | 4,428 | 4,428 |
Amortized Cost | 297,848 | 320,323 |
Gross Unrealized Gains | 7,762 | 5,665 |
Gross Unrealized Losses | -1,982 | -7,078 |
Estimated Fair Value | 303,628 | 318,910 |
Estimated Fair Value, Less than 12 months | 38,057 | 124,742 |
Unrealized Losses, Less than 12 months | -233 | -5,826 |
Estimated Fair Value, 12 months or longer | 79,304 | 22,940 |
Unrealized Losses, 12 months or longer | -1,749 | -1,252 |
Estimated Fair Value | 117,361 | 147,682 |
Unrealized Losses | -1,982 | -7,078 |
Agency CMOs [Member] | Mortgage-Backed Securities [Member] | Temporarily Impaired Securities [Member] | ||
Investment Holdings Line Items | ||
Estimated Fair Value, Less than 12 months | 9,545 | 7,031 |
Unrealized Losses, Less than 12 months | -91 | -223 |
Estimated Fair Value, 12 months or longer | 7,685 | 1,844 |
Unrealized Losses, 12 months or longer | -114 | -197 |
Estimated Fair Value | 17,230 | 8,875 |
Unrealized Losses | -205 | -420 |
Agency Debt Securities [Member] | Available for Sale Securities [Member] | ||
Investment Holdings Line Items | ||
Amortized Cost | 120,608 | |
Gross Unrealized Gains | 1,856 | |
Gross Unrealized Losses | -2,441 | |
Estimated Fair Value | 120,023 | |
Agency Debt Securities [Member] | U.S. Government and Agency Securities [Member] | Temporarily Impaired Securities [Member] | ||
Investment Holdings Line Items | ||
Estimated Fair Value, Less than 12 months | 14,021 | 44,968 |
Unrealized Losses, Less than 12 months | -20 | -2,107 |
Estimated Fair Value, 12 months or longer | 29,156 | 6,793 |
Unrealized Losses, 12 months or longer | -507 | -334 |
Estimated Fair Value | 43,177 | 51,761 |
Unrealized Losses | -527 | -2,441 |
Tax Free Municipals Bonds [Member] | Available for Sale Securities [Member] | ||
Investment Holdings Line Items | ||
Amortized Cost | 57,399 | 64,291 |
Gross Unrealized Gains | 3,814 | 2,066 |
Gross Unrealized Losses | -166 | -898 |
Estimated Fair Value | 61,047 | 65,459 |
Tax Free Municipals Bonds [Member] | U.S. Government and Agency Securities [Member] | Temporarily Impaired Securities [Member] | ||
Investment Holdings Line Items | ||
Estimated Fair Value, Less than 12 months | 9,848 | |
Unrealized Losses, Less than 12 months | -692 | |
Estimated Fair Value, 12 months or longer | 6,647 | 3,720 |
Unrealized Losses, 12 months or longer | -166 | -206 |
Estimated Fair Value | 6,647 | 13,568 |
Unrealized Losses | -166 | -898 |
Taxable Municipals Bonds [Member] | Available for Sale Securities [Member] | ||
Investment Holdings Line Items | ||
Amortized Cost | 11,871 | 18,337 |
Gross Unrealized Gains | 235 | 458 |
Gross Unrealized Losses | -63 | -738 |
Estimated Fair Value | 12,043 | 18,057 |
Taxable Municipals Bonds [Member] | U.S. Government and Agency Securities [Member] | Temporarily Impaired Securities [Member] | ||
Investment Holdings Line Items | ||
Estimated Fair Value, Less than 12 months | 7,903 | |
Unrealized Losses, Less than 12 months | -660 | |
Estimated Fair Value, 12 months or longer | 4,785 | 797 |
Unrealized Losses, 12 months or longer | -63 | -78 |
Estimated Fair Value | 4,785 | 8,700 |
Unrealized Losses | -63 | -738 |
Trust Preferred Securities [Member] | Available for Sale Securities [Member] | ||
Investment Holdings Line Items | ||
Amortized Cost | 1,600 | 1,600 |
Gross Unrealized Losses | -111 | -111 |
Estimated Fair Value | 1,489 | 1,489 |
Trust Preferred Securities [Member] | U.S. Government and Agency Securities [Member] | Temporarily Impaired Securities [Member] | ||
Investment Holdings Line Items | ||
Estimated Fair Value, 12 months or longer | 1,489 | 1,489 |
Unrealized Losses, 12 months or longer | -111 | -111 |
Estimated Fair Value | 1,489 | 1,489 |
Unrealized Losses | -111 | -111 |
Commercial Bonds [Member] | Available for Sale Securities [Member] | ||
Investment Holdings Line Items | ||
Amortized Cost | 2,000 | 2,000 |
Gross Unrealized Gains | 7 | |
Gross Unrealized Losses | -16 | |
Estimated Fair Value | 2,007 | 1,984 |
Commercial Bonds [Member] | U.S. Government and Agency Securities [Member] | Temporarily Impaired Securities [Member] | ||
Investment Holdings Line Items | ||
Estimated Fair Value, Less than 12 months | 1,984 | |
Unrealized Losses, Less than 12 months | -16 | |
Estimated Fair Value | 1,984 | |
Unrealized Losses | -16 | |
GNMA [Member] | Mortgage-Backed Securities [Member] | ||
Investment Holdings Line Items | ||
Amortized Cost | 27,535 | 17,327 |
Gross Unrealized Gains | 670 | 590 |
Gross Unrealized Losses | -122 | -142 |
Estimated Fair Value | 28,083 | 17,775 |
GNMA [Member] | Mortgage-Backed Securities [Member] | Temporarily Impaired Securities [Member] | ||
Investment Holdings Line Items | ||
Estimated Fair Value, Less than 12 months | 12,568 | 5,320 |
Unrealized Losses, Less than 12 months | -108 | -128 |
Estimated Fair Value, 12 months or longer | 2,895 | 1,551 |
Unrealized Losses, 12 months or longer | -14 | -14 |
Estimated Fair Value | 15,463 | 6,871 |
Unrealized Losses | -122 | -142 |
FNMA [Member] | Mortgage-Backed Securities [Member] | ||
Investment Holdings Line Items | ||
Amortized Cost | 50,617 | 70,104 |
Gross Unrealized Gains | 694 | 526 |
Gross Unrealized Losses | -536 | -1,938 |
Estimated Fair Value | 50,775 | 68,692 |
FNMA [Member] | Mortgage-Backed Securities [Member] | Temporarily Impaired Securities [Member] | ||
Investment Holdings Line Items | ||
Estimated Fair Value, Less than 12 months | 42,464 | |
Unrealized Losses, Less than 12 months | -1,626 | |
Estimated Fair Value, 12 months or longer | 18,927 | 6,746 |
Unrealized Losses, 12 months or longer | -536 | -312 |
Estimated Fair Value | 18,927 | 49,210 |
Unrealized Losses | -536 | -1,938 |
FHLMC [Member] | Mortgage-Backed Securities [Member] | ||
Investment Holdings Line Items | ||
Amortized Cost | 3,276 | 1,301 |
Gross Unrealized Gains | 38 | 35 |
Estimated Fair Value | 3,314 | 1,336 |
SLMA CMOs [Member] | Mortgage-Backed Securities [Member] | ||
Investment Holdings Line Items | ||
Amortized Cost | 9,895 | 8,459 |
Gross Unrealized Losses | -252 | -374 |
Estimated Fair Value | 9,643 | 8,085 |
SLMA CMOs [Member] | Mortgage-Backed Securities [Member] | Temporarily Impaired Securities [Member] | ||
Investment Holdings Line Items | ||
Estimated Fair Value, Less than 12 months | 1,923 | |
Unrealized Losses, Less than 12 months | -14 | |
Estimated Fair Value, 12 months or longer | 7,720 | |
Unrealized Losses, 12 months or longer | -238 | |
Estimated Fair Value | 9,643 | |
Unrealized Losses | -252 | |
Agency CMOs [Member] | Mortgage-Backed Securities [Member] | ||
Investment Holdings Line Items | ||
Amortized Cost | 28,024 | 16,296 |
Gross Unrealized Gains | 176 | 134 |
Gross Unrealized Losses | -205 | -420 |
Estimated Fair Value | 27,995 | 16,010 |
U.S. Treasury Securities [Member] | Available for Sale Securities [Member] | ||
Investment Holdings Line Items | ||
Amortized Cost | 3,977 | |
Gross Unrealized Gains | 3 | |
Estimated Fair Value | 3,980 | |
U.S. Agency Securities [Member] | Available for Sale Securities [Member] | ||
Investment Holdings Line Items | ||
Amortized Cost | 101,654 | |
Gross Unrealized Gains | 2,125 | |
Gross Unrealized Losses | -527 | |
Estimated Fair Value | 103,252 | |
Non-Agency CMOs [Member] | Mortgage-Backed Securities [Member] | Temporarily Impaired Securities [Member] | ||
Investment Holdings Line Items | ||
Estimated Fair Value, Less than 12 months | 5,224 | |
Unrealized Losses, Less than 12 months | -374 | |
Estimated Fair Value | 5,224 | |
Unrealized Losses | ($374) |
Securities_Maturities_of_Debt_
Securities - Maturities of Debt Securities Available for Sale (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost of debt securities available for sale, due within one year | $4,830 | $501 |
Amortized cost of debt securities available for sale, due in one to five years | 21,564 | 12,630 |
Amortized cost of debt securities available for sale, due in five to ten years | 41,683 | 38,192 |
Amortized cost of debt securities available for sale, due after ten years | 33,119 | 49,284 |
Total amortized cost debt securities available for sale with specific maturities | 101,196 | 100,607 |
Amortized Cost | 297,848 | 320,323 |
Estimated fair value of debt securities available for sale, due within one year | 4,927 | 501 |
Estimated fair value of debt securities available for sale, due in one to five years | 21,818 | 12,630 |
Estimated fair value of debt securities available for sale, due in five to ten years | 42,613 | 38,192 |
Estimated fair value of debt securities available for sale, due after ten years | 35,380 | 49,284 |
Total estimated fair value of debt securities available for sale with specific maturities | 104,738 | 100,607 |
Total unrestricted securities available for sale at estimated fair value | 303,628 | 320,323 |
Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total amortized cost of debt securities available for sale without specific maturities | 119,347 | 113,487 |
Total estimated fair value of debt securities available for sale without specific maturities | 119,810 | 113,487 |
Amortizing Agency Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total amortized cost of debt securities available for sale without specific maturities | 77,305 | 106,229 |
Total estimated fair value of debt securities available for sale without specific maturities | $79,080 | $106,229 |
Securities_Additional_Informat
Securities - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||||
Sep. 30, 2013 | Jun. 30, 2008 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 31, 2010 | Mar. 16, 2015 | |
Securities | |||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
Number of securities with unrealized losses | 67 | ||||||
Investment par value | $2,000,000 | ||||||
Investment interest percentage | 8.00% | ||||||
Dividend payment period | 5 years | ||||||
Impairment charges | 400,000 | ||||||
Current par value of securities | 1,600,000 | ||||||
Past due interest | 4,576,000 | 5,233,000 | |||||
Available for sale for proceeds | 75,300,000 | 68,500,000 | 69,000,000 | ||||
Gross gains in available for sale for proceeds | 788,000 | 1,700,000 | 1,800,000 | ||||
Gross loss in available for sale for proceeds | 210,000 | 33,000 | 115,000 | ||||
Securities pledged to municipalities for deposits in excess of FDIC limits, book value | 181,800,000 | ||||||
Securities pledged to municipalities for deposits in excess of FDIC limits, market value | 192,800,000 | ||||||
Letter of credit issued by FHLB | 11,000,000 | ||||||
Scenario, Forecast [Member] | |||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
Past due interest | $871,000 | ||||||
FFKY [Member] | |||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
Period of deferring dividend payments | 5 years | ||||||
Subordinated Debt [Member] | |||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
Total risk based capital ratio | 30 years |
Loans_Receivable_Net_Compositi
Loans Receivable, Net - Composition of Loan Portfolio by Type of Loan (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Real estate loans: | ||
Total loans, gross | $545,839 | $552,406 |
Deferred loan cost, net of fees | -286 | -92 |
Less allowance for loan losses | -6,289 | -8,682 |
Total loans | 539,264 | 543,632 |
Loans and Leases Receivable in Percentage | 100.00% | 100.00% |
Real Estate Loans [Member] | ||
Real estate loans: | ||
Total loans, gross | 457,247 | 477,198 |
Loans and Leases Receivable in Percentage | 83.80% | 86.40% |
Consumer Loans [Member] | ||
Real estate loans: | ||
Total loans, gross | 14,438 | 11,167 |
Loans and Leases Receivable in Percentage | 2.60% | 2.00% |
Commercial Loans [Member] | ||
Real estate loans: | ||
Total loans, gross | 74,154 | 64,041 |
Loans and Leases Receivable in Percentage | 13.60% | 11.60% |
Total Other Loans [Member] | ||
Real estate loans: | ||
Total loans, gross | 88,592 | 75,208 |
Loans and Leases Receivable in Percentage | 16.20% | 13.60% |
One-to-Four Family Mortgages [Member] | ||
Real estate loans: | ||
Total loans, gross | 150,551 | 155,252 |
One-to-Four Family Mortgages [Member] | Real Estate Loans [Member] | ||
Real estate loans: | ||
Total loans, gross | 150,551 | 155,252 |
Loans and Leases Receivable in Percentage | 27.60% | 28.10% |
Second Mortgages (Closed End) [Member] | Real Estate Loans [Member] | ||
Real estate loans: | ||
Total loans, gross | 2,102 | 3,248 |
Loans and Leases Receivable in Percentage | 0.40% | 0.60% |
Home Equity Line of Credit [Member] | ||
Real estate loans: | ||
Total loans, gross | 34,238 | 34,103 |
Home Equity Line of Credit [Member] | Real Estate Loans [Member] | ||
Real estate loans: | ||
Total loans, gross | 34,238 | 34,103 |
Loans and Leases Receivable in Percentage | 6.30% | 6.20% |
Multi-Family [Member] | ||
Real estate loans: | ||
Total loans, gross | 25,991 | 29,736 |
Multi-Family [Member] | Real Estate Loans [Member] | ||
Real estate loans: | ||
Total loans, gross | 25,991 | 29,736 |
Loans and Leases Receivable in Percentage | 4.80% | 5.40% |
Construction [Member] | ||
Real estate loans: | ||
Total loans, gross | 24,241 | 10,618 |
Construction [Member] | Real Estate Loans [Member] | ||
Real estate loans: | ||
Total loans, gross | 24,241 | 10,618 |
Loans and Leases Receivable in Percentage | 4.40% | 1.90% |
Land [Member] | ||
Real estate loans: | ||
Total loans, gross | 26,654 | 34,681 |
Land [Member] | Real Estate Loans [Member] | ||
Real estate loans: | ||
Total loans, gross | 26,654 | 34,681 |
Loans and Leases Receivable in Percentage | 4.90% | 6.30% |
Farmland [Member] | ||
Real estate loans: | ||
Total loans, gross | 42,874 | 51,868 |
Farmland [Member] | Real Estate Loans [Member] | ||
Real estate loans: | ||
Total loans, gross | 42,874 | 51,868 |
Loans and Leases Receivable in Percentage | 7.80% | 9.40% |
Non-Residential Real Estate [Member] | ||
Real estate loans: | ||
Total loans, gross | 150,596 | 157,692 |
Non-Residential Real Estate [Member] | Real Estate Loans [Member] | ||
Real estate loans: | ||
Total loans, gross | $150,596 | $157,692 |
Loans and Leases Receivable in Percentage | 27.60% | 28.50% |
Loans_Receivable_Net_Additiona
Loans Receivable, Net - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable impaired | $37,367,000 | $42,644,000 | |
Mortgage loans service for benefit of others | 30,400,000 | 32,600,000 | 40,300,000 |
Annual reviews of loan to ascertain the borrowers continued ability to service | 1,000,000 | ||
Loans past due period for classify to risk grade | 60 days | ||
Loans past due period for classify to substandard grade | 12 months | ||
Average recorded investment in impaired loans | 38,515,000 | 43,094,000 | 79,300,000 |
Interest income recognized on impaired loans | 1,966,000 | 859,000 | 2,800,000 |
Non-accrual Loans | 3,175,000 | 10,066,000 | |
Interest income foregone on non accrual loans | 76,000 | 432,000 | 271,000 |
Performing loans | 0 | 0 | |
Loans to officers and directors | 4,022,000 | 4,800,000 | 8,846,000 |
Funds undisbursed to officers and directors | 447,000 | ||
Land [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Non-accrual Loans | 215,000 | 1,218,000 | |
Owner Occupied Properties [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Secured non-residential real estate loans | 82,000,000 | ||
Non Owner Occupied Properties [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Secured non-residential real estate loans | 68,600,000 | ||
Real Estate Loans [Member] | Land [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable impaired | 26,700,000 | ||
Freddie Mac [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Mortgage loans service for benefit of Freddie Mac | 25,000,000 | ||
Impaired Loans Substandard [Member] | Real Estate Loans [Member] | Land [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable impaired | 10,800,000 | ||
Percentage of land development portfolio | 40.60% | ||
Impaired Loans Substandard [Member] | Real Estate Loans [Member] | Loans Receivable Residential And Land Development [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable impaired | $37,400,000 |
Loans_Receivable_Net_Summary_o
Loans Receivable, Net - Summary of Company's Impaired Loans (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | $545,839 | $552,406 |
Specific Allowance for Impairment | 1,514 | 1,929 |
Allowance for Loans not Impaired | 4,775 | 6,753 |
One-to-Four Family Mortgages [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 150,551 | 155,252 |
Specific Allowance for Impairment | 51 | 597 |
Allowance for Loans not Impaired | 1,147 | 1,451 |
Home Equity Line of Credit [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 34,238 | 34,103 |
Allowance for Loans not Impaired | 181 | 218 |
Junior Liens [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 2,102 | 3,248 |
Allowance for Loans not Impaired | 14 | 39 |
Multi-Family [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 25,991 | 29,736 |
Allowance for Loans not Impaired | 85 | 466 |
Construction [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 24,241 | 10,618 |
Allowance for Loans not Impaired | 146 | 88 |
Land [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 26,654 | 34,681 |
Specific Allowance for Impairment | 663 | 771 |
Allowance for Loans not Impaired | 460 | 534 |
Non-Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 150,596 | 157,692 |
Specific Allowance for Impairment | 738 | 465 |
Allowance for Loans not Impaired | 1,345 | 2,254 |
Farmland [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 42,874 | 51,868 |
Allowance for Loans not Impaired | 461 | 510 |
Consumer Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 14,438 | 11,167 |
Specific Allowance for Impairment | 62 | 96 |
Allowance for Loans not Impaired | 432 | 445 |
Commercial Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 74,154 | 64,041 |
Allowance for Loans not Impaired | 504 | 748 |
Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 498,609 | 507,332 |
Pass [Member] | One-to-Four Family Mortgages [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 146,129 | 149,351 |
Pass [Member] | Home Equity Line of Credit [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 33,481 | 33,462 |
Pass [Member] | Junior Liens [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 2,025 | 3,126 |
Pass [Member] | Multi-Family [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 20,066 | 29,736 |
Pass [Member] | Construction [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 24,241 | 10,443 |
Pass [Member] | Land [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 15,328 | 19,899 |
Pass [Member] | Non-Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 131,854 | 143,044 |
Pass [Member] | Farmland [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 40,121 | 46,042 |
Pass [Member] | Consumer Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 14,118 | 10,727 |
Pass [Member] | Commercial Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 71,246 | 61,502 |
Special Mention [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 9,863 | 2,430 |
Special Mention [Member] | One-to-Four Family Mortgages [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 203 | 814 |
Special Mention [Member] | Junior Liens [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 40 | 43 |
Special Mention [Member] | Multi-Family [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 2,904 | |
Special Mention [Member] | Land [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 362 | 52 |
Special Mention [Member] | Non-Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 5,492 | 515 |
Special Mention [Member] | Farmland [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 516 | 480 |
Special Mention [Member] | Consumer Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 21 | |
Special Mention [Member] | Commercial Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 325 | 526 |
Impaired Loans Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 37,367 | 42,644 |
Impaired Loans Substandard [Member] | One-to-Four Family Mortgages [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 4,219 | 5,087 |
Impaired Loans Substandard [Member] | Home Equity Line of Credit [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 757 | 641 |
Impaired Loans Substandard [Member] | Junior Liens [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 37 | 79 |
Impaired Loans Substandard [Member] | Multi-Family [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 3,021 | |
Impaired Loans Substandard [Member] | Construction [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 175 | |
Impaired Loans Substandard [Member] | Land [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 10,964 | 14,730 |
Impaired Loans Substandard [Member] | Non-Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 13,250 | 14,133 |
Impaired Loans Substandard [Member] | Farmland [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 2,237 | 5,346 |
Impaired Loans Substandard [Member] | Consumer Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 299 | 440 |
Impaired Loans Substandard [Member] | Commercial Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | $2,583 | $2,013 |
Loans_Receivable_Net_Impaired_
Loans Receivable, Net - Impaired Loans by Classification Type (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | $31,984,000 | $33,183,000 | |
Total impaired loans Recorded Investment | 37,367,000 | 42,644,000 | |
Unpaid Principal Balance | 31,984,000 | 34,616,000 | |
Total impaired loans Unpaid Principal Balance | 38,945,000 | 44,941,000 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 28,972,000 | 31,484,000 | |
Interest Income Recognized | 1,693,000 | 710,000 | |
Recorded Investment | 5,383,000 | 9,461,000 | |
Unpaid Principal Balance | 6,961,000 | 10,325,000 | |
Related Allowance | 1,514,000 | 1,929,000 | |
Average Recorded Investment | 9,543,000 | 11,610,000 | |
Total Average Recorded Investment | 38,515,000 | 43,094,000 | 79,300,000 |
Interest Income Recognized | 273,000 | 149,000 | |
Total impaired loans Interest Income Recognized | 1,966,000 | 859,000 | 2,800,000 |
One-to-Four Family Mortgages [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 3,501,000 | 3,216,000 | |
Unpaid Principal Balance | 3,501,000 | 3,216,000 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 2,972,000 | 2,361,000 | |
Interest Income Recognized | 176,000 | 8,000 | |
Recorded Investment | 718,000 | 1,871,000 | |
Unpaid Principal Balance | 718,000 | 1,871,000 | |
Related Allowance | 51,000 | 597,000 | |
Average Recorded Investment | 1,434,000 | 2,501,000 | |
Interest Income Recognized | 44,000 | 9,000 | |
Home Equity Line of Credit [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 757,000 | 641,000 | |
Unpaid Principal Balance | 757,000 | 641,000 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 690,000 | 564,000 | |
Interest Income Recognized | 35,000 | 3,000 | |
Average Recorded Investment | 279,000 | ||
Junior Liens [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 37,000 | 79,000 | |
Unpaid Principal Balance | 37,000 | 79,000 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 39,000 | 239,000 | |
Interest Income Recognized | 2,000 | 1,000 | |
Average Recorded Investment | 113,000 | ||
Multi-Family [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 3,021,000 | ||
Unpaid Principal Balance | 3,021,000 | ||
Related Allowance | 0 | 0 | |
Average Recorded Investment | 1,342,000 | 990,000 | |
Interest Income Recognized | 190,000 | ||
Construction [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 175,000 | ||
Unpaid Principal Balance | 175,000 | ||
Related Allowance | 0 | 0 | |
Average Recorded Investment | 29,000 | 1,072,000 | |
Interest Income Recognized | 5,000 | ||
Average Recorded Investment | 1,385,000 | ||
Land [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 7,740,000 | 10,882,000 | |
Unpaid Principal Balance | 7,740,000 | 12,315,000 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 8,978,000 | 10,668,000 | |
Interest Income Recognized | 339,000 | 186,000 | |
Recorded Investment | 3,224,000 | 3,848,000 | |
Unpaid Principal Balance | 4,737,000 | 3,848,000 | |
Related Allowance | 663,000 | 771,000 | |
Average Recorded Investment | 3,418,000 | 2,741,000 | |
Interest Income Recognized | 160,000 | 29,000 | |
Non-Residential Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 12,057,000 | 10,775,000 | |
Unpaid Principal Balance | 12,057,000 | 10,775,000 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 8,672,000 | 6,196,000 | |
Interest Income Recognized | 669,000 | 263,000 | |
Recorded Investment | 1,193,000 | 3,358,000 | |
Unpaid Principal Balance | 1,258,000 | 4,222,000 | |
Related Allowance | 738,000 | 465,000 | |
Average Recorded Investment | 3,617,000 | 2,243,000 | |
Interest Income Recognized | 69,000 | 111,000 | |
Farmland [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 2,237,000 | 5,346,000 | |
Unpaid Principal Balance | 2,237,000 | 5,346,000 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 3,968,000 | 6,955,000 | |
Interest Income Recognized | 125,000 | 149,000 | |
Average Recorded Investment | 619,000 | 1,601,000 | |
Consumer Loans [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 51,000 | 56,000 | |
Unpaid Principal Balance | 51,000 | 56,000 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 36,000 | 48,000 | |
Interest Income Recognized | 3,000 | ||
Recorded Investment | 248,000 | 384,000 | |
Unpaid Principal Balance | 248,000 | 384,000 | |
Related Allowance | 62,000 | 96,000 | |
Average Recorded Investment | 355,000 | 401,000 | |
Commercial Loans [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 2,583,000 | 2,013,000 | |
Unpaid Principal Balance | 2,583,000 | 2,013,000 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 2,246,000 | 2,391,000 | |
Interest Income Recognized | 154,000 | 95,000 | |
Average Recorded Investment | $100,000 | $346,000 |
Loans_Receivable_Net_Allowance
Loans Receivable, Net - Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Impairment Method (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | $1,514 | $1,929 |
Collectively evaluated for impairment | 4,775 | 6,753 |
Total ending allowance balance | 6,289 | 8,682 |
Loans individually evaluated for impairment | 37,367 | 42,644 |
Loans collectively evaluated for impairment | 508,472 | 509,762 |
Total ending loans balance | 545,839 | 552,406 |
Commercial Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Collectively evaluated for impairment | 504 | 748 |
Total ending allowance balance | 504 | 748 |
Loans individually evaluated for impairment | 2,583 | 2,013 |
Loans collectively evaluated for impairment | 71,571 | 62,028 |
Total ending loans balance | 74,154 | 64,041 |
Land Development/Construction [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 663 | 771 |
Collectively evaluated for impairment | 606 | 622 |
Total ending allowance balance | 1,269 | 1,393 |
Loans individually evaluated for impairment | 10,964 | 14,905 |
Loans collectively evaluated for impairment | 39,931 | 30,394 |
Total ending loans balance | 50,895 | 45,299 |
Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 738 | 465 |
Collectively evaluated for impairment | 1,891 | 3,230 |
Total ending allowance balance | 2,629 | 3,695 |
Loans individually evaluated for impairment | 18,508 | 19,479 |
Loans collectively evaluated for impairment | 200,953 | 219,817 |
Total ending loans balance | 219,461 | 239,296 |
Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 51 | 597 |
Collectively evaluated for impairment | 1,342 | 1,708 |
Total ending allowance balance | 1,393 | 2,305 |
Loans individually evaluated for impairment | 5,013 | 5,807 |
Loans collectively evaluated for impairment | 181,878 | 186,796 |
Total ending loans balance | 186,891 | 192,603 |
Consumer Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 62 | 96 |
Collectively evaluated for impairment | 432 | 445 |
Total ending allowance balance | 494 | 541 |
Loans individually evaluated for impairment | 299 | 440 |
Loans collectively evaluated for impairment | 14,139 | 10,727 |
Total ending loans balance | $14,438 | $11,167 |
Loans_Receivable_Net_Allowance1
Loans Receivable, Net - Allowance for Loan Loss Account by Loan (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | $8,682 | $10,648 | |
Charge off | -1,232 | -4,444 | -3,684 |
Recoveries | 1,112 | 874 | |
General Provision | -1,846 | -54 | |
Specific Provision | -427 | 1,658 | |
Ending balance | 6,289 | 8,682 | 10,648 |
One-to-Four Family Mortgages [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | 2,048 | 2,490 | |
Charge off | -233 | -852 | |
Recoveries | 24 | 329 | |
General Provision | -304 | -285 | |
Specific Provision | -337 | 366 | |
Ending balance | 1,198 | 2,048 | |
Home Equity Line of Credit [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | 218 | 374 | |
Charge off | -83 | -22 | |
Recoveries | 3 | 9 | |
General Provision | -37 | -88 | |
Specific Provision | 80 | -55 | |
Ending balance | 181 | 218 | |
Junior Liens [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | 39 | 230 | |
Charge off | -119 | ||
Recoveries | 9 | 71 | |
General Provision | -25 | 5 | |
Specific Provision | -9 | -148 | |
Ending balance | 14 | 39 | |
Multi-Family [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | 466 | 524 | |
Charge off | -38 | ||
Recoveries | 164 | ||
General Provision | -381 | -20 | |
Specific Provision | -164 | ||
Ending balance | 85 | 466 | |
Construction [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | 88 | 256 | |
Charge off | -139 | ||
Recoveries | 9 | ||
General Provision | 58 | -168 | |
Specific Provision | 130 | ||
Ending balance | 146 | 88 | |
Land [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | 1,305 | 2,184 | |
Charge off | -1,432 | ||
Recoveries | 9 | ||
General Provision | -74 | -718 | |
Specific Provision | -108 | 1,262 | |
Ending balance | 1,123 | 1,305 | |
Non-Residential Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | 2,719 | 2,921 | |
Charge off | -66 | -1,041 | |
Recoveries | 864 | 14 | |
General Provision | -1,368 | 757 | |
Specific Provision | -66 | 68 | |
Ending balance | 2,083 | 2,719 | |
Farmland [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | 510 | 712 | |
General Provision | 542 | -202 | |
Specific Provision | -591 | ||
Ending balance | 461 | 510 | |
Consumer Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | 541 | 338 | |
Charge off | -415 | -649 | |
Recoveries | 109 | 246 | |
General Provision | -13 | 228 | |
Specific Provision | 272 | 378 | |
Ending balance | 494 | 541 | |
Commercial Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | 748 | 619 | |
Charge off | -296 | -291 | |
Recoveries | 94 | 32 | |
General Provision | -244 | 437 | |
Specific Provision | 202 | -49 | |
Ending balance | $504 | $748 |
Loans_Receivable_Net_NonAccrua
Loans Receivable, Net - Non-Accrual Loans (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total non-accrual loans | $3,175 | $10,066 |
One-to-Four Family Mortgages [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total non-accrual loans | 1,501 | 945 |
Home Equity Line of Credit [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total non-accrual loans | 1 | |
Junior Liens [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total non-accrual loans | 2 | |
Multi-Family [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total non-accrual loans | 95 | |
Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total non-accrual loans | 175 | |
Land [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total non-accrual loans | 215 | 1,218 |
Non-Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total non-accrual loans | 1,159 | 6,546 |
Farmland [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total non-accrual loans | 115 | 703 |
Consumer Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total non-accrual loans | 13 | |
Commercial Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total non-accrual loans | $90 | $463 |
Loans_Receivable_Net_Past_Due_
Loans Receivable, Net - Past Due and Non-Accrual Balances by Loan Classification (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Currently Performing | $496,922 | $505,947 |
30-89 Days Past Due | 1,687 | 1,385 |
Non-accrual Loans | 3,175 | 10,066 |
Special Mention | 9,863 | 2,430 |
Impaired Loans Currently Performing Substandard | 34,192 | 32,578 |
Impaired Loans Currently Performing Doubtful | 0 | 0 |
Total loans, gross | 545,839 | 552,406 |
One-to-Four Family Mortgages [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Currently Performing | 145,372 | 148,759 |
30-89 Days Past Due | 757 | 592 |
Non-accrual Loans | 1,501 | 945 |
Special Mention | 203 | 814 |
Impaired Loans Currently Performing Substandard | 2,718 | 4,142 |
Impaired Loans Currently Performing Doubtful | 0 | 0 |
Total loans, gross | 150,551 | 155,252 |
Home Equity Line of Credit [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Currently Performing | 33,338 | 33,369 |
30-89 Days Past Due | 143 | 93 |
Non-accrual Loans | 1 | |
Impaired Loans Currently Performing Substandard | 757 | 640 |
Impaired Loans Currently Performing Doubtful | 0 | 0 |
Total loans, gross | 34,238 | 34,103 |
Junior Liens [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Currently Performing | 2,025 | 3,126 |
Non-accrual Loans | 2 | |
Special Mention | 40 | 43 |
Impaired Loans Currently Performing Substandard | 37 | 77 |
Impaired Loans Currently Performing Doubtful | 0 | 0 |
Total loans, gross | 2,102 | 3,248 |
Multi-Family [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Currently Performing | 20,066 | 29,736 |
Non-accrual Loans | 95 | |
Special Mention | 2,904 | |
Impaired Loans Currently Performing Substandard | 2,926 | |
Impaired Loans Currently Performing Doubtful | 0 | 0 |
Total loans, gross | 25,991 | 29,736 |
Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Currently Performing | 24,241 | 10,443 |
Non-accrual Loans | 175 | |
Impaired Loans Currently Performing Doubtful | 0 | 0 |
Total loans, gross | 24,241 | 10,618 |
Land [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Currently Performing | 14,674 | 19,899 |
30-89 Days Past Due | 654 | |
Non-accrual Loans | 215 | 1,218 |
Special Mention | 362 | 52 |
Impaired Loans Currently Performing Substandard | 10,749 | 13,512 |
Impaired Loans Currently Performing Doubtful | 0 | 0 |
Total loans, gross | 26,654 | 34,681 |
Non-Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Currently Performing | 131,854 | 142,701 |
30-89 Days Past Due | 343 | |
Non-accrual Loans | 1,159 | 6,546 |
Special Mention | 5,492 | 515 |
Impaired Loans Currently Performing Substandard | 12,091 | 7,587 |
Impaired Loans Currently Performing Doubtful | 0 | 0 |
Total loans, gross | 150,596 | 157,692 |
Farmland [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Currently Performing | 40,057 | 46,042 |
30-89 Days Past Due | 64 | |
Non-accrual Loans | 115 | 703 |
Special Mention | 516 | 480 |
Impaired Loans Currently Performing Substandard | 2,122 | 4,643 |
Impaired Loans Currently Performing Doubtful | 0 | 0 |
Total loans, gross | 42,874 | 51,868 |
Consumer Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Currently Performing | 14,104 | 10,493 |
30-89 Days Past Due | 14 | 234 |
Non-accrual Loans | 13 | |
Special Mention | 21 | |
Impaired Loans Currently Performing Substandard | 299 | 427 |
Impaired Loans Currently Performing Doubtful | 0 | 0 |
Total loans, gross | 14,438 | 11,167 |
Commercial Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Currently Performing | 71,191 | 61,379 |
30-89 Days Past Due | 55 | 123 |
Non-accrual Loans | 90 | 463 |
Special Mention | 325 | 526 |
Impaired Loans Currently Performing Substandard | 2,493 | 1,550 |
Impaired Loans Currently Performing Doubtful | 0 | 0 |
Total loans, gross | $74,154 | $64,041 |
Loans_Receivable_Net_Summary_o1
Loans Receivable, Net - Summary of the Activity in Loans Classified as TDRs (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 |
Financing Receivable Modifications Number Of Contracts [Line Items] | |||
Beginning Balance | $11,038 | ||
New TDR | 10,271 | 3,379 | |
Loss or Foreclosure | -1,257 | ||
Removed due to Payment or Performance | -3,864 | ||
Transfer to Held for sale | -6,987 | ||
Removed from (Taken to) Non-accrual | -9,296 | ||
Ending Balance | 3,284 | 11,038 | |
One-to-Four Family Mortgages [Member] | |||
Financing Receivable Modifications Number Of Contracts [Line Items] | |||
Beginning Balance | 1,888 | ||
New TDR | 242 | ||
Removed due to Payment or Performance | -1,863 | ||
Removed from (Taken to) Non-accrual | -267 | ||
Ending Balance | 1,888 | ||
Junior Liens [Member] | |||
Financing Receivable Modifications Number Of Contracts [Line Items] | |||
Beginning Balance | 96 | ||
Removed due to Payment or Performance | -10 | ||
Removed from (Taken to) Non-accrual | -86 | ||
Ending Balance | 96 | ||
Multi-Family [Member] | |||
Financing Receivable Modifications Number Of Contracts [Line Items] | |||
Beginning Balance | 234 | ||
Removed due to Payment or Performance | -234 | ||
Ending Balance | 234 | ||
Construction [Member] | |||
Financing Receivable Modifications Number Of Contracts [Line Items] | |||
Beginning Balance | 4,112 | ||
Removed from (Taken to) Non-accrual | -4,112 | ||
Ending Balance | 4,112 | ||
Land [Member] | |||
Financing Receivable Modifications Number Of Contracts [Line Items] | |||
Beginning Balance | 656 | ||
New TDR | 2,649 | ||
Loss or Foreclosure | -393 | ||
Removed due to Payment or Performance | -656 | ||
Removed from (Taken to) Non-accrual | -2,256 | ||
Ending Balance | 656 | ||
Non-Residential Real Estate [Member] | |||
Financing Receivable Modifications Number Of Contracts [Line Items] | |||
Beginning Balance | 3,173 | ||
New TDR | 10,271 | 266 | |
Loss or Foreclosure | -864 | ||
Transfer to Held for sale | -6,987 | ||
Removed from (Taken to) Non-accrual | -2,575 | ||
Ending Balance | 3,284 | 3,173 | |
Farmland [Member] | |||
Financing Receivable Modifications Number Of Contracts [Line Items] | |||
Beginning Balance | 865 | ||
Removed due to Payment or Performance | -865 | ||
Ending Balance | 865 | ||
Consumer Loans [Member] | |||
Financing Receivable Modifications Number Of Contracts [Line Items] | |||
Beginning Balance | 5 | ||
Removed due to Payment or Performance | -5 | ||
Ending Balance | 5 | ||
Commercial Loans [Member] | |||
Financing Receivable Modifications Number Of Contracts [Line Items] | |||
Beginning Balance | 9 | ||
New TDR | 222 | ||
Removed due to Payment or Performance | -231 | ||
Ending Balance | $9 |
Loans_Receivable_Net_Summary_o2
Loans Receivable, Net - Summary of Loans to Officers, Directors and Their Affiliates (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Receivables [Abstract] | ||
Balance at beginning of period | $4,800 | $8,846 |
New loans | 669 | 410 |
Principal repayments | -1,447 | -4,456 |
Balance at end of period | $4,022 | $4,800 |
Premises_and_Equipment_Compone
Premises and Equipment - Components of Premises and Equipment Included in Consolidated Balance Sheets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, Gross | $34,800 | $34,636 |
Less accumulated depreciation | 11,860 | 11,528 |
Premises and equipment, net | 22,940 | 23,108 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, Gross | 6,576 | 6,526 |
Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, Gross | 611 | 575 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, Gross | 20,914 | 20,257 |
Construction In Process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, Gross | 486 | 582 |
Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, Gross | $6,213 | $6,696 |
Premises_and_Equipment_Additio
Premises and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $1,336 | $1,502 | $1,587 |
Intangible_Assets_Amount_of_Ot
Intangible Assets - Amount of Other Intangible Assets and the Changes in the Carrying Amounts of Other Intangible Assets (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets [Line Items] | |||
Intangible Assets, Beginning balance | $130 | ||
Amortization | -97 | -162 | -227 |
Intangible Assets, Ending balance | 33 | 130 | |
Other Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible Assets, Beginning balance | 130 | 292 | 519 |
Amortization | -97 | -162 | -227 |
Intangible Assets, Ending balance | $33 | $130 | $292 |
Deposits_Scheduled_Maturities_
Deposits - Scheduled Maturities of Other Time Deposits (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Banking and Thrift [Abstract] | ||
2015 | $139,708 | |
2016 | 137,147 | |
2017 | 32,175 | |
2018 | 15,299 | |
2019 | 7,576 | |
2020 and thereafter | 10 | |
Other time deposits | $331,915 | $381,996 |
Deposits_Additional_Informatio
Deposits - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule Of Deposits Liabilities Balance Sheet Reported Amounts [Line Items] | ||
Other time deposits | $169,300,000 | $200,200,000 |
Deposits of directors, members of senior management and their affiliates | 4,400,000 | |
Average daily clearings | 6,100,000 | |
Deposit with overdraft status | 248,000 | 384,000 |
Brokered and CDARS Deposits | 731,308,000 | 762,997,000 |
Brokered Deposits [Member] | ||
Schedule Of Deposits Liabilities Balance Sheet Reported Amounts [Line Items] | ||
Brokered and CDARS Deposits | $37,100,000 | $46,300,000 |
Deposits_Interest_Expenses_on_
Deposits - Interest Expenses on Deposits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Banking and Thrift [Abstract] | |||
Interest bearing checking accounts | $1,253 | $1,243 | $1,180 |
Money market accounts | 86 | 73 | 58 |
Savings | 109 | 79 | 71 |
Other time deposits | 4,155 | 5,719 | 9,262 |
Total | $5,603 | $7,114 | $10,571 |
Advances_from_Federal_Home_Loa2
Advances from Federal Home Loan Bank - Summarized Federal Home Loan Bank Advances (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Federal Home Loan Banks [Abstract] | ||
Fixed-rate | $34,000 | $46,780 |
Weighted Average Rate | 0.88% | 3.72% |
Advances_from_Federal_Home_Loa3
Advances from Federal Home Loan Bank - Scheduled Maturities of FHLB Advances (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Federal Home Loan Banks [Abstract] | ||
2015, Fixed rate | $30,000 | |
2016, Fixed rate | 4,000 | |
Total, Fixed rate | $34,000 | |
2015, Average cost | 0.29% | |
2016, Average cost | 5.34% | |
Average cost | 0.88% | 3.72% |
Advances_from_Federal_Home_Loa4
Advances from Federal Home Loan Bank - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | ||
Dec. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Federal Home Loan Bank, Advances [Line Items] | ||||
Prepayment of FHLB advances | $35,900,000 | |||
Prepayment of FHLB penality | 2,500,000 | |||
Advances from Federal Home Loan Bank | 57,000,000 | 23,000,000 | 3,000,000 | |
Agreement of first mortgage loan and non-residential real estate loan | 125.00% | |||
Additional borrowing capacity | 52,600,000 | |||
Additional collateral pledged that could be pledged to FHLB | 40,100,000 | |||
Maturity of One Months [Member] | ||||
Federal Home Loan Bank, Advances [Line Items] | ||||
Advances from Federal Home Loan Bank | 15,000,000 | |||
Quarterly Callable [Member] | ||||
Federal Home Loan Bank, Advances [Line Items] | ||||
Advances from Federal Home Loan Bank | 15,000,000 | |||
Federal Home Loan Bank of Cincinnati [Member] | ||||
Federal Home Loan Bank, Advances [Line Items] | ||||
Approved line of credit | 30,000,000 | |||
BVA Compass Bank [Member] | ||||
Federal Home Loan Bank, Advances [Line Items] | ||||
Approved line of credit | 8,000,000 | |||
Bva Compass Bank and Cincinnati [Member] | Overnight Line of Credit [Member] | ||||
Federal Home Loan Bank, Advances [Line Items] | ||||
Overnight lines of credit outstanding amount | $0 |
Repurchase_Agreements_Addition
Repurchase Agreements - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2006 | Dec. 31, 2014 | Dec. 31, 2013 |
Agreement | |||
Banking and Thrift [Abstract] | |||
Number of long term repurchase agreements | 2 | ||
Investment securities for repurchase agreements | $57.90 | ||
Maximum repurchase balances outstanding | $57.90 | $58.10 |
Repurchase_Agreement_Cost_and_
Repurchase Agreement - Cost and Maturities of Company's Repurchase Agreements (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Balance of Third Party | $57,358 | $52,759 |
Average Rate | 1.42% | 2.29% |
Merrill Lynch [Member] | Quarterly Callable [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Balance of Third Party | 6,000 | 6,000 |
Average Rate | 4.36% | 4.36% |
Maturity | 18-Sep-16 | 18-Sep-16 |
Various Customers [Member] | Overnight [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Balance of Third Party | 51,358 | 36,759 |
Average Rate | 0.60% | 0.99% |
Deutsch Bank [Member] | Quarterly Callable[Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Balance of Third Party | $10,000 | |
Average Rate | 4.28% | |
Maturity | 5-Sep-14 |
Fair_Value_Measurement_Assets_
Fair Value Measurement - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ||
Available for sale securities | $303,628 | $318,910 |
Fair Value, Measurements, Recurring [Member] | ||
Assets | ||
Available for sale securities | 303,628 | 318,910 |
Liabilities | ||
Interest rate swap | 390 | 750 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets | ||
Available for sale securities | 302,139 | 317,421 |
Liabilities | ||
Interest rate swap | 390 | 750 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets | ||
Available for sale securities | 302,139 | 317,421 |
Liabilities | ||
Interest rate swap | 390 | 750 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets | ||
Available for sale securities | 1,489 | 1,489 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets | ||
Available for sale securities | $1,489 | $1,489 |
Fair_Value_Measurement_Assets_1
Fair Value Measurement - Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ||
Other real estate owned | $1,927 | $1,674 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Assets | ||
Other real estate owned | 1,927 | 1,674 |
Impaired loans, net of allowance | 35,853 | 40,715 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Assets | ||
Other real estate owned | 1,927 | 1,674 |
Impaired loans, net of allowance | $35,853 | $40,715 |
Fair_Value_Measurement_Assets_2
Fair Value Measurement - Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis (Parenthetical) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value Assets And Liabilities Measured On Nonrecurring Basis [Line Items] | ||
Allowance on impaired loans | $1,514 | $1,929 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value Assets And Liabilities Measured On Nonrecurring Basis [Line Items] | ||
Allowance on impaired loans | $1,514 | $1,929 |
Fair_Value_Measurement_RollFor
Fair Value Measurement - Roll-Forward of the Consolidated Condensed Statement of Financial Condition Items (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Other Assets [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value, Beginning balance | $1,489 | $1,489 |
Change in unrealized gains (losses) included in other comprehensive income for assets and liabilities still held at December 31, | 0 | 0 |
Other than temporary impairment charge | 0 | 0 |
Purchases, issuances and settlements, net | 0 | 0 |
Transfers in and/or out of Level 3 | 0 | 0 |
Fair value, Ending balance | 1,489 | 1,489 |
Other Liabilities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Change in unrealized gains (losses) included in other comprehensive income for assets and liabilities still held at December 31, | 0 | 0 |
Other than temporary impairment charge | 0 | 0 |
Purchases, issuances and settlements, net | 0 | 0 |
Transfers in and/or out of Level 3 | $0 | $0 |
Fair_Value_Measurement_Estimat
Fair Value Measurement - Estimated Fair Values of Financial Instruments (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial assets: | ||
Securities available for sale | $303,628 | $318,910 |
Amortized Cost [Member] | ||
Financial assets: | ||
Cash and due from banks | 34,389 | 37,229 |
Interest-earning deposits | 6,050 | 18,619 |
Securities available for sale | 303,628 | 318,910 |
Federal Home Loan Bank stock | 4,428 | 4,428 |
Loans held for sale | 1,444 | |
Loans receivable | 539,264 | 543,632 |
Accrued interest receivable | 4,576 | 5,233 |
Financial liabilities: | ||
Deposits | 731,308 | 762,997 |
Advances from borrowers for taxes and insurance | 513 | 521 |
Advances from Federal Home Loan Bank | 34,000 | 46,780 |
Repurchase agreements | 57,358 | 52,759 |
Subordinated debentures | 10,310 | 10,310 |
Off-balance-sheet liabilities: | ||
Commitments to extend credit | 0 | 0 |
Commercial letters of credit | 0 | 0 |
Market value of interest rate swap | 390 | 750 |
Estimated Fair Value [Member] | ||
Financial assets: | ||
Cash and due from banks | 34,389 | 37,229 |
Interest-earning deposits | 6,050 | 18,619 |
Securities available for sale | 303,628 | 318,910 |
Federal Home Loan Bank stock | 4,428 | 4,428 |
Loans held for sale | 1,444 | |
Loans receivable | 537,493 | 546,319 |
Accrued interest receivable | 4,576 | 5,233 |
Financial liabilities: | ||
Deposits | 714,750 | 763,605 |
Advances from borrowers for taxes and insurance | 513 | 521 |
Advances from Federal Home Loan Bank | 34,217 | 51,010 |
Repurchase agreements | 57,688 | 53,712 |
Subordinated debentures | 10,099 | 10,099 |
Off-balance-sheet liabilities: | ||
Commitments to extend credit | 0 | 0 |
Commercial letters of credit | 0 | 0 |
Market value of interest rate swap | 390 | 750 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Financial assets: | ||
Cash and due from banks | 34,389 | 37,229 |
Interest-earning deposits | 6,050 | 18,619 |
Off-balance-sheet liabilities: | ||
Commitments to extend credit | 0 | 0 |
Commercial letters of credit | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Financial assets: | ||
Securities available for sale | 302,139 | 317,421 |
Federal Home Loan Bank stock | 4,428 | 4,428 |
Loans held for sale | 1,444 | |
Accrued interest receivable | 4,576 | 5,233 |
Financial liabilities: | ||
Deposits | 714,750 | 763,605 |
Advances from borrowers for taxes and insurance | 513 | 521 |
Advances from Federal Home Loan Bank | 34,217 | 51,010 |
Repurchase agreements | 57,688 | 53,712 |
Off-balance-sheet liabilities: | ||
Commitments to extend credit | 0 | 0 |
Commercial letters of credit | 0 | 0 |
Market value of interest rate swap | 390 | 750 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Financial assets: | ||
Securities available for sale | 1,489 | 1,489 |
Loans receivable | 537,493 | 546,319 |
Financial liabilities: | ||
Subordinated debentures | 10,099 | 10,099 |
Off-balance-sheet liabilities: | ||
Commitments to extend credit | 0 | 0 |
Commercial letters of credit | $0 | $0 |
Fair_Value_Measurement_Additio
Fair Value Measurement - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Liabilities | |
Assets | |
Fair Value Disclosures [Abstract] | |
Number of non-financial assets | 0 |
Number of non-financial liabilities | 0 |
Fair_Value_Measurement_Foreclo
Fair Value Measurement - Foreclosed Assets that were Re-measured and Reported at Fair Value (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value Disclosures [Abstract] | |||
Beginning balance | $1,674 | $1,548 | $2,267 |
Carrying value of foreclosed assets prior to acquisition | 1,816 | 1,535 | 2,634 |
Proceeds from sale of foreclosed assets | -1,118 | -908 | -2,738 |
Charge-offs recognized in the allowance for loan loss | -237 | -361 | -349 |
Gains (losses) on REO included in non-interest expense | -208 | -140 | -266 |
Fair value | $1,927 | $1,674 | $1,548 |
Subordinated_Debentures_Additi
Subordinated Debentures - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |||||
Dec. 31, 2014 | Oct. 31, 2008 | Sep. 30, 2003 | Dec. 31, 2014 | Dec. 31, 2003 | Dec. 31, 2013 | Oct. 08, 2008 | |
Debt Disclosure [Abstract] | |||||||
Variable rate capital securities with an aggregate liquidation amount | $10,000,000 | ||||||
Preferred security, Aggregate liquidation amount | 1,000 | ||||||
Floating rate junior subordinated debentures | 10,310,000 | 10,310,000 | 10,310,000 | 10,310,000 | |||
Percentage above LIBOR | 3.10% | 3.10% | |||||
Interest rate to be received under swap agreement, adjusted quarterly | Three-month London Interbank Lending Rate (Libor) plus 3.10% | Three-month LIBOR plus 3.10% | |||||
Interest rate after adjustment | 3.35% | 3.35% | |||||
Junior subordinated debentures maturity | 2033 | ||||||
Junior subordinated debentures and capital securities redemption price | $1,000 |
Concentrations_of_Credit_Risk_
Concentrations of Credit Risk - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Oct. 31, 2008 |
Risks and Uncertainties [Abstract] | ||
FDIC increased its deposit coverage on all accounts | $250,000 | |
Deposit with bank insured amount | 250,000 | |
Total FHLB deposits | 1,000,000 | |
Total deposits at federal reserve | $5,800,000 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 20, 2013 | Dec. 31, 2011 | Oct. 03, 2011 | Sep. 30, 2010 | |
Compensation Related Costs Disclosure [Line Items] | |||||||
Percentage of common stock dividend | 2.00% | 2.00% | |||||
Fully vested options | 20,808 | 20,808 | 31,212 | ||||
Board of Directors granted options to purchase, Shares of common stock | 0 | 0 | 0 | ||||
1999 Stock Option Plan [Member] | |||||||
Compensation Related Costs Disclosure [Line Items] | |||||||
Shares authorized to be granted under option or other stock incentive plans | 403,360 | ||||||
Fully vested options | 20,808 | ||||||
2000 Stock Option Plan [Member] | |||||||
Compensation Related Costs Disclosure [Line Items] | |||||||
Shares authorized to be granted under option or other stock incentive plans | 40,000 | ||||||
Exercise price per share | 10 | ||||||
Board of Directors granted options to purchase, Shares of common stock | 40,000 | ||||||
2004 Long Term Incentive Plan [Member] | |||||||
Compensation Related Costs Disclosure [Line Items] | |||||||
Shares authorized to be granted under option or other stock incentive plans | 200,000 | ||||||
Stock options vesting period | 4 years | ||||||
Shares issued under long-term incentive plan | $0 | ||||||
Compensation expense | 164,000 | 115,000 | 99,000 | ||||
2004 Long Term Incentive Plan [Member] | Restricted Stock [Member] | |||||||
Compensation Related Costs Disclosure [Line Items] | |||||||
Shares authorized to be granted under option or other stock incentive plans | 22,378 | 21,559 | 10,392 | ||||
Restricted stock granted by Compensation Committee, market value | 260,000 | 232,000 | 73,800 | ||||
2013 Long Term Incentive Plan [Member] | |||||||
Compensation Related Costs Disclosure [Line Items] | |||||||
Shares authorized to be granted under option or other stock incentive plans | 300,000 | ||||||
2013 Long Term Incentive Plan [Member] | Minimum [Member] | |||||||
Compensation Related Costs Disclosure [Line Items] | |||||||
Stock options vesting period | 3 years | ||||||
2013 Long Term Incentive Plan [Member] | Maximum [Member] | |||||||
Compensation Related Costs Disclosure [Line Items] | |||||||
Stock options vesting period | 4 years | ||||||
401(k) [Member] | |||||||
Compensation Related Costs Disclosure [Line Items] | |||||||
Employee contributions of earnings in the plan | 15.00% | ||||||
Management matching contribution in the plan | 4.00% | ||||||
Additional compensation without regards to the employee contribution | 4.00% | ||||||
Company contributions, expense | 769,000 | 737,000 | 627,000 | ||||
Company contributions forfeited by employees | 43,000 | 22,000 | 59,000 | ||||
Deferred Compensation Plans [Member] | |||||||
Compensation Related Costs Disclosure [Line Items] | |||||||
Deferred compensation arrangement number of installments related to distributions paid | 15 years | ||||||
Original face value of all deferred compensation contracts | 668,000 | ||||||
Accrued value of all deferred compensation contracts | 292,000 | ||||||
Cash remittances on deferred compensation contracts per year | 12,000 | ||||||
HopFed Bancorp Long Term Incentive Plans [Member] | HopFed [Member] | |||||||
Compensation Related Costs Disclosure [Line Items] | |||||||
Restricted shares available from the HOPFED Bancorp | 256,290 |
Employee_Benefit_Plans_Summary
Employee Benefit Plans - Summary Represents the Activity Under the Stock Option Plans (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Beginning balance, Weighted Average Exercise Price | $16.67 | $16.67 | $15.06 |
Granted, Weighted Average Exercise Price | $0 | $0 | $0 |
Exercised, Weighted Average Exercise Price | $0 | $0 | $0 |
Forfeited, Weighted Average Exercise Price | $16.67 | $11.85 | |
Ending balance, Weighted Average Exercise Price | $16.67 | $16.67 | |
Beginning balance, Number of Shares | 20,808 | 20,808 | 31,212 |
Granted, Number of Shares | 0 | 0 | 0 |
Exercised, Number of Shares | 0 | 0 | 0 |
Forfeited, Number of Shares | -20,808 | -10,404 | |
Ending balance, Number of Shares | 20,808 | 20,808 |
Employee_Benefit_Plans_Compens
Employee Benefit Plans - Compensation Expense to be Recognized (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
2015 | $186 |
2016 | 133 |
2017 | 46 |
2018 | 3 |
Total | $368 |
Income_Taxes_Provision_for_Inc
Income Taxes - Provision for Income Tax Expense (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current | |||||||||||
Federal | ($32) | $210 | |||||||||
State | 30 | 110 | 120 | ||||||||
Current income tax expenses | 30 | 78 | 330 | ||||||||
Deferred | |||||||||||
Federal | -231 | 566 | 487 | ||||||||
State | 0 | 0 | 0 | ||||||||
Deferred income taxes expenses | -231 | 566 | 487 | ||||||||
Total income tax expense | ($852) | $577 | $214 | ($140) | ($50) | $122 | $332 | $240 | ($201) | $644 | $817 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ||
Federal income tax rate | 34.00% | |
Amount of thrift which no longer use reserve method | $500,000,000 | |
Amount of bad debt deductions included retained earnings | 4,027,000 | 4,027,000 |
Valuation allowance for deferred tax assets | $0 | $0 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Federal Income Tax Rate (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||||||||||
Expected federal income tax expense at statutory tax rate | $748 | $1,498 | $1,661 | ||||||||
Effect of nontaxable interest income | -724 | -590 | -575 | ||||||||
Effect of nontaxable bank owned life insurance income | -104 | -120 | -136 | ||||||||
Effect of QSCAB credit | -220 | -220 | -220 | ||||||||
State taxes on income, net of federal benefit | 84 | 73 | 79 | ||||||||
Other tax credits | -80 | -80 | -64 | ||||||||
Non deductible expenses | 95 | 83 | 72 | ||||||||
Total income tax expense | ($852) | $577 | $214 | ($140) | ($50) | $122 | $332 | $240 | ($201) | $644 | $817 |
Effective rate | -10.10% | 14.60% | 16.70% |
Income_Taxes_Components_of_Def
Income Taxes - Components of Deferred Taxes (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Allowance for loan loss | $2,116 | $2,952 |
Accrued expenses | 1,482 | 310 |
Intangible amortization | 981 | 1,184 |
Other | 287 | 275 |
Unrealized loss on items in comprehensive income | 736 | |
Other real estate owned | 95 | 63 |
Deferred tax assets Net | 4,961 | 5,520 |
Deferred tax liabilities: | ||
FHLB stock dividends | -787 | -787 |
Unrealized gain on items in comprehensive income | -1,832 | |
Depreciation and amortization | -81 | -123 |
Deferred tax liabilities, Gross, Total | -2,700 | -910 |
Net deferred tax asset (liability) | $2,261 | $4,610 |
Real_Estate_and_Other_Assets_O2
Real Estate and Other Assets Owned - Company's Balance in Both Real Estate and Other Assets Owned (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total other assets owned | $1,927 | $1,674 |
One-to-Four Family Mortgages [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total other assets owned | 159 | 350 |
Land [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total other assets owned | 1,768 | 1,124 |
Non-Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total other assets owned | $200 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2014 | Oct. 31, 2008 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Commitment and Contingencies [Line Items] | |||||
Amount of fixed rate loan commitments | $0 | $0 | $0 | ||
Initial term of employment agreements | 3 years | ||||
Rental expenses | 66,000 | 54,000 | 61,000 | ||
Variable monthly cost associated with contract, average | 1,200,000 | ||||
Annual cost under branding agreements | 130,000 | ||||
Amount of annual cost per covered individual under first specific stop loss policy limits | 90,000 | ||||
Amount of annual cost per covered individual under second specific stop loss policy limits | 1,783,289 | ||||
Liability related to self insured medical expenses | 170,000 | 170,000 | 393,000 | ||
Duration of interest rate swap agreement | 7 years | ||||
Interest rate swap amount | 10,000,000 | ||||
Fixed rate of interest rate swap agreement to be paid | 7.27% | ||||
Interest rate to be received under swap agreement | Three-month London Interbank Lending Rate (Libor) plus 3.10% | Three-month LIBOR plus 3.10% | |||
Percentage above LIBOR | 3.10% | 3.10% | |||
Cost of termination of cash flow hedge | 390,000 | ||||
Minimum [Member] | |||||
Commitment and Contingencies [Line Items] | |||||
Period of most guarantees | 1 year | ||||
Maximum [Member] | |||||
Commitment and Contingencies [Line Items] | |||||
Period of most guarantees | 2 years | ||||
Commitments to Extend Credit [Member] | |||||
Commitment and Contingencies [Line Items] | |||||
Contractual notional amount of instruments | 45,177,000 | 45,177,000 | 31,103,000 | ||
Unused Lines of Credit [Member] | |||||
Commitment and Contingencies [Line Items] | |||||
Contractual notional amount of instruments | 80,100,000 | 80,100,000 | 74,700,000 | ||
Unused Lines of Credit [Member] | Customer Deposit Accounts [Member] | |||||
Commitment and Contingencies [Line Items] | |||||
Contractual notional amount of instruments | $35,500,000 | $35,500,000 | $20,700,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Future Minimal Lease and Rental Commitments (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2015 | $5,599 |
2016 | 2,268 |
2017 | 2,214 |
2018 | 187 |
2019 | 21 |
Total | $10,289 |
Commitments_and_Contingencies_3
Commitments and Contingencies - Commitments and Conditional Obligations (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Commitments to Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contractual notional amount of instruments | $45,177 | $31,103 |
Standby Letters of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contractual notional amount of instruments | 462 | 322 |
Unused Commercial Lines of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contractual notional amount of instruments | 49,026 | 44,962 |
Unused Home Equity Lines of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contractual notional amount of instruments | $29,843 | $29,733 |
Regulatory_Matters_The_Company
Regulatory Matters - The Company's Consolidated Capital Ratios and the Bank's Actual Capital Amounts and Ratios (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 Leverage capital to adjusted total assets | $104,813 | $107,016 |
Tier 1 Leverage capital to adjusted total assets Required for capital adequacy purposes | 37,252 | 37,819 |
Tier 1 Leverage capital to adjusted total assets, Required to be Categorized as Well Capitalized Under Prompt Corrective Action Provisions, Amount | 46,567 | 47,274 |
Total capital to risk weighted assets, Amount | 111,102 | 114,706 |
Total capital to risk weighted assets, Required for Capital Adequacy Purposes, Amount | 46,576 | 49,138 |
Total capital to risk weighted assets, Required to be categorized as Well Capitalized under Prompt Corrective Action Provisions, Amount | 58,220 | 61,423 |
Tier 1 capital to risk weighted assets, Amount | 104,813 | 107,016 |
Tier 1 capital to risk weighted assets, Required to be Categorized as Well Capitalized Under Prompt Corrective Action Provisions, Amount | 55,878 | 36,854 |
Tier 1 Leverage capital to adjusted total assets | 11.10% | 11.20% |
Tier 1 Leverage capital to adjusted total assets, Required for Capital Adequacy Purposes, Ratio | 4.00% | 4.00% |
Tier 1 Leverage capital to adjusted total assets, Required to be Categorized as Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 5.00% | 5.00% |
Total capital to risk weighted assets, Actual Ratio | 18.00% | 18.60% |
Total capital to risk weighted assets, Required for Capital Adequacy Purposes, Ratio | 8.00% | 8.00% |
Total capital to risk weighted assets, Required to be Categorized as Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% | 10.00% |
Tier 1 capital to risk weighted assets, Actual Ratio | 19.10% | 17.40% |
Tier 1 capital to risk weighted assets, Required to be Categorized as Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.00% | 6.00% |
Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 Leverage capital to adjusted total assets | 102,240 | 101,720 |
Total capital to risk weighted assets, Amount | 108,529 | 109,410 |
Tier 1 capital to risk weighted assets, Amount | $102,240 | $101,720 |
Tier 1 Leverage capital to adjusted total assets | 11.00% | 10.80% |
Total capital to risk weighted assets, Actual Ratio | 17.60% | 17.80% |
Tier 1 capital to risk weighted assets, Actual Ratio | 18.60% | 16.60% |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||||
Dec. 19, 2012 | Dec. 12, 2008 | Nov. 30, 2008 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Aug. 29, 2013 | Jan. 11, 2013 | Oct. 31, 2011 | Oct. 03, 2011 | Oct. 31, 2010 | Sep. 30, 2010 | Oct. 28, 2014 | |
Stockholders Equity [Line Items] | |||||||||||||||
Tier 1 risk-based capital ratio | 19.10% | 17.40% | |||||||||||||
Treasury stock, shares | 778,383 | 479,384 | |||||||||||||
Exercise price of common stock warrants issued under Capital Purchase Program | $11.32 | ||||||||||||||
Number of common stock warrants issued under Capital Purchase Program | 243,816 | ||||||||||||||
Preferred stock dividend | 5.00% | ||||||||||||||
Percentage of common stock dividend | 2.00% | 2.00% | |||||||||||||
Number of common stock warrants outstanding | 253,667 | 248,692 | |||||||||||||
Exercise price of common stock warrants | $10.88 | $11.10 | |||||||||||||
Dividend paid to the Company from its Bank subsidiary | $6,000,000 | ||||||||||||||
Repurchase of warrant from treasury | 256,257 | ||||||||||||||
Dividend record date | 3-Oct-11 | 30-Sep-10 | |||||||||||||
Number of common stock outstanding increased due to common stock dividends | 146,485 | 143,458 | |||||||||||||
Dividend paid, Date | 18-Oct-11 | 18-Oct-10 | |||||||||||||
Value per common stock warrant | $2.28 | ||||||||||||||
Total value of common stock warrant | 555,900 | ||||||||||||||
Accelerated of our warrant accretion | 222,000 | ||||||||||||||
Period of treasury as of interest free rate | 10 years | ||||||||||||||
Total risk-based capital ratio | 18.00% | 18.60% | |||||||||||||
Capital conservation buffer | 2.50% | ||||||||||||||
Basel Three Requirements [Member] | |||||||||||||||
Stockholders Equity [Line Items] | |||||||||||||||
Tier 1 risk-based capital ratio | 6.00% | ||||||||||||||
Common equity Tier 1 capital ratio | 4.50% | ||||||||||||||
Total risk-based capital ratio | 8.00% | ||||||||||||||
Tier 1 leverage ratio | 4.00% | ||||||||||||||
Tier One Capital To Risk [Member] | |||||||||||||||
Stockholders Equity [Line Items] | |||||||||||||||
Tier 1 risk-based capital ratio | 9.00% | ||||||||||||||
Tier One Capital To Risk [Member] | Bank Subsidiary [Member] | |||||||||||||||
Stockholders Equity [Line Items] | |||||||||||||||
Tier 1 risk-based capital ratio | 8.50% | ||||||||||||||
Post Capital Conservation Buffer [Member] | |||||||||||||||
Stockholders Equity [Line Items] | |||||||||||||||
Tier 1 risk-based capital ratio | 8.50% | ||||||||||||||
Common equity Tier 1 capital ratio | 7.00% | ||||||||||||||
Total risk-based capital ratio | 10.50% | ||||||||||||||
Common Stock [Member] | |||||||||||||||
Stockholders Equity [Line Items] | |||||||||||||||
Shares repurchased | 298,999 | 76,468 | |||||||||||||
Treasury stock, shares | 778,383 | ||||||||||||||
Average price of treasury stock | $12.11 | ||||||||||||||
Preferred Stock [Member] | |||||||||||||||
Stockholders Equity [Line Items] | |||||||||||||||
Preferred stock shares issued and sold | 18,400 | 18,400 | |||||||||||||
Value of shares of preferred stock issued and sold | $18,400,000 | ||||||||||||||
Parent [Member] | |||||||||||||||
Stockholders Equity [Line Items] | |||||||||||||||
Expiration period of common stock warrants issued under Capital Purchase Program | 10 years | ||||||||||||||
First specified period for cumulative dividends of preferred stock | 5 years | ||||||||||||||
Preferred stock dividend | 5.00% | ||||||||||||||
Cumulative dividends quarterly thereafter | 9.00% | ||||||||||||||
Commenced In August Two Thousand And Six [Member] | |||||||||||||||
Stockholders Equity [Line Items] | |||||||||||||||
Additional number of shares under repurchase program | 125,000 | ||||||||||||||
Repurchase program expiration date | 30-Sep-08 | ||||||||||||||
Treasury stock, shares reissued | 112,639 | ||||||||||||||
Average price of buyback | $15.36 | ||||||||||||||
Shares repurchased | 106,647 | ||||||||||||||
Commenced In August 2013 [Member] | |||||||||||||||
Stockholders Equity [Line Items] | |||||||||||||||
Additional number of shares under repurchase program | 375,000 | 300,000 | |||||||||||||
Shares repurchased to outstanding percentage | 5.00% |
Stockholders_Equity_Assumption
Stockholders' Equity - Assumptions for Calculating Fair Value of the Common Stock Warrants (Detail) (Common Stock Warrants [Member], USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Common Stock Warrants [Member] | |
Stockholders Equity [Line Items] | |
Risk free rate | 2.60% |
Expected life of warrants | 10 years |
Expected dividend yield | 3.50% |
Expected volatility | 26.50% |
Weighted average fair value | $2.28 |
Earnings_Per_Share_Summary_of_
Earnings Per Share - Summary of Reconciliation of Weighted Average Common Shares (Detail) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Basic earnings per share: | |||||||||||
Weighted average common shares | 7,306,078 | 7,483,606 | 7,486,445 | ||||||||
Adjustment for stock dividend | 0 | 0 | 0 | ||||||||
Weighted average common shares | 7,165,957 | 7,265,597 | 7,376,726 | 7,416,716 | 7,430,970 | 7,483,582 | 7,488,906 | 7,488,445 | 7,306,078 | 7,483,606 | 7,486,445 |
Dilutive effect of stock options | 0 | 0 | 0 | ||||||||
Adjustment for stock dividend | 0 | 0 | 0 | ||||||||
Weighted average common and incremental shares | 7,165,957 | 7,265,597 | 7,376,726 | 7,416,716 | 7,430,970 | 7,483,582 | 7,488,906 | 7,488,445 | 7,306,078 | 7,483,606 | 7,486,445 |
Condensed_Parent_Company_Only_2
Condensed Parent Company Only Financial Statements - Summary of Condensed Balance Sheets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2003 |
Assets: | |||||
Cash and due from banks | $34,389,000 | $37,229,000 | |||
Total assets | 935,785,000 | 973,649,000 | |||
Liabilities and equity Liabilities | |||||
Dividends payable - common | 301,000 | 326,000 | |||
Subordinated debentures | 10,310,000 | 10,310,000 | 10,310,000 | ||
Total liabilities | 837,383,000 | 877,932,000 | |||
Equity: | |||||
Preferred stock | 0 | 0 | |||
Common stock | 79,000 | 79,000 | |||
Additional paid-in capital | 58,466,000 | 58,302,000 | |||
Retained earnings | 45,729,000 | 44,694,000 | |||
Treasury stock | -9,429,000 | -5,929,000 | |||
Accumulated other comprehensive income | 3,557,000 | -1,429,000 | |||
Total equity | 98,402,000 | 95,717,000 | 104,999,000 | 118,483,000 | |
Total liabilities and equity | 935,785,000 | 973,649,000 | |||
Common Stock [Member] | |||||
Equity: | |||||
Total equity | 79,000 | 79,000 | 79,000 | 79,000 | |
HopFed [Member] | |||||
Assets: | |||||
Cash and due from banks | 2,932,000 | 5,199,000 | |||
Investment in subsidiary | 106,088,000 | 100,914,000 | |||
Prepaid expenses and other assets | 534,000 | 1,078,000 | |||
Total assets | 109,554,000 | 107,191,000 | |||
Liabilities and equity Liabilities | |||||
Unrealized loss on derivative | 390,000 | 750,000 | |||
Dividends payable - common | 301,000 | 325,000 | |||
Interest payable | 87,000 | 87,000 | |||
Other liabilities | 64,000 | 2,000 | |||
Subordinated debentures | 10,310,000 | 10,310,000 | |||
Total liabilities | 11,152,000 | 11,474,000 | |||
Equity: | |||||
Preferred stock | 0 | 0 | |||
Common stock | 79,000 | 79,000 | |||
Additional paid-in capital | 58,466,000 | 58,302,000 | |||
Retained earnings | 45,729,000 | 44,694,000 | |||
Accumulated other comprehensive income | 3,557,000 | -1,429,000 | |||
Total equity | 98,402,000 | 95,717,000 | |||
Total liabilities and equity | 109,554,000 | 107,191,000 | |||
HopFed [Member] | Common Stock [Member] | |||||
Equity: | |||||
Treasury stock | ($9,429,000) | ($5,929,000) |
Condensed_Parent_Company_Only_3
Condensed Parent Company Only Financial Statements - Summary of Condensed Statements of Income (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Interest and dividend income: | |||||||||||
Total interest and dividend income | $8,294,000 | $8,994,000 | $8,734,000 | $8,658,000 | $8,763,000 | $8,795,000 | $8,994,000 | $9,305,000 | $34,680,000 | $35,857,000 | $40,840,000 |
Interest expense | 2,001,000 | 2,186,000 | 2,354,000 | 2,338,000 | 2,377,000 | 2,496,000 | 2,794,000 | 2,914,000 | 8,879,000 | 10,581,000 | 14,877,000 |
Non-interest expenses | 11,582,000 | 7,563,000 | 7,447,000 | 7,324,000 | 7,256,000 | 6,984,000 | 7,124,000 | 7,274,000 | 33,916,000 | 28,638,000 | 28,441,000 |
Income (loss) before income tax expense | -1,885,000 | 2,530,000 | 1,139,000 | 214,000 | 1,026,000 | 658,000 | 1,498,000 | 1,224,000 | 1,998,000 | 4,406,000 | 4,886,000 |
Income tax benefits | -852,000 | 577,000 | 214,000 | -140,000 | -50,000 | 122,000 | 332,000 | 240,000 | -201,000 | 644,000 | 817,000 |
Net income | -1,033,000 | 1,953,000 | 925,000 | 354,000 | 1,076,000 | 536,000 | 1,166,000 | 984,000 | |||
Preferred stock dividend and warrant accretion | -1,229,246 | ||||||||||
Net income available for common shareholders | 2,199,000 | 3,762,000 | 2,840,000 | ||||||||
HopFed [Member] | |||||||||||
Interest and dividend income: | |||||||||||
Dividend income from subsidiary bank | 2,600,000 | 5,500,000 | 6,000,000 | ||||||||
Income on agency securities | 56,000 | ||||||||||
Total interest and dividend income | 2,600,000 | 5,500,000 | 6,056,000 | ||||||||
Interest expense | 737,000 | 733,000 | 745,000 | ||||||||
Non-interest expenses | 546,000 | 684,000 | 584,000 | ||||||||
Total expenses | 1,283,000 | 1,417,000 | 1,329,000 | ||||||||
Income (loss) before income tax expense | 1,317,000 | 4,083,000 | 4,727,000 | ||||||||
Income tax benefits | -459,000 | -496,000 | -367,000 | ||||||||
Income (loss) before equity in undistributed earnings of subsidiary | 1,776,000 | 4,579,000 | 5,094,000 | ||||||||
Equity in (distributions in excess of) earnings of subsidiary | 423,000 | -817,000 | -1,025,000 | ||||||||
Net income | 2,199,000 | 3,762,000 | 4,069,000 | ||||||||
Preferred stock dividend and warrant accretion | -1,229,000 | ||||||||||
Net income available for common shareholders | $2,199,000 | $3,762,000 | $2,840,000 |
Condensed_Parent_Company_Only_4
Condensed Parent Company Only Financial Statements - Summary of Condensed Statements of Cash Flows (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Increase (decrease) in: | |||
Net cash (used in) provided by operating activities | $10,136 | $9,315 | $9,339 |
Cash flows for investing activities: | |||
Net cash flow used in investing activities | 19,020 | -4,329 | 58,219 |
Cash flows from financing activities: | |||
Purchase of preferred stock - treasury | -18,400 | ||
Purchase of common stock - treasury | -3,500 | -853 | |
Purchase of common stock warrant | -257 | ||
Dividends paid on preferred stock | -1,007 | ||
Dividends paid on common stock | -1,187 | -751 | -598 |
Net cash provided by (used in) financing activities | -44,565 | 13,686 | -79,142 |
Net increase (decrease) in cash | -15,409 | 18,672 | -11,584 |
Cash and cash equivalents, beginning of period | 55,848 | 37,176 | 48,760 |
Cash and cash equivalents, end of period | 40,439 | 55,848 | 37,176 |
HopFed [Member] | |||
Cash flows from operating activities: | |||
Net income | 2,199 | 3,762 | 4,069 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities | |||
Equity in undistributed earnings of subsidiary | -423 | 817 | 1,025 |
Amortization of restricted stock | 164 | 115 | 99 |
Increase (decrease) in: | |||
Current income taxes payable | 200 | -355 | 74 |
Accrued expenses | 280 | -142 | -1 |
Net cash (used in) provided by operating activities | 2,420 | 4,197 | 5,266 |
Cash flows for investing activities: | |||
Net cash flow used in investing activities | 0 | 0 | 0 |
Cash flows from financing activities: | |||
Purchase of preferred stock - treasury | -18,400 | ||
Purchase of common stock - treasury | -3,500 | -853 | |
Purchase of common stock warrant | -257 | ||
Dividends paid on preferred stock | -1,007 | ||
Dividends paid on common stock | -1,187 | -751 | -598 |
Net cash provided by (used in) financing activities | -4,687 | -1,861 | -20,005 |
Net increase (decrease) in cash | -2,267 | 2,336 | -14,739 |
Cash and cash equivalents, beginning of period | 5,199 | 2,863 | 17,602 |
Cash and cash equivalents, end of period | $2,932 | $5,199 | $2,863 |
Investments_in_Affiliated_Comp2
Investments in Affiliated Companies - Additional Information (Detail) (Subsidiaries [Member]) | Dec. 31, 2014 |
Subsidiaries [Member] | |
Percent of common stock of HopFed Bancorp, Inc. | 100.00% |
Investments_in_Affiliated_Comp3
Investments in Affiliated Companies - Summary Balance Sheets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Asset - investment in subordinated debentures issued by HopFed Bancorp, Inc. | $10,310 | $10,310 |
Liabilities | 0 | 0 |
Stockholders' equity: | ||
Total stockholder's equity | 10,310 | 10,310 |
Total liabilities and stockholders' equity | 10,310 | 10,310 |
Trust Preferred Securities [Member] | ||
Stockholders' equity: | ||
Total stockholder's equity | 10,000 | 10,000 |
Common Stock [Member] | ||
Stockholders' equity: | ||
Total stockholder's equity | $310 | $310 |
Investments_in_Affiliated_Comp4
Investments in Affiliated Companies - Summary Balance Sheets (Parenthetical) (Detail) (Common Stock [Member]) | Dec. 31, 2014 | Dec. 31, 2013 |
Common Stock [Member] | ||
Percentage of common stock owned by HopFed Bancorp, Inc. | 100.00% | 100.00% |
Investments_in_Affiliated_Comp5
Investments in Affiliated Companies - Summary Statements of Income (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Equity Method Investments [Line Items] | |||||||||||
Income - interest income from subordinated debentures issued by HopFed Bancorp, Inc. | $8,294 | $8,994 | $8,734 | $8,658 | $8,763 | $8,795 | $8,994 | $9,305 | $34,680 | $35,857 | $40,840 |
Majority-Owned Subsidiary, Unconsolidated [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Income - interest income from subordinated debentures issued by HopFed Bancorp, Inc. | 348 | 353 | |||||||||
Net income | $348 | $353 |
Investments_in_Affiliated_Comp6
Investments in Affiliated Companies - Summary Statements of Stockholder's Equity (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 |
Dividends: | |||
Trust preferred securities | ($1,007) | ||
Total retained earnings | 45,729 | 44,694 | |
Majority-Owned Subsidiary, Unconsolidated [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Beginning balance | 10,310 | ||
Retained earnings: | |||
Net income | 348 | 353 | |
Dividends: | |||
Trust preferred securities | -337 | ||
Common dividends paid to HopFed Bancorp, Inc. | -11 | ||
Total retained earnings | 0 | ||
Ending balance | 10,310 | ||
Majority-Owned Subsidiary, Unconsolidated [Member] | Trust Preferred Securities [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Beginning balance | 10,000 | ||
Dividends: | |||
Total retained earnings | 0 | ||
Ending balance | 10,000 | ||
Majority-Owned Subsidiary, Unconsolidated [Member] | Common Stock [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Beginning balance | 310 | ||
Dividends: | |||
Total retained earnings | 0 | ||
Ending balance | 310 | ||
Majority-Owned Subsidiary, Unconsolidated [Member] | Retained Earnings [Member] | |||
Retained earnings: | |||
Net income | 348 | ||
Dividends: | |||
Trust preferred securities | -337 | ||
Common dividends paid to HopFed Bancorp, Inc. | -11 | ||
Total retained earnings | $0 |
Quarterly_Results_of_Operation2
Quarterly Results of Operations - Summarized Unaudited Quarterly Operating Results (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest and dividend income | $8,294 | $8,994 | $8,734 | $8,658 | $8,763 | $8,795 | $8,994 | $9,305 | $34,680 | $35,857 | $40,840 |
Interest expense | 2,001 | 2,186 | 2,354 | 2,338 | 2,377 | 2,496 | 2,794 | 2,914 | 8,879 | 10,581 | 14,877 |
Net interest income | 6,293 | 6,808 | 6,380 | 6,320 | 6,386 | 6,299 | 6,200 | 6,391 | 25,801 | 25,276 | 25,963 |
Provision for loan losses | -1,500 | -892 | -261 | 380 | 396 | 426 | 406 | 376 | -2,273 | 1,604 | 2,275 |
Net interest income after provision for loan losses | 7,793 | 7,700 | 6,641 | 5,940 | 5,990 | 5,873 | 5,794 | 6,015 | 28,074 | 23,672 | 23,688 |
Noninterest income | 1,904 | 2,393 | 1,945 | 1,598 | 2,292 | 1,769 | 2,828 | 2,483 | 7,840 | 9,372 | 9,639 |
Noninterest expense | 11,582 | 7,563 | 7,447 | 7,324 | 7,256 | 6,984 | 7,124 | 7,274 | 33,916 | 28,638 | 28,441 |
Income (loss) before income tax expense | -1,885 | 2,530 | 1,139 | 214 | 1,026 | 658 | 1,498 | 1,224 | 1,998 | 4,406 | 4,886 |
Income tax expense (benefit) | -852 | 577 | 214 | -140 | -50 | 122 | 332 | 240 | -201 | 644 | 817 |
Net income | ($1,033) | $1,953 | $925 | $354 | $1,076 | $536 | $1,166 | $984 | |||
Basic earnings (loss) per share | ($0.14) | $0.27 | $0.13 | $0.05 | $0.14 | $0.07 | $0.16 | $0.13 | $0.30 | $0.50 | $0.38 |
Diluted earnings (loss) per share | ($0.14) | $0.27 | $0.13 | $0.05 | $0.14 | $0.07 | $0.16 | $0.13 | $0.30 | $0.50 | $0.38 |
Weighted average shares outstanding: | |||||||||||
Basic | 7,165,957 | 7,265,597 | 7,376,726 | 7,416,716 | 7,430,970 | 7,483,582 | 7,488,906 | 7,488,445 | 7,306,078 | 7,483,606 | 7,486,445 |
Diluted | 7,165,957 | 7,265,597 | 7,376,726 | 7,416,716 | 7,430,970 | 7,483,582 | 7,488,906 | 7,488,445 | 7,306,078 | 7,483,606 | 7,486,445 |
Comprehensive_Income_Other_Com
Comprehensive Income - Other Comprehensive (Loss) Income Included in Stockholders' Equity (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Unrealized holding gains (losses) on: | |||
Available for sale securities, Pre-Tax | $7,773 | ($16,012) | $5,071 |
Derivatives, Pre-Tax | 359 | 376 | 171 |
Reclassification adjustments for gains on available for sale securities, Pre-Tax | -578 | -1,661 | -1,671 |
Other than temporary impairment, Pre-Tax | 400 | ||
Other comprehensive income, Pre-Tax | 7,554 | -16,897 | 3,571 |
Available for sale securities, tax benefit (expense) | -2,643 | 5,444 | -1,723 |
Derivatives, tax benefit (expense) | -122 | -128 | -58 |
Reclassification adjustments for gains on available for sale securities, tax benefit (expense) | 197 | 565 | 567 |
Other than temporary impairment, benefit (expense) | -136 | ||
Other comprehensive income, tax benefit (expense) | -2,568 | 5,745 | -1,214 |
Available for sale securities, net of tax | 5,130 | -10,568 | 3,348 |
Derivatives, net of tax | 237 | 248 | 113 |
Reclassification adjustments for gains on available for sale securities, net of tax | -381 | -1,096 | -1,104 |
Other than temporary impairment, net of tax | 264 | ||
Other comprehensive income, net of tax | $4,986 | ($11,152) | $2,357 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 16, 2015 | Feb. 02, 2015 | Mar. 02, 2015 | Jan. 20, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Dividends paid | $301,000 | $326,000 | |||||
Dividends paid | 301,000 | 325,000 | 180,000 | ||||
Employee stock ownership plan employee minimum service period | 1 year | ||||||
Employee stock ownership plan, description | 2015 Employee Stock Ownership Plan (the bESOPb) which covers substantially all employees who are at least 21 years old with at least one year of employment with the Corporation and Heritage Bank USA, Inc. (the bBankb), the Companybs commercial bank subsidiary. Employer contributions to the ESOP are expected to replace matching and profit sharing contributions to the Heritage Bank 401(k) Plan sponsored by the Bank. The ESOP has three individuals who have been selected by the Company to serve as trustees. A directed corporate trustee has also been appointed. The ESOP will be administered by a committee (the bCommitteeb) composed of three or more individuals selected by the Company or its designee. Until the Committee is appointed, the trustees will carry out the duties and responsibilities of the Committee. | ||||||
Scenario, Forecast [Member] | Wilmington Trust Na [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Proceeds from interest received | 871,000 | ||||||
ESOP [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
ESOP ownership percentage | 9.90% | ||||||
Shares to be acquired under ESOP | 1,000,000 | ||||||
Subsequent Event [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Dividends paid | 16,000,000 | ||||||
Dividends paid | 8,300,000 | ||||||
Subsequent Event [Member] | Minimum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Purchases of treasury stock | 80,000 | ||||||
Subsequent Event [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Purchases of treasury stock | 534,943 | ||||||
Subsequent Event [Member] | ESOP [Member] | Employee Stock Option Plan Loan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Employee stock option plan, loan amount | 13,500,000 | ||||||
Purchase of common stock | 1,000,000 | ||||||
Shares purchased from the corporation | 600,000 | ||||||
Cost of shares purchased from the corporation | $7,884,000 | ||||||
Loan repayment date | 31-Dec-40 | ||||||
Interest rate on ESOP loan | 3.00% |