Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 31, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'COMMUNITY WEST BANCSHARES / | ' |
Entity Central Index Key | '0001051343 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 7,866,783 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
CONSOLIDATED_BALANCE_SHEETS_un
CONSOLIDATED BALANCE SHEETS (unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Cash and due from banks | $42,546 | $27,866 |
Federal funds sold | 24 | 25 |
Cash and cash equivalents | 42,570 | 27,891 |
Interest-bearing deposits in other financial institutions | 3,282 | 3,653 |
Investment securities - available-for-sale, at fair value; amortized cost of $15,813 at September 30, 2013 and $11,944 at December 31, 2012 | 15,436 | 12,004 |
Investment securities - held-to-maturity, at amortized cost; fair value of $10,600 at September 30, 2013 and $12,765 at December 31, 2012 | 10,149 | 12,036 |
Federal Home Loan Bank stock, at cost | 2,281 | 3,283 |
Federal Reserve Bank stock, at cost | 1,373 | 1,373 |
Loans: | ' | ' |
Held for sale, at lower of cost or fair value | 64,187 | 68,694 |
Held for investment, net of allowance for loan losses of $11,654 at September 30, 2013 and $14,464 at December 31, 2012 | 375,258 | 380,507 |
Total loans | 439,445 | 449,201 |
Other assets acquired through foreclosure, net | 3,975 | 1,889 |
Premises and equipment, net | 2,985 | 3,068 |
Other assets | 13,985 | 17,703 |
Total assets | 535,481 | 532,101 |
Deposits: | ' | ' |
Non-interest-bearing demand | 55,462 | 53,605 |
Interest-bearing demand | 253,978 | 269,466 |
Savings | 16,176 | 16,351 |
Certificates of deposit | 105,475 | 94,798 |
Total deposits | 431,091 | 434,220 |
Other borrowings | 34,000 | 34,000 |
Convertible debentures | 1,442 | 7,852 |
Other liabilities | 4,300 | 2,980 |
Total liabilities | 470,833 | 479,052 |
Stockholders' equity: | ' | ' |
Preferred stock - no par value, 10,000,000 shares authorized, 15,600 shares issued and outstanding at September 30, 2013 and December 31, 2012 | 15,542 | 15,341 |
Common stock - no par value, 20,000,000 shares authorized, 7,865,558 shares issued and outstanding at September 30, 2013 and 5,994,510 at December 31, 2012 | 40,146 | 33,555 |
Retained earnings | 9,182 | 4,118 |
Accumulated other comprehensive (loss) income, net | -222 | 35 |
Total stockholders' equity | 64,648 | 53,049 |
Total liabilities and stockholders' equity | $535,481 | $532,101 |
CONSOLIDATED_BALANCE_SHEETS_un1
CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Assets: | ' | ' |
Investment securities available-for-sale, amortized cost | $15,813 | $11,944 |
Investment securities held-to-maturity, fair value | 10,600 | 12,765 |
Loans: | ' | ' |
Loans held for investment, allowance for loan losses | $11,654 | $14,464 |
Stockholders' equity: | ' | ' |
Preferred stock, par value (in dollars per share) | $0 | $0 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 15,600 | 15,600 |
Preferred stock, shares outstanding (in shares) | 15,600 | 15,600 |
Common stock, par value (in dollars per share) | $0 | $0 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 7,865,558 | 5,994,510 |
Common stock, shares outstanding (in shares) | 7,865,558 | 5,994,510 |
CONSOLIDATED_INCOME_STATEMENTS
CONSOLIDATED INCOME STATEMENTS (unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Interest income: | ' | ' | ' | ' |
Loans, including fees | $6,871 | $7,324 | $20,515 | $23,236 |
Investment securities and other | 187 | 188 | 532 | 631 |
Total interest income | 7,058 | 7,512 | 21,047 | 23,867 |
Interest expense: | ' | ' | ' | ' |
Deposits | 719 | 970 | 2,238 | 3,287 |
Other borrowings and convertible debt | 328 | 433 | 1,136 | 1,386 |
Total interest expense | 1,047 | 1,403 | 3,374 | 4,673 |
Net interest income | 6,011 | 6,109 | 17,673 | 19,194 |
Provision for (recovery of) credit losses | -1,563 | 1,293 | -2,843 | 5,176 |
Net interest income after provision for credit losses | 7,574 | 4,816 | 20,516 | 14,018 |
Non-interest income: | ' | ' | ' | ' |
Other loan fees | 229 | 302 | 844 | 847 |
Gains from loan sales, net | 62 | 366 | 334 | 1,521 |
Document processing fees | 114 | 109 | 369 | 283 |
Service Charges | 75 | 98 | 245 | 327 |
Loan servicing, net | 70 | 105 | 169 | 180 |
Other | 134 | 77 | 292 | 300 |
Total non-interest income | 684 | 1,057 | 2,253 | 3,458 |
Non-interest expense: | ' | ' | ' | ' |
Salaries and employee benefits | 3,114 | 2,899 | 9,999 | 8,526 |
Occupancy expense, net | 452 | 451 | 1,365 | 1,365 |
Loan servicing and collection | 511 | 366 | 1,111 | 1,257 |
Professional services | 308 | 372 | 913 | 993 |
FDIC assessment | 283 | 311 | 809 | 1,046 |
Advertising and marketing | 94 | 59 | 374 | 218 |
Depreciation | 78 | 78 | 226 | 231 |
Net loss on sales/write-downs of foreclosed real estate and repossessed assets | 168 | 189 | 274 | 969 |
Data processing | 128 | 127 | 403 | 407 |
Other | 487 | 408 | 1,445 | 1,623 |
Total non-interest expense | 5,623 | 5,260 | 16,919 | 16,635 |
Income before provision for income taxes | 2,635 | 613 | 5,850 | 841 |
Income taxes | 0 | 0 | 0 | 0 |
Net income | 2,635 | 613 | 5,850 | 841 |
Dividends and accretion on preferred stock | 262 | 253 | 786 | 785 |
Net income available to common shareholders | $2,373 | $360 | $5,064 | $56 |
Earnings per share: | ' | ' | ' | ' |
Basic (in dollars per share) | $0.30 | $0.06 | $0.75 | $0.01 |
Diluted (in dollars per share) | $0.29 | $0.06 | $0.60 | $0.01 |
Weighted average number of common shares outstanding: | ' | ' | ' | ' |
Basic (in shares) | 7,865 | 5,990 | 6,731 | 5,990 |
Diluted (in shares) | 8,395 | 8,233 | 8,883 | 8,233 |
Dividends declared per common share (in dollars per share) | $0 | $0 | $0 | $0 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) [Abstract] | ' | ' | ' | ' |
Net income | $2,635 | $613 | $5,850 | $841 |
Other comprehensive income, net: | ' | ' | ' | ' |
Unrealized (loss) gain on securities available-for-sale (AFS), net (tax effect of $83, $(5), $180, $(2) for each respective period presented) | -119 | 7 | -257 | 2 |
Realized gain on sale of securities AFS included in income, net (tax effect of $22) | 0 | 0 | 0 | -99 |
Net other comprehensive (loss) income | -119 | 7 | -257 | -97 |
Comprehensive income | $2,516 | $620 | $5,593 | $744 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Other comprehensive income, net: | ' | ' | ' | ' |
Tax effect, unrealized holding gain (loss) on securities-available-for-sale | $83 | ($5) | $180 | ($2) |
Tax effect, realized gain on sale of securities AFS | $0 | $0 | $0 | $22 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (unaudited) (USD $) | Preferred Stock [Member] | Common Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Total |
In Thousands, except Share data, unless otherwise specified | |||||
Beginning balance at Dec. 31, 2012 | $15,341 | $33,555 | $35 | $4,118 | $53,049 |
Balance (in shares) at Dec. 31, 2012 | 16,000 | 5,995,000 | ' | ' | 5,994,510 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Net income | ' | ' | ' | 5,850 | 5,850 |
Exercise of stock options | ' | 21 | ' | ' | 21 |
Exercise of stock options (in shares) | ' | 6,000 | ' | ' | ' |
Conversion of debentures | ' | 6,527 | ' | ' | 6,527 |
Conversion of debentures (in shares) | ' | 1,865,000 | ' | ' | ' |
Stock option expense | ' | 43 | ' | ' | 43 |
Dividends on preferred stock | ' | ' | ' | -585 | -585 |
Accretion on preferred stock | 201 | ' | ' | -201 | 0 |
Other comprehensive loss, net | ' | ' | -257 | ' | -257 |
Ending balance at Sep. 30, 2013 | $15,542 | $40,146 | ($222) | $9,182 | $64,648 |
Balance (in shares) at Sep. 30, 2013 | 16,000 | 7,866,000 | ' | ' | 7,865,558 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net income | $5,850 | $841 |
Adjustments to reconcile net income to cash provided by operating activities: | ' | ' |
Provision for loan losses | -2,843 | 5,176 |
Depreciation | 226 | 231 |
Stock-based compensation | 43 | 27 |
Deferred income taxes | 0 | 354 |
Net amortization of discounts and premiums for investment securities | 0 | -21 |
(Gains)/Losses on: | ' | ' |
Sales of securities, AFS | 0 | -121 |
Sale of repossessed assets, net | 360 | 1,076 |
Sale of loans, net | -334 | -1,521 |
Loans originated for sale and principal collections, net | 4,841 | -2,379 |
Changes in: | ' | ' |
Other assets | 4,121 | -630 |
Other liabilities | 852 | 1,071 |
Servicing rights, net | 133 | -121 |
Net cash provided by operating activities | 13,249 | 3,983 |
Cash flows from investing activities: | ' | ' |
Proceeds from held for investment loan sales | 5,101 | 0 |
Proceeds from sale of available-for-sale securities | 0 | 4,137 |
Principal pay downs and maturities of available-for-sale securities | 4,181 | 7,446 |
Purchase of available-for-sale securities | -8,033 | 0 |
Proceeds from principal pay downs and maturities of securities held-to-maturity | 1,870 | 2,493 |
Loan originations and principal collections, net | -2,762 | 65,185 |
Liquidation of restricted stock | 1,002 | 596 |
Net increase (decrease) in interest bearing deposits in other financial institutions | 371 | -3,543 |
Purchase of premises and equipment, net | -143 | -253 |
Proceeds from sale of other real estate owned and repossessed assets, net | 2,951 | 8,181 |
Net cash provided by investing activities | 4,538 | 84,242 |
Cash flows from financing activities: | ' | ' |
Net decrease in deposits | -3,129 | -51,296 |
Net decrease in borrowings | 0 | -27,000 |
Exercise of stock options | 21 | 0 |
Cash dividends paid on preferred stock | 0 | -195 |
Net cash used in financing activities | -3,108 | -78,491 |
Net increase in cash and cash equivalents | 14,679 | 9,734 |
Cash and cash equivalents at beginning of year | 27,891 | 22,572 |
Cash and cash equivalents at end of period | 42,570 | 32,306 |
Cash paid during the period for: | ' | ' |
Interest | 3,399 | 4,631 |
Income taxes | 462 | 712 |
Non-cash investing and financing activity: | ' | ' |
Transfers to other assets acquired through foreclosure, net | 5,753 | 6,317 |
Preferred stock dividends declared, not paid | 585 | 388 |
Conversion of debentures | $6,410 | $0 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended | ||
Sep. 30, 2013 | |||
SUMMARY OF SIGNIFICANT OF ACCOUNTING POLICIES [Abstract] | ' | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||
1 | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Nature of operations | |||
Community West Bancshares (“CWBC”), incorporated under the laws of the state of California, is a bank holding company providing full service banking through its wholly-owned subsidiary Community West Bank, N.A. (“CWB” or the “Bank”). These entities are collectively referred to herein as the “Company”. | |||
Basis of presentation | |||
The accounting and reporting policies of the Company are in accordance with accounting principles generally accepted in the United States (“GAAP”) and conform to practices within the financial services industry. The accounts of the Company and its consolidated subsidiary are included in these Consolidated Financial Statements. All significant intercompany balances and transactions have been eliminated. | |||
Use of estimates | |||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for credit losses and fair value of other real estate owned. Although Management believes these estimates to be reasonably accurate, actual amounts may differ. In the opinion of Management, all adjustments considered necessary have been reflected in the financial statements during their preparation. | |||
Interim financial information | |||
The accompanying unaudited consolidated financial statements as of September 30, 2013 and 2012 have been prepared in a condensed format, and therefore do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. These statements have been prepared on a basis that is substantially consistent with the accounting principles applied to our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2012. | |||
The information furnished in these interim statements reflects all adjustments which are, in the opinion of management, necessary for a fair statement of the results for each respective period presented. Such adjustments are of a normal recurring nature. The results of operations in the interim statements are not necessarily indicative of the results that may be expected for any other quarter or for the full year. The interim financial information should be read in conjunction with the Company’s audited consolidated financial statements. | |||
Reclassifications | |||
Certain amounts in the consolidated financial statements as of December 31, 2012 and for the three and nine months ended September 30, 2012 have been reclassified to conform to the current presentation. The reclassifications have no effect on net income or stockholders’ equity as previously reported. | |||
Loans Held for Investment | |||
Loans are recognized at the principal amount outstanding, net of unearned income, loan participations and amounts charged off. Unearned income includes deferred loan origination fees reduced by loan origination costs. Unearned income on loans is amortized to interest income over the life of the related loan using the level yield method. | |||
Provision and Allowance for Loan Losses | |||
The Company maintains a detailed, systematic analysis and procedural discipline to determine the amount of the allowance for loan losses (“ALL”). The ALL is based on estimates and is intended to be appropriate to provide for probable losses inherent in the loan portfolio. This process involves deriving probable loss estimates that are based on migration analysis and historical loss rates, in addition to qualitative factors that are based on management’s judgment. The migration analysis and historical loss rate calculations are based on the annualized loss rates utilizing a twelve-quarter loss history. Migration analysis is utilized for the Commercial Real Estate (“CRE”), Commercial, Commercial Agriculture, Small Business Association (“SBA”), Home Equity Line of Credit (“HELOC”), Single Family Residential, and Consumer portfolios. The historical loss rate method is utilized primarily for the Manufactured Housing portfolio. The migration analysis takes into account the risk rating of loans that are charged off in each loan category. Loans that are considered Doubtful are typically charged off. The following is a description of the characteristics of loan ratings. Loan ratings are reviewed as part of our normal loan monitoring process, but, at a minimum, updated on an annual basis. | |||
Outstanding – This is the highest quality rating that is assigned to any loan in the portfolio. These loans are made to the highest quality borrowers with strong financial statements and unquestionable repayment sources. Collateral securing these types of credits are generally cash deposits in the bank or marketable securities held in custody. | |||
Good – Loans rated in this category are strong loans, underwritten well, that bear little risk of loss to the Company. Loans in this category are loans to quality borrowers with very good financial statements that present an identifiable strong primary source and good secondary source of repayment. Generally, these credits are well collateralized by good quality and liquid assets or low loan to value market real estate. | |||
Pass - Loans rated in this category are acceptable loans, appropriately underwritten, bearing an ordinary risk of loss to the Company. Loans in this category are loans to quality borrowers with financial statements presenting a good primary source as well as an adequate secondary source of repayment. In the case of individuals, borrowers with this rating are quality borrowers demonstrating a reasonable level of secure income, a net worth adequate to support the loan and presenting a good primary source as well as an adequate secondary source of repayment. | |||
Watch – Acceptable credit that requires a temporary increase in attention by management. This can be caused by declines in sales, margins, liquidity or working capital. Generally the primary weakness is lack of current financial statements and industry issues. | |||
Special Mention - A Special Mention loan has potential weaknesses that require management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution's credit position at some future date. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. | |||
Substandard - A Substandard loan is inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. These loans have a well-defined weakness or weaknesses that jeopardize full collection of amounts due. They are characterized by the distinct possibility that the Company will sustain some loss if the borrower’s deficiencies are not corrected. | |||
Doubtful - A loan classified Doubtful has all the weaknesses inherent in one classified Substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors, which may work to the advantage and strengthening of the loan, its classification as an estimated loss 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. | |||
Loss - Loans classified Loss are considered uncollectible and of such little value that their continuance as bankable loans is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this loan even though partial recovery may be realized in the future. Losses are taken in the period in which they are considered uncollectible. | |||
The Company’s ALL is maintained at a level believed appropriate by management to absorb known and inherent probable losses on existing loans. The allowance is charged for losses when management believes that full recovery on the loan is unlikely. The following is the Company’s policy regarding charging off loans. | |||
Commercial, CRE and SBA Loans | |||
Charge-offs on these loan categories are taken as soon as all or a portion of any loan balance is deemed to be uncollectible. A loan is considered impaired when, based on current information, it is probable that the Company will be unable to collect the scheduled payments of principal and/or interest under the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and/or interest payments. Loans that experience insignificant payment delays or payment shortfalls generally are not classified as impaired Generally, loan balances are charged-down to the fair value of the collateral, if, based on a current assessment of the value, an apparent deficiency exists. In the event there is no perceived equity, the loan is charged-off in full. Unsecured loans which are delinquent over 90 days are also charged-off in full. | |||
Single Family Real Estate, HELOC’s and Manufactured Housing Loans | |||
Consumer loans and residential mortgages secured by one-to-four family residential properties, HELOC and manufactured housing loans in which principal or interest is due and unpaid for 90 days, are evaluated for possible charge-off. Loan balances are charged-off to the fair value of the property, less estimated selling costs, if, based on a current appraisal, an apparent deficiency exists. In the event there is no perceived equity, the loan is generally fully charged-off. Other consumer loans which are not secured and unpaid over 90-120 days are charged-off in full. | |||
Consumer Loans | |||
All consumer loans (excluding real estate mortgages, home equity loans and savings secured loans) are charged-off or charged-down to net recoverable value before becoming 120 days or five payments delinquent. | |||
The ALL calculation for the different loan portfolios is as follows: | |||
· | Commercial Real Estate, Commercial, Commercial Agriculture, SBA, HELOC, Single Family Residential, and Consumer – Migration analysis combined with risk rating is used to determine the required allowance for all non-impaired loans. In addition, the migration results are adjusted based upon qualitative factors that affect this specific portfolio category. Reserves on impaired loans are determined based upon the individual characteristics of the loan. | ||
· | Manufactured Housing – The allowance is calculated on the basis of loss history and risk rating, which is primarily a function of delinquency. In addition, the loss results are adjusted based upon qualitative factors that affect this specific portfolio. | ||
The Company evaluates and individually assesses for impairment loans generally greater than $500,000, classified as substandard or doubtful in addition to loans either on nonaccrual, considered a troubled debt restructuring (“TDR”) or when other conditions exist which lead management to review for possible impairment. Measurement of impairment on impaired loans is determined on a loan-by-loan basis and in total establishes a specific reserve for impaired loans. The amount of impairment is determined by comparing the recorded investment in each loan with its value measured by one of three methods: | |||
· | The expected future cash flows are estimated and then discounted at the effective interest rate. | ||
· | The value of the underlying collateral net of selling costs. Selling costs are estimated based on industry standards, the Company’s actual experience or actual costs incurred as appropriate. When evaluating real estate collateral, the Company typically uses appraisals or valuations, no more than twelve months old at time of evaluation. When evaluating non-real estate collateral securing the loan, the Company will use audited financial statements or appraisals no more than twelve months old at time of evaluation. Additionally for both real estate and non-real estate collateral, the Company may use other sources to determine value as deemed appropriate. | ||
· | The loan’s observable market price. | ||
Interest income is not recognized on impaired loans except for limited circumstances in which a loan, although impaired, continues to perform in accordance with the loan contract and the borrower provides financial information to support maintaining the loan on accrual. | |||
The Company determines the appropriate ALL on a monthly basis. Any differences between estimated and actual observed losses from the prior month are reflected in the current period in determining the appropriate ALL determination and adjusted as deemed necessary. The review of the appropriateness of the allowance takes into consideration such factors as concentrations of credit, changes in the growth, size and composition of the loan portfolio, overall and individual portfolio quality, review of specific problem loans, collateral, guarantees and economic and environmental conditions that may affect the borrowers' ability to pay and/or the value of the underlying collateral. Additional factors considered include: geographic location of borrowers, changes in the Company’s product-specific credit policy and lending staff experience. These estimates depend on the outcome of future events and, therefore, contain inherent uncertainties. | |||
Another component of the ALL considers qualitative factors related to non-impaired loans. The qualitative portion of the allowance on each of the loan pools is based on the following factors: | |||
· | Concentrations of credit | ||
· | International risk | ||
· | Trends in volume, maturity, and composition | ||
· | Volume and trend in delinquency | ||
· | Economic conditions | ||
· | Outside exams | ||
· | Geographic distance | ||
· | Policy and changes | ||
· | Staff experience and ability | ||
Foreclosed Real Estate and Repossessed Assets | |||
Foreclosed real estate and other repossessed assets are recorded at fair value at the time of foreclosure less estimated costs to sell. Any excess of loan balance over the fair value less estimated costs to sell of the other assets is charged-off against the allowance for loan losses. Any excess of the fair value less estimated costs to sell over the loan balance is recorded as a loan loss recovery to the extent of the loan loss previously charged-off against the allowance for loan losses; and, if greater, recorded as a gain on foreclosed assets. Subsequent to the legal ownership date, management periodically performs a new valuation and the asset is carried at the lower of carrying amount or fair value less estimated costs to sell. Operating expenses or income, and gains or losses on disposition of such properties, are recorded in current operations. | |||
Income Taxes | |||
The Company uses the asset and liability method, which recognizes an asset or liability representing the tax effects of future deductible or taxable amounts that have been recognized in the consolidated financial statements. Due to tax regulations, certain items of income and expense are recognized in different periods for tax return purposes than for financial statement reporting. These items represent “temporary differences.” Deferred income taxes are recognized for the tax effect of temporary differences between the tax basis of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. A valuation allowance is established for deferred tax assets if, based on weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets may not be realized. | |||
Management evaluates the Company’s deferred tax asset for recoverability using a consistent approach which considers the relative impact of negative and positive evidence, including the Company’s historical profitability and projections of future taxable income. The Company is required to establish a valuation allowance for deferred tax asset and record a charge to income if Management determines, based on available evidence at the time the determination is made, that it is more likely than not that some portion or all of the deferred tax asset may not be realized. | |||
Net income represents positive evidence for the reduction of the deferred tax valuation allowance. The Company had net income of $5.9 million for the nine months ended September 30, 2013. The Company expects to be in a Federal tax expense position for 2013. A corresponding release of the valuation allowance equal to the current year tax expense of $1.4 million has been reflected at September 30, 2013. | |||
The Company is subject to the provisions of ASC 740, Income Taxes (ASC 740). ASC 740 prescribes a more-likely-than-not threshold for the financial statement recognition of uncertain tax positions. ASC 740 clarifies the accounting for income taxes by prescribing a minimum recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. On a quarterly basis, the Company evaluates income tax accruals in accordance with ASC 740 guidance on uncertain tax positions. | |||
Earnings Per Share | |||
Basic earnings per common share is computed using the weighted average number of common shares outstanding for the period divided into the net income (loss) available to common shareholders. Diluted earnings per share include the effect of all dilutive potential common shares for the period. Potentially dilutive common shares include stock options, warrants and shares that could result from the conversion of debenture bonds. | |||
Recent Accounting Pronouncements | |||
In February 2013, the FASB issued guidance within ASU 2013-02 “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” The amendments in ASU 2013-02 to Topic 220, Comprehensive Income, update, supersede and replace the presentation requirements for reclassifications out of accumulated other comprehensive income in ASUs 2011-05 and 2011-12. The amendments require an entity to provide additional information about reclassifications out of accumulated other comprehensive income. The amendments are effective prospectively for reporting periods beginning after December 15, 2012. The adoption of ASU No. 2013-02 resulted in presentation changes to the Company’s consolidated income statements. The adoption of ASU No. 2013-02 had no impact on the Company’s balance sheets. | |||
In July 2013, the FASB issued guidance within ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” The amendments in ASU 2013-11 to Topic 740, Income Taxes, updates the presentation of an unrecognized tax benefit in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. However, to the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. ASU 2013-11 is effective for the Company on January 1, 2014 and is not to be applied prospectively, although early adoption and retrospective adoption are permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. | |||
INVESTMENT_SECURITIES
INVESTMENT SECURITIES | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||||||||||
INVESTMENT SECURITIES [Abstract] | ' | ||||||||||||||||||||||||||||||||||||||||
INVESTMENT SECURITIES | ' | ||||||||||||||||||||||||||||||||||||||||
2 | INVESTMENT SECURITIES | ||||||||||||||||||||||||||||||||||||||||
The amortized cost and estimated fair value of investment securities are as follows: | |||||||||||||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||||||||||||||
Cost | Gains | (Losses) | Value | ||||||||||||||||||||||||||||||||||||||
Securities available-for-sale | (in thousands) | ||||||||||||||||||||||||||||||||||||||||
U.S. government agency notes | $ | 5,994 | $ | - | $ | (318 | ) | $ | 5,676 | ||||||||||||||||||||||||||||||||
U.S. government agency mortgage backed securities ("MBS") | 62 | 3 | - | 65 | |||||||||||||||||||||||||||||||||||||
U.S. government agency collateralized mortgage obligations ("CMO") | 9,691 | 13 | (76 | ) | 9,628 | ||||||||||||||||||||||||||||||||||||
Equity securities: Farmer Mac class A stock | 66 | 1 | - | 67 | |||||||||||||||||||||||||||||||||||||
Total | $ | 15,813 | $ | 17 | $ | (394 | ) | $ | 15,436 | ||||||||||||||||||||||||||||||||
Securities held-to-maturity | |||||||||||||||||||||||||||||||||||||||||
U.S. government agency MBS | $ | 10,149 | $ | 469 | $ | (18 | ) | $ | 10,600 | ||||||||||||||||||||||||||||||||
Total | $ | 10,149 | $ | 469 | $ | (18 | ) | $ | 10,600 | ||||||||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||||||||||||||
Cost | Gains | (Losses) | Value | ||||||||||||||||||||||||||||||||||||||
Securities available-for-sale | (in thousands) | ||||||||||||||||||||||||||||||||||||||||
U.S. government agency notes | $ | 1,998 | $ | - | $ | (10 | ) | $ | 1,988 | ||||||||||||||||||||||||||||||||
U.S. government agency MBS | 163 | 8 | - | 171 | |||||||||||||||||||||||||||||||||||||
U.S. government agency CMO | 9,783 | 62 | - | 9,845 | |||||||||||||||||||||||||||||||||||||
Total | $ | 11,944 | $ | 70 | $ | (10 | ) | $ | 12,004 | ||||||||||||||||||||||||||||||||
Securities held-to-maturity | |||||||||||||||||||||||||||||||||||||||||
U.S. government agency MBS | $ | 12,036 | $ | 729 | $ | - | $ | 12,765 | |||||||||||||||||||||||||||||||||
Total | $ | 12,036 | $ | 729 | $ | - | $ | 12,765 | |||||||||||||||||||||||||||||||||
At September 30, 2013 and December 31, 2012, $25.6 million and $24.0 million of securities at carrying value, respectively, were pledged to the Federal Home Loan Bank San Francisco, as collateral for current and future advances. | |||||||||||||||||||||||||||||||||||||||||
The Company had no security sales in 2013. For the nine months ended September 30, 2012, the Company sold $4.1 million of securities for a net gain on sale of $0.1 million. | |||||||||||||||||||||||||||||||||||||||||
In January 2013, CWB became an approved Federal Agricultural Mortgage Corporation (“Farmer Mac”) lender under the Farmer Mac I and Farmer Mac II Programs. Under the Farmer Mac I program loans are sourced by CWB, underwritten, funded and serviced by Farmer Mac. CWB receives an origination fee and ongoing fee for serving the credit. The Farmer Mac II program was authorized by Congress in 1991 to establish a uniform national secondary market for originators and investors using the United States Department of Agriculture (“USDA”) guaranteed loan programs. Under this program, CWB can sell the guaranteed portions of USDA loans directly to Farmer Mac’s subsidiary, Farmer Mac II LLC, services the loans, and retains the unguaranteed portions of those loans in accordance with the terms of the existing USDA guaranteed loan programs. Eligible loans include Farm Service Agency (“FSA”) and Business and Industrial loans. To participate in the program, CWB was required to purchase 2,000 shares of Farmer Mac Class A Stock (“AGM”) which was classified as available-for-sale. | |||||||||||||||||||||||||||||||||||||||||
The maturity periods and weighted average yields of investment securities at September 30, 2013 are as follows: | |||||||||||||||||||||||||||||||||||||||||
Less than One Year | One to Five Years | Five to Ten Years | Over Ten Years | Total | |||||||||||||||||||||||||||||||||||||
Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | ||||||||||||||||||||||||||||||||
Securities available-for-sale | (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
U.S. government agency notes | $ | 5,676 | 1.2 | % | $ | - | - | $ | - | - | $ | - | - | $ | 5,676 | 1.2 | % | ||||||||||||||||||||||||
U.S. government agency MBS | - | - | - | - | 65 | 2.2 | % | - | - | 65 | 2.2 | % | |||||||||||||||||||||||||||||
U.S. government agency CMO | - | - | 2,427 | 0.7 | % | 4,355 | 0.5 | % | 2,846 | 0.8 | % | 9,628 | 0.7 | % | |||||||||||||||||||||||||||
Farmer Mac class A stock | - | - | - | - | - | - | - | - | 67 | - | |||||||||||||||||||||||||||||||
Total | $ | 5,676 | 1.2 | % | $ | 2,427 | 0.7 | % | $ | 4,420 | 0.6 | % | $ | 2,846 | 0.8 | % | $ | 15,436 | 0.9 | % | |||||||||||||||||||||
Securities held-to-maturity | |||||||||||||||||||||||||||||||||||||||||
U.S. government agency MBS | $ | - | - | $ | 2,366 | 4.7 | % | $ | 7,783 | 2.7 | % | $ | - | - | $ | 10,149 | 3.2 | % | |||||||||||||||||||||||
Total | $ | - | - | $ | 2,366 | 4.7 | % | $ | 7,783 | 2.7 | % | $ | - | - | $ | 10,149 | 3.2 | % | |||||||||||||||||||||||
The amortized cost and fair value of securities as of September 30, 2013 and December 31, 2012, by contractual maturities, are shown below: | |||||||||||||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||||||||
Amortized | Estimated | Amortized | Estimated | ||||||||||||||||||||||||||||||||||||||
Cost | Fair Value | Cost | Fair Value | ||||||||||||||||||||||||||||||||||||||
Securities available for sale | (in thousands) | ||||||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 5,994 | $ | 5,676 | $ | 4,923 | $ | 4,913 | |||||||||||||||||||||||||||||||||
After one year through five years | 2,418 | 2,427 | 6,858 | 6,920 | |||||||||||||||||||||||||||||||||||||
After five years through ten years | 4,425 | 4,420 | 163 | 171 | |||||||||||||||||||||||||||||||||||||
After ten years | 2,910 | 2,846 | - | - | |||||||||||||||||||||||||||||||||||||
Farmer Mac class A stock | 66 | 67 | - | - | |||||||||||||||||||||||||||||||||||||
$ | 15,813 | $ | 15,436 | $ | 11,944 | $ | 12,004 | ||||||||||||||||||||||||||||||||||
Securities held to maturity | |||||||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||||||||||||||
After one year through five years | 2,366 | 2,521 | 4,051 | 4,314 | |||||||||||||||||||||||||||||||||||||
After five years through ten years | 7,783 | 8,079 | 7,985 | 8,451 | |||||||||||||||||||||||||||||||||||||
After ten years | - | - | - | - | |||||||||||||||||||||||||||||||||||||
$ | 10,149 | $ | 10,600 | $ | 12,036 | $ | 12,765 | ||||||||||||||||||||||||||||||||||
The following tables show all securities that are in an unrealized loss position: | |||||||||||||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||||||||||
Less Than Twelve Months | More Than Twelve Months | Total | |||||||||||||||||||||||||||||||||||||||
Gross | Gross | Gross | |||||||||||||||||||||||||||||||||||||||
Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | ||||||||||||||||||||||||||||||||||||
Losses | Value | Losses | Value | Losses | Value | ||||||||||||||||||||||||||||||||||||
Securities available-for-sale | (in thousands) | ||||||||||||||||||||||||||||||||||||||||
U.S. government agency notes | $ | 318 | $ | 5,676 | $ | - | $ | - | $ | 318 | $ | 5,676 | |||||||||||||||||||||||||||||
U.S. government agency CMO | 76 | 5,427 | $ | - | $ | - | 76 | 5,427 | |||||||||||||||||||||||||||||||||
$ | 394 | $ | 11,103 | $ | - | $ | - | $ | 394 | $ | 11,103 | ||||||||||||||||||||||||||||||
Securities held-to-maturity | |||||||||||||||||||||||||||||||||||||||||
U.S. Government-agency MBS | $ | 18 | $ | 1,080 | $ | - | $ | - | $ | 18 | $ | 1,080 | |||||||||||||||||||||||||||||
Total | $ | 18 | $ | 1,080 | $ | - | $ | - | $ | 18 | $ | 1,080 | |||||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||||||||||
Less Than Twelve Months | More Than Twelve Months | Total | |||||||||||||||||||||||||||||||||||||||
Gross | Gross | Gross | |||||||||||||||||||||||||||||||||||||||
Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | ||||||||||||||||||||||||||||||||||||
Losses | Value | Losses | Value | Losses | Value | ||||||||||||||||||||||||||||||||||||
Securities available-for-sale | (in thousands) | ||||||||||||||||||||||||||||||||||||||||
U.S. government agency notes | $ | 10 | $ | 1,988 | $ | - | $ | - | $ | 10 | $ | 1,988 | |||||||||||||||||||||||||||||
U.S. government agency CMO | 1 | 876 | 1 | 411 | 2 | 1,287 | |||||||||||||||||||||||||||||||||||
Total | $ | 11 | $ | 2,864 | $ | 1 | $ | 411 | $ | 12 | $ | 3,275 | |||||||||||||||||||||||||||||
As of September 30, 2013 and December 31, 2012, there were eight and four securities, respectively, in an unrealized loss position. | |||||||||||||||||||||||||||||||||||||||||
Declines in the fair value of held-to-maturity and available-for-sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers, among other things (i) the length of time and the extent to which the fair value has been less than cost (ii) the financial condition and near-term prospects of the issuer and (iii) the Company’s intent to sell an impaired security and if it is not more likely than not it will be required to sell the security before the recovery of its amortized basis. | |||||||||||||||||||||||||||||||||||||||||
The unrealized losses are primarily due to increases in market interest rates over the yields available at the time the underlying securities were purchased. The fair value is expected to recover as the bonds approach their maturity date, repricing date or if market yields for such investments decline. Management does not believe any of the securities are impaired due to reasons of credit quality. Accordingly, as of September 30, 2013 and December 31, 2012, management believes the impairments detailed in the table above are temporary and no other-than-temporary impairment loss has been realized in the Company’s consolidated income statements. | |||||||||||||||||||||||||||||||||||||||||
LOAN_SALES_AND_SERVICING
LOAN SALES AND SERVICING | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
LOAN SALES AND SERVICING [Abstract] | ' | ||||||||||||||||
LOAN SALES AND SERVICING | ' | ||||||||||||||||
3 | LOAN SALES AND SERVICING | ||||||||||||||||
SBA Loan Sales - The Company periodically sells the guaranteed portion of selected SBA loans into the secondary market, on a servicing-retained basis. The Company retains the unguaranteed portion of these loans and services the loans as required under the SBA programs to retain specified yield amounts. | |||||||||||||||||
On certain SBA loan sales that occurred prior to 2003, the Company retained interest only strips (“I/O strips”), which represent the present value of excess net cash flows generated by the difference between (a) interest at the stated rate paid by borrowers and (b) the sum of (i) pass-through interest paid to third-party investors and (ii) contractual servicing fees. The fair value is determined on a quarterly basis through a discounted cash flow analysis prepared by an independent third party using industry prepayment speeds. | |||||||||||||||||
Historically, the Company has elected to use the amortizing method for the treatment of servicing assets and has measured for impairment on a quarterly basis through a discounted cash flow analysis prepared by an independent third party using industry prepayment speeds. In connection with the sale of SBA loans during the first quarter of 2012, the Company recorded a servicing asset and has elected to measure this asset at fair value in accordance with ASC 825-10 – Fair Value Option to better reflect the impact of subsequent changes in interest rates. The SBA program stipulates that the Company retains a minimum of 5% of the loan balance, which is unguaranteed. The percentage of each unguaranteed loan in excess of 5% may be periodically sold to a third party, typically for a cash premium. The Company records servicing liabilities for the sold unguaranteed loans. These servicing liabilities are calculated based on the present value of the estimated future servicing costs associated with each loan. As of September 30, 2013 and December 31, 2012, the servicing liability was $32,000 and $39,000, respectively. | |||||||||||||||||
The Company may also periodically sell certain SBA loans into the secondary market, on a servicing-released basis, typically for a cash premium. As of September 30, 2013 and December 31, 2012, the Company had approximately $48.9 million and $55.7 million, respectively, in SBA loans included in loans held for sale. As of September 30, 2013 and December 31, 2012, the principal balance of loans serviced was $29.4 million and $32.7 million, respectively. | |||||||||||||||||
The Company has expanded its agricultural lending program to include agricultural land, agricultural operational lines, and agricultural term loans for crops, equipment and livestock. The primary products are supported by guarantees issued from the USDA, FSA, and the USDA Business and Industry loan program. In the third quarter of 2012, the Company sold $2.5 million in USDA loans and recorded the related servicing asset at fair value. | |||||||||||||||||
As of September 30, 2013 and December 31, 2012, the Company had $14.2 million and $4.8 million of USDA loans included in loans held for sale, respectively. As of September 30, 2013 and December 31, 2012, the principal balance of USDA loans serviced was $2.5 million. | |||||||||||||||||
The following table presents the I/O strips activity as of the periods presented: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||
Beginning balance | $ | 394 | $ | 456 | $ | 426 | $ | 419 | |||||||||
Adjustment to fair value | (18 | ) | (5 | ) | (50 | ) | 32 | ||||||||||
Ending balance | $ | 376 | $ | 451 | $ | 376 | $ | 451 | |||||||||
The key data assumptions used in estimating the fair value of the I/O strips as of the periods presented were as follows: | |||||||||||||||||
September 30, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Weighted-average constant prepayment rate | 5.17 | % | 5.66 | % | |||||||||||||
Weighted-average life (in years) | 6 | 6 | |||||||||||||||
Weighted-average discount rate | 12.74 | % | 12.94 | % | |||||||||||||
A sensitivity analysis of the fair value of the I/O strips to changes in certain key assumptions is presented in the following table: | |||||||||||||||||
September 30, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
( in thousands) | |||||||||||||||||
Discount Rate | |||||||||||||||||
Increase in fair value from 100 basis points ("bps") decrease | $ | 11 | $ | 13 | |||||||||||||
Decrease in fair value from 100 bps increase | (10 | ) | (13 | ) | |||||||||||||
Constant Prepayment Rate | |||||||||||||||||
Increase in fair value from 10 percent decrease | 5 | 7 | |||||||||||||||
Decrease in fair value from 10 percent increase | (5 | ) | (7 | ) | |||||||||||||
The following is a summary of the activity for servicing rights accounted for under the amortization method: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||
Beginning balance | $ | 326 | $ | 441 | $ | 383 | $ | 625 | |||||||||
Amortization | (28 | ) | (29 | ) | (85 | ) | (213 | ) | |||||||||
Ending balance | $ | 298 | $ | 412 | $ | 298 | $ | 412 | |||||||||
The following is a summary of the activity for servicing rights accounted for under the fair value method: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||
Beginning balance | $ | 304 | $ | 253 | $ | 348 | $ | - | |||||||||
Additions through loan sales | - | 72 | - | 349 | |||||||||||||
Adjustment to fair value | (4 | ) | 8 | (48 | ) | (16 | ) | ||||||||||
Ending balance | $ | 300 | $ | 333 | $ | 300 | $ | 333 | |||||||||
The key data and assumptions used in estimating the fair value of servicing rights as of the periods presented were as follows: | |||||||||||||||||
September 30, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Weighted-average constant prepayment rate | 4.62 | % | 5.19 | % | |||||||||||||
Weighted-average life (in years) | 9 | 9 | |||||||||||||||
Weighted-average discount rate | 13.48 | % | 13.93 | % | |||||||||||||
A sensitivity analysis of the fair value of servicing rights to change in certain key assumptions is presented in the following table: | |||||||||||||||||
September 30, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
( in thousands) | |||||||||||||||||
Discount Rate | |||||||||||||||||
Increase in fair value from 100 basis points ("bps") decrease | $ | 12 | $ | 13 | |||||||||||||
Decrease in fair value from 100 bps increase | (11 | ) | (13 | ) | |||||||||||||
Constant Prepayment Rate | |||||||||||||||||
Increase in fair value from 10 percent decrease | 6 | 7 | |||||||||||||||
Decrease in fair value from 10 percent increase | (5 | ) | (7 | ) | |||||||||||||
This sensitivity analysis generally cannot be extrapolated because the relationship of a change in one key assumption to the change in the fair value of the Company’s servicing rights usually is not linear. In addition, the effect of changing one key assumption without changing other assumptions is not a viable option. | |||||||||||||||||
Mortgage Loan Sales – From time to time, the Company enters into mortgage loan rate lock commitments (normally for 30 days) with potential borrowers. In conjunction therewith, the Company enters into a forward sale commitment to sell the locked loan to a third party investor. This forward sale agreement requires delivery of the loan on a “best efforts” basis but does not obligate the Company to deliver if the mortgage loan does not fund. | |||||||||||||||||
The mortgage rate lock agreement and the forward sale agreement qualify as derivatives. The value of these derivatives is generally equal to the fee, if any, charged to the borrower at inception but may fluctuate in the event of changes in interest rates. These derivative financial instruments are recorded at fair value if material. Although the Company does not attempt to qualify these transactions for the special hedge accounting, management believes that changes in the fair value of the two commitments generally offset and create an economic hedge. At September 30, 2013 and December 31, 2012, the Company had $1.2 million and $15.8 million, respectively, in outstanding mortgage loan interest rate lock and forward sale commitments. The value of related derivative instruments was not material to the Company’s financial position or results of operations. | |||||||||||||||||
LOANS_HELD_FOR_INVESTMENT
LOANS HELD FOR INVESTMENT | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
LOANS HELD FOR INVESTMENT [Abstract] | ' | ||||||||||||||||||||||||||||||||
LOANS HELD FOR INVESTMENT | ' | ||||||||||||||||||||||||||||||||
4 | LOANS HELD FOR INVESTMENT | ||||||||||||||||||||||||||||||||
The composition of the Company’s loans held for investment loan portfolio follows: | |||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Manufactured housing | $ | 172,126 | $ | 177,391 | |||||||||||||||||||||||||||||
Commercial real estate | 132,034 | 126,677 | |||||||||||||||||||||||||||||||
Commercial | 31,453 | 32,496 | |||||||||||||||||||||||||||||||
SBA | 25,753 | 30,688 | |||||||||||||||||||||||||||||||
HELOC | 15,616 | 17,852 | |||||||||||||||||||||||||||||||
Single family real estate | 10,007 | 9,939 | |||||||||||||||||||||||||||||||
Consumer | 186 | 232 | |||||||||||||||||||||||||||||||
387,175 | 395,275 | ||||||||||||||||||||||||||||||||
Allowance for loan losses | 11,654 | 14,464 | |||||||||||||||||||||||||||||||
Deferred costs, net | (92 | ) | (128 | ) | |||||||||||||||||||||||||||||
Discount on SBA loans | 355 | 432 | |||||||||||||||||||||||||||||||
Total loans held for investment, net | $ | 375,258 | $ | 380,507 | |||||||||||||||||||||||||||||
The following table presents the contractual aging of the recorded investment in past due held for investment loans by class of loans: | |||||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||
Recorded | |||||||||||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | Over 90 Days | Total | Over 90 Days | |||||||||||||||||||||||||||||
Current | Past Due | Past Due | Past Due | Past Due | Total | and Accruing | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Manufactured housing | $ | 171,923 | $ | 144 | $ | 59 | $ | - | $ | 203 | $ | 172,126 | $ | - | |||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Commercial real estate | 84,191 | - | - | - | - | 84,191 | - | ||||||||||||||||||||||||||
SBA 504 1st trust deed | 33,315 | - | - | 490 | 490 | 33,805 | - | ||||||||||||||||||||||||||
Land | 1,972 | - | - | - | - | 1,972 | - | ||||||||||||||||||||||||||
Construction | 12,066 | - | - | - | - | 12,066 | - | ||||||||||||||||||||||||||
Commercial | 27,952 | - | 3,501 | - | 3,501 | 31,453 | - | ||||||||||||||||||||||||||
SBA (1) | 24,953 | 98 | - | 702 | 800 | 25,753 | - | ||||||||||||||||||||||||||
HELOC | 15,616 | - | - | - | - | 15,616 | - | ||||||||||||||||||||||||||
Single family real estate | 9,739 | - | - | 268 | 268 | 10,007 | - | ||||||||||||||||||||||||||
Consumer | 186 | - | - | - | - | 186 | - | ||||||||||||||||||||||||||
Total | $ | 381,913 | $ | 242 | $ | 3,560 | $ | 1,460 | $ | 5,262 | $ | 387,175 | $ | - | |||||||||||||||||||
-1 | $0.7 million of the $0.8 million SBA loans past due are guaranteed by the SBA. | ||||||||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
Recorded | |||||||||||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | Over 90 Days | Total | Over 90 Days | |||||||||||||||||||||||||||||
Current | Past Due | Past Due | Past Due | Past Due | Total | and Accruing | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Manufactured housing | $ | 176,249 | $ | 467 | $ | 258 | $ | 417 | $ | 1,142 | $ | 177,391 | $ | - | |||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Commercial real estate | 81,682 | - | - | 830 | 830 | 82,512 | - | ||||||||||||||||||||||||||
SBA 504 1st trust deed | 34,502 | - | - | - | - | 34,502 | - | ||||||||||||||||||||||||||
Land | 4,556 | - | - | - | - | 4,556 | - | ||||||||||||||||||||||||||
Construction | 5,107 | - | - | - | - | 5,107 | - | ||||||||||||||||||||||||||
Commercial | 32,324 | 40 | - | 132 | 172 | 32,496 | - | ||||||||||||||||||||||||||
SBA (1) | 23,906 | 713 | - | 6,069 | 6,782 | 30,688 | - | ||||||||||||||||||||||||||
HELOC | 17,852 | - | - | - | - | 17,852 | - | ||||||||||||||||||||||||||
Single family real estate | 9,895 | 32 | - | 12 | 44 | 9,939 | 12 | ||||||||||||||||||||||||||
Consumer | 232 | - | - | - | - | 232 | - | ||||||||||||||||||||||||||
Total | $ | 386,305 | $ | 1,252 | $ | 258 | $ | 7,460 | $ | 8,970 | $ | 395,275 | $ | 12 | |||||||||||||||||||
-1 | $5.6 million of the $6.8 million SBA loans past due are guaranteed by the SBA. | ||||||||||||||||||||||||||||||||
Allowance for Credit Losses | |||||||||||||||||||||||||||||||||
The following table summarizes the changes in the allowance for loan losses: | |||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Beginning balance | $ | 12,456 | $ | 15,446 | $ | 14,464 | $ | 15,270 | |||||||||||||||||||||||||
Charge-offs | (692 | ) | (1,946 | ) | (1,959 | ) | (6,403 | ) | |||||||||||||||||||||||||
Recoveries | 1,453 | 262 | 1,992 | 1,012 | |||||||||||||||||||||||||||||
Net charge-offs | 761 | (1,684 | ) | 33 | (5,391 | ) | |||||||||||||||||||||||||||
Provision | (1,563 | ) | 1,293 | (2,843 | ) | 5,176 | |||||||||||||||||||||||||||
Ending balance | $ | 11,654 | $ | 15,055 | $ | 11,654 | $ | 15,055 | |||||||||||||||||||||||||
As of September 30, 2013 and December 31, 2012, the Company had reserves for credit losses on undisbursed loans of $0.1 million which were included in Other liabilities. | |||||||||||||||||||||||||||||||||
The following tables summarize the changes in the allowance for loan losses by portfolio type: | |||||||||||||||||||||||||||||||||
For the Three Months Ended September 30, | |||||||||||||||||||||||||||||||||
Manufactured | Commercial | Single Family | |||||||||||||||||||||||||||||||
Housing | Real Estate | Commercial | SBA | HELOC | Real Estate | Consumer | Total | ||||||||||||||||||||||||||
2013 | (in thousands) | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 5,691 | $ | 2,654 | $ | 1,529 | $ | 2,073 | $ | 311 | $ | 197 | $ | 1 | $ | 12,456 | |||||||||||||||||
Charge-offs | (379 | ) | (157 | ) | (32 | ) | (76 | ) | - | (48 | ) | - | (692 | ) | |||||||||||||||||||
Recoveries | 119 | 1,135 | 45 | 149 | 1 | 4 | - | 1,453 | |||||||||||||||||||||||||
Net charge-offs | (260 | ) | 978 | 13 | 73 | 1 | (44 | ) | - | 761 | |||||||||||||||||||||||
Provision | (80 | ) | (1,266 | ) | (365 | ) | 132 | (32 | ) | 48 | - | (1,563 | ) | ||||||||||||||||||||
Ending balance | $ | 5,351 | $ | 2,366 | $ | 1,177 | $ | 2,278 | $ | 280 | $ | 201 | $ | 1 | $ | 11,654 | |||||||||||||||||
2012 | |||||||||||||||||||||||||||||||||
Beginning balance | $ | 5,187 | $ | 3,175 | $ | 3,064 | $ | 3,148 | $ | 671 | $ | 199 | $ | 2 | $ | 15,446 | |||||||||||||||||
Charge-offs | (1,212 | ) | (396 | ) | - | (241 | ) | (74 | ) | (23 | ) | - | (1,946 | ) | |||||||||||||||||||
Recoveries | 3 | 31 | 81 | 140 | - | 2 | 5 | 262 | |||||||||||||||||||||||||
Net charge-offs | (1,209 | ) | (365 | ) | 81 | (101 | ) | (74 | ) | (21 | ) | 5 | (1,684 | ) | |||||||||||||||||||
Provision | 2,022 | 151 | (521 | ) | (238 | ) | (111 | ) | (5 | ) | (5 | ) | 1,293 | ||||||||||||||||||||
Ending balance | $ | 6,000 | $ | 2,961 | $ | 2,624 | $ | 2,809 | $ | 486 | $ | 173 | $ | 2 | $ | 15,055 | |||||||||||||||||
For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||
Manufactured | Commercial | Single Family | |||||||||||||||||||||||||||||||
Housing | Real Estate | Commercial | SBA | HELOC | Real Estate | Consumer | Total | ||||||||||||||||||||||||||
2013 | (in thousands) | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 5,945 | $ | 2,627 | $ | 2,325 | $ | 2,733 | $ | 634 | $ | 198 | $ | 2 | $ | 14,464 | |||||||||||||||||
Charge-offs | (1,088 | ) | (161 | ) | (149 | ) | (355 | ) | (39 | ) | (136 | ) | (31 | ) | (1,959 | ) | |||||||||||||||||
Recoveries | 248 | 1,185 | 154 | 396 | 2 | 7 | - | 1,992 | |||||||||||||||||||||||||
Net charge-offs | (840 | ) | 1,024 | 5 | 41 | (37 | ) | (129 | ) | (31 | ) | 33 | |||||||||||||||||||||
Provision | 246 | (1,285 | ) | (1,153 | ) | (496 | ) | (317 | ) | 132 | 30 | (2,843 | ) | ||||||||||||||||||||
Ending balance | $ | 5,351 | $ | 2,366 | $ | 1,177 | $ | 2,278 | $ | 280 | $ | 201 | $ | 1 | $ | 11,654 | |||||||||||||||||
2012 | |||||||||||||||||||||||||||||||||
Beginning balance | $ | 4,629 | $ | 3,528 | $ | 2,734 | $ | 3,877 | $ | 349 | $ | 150 | $ | 3 | $ | 15,270 | |||||||||||||||||
Charge-offs | (3,115 | ) | (1,687 | ) | (656 | ) | (600 | ) | (76 | ) | (261 | ) | (8 | ) | (6,403 | ) | |||||||||||||||||
Recoveries | 52 | 32 | 118 | 750 | 50 | 5 | 5 | 1,012 | |||||||||||||||||||||||||
Net charge-offs | (3,063 | ) | (1,655 | ) | (538 | ) | 150 | (26 | ) | (256 | ) | (3 | ) | (5,391 | ) | ||||||||||||||||||
Provision | 4,434 | 1,088 | 428 | (1,218 | ) | 163 | 279 | 2 | 5,176 | ||||||||||||||||||||||||
Ending balance | $ | 6,000 | $ | 2,961 | $ | 2,624 | $ | 2,809 | $ | 486 | $ | 173 | $ | 2 | $ | 15,055 | |||||||||||||||||
The following tables present impairment method information related to loans and allowance for loan losses by loan portfolio segment: | |||||||||||||||||||||||||||||||||
Manufactured | Commercial | Single Family | Total | ||||||||||||||||||||||||||||||
Housing | Real Estate | Commercial | SBA | HELOC | Real Estate | Consumer | Loans | ||||||||||||||||||||||||||
Loans Held for Investment as of September 30, 2013: | (in thousands) | ||||||||||||||||||||||||||||||||
Recorded Investment: | |||||||||||||||||||||||||||||||||
Impaired loans with an allowance recorded | $ | 5,726 | $ | 1,480 | $ | 471 | $ | 1,471 | $ | 224 | $ | 77 | $ | - | $ | 9,449 | |||||||||||||||||
Impaired loans with no allowance recorded | 3,023 | 1,970 | 3,548 | 100 | 298 | 693 | - | 9,632 | |||||||||||||||||||||||||
Total loans individually evaluated for impairment | 8,749 | 3,450 | 4,019 | 1,571 | 522 | 770 | - | 19,081 | |||||||||||||||||||||||||
Loans collectively evaluated for impairment | 163,377 | 128,584 | 27,434 | 24,182 | 15,094 | 9,237 | 186 | 368,094 | |||||||||||||||||||||||||
Total loans held for investment | $ | 172,126 | $ | 132,034 | $ | 31,453 | $ | 25,753 | $ | 15,616 | $ | 10,007 | $ | 186 | $ | 387,175 | |||||||||||||||||
Unpaid Principal Balance | |||||||||||||||||||||||||||||||||
Impaired loans with an allowance recorded | $ | 6,121 | $ | 1,497 | $ | 813 | $ | 6,477 | $ | 231 | $ | 77 | $ | - | $ | 15,216 | |||||||||||||||||
Impaired loans with no allowance recorded | 4,900 | 3,974 | 3,558 | 1,878 | 300 | 786 | - | 15,396 | |||||||||||||||||||||||||
Total loans individually evaluated for impairment | 11,021 | 5,471 | 4,371 | 8,355 | 531 | 863 | - | 30,612 | |||||||||||||||||||||||||
Loans collectively evaluated for impairment | 163,377 | 128,584 | 27,434 | 24,182 | 15,094 | 9,237 | 186 | 368,094 | |||||||||||||||||||||||||
Total loans held for investment | $ | 174,398 | $ | 134,055 | $ | 31,805 | $ | 32,537 | $ | 15,625 | $ | 10,100 | $ | 186 | $ | 398,706 | |||||||||||||||||
Related Allowance for Credit Losses | |||||||||||||||||||||||||||||||||
Impaired loans with an allowance recorded | $ | 777 | $ | 133 | $ | 68 | $ | 190 | $ | 24 | $ | 10 | $ | - | $ | 1,202 | |||||||||||||||||
Impaired loans with no allowance recorded | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Total loans individually evaluated for impairment | 777 | 133 | 68 | 190 | 24 | 10 | - | 1,202 | |||||||||||||||||||||||||
Loans collectively evaluated for impairment | 4,574 | 2,233 | 1,109 | 2,088 | 256 | 191 | 1 | 10,452 | |||||||||||||||||||||||||
Total loans held for investment | $ | 5,351 | $ | 2,366 | $ | 1,177 | $ | 2,278 | $ | 280 | $ | 201 | $ | 1 | $ | 11,654 | |||||||||||||||||
Manufactured | Commercial | Single Family | Total | ||||||||||||||||||||||||||||||
Housing | Real Estate | Commercial | SBA | HELOC | Real Estate | Consumer | Loans | ||||||||||||||||||||||||||
Loans Held for Investment as of December 31, 2012: | (in thousands) | ||||||||||||||||||||||||||||||||
Recorded Investment: | |||||||||||||||||||||||||||||||||
Impaired loans with an allowance recorded | $ | 5,748 | $ | 519 | $ | 5,044 | $ | 503 | $ | 269 | $ | 80 | $ | - | $ | 12,163 | |||||||||||||||||
Impaired loans with no allowance recorded | 4,687 | 11,389 | 49 | 1,238 | - | 121 | - | 17,484 | |||||||||||||||||||||||||
Total loans individually evaluated for impairment | 10,435 | 11,908 | 5,093 | 1,741 | 269 | 201 | - | 29,647 | |||||||||||||||||||||||||
Loans collectively evaluated for impairment | 166,956 | 114,769 | 27,403 | 28,947 | 17,583 | 9,738 | 232 | 365,628 | |||||||||||||||||||||||||
Total loans held for investment | $ | 177,391 | $ | 126,677 | $ | 32,496 | $ | 30,688 | $ | 17,852 | $ | 9,939 | $ | 232 | $ | 395,275 | |||||||||||||||||
Unpaid Principal Balance | |||||||||||||||||||||||||||||||||
Impaired loans with an allowance recorded | $ | 5,922 | $ | 570 | $ | 5,430 | $ | 2,536 | $ | 271 | $ | 80 | $ | - | $ | 14,809 | |||||||||||||||||
Impaired loans with no allowance recorded | 6,828 | 17,624 | 50 | 6,736 | - | 197 | - | 31,435 | |||||||||||||||||||||||||
Total loans individually evaluated for impairment | 12,750 | 18,194 | 5,480 | 9,272 | 271 | 277 | - | 46,244 | |||||||||||||||||||||||||
Loans collectively evaluated for impairment | 166,956 | 114,769 | 27,403 | 28,947 | 17,583 | 9,738 | 232 | 365,628 | |||||||||||||||||||||||||
Total loans held for investment | $ | 179,706 | $ | 132,963 | $ | 32,883 | $ | 38,219 | $ | 17,854 | $ | 10,015 | $ | 232 | $ | 411,872 | |||||||||||||||||
Related Allowance for Credit Losses | |||||||||||||||||||||||||||||||||
Impaired loans with an allowance recorded | $ | 1,103 | $ | 4 | $ | 569 | $ | 58 | $ | 49 | $ | 11 | $ | - | $ | 1,794 | |||||||||||||||||
Impaired loans with no allowance recorded | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Total loans individually evaluated for impairment | 1,103 | 4 | 569 | 58 | 49 | 11 | - | 1,794 | |||||||||||||||||||||||||
Loans collectively evaluated for impairment | 4,842 | 2,623 | 1,756 | 2,675 | 585 | 187 | 2 | 12,670 | |||||||||||||||||||||||||
Total loans held for investment | $ | 5,945 | $ | 2,627 | $ | 2,325 | $ | 2,733 | $ | 634 | $ | 198 | $ | 2 | $ | 14,464 | |||||||||||||||||
A valuation allowance is established for an impaired loan when the fair value of the loan is less than the recorded investment. In certain cases, portions of impaired loans are charged-off to realizable value instead of establishing a valuation allowance and are included, when applicable in the table above as “Impaired loans without specific valuation allowance under ASC 310.” The valuation allowance disclosed above is included in the allowance for credit losses reported in the consolidated balance sheets as of September 30, 2013 and December 31, 2012. | |||||||||||||||||||||||||||||||||
The following tables summarize impaired loans by class of loans: | |||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Manufactured housing | $ | 8,749 | $ | 10,435 | |||||||||||||||||||||||||||||
Commercial real estate : | |||||||||||||||||||||||||||||||||
Commercial real estate | 2,681 | 10,615 | |||||||||||||||||||||||||||||||
SBA 504 1st trust deed | 769 | 1,293 | |||||||||||||||||||||||||||||||
Land | - | - | |||||||||||||||||||||||||||||||
Construction | - | - | |||||||||||||||||||||||||||||||
Commercial | 4,019 | 5,093 | |||||||||||||||||||||||||||||||
SBA | 1,571 | 1,741 | |||||||||||||||||||||||||||||||
HELOC | 522 | 269 | |||||||||||||||||||||||||||||||
Single family real estate | 770 | 201 | |||||||||||||||||||||||||||||||
Consumer | - | - | |||||||||||||||||||||||||||||||
Total | $ | 19,081 | $ | 29,647 | |||||||||||||||||||||||||||||
The following tables summarize average investment in impaired loans by class of loans and the related interest income recognized as of and for the periods ended: | |||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Average Investment | Interest | Average Investment | Interest | ||||||||||||||||||||||||||||||
in Impaired Loans | Income | in Impaired Loans | Income | ||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Manufactured housing | $ | 9,454 | $ | 85 | $ | 11,050 | $ | 110 | |||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Commercial real estate | 7,811 | 10 | 16,399 | 99 | |||||||||||||||||||||||||||||
SBA 504 1st | 1,089 | 4 | 2,042 | 16 | |||||||||||||||||||||||||||||
Land | - | - | - | - | |||||||||||||||||||||||||||||
Construction | - | - | 3,189 | - | |||||||||||||||||||||||||||||
Commercial | 2,789 | 142 | 5,442 | 70 | |||||||||||||||||||||||||||||
SBA | 1,790 | 34 | 1,696 | 69 | |||||||||||||||||||||||||||||
HELOC | 397 | 3 | 383 | 7 | |||||||||||||||||||||||||||||
Single family real estate | 747 | 1 | 251 | 3 | |||||||||||||||||||||||||||||
Consumer | - | - | 2 | - | |||||||||||||||||||||||||||||
Total | $ | 24,077 | $ | 279 | $ | 40,454 | $ | 374 | |||||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Average Investment | Interest | Average Investment | Interest | ||||||||||||||||||||||||||||||
in Impaired Loans | Income | in Impaired Loans | Income | ||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Manufactured housing | $ | 9,528 | $ | 182 | $ | 7,782 | $ | 214 | |||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Commercial real estate | 8,875 | 94 | 19,071 | 315 | |||||||||||||||||||||||||||||
SBA 504 1st | 1,163 | 28 | 4,496 | 116 | |||||||||||||||||||||||||||||
Land | - | - | - | - | |||||||||||||||||||||||||||||
Construction | - | - | 5,937 | 108 | |||||||||||||||||||||||||||||
Commercial | 3,831 | 208 | 5,591 | 235 | |||||||||||||||||||||||||||||
SBA | 1,432 | 136 | 1,796 | 130 | |||||||||||||||||||||||||||||
HELOC | 313 | 3 | 248 | 7 | |||||||||||||||||||||||||||||
Single family real estate | 452 | 10 | 350 | 10 | |||||||||||||||||||||||||||||
Consumer | - | - | 7 | - | |||||||||||||||||||||||||||||
Total | $ | 25,594 | $ | 661 | $ | 45,278 | $ | 1,135 | |||||||||||||||||||||||||
The following table reflects the recorded investment in certain types of loans at the periods indicated: | |||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Nonaccrual loans | $ | 21,055 | $ | 29,643 | |||||||||||||||||||||||||||||
SBA guaranteed portion of loans included above | (5,778 | ) | (7,218 | ) | |||||||||||||||||||||||||||||
Total nonaccrual loans, net | $ | 15,277 | $ | 22,425 | |||||||||||||||||||||||||||||
Troubled debt restructured loans, gross | $ | 12,288 | $ | 19,931 | |||||||||||||||||||||||||||||
Loans 30 through 89 days past due with interest accruing | $ | 74 | $ | 521 | |||||||||||||||||||||||||||||
Allowance for loan losses to gross loans held for investment | 3.01 | % | 3.66 | % | |||||||||||||||||||||||||||||
The guaranteed portion of each SBA loan is repurchased from investors when those loans become past due 120 days by either CWB or the SBA directly. After the foreclosure and collection process is complete, the principal balance of loans repurchased by CWB are reimbursed by the SBA. Although these balances do not earn interest during this period, they generally do not result in a loss of principal to CWB; therefore a repurchase reserve has not been established related to these loans. | |||||||||||||||||||||||||||||||||
The accrual of interest is discontinued when substantial doubt exists as to collectability of the loan; generally at the time the loan is 90 days delinquent. Any unpaid but accrued interest is reversed at that time. Thereafter, interest income is no longer recognized on the loan. Interest income may be recognized on impaired loans to the extent they are not past due by 90 days. Interest on nonaccrual loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all of the principal and interest amounts contractually due are brought current and future payments are reasonably assured. | |||||||||||||||||||||||||||||||||
The following table presents the composition of nonaccrual loans, net of SBA guarantee, by class of loans: | |||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Manufactured housing | $ | 5,327 | $ | 7,542 | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Commercial real estate | 2,681 | 10,615 | |||||||||||||||||||||||||||||||
SBA 504 1st | 490 | 490 | |||||||||||||||||||||||||||||||
Land | - | - | |||||||||||||||||||||||||||||||
Construction | - | - | |||||||||||||||||||||||||||||||
Commercial | 4,019 | 1,945 | |||||||||||||||||||||||||||||||
SBA | 1,545 | 1,442 | |||||||||||||||||||||||||||||||
HELOC | 522 | 269 | |||||||||||||||||||||||||||||||
Single family real estate | 693 | 121 | |||||||||||||||||||||||||||||||
Consumer | - | 1 | |||||||||||||||||||||||||||||||
Total | $ | 15,277 | $ | 22,425 | |||||||||||||||||||||||||||||
The Company utilizes an internal asset classification system as a means of reporting problem and potential problem loans. Under the Company’s risk rating system, the Company classifies problem and potential problem loans as “Special Mention,” “Substandard,” “Doubtful” and “Loss”. Substandard loans are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Loans classified as Doubtful, have all the weaknesses inherent in those classified Substandard with the added characteristic that the weaknesses present 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 important and reasonably specific pending factors, which may work to the advantage and strengthening of the loan, its classification as an estimated loss 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. Loans classified Loss are considered uncollectible and of such little value that their continuance as bankable loans is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this loan even though partial recovery may be affected in the future. Losses are taken in the period in which they surface as uncollectible. Loans that do not currently expose the Company to sufficient risk to warrant classification in one of the aforementioned categories but possess weaknesses that deserve management’s close attention are deemed to be Special Mention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution's credit position at some future date. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. Risk ratings are updated as part of our normal loan monitoring process, at a minimum, annually. The following tables present gross loans by risk rating: | |||||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||
Special | |||||||||||||||||||||||||||||||||
Pass | Mention | Substandard | Doubtful | Total | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Manufactured housing | $ | 159,086 | $ | - | $ | 13,040 | $ | - | $ | 172,126 | |||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Commercial real estate | 72,511 | 4,301 | 7,379 | - | 84,191 | ||||||||||||||||||||||||||||
SBA 504 1st trust deed | 32,205 | 253 | 1,347 | - | 33,805 | ||||||||||||||||||||||||||||
Land | 1,149 | 823 | - | - | 1,972 | ||||||||||||||||||||||||||||
Construction | 12,066 | - | - | - | 12,066 | ||||||||||||||||||||||||||||
Commercial | 25,583 | 672 | 5,169 | 29 | 31,453 | ||||||||||||||||||||||||||||
SBA | 15,193 | 59 | 2,343 | 14 | 17,609 | ||||||||||||||||||||||||||||
HELOC | 6,963 | 3,119 | 5,534 | - | 15,616 | ||||||||||||||||||||||||||||
Single family real estate | 9,064 | - | 943 | - | 10,007 | ||||||||||||||||||||||||||||
Consumer | 186 | - | - | - | 186 | ||||||||||||||||||||||||||||
Total, net | $ | 334,006 | $ | 9,227 | $ | 35,755 | $ | 43 | $ | 379,031 | |||||||||||||||||||||||
SBA guarantee | - | - | 7,324 | 820 | 8,144 | ||||||||||||||||||||||||||||
Total | $ | 334,006 | $ | 9,227 | $ | 43,079 | $ | 863 | $ | 387,175 | |||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
Special | |||||||||||||||||||||||||||||||||
Pass | Mention | Substandard | Doubtful | Total | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Manufactured housing | $ | 164,269 | $ | - | $ | 13,122 | $ | - | $ | 177,391 | |||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Commercial real estate | 63,793 | 6,478 | 12,241 | - | 82,512 | ||||||||||||||||||||||||||||
SBA 504 1st trust deed | 31,385 | 1,461 | 1,656 | - | 34,502 | ||||||||||||||||||||||||||||
Land | 3,333 | 300 | 923 | - | 4,556 | ||||||||||||||||||||||||||||
Construction | 5,107 | - | - | - | 5,107 | ||||||||||||||||||||||||||||
Commercial | 27,015 | 997 | 4,413 | 71 | 32,496 | ||||||||||||||||||||||||||||
SBA | 16,302 | 1,514 | 2,504 | 54 | 20,374 | ||||||||||||||||||||||||||||
HELOC | 9,432 | 245 | 8,175 | - | 17,852 | ||||||||||||||||||||||||||||
Single family real estate | 9,622 | - | 317 | - | 9,939 | ||||||||||||||||||||||||||||
Consumer | 231 | - | 1 | - | 232 | ||||||||||||||||||||||||||||
Total, net | $ | 330,489 | $ | 10,995 | $ | 43,352 | $ | 125 | $ | 384,961 | |||||||||||||||||||||||
SBA guarantee | - | - | 7,551 | 2,763 | 10,314 | ||||||||||||||||||||||||||||
Total | $ | 330,489 | $ | 10,995 | $ | 50,903 | $ | 2,888 | $ | 395,275 | |||||||||||||||||||||||
A loan is considered a troubled debt restructure (“TDR”) when the bank grants a concession to a borrower for reasons related to the borrower’s financial difficulties it would not otherwise consider. These concessions include but are not limited to term extensions, rate reductions and principal reductions. Forgiveness of principal is rarely granted and modifications for all classes of loans are predominantly term extensions. TDR loans are also considered impaired. A loan is considered impaired when, based on current information; it is probable that the Company will be unable to collect the scheduled payments of principal and/or interest under the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and/or interest payments. Loans that experience insignificant payment delays or payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays or payment shortfalls on a case-by-case basis. When determining the possibility of impairment, management considers the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower's prior payment record and the amount of the shortfall in relation to the principal and interest owed. For collateral-dependent loans, the Company uses the fair value of collateral method to measure impairment. The collateral-dependent loans that recognize impairment are charged down to the fair value less costs to sell. All other loans are measured for impairment either based on the present value of future cash flows or the loan’s observable market price. Generally, a loan that is modified at an effective market rate of interest may no longer be disclosed as a troubled debt restructuring in years subsequent to the restructuring if it is not impaired based on the terms specified by the restructuring agreement. | |||||||||||||||||||||||||||||||||
The following tables summarize the financial effects of TDR loans by loan class for the periods presented: | |||||||||||||||||||||||||||||||||
For the Three Months Ended September 30, 2013 | |||||||||||||||||||||||||||||||||
Effect on | Balance of | Average Rate | Balance of | Average | |||||||||||||||||||||||||||||
Allowance for | Loans with | Reduction | Loans with | Extension | |||||||||||||||||||||||||||||
Balance | Loan Losses | Rate Reduction | (basis points) | Term Extension | (in months) | ||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
Manufactured housing | $ | 265 | $ | 15 | $ | 265 | 225 | $ | 265 | 112 | |||||||||||||||||||||||
Commercial real estate | - | - | - | - | - | - | |||||||||||||||||||||||||||
Construction | - | - | - | - | - | - | |||||||||||||||||||||||||||
Commercial | 3,501 | 221 | - | - | 3,501 | 31 | |||||||||||||||||||||||||||
SBA | - | - | - | - | - | - | |||||||||||||||||||||||||||
HELOC | - | - | - | - | - | - | |||||||||||||||||||||||||||
Single family real estate | 147 | 12 | 146 | 100 | 147 | 12 | |||||||||||||||||||||||||||
Total | $ | 3,913 | $ | 248 | $ | 411 | 200 | $ | 3,913 | 65 | |||||||||||||||||||||||
For the Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||||||
Effect on | Balance of | Average Rate | Balance of | Average | |||||||||||||||||||||||||||||
Allowance for | Loans with | Reduction | Loans with | Extension | |||||||||||||||||||||||||||||
Balance | Loan Losses | Rate Reduction | (basis points) | Term Extension | (in months) | ||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
Manufactured housing | $ | 1,405 | $ | 170 | $ | 444 | 171 | $ | 1,405 | 135 | |||||||||||||||||||||||
Commercial real estate | 655 | 45 | - | - | 655 | 8 | |||||||||||||||||||||||||||
Construction | - | - | - | - | - | - | |||||||||||||||||||||||||||
Commercial | 4,011 | 256 | - | - | 4,011 | 41 | |||||||||||||||||||||||||||
SBA | 87 | 16 | - | - | 87 | 4 | |||||||||||||||||||||||||||
HELOC | - | - | - | - | - | - | |||||||||||||||||||||||||||
Single family real estate | 147 | 12 | 147 | 100 | 147 | 12 | |||||||||||||||||||||||||||
Total | $ | 6,305 | $ | 499 | $ | 591 | 163 | $ | 6,305 | 96 | |||||||||||||||||||||||
For the Three Months Ended September 30, 2012 | |||||||||||||||||||||||||||||||||
Effect on | Balance of | Average Rate | Balance of | Average | |||||||||||||||||||||||||||||
Allowance for | Loans with | Reduction | Loans with | Extension | |||||||||||||||||||||||||||||
Balance | Loan Losses | Rate Reduction | (basis points) | Term Extension | (in months) | ||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
Manufactured housing | $ | 1,474 | $ | 341 | $ | - | - | $ | 1,474 | 171 | |||||||||||||||||||||||
Commercial real estate | - | - | - | - | - | - | |||||||||||||||||||||||||||
Construction | - | - | - | - | - | - | |||||||||||||||||||||||||||
Commercial | 289 | 30 | - | - | 289 | 49 | |||||||||||||||||||||||||||
SBA | 74 | 17 | - | - | 74 | 103 | |||||||||||||||||||||||||||
HELOC | - | - | - | - | - | - | |||||||||||||||||||||||||||
Single family real estate | - | - | - | - | - | - | |||||||||||||||||||||||||||
Total | $ | 1,837 | $ | 388 | $ | - | - | $ | 1,837 | 161 | |||||||||||||||||||||||
For the Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||||||||
Effect on | Balance of | Average Rate | Balance of | Average | |||||||||||||||||||||||||||||
Allowance for | Loans with | Reduction | Loans with | Extension | |||||||||||||||||||||||||||||
Balance | Loan Losses | Rate Reduction | (basis points) | Term Extension | (in months) | ||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
Manufactured housing | $ | 5,715 | $ | 888 | $ | 294 | 325 | $ | 5,715 | 159 | |||||||||||||||||||||||
Commercial real estate | 3,590 | 292 | - | - | 3,590 | 56 | |||||||||||||||||||||||||||
Construction | 3,147 | 315 | 3,146 | 300 | 3,147 | 15 | |||||||||||||||||||||||||||
Commercial | 1,021 | 139 | - | - | 1,021 | 55 | |||||||||||||||||||||||||||
SBA | 411 | 56 | - | - | 411 | 78 | |||||||||||||||||||||||||||
HELOC | - | - | - | - | - | - | |||||||||||||||||||||||||||
Single family real estate | 77 | 2 | - | - | 77 | 4 | |||||||||||||||||||||||||||
Total | $ | 13,961 | $ | 1,692 | $ | 3,440 | 320 | $ | 13,961 | 144 | |||||||||||||||||||||||
The following tables present TDR's by class that occurred in the past twelve months for which there was a payment default during the period: | |||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Effect on | Effect on | ||||||||||||||||||||||||||||||||
Allowance for | Number | Allowance for | Number | ||||||||||||||||||||||||||||||
Balance | Loan Losses | of Loans | Balance | Loan Losses | of Loans | ||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
Manufactured housing | $ | - | $ | - | - | $ | 124 | $ | 4 | 3 | |||||||||||||||||||||||
Total | $ | - | $ | - | - | $ | 124 | $ | 4 | 3 | |||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Effect on | Effect on | ||||||||||||||||||||||||||||||||
Allowance for | Number | Allowance for | Number | ||||||||||||||||||||||||||||||
Balance | Loan Losses | of Loans | Balance | Loan Losses | of Loans | ||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
Manufactured housing | $ | 375 | $ | 9 | 5 | $ | 124 | $ | 4 | 3 | |||||||||||||||||||||||
SBA 504 1st | - | - | - | 173 | - | 1 | |||||||||||||||||||||||||||
SBA | - | - | - | 68 | - | 1 | |||||||||||||||||||||||||||
Total | $ | 375 | $ | 9 | 5 | $ | 365 | $ | 4 | 5 | |||||||||||||||||||||||
A TDR loan is deemed to have a payment default when the borrower fails to make two consecutive payments or the collateral is transferred to repossessed assets. | |||||||||||||||||||||||||||||||||
At September 30, 2013 there were no material loan commitments outstanding on TDR loans. | |||||||||||||||||||||||||||||||||
FAIR_VALUE_MEASUREMENT
FAIR VALUE MEASUREMENT | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
FAIR VALUE MEASUREMENT [Abstract] | ' | ||||||||||||||||||||
FAIR VALUE MEASUREMENT | ' | ||||||||||||||||||||
5 | FAIR VALUE MEASUREMENT | ||||||||||||||||||||
The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities. FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”) established a framework for measuring fair value using 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 as of the measurement date. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would consider in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the reliability of inputs, as follows: | |||||||||||||||||||||
· | Level 1— Observable quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | ||||||||||||||||||||
· | Level 2— Observable quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, matrix pricing or model-based valuation techniques where all significant assumptions are observable, either directly or indirectly in the market. | ||||||||||||||||||||
· | Level 3— Model-based techniques where all significant assumptions are not observable, either directly or indirectly, in the market. These unobservable assumptions reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques may include use of discounted cash flow models and similar techniques. | ||||||||||||||||||||
The availability of observable inputs varies based on the nature of the specific financial instrument. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. | |||||||||||||||||||||
Fair value is a market-based measure considered from the perspective of a market participant who holds the asset or owes the liability rather than an entity-specific measure. When market assumptions are available, ASC 820 requires the Company to make assumptions regarding the assumptions that market participants would use to estimate the fair value of the financial instrument at the measurement date. | |||||||||||||||||||||
FASB ASC 825, Financial Instruments (“ASC 825”) requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate that value. | |||||||||||||||||||||
Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction at September 30, 2013 or December 31, 2012. The estimated fair value amounts for September 30, 2013 and December 31, 2012 have been measured as of period-end, and have not been reevaluated or updated for purposes of these consolidated financial statements subsequent to those dates. As such, the estimated fair values of these financial instruments subsequent to the reporting date may be different than the amounts reported at the period-end. | |||||||||||||||||||||
This information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only required for a limited portion of the Company’s assets and liabilities. | |||||||||||||||||||||
Due to the wide range of valuation techniques and the degree of subjectivity used in making the estimate, comparisons between the Company’s disclosures and those of other companies or banks may not be meaningful. | |||||||||||||||||||||
The following tables summarize the fair value of assets measured on a recurring basis: | |||||||||||||||||||||
Fair Value Measurements at the End of the Reporting Period Using: | |||||||||||||||||||||
Quoted Prices | |||||||||||||||||||||
in Active | Significant | ||||||||||||||||||||
Markets for | Other | Significant | |||||||||||||||||||
Identical | Observable | Unobservable | |||||||||||||||||||
Assets | Inputs | Inputs | Fair | ||||||||||||||||||
30-Sep-13 | (Level 1) | (Level 2) | (Level 3) | Value | |||||||||||||||||
Assets: | (in thousands) | ||||||||||||||||||||
Investment securities available-for-sale | $ | 67 | $ | 15,369 | $ | - | $ | 15,436 | |||||||||||||
Interest only strips | - | - | 376 | 376 | |||||||||||||||||
Servicing assets | - | - | 300 | 300 | |||||||||||||||||
$ | 67 | $ | 15,369 | $ | 676 | $ | 16,112 | ||||||||||||||
Fair Value Measurements at the End of the Reporting Period Using: | |||||||||||||||||||||
Quoted Prices | |||||||||||||||||||||
in Active | Significant | ||||||||||||||||||||
Markets for | Other | Significant | |||||||||||||||||||
Identical | Observable | Unobservable | |||||||||||||||||||
Assets | Inputs | Inputs | Fair | ||||||||||||||||||
31-Dec-12 | (Level 1) | (Level 2) | (Level 3) | Value | |||||||||||||||||
Assets: | (in thousands) | ||||||||||||||||||||
Investment securities available-for-sale | $ | - | $ | 12,004 | $ | - | $ | 12,004 | |||||||||||||
Interest only strips | - | - | 426 | 426 | |||||||||||||||||
Servicing assets | - | - | 348 | 348 | |||||||||||||||||
$ | - | $ | 12,004 | $ | 774 | $ | 12,778 | ||||||||||||||
Market valuations of our investment securities which are classified as level 2 are provided by an independent third party. The fair values are determined by using several sources for valuing fixed income securities. Their techniques include pricing models that vary based on the type of asset being valued and incorporate available trade, bid and other market information. In accordance with the fair value hierarchy, the market valuation sources include observable market inputs and are therefore considered Level 2 inputs for purposes of determining the fair values. | |||||||||||||||||||||
On certain SBA loan sales that occurred prior to 2003, the Company retained interest only strips (“I/O strips”), which represent the present value of excess net cash flows generated by the difference between (a) interest at the stated rate paid by borrowers and (b) the sum of (i) pass-through interest paid to third-party investors and (ii) contractual servicing fees. I/O strips are classified as level 3 in the fair value hierarchy. The fair value is determined on a quarterly basis through a discounted cash flow analysis prepared by an independent third party using industry prepayment speeds. I/O strip valuation adjustments are recorded as additions or offsets to loan servicing income. For additional information see Note 3 “Loan Sales and Servicing” beginning on page 14. | |||||||||||||||||||||
Historically, the Company has elected to use the amortizing method for the treatment of servicing assets and has measured for impairment on a quarterly basis through a discounted cash flow analysis prepared by an independent third party using industry prepayment speeds. In connection with the sale of SBA and USDA loans in 2012 the Company recorded servicing assets and elected to measure those assets at fair value in accordance with ASC 825-10. Significant assumptions in the valuation of servicing rights include estimated loan repayment rates, the discount rate, and servicing costs, among others. Servicing rights are classified as Level 3 measurements due to the use of significant unobservable inputs, as well as significant management judgment and estimation. | |||||||||||||||||||||
The Company also has assets that under certain conditions are subject to measurement at fair value on a non-recurring basis. These assets include loans held for sale, foreclosed real estate and repossessed assets and loans that are considered impaired per generally accepted accounting principles. | |||||||||||||||||||||
The following summarizes the fair value measurements of assets measured on a non-recurring basis: | |||||||||||||||||||||
Fair Value Measurements at the End of the Reporting Period Using | |||||||||||||||||||||
Quoted Prices | |||||||||||||||||||||
in Active | Active | ||||||||||||||||||||
Markets for | Markets for | Unobservable | |||||||||||||||||||
Identical Assets | Similar Assets | Inputs | |||||||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
As of September 30, 2013: | |||||||||||||||||||||
Impaired loans | $ | 17,879 | $ | - | $ | 9,632 | $ | 8,247 | |||||||||||||
Loans held for sale | 68,405 | - | 68,405 | - | |||||||||||||||||
Foreclosed real estate and repossesed assets | 3,975 | - | 3,975 | - | |||||||||||||||||
$ | 90,259 | $ | - | $ | 82,012 | $ | 8,247 | ||||||||||||||
As of December 31, 2012: | |||||||||||||||||||||
Impaired loans | $ | 27,853 | $ | - | $ | 17,430 | $ | 10,423 | |||||||||||||
Loans held for sale | 72,514 | - | 72,514 | - | |||||||||||||||||
Foreclosed real estate and repossesed assets | 1,889 | - | 1,889 | - | |||||||||||||||||
$ | 102,256 | $ | - | $ | 91,833 | $ | 10,423 | ||||||||||||||
The Company records certain loans at fair value on a non-recurring basis. When a loan is considered impaired an allowance for a loan loss is established. The fair value measurement and disclosure requirement applies to loans measured for impairment using the practical expedients method permitted by accounting guidance for impaired loans. Impaired loans are measured at an observable market price, if available or at the fair value of the loan’s collateral, if the loan is collateral dependent. The fair value of the loan’s collateral is determined by appraisals or independent valuation. When the fair value of the loan’s collateral is based on an observable market price or current appraised value, given the current real estate markets, the appraisals may contain a wide range of values and accordingly, the Company classifies the fair value of the impaired loans as a non-recurring valuation within Level 2 of the valuation hierarchy. For loans in which impairment is determined based on the net present value of cash flows, the Company classifies these as a non-recurring valuation within Level 3 of the valuation hierarchy. | |||||||||||||||||||||
Loans held for sale are carried at the lower of cost or fair value. The fair value of loans held for sale is based on what secondary markets are currently offering for portfolios with similar characteristics or based on the agreed-upon sale price. As such, the Company classifies the fair value of loans held for sale as a non-recurring valuation within Level 2 of the fair value hierarchy. At September 30, 2013 and December 31, 2012, the Company had loans held for sale with an aggregate carrying value of $64.2 million and $68.7 million respectively. | |||||||||||||||||||||
Foreclosed real estate and repossessed assets are carried at the lower of book value or fair value less estimated costs to sell. Fair value is based upon independent market prices obtained from certified appraisers or the current listing price, if lower. When the fair value of the collateral is based on a current appraised value, the Company reports the fair value of the foreclosed collateral as non-recurring Level 2. When a current appraised value is not available or if management determines the fair value of the collateral is further impaired, the Company reports the foreclosed collateral as non-recurring Level 3. | |||||||||||||||||||||
FAIR VALUES OF FINANCIAL INSTRUMENTS | |||||||||||||||||||||
The estimated fair values of financial instruments have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret market data to develop estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. | |||||||||||||||||||||
The estimated fair value of the Company’s financial instruments is as follows: | |||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||
Carrying | Fair Value | ||||||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Financial assets: | (in thousands) | ||||||||||||||||||||
Cash and cash equivalents | $ | 42,570 | $ | 42,570 | $ | - | $ | - | $ | 42,570 | |||||||||||
Interest-bearing deposits in other financial institutions | 3,282 | 3,282 | - | - | 3,282 | ||||||||||||||||
FRB and FHLB stock | 3,654 | - | 3,654 | 3,654 | |||||||||||||||||
Investment securities | 25,585 | 67 | 25,969 | - | 26,036 | ||||||||||||||||
Loans, net | 439,445 | - | 442,166 | 8,247 | 450,413 | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | 325,616 | - | 325,616 | - | 325,616 | ||||||||||||||||
Time deposits | 105,475 | - | 105,764 | - | 105,764 | ||||||||||||||||
Other borrowings | 35,442 | - | 36,206 | - | 36,206 | ||||||||||||||||
31-Dec-12 | |||||||||||||||||||||
Carrying | Fair Value | ||||||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Financial assets: | (in thousands) | ||||||||||||||||||||
Cash and cash equivalents | $ | 27,891 | $ | 27,891 | $ | - | $ | - | $ | 27,891 | |||||||||||
Interest-bearing deposits in other financial institutions | 3,653 | 3,653 | - | - | 3,653 | ||||||||||||||||
FRB and FHLB stock | 4,656 | - | 4,656 | 4,656 | |||||||||||||||||
Investment securities | 24,040 | - | 24,769 | - | 24,769 | ||||||||||||||||
Loans, net | 449,201 | - | 446,776 | 10,423 | 457,199 | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | 339,422 | - | 339,422 | - | 339,422 | ||||||||||||||||
Time deposits | 94,798 | - | 96,404 | - | 96,404 | ||||||||||||||||
Other borrowings | 41,852 | - | 43,238 | - | 43,238 | ||||||||||||||||
The methods and assumptions used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value are explained below: | |||||||||||||||||||||
Cash and cash equivalents - The carrying amounts approximate fair value because of the short-term nature of these instruments. | |||||||||||||||||||||
Interest-bearing deposits in other financial institutions - The carrying amounts approximate fair value because of the relative short-term nature of these instruments. | |||||||||||||||||||||
Federal Reserve Stock - The carrying value approximates the fair value because the stock can be sold back to the Federal Reserve at any time at par. | |||||||||||||||||||||
Federal Home Loan Bank Stock – CWB is a member of the FHLB system and maintains an investment in capital stock of the FHLB. This investment is carried at cost since no ready market exists for it, and it has no quoted market value. The Company conducts a periodic review and evaluation of our FHLB stock to determine if any impairment exists. The fair values have been categorized as Level 2 in the fair value hierarchy. | |||||||||||||||||||||
Investment securities – Market valuations of our investment securities are provided by an independent third party. The fair values are determined by using several sources for valuing fixed income securities. Their techniques include pricing models that vary based on the type of asset being valued and incorporate available trade, bid and other market information. In accordance with the fair value hierarchy, the market valuation sources include observable market inputs and are therefore considered Level 2 inputs for purposes of determining the fair values. | |||||||||||||||||||||
Loans – For most loan categories, the fair value is estimated using discounted cash flows utilizing an appropriate discount rate and historical prepayment speeds. For certain adjustable loans that reprice on a frequent basis carrying value approximates fair value. As a result, the fair value for loans is categorized as Level 2 in the fair value hierarchy. | |||||||||||||||||||||
Deposits – The amount payable at demand at report date is used to estimate the fair value of demand and savings deposits. The estimated fair values of fixed-rate time deposits are determined by discounting the cash flows of segments of deposits that have similar maturities and rates, utilizing a discount rate that approximates the prevailing rates offered to depositors as of the measurement date. The fair value measurement of deposit liabilities is categorized as Level 2 in the fair value hierarchy. | |||||||||||||||||||||
Other borrowings – The fair value is estimated using a discounted cash flow analysis based on rates for similar types of borrowing arrangements. The carrying value of FRB advances approximates the fair value due to the short term nature of these borrowings. The fair value measurement of other borrowings is categorized as Level 2. | |||||||||||||||||||||
Commitments to Extend Credit, Commercial and Standby Letters of Credit – Due to the proximity of the pricing of these commitments to the period end, the fair values of commitments are immaterial to the financial statements. | |||||||||||||||||||||
Interest rate risk | |||||||||||||||||||||
The Company assumes interest rate risk (the risk to the Company’s earnings and capital from changes in interest rate levels) as a result of its normal operations. As a result, the fair values of the Company’s financial instruments as well as its future net interest income will change when interest rate levels change and that change may be either favorable or unfavorable to the Company. | |||||||||||||||||||||
BORROWINGS
BORROWINGS | 9 Months Ended | |
Sep. 30, 2013 | ||
BORROWINGS [Abstract] | ' | |
BORROWINGS | ' | |
6 | BORROWINGS | |
Federal Home Loan Bank Advances – CWB has a blanket lien credit line with the Federal Home Loan Bank (“FHLB”). FHLB advances are collateralized in the aggregate by CWB’s eligible loans and securities. Total FHLB advances were $34.0 million at September 30, 2013 and December 31, 2012, borrowed at fixed rates with a weighted average rate of 2.89%. At September 30, 2013, CWB had pledged to the FHLB, $25.6 million of securities and $23.8 million of loans. At September 30, 2013, CWB had $69.2 million available for additional borrowing. At December 31, 2012, CWB had pledged to the FHLB, $24.0 million of securities and $25.5 million of loans. At December 31, 2012, CWB had $65.8 million available for additional borrowing. Total FHLB interest expense for the three and nine months ended September 30, 2013 and 2012 was $0.3 million and $0.7 million and $0.3 million and $0.9 million, respectively. | ||
Federal Reserve Bank – CWB has established a credit line with the Federal Reserve Bank (“FRB”). Advances are collateralized in the aggregate by eligible loans for up to 28 days. There were no outstanding FRB advances as of September 30, 2013 and December 31, 2012. CWB had $123.7 million and $66.3 million in borrowing capacity as of September 30, 2013 and December 31, 2012, respectively. | ||
Convertible Debentures - In 2010, the Company completed an offering of $8.1 million convertible subordinated debentures. The debentures are a general unsecured obligation and are subordinated in right of payment to all present and future senior indebtedness. The debentures pay interest at 9% until conversion, redemption or maturity and will mature on August 9, 2020. The debentures may be redeemed by the Company after January 1, 2014. Prior to maturity or redemption, the debentures can be converted into common stock at the election of the holder at $4.50 per share between July 2, 2013 and July 1, 2016 and $6.00 per share from July 2, 2016 until maturity or redemption. For the nine months ended September 30, 2013, $6.4 million of principal and $0.1 million of accrued interest had been converted to equity. At September 30, 2013 and December 31, 2012, the balance of the convertible debentures was $1.4 million and $7.9 million, respectively. | ||
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
STOCKHOLDERS' EQUITY [Abstract] | ' | ||||||||||||||||
STOCKHOLDERS' EQUITY | ' | ||||||||||||||||
7 | STOCKHOLDERS’ EQUITY | ||||||||||||||||
The following summarizes the changes in the unrealized gains and losses on the available-for –sale securities component of accumulated other comprehensive income, net of tax for the periods indicated: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||
Beginning balance | $ | (103 | ) | $ | 35 | $ | 35 | $ | 139 | ||||||||
Other comprehensive income before reclassifications | (119 | ) | 7 | (257 | ) | 2 | |||||||||||
Amounts reclassified from accumulated other comprehensive income | - | - | - | (99 | ) | ||||||||||||
Net current-period other comprehensive income | (119 | ) | 7 | (257 | ) | (97 | ) | ||||||||||
Ending Balance | $ | (222 | ) | $ | 42 | $ | (222 | ) | $ | 42 | |||||||
Preferred Stock | |||||||||||||||||
The Company’s Series A Preferred Stock pays cumulative dividends at a rate of 5% per year until December 19, 2013 then increases to a rate of 9% per year thereafter, but will be paid only if, as and when declared by the Company's Board of Directors subject to any regulatory approval requirements as may then be imposed. The Series A Preferred Stock has no maturity date and ranks senior to the Common Stock with respect to the payment of dividends and distributions and amounts payable upon liquidation, dissolution and winding up of the Company. | |||||||||||||||||
In December 2012, Treasury sold all of the Series A Preferred Stock to third party purchasers unaffiliated with the Company. The Company did not receive any proceeds from this auction, nor were any of the terms modified in connection with the sales. | |||||||||||||||||
On June 4, 2013, four members of the Board of Directors purchased 1.1 million shares of the Company’s Series A Cumulative Perpetual Preferred stock from private investors. | |||||||||||||||||
During the nine months ended September 30, 2013 and 2012, the Company recorded $0.6 million of dividends and $0.2 million in accretion of the discount on preferred stock. | |||||||||||||||||
The Company has paid all the quarterly dividends on such Series A Preferred Stock through February 15, 2012. While the Company declared and accrued for the subsequent six quarters of dividends, the Company’s request to the FRB was denied, as such, the Company has not paid the dividends. The aggregate amount of the dividends that would have been paid was $1.2 million. The deferral of the dividends on the Series A Preferred Stock is permitted under its terms and does not constitute an event of default. | |||||||||||||||||
Common Stock Warrant | |||||||||||||||||
The Warrant issued as part of the TARP provides for the purchase of up to 521,158 shares of the common stock, at an exercise price of $4.49 per share (“Warrant Shares”). The Warrant is immediately exercisable and has a 10-year term. The exercise price and the ultimate number of shares of common stock that may be issued under the Warrant are subject to certain anti-dilution adjustments, such as upon stock splits or distributions of securities or other assets to holders of the common stock, and upon certain issuances of the common stock at or below a specified price relative to the then current market price of the common stock. On June 6, 2013, the Treasury sold its warrant position to private investors. Pursuant to the Securities Purchase Agreement, the private investors have agreed not to exercise voting power with respect to any Warrant Shares. | |||||||||||||||||
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
EARNINGS PER SHARE [Abstract] | ' | ||||||||||||||||
EARNINGS PER SHARE | ' | ||||||||||||||||
8 | EARNINGS PER SHARE | ||||||||||||||||
The following table presents a reconciliation of basic earnings per share and diluted earnings per share: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(dollars in thousands, except per share amounts) | |||||||||||||||||
Net income | $ | 2,635 | $ | 613 | $ | 5,850 | $ | 841 | |||||||||
Less: dividends and accretion on preferred stock | 262 | 253 | 786 | 785 | |||||||||||||
Net income available to common stockholders | $ | 2,373 | $ | 360 | $ | 5,064 | $ | 56 | |||||||||
Add: debenture interest expense and costs, net of income taxes | 23 | - | 222 | - | |||||||||||||
Net income for diluted calculation of earnings per common share | $ | 2,396 | $ | 360 | $ | 5,286 | $ | 56 | |||||||||
Weighted average number of common shares outstanding - basic | 7,865 | 5,990 | 6,731 | 5,990 | |||||||||||||
Weighted average number of common shares outstanding - diluted | 8,395 | 8,233 | 8,883 | 8,233 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 0.3 | $ | 0.06 | $ | 0.75 | $ | 0.01 | |||||||||
Diluted | $ | 0.29 | $ | 0.06 | $ | 0.6 | $ | 0.01 | |||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended | ||
Sep. 30, 2013 | |||
SUMMARY OF SIGNIFICANT OF ACCOUNTING POLICIES [Abstract] | ' | ||
Nature of Operations | ' | ||
Nature of operations | |||
Community West Bancshares (“CWBC”), incorporated under the laws of the state of California, is a bank holding company providing full service banking through its wholly-owned subsidiary Community West Bank, N.A. (“CWB” or the “Bank”). These entities are collectively referred to herein as the “Company”. | |||
Basis of Presentation | ' | ||
Basis of presentation | |||
The accounting and reporting policies of the Company are in accordance with accounting principles generally accepted in the United States (“GAAP”) and conform to practices within the financial services industry. The accounts of the Company and its consolidated subsidiary are included in these Consolidated Financial Statements. All significant intercompany balances and transactions have been eliminated. | |||
Use of Estimates | ' | ||
Use of estimates | |||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for credit losses and fair value of other real estate owned. Although Management believes these estimates to be reasonably accurate, actual amounts may differ. In the opinion of Management, all adjustments considered necessary have been reflected in the financial statements during their preparation. | |||
Interim Financial Information | ' | ||
Interim financial information | |||
The accompanying unaudited consolidated financial statements as of September 30, 2013 and 2012 have been prepared in a condensed format, and therefore do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. These statements have been prepared on a basis that is substantially consistent with the accounting principles applied to our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2012. | |||
The information furnished in these interim statements reflects all adjustments which are, in the opinion of management, necessary for a fair statement of the results for each respective period presented. Such adjustments are of a normal recurring nature. The results of operations in the interim statements are not necessarily indicative of the results that may be expected for any other quarter or for the full year. The interim financial information should be read in conjunction with the Company’s audited consolidated financial statements. | |||
Reclassifications | ' | ||
Reclassifications | |||
Certain amounts in the consolidated financial statements as of December 31, 2012 and for the three and nine months ended September 30, 2012 have been reclassified to conform to the current presentation. The reclassifications have no effect on net income or stockholders’ equity as previously reported. | |||
Loans Held for Investment | ' | ||
Loans Held for Investment | |||
Loans are recognized at the principal amount outstanding, net of unearned income, loan participations and amounts charged off. Unearned income includes deferred loan origination fees reduced by loan origination costs. Unearned income on loans is amortized to interest income over the life of the related loan using the level yield method. | |||
Provision and Allowance for Loan Losses | ' | ||
Provision and Allowance for Loan Losses | |||
The Company maintains a detailed, systematic analysis and procedural discipline to determine the amount of the allowance for loan losses (“ALL”). The ALL is based on estimates and is intended to be appropriate to provide for probable losses inherent in the loan portfolio. This process involves deriving probable loss estimates that are based on migration analysis and historical loss rates, in addition to qualitative factors that are based on management’s judgment. The migration analysis and historical loss rate calculations are based on the annualized loss rates utilizing a twelve-quarter loss history. Migration analysis is utilized for the Commercial Real Estate (“CRE”), Commercial, Commercial Agriculture, Small Business Association (“SBA”), Home Equity Line of Credit (“HELOC”), Single Family Residential, and Consumer portfolios. The historical loss rate method is utilized primarily for the Manufactured Housing portfolio. The migration analysis takes into account the risk rating of loans that are charged off in each loan category. Loans that are considered Doubtful are typically charged off. The following is a description of the characteristics of loan ratings. Loan ratings are reviewed as part of our normal loan monitoring process, but, at a minimum, updated on an annual basis. | |||
Outstanding – This is the highest quality rating that is assigned to any loan in the portfolio. These loans are made to the highest quality borrowers with strong financial statements and unquestionable repayment sources. Collateral securing these types of credits are generally cash deposits in the bank or marketable securities held in custody. | |||
Good – Loans rated in this category are strong loans, underwritten well, that bear little risk of loss to the Company. Loans in this category are loans to quality borrowers with very good financial statements that present an identifiable strong primary source and good secondary source of repayment. Generally, these credits are well collateralized by good quality and liquid assets or low loan to value market real estate. | |||
Pass - Loans rated in this category are acceptable loans, appropriately underwritten, bearing an ordinary risk of loss to the Company. Loans in this category are loans to quality borrowers with financial statements presenting a good primary source as well as an adequate secondary source of repayment. In the case of individuals, borrowers with this rating are quality borrowers demonstrating a reasonable level of secure income, a net worth adequate to support the loan and presenting a good primary source as well as an adequate secondary source of repayment. | |||
Watch – Acceptable credit that requires a temporary increase in attention by management. This can be caused by declines in sales, margins, liquidity or working capital. Generally the primary weakness is lack of current financial statements and industry issues. | |||
Special Mention - A Special Mention loan has potential weaknesses that require management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution's credit position at some future date. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. | |||
Substandard - A Substandard loan is inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. These loans have a well-defined weakness or weaknesses that jeopardize full collection of amounts due. They are characterized by the distinct possibility that the Company will sustain some loss if the borrower’s deficiencies are not corrected. | |||
Doubtful - A loan classified Doubtful has all the weaknesses inherent in one classified Substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors, which may work to the advantage and strengthening of the loan, its classification as an estimated loss 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. | |||
Loss - Loans classified Loss are considered uncollectible and of such little value that their continuance as bankable loans is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this loan even though partial recovery may be realized in the future. Losses are taken in the period in which they are considered uncollectible. | |||
The Company’s ALL is maintained at a level believed appropriate by management to absorb known and inherent probable losses on existing loans. The allowance is charged for losses when management believes that full recovery on the loan is unlikely. The following is the Company’s policy regarding charging off loans. | |||
Commercial, CRE and SBA Loans | |||
Charge-offs on these loan categories are taken as soon as all or a portion of any loan balance is deemed to be uncollectible. A loan is considered impaired when, based on current information, it is probable that the Company will be unable to collect the scheduled payments of principal and/or interest under the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and/or interest payments. Loans that experience insignificant payment delays or payment shortfalls generally are not classified as impaired Generally, loan balances are charged-down to the fair value of the collateral, if, based on a current assessment of the value, an apparent deficiency exists. In the event there is no perceived equity, the loan is charged-off in full. Unsecured loans which are delinquent over 90 days are also charged-off in full. | |||
Single Family Real Estate, HELOC’s and Manufactured Housing Loans | |||
Consumer loans and residential mortgages secured by one-to-four family residential properties, HELOC and manufactured housing loans in which principal or interest is due and unpaid for 90 days, are evaluated for possible charge-off. Loan balances are charged-off to the fair value of the property, less estimated selling costs, if, based on a current appraisal, an apparent deficiency exists. In the event there is no perceived equity, the loan is generally fully charged-off. Other consumer loans which are not secured and unpaid over 90-120 days are charged-off in full. | |||
Consumer Loans | |||
All consumer loans (excluding real estate mortgages, home equity loans and savings secured loans) are charged-off or charged-down to net recoverable value before becoming 120 days or five payments delinquent. | |||
The ALL calculation for the different loan portfolios is as follows: | |||
· | Commercial Real Estate, Commercial, Commercial Agriculture, SBA, HELOC, Single Family Residential, and Consumer – Migration analysis combined with risk rating is used to determine the required allowance for all non-impaired loans. In addition, the migration results are adjusted based upon qualitative factors that affect this specific portfolio category. Reserves on impaired loans are determined based upon the individual characteristics of the loan. | ||
· | Manufactured Housing – The allowance is calculated on the basis of loss history and risk rating, which is primarily a function of delinquency. In addition, the loss results are adjusted based upon qualitative factors that affect this specific portfolio. | ||
The Company evaluates and individually assesses for impairment loans generally greater than $500,000, classified as substandard or doubtful in addition to loans either on nonaccrual, considered a troubled debt restructuring (“TDR”) or when other conditions exist which lead management to review for possible impairment. Measurement of impairment on impaired loans is determined on a loan-by-loan basis and in total establishes a specific reserve for impaired loans. The amount of impairment is determined by comparing the recorded investment in each loan with its value measured by one of three methods: | |||
· | The expected future cash flows are estimated and then discounted at the effective interest rate. | ||
· | The value of the underlying collateral net of selling costs. Selling costs are estimated based on industry standards, the Company’s actual experience or actual costs incurred as appropriate. When evaluating real estate collateral, the Company typically uses appraisals or valuations, no more than twelve months old at time of evaluation. When evaluating non-real estate collateral securing the loan, the Company will use audited financial statements or appraisals no more than twelve months old at time of evaluation. Additionally for both real estate and non-real estate collateral, the Company may use other sources to determine value as deemed appropriate. | ||
· | The loan’s observable market price. | ||
Interest income is not recognized on impaired loans except for limited circumstances in which a loan, although impaired, continues to perform in accordance with the loan contract and the borrower provides financial information to support maintaining the loan on accrual. | |||
The Company determines the appropriate ALL on a monthly basis. Any differences between estimated and actual observed losses from the prior month are reflected in the current period in determining the appropriate ALL determination and adjusted as deemed necessary. The review of the appropriateness of the allowance takes into consideration such factors as concentrations of credit, changes in the growth, size and composition of the loan portfolio, overall and individual portfolio quality, review of specific problem loans, collateral, guarantees and economic and environmental conditions that may affect the borrowers' ability to pay and/or the value of the underlying collateral. Additional factors considered include: geographic location of borrowers, changes in the Company’s product-specific credit policy and lending staff experience. These estimates depend on the outcome of future events and, therefore, contain inherent uncertainties. | |||
Another component of the ALL considers qualitative factors related to non-impaired loans. The qualitative portion of the allowance on each of the loan pools is based on the following factors: | |||
· | Concentrations of credit | ||
· | International risk | ||
· | Trends in volume, maturity, and composition | ||
· | Volume and trend in delinquency | ||
· | Economic conditions | ||
· | Outside exams | ||
· | Geographic distance | ||
· | Policy and changes | ||
· | Staff experience and ability | ||
Foreclosed Real Estate and Repossessed Assets | ' | ||
Foreclosed Real Estate and Repossessed Assets | |||
Foreclosed real estate and other repossessed assets are recorded at fair value at the time of foreclosure less estimated costs to sell. Any excess of loan balance over the fair value less estimated costs to sell of the other assets is charged-off against the allowance for loan losses. Any excess of the fair value less estimated costs to sell over the loan balance is recorded as a loan loss recovery to the extent of the loan loss previously charged-off against the allowance for loan losses; and, if greater, recorded as a gain on foreclosed assets. Subsequent to the legal ownership date, management periodically performs a new valuation and the asset is carried at the lower of carrying amount or fair value less estimated costs to sell. Operating expenses or income, and gains or losses on disposition of such properties, are recorded in current operations. | |||
Income Taxes | ' | ||
Income Taxes | |||
The Company uses the asset and liability method, which recognizes an asset or liability representing the tax effects of future deductible or taxable amounts that have been recognized in the consolidated financial statements. Due to tax regulations, certain items of income and expense are recognized in different periods for tax return purposes than for financial statement reporting. These items represent “temporary differences.” Deferred income taxes are recognized for the tax effect of temporary differences between the tax basis of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. A valuation allowance is established for deferred tax assets if, based on weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets may not be realized. | |||
Management evaluates the Company’s deferred tax asset for recoverability using a consistent approach which considers the relative impact of negative and positive evidence, including the Company’s historical profitability and projections of future taxable income. The Company is required to establish a valuation allowance for deferred tax asset and record a charge to income if Management determines, based on available evidence at the time the determination is made, that it is more likely than not that some portion or all of the deferred tax asset may not be realized. | |||
Net income represents positive evidence for the reduction of the deferred tax valuation allowance. The Company had net income of $5.9 million for the nine months ended September 30, 2013. The Company expects to be in a Federal tax expense position for 2013. A corresponding release of the valuation allowance equal to the current year tax expense of $1.4 million has been reflected at September 30, 2013. | |||
The Company is subject to the provisions of ASC 740, Income Taxes (ASC 740). ASC 740 prescribes a more-likely-than-not threshold for the financial statement recognition of uncertain tax positions. ASC 740 clarifies the accounting for income taxes by prescribing a minimum recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. On a quarterly basis, the Company evaluates income tax accruals in accordance with ASC 740 guidance on uncertain tax positions. | |||
Earnings Per Share | ' | ||
Earnings Per Share | |||
Basic earnings per common share is computed using the weighted average number of common shares outstanding for the period divided into the net income (loss) available to common shareholders. Diluted earnings per share include the effect of all dilutive potential common shares for the period. Potentially dilutive common shares include stock options, warrants and shares that could result from the conversion of debenture bonds. | |||
Recent Accounting Pronouncements | ' | ||
Recent Accounting Pronouncements | |||
In February 2013, the FASB issued guidance within ASU 2013-02 “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” The amendments in ASU 2013-02 to Topic 220, Comprehensive Income, update, supersede and replace the presentation requirements for reclassifications out of accumulated other comprehensive income in ASUs 2011-05 and 2011-12. The amendments require an entity to provide additional information about reclassifications out of accumulated other comprehensive income. The amendments are effective prospectively for reporting periods beginning after December 15, 2012. The adoption of ASU No. 2013-02 resulted in presentation changes to the Company’s consolidated income statements. The adoption of ASU No. 2013-02 had no impact on the Company’s balance sheets. | |||
In July 2013, the FASB issued guidance within ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” The amendments in ASU 2013-11 to Topic 740, Income Taxes, updates the presentation of an unrecognized tax benefit in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. However, to the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. ASU 2013-11 is effective for the Company on January 1, 2014 and is not to be applied prospectively, although early adoption and retrospective adoption are permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. | |||
INVESTMENT_SECURITIES_Tables
INVESTMENT SECURITIES (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||||||||||
INVESTMENT SECURITIES [Abstract] | ' | ||||||||||||||||||||||||||||||||||||||||
Amortized Cost and Estimated Fair Value of Investment Securities | ' | ||||||||||||||||||||||||||||||||||||||||
The amortized cost and estimated fair value of investment securities are as follows: | |||||||||||||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||||||||||||||
Cost | Gains | (Losses) | Value | ||||||||||||||||||||||||||||||||||||||
Securities available-for-sale | (in thousands) | ||||||||||||||||||||||||||||||||||||||||
U.S. government agency notes | $ | 5,994 | $ | - | $ | (318 | ) | $ | 5,676 | ||||||||||||||||||||||||||||||||
U.S. government agency mortgage backed securities ("MBS") | 62 | 3 | - | 65 | |||||||||||||||||||||||||||||||||||||
U.S. government agency collateralized mortgage obligations ("CMO") | 9,691 | 13 | (76 | ) | 9,628 | ||||||||||||||||||||||||||||||||||||
Equity securities: Farmer Mac class A stock | 66 | 1 | - | 67 | |||||||||||||||||||||||||||||||||||||
Total | $ | 15,813 | $ | 17 | $ | (394 | ) | $ | 15,436 | ||||||||||||||||||||||||||||||||
Securities held-to-maturity | |||||||||||||||||||||||||||||||||||||||||
U.S. government agency MBS | $ | 10,149 | $ | 469 | $ | (18 | ) | $ | 10,600 | ||||||||||||||||||||||||||||||||
Total | $ | 10,149 | $ | 469 | $ | (18 | ) | $ | 10,600 | ||||||||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||||||||||||||
Cost | Gains | (Losses) | Value | ||||||||||||||||||||||||||||||||||||||
Securities available-for-sale | (in thousands) | ||||||||||||||||||||||||||||||||||||||||
U.S. government agency notes | $ | 1,998 | $ | - | $ | (10 | ) | $ | 1,988 | ||||||||||||||||||||||||||||||||
U.S. government agency MBS | 163 | 8 | - | 171 | |||||||||||||||||||||||||||||||||||||
U.S. government agency CMO | 9,783 | 62 | - | 9,845 | |||||||||||||||||||||||||||||||||||||
Total | $ | 11,944 | $ | 70 | $ | (10 | ) | $ | 12,004 | ||||||||||||||||||||||||||||||||
Securities held-to-maturity | |||||||||||||||||||||||||||||||||||||||||
U.S. government agency MBS | $ | 12,036 | $ | 729 | $ | - | $ | 12,765 | |||||||||||||||||||||||||||||||||
Total | $ | 12,036 | $ | 729 | $ | - | $ | 12,765 | |||||||||||||||||||||||||||||||||
Maturity Periods and Weighted Average Yields of Investment Securities | ' | ||||||||||||||||||||||||||||||||||||||||
The maturity periods and weighted average yields of investment securities at September 30, 2013 are as follows: | |||||||||||||||||||||||||||||||||||||||||
Less than One Year | One to Five Years | Five to Ten Years | Over Ten Years | Total | |||||||||||||||||||||||||||||||||||||
Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | ||||||||||||||||||||||||||||||||
Securities available-for-sale | (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
U.S. government agency notes | $ | 5,676 | 1.2 | % | $ | - | - | $ | - | - | $ | - | - | $ | 5,676 | 1.2 | % | ||||||||||||||||||||||||
U.S. government agency MBS | - | - | - | - | 65 | 2.2 | % | - | - | 65 | 2.2 | % | |||||||||||||||||||||||||||||
U.S. government agency CMO | - | - | 2,427 | 0.7 | % | 4,355 | 0.5 | % | 2,846 | 0.8 | % | 9,628 | 0.7 | % | |||||||||||||||||||||||||||
Farmer Mac class A stock | - | - | - | - | - | - | - | - | 67 | - | |||||||||||||||||||||||||||||||
Total | $ | 5,676 | 1.2 | % | $ | 2,427 | 0.7 | % | $ | 4,420 | 0.6 | % | $ | 2,846 | 0.8 | % | $ | 15,436 | 0.9 | % | |||||||||||||||||||||
Securities held-to-maturity | |||||||||||||||||||||||||||||||||||||||||
U.S. government agency MBS | $ | - | - | $ | 2,366 | 4.7 | % | $ | 7,783 | 2.7 | % | $ | - | - | $ | 10,149 | 3.2 | % | |||||||||||||||||||||||
Total | $ | - | - | $ | 2,366 | 4.7 | % | $ | 7,783 | 2.7 | % | $ | - | - | $ | 10,149 | 3.2 | % | |||||||||||||||||||||||
The amortized cost and fair value of securities as of September 30, 2013 and December 31, 2012, by contractual maturities, are shown below: | |||||||||||||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||||||||
Amortized | Estimated | Amortized | Estimated | ||||||||||||||||||||||||||||||||||||||
Cost | Fair Value | Cost | Fair Value | ||||||||||||||||||||||||||||||||||||||
Securities available for sale | (in thousands) | ||||||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 5,994 | $ | 5,676 | $ | 4,923 | $ | 4,913 | |||||||||||||||||||||||||||||||||
After one year through five years | 2,418 | 2,427 | 6,858 | 6,920 | |||||||||||||||||||||||||||||||||||||
After five years through ten years | 4,425 | 4,420 | 163 | 171 | |||||||||||||||||||||||||||||||||||||
After ten years | 2,910 | 2,846 | - | - | |||||||||||||||||||||||||||||||||||||
Farmer Mac class A stock | 66 | 67 | - | - | |||||||||||||||||||||||||||||||||||||
$ | 15,813 | $ | 15,436 | $ | 11,944 | $ | 12,004 | ||||||||||||||||||||||||||||||||||
Securities held to maturity | |||||||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||||||||||||||
After one year through five years | 2,366 | 2,521 | 4,051 | 4,314 | |||||||||||||||||||||||||||||||||||||
After five years through ten years | 7,783 | 8,079 | 7,985 | 8,451 | |||||||||||||||||||||||||||||||||||||
After ten years | - | - | - | - | |||||||||||||||||||||||||||||||||||||
$ | 10,149 | $ | 10,600 | $ | 12,036 | $ | 12,765 | ||||||||||||||||||||||||||||||||||
Fair Value and Unrealized Losses of Securities in Unrealized Loss Position | ' | ||||||||||||||||||||||||||||||||||||||||
The following tables show all securities that are in an unrealized loss position: | |||||||||||||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||||||||||
Less Than Twelve Months | More Than Twelve Months | Total | |||||||||||||||||||||||||||||||||||||||
Gross | Gross | Gross | |||||||||||||||||||||||||||||||||||||||
Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | ||||||||||||||||||||||||||||||||||||
Losses | Value | Losses | Value | Losses | Value | ||||||||||||||||||||||||||||||||||||
Securities available-for-sale | (in thousands) | ||||||||||||||||||||||||||||||||||||||||
U.S. government agency notes | $ | 318 | $ | 5,676 | $ | - | $ | - | $ | 318 | $ | 5,676 | |||||||||||||||||||||||||||||
U.S. government agency CMO | 76 | 5,427 | $ | - | $ | - | 76 | 5,427 | |||||||||||||||||||||||||||||||||
$ | 394 | $ | 11,103 | $ | - | $ | - | $ | 394 | $ | 11,103 | ||||||||||||||||||||||||||||||
Securities held-to-maturity | |||||||||||||||||||||||||||||||||||||||||
U.S. Government-agency MBS | $ | 18 | $ | 1,080 | $ | - | $ | - | $ | 18 | $ | 1,080 | |||||||||||||||||||||||||||||
Total | $ | 18 | $ | 1,080 | $ | - | $ | - | $ | 18 | $ | 1,080 | |||||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||||||||||
Less Than Twelve Months | More Than Twelve Months | Total | |||||||||||||||||||||||||||||||||||||||
Gross | Gross | Gross | |||||||||||||||||||||||||||||||||||||||
Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | ||||||||||||||||||||||||||||||||||||
Losses | Value | Losses | Value | Losses | Value | ||||||||||||||||||||||||||||||||||||
Securities available-for-sale | (in thousands) | ||||||||||||||||||||||||||||||||||||||||
U.S. government agency notes | $ | 10 | $ | 1,988 | $ | - | $ | - | $ | 10 | $ | 1,988 | |||||||||||||||||||||||||||||
U.S. government agency CMO | 1 | 876 | 1 | 411 | 2 | 1,287 | |||||||||||||||||||||||||||||||||||
Total | $ | 11 | $ | 2,864 | $ | 1 | $ | 411 | $ | 12 | $ | 3,275 |
LOAN_SALES_AND_SERVICING_Table
LOAN SALES AND SERVICING (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
LOAN SALES AND SERVICING [Abstract] | ' | ||||||||||||||||
Schedule of Interest Only Strips Valued at Fair Value | ' | ||||||||||||||||
The following table presents the I/O strips activity as of the periods presented: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||
Beginning balance | $ | 394 | $ | 456 | $ | 426 | $ | 419 | |||||||||
Adjustment to fair value | (18 | ) | (5 | ) | (50 | ) | 32 | ||||||||||
Ending balance | $ | 376 | $ | 451 | $ | 376 | $ | 451 | |||||||||
Assumptions Used in Estimating the Fair Value of Interest Only Strips And Servicing Rights | ' | ||||||||||||||||
The key data assumptions used in estimating the fair value of the I/O strips as of the periods presented were as follows: | |||||||||||||||||
September 30, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Weighted-average constant prepayment rate | 5.17 | % | 5.66 | % | |||||||||||||
Weighted-average life (in years) | 6 | 6 | |||||||||||||||
Weighted-average discount rate | 12.74 | % | 12.94 | % | |||||||||||||
The key data and assumptions used in estimating the fair value of servicing rights as of the periods presented were as follows: | |||||||||||||||||
September 30, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Weighted-average constant prepayment rate | 4.62 | % | 5.19 | % | |||||||||||||
Weighted-average life (in years) | 9 | 9 | |||||||||||||||
Weighted-average discount rate | 13.48 | % | 13.93 | % | |||||||||||||
Sensitivity Analysis of Fair Value of Interest Only Strips And Servicing Rights | ' | ||||||||||||||||
A sensitivity analysis of the fair value of the I/O strips to changes in certain key assumptions is presented in the following table: | |||||||||||||||||
September 30, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
( in thousands) | |||||||||||||||||
Discount Rate | |||||||||||||||||
Increase in fair value from 100 basis points ("bps") decrease | $ | 11 | $ | 13 | |||||||||||||
Decrease in fair value from 100 bps increase | (10 | ) | (13 | ) | |||||||||||||
Constant Prepayment Rate | |||||||||||||||||
Increase in fair value from 10 percent decrease | 5 | 7 | |||||||||||||||
Decrease in fair value from 10 percent increase | (5 | ) | (7 | ) | |||||||||||||
A sensitivity analysis of the fair value of servicing rights to change in certain key assumptions is presented in the following table: | |||||||||||||||||
September 30, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
( in thousands) | |||||||||||||||||
Discount Rate | |||||||||||||||||
Increase in fair value from 100 basis points ("bps") decrease | $ | 12 | $ | 13 | |||||||||||||
Decrease in fair value from 100 bps increase | (11 | ) | (13 | ) | |||||||||||||
Constant Prepayment Rate | |||||||||||||||||
Increase in fair value from 10 percent decrease | 6 | 7 | |||||||||||||||
Decrease in fair value from 10 percent increase | (5 | ) | (7 | ) | |||||||||||||
Servicing Rights Accounted for Under the Amortization Method | ' | ||||||||||||||||
The following is a summary of the activity for servicing rights accounted for under the amortization method: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||
Beginning balance | $ | 326 | $ | 441 | $ | 383 | $ | 625 | |||||||||
Amortization | (28 | ) | (29 | ) | (85 | ) | (213 | ) | |||||||||
Ending balance | $ | 298 | $ | 412 | $ | 298 | $ | 412 | |||||||||
Servicing Rights Accounted for Under the Fair Value Method | ' | ||||||||||||||||
The following is a summary of the activity for servicing rights accounted for under the fair value method: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||
Beginning balance | $ | 304 | $ | 253 | $ | 348 | $ | - | |||||||||
Additions through loan sales | - | 72 | - | 349 | |||||||||||||
Adjustment to fair value | (4 | ) | 8 | (48 | ) | (16 | ) | ||||||||||
Ending balance | $ | 300 | $ | 333 | $ | 300 | $ | 333 |
LOANS_HELD_FOR_INVESTMENT_Tabl
LOANS HELD FOR INVESTMENT (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
LOANS HELD FOR INVESTMENT [Abstract] | ' | ||||||||||||||||||||||||||||||||
Portfolio of Loans Held for Investment | ' | ||||||||||||||||||||||||||||||||
The composition of the Company’s loans held for investment loan portfolio follows: | |||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Manufactured housing | $ | 172,126 | $ | 177,391 | |||||||||||||||||||||||||||||
Commercial real estate | 132,034 | 126,677 | |||||||||||||||||||||||||||||||
Commercial | 31,453 | 32,496 | |||||||||||||||||||||||||||||||
SBA | 25,753 | 30,688 | |||||||||||||||||||||||||||||||
HELOC | 15,616 | 17,852 | |||||||||||||||||||||||||||||||
Single family real estate | 10,007 | 9,939 | |||||||||||||||||||||||||||||||
Consumer | 186 | 232 | |||||||||||||||||||||||||||||||
387,175 | 395,275 | ||||||||||||||||||||||||||||||||
Allowance for loan losses | 11,654 | 14,464 | |||||||||||||||||||||||||||||||
Deferred costs, net | (92 | ) | (128 | ) | |||||||||||||||||||||||||||||
Discount on SBA loans | 355 | 432 | |||||||||||||||||||||||||||||||
Total loans held for investment, net | $ | 375,258 | $ | 380,507 | |||||||||||||||||||||||||||||
Current and Past Due Financing Receivable | ' | ||||||||||||||||||||||||||||||||
The following table presents the contractual aging of the recorded investment in past due held for investment loans by class of loans: | |||||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||
Recorded | |||||||||||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | Over 90 Days | Total | Over 90 Days | |||||||||||||||||||||||||||||
Current | Past Due | Past Due | Past Due | Past Due | Total | and Accruing | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Manufactured housing | $ | 171,923 | $ | 144 | $ | 59 | $ | - | $ | 203 | $ | 172,126 | $ | - | |||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Commercial real estate | 84,191 | - | - | - | - | 84,191 | - | ||||||||||||||||||||||||||
SBA 504 1st trust deed | 33,315 | - | - | 490 | 490 | 33,805 | - | ||||||||||||||||||||||||||
Land | 1,972 | - | - | - | - | 1,972 | - | ||||||||||||||||||||||||||
Construction | 12,066 | - | - | - | - | 12,066 | - | ||||||||||||||||||||||||||
Commercial | 27,952 | - | 3,501 | - | 3,501 | 31,453 | - | ||||||||||||||||||||||||||
SBA (1) | 24,953 | 98 | - | 702 | 800 | 25,753 | - | ||||||||||||||||||||||||||
HELOC | 15,616 | - | - | - | - | 15,616 | - | ||||||||||||||||||||||||||
Single family real estate | 9,739 | - | - | 268 | 268 | 10,007 | - | ||||||||||||||||||||||||||
Consumer | 186 | - | - | - | - | 186 | - | ||||||||||||||||||||||||||
Total | $ | 381,913 | $ | 242 | $ | 3,560 | $ | 1,460 | $ | 5,262 | $ | 387,175 | $ | - | |||||||||||||||||||
-1 | $0.7 million of the $0.8 million SBA loans past due are guaranteed by the SBA. | ||||||||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
Recorded | |||||||||||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | Over 90 Days | Total | Over 90 Days | |||||||||||||||||||||||||||||
Current | Past Due | Past Due | Past Due | Past Due | Total | and Accruing | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Manufactured housing | $ | 176,249 | $ | 467 | $ | 258 | $ | 417 | $ | 1,142 | $ | 177,391 | $ | - | |||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Commercial real estate | 81,682 | - | - | 830 | 830 | 82,512 | - | ||||||||||||||||||||||||||
SBA 504 1st trust deed | 34,502 | - | - | - | - | 34,502 | - | ||||||||||||||||||||||||||
Land | 4,556 | - | - | - | - | 4,556 | - | ||||||||||||||||||||||||||
Construction | 5,107 | - | - | - | - | 5,107 | - | ||||||||||||||||||||||||||
Commercial | 32,324 | 40 | - | 132 | 172 | 32,496 | - | ||||||||||||||||||||||||||
SBA (1) | 23,906 | 713 | - | 6,069 | 6,782 | 30,688 | - | ||||||||||||||||||||||||||
HELOC | 17,852 | - | - | - | - | 17,852 | - | ||||||||||||||||||||||||||
Single family real estate | 9,895 | 32 | - | 12 | 44 | 9,939 | 12 | ||||||||||||||||||||||||||
Consumer | 232 | - | - | - | - | 232 | - | ||||||||||||||||||||||||||
Total | $ | 386,305 | $ | 1,252 | $ | 258 | $ | 7,460 | $ | 8,970 | $ | 395,275 | $ | 12 | |||||||||||||||||||
-1 | $5.6 million of the $6.8 million SBA loans past due are guaranteed by the SBA. | ||||||||||||||||||||||||||||||||
Analysis of Allowance for Loan Losses for Loans Held for Investment | ' | ||||||||||||||||||||||||||||||||
The following table summarizes the changes in the allowance for loan losses: | |||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Beginning balance | $ | 12,456 | $ | 15,446 | $ | 14,464 | $ | 15,270 | |||||||||||||||||||||||||
Charge-offs | (692 | ) | (1,946 | ) | (1,959 | ) | (6,403 | ) | |||||||||||||||||||||||||
Recoveries | 1,453 | 262 | 1,992 | 1,012 | |||||||||||||||||||||||||||||
Net charge-offs | 761 | (1,684 | ) | 33 | (5,391 | ) | |||||||||||||||||||||||||||
Provision | (1,563 | ) | 1,293 | (2,843 | ) | 5,176 | |||||||||||||||||||||||||||
Ending balance | $ | 11,654 | $ | 15,055 | $ | 11,654 | $ | 15,055 | |||||||||||||||||||||||||
As of September 30, 2013 and December 31, 2012, the Company had reserves for credit losses on undisbursed loans of $0.1 million which were included in Other liabilities. | |||||||||||||||||||||||||||||||||
The following tables summarize the changes in the allowance for loan losses by portfolio type: | |||||||||||||||||||||||||||||||||
For the Three Months Ended September 30, | |||||||||||||||||||||||||||||||||
Manufactured | Commercial | Single Family | |||||||||||||||||||||||||||||||
Housing | Real Estate | Commercial | SBA | HELOC | Real Estate | Consumer | Total | ||||||||||||||||||||||||||
2013 | (in thousands) | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 5,691 | $ | 2,654 | $ | 1,529 | $ | 2,073 | $ | 311 | $ | 197 | $ | 1 | $ | 12,456 | |||||||||||||||||
Charge-offs | (379 | ) | (157 | ) | (32 | ) | (76 | ) | - | (48 | ) | - | (692 | ) | |||||||||||||||||||
Recoveries | 119 | 1,135 | 45 | 149 | 1 | 4 | - | 1,453 | |||||||||||||||||||||||||
Net charge-offs | (260 | ) | 978 | 13 | 73 | 1 | (44 | ) | - | 761 | |||||||||||||||||||||||
Provision | (80 | ) | (1,266 | ) | (365 | ) | 132 | (32 | ) | 48 | - | (1,563 | ) | ||||||||||||||||||||
Ending balance | $ | 5,351 | $ | 2,366 | $ | 1,177 | $ | 2,278 | $ | 280 | $ | 201 | $ | 1 | $ | 11,654 | |||||||||||||||||
2012 | |||||||||||||||||||||||||||||||||
Beginning balance | $ | 5,187 | $ | 3,175 | $ | 3,064 | $ | 3,148 | $ | 671 | $ | 199 | $ | 2 | $ | 15,446 | |||||||||||||||||
Charge-offs | (1,212 | ) | (396 | ) | - | (241 | ) | (74 | ) | (23 | ) | - | (1,946 | ) | |||||||||||||||||||
Recoveries | 3 | 31 | 81 | 140 | - | 2 | 5 | 262 | |||||||||||||||||||||||||
Net charge-offs | (1,209 | ) | (365 | ) | 81 | (101 | ) | (74 | ) | (21 | ) | 5 | (1,684 | ) | |||||||||||||||||||
Provision | 2,022 | 151 | (521 | ) | (238 | ) | (111 | ) | (5 | ) | (5 | ) | 1,293 | ||||||||||||||||||||
Ending balance | $ | 6,000 | $ | 2,961 | $ | 2,624 | $ | 2,809 | $ | 486 | $ | 173 | $ | 2 | $ | 15,055 | |||||||||||||||||
For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||
Manufactured | Commercial | Single Family | |||||||||||||||||||||||||||||||
Housing | Real Estate | Commercial | SBA | HELOC | Real Estate | Consumer | Total | ||||||||||||||||||||||||||
2013 | (in thousands) | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 5,945 | $ | 2,627 | $ | 2,325 | $ | 2,733 | $ | 634 | $ | 198 | $ | 2 | $ | 14,464 | |||||||||||||||||
Charge-offs | (1,088 | ) | (161 | ) | (149 | ) | (355 | ) | (39 | ) | (136 | ) | (31 | ) | (1,959 | ) | |||||||||||||||||
Recoveries | 248 | 1,185 | 154 | 396 | 2 | 7 | - | 1,992 | |||||||||||||||||||||||||
Net charge-offs | (840 | ) | 1,024 | 5 | 41 | (37 | ) | (129 | ) | (31 | ) | 33 | |||||||||||||||||||||
Provision | 246 | (1,285 | ) | (1,153 | ) | (496 | ) | (317 | ) | 132 | 30 | (2,843 | ) | ||||||||||||||||||||
Ending balance | $ | 5,351 | $ | 2,366 | $ | 1,177 | $ | 2,278 | $ | 280 | $ | 201 | $ | 1 | $ | 11,654 | |||||||||||||||||
2012 | |||||||||||||||||||||||||||||||||
Beginning balance | $ | 4,629 | $ | 3,528 | $ | 2,734 | $ | 3,877 | $ | 349 | $ | 150 | $ | 3 | $ | 15,270 | |||||||||||||||||
Charge-offs | (3,115 | ) | (1,687 | ) | (656 | ) | (600 | ) | (76 | ) | (261 | ) | (8 | ) | (6,403 | ) | |||||||||||||||||
Recoveries | 52 | 32 | 118 | 750 | 50 | 5 | 5 | 1,012 | |||||||||||||||||||||||||
Net charge-offs | (3,063 | ) | (1,655 | ) | (538 | ) | 150 | (26 | ) | (256 | ) | (3 | ) | (5,391 | ) | ||||||||||||||||||
Provision | 4,434 | 1,088 | 428 | (1,218 | ) | 163 | 279 | 2 | 5,176 | ||||||||||||||||||||||||
Ending balance | $ | 6,000 | $ | 2,961 | $ | 2,624 | $ | 2,809 | $ | 486 | $ | 173 | $ | 2 | $ | 15,055 | |||||||||||||||||
The following tables present impairment method information related to loans and allowance for loan losses by loan portfolio segment: | |||||||||||||||||||||||||||||||||
Manufactured | Commercial | Single Family | Total | ||||||||||||||||||||||||||||||
Housing | Real Estate | Commercial | SBA | HELOC | Real Estate | Consumer | Loans | ||||||||||||||||||||||||||
Loans Held for Investment as of September 30, 2013: | (in thousands) | ||||||||||||||||||||||||||||||||
Recorded Investment: | |||||||||||||||||||||||||||||||||
Impaired loans with an allowance recorded | $ | 5,726 | $ | 1,480 | $ | 471 | $ | 1,471 | $ | 224 | $ | 77 | $ | - | $ | 9,449 | |||||||||||||||||
Impaired loans with no allowance recorded | 3,023 | 1,970 | 3,548 | 100 | 298 | 693 | - | 9,632 | |||||||||||||||||||||||||
Total loans individually evaluated for impairment | 8,749 | 3,450 | 4,019 | 1,571 | 522 | 770 | - | 19,081 | |||||||||||||||||||||||||
Loans collectively evaluated for impairment | 163,377 | 128,584 | 27,434 | 24,182 | 15,094 | 9,237 | 186 | 368,094 | |||||||||||||||||||||||||
Total loans held for investment | $ | 172,126 | $ | 132,034 | $ | 31,453 | $ | 25,753 | $ | 15,616 | $ | 10,007 | $ | 186 | $ | 387,175 | |||||||||||||||||
Unpaid Principal Balance | |||||||||||||||||||||||||||||||||
Impaired loans with an allowance recorded | $ | 6,121 | $ | 1,497 | $ | 813 | $ | 6,477 | $ | 231 | $ | 77 | $ | - | $ | 15,216 | |||||||||||||||||
Impaired loans with no allowance recorded | 4,900 | 3,974 | 3,558 | 1,878 | 300 | 786 | - | 15,396 | |||||||||||||||||||||||||
Total loans individually evaluated for impairment | 11,021 | 5,471 | 4,371 | 8,355 | 531 | 863 | - | 30,612 | |||||||||||||||||||||||||
Loans collectively evaluated for impairment | 163,377 | 128,584 | 27,434 | 24,182 | 15,094 | 9,237 | 186 | 368,094 | |||||||||||||||||||||||||
Total loans held for investment | $ | 174,398 | $ | 134,055 | $ | 31,805 | $ | 32,537 | $ | 15,625 | $ | 10,100 | $ | 186 | $ | 398,706 | |||||||||||||||||
Related Allowance for Credit Losses | |||||||||||||||||||||||||||||||||
Impaired loans with an allowance recorded | $ | 777 | $ | 133 | $ | 68 | $ | 190 | $ | 24 | $ | 10 | $ | - | $ | 1,202 | |||||||||||||||||
Impaired loans with no allowance recorded | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Total loans individually evaluated for impairment | 777 | 133 | 68 | 190 | 24 | 10 | - | 1,202 | |||||||||||||||||||||||||
Loans collectively evaluated for impairment | 4,574 | 2,233 | 1,109 | 2,088 | 256 | 191 | 1 | 10,452 | |||||||||||||||||||||||||
Total loans held for investment | $ | 5,351 | $ | 2,366 | $ | 1,177 | $ | 2,278 | $ | 280 | $ | 201 | $ | 1 | $ | 11,654 | |||||||||||||||||
Manufactured | Commercial | Single Family | Total | ||||||||||||||||||||||||||||||
Housing | Real Estate | Commercial | SBA | HELOC | Real Estate | Consumer | Loans | ||||||||||||||||||||||||||
Loans Held for Investment as of December 31, 2012: | (in thousands) | ||||||||||||||||||||||||||||||||
Recorded Investment: | |||||||||||||||||||||||||||||||||
Impaired loans with an allowance recorded | $ | 5,748 | $ | 519 | $ | 5,044 | $ | 503 | $ | 269 | $ | 80 | $ | - | $ | 12,163 | |||||||||||||||||
Impaired loans with no allowance recorded | 4,687 | 11,389 | 49 | 1,238 | - | 121 | - | 17,484 | |||||||||||||||||||||||||
Total loans individually evaluated for impairment | 10,435 | 11,908 | 5,093 | 1,741 | 269 | 201 | - | 29,647 | |||||||||||||||||||||||||
Loans collectively evaluated for impairment | 166,956 | 114,769 | 27,403 | 28,947 | 17,583 | 9,738 | 232 | 365,628 | |||||||||||||||||||||||||
Total loans held for investment | $ | 177,391 | $ | 126,677 | $ | 32,496 | $ | 30,688 | $ | 17,852 | $ | 9,939 | $ | 232 | $ | 395,275 | |||||||||||||||||
Unpaid Principal Balance | |||||||||||||||||||||||||||||||||
Impaired loans with an allowance recorded | $ | 5,922 | $ | 570 | $ | 5,430 | $ | 2,536 | $ | 271 | $ | 80 | $ | - | $ | 14,809 | |||||||||||||||||
Impaired loans with no allowance recorded | 6,828 | 17,624 | 50 | 6,736 | - | 197 | - | 31,435 | |||||||||||||||||||||||||
Total loans individually evaluated for impairment | 12,750 | 18,194 | 5,480 | 9,272 | 271 | 277 | - | 46,244 | |||||||||||||||||||||||||
Loans collectively evaluated for impairment | 166,956 | 114,769 | 27,403 | 28,947 | 17,583 | 9,738 | 232 | 365,628 | |||||||||||||||||||||||||
Total loans held for investment | $ | 179,706 | $ | 132,963 | $ | 32,883 | $ | 38,219 | $ | 17,854 | $ | 10,015 | $ | 232 | $ | 411,872 | |||||||||||||||||
Related Allowance for Credit Losses | |||||||||||||||||||||||||||||||||
Impaired loans with an allowance recorded | $ | 1,103 | $ | 4 | $ | 569 | $ | 58 | $ | 49 | $ | 11 | $ | - | $ | 1,794 | |||||||||||||||||
Impaired loans with no allowance recorded | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Total loans individually evaluated for impairment | 1,103 | 4 | 569 | 58 | 49 | 11 | - | 1,794 | |||||||||||||||||||||||||
Loans collectively evaluated for impairment | 4,842 | 2,623 | 1,756 | 2,675 | 585 | 187 | 2 | 12,670 | |||||||||||||||||||||||||
Total loans held for investment | $ | 5,945 | $ | 2,627 | $ | 2,325 | $ | 2,733 | $ | 634 | $ | 198 | $ | 2 | $ | 14,464 | |||||||||||||||||
Schedule of Impaired Loans by Loan Class | ' | ||||||||||||||||||||||||||||||||
The following tables summarize impaired loans by class of loans: | |||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Manufactured housing | $ | 8,749 | $ | 10,435 | |||||||||||||||||||||||||||||
Commercial real estate : | |||||||||||||||||||||||||||||||||
Commercial real estate | 2,681 | 10,615 | |||||||||||||||||||||||||||||||
SBA 504 1st trust deed | 769 | 1,293 | |||||||||||||||||||||||||||||||
Land | - | - | |||||||||||||||||||||||||||||||
Construction | - | - | |||||||||||||||||||||||||||||||
Commercial | 4,019 | 5,093 | |||||||||||||||||||||||||||||||
SBA | 1,571 | 1,741 | |||||||||||||||||||||||||||||||
HELOC | 522 | 269 | |||||||||||||||||||||||||||||||
Single family real estate | 770 | 201 | |||||||||||||||||||||||||||||||
Consumer | - | - | |||||||||||||||||||||||||||||||
Total | $ | 19,081 | $ | 29,647 | |||||||||||||||||||||||||||||
The following tables summarize average investment in impaired loans by class of loans and the related interest income recognized as of and for the periods ended: | |||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Average Investment | Interest | Average Investment | Interest | ||||||||||||||||||||||||||||||
in Impaired Loans | Income | in Impaired Loans | Income | ||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Manufactured housing | $ | 9,454 | $ | 85 | $ | 11,050 | $ | 110 | |||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Commercial real estate | 7,811 | 10 | 16,399 | 99 | |||||||||||||||||||||||||||||
SBA 504 1st | 1,089 | 4 | 2,042 | 16 | |||||||||||||||||||||||||||||
Land | - | - | - | - | |||||||||||||||||||||||||||||
Construction | - | - | 3,189 | - | |||||||||||||||||||||||||||||
Commercial | 2,789 | 142 | 5,442 | 70 | |||||||||||||||||||||||||||||
SBA | 1,790 | 34 | 1,696 | 69 | |||||||||||||||||||||||||||||
HELOC | 397 | 3 | 383 | 7 | |||||||||||||||||||||||||||||
Single family real estate | 747 | 1 | 251 | 3 | |||||||||||||||||||||||||||||
Consumer | - | - | 2 | - | |||||||||||||||||||||||||||||
Total | $ | 24,077 | $ | 279 | $ | 40,454 | $ | 374 | |||||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Average Investment | Interest | Average Investment | Interest | ||||||||||||||||||||||||||||||
in Impaired Loans | Income | in Impaired Loans | Income | ||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Manufactured housing | $ | 9,528 | $ | 182 | $ | 7,782 | $ | 214 | |||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Commercial real estate | 8,875 | 94 | 19,071 | 315 | |||||||||||||||||||||||||||||
SBA 504 1st | 1,163 | 28 | 4,496 | 116 | |||||||||||||||||||||||||||||
Land | - | - | - | - | |||||||||||||||||||||||||||||
Construction | - | - | 5,937 | 108 | |||||||||||||||||||||||||||||
Commercial | 3,831 | 208 | 5,591 | 235 | |||||||||||||||||||||||||||||
SBA | 1,432 | 136 | 1,796 | 130 | |||||||||||||||||||||||||||||
HELOC | 313 | 3 | 248 | 7 | |||||||||||||||||||||||||||||
Single family real estate | 452 | 10 | 350 | 10 | |||||||||||||||||||||||||||||
Consumer | - | - | 7 | - | |||||||||||||||||||||||||||||
Total | $ | 25,594 | $ | 661 | $ | 45,278 | $ | 1,135 | |||||||||||||||||||||||||
Recorded Investment in Certain Loans | ' | ||||||||||||||||||||||||||||||||
The following table reflects the recorded investment in certain types of loans at the periods indicated: | |||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Nonaccrual loans | $ | 21,055 | $ | 29,643 | |||||||||||||||||||||||||||||
SBA guaranteed portion of loans included above | (5,778 | ) | (7,218 | ) | |||||||||||||||||||||||||||||
Total nonaccrual loans, net | $ | 15,277 | $ | 22,425 | |||||||||||||||||||||||||||||
Troubled debt restructured loans, gross | $ | 12,288 | $ | 19,931 | |||||||||||||||||||||||||||||
Loans 30 through 89 days past due with interest accruing | $ | 74 | $ | 521 | |||||||||||||||||||||||||||||
Allowance for loan losses to gross loans held for investment | 3.01 | % | 3.66 | % | |||||||||||||||||||||||||||||
Composition of Net Nonaccrual Loans | ' | ||||||||||||||||||||||||||||||||
The following table presents the composition of nonaccrual loans, net of SBA guarantee, by class of loans: | |||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Manufactured housing | $ | 5,327 | $ | 7,542 | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Commercial real estate | 2,681 | 10,615 | |||||||||||||||||||||||||||||||
SBA 504 1st | 490 | 490 | |||||||||||||||||||||||||||||||
Land | - | - | |||||||||||||||||||||||||||||||
Construction | - | - | |||||||||||||||||||||||||||||||
Commercial | 4,019 | 1,945 | |||||||||||||||||||||||||||||||
SBA | 1,545 | 1,442 | |||||||||||||||||||||||||||||||
HELOC | 522 | 269 | |||||||||||||||||||||||||||||||
Single family real estate | 693 | 121 | |||||||||||||||||||||||||||||||
Consumer | - | 1 | |||||||||||||||||||||||||||||||
Total | $ | 15,277 | $ | 22,425 | |||||||||||||||||||||||||||||
Schedule of Loans by Rating | ' | ||||||||||||||||||||||||||||||||
The following tables present gross loans by risk rating: | |||||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||
Special | |||||||||||||||||||||||||||||||||
Pass | Mention | Substandard | Doubtful | Total | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Manufactured housing | $ | 159,086 | $ | - | $ | 13,040 | $ | - | $ | 172,126 | |||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Commercial real estate | 72,511 | 4,301 | 7,379 | - | 84,191 | ||||||||||||||||||||||||||||
SBA 504 1st trust deed | 32,205 | 253 | 1,347 | - | 33,805 | ||||||||||||||||||||||||||||
Land | 1,149 | 823 | - | - | 1,972 | ||||||||||||||||||||||||||||
Construction | 12,066 | - | - | - | 12,066 | ||||||||||||||||||||||||||||
Commercial | 25,583 | 672 | 5,169 | 29 | 31,453 | ||||||||||||||||||||||||||||
SBA | 15,193 | 59 | 2,343 | 14 | 17,609 | ||||||||||||||||||||||||||||
HELOC | 6,963 | 3,119 | 5,534 | - | 15,616 | ||||||||||||||||||||||||||||
Single family real estate | 9,064 | - | 943 | - | 10,007 | ||||||||||||||||||||||||||||
Consumer | 186 | - | - | - | 186 | ||||||||||||||||||||||||||||
Total, net | $ | 334,006 | $ | 9,227 | $ | 35,755 | $ | 43 | $ | 379,031 | |||||||||||||||||||||||
SBA guarantee | - | - | 7,324 | 820 | 8,144 | ||||||||||||||||||||||||||||
Total | $ | 334,006 | $ | 9,227 | $ | 43,079 | $ | 863 | $ | 387,175 | |||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
Special | |||||||||||||||||||||||||||||||||
Pass | Mention | Substandard | Doubtful | Total | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Manufactured housing | $ | 164,269 | $ | - | $ | 13,122 | $ | - | $ | 177,391 | |||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Commercial real estate | 63,793 | 6,478 | 12,241 | - | 82,512 | ||||||||||||||||||||||||||||
SBA 504 1st trust deed | 31,385 | 1,461 | 1,656 | - | 34,502 | ||||||||||||||||||||||||||||
Land | 3,333 | 300 | 923 | - | 4,556 | ||||||||||||||||||||||||||||
Construction | 5,107 | - | - | - | 5,107 | ||||||||||||||||||||||||||||
Commercial | 27,015 | 997 | 4,413 | 71 | 32,496 | ||||||||||||||||||||||||||||
SBA | 16,302 | 1,514 | 2,504 | 54 | 20,374 | ||||||||||||||||||||||||||||
HELOC | 9,432 | 245 | 8,175 | - | 17,852 | ||||||||||||||||||||||||||||
Single family real estate | 9,622 | - | 317 | - | 9,939 | ||||||||||||||||||||||||||||
Consumer | 231 | - | 1 | - | 232 | ||||||||||||||||||||||||||||
Total, net | $ | 330,489 | $ | 10,995 | $ | 43,352 | $ | 125 | $ | 384,961 | |||||||||||||||||||||||
SBA guarantee | - | - | 7,551 | 2,763 | 10,314 | ||||||||||||||||||||||||||||
Total | $ | 330,489 | $ | 10,995 | $ | 50,903 | $ | 2,888 | $ | 395,275 | |||||||||||||||||||||||
Troubled Debt Restructurings | ' | ||||||||||||||||||||||||||||||||
The following tables summarize the financial effects of TDR loans by loan class for the periods presented: | |||||||||||||||||||||||||||||||||
For the Three Months Ended September 30, 2013 | |||||||||||||||||||||||||||||||||
Effect on | Balance of | Average Rate | Balance of | Average | |||||||||||||||||||||||||||||
Allowance for | Loans with | Reduction | Loans with | Extension | |||||||||||||||||||||||||||||
Balance | Loan Losses | Rate Reduction | (basis points) | Term Extension | (in months) | ||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
Manufactured housing | $ | 265 | $ | 15 | $ | 265 | 225 | $ | 265 | 112 | |||||||||||||||||||||||
Commercial real estate | - | - | - | - | - | - | |||||||||||||||||||||||||||
Construction | - | - | - | - | - | - | |||||||||||||||||||||||||||
Commercial | 3,501 | 221 | - | - | 3,501 | 31 | |||||||||||||||||||||||||||
SBA | - | - | - | - | - | - | |||||||||||||||||||||||||||
HELOC | - | - | - | - | - | - | |||||||||||||||||||||||||||
Single family real estate | 147 | 12 | 146 | 100 | 147 | 12 | |||||||||||||||||||||||||||
Total | $ | 3,913 | $ | 248 | $ | 411 | 200 | $ | 3,913 | 65 | |||||||||||||||||||||||
For the Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||||||
Effect on | Balance of | Average Rate | Balance of | Average | |||||||||||||||||||||||||||||
Allowance for | Loans with | Reduction | Loans with | Extension | |||||||||||||||||||||||||||||
Balance | Loan Losses | Rate Reduction | (basis points) | Term Extension | (in months) | ||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
Manufactured housing | $ | 1,405 | $ | 170 | $ | 444 | 171 | $ | 1,405 | 135 | |||||||||||||||||||||||
Commercial real estate | 655 | 45 | - | - | 655 | 8 | |||||||||||||||||||||||||||
Construction | - | - | - | - | - | - | |||||||||||||||||||||||||||
Commercial | 4,011 | 256 | - | - | 4,011 | 41 | |||||||||||||||||||||||||||
SBA | 87 | 16 | - | - | 87 | 4 | |||||||||||||||||||||||||||
HELOC | - | - | - | - | - | - | |||||||||||||||||||||||||||
Single family real estate | 147 | 12 | 147 | 100 | 147 | 12 | |||||||||||||||||||||||||||
Total | $ | 6,305 | $ | 499 | $ | 591 | 163 | $ | 6,305 | 96 | |||||||||||||||||||||||
For the Three Months Ended September 30, 2012 | |||||||||||||||||||||||||||||||||
Effect on | Balance of | Average Rate | Balance of | Average | |||||||||||||||||||||||||||||
Allowance for | Loans with | Reduction | Loans with | Extension | |||||||||||||||||||||||||||||
Balance | Loan Losses | Rate Reduction | (basis points) | Term Extension | (in months) | ||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
Manufactured housing | $ | 1,474 | $ | 341 | $ | - | - | $ | 1,474 | 171 | |||||||||||||||||||||||
Commercial real estate | - | - | - | - | - | - | |||||||||||||||||||||||||||
Construction | - | - | - | - | - | - | |||||||||||||||||||||||||||
Commercial | 289 | 30 | - | - | 289 | 49 | |||||||||||||||||||||||||||
SBA | 74 | 17 | - | - | 74 | 103 | |||||||||||||||||||||||||||
HELOC | - | - | - | - | - | - | |||||||||||||||||||||||||||
Single family real estate | - | - | - | - | - | - | |||||||||||||||||||||||||||
Total | $ | 1,837 | $ | 388 | $ | - | - | $ | 1,837 | 161 | |||||||||||||||||||||||
For the Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||||||||
Effect on | Balance of | Average Rate | Balance of | Average | |||||||||||||||||||||||||||||
Allowance for | Loans with | Reduction | Loans with | Extension | |||||||||||||||||||||||||||||
Balance | Loan Losses | Rate Reduction | (basis points) | Term Extension | (in months) | ||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
Manufactured housing | $ | 5,715 | $ | 888 | $ | 294 | 325 | $ | 5,715 | 159 | |||||||||||||||||||||||
Commercial real estate | 3,590 | 292 | - | - | 3,590 | 56 | |||||||||||||||||||||||||||
Construction | 3,147 | 315 | 3,146 | 300 | 3,147 | 15 | |||||||||||||||||||||||||||
Commercial | 1,021 | 139 | - | - | 1,021 | 55 | |||||||||||||||||||||||||||
SBA | 411 | 56 | - | - | 411 | 78 | |||||||||||||||||||||||||||
HELOC | - | - | - | - | - | - | |||||||||||||||||||||||||||
Single family real estate | 77 | 2 | - | - | 77 | 4 | |||||||||||||||||||||||||||
Total | $ | 13,961 | $ | 1,692 | $ | 3,440 | 320 | $ | 13,961 | 144 | |||||||||||||||||||||||
The following tables present TDR's by class that occurred in the past twelve months for which there was a payment default during the period: | |||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Effect on | Effect on | ||||||||||||||||||||||||||||||||
Allowance for | Number | Allowance for | Number | ||||||||||||||||||||||||||||||
Balance | Loan Losses | of Loans | Balance | Loan Losses | of Loans | ||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
Manufactured housing | $ | - | $ | - | - | $ | 124 | $ | 4 | 3 | |||||||||||||||||||||||
Total | $ | - | $ | - | - | $ | 124 | $ | 4 | 3 | |||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Effect on | Effect on | ||||||||||||||||||||||||||||||||
Allowance for | Number | Allowance for | Number | ||||||||||||||||||||||||||||||
Balance | Loan Losses | of Loans | Balance | Loan Losses | of Loans | ||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
Manufactured housing | $ | 375 | $ | 9 | 5 | $ | 124 | $ | 4 | 3 | |||||||||||||||||||||||
SBA 504 1st | - | - | - | 173 | - | 1 | |||||||||||||||||||||||||||
SBA | - | - | - | 68 | - | 1 | |||||||||||||||||||||||||||
Total | $ | 375 | $ | 9 | 5 | $ | 365 | $ | 4 | 5 |
FAIR_VALUE_MEASUREMENT_Tables
FAIR VALUE MEASUREMENT (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
FAIR VALUE MEASUREMENT [Abstract] | ' | ||||||||||||||||||||
Summary of Fair Value Measurements of Assets Measured on a Recurring Basis | ' | ||||||||||||||||||||
The following tables summarize the fair value of assets measured on a recurring basis: | |||||||||||||||||||||
Fair Value Measurements at the End of the Reporting Period Using: | |||||||||||||||||||||
Quoted Prices | |||||||||||||||||||||
in Active | Significant | ||||||||||||||||||||
Markets for | Other | Significant | |||||||||||||||||||
Identical | Observable | Unobservable | |||||||||||||||||||
Assets | Inputs | Inputs | Fair | ||||||||||||||||||
30-Sep-13 | (Level 1) | (Level 2) | (Level 3) | Value | |||||||||||||||||
Assets: | (in thousands) | ||||||||||||||||||||
Investment securities available-for-sale | $ | 67 | $ | 15,369 | $ | - | $ | 15,436 | |||||||||||||
Interest only strips | - | - | 376 | 376 | |||||||||||||||||
Servicing assets | - | - | 300 | 300 | |||||||||||||||||
$ | 67 | $ | 15,369 | $ | 676 | $ | 16,112 | ||||||||||||||
Fair Value Measurements at the End of the Reporting Period Using: | |||||||||||||||||||||
Quoted Prices | |||||||||||||||||||||
in Active | Significant | ||||||||||||||||||||
Markets for | Other | Significant | |||||||||||||||||||
Identical | Observable | Unobservable | |||||||||||||||||||
Assets | Inputs | Inputs | Fair | ||||||||||||||||||
31-Dec-12 | (Level 1) | (Level 2) | (Level 3) | Value | |||||||||||||||||
Assets: | (in thousands) | ||||||||||||||||||||
Investment securities available-for-sale | $ | - | $ | 12,004 | $ | - | $ | 12,004 | |||||||||||||
Interest only strips | - | - | 426 | 426 | |||||||||||||||||
Servicing assets | - | - | 348 | 348 | |||||||||||||||||
$ | - | $ | 12,004 | $ | 774 | $ | 12,778 | ||||||||||||||
Summary of Fair Value Measurements of Assets Measured on a Non-recurring Basis | ' | ||||||||||||||||||||
The following summarizes the fair value measurements of assets measured on a non-recurring basis: | |||||||||||||||||||||
Fair Value Measurements at the End of the Reporting Period Using | |||||||||||||||||||||
Quoted Prices | |||||||||||||||||||||
in Active | Active | ||||||||||||||||||||
Markets for | Markets for | Unobservable | |||||||||||||||||||
Identical Assets | Similar Assets | Inputs | |||||||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
As of September 30, 2013: | |||||||||||||||||||||
Impaired loans | $ | 17,879 | $ | - | $ | 9,632 | $ | 8,247 | |||||||||||||
Loans held for sale | 68,405 | - | 68,405 | - | |||||||||||||||||
Foreclosed real estate and repossesed assets | 3,975 | - | 3,975 | - | |||||||||||||||||
$ | 90,259 | $ | - | $ | 82,012 | $ | 8,247 | ||||||||||||||
As of December 31, 2012: | |||||||||||||||||||||
Impaired loans | $ | 27,853 | $ | - | $ | 17,430 | $ | 10,423 | |||||||||||||
Loans held for sale | 72,514 | - | 72,514 | - | |||||||||||||||||
Foreclosed real estate and repossesed assets | 1,889 | - | 1,889 | - | |||||||||||||||||
$ | 102,256 | $ | - | $ | 91,833 | $ | 10,423 | ||||||||||||||
Estimated fair values and carrying values of financial instruments | ' | ||||||||||||||||||||
The estimated fair value of the Company’s financial instruments is as follows: | |||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||
Carrying | Fair Value | ||||||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Financial assets: | (in thousands) | ||||||||||||||||||||
Cash and cash equivalents | $ | 42,570 | $ | 42,570 | $ | - | $ | - | $ | 42,570 | |||||||||||
Interest-bearing deposits in other financial institutions | 3,282 | 3,282 | - | - | 3,282 | ||||||||||||||||
FRB and FHLB stock | 3,654 | - | 3,654 | 3,654 | |||||||||||||||||
Investment securities | 25,585 | 67 | 25,969 | - | 26,036 | ||||||||||||||||
Loans, net | 439,445 | - | 442,166 | 8,247 | 450,413 | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | 325,616 | - | 325,616 | - | 325,616 | ||||||||||||||||
Time deposits | 105,475 | - | 105,764 | - | 105,764 | ||||||||||||||||
Other borrowings | 35,442 | - | 36,206 | - | 36,206 | ||||||||||||||||
31-Dec-12 | |||||||||||||||||||||
Carrying | Fair Value | ||||||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Financial assets: | (in thousands) | ||||||||||||||||||||
Cash and cash equivalents | $ | 27,891 | $ | 27,891 | $ | - | $ | - | $ | 27,891 | |||||||||||
Interest-bearing deposits in other financial institutions | 3,653 | 3,653 | - | - | 3,653 | ||||||||||||||||
FRB and FHLB stock | 4,656 | - | 4,656 | 4,656 | |||||||||||||||||
Investment securities | 24,040 | - | 24,769 | - | 24,769 | ||||||||||||||||
Loans, net | 449,201 | - | 446,776 | 10,423 | 457,199 | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | 339,422 | - | 339,422 | - | 339,422 | ||||||||||||||||
Time deposits | 94,798 | - | 96,404 | - | 96,404 | ||||||||||||||||
Other borrowings | 41,852 | - | 43,238 | - | 43,238 |
STOCKHOLDERS_EQUITY_Tables
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
STOCKHOLDERS' EQUITY [Abstract] | ' | ||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||
The following summarizes the changes in the unrealized gains and losses on the available-for –sale securities component of accumulated other comprehensive income, net of tax for the periods indicated: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||
Beginning balance | $ | (103 | ) | $ | 35 | $ | 35 | $ | 139 | ||||||||
Other comprehensive income before reclassifications | (119 | ) | 7 | (257 | ) | 2 | |||||||||||
Amounts reclassified from accumulated other comprehensive income | - | - | - | (99 | ) | ||||||||||||
Net current-period other comprehensive income | (119 | ) | 7 | (257 | ) | (97 | ) | ||||||||||
Ending Balance | $ | (222 | ) | $ | 42 | $ | (222 | ) | $ | 42 |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
EARNINGS PER SHARE [Abstract] | ' | ||||||||||||||||
Reconciliation of Basic and Diluted Earnings per Share | ' | ||||||||||||||||
The following table presents a reconciliation of basic earnings per share and diluted earnings per share: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(dollars in thousands, except per share amounts) | |||||||||||||||||
Net income | $ | 2,635 | $ | 613 | $ | 5,850 | $ | 841 | |||||||||
Less: dividends and accretion on preferred stock | 262 | 253 | 786 | 785 | |||||||||||||
Net income available to common stockholders | $ | 2,373 | $ | 360 | $ | 5,064 | $ | 56 | |||||||||
Add: debenture interest expense and costs, net of income taxes | 23 | - | 222 | - | |||||||||||||
Net income for diluted calculation of earnings per common share | $ | 2,396 | $ | 360 | $ | 5,286 | $ | 56 | |||||||||
Weighted average number of common shares outstanding - basic | 7,865 | 5,990 | 6,731 | 5,990 | |||||||||||||
Weighted average number of common shares outstanding - diluted | 8,395 | 8,233 | 8,883 | 8,233 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 0.3 | $ | 0.06 | $ | 0.75 | $ | 0.01 | |||||||||
Diluted | $ | 0.29 | $ | 0.06 | $ | 0.6 | $ | 0.01 | |||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Quarter | ||||
Provision and Allowance for Loan Losses [Abstract] | ' | ' | ' | ' |
Period of loss history used for determining the amount of allowance of loan losses (in quarters) | ' | ' | 12 | ' |
Threshold amount of loans for evaluation of impairment | ' | ' | $500,000 | ' |
Income Taxes [Abstract] | ' | ' | ' | ' |
Net income | 2,635,000 | 613,000 | 5,850,000 | 841,000 |
Valuation allowance for deferred tax assets (released) | $1,400,000 | ' | $1,400,000 | ' |
Consumer [Member] | ' | ' | ' | ' |
Provision and Allowance for Loan Losses [Abstract] | ' | ' | ' | ' |
Period of past due after which loan is considered as uncollectible | ' | ' | '120 days | ' |
Number of delinquent payments | ' | ' | 5 | ' |
Commercial, Commercial Real Estate and SBA Loans [Member] | ' | ' | ' | ' |
Provision and Allowance for Loan Losses [Abstract] | ' | ' | ' | ' |
Period of past due after which loan is considered as uncollectible | ' | ' | '90 days | ' |
Number of days for unsecured loans to be charged off | ' | ' | '90 days | ' |
Single Family Real Estate, HELOC's and Manufactured Loans [Member] | ' | ' | ' | ' |
Provision and Allowance for Loan Losses [Abstract] | ' | ' | ' | ' |
Period of past due after which loan is considered as uncollectible | ' | ' | '90 days | ' |
Single Family Real Estate, HELOC's and Manufactured Loans [Member] | Minimum [Member] | ' | ' | ' | ' |
Provision and Allowance for Loan Losses [Abstract] | ' | ' | ' | ' |
Number of days for unsecured loans to be charged off | ' | ' | '90 days | ' |
Single Family Real Estate, HELOC's and Manufactured Loans [Member] | Maximum [Member] | ' | ' | ' | ' |
Provision and Allowance for Loan Losses [Abstract] | ' | ' | ' | ' |
Number of days for unsecured loans to be charged off | ' | ' | '120 days | ' |
INVESTMENT_SECURITIES_Details
INVESTMENT SECURITIES (Details) (USD $) | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Securities available-for-sale [Abstract] | ' | ' | ' |
Amortized cost | $15,813,000 | ' | $11,944,000 |
Gross unrealized gains | 17,000 | ' | 70,000 |
Gross unrealized (losses) | -394,000 | ' | -10,000 |
Fair value | 15,436,000 | ' | 12,004,000 |
Securities held-to-maturity [Abstract] | ' | ' | ' |
Amortized cost | 10,149,000 | ' | 12,036,000 |
Gross unrealized gains | 469,000 | ' | 729,000 |
Gross unrealized losses | -18,000 | ' | 0 |
Fair value | 10,600,000 | ' | 12,765,000 |
Available-for-sale and held to maturity securities disclosure [Abstract] | ' | ' | ' |
Securities pledged as collateral | 25,600,000 | ' | 24,000,000 |
Proceeds from sale of available-for-sale securities | 0 | 4,137,000 | ' |
Gain on sale of available-for-sale securities | 0 | 121,000 | ' |
Number of shares to be purchased to participate in program (in shares) | 2,000 | ' | ' |
U.S. Government Agency [Member] | MBS [Member] | ' | ' | ' |
Securities held-to-maturity [Abstract] | ' | ' | ' |
Amortized cost | 10,149,000 | ' | 12,036,000 |
Gross unrealized gains | 469,000 | ' | 729,000 |
Gross unrealized losses | -18,000 | ' | 0 |
Fair value | 10,600,000 | ' | 12,765,000 |
U.S. Government Agency [Member] | Notes [Member] | ' | ' | ' |
Securities available-for-sale [Abstract] | ' | ' | ' |
Amortized cost | 5,994,000 | ' | 1,998,000 |
Gross unrealized gains | 0 | ' | 0 |
Gross unrealized (losses) | -318,000 | ' | -10,000 |
Fair value | 5,676,000 | ' | 1,988,000 |
U.S. Government Agency [Member] | MBS [Member] | ' | ' | ' |
Securities available-for-sale [Abstract] | ' | ' | ' |
Amortized cost | 62,000 | ' | 163,000 |
Gross unrealized gains | 3,000 | ' | 8,000 |
Gross unrealized (losses) | 0 | ' | 0 |
Fair value | 65,000 | ' | 171,000 |
U.S. Government Agency [Member] | CMO [Member] | ' | ' | ' |
Securities available-for-sale [Abstract] | ' | ' | ' |
Amortized cost | 9,691,000 | ' | 9,783,000 |
Gross unrealized gains | 13,000 | ' | 62,000 |
Gross unrealized (losses) | -76,000 | ' | 0 |
Fair value | 9,628,000 | ' | 9,845,000 |
Equity Securities [Member] | Farmer Mac class A stock [Member] | ' | ' | ' |
Securities available-for-sale [Abstract] | ' | ' | ' |
Amortized cost | 66,000 | ' | ' |
Gross unrealized gains | 1,000 | ' | ' |
Gross unrealized (losses) | 0 | ' | ' |
Fair value | $67,000 | ' | ' |
INVESTMENT_SECURITIES_Maturity
INVESTMENT SECURITIES, Maturity Periods and Weighted Average Yields (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Maturity periods and weighted average yields of investment securities available-for-sale [Abstract] | ' | ' |
Less than One Year, Amount | $5,676 | $4,913 |
Less than One Year, Yield (in hundredths) | 1.20% | ' |
One to Five Years, Amount | 2,427 | 6,920 |
One to Five Years, Yield (in hundredths) | 0.70% | ' |
Five to Ten Years, Amount | 4,420 | 171 |
Five to Ten Years, Yield (in hundredths) | 0.60% | ' |
Over Ten Years, Amount | 2,846 | 0 |
Over Ten Years, Yield (in hundredths) | 0.80% | ' |
Total Amount | 15,436 | ' |
Total Yield (in hundredths) | 0.90% | ' |
Maturity periods and weighted average yields of investment securities held-to-maturity [Abstract] | ' | ' |
Less than One Year, Amount | 0 | ' |
Less than One Year, Yield (in hundredths) | 0.00% | ' |
One to Five Years, Amount | 2,366 | ' |
One to Five Years, Yield (in hundredths) | 4.70% | ' |
Five to Ten Years, Amount | 7,783 | ' |
Five to Ten Years, Yield (in hundredths) | 2.70% | ' |
Over Ten Years, Amount | 0 | ' |
Over Ten Years, Yield (in hundredths) | 0.00% | ' |
Total Amount | 10,149 | ' |
Total Yield (in hundredths) | 3.20% | ' |
Securities available-for-sale, Amortized Cost [Abstract] | ' | ' |
Due in one year or less | 5,994 | 4,923 |
After one year through five years | 2,418 | 6,858 |
After five years through ten years | 4,425 | 163 |
After ten years | 2,910 | 0 |
Total | 15,813 | 11,944 |
Securities available for sale, Estimated Fair Value [Abstract] | ' | ' |
Due in one year or less | 5,676 | 4,913 |
After one year through five years | 2,427 | 6,920 |
After five years through ten years | 4,420 | 171 |
After ten years | 2,846 | 0 |
Total | 15,436 | 12,004 |
Securities held to maturity, Amortized Cost [Abstract] | ' | ' |
Due in one year or less | 0 | 0 |
After one year through five years | 2,366 | 4,051 |
After five years through ten years | 7,783 | 7,985 |
After ten years | 0 | 0 |
Total | 10,149 | 12,036 |
Securities held to maturity, Estimated Fair Value [Abstract] | ' | ' |
Due in one year or less | 0 | 0 |
After one year through five years | 2,521 | 4,314 |
After five years through ten years | 8,079 | 8,451 |
After ten years | 0 | 0 |
Total | 10,600 | 12,765 |
Farmer Mac class A stock [Member] | ' | ' |
Securities available-for-sale, Amortized Cost [Abstract] | ' | ' |
Total | 66 | 0 |
Securities available for sale, Estimated Fair Value [Abstract] | ' | ' |
Total | 67 | 0 |
U.S. Government Agency [Member] | MBS [Member] | ' | ' |
Maturity periods and weighted average yields of investment securities held-to-maturity [Abstract] | ' | ' |
Less than One Year, Amount | 0 | ' |
Less than One Year, Yield (in hundredths) | 0.00% | ' |
One to Five Years, Amount | 2,366 | ' |
One to Five Years, Yield (in hundredths) | 4.70% | ' |
Five to Ten Years, Amount | 7,783 | ' |
Five to Ten Years, Yield (in hundredths) | 2.70% | ' |
Over Ten Years, Amount | 0 | ' |
Over Ten Years, Yield (in hundredths) | 0.00% | ' |
Total Amount | 10,149 | ' |
Total Yield (in hundredths) | 3.20% | ' |
Farmer Mac class A stock [Member] | ' | ' |
Maturity periods and weighted average yields of investment securities available-for-sale [Abstract] | ' | ' |
Less than One Year, Amount | 0 | ' |
Less than One Year, Yield (in hundredths) | 0.00% | ' |
One to Five Years, Amount | 0 | ' |
One to Five Years, Yield (in hundredths) | 0.00% | ' |
Five to Ten Years, Amount | 0 | ' |
Five to Ten Years, Yield (in hundredths) | 0.00% | ' |
Over Ten Years, Amount | 0 | ' |
Over Ten Years, Yield (in hundredths) | 0.00% | ' |
Total Amount | 67 | ' |
Total Yield (in hundredths) | 0.00% | ' |
Securities available for sale, Estimated Fair Value [Abstract] | ' | ' |
Due in one year or less | 0 | ' |
After one year through five years | 0 | ' |
After five years through ten years | 0 | ' |
After ten years | 0 | ' |
U.S. Government Agency [Member] | Notes [Member] | ' | ' |
Maturity periods and weighted average yields of investment securities available-for-sale [Abstract] | ' | ' |
Less than One Year, Amount | 5,676 | ' |
Less than One Year, Yield (in hundredths) | 1.20% | ' |
One to Five Years, Amount | 0 | ' |
One to Five Years, Yield (in hundredths) | 0.00% | ' |
Five to Ten Years, Amount | 0 | ' |
Five to Ten Years, Yield (in hundredths) | 0.00% | ' |
Over Ten Years, Amount | 0 | ' |
Over Ten Years, Yield (in hundredths) | 0.00% | ' |
Total Amount | 5,676 | ' |
Total Yield (in hundredths) | 1.20% | ' |
Securities available for sale, Estimated Fair Value [Abstract] | ' | ' |
Due in one year or less | 5,676 | ' |
After one year through five years | 0 | ' |
After five years through ten years | 0 | ' |
After ten years | 0 | ' |
U.S. Government Agency [Member] | MBS [Member] | ' | ' |
Maturity periods and weighted average yields of investment securities available-for-sale [Abstract] | ' | ' |
Less than One Year, Amount | 0 | ' |
Less than One Year, Yield (in hundredths) | 0.00% | ' |
One to Five Years, Amount | 0 | ' |
One to Five Years, Yield (in hundredths) | 0.00% | ' |
Five to Ten Years, Amount | 65 | ' |
Five to Ten Years, Yield (in hundredths) | 2.20% | ' |
Over Ten Years, Amount | 0 | ' |
Over Ten Years, Yield (in hundredths) | 0.00% | ' |
Total Amount | 65 | ' |
Total Yield (in hundredths) | 2.20% | ' |
Securities available for sale, Estimated Fair Value [Abstract] | ' | ' |
Due in one year or less | 0 | ' |
After one year through five years | 0 | ' |
After five years through ten years | 65 | ' |
After ten years | 0 | ' |
U.S. Government Agency [Member] | CMO [Member] | ' | ' |
Maturity periods and weighted average yields of investment securities available-for-sale [Abstract] | ' | ' |
Less than One Year, Amount | 0 | ' |
Less than One Year, Yield (in hundredths) | 0.00% | ' |
One to Five Years, Amount | 2,427 | ' |
One to Five Years, Yield (in hundredths) | 0.70% | ' |
Five to Ten Years, Amount | 4,355 | ' |
Five to Ten Years, Yield (in hundredths) | 0.50% | ' |
Over Ten Years, Amount | 2,846 | ' |
Over Ten Years, Yield (in hundredths) | 0.80% | ' |
Total Amount | 9,628 | ' |
Total Yield (in hundredths) | 0.70% | ' |
Securities available for sale, Estimated Fair Value [Abstract] | ' | ' |
Due in one year or less | 0 | ' |
After one year through five years | 2,427 | ' |
After five years through ten years | 4,355 | ' |
After ten years | $2,846 | ' |
INVESTMENT_SECURITIES_Unrealiz
INVESTMENT SECURITIES, Unrealized Loss Positions (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | Security | Security |
Securities available-for-sale, continuous unrealized loss position [Abstract] | ' | ' |
Less than 12 months, Unrealized Losses | $394 | $11 |
Less than 12 months, Fair Value | 11,103 | 2,864 |
More than 12 months, Unrealized Losses | 0 | 1 |
More than 12 months, Fair Value | 0 | 411 |
Total, Unrealized Loss | 394 | 12 |
Total, Fair Value | 11,103 | 3,275 |
Securities held-to-maturity, continuous unrealized loss position [Abstract] | ' | ' |
Less than 12 months, Unrealized Losses | 18 | ' |
Less than 12 months, Fair Value | 1,080 | ' |
More than 12 months, Unrealized Losses | 0 | ' |
More than 12 months, Fair Value | 0 | ' |
Total, Unrealized Loss | 18 | 0 |
Total, Fair Value | 1,080 | ' |
Securities in unrealized loss positions | 8 | 4 |
U.S. Government Agency [Member] | MBS [Member] | ' | ' |
Securities held-to-maturity, continuous unrealized loss position [Abstract] | ' | ' |
Less than 12 months, Unrealized Losses | 18 | ' |
Less than 12 months, Fair Value | 1,080 | ' |
More than 12 months, Unrealized Losses | 0 | ' |
More than 12 months, Fair Value | 0 | ' |
Total, Unrealized Loss | 18 | 0 |
Total, Fair Value | 1,080 | ' |
U.S. Government Agency [Member] | Notes [Member] | ' | ' |
Securities available-for-sale, continuous unrealized loss position [Abstract] | ' | ' |
Less than 12 months, Unrealized Losses | 318 | 10 |
Less than 12 months, Fair Value | 5,676 | 1,988 |
More than 12 months, Unrealized Losses | 0 | 0 |
More than 12 months, Fair Value | 0 | 0 |
Total, Unrealized Loss | 318 | 10 |
Total, Fair Value | 5,676 | 1,988 |
U.S. Government Agency [Member] | CMO [Member] | ' | ' |
Securities available-for-sale, continuous unrealized loss position [Abstract] | ' | ' |
Less than 12 months, Unrealized Losses | 76 | 1 |
Less than 12 months, Fair Value | 5,427 | 876 |
More than 12 months, Unrealized Losses | 0 | 1 |
More than 12 months, Fair Value | 0 | 411 |
Total, Unrealized Loss | 76 | 2 |
Total, Fair Value | 5,427 | 1,287 |
Equity Securities [Member] | Farmer Mac class A stock [Member] | ' | ' |
Securities available-for-sale, continuous unrealized loss position [Abstract] | ' | ' |
Less than 12 months, Unrealized Losses | 0 | ' |
Less than 12 months, Fair Value | 0 | ' |
More than 12 months, Unrealized Losses | 0 | ' |
More than 12 months, Fair Value | 0 | ' |
Total, Unrealized Loss | 0 | ' |
Total, Fair Value | $0 | ' |
LOAN_SALES_AND_SERVICING_SBA_L
LOAN SALES AND SERVICING, SBA Loans (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Servicing liability | $32,000 | $39,000 |
Loans included in loans held for sale | 64,187,000 | 68,694,000 |
SBA [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Percentage of loan amount unguaranteed to be periodically sold to third part for cash premium, minimum (in hundredths) | 5.00% | ' |
Percentage as required principal balance of each loan, minimum (in hundredths) | 5.00% | ' |
Loans included in loans held for sale | 48,900,000 | 55,700,000 |
Principal balance of loan serviced | 29,400,000 | 32,700,000 |
US Department of Agriculture [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans included in loans held for sale | 14,200,000 | 4,800,000 |
Principal balance of loan serviced | $2,500,000 | $2,500,000 |
LOAN_SALES_AND_SERVICING_Inter
LOAN SALES AND SERVICING, Interest Only Strips (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Interest only strips accounted for under fair value method [Roll Forward] | ' | ' | ' | ' |
Beginning balance | $394 | $456 | $426 | $419 |
Adjustment to fair value | -18 | -5 | -50 | 32 |
Ending balance | 376 | 451 | 376 | 451 |
Interest only strips key data assumptions for fair value [Abstract] | ' | ' | ' | ' |
Weighted-average constant prepayment rate (in hundredths) | ' | ' | 5.17% | 5.66% |
Weighted-average life (in years) | ' | ' | '6 years | '6 years |
Weighted-average discount rate (in hundredths) | ' | ' | 12.74% | 12.94% |
Discount Rate [Abstract] | ' | ' | ' | ' |
Increase in fair value from 100 basis points ("bps") decrease | 11 | 13 | 11 | 13 |
Decrease in fair value from 100 bps increase | -10 | -13 | -10 | -13 |
Constant prepayment rate [Abstract] | ' | ' | ' | ' |
Increase in fair value from 10 percent decrease | 5 | 7 | 5 | 7 |
Decrease in fair value from 10 percent increase | ($5) | ($7) | ($5) | ($7) |
LOAN_SALES_AND_SERVICING_Servi
LOAN SALES AND SERVICING, Servicing Rights (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Servicing rights accounted for under the amortization method [Roll Forward] | ' | ' | ' | ' |
Beginning balance | $326 | $441 | $383 | $625 |
Amortization | -28 | -29 | -85 | -213 |
Ending balance | 298 | 412 | 298 | 412 |
Servicing rights accounted for under the fair value method [Roll Forward] | ' | ' | ' | ' |
Beginning balance | 304 | 253 | 348 | 0 |
Additions through loan sales | 0 | 72 | 0 | 349 |
Adjustment to fair value | -4 | 8 | -48 | -16 |
Ending balance | 300 | 333 | 300 | 333 |
Assumptions used in estimating the fair value of servicing rights [Abstract] | ' | ' | ' | ' |
Weighted-average constant prepayment rate (in hundredths) | ' | ' | 4.62% | 5.19% |
Weighted-average life (in years) | ' | ' | '9 years | '9 years |
Weighted-average discount rate (in hundredths) | ' | ' | 13.48% | 13.93% |
Discount Rate [Abstract] | ' | ' | ' | ' |
Increase in fair value from 100 basis points ("bps") decrease | 12 | 13 | 12 | 13 |
Decrease in fair value from 100 bps increase | -11 | -13 | -11 | -13 |
Constant Prepayment Rate [Abstract] | ' | ' | ' | ' |
Increase in fair value from 10 percent decrease | 6 | 7 | 6 | 7 |
Decrease in fair value from 10 percent increase | ($5) | ($7) | ($5) | ($7) |
LOAN_SALES_AND_SERVICING_Mortg
LOAN SALES AND SERVICING, Mortgage Loans (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Security | ||
Mortgage Loan Sales [Abstract] | ' | ' |
Period for entity entered into mortgage loan rate lock commitments | '30 days | ' |
Number of commitments which create an economic hedge | 2 | ' |
Mortgage loan interest rate lock and forward sale commitments amount | $1.20 | $15.80 |
LOANS_HELD_FOR_INVESTMENT_Deta
LOANS HELD FOR INVESTMENT (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Loans held for investment [Abstract] | ' | ' |
Loan held for investment, gross | $387,175 | $395,275 |
Allowance for loan losses | 11,654 | 14,464 |
Deferred costs, net | -92 | -128 |
Discount on SBA loans | 355 | 432 |
Total loans held for investment, net | 375,258 | 380,507 |
Manufactured Housing [Member] | ' | ' |
Loans held for investment [Abstract] | ' | ' |
Loan held for investment, gross | 172,126 | 177,391 |
Commercial Real Estate [Member] | ' | ' |
Loans held for investment [Abstract] | ' | ' |
Loan held for investment, gross | 132,034 | 126,677 |
Commercial [Member] | ' | ' |
Loans held for investment [Abstract] | ' | ' |
Loan held for investment, gross | 31,453 | 32,496 |
SBA [Member] | ' | ' |
Loans held for investment [Abstract] | ' | ' |
Loan held for investment, gross | 25,753 | 30,688 |
HELOC [Member] | ' | ' |
Loans held for investment [Abstract] | ' | ' |
Loan held for investment, gross | 15,616 | 17,852 |
Single Family Real Estate [Member] | ' | ' |
Loans held for investment [Abstract] | ' | ' |
Loan held for investment, gross | 10,007 | 9,939 |
Consumer [Member] | ' | ' |
Loans held for investment [Abstract] | ' | ' |
Loan held for investment, gross | $186 | $232 |
LOANS_HELD_FOR_INVESTMENT_Fina
LOANS HELD FOR INVESTMENT, Financing Receivables Past Due (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
Aging of loans held for investment [Abstract] | ' | ' | ||
Current | $381,913,000 | $386,305,000 | ||
30-59 days past due | 242,000 | 1,252,000 | ||
60-89 days past due | 3,560,000 | 258,000 | ||
Greater than 90 days past due | 1,460,000 | 7,460,000 | ||
Total past due | 5,262,000 | 8,970,000 | ||
Total loans held for investment | 387,175,000 | 395,275,000 | ||
Recorded investment > 90 days and accruing | 0 | 12,000 | ||
Manufactured Housing [Member] | ' | ' | ||
Aging of loans held for investment [Abstract] | ' | ' | ||
Current | 171,923,000 | 176,249,000 | ||
30-59 days past due | 144,000 | 467,000 | ||
60-89 days past due | 59,000 | 258,000 | ||
Greater than 90 days past due | 0 | 417,000 | ||
Total past due | 203,000 | 1,142,000 | ||
Total loans held for investment | 172,126,000 | 177,391,000 | ||
Recorded investment > 90 days and accruing | 0 | 0 | ||
Commercial Real Estate [Member] | ' | ' | ||
Aging of loans held for investment [Abstract] | ' | ' | ||
Total loans held for investment | 132,034,000 | 126,677,000 | ||
Commercial Real Estate [Member] | Commercial Real Estate [Member] | ' | ' | ||
Aging of loans held for investment [Abstract] | ' | ' | ||
Current | 84,191,000 | 81,682,000 | ||
30-59 days past due | 0 | 0 | ||
60-89 days past due | 0 | 0 | ||
Greater than 90 days past due | 0 | 830,000 | ||
Total past due | 0 | 830,000 | ||
Total loans held for investment | 84,191,000 | 82,512,000 | ||
Recorded investment > 90 days and accruing | 0 | 0 | ||
Commercial Real Estate [Member] | SBA 504 1st trust deed [Member] | ' | ' | ||
Aging of loans held for investment [Abstract] | ' | ' | ||
Current | 33,315,000 | 34,502,000 | ||
30-59 days past due | 0 | 0 | ||
60-89 days past due | 0 | 0 | ||
Greater than 90 days past due | 490,000 | 0 | ||
Total past due | 490,000 | 0 | ||
Total loans held for investment | 33,805,000 | 34,502,000 | ||
Recorded investment > 90 days and accruing | 0 | 0 | ||
Commercial Real Estate [Member] | Land [Member] | ' | ' | ||
Aging of loans held for investment [Abstract] | ' | ' | ||
Current | 1,972,000 | 4,556,000 | ||
30-59 days past due | 0 | 0 | ||
60-89 days past due | 0 | 0 | ||
Greater than 90 days past due | 0 | 0 | ||
Total past due | 0 | 0 | ||
Total loans held for investment | 1,972,000 | 4,556,000 | ||
Recorded investment > 90 days and accruing | 0 | 0 | ||
Commercial Real Estate [Member] | Construction [Member] | ' | ' | ||
Aging of loans held for investment [Abstract] | ' | ' | ||
Current | 12,066,000 | 5,107,000 | ||
30-59 days past due | 0 | 0 | ||
60-89 days past due | 0 | 0 | ||
Greater than 90 days past due | 0 | 0 | ||
Total past due | 0 | 0 | ||
Total loans held for investment | 12,066,000 | 5,107,000 | ||
Recorded investment > 90 days and accruing | 0 | 0 | ||
Commercial [Member] | ' | ' | ||
Aging of loans held for investment [Abstract] | ' | ' | ||
Current | 27,952,000 | 32,324,000 | ||
30-59 days past due | 0 | 40,000 | ||
60-89 days past due | 3,501,000 | 0 | ||
Greater than 90 days past due | 0 | 132,000 | ||
Total past due | 3,501,000 | 172,000 | ||
Total loans held for investment | 31,453,000 | 32,496,000 | ||
Recorded investment > 90 days and accruing | 0 | 0 | ||
SBA [Member] | ' | ' | ||
Aging of loans held for investment [Abstract] | ' | ' | ||
Current | 24,953,000 | [1] | 23,906,000 | [2] |
30-59 days past due | 98,000 | [1] | 713,000 | [2] |
60-89 days past due | 0 | [1] | 0 | [2] |
Greater than 90 days past due | 702,000 | [1] | 6,069,000 | [2] |
Total past due | 800,000 | [1] | 6,782,000 | [2] |
Total loans held for investment | 25,753,000 | 30,688,000 | ||
Recorded investment > 90 days and accruing | 0 | [1] | 0 | [2] |
SBA [Member] | SBA Guaranteed Loans [Member] | ' | ' | ||
Aging of loans held for investment [Abstract] | ' | ' | ||
Total loans held for investment | 8,144,000 | 10,314,000 | ||
Guaranteed past due loans | 700,000 | 5,600,000 | ||
HELOC [Member] | ' | ' | ||
Aging of loans held for investment [Abstract] | ' | ' | ||
Current | 15,616,000 | 17,852,000 | ||
30-59 days past due | 0 | 0 | ||
60-89 days past due | 0 | 0 | ||
Greater than 90 days past due | 0 | 0 | ||
Total past due | 0 | 0 | ||
Total loans held for investment | 15,616,000 | 17,852,000 | ||
Recorded investment > 90 days and accruing | 0 | 0 | ||
Single Family Real Estate [Member] | ' | ' | ||
Aging of loans held for investment [Abstract] | ' | ' | ||
Current | 9,739,000 | 9,895,000 | ||
30-59 days past due | 0 | 32,000 | ||
60-89 days past due | 0 | 0 | ||
Greater than 90 days past due | 268,000 | 12,000 | ||
Total past due | 268,000 | 44,000 | ||
Total loans held for investment | 10,007,000 | 9,939,000 | ||
Recorded investment > 90 days and accruing | 0 | 12,000 | ||
Consumer [Member] | ' | ' | ||
Aging of loans held for investment [Abstract] | ' | ' | ||
Current | 186,000 | 232,000 | ||
30-59 days past due | 0 | 0 | ||
60-89 days past due | 0 | 0 | ||
Greater than 90 days past due | 0 | 0 | ||
Total past due | 0 | 0 | ||
Total loans held for investment | 186,000 | 232,000 | ||
Recorded investment > 90 days and accruing | $0 | $0 | ||
[1] | $0.7 million of the $0.8 million SBA loans past due are guaranteed by the SBA. | |||
[2] | $5.6 million of the $6.8 million SBA loans past due are guaranteed by the SBA. |
LOANS_HELD_FOR_INVESTMENT_Allo
LOANS HELD FOR INVESTMENT, Allowance for Credit Losses by Portfolio Type (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Summary of provision, charge-offs and recoveries by loan category [Abstract] | ' | ' | ' | ' | ' |
Beginning balance | $12,456,000 | $15,446,000 | $14,464,000 | $15,270,000 | ' |
Charge-offs | -692,000 | -1,946,000 | -1,959,000 | -6,403,000 | ' |
Recoveries | 1,453,000 | 262,000 | 1,992,000 | 1,012,000 | ' |
Net charge-offs | 761,000 | -1,684,000 | 33,000 | -5,391,000 | ' |
Provision | -1,563,000 | 1,293,000 | -2,843,000 | 5,176,000 | ' |
Ending balance | 11,654,000 | 15,055,000 | 11,654,000 | 15,055,000 | ' |
Reserve for credit losses on undisbursed loans | 100,000 | ' | 100,000 | ' | 100,000 |
Manufactured Housing [Member] | ' | ' | ' | ' | ' |
Summary of provision, charge-offs and recoveries by loan category [Abstract] | ' | ' | ' | ' | ' |
Beginning balance | 5,691,000 | 5,187,000 | 5,945,000 | 4,629,000 | ' |
Charge-offs | -379,000 | -1,212,000 | -1,088,000 | -3,115,000 | ' |
Recoveries | 119,000 | 3,000 | 248,000 | 52,000 | ' |
Net charge-offs | -260,000 | -1,209,000 | -840,000 | -3,063,000 | ' |
Provision | -80,000 | 2,022,000 | 246,000 | 4,434,000 | ' |
Ending balance | 5,351,000 | 6,000,000 | 5,351,000 | 6,000,000 | ' |
Commercial Real Estate [Member] | ' | ' | ' | ' | ' |
Summary of provision, charge-offs and recoveries by loan category [Abstract] | ' | ' | ' | ' | ' |
Beginning balance | 2,654,000 | 3,175,000 | 2,627,000 | 3,528,000 | ' |
Charge-offs | -157,000 | -396,000 | -161,000 | -1,687,000 | ' |
Recoveries | 1,135,000 | 31,000 | 1,185,000 | 32,000 | ' |
Net charge-offs | 978,000 | -365,000 | 1,024,000 | -1,655,000 | ' |
Provision | -1,266,000 | 151,000 | -1,285,000 | 1,088,000 | ' |
Ending balance | 2,366,000 | 2,961,000 | 2,366,000 | 2,961,000 | ' |
Commercial [Member] | ' | ' | ' | ' | ' |
Summary of provision, charge-offs and recoveries by loan category [Abstract] | ' | ' | ' | ' | ' |
Beginning balance | 1,529,000 | 3,064,000 | 2,325,000 | 2,734,000 | ' |
Charge-offs | -32,000 | 0 | -149,000 | -656,000 | ' |
Recoveries | 45,000 | 81,000 | 154,000 | 118,000 | ' |
Net charge-offs | 13,000 | 81,000 | 5,000 | -538,000 | ' |
Provision | -365,000 | -521,000 | -1,153,000 | 428,000 | ' |
Ending balance | 1,177,000 | 2,624,000 | 1,177,000 | 2,624,000 | ' |
SBA [Member] | ' | ' | ' | ' | ' |
Summary of provision, charge-offs and recoveries by loan category [Abstract] | ' | ' | ' | ' | ' |
Beginning balance | 2,073,000 | 3,148,000 | 2,733,000 | 3,877,000 | ' |
Charge-offs | -76,000 | -241,000 | -355,000 | -600,000 | ' |
Recoveries | 149,000 | 140,000 | 396,000 | 750,000 | ' |
Net charge-offs | 73,000 | -101,000 | 41,000 | 150,000 | ' |
Provision | 132,000 | -238,000 | -496,000 | -1,218,000 | ' |
Ending balance | 2,278,000 | 2,809,000 | 2,278,000 | 2,809,000 | ' |
HELOC [Member] | ' | ' | ' | ' | ' |
Summary of provision, charge-offs and recoveries by loan category [Abstract] | ' | ' | ' | ' | ' |
Beginning balance | 311,000 | 671,000 | 634,000 | 349,000 | ' |
Charge-offs | 0 | -74,000 | -39,000 | -76,000 | ' |
Recoveries | 1,000 | 0 | 2,000 | 50,000 | ' |
Net charge-offs | 1,000 | -74,000 | -37,000 | -26,000 | ' |
Provision | -32,000 | -111,000 | -317,000 | 163,000 | ' |
Ending balance | 280,000 | 486,000 | 280,000 | 486,000 | ' |
Single Family Real Estate [Member] | ' | ' | ' | ' | ' |
Summary of provision, charge-offs and recoveries by loan category [Abstract] | ' | ' | ' | ' | ' |
Beginning balance | 197,000 | 199,000 | 198,000 | 150,000 | ' |
Charge-offs | -48,000 | -23,000 | -136,000 | -261,000 | ' |
Recoveries | 4,000 | 2,000 | 7,000 | 5,000 | ' |
Net charge-offs | -44,000 | -21,000 | -129,000 | -256,000 | ' |
Provision | 48,000 | -5,000 | 132,000 | 279,000 | ' |
Ending balance | 201,000 | 173,000 | 201,000 | 173,000 | ' |
Consumer [Member] | ' | ' | ' | ' | ' |
Summary of provision, charge-offs and recoveries by loan category [Abstract] | ' | ' | ' | ' | ' |
Beginning balance | 1,000 | 2,000 | 2,000 | 3,000 | ' |
Charge-offs | 0 | 0 | -31,000 | -8,000 | ' |
Recoveries | 0 | 5,000 | 0 | 5,000 | ' |
Net charge-offs | 0 | 5,000 | -31,000 | -3,000 | ' |
Provision | 0 | -5,000 | 30,000 | 2,000 | ' |
Ending balance | $1,000 | $2,000 | $1,000 | $2,000 | ' |
LOANS_HELD_FOR_INVESTMENT_Impa
LOANS HELD FOR INVESTMENT, Impaired Financing Receivables (Details) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||||
Recorded Investment [Abstract] | ' | ' | ' | ' | ' | ' |
Impaired loans with an allowance recorded | $9,449 | ' | $12,163 | ' | ' | ' |
Impaired loans with no allowance recorded | 9,632 | ' | 17,484 | ' | ' | ' |
Total loans individually evaluated for impairment | 19,081 | ' | 29,647 | ' | ' | ' |
Loans collectively evaluated for impairment | 368,094 | ' | 365,628 | ' | ' | ' |
Total loans held for investment | 387,175 | ' | 395,275 | ' | ' | ' |
Unpaid Principal Balance [Abstract] | ' | ' | ' | ' | ' | ' |
Impaired loans with an allowance recorded | 15,216 | ' | 14,809 | ' | ' | ' |
Impaired loans with no allowance recorded | 15,396 | ' | 31,435 | ' | ' | ' |
Total loans individually evaluated for impairment | 30,612 | ' | 46,244 | ' | ' | ' |
Loans collectively evaluated for impairment | 368,094 | ' | 365,628 | ' | ' | ' |
Total loans held for investment | 398,706 | ' | 411,872 | ' | ' | ' |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ' | ' | ' | ' | ' | ' |
Impaired loans with an allowance recorded | 1,202 | ' | 1,794 | ' | ' | ' |
Impaired loans with no allowance recorded | 0 | ' | 0 | ' | ' | ' |
Total loans individually evaluated for impairment | 1,202 | ' | 1,794 | ' | ' | ' |
Loans collectively evaluated for impairment | 10,452 | ' | 12,670 | ' | ' | ' |
Total loans held for investment | 11,654 | 12,456 | 14,464 | 15,055 | 15,446 | 15,270 |
Manufactured Housing [Member] | ' | ' | ' | ' | ' | ' |
Recorded Investment [Abstract] | ' | ' | ' | ' | ' | ' |
Impaired loans with an allowance recorded | 5,726 | ' | 5,748 | ' | ' | ' |
Impaired loans with no allowance recorded | 3,023 | ' | 4,687 | ' | ' | ' |
Total loans individually evaluated for impairment | 8,749 | ' | 10,435 | ' | ' | ' |
Loans collectively evaluated for impairment | 163,377 | ' | 166,956 | ' | ' | ' |
Total loans held for investment | 172,126 | ' | 177,391 | ' | ' | ' |
Unpaid Principal Balance [Abstract] | ' | ' | ' | ' | ' | ' |
Impaired loans with an allowance recorded | 6,121 | ' | 5,922 | ' | ' | ' |
Impaired loans with no allowance recorded | 4,900 | ' | 6,828 | ' | ' | ' |
Total loans individually evaluated for impairment | 11,021 | ' | 12,750 | ' | ' | ' |
Loans collectively evaluated for impairment | 163,377 | ' | 166,956 | ' | ' | ' |
Total loans held for investment | 174,398 | ' | 179,706 | ' | ' | ' |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ' | ' | ' | ' | ' | ' |
Impaired loans with an allowance recorded | 777 | ' | 1,103 | ' | ' | ' |
Impaired loans with no allowance recorded | 0 | ' | 0 | ' | ' | ' |
Total loans individually evaluated for impairment | 777 | ' | 1,103 | ' | ' | ' |
Loans collectively evaluated for impairment | 4,574 | ' | 4,842 | ' | ' | ' |
Total loans held for investment | 5,351 | 5,691 | 5,945 | 6,000 | 5,187 | 4,629 |
Commercial Real Estate [Member] | ' | ' | ' | ' | ' | ' |
Recorded Investment [Abstract] | ' | ' | ' | ' | ' | ' |
Impaired loans with an allowance recorded | 1,480 | ' | 519 | ' | ' | ' |
Impaired loans with no allowance recorded | 1,970 | ' | 11,389 | ' | ' | ' |
Total loans individually evaluated for impairment | 3,450 | ' | 11,908 | ' | ' | ' |
Loans collectively evaluated for impairment | 128,584 | ' | 114,769 | ' | ' | ' |
Total loans held for investment | 132,034 | ' | 126,677 | ' | ' | ' |
Unpaid Principal Balance [Abstract] | ' | ' | ' | ' | ' | ' |
Impaired loans with an allowance recorded | 1,497 | ' | 570 | ' | ' | ' |
Impaired loans with no allowance recorded | 3,974 | ' | 17,624 | ' | ' | ' |
Total loans individually evaluated for impairment | 5,471 | ' | 18,194 | ' | ' | ' |
Loans collectively evaluated for impairment | 128,584 | ' | 114,769 | ' | ' | ' |
Total loans held for investment | 134,055 | ' | 132,963 | ' | ' | ' |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ' | ' | ' | ' | ' | ' |
Impaired loans with an allowance recorded | 133 | ' | 4 | ' | ' | ' |
Impaired loans with no allowance recorded | 0 | ' | 0 | ' | ' | ' |
Total loans individually evaluated for impairment | 133 | ' | 4 | ' | ' | ' |
Loans collectively evaluated for impairment | 2,233 | ' | 2,623 | ' | ' | ' |
Total loans held for investment | 2,366 | 2,654 | 2,627 | 2,961 | 3,175 | 3,528 |
Commercial [Member] | ' | ' | ' | ' | ' | ' |
Recorded Investment [Abstract] | ' | ' | ' | ' | ' | ' |
Impaired loans with an allowance recorded | 471 | ' | 5,044 | ' | ' | ' |
Impaired loans with no allowance recorded | 3,548 | ' | 49 | ' | ' | ' |
Total loans individually evaluated for impairment | 4,019 | ' | 5,093 | ' | ' | ' |
Loans collectively evaluated for impairment | 27,434 | ' | 27,403 | ' | ' | ' |
Total loans held for investment | 31,453 | ' | 32,496 | ' | ' | ' |
Unpaid Principal Balance [Abstract] | ' | ' | ' | ' | ' | ' |
Impaired loans with an allowance recorded | 813 | ' | 5,430 | ' | ' | ' |
Impaired loans with no allowance recorded | 3,558 | ' | 50 | ' | ' | ' |
Total loans individually evaluated for impairment | 4,371 | ' | 5,480 | ' | ' | ' |
Loans collectively evaluated for impairment | 27,434 | ' | 27,403 | ' | ' | ' |
Total loans held for investment | 31,805 | ' | 32,883 | ' | ' | ' |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ' | ' | ' | ' | ' | ' |
Impaired loans with an allowance recorded | 68 | ' | 569 | ' | ' | ' |
Impaired loans with no allowance recorded | 0 | ' | 0 | ' | ' | ' |
Total loans individually evaluated for impairment | 68 | ' | 569 | ' | ' | ' |
Loans collectively evaluated for impairment | 1,109 | ' | 1,756 | ' | ' | ' |
Total loans held for investment | 1,177 | 1,529 | 2,325 | 2,624 | 3,064 | 2,734 |
SBA [Member] | ' | ' | ' | ' | ' | ' |
Recorded Investment [Abstract] | ' | ' | ' | ' | ' | ' |
Impaired loans with an allowance recorded | 1,471 | ' | 503 | ' | ' | ' |
Impaired loans with no allowance recorded | 100 | ' | 1,238 | ' | ' | ' |
Total loans individually evaluated for impairment | 1,571 | ' | 1,741 | ' | ' | ' |
Loans collectively evaluated for impairment | 24,182 | ' | 28,947 | ' | ' | ' |
Total loans held for investment | 25,753 | ' | 30,688 | ' | ' | ' |
Unpaid Principal Balance [Abstract] | ' | ' | ' | ' | ' | ' |
Impaired loans with an allowance recorded | 6,477 | ' | 2,536 | ' | ' | ' |
Impaired loans with no allowance recorded | 1,878 | ' | 6,736 | ' | ' | ' |
Total loans individually evaluated for impairment | 8,355 | ' | 9,272 | ' | ' | ' |
Loans collectively evaluated for impairment | 24,182 | ' | 28,947 | ' | ' | ' |
Total loans held for investment | 32,537 | ' | 38,219 | ' | ' | ' |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ' | ' | ' | ' | ' | ' |
Impaired loans with an allowance recorded | 190 | ' | 58 | ' | ' | ' |
Impaired loans with no allowance recorded | 0 | ' | 0 | ' | ' | ' |
Total loans individually evaluated for impairment | 190 | ' | 58 | ' | ' | ' |
Loans collectively evaluated for impairment | 2,088 | ' | 2,675 | ' | ' | ' |
Total loans held for investment | 2,278 | 2,073 | 2,733 | 2,809 | 3,148 | 3,877 |
HELOC [Member] | ' | ' | ' | ' | ' | ' |
Recorded Investment [Abstract] | ' | ' | ' | ' | ' | ' |
Impaired loans with an allowance recorded | 224 | ' | 269 | ' | ' | ' |
Impaired loans with no allowance recorded | 298 | ' | 0 | ' | ' | ' |
Total loans individually evaluated for impairment | 522 | ' | 269 | ' | ' | ' |
Loans collectively evaluated for impairment | 15,094 | ' | 17,583 | ' | ' | ' |
Total loans held for investment | 15,616 | ' | 17,852 | ' | ' | ' |
Unpaid Principal Balance [Abstract] | ' | ' | ' | ' | ' | ' |
Impaired loans with an allowance recorded | 231 | ' | 271 | ' | ' | ' |
Impaired loans with no allowance recorded | 300 | ' | 0 | ' | ' | ' |
Total loans individually evaluated for impairment | 531 | ' | 271 | ' | ' | ' |
Loans collectively evaluated for impairment | 15,094 | ' | 17,583 | ' | ' | ' |
Total loans held for investment | 15,625 | ' | 17,854 | ' | ' | ' |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ' | ' | ' | ' | ' | ' |
Impaired loans with an allowance recorded | 24 | ' | 49 | ' | ' | ' |
Impaired loans with no allowance recorded | 0 | ' | 0 | ' | ' | ' |
Total loans individually evaluated for impairment | 24 | ' | 49 | ' | ' | ' |
Loans collectively evaluated for impairment | 256 | ' | 585 | ' | ' | ' |
Total loans held for investment | 280 | 311 | 634 | 486 | 671 | 349 |
Single Family Real Estate [Member] | ' | ' | ' | ' | ' | ' |
Recorded Investment [Abstract] | ' | ' | ' | ' | ' | ' |
Impaired loans with an allowance recorded | 77 | ' | 80 | ' | ' | ' |
Impaired loans with no allowance recorded | 693 | ' | 121 | ' | ' | ' |
Total loans individually evaluated for impairment | 770 | ' | 201 | ' | ' | ' |
Loans collectively evaluated for impairment | 9,237 | ' | 9,738 | ' | ' | ' |
Total loans held for investment | 10,007 | ' | 9,939 | ' | ' | ' |
Unpaid Principal Balance [Abstract] | ' | ' | ' | ' | ' | ' |
Impaired loans with an allowance recorded | 77 | ' | 80 | ' | ' | ' |
Impaired loans with no allowance recorded | 786 | ' | 197 | ' | ' | ' |
Total loans individually evaluated for impairment | 863 | ' | 277 | ' | ' | ' |
Loans collectively evaluated for impairment | 9,237 | ' | 9,738 | ' | ' | ' |
Total loans held for investment | 10,100 | ' | 10,015 | ' | ' | ' |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ' | ' | ' | ' | ' | ' |
Impaired loans with an allowance recorded | 10 | ' | 11 | ' | ' | ' |
Impaired loans with no allowance recorded | 0 | ' | 0 | ' | ' | ' |
Total loans individually evaluated for impairment | 10 | ' | 11 | ' | ' | ' |
Loans collectively evaluated for impairment | 191 | ' | 187 | ' | ' | ' |
Total loans held for investment | 201 | 197 | 198 | 173 | 199 | 150 |
Consumer [Member] | ' | ' | ' | ' | ' | ' |
Recorded Investment [Abstract] | ' | ' | ' | ' | ' | ' |
Impaired loans with an allowance recorded | 0 | ' | 0 | ' | ' | ' |
Impaired loans with no allowance recorded | ' | ' | 0 | ' | ' | ' |
Total loans individually evaluated for impairment | 0 | ' | 0 | ' | ' | ' |
Loans collectively evaluated for impairment | 186 | ' | 232 | ' | ' | ' |
Total loans held for investment | 186 | ' | 232 | ' | ' | ' |
Unpaid Principal Balance [Abstract] | ' | ' | ' | ' | ' | ' |
Impaired loans with an allowance recorded | 0 | ' | 0 | ' | ' | ' |
Impaired loans with no allowance recorded | 0 | ' | 0 | ' | ' | ' |
Total loans individually evaluated for impairment | 0 | ' | 0 | ' | ' | ' |
Loans collectively evaluated for impairment | 186 | ' | 232 | ' | ' | ' |
Total loans held for investment | 186 | ' | 232 | ' | ' | ' |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ' | ' | ' | ' | ' | ' |
Impaired loans with an allowance recorded | ' | ' | 0 | ' | ' | ' |
Impaired loans with no allowance recorded | 0 | ' | 0 | ' | ' | ' |
Total loans individually evaluated for impairment | 0 | ' | 0 | ' | ' | ' |
Loans collectively evaluated for impairment | 1 | ' | 2 | ' | ' | ' |
Total loans held for investment | $1 | $1 | $2 | $2 | $2 | $3 |
LOANS_HELD_FOR_INVESTMENT_Impa1
LOANS HELD FOR INVESTMENT, Impaired Loans by Class of Loans (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Impaired Loans By Class Of Loans [Abstract] | ' | ' |
Impaired loans | $19,081 | $29,647 |
Manufactured Housing [Member] | ' | ' |
Impaired Loans By Class Of Loans [Abstract] | ' | ' |
Impaired loans | 8,749 | 10,435 |
Commercial Real Estate [Member] | Commercial Real Estate [Member] | ' | ' |
Impaired Loans By Class Of Loans [Abstract] | ' | ' |
Impaired loans | 2,681 | 10,615 |
Commercial Real Estate [Member] | SBA 504 1st trust deed [Member] | ' | ' |
Impaired Loans By Class Of Loans [Abstract] | ' | ' |
Impaired loans | 769 | 1,293 |
Commercial Real Estate [Member] | Land [Member] | ' | ' |
Impaired Loans By Class Of Loans [Abstract] | ' | ' |
Impaired loans | 0 | 0 |
Commercial Real Estate [Member] | Construction [Member] | ' | ' |
Impaired Loans By Class Of Loans [Abstract] | ' | ' |
Impaired loans | 0 | 0 |
Commercial [Member] | ' | ' |
Impaired Loans By Class Of Loans [Abstract] | ' | ' |
Impaired loans | 4,019 | 5,093 |
SBA [Member] | ' | ' |
Impaired Loans By Class Of Loans [Abstract] | ' | ' |
Impaired loans | 1,571 | 1,741 |
HELOC [Member] | ' | ' |
Impaired Loans By Class Of Loans [Abstract] | ' | ' |
Impaired loans | 522 | 269 |
Single Family Real Estate [Member] | ' | ' |
Impaired Loans By Class Of Loans [Abstract] | ' | ' |
Impaired loans | 770 | 201 |
Consumer [Member] | ' | ' |
Impaired Loans By Class Of Loans [Abstract] | ' | ' |
Impaired loans | $0 | $0 |
LOANS_HELD_FOR_INVESTMENT_Aver
LOANS HELD FOR INVESTMENT, Average Investment in Impaired Loans by Class (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Average recorded investment and interest income recognized [Abstract] | ' | ' | ' | ' |
Average investment in impaired loans | $24,077 | $40,454 | $25,594 | $45,278 |
Interest income | 279 | 374 | 661 | 1,135 |
Manufactured Housing [Member] | ' | ' | ' | ' |
Average recorded investment and interest income recognized [Abstract] | ' | ' | ' | ' |
Average investment in impaired loans | 9,454 | 11,050 | 9,528 | 7,782 |
Interest income | 85 | 110 | 182 | 214 |
Commercial Real Estate [Member] | Commercial Real Estate [Member] | ' | ' | ' | ' |
Average recorded investment and interest income recognized [Abstract] | ' | ' | ' | ' |
Average investment in impaired loans | 7,811 | 16,399 | 8,875 | 19,071 |
Interest income | 10 | 99 | 94 | 315 |
Commercial Real Estate [Member] | SBA 504 1st trust deed [Member] | ' | ' | ' | ' |
Average recorded investment and interest income recognized [Abstract] | ' | ' | ' | ' |
Average investment in impaired loans | 1,089 | 2,042 | 1,163 | 4,496 |
Interest income | 4 | 16 | 28 | 116 |
Commercial Real Estate [Member] | Land [Member] | ' | ' | ' | ' |
Average recorded investment and interest income recognized [Abstract] | ' | ' | ' | ' |
Average investment in impaired loans | 0 | 0 | 0 | 0 |
Interest income | 0 | 0 | 0 | 0 |
Commercial Real Estate [Member] | Construction [Member] | ' | ' | ' | ' |
Average recorded investment and interest income recognized [Abstract] | ' | ' | ' | ' |
Average investment in impaired loans | 0 | 3,189 | 0 | 5,937 |
Interest income | 0 | 0 | 0 | 108 |
Commercial [Member] | ' | ' | ' | ' |
Average recorded investment and interest income recognized [Abstract] | ' | ' | ' | ' |
Average investment in impaired loans | 2,789 | 5,442 | 3,831 | 5,591 |
Interest income | 142 | 70 | 208 | 235 |
SBA [Member] | ' | ' | ' | ' |
Average recorded investment and interest income recognized [Abstract] | ' | ' | ' | ' |
Average investment in impaired loans | 1,790 | 1,696 | 1,432 | 1,796 |
Interest income | 34 | 69 | 136 | 130 |
HELOC [Member] | ' | ' | ' | ' |
Average recorded investment and interest income recognized [Abstract] | ' | ' | ' | ' |
Average investment in impaired loans | 397 | 383 | 313 | 248 |
Interest income | 3 | 7 | 3 | 7 |
Single Family Real Estate [Member] | ' | ' | ' | ' |
Average recorded investment and interest income recognized [Abstract] | ' | ' | ' | ' |
Average investment in impaired loans | 747 | 251 | 452 | 350 |
Interest income | 1 | 3 | 10 | 10 |
Consumer [Member] | ' | ' | ' | ' |
Average recorded investment and interest income recognized [Abstract] | ' | ' | ' | ' |
Average investment in impaired loans | 0 | 2 | 0 | 7 |
Interest income | $0 | $0 | $0 | $0 |
LOANS_HELD_FOR_INVESTMENT_Reco
LOANS HELD FOR INVESTMENT, Recorded Investment in Certain Types of Loans (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing receivable recorded investment [Abstract] | ' | ' |
Nonaccrual loans | $21,055 | $29,643 |
SBA guaranteed portion of loans included above | -5,778 | -7,218 |
Nonaccrual loans, net | 15,277 | 22,425 |
Troubled debt restructured loans, gross | 12,288 | 19,931 |
Loans 30 through 89 days past due with interest accruing | $74 | $521 |
Allowance for loan losses to gross loans held for investment (in hundredths) | 3.01% | 3.66% |
LOANS_HELD_FOR_INVESTMENT_Nona
LOANS HELD FOR INVESTMENT, Nonaccrual Loans, Net of SBA Guarantee (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Composition of Nonaccrual Loans, net of SBA guarantee [Abstract] | ' | ' |
Nonaccrual loans, net | $15,277 | $22,425 |
Manufactured Housing [Member] | ' | ' |
Composition of Nonaccrual Loans, net of SBA guarantee [Abstract] | ' | ' |
Nonaccrual loans, net | 5,327 | 7,542 |
Commercial Real Estate [Member] | Commercial Real Estate [Member] | ' | ' |
Composition of Nonaccrual Loans, net of SBA guarantee [Abstract] | ' | ' |
Nonaccrual loans, net | 2,681 | 10,615 |
Commercial Real Estate [Member] | SBA 504 1st trust deed [Member] | ' | ' |
Composition of Nonaccrual Loans, net of SBA guarantee [Abstract] | ' | ' |
Nonaccrual loans, net | 490 | 490 |
Commercial Real Estate [Member] | Land [Member] | ' | ' |
Composition of Nonaccrual Loans, net of SBA guarantee [Abstract] | ' | ' |
Nonaccrual loans, net | 0 | 0 |
Commercial Real Estate [Member] | Construction [Member] | ' | ' |
Composition of Nonaccrual Loans, net of SBA guarantee [Abstract] | ' | ' |
Nonaccrual loans, net | 0 | 0 |
Commercial [Member] | ' | ' |
Composition of Nonaccrual Loans, net of SBA guarantee [Abstract] | ' | ' |
Nonaccrual loans, net | 4,019 | 1,945 |
SBA [Member] | ' | ' |
Composition of Nonaccrual Loans, net of SBA guarantee [Abstract] | ' | ' |
Nonaccrual loans, net | 1,545 | 1,442 |
HELOC [Member] | ' | ' |
Composition of Nonaccrual Loans, net of SBA guarantee [Abstract] | ' | ' |
Nonaccrual loans, net | 522 | 269 |
Single Family Real Estate [Member] | ' | ' |
Composition of Nonaccrual Loans, net of SBA guarantee [Abstract] | ' | ' |
Nonaccrual loans, net | 693 | 121 |
Consumer [Member] | ' | ' |
Composition of Nonaccrual Loans, net of SBA guarantee [Abstract] | ' | ' |
Nonaccrual loans, net | $0 | $1 |
LOANS_HELD_FOR_INVESTMENT_Cred
LOANS HELD FOR INVESTMENT, Credit Quality Indicators (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment, net | $379,031 | $384,961 |
Total loans held for investment | 387,175 | 395,275 |
Pass [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment, net | 334,006 | 330,489 |
Total loans held for investment | 334,006 | 330,489 |
Special Mention [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment, net | 9,227 | 10,995 |
Total loans held for investment | 9,227 | 10,995 |
Substandard [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment, net | 35,755 | 43,352 |
Total loans held for investment | 43,079 | 50,903 |
Doubtful [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment, net | 43 | 125 |
Total loans held for investment | 863 | 2,888 |
Manufactured Housing [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 172,126 | 177,391 |
Manufactured Housing [Member] | Pass [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 159,086 | 164,269 |
Manufactured Housing [Member] | Special Mention [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 0 | 0 |
Manufactured Housing [Member] | Substandard [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 13,040 | 13,122 |
Manufactured Housing [Member] | Doubtful [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 0 | 0 |
Commercial Real Estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 132,034 | 126,677 |
Commercial Real Estate [Member] | Commercial real estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 84,191 | 82,512 |
Commercial Real Estate [Member] | Commercial real estate [Member] | Pass [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 72,511 | 63,793 |
Commercial Real Estate [Member] | Commercial real estate [Member] | Special Mention [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 4,301 | 6,478 |
Commercial Real Estate [Member] | Commercial real estate [Member] | Substandard [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 7,379 | 12,241 |
Commercial Real Estate [Member] | Commercial real estate [Member] | Doubtful [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 0 | 0 |
Commercial Real Estate [Member] | SBA 504 1st trust deed [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 33,805 | 34,502 |
Commercial Real Estate [Member] | SBA 504 1st trust deed [Member] | Pass [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 32,205 | 31,385 |
Commercial Real Estate [Member] | SBA 504 1st trust deed [Member] | Special Mention [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 253 | 1,461 |
Commercial Real Estate [Member] | SBA 504 1st trust deed [Member] | Substandard [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 1,347 | 1,656 |
Commercial Real Estate [Member] | SBA 504 1st trust deed [Member] | Doubtful [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 0 | 0 |
Commercial Real Estate [Member] | Land [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 1,972 | 4,556 |
Commercial Real Estate [Member] | Land [Member] | Pass [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 1,149 | 3,333 |
Commercial Real Estate [Member] | Land [Member] | Special Mention [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 823 | 300 |
Commercial Real Estate [Member] | Land [Member] | Substandard [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 0 | 923 |
Commercial Real Estate [Member] | Land [Member] | Doubtful [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 0 | 0 |
Commercial Real Estate [Member] | Construction [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 12,066 | 5,107 |
Commercial Real Estate [Member] | Construction [Member] | Pass [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 12,066 | 5,107 |
Commercial Real Estate [Member] | Construction [Member] | Special Mention [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 0 | 0 |
Commercial Real Estate [Member] | Construction [Member] | Substandard [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 0 | 0 |
Commercial Real Estate [Member] | Construction [Member] | Doubtful [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 0 | 0 |
Commercial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 31,453 | 32,496 |
Commercial [Member] | Pass [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 25,583 | 27,015 |
Commercial [Member] | Special Mention [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 672 | 997 |
Commercial [Member] | Substandard [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 5,169 | 4,413 |
Commercial [Member] | Doubtful [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 29 | 71 |
SBA [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 25,753 | 30,688 |
SBA [Member] | Non-guaranteed [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 17,609 | 20,374 |
SBA [Member] | Non-guaranteed [Member] | Pass [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 15,193 | 16,302 |
SBA [Member] | Non-guaranteed [Member] | Special Mention [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 59 | 1,514 |
SBA [Member] | Non-guaranteed [Member] | Substandard [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 2,343 | 2,504 |
SBA [Member] | Non-guaranteed [Member] | Doubtful [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 14 | 54 |
SBA [Member] | SBA Guaranteed Loans [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 8,144 | 10,314 |
SBA [Member] | SBA Guaranteed Loans [Member] | Pass [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 0 | 0 |
SBA [Member] | SBA Guaranteed Loans [Member] | Special Mention [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 0 | 0 |
SBA [Member] | SBA Guaranteed Loans [Member] | Substandard [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 7,324 | 7,551 |
SBA [Member] | SBA Guaranteed Loans [Member] | Doubtful [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 820 | 2,763 |
HELOC [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 15,616 | 17,852 |
HELOC [Member] | Pass [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 6,963 | 9,432 |
HELOC [Member] | Special Mention [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 3,119 | 245 |
HELOC [Member] | Substandard [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 5,534 | 8,175 |
HELOC [Member] | Doubtful [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 0 | 0 |
Single Family Real Estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 10,007 | 9,939 |
Single Family Real Estate [Member] | Pass [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 9,064 | 9,622 |
Single Family Real Estate [Member] | Special Mention [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 0 | 0 |
Single Family Real Estate [Member] | Substandard [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 943 | 317 |
Single Family Real Estate [Member] | Doubtful [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 0 | 0 |
Consumer [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 186 | 232 |
Consumer [Member] | Pass [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 186 | 231 |
Consumer [Member] | Special Mention [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 0 | 0 |
Consumer [Member] | Substandard [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | 0 | 1 |
Consumer [Member] | Doubtful [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans held for investment | $0 | $0 |
LOANS_HELD_FOR_INVESTMENT_Trou
LOANS HELD FOR INVESTMENT, Troubled Debt Restructuring (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Troubled debt restructurings (TDR) [Abstract] | ' | ' | ' | ' |
Balance | $3,913 | $1,837 | $6,305 | $13,961 |
Effect on Allowance for Loan Loss | 248 | 388 | 499 | 1,692 |
Balance of Loans with Rate Reduction | 411 | 0 | 591 | 3,440 |
Average Rate Reduction (in hundredths) | 200.00% | 0.00% | 163.00% | 320.00% |
Balance of Loan with Term Extension | 3,913 | 1,837 | 6,305 | 13,961 |
Average extension | '65 months | '161 months | '96 months | '144 months |
Manufactured Housing [Member] | ' | ' | ' | ' |
Troubled debt restructurings (TDR) [Abstract] | ' | ' | ' | ' |
Balance | 265 | 1,474 | 1,405 | 5,715 |
Effect on Allowance for Loan Loss | 15 | 341 | 170 | 888 |
Balance of Loans with Rate Reduction | 265 | 0 | 444 | 294 |
Average Rate Reduction (in hundredths) | 225.00% | 0.00% | 171.00% | 325.00% |
Balance of Loan with Term Extension | 265 | 1,474 | 1,405 | 5,715 |
Average extension | '112 months | '171 months | '135 months | '159 months |
Commercial Real Estate [Member] | ' | ' | ' | ' |
Troubled debt restructurings (TDR) [Abstract] | ' | ' | ' | ' |
Balance | 0 | 0 | 655 | 3,590 |
Effect on Allowance for Loan Loss | 0 | 0 | 45 | 292 |
Balance of Loans with Rate Reduction | 0 | 0 | 0 | 0 |
Average Rate Reduction (in hundredths) | 0.00% | 0.00% | 0.00% | 0.00% |
Balance of Loan with Term Extension | 0 | 0 | 655 | 3,590 |
Average extension | '0 months | '0 months | '8 months | '56 months |
Construction [Member] | ' | ' | ' | ' |
Troubled debt restructurings (TDR) [Abstract] | ' | ' | ' | ' |
Balance | 0 | 0 | 0 | 3,147 |
Effect on Allowance for Loan Loss | 0 | 0 | 0 | 315 |
Balance of Loans with Rate Reduction | 0 | 0 | 0 | 3,146 |
Average Rate Reduction (in hundredths) | 0.00% | 0.00% | 0.00% | 300.00% |
Balance of Loan with Term Extension | 0 | 0 | 0 | 3,147 |
Average extension | '0 months | '0 months | '0 months | '15 months |
Commercial [Member] | ' | ' | ' | ' |
Troubled debt restructurings (TDR) [Abstract] | ' | ' | ' | ' |
Balance | 3,501 | 289 | 4,011 | 1,021 |
Effect on Allowance for Loan Loss | 221 | 30 | 256 | 139 |
Balance of Loans with Rate Reduction | 0 | 0 | 0 | 0 |
Average Rate Reduction (in hundredths) | 0.00% | 0.00% | 0.00% | 0.00% |
Balance of Loan with Term Extension | 3,501 | 289 | 4,011 | 1,021 |
Average extension | '31 months | '49 months | '41 months | '55 months |
SBA [Member] | ' | ' | ' | ' |
Troubled debt restructurings (TDR) [Abstract] | ' | ' | ' | ' |
Balance | 0 | 74 | 87 | 411 |
Effect on Allowance for Loan Loss | 0 | 17 | 16 | 56 |
Balance of Loans with Rate Reduction | 0 | 0 | 0 | 0 |
Average Rate Reduction (in hundredths) | 0.00% | 0.00% | 0.00% | 0.00% |
Balance of Loan with Term Extension | 0 | 74 | 87 | 411 |
Average extension | '0 months | '103 months | '4 months | '78 months |
HELOC [Member] | ' | ' | ' | ' |
Troubled debt restructurings (TDR) [Abstract] | ' | ' | ' | ' |
Balance | 0 | 0 | 0 | 0 |
Effect on Allowance for Loan Loss | 0 | 0 | 0 | 0 |
Balance of Loans with Rate Reduction | 0 | 0 | 0 | 0 |
Average Rate Reduction (in hundredths) | 0.00% | 0.00% | 0.00% | 0.00% |
Balance of Loan with Term Extension | 0 | 0 | 0 | 0 |
Average extension | '0 months | '0 months | '0 months | '0 months |
Single Family Real Estate [Member] | ' | ' | ' | ' |
Troubled debt restructurings (TDR) [Abstract] | ' | ' | ' | ' |
Balance | 147 | 0 | 147 | 77 |
Effect on Allowance for Loan Loss | 12 | 0 | 12 | 2 |
Balance of Loans with Rate Reduction | 146 | 0 | 147 | 0 |
Average Rate Reduction (in hundredths) | 100.00% | 0.00% | 100.00% | 0.00% |
Balance of Loan with Term Extension | $147 | $0 | $147 | $77 |
Average extension | '12 months | '0 months | '12 months | '4 months |
LOANS_HELD_FOR_INVESTMENT_Trou1
LOANS HELD FOR INVESTMENT, Troubled Debt Restructured Loans With Payment Defaults (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Loan | Loan | Nonpayment | Loan | |
Loan | ||||
Troubled debt restructured loans with payment defaults | ' | ' | ' | ' |
Balance | $0 | $124 | $375 | $365 |
Effect on Allowance for Loan Loss | 0 | 4 | 9 | 4 |
Number of Loans | 0 | 3 | 5 | 5 |
Number of consecutive nonpayments for a TDR loan to be deemed default | ' | ' | 2 | ' |
Manufactured Housing [Member] | ' | ' | ' | ' |
Troubled debt restructured loans with payment defaults | ' | ' | ' | ' |
Balance | 0 | 124 | 375 | 124 |
Effect on Allowance for Loan Loss | 0 | 4 | 9 | 4 |
Number of Loans | 0 | 3 | 5 | 3 |
SBA 504 1st TD [Member] | ' | ' | ' | ' |
Troubled debt restructured loans with payment defaults | ' | ' | ' | ' |
Balance | ' | ' | 0 | 173 |
Effect on Allowance for Loan Loss | ' | ' | 0 | 0 |
Number of Loans | ' | ' | 0 | 1 |
SBA [Member] | ' | ' | ' | ' |
Troubled debt restructured loans with payment defaults | ' | ' | ' | ' |
Balance | ' | ' | 0 | 68 |
Effect on Allowance for Loan Loss | ' | ' | $0 | $0 |
Number of Loans | ' | ' | 0 | 1 |
FAIR_VALUE_MEASUREMENT_Details
FAIR VALUE MEASUREMENT (Details) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||||
Assets | ' | ' | ' | ' | ' | ' |
Investment securities available-for-sale | $15,436 | ' | $12,004 | ' | ' | ' |
Servicing assets | 300 | 304 | 348 | 333 | 253 | 0 |
Recurring [Member] | ' | ' | ' | ' | ' | ' |
Assets | ' | ' | ' | ' | ' | ' |
Investment securities available-for-sale | 15,436 | ' | 12,004 | ' | ' | ' |
Interest only strips (included in other assets) | 376 | ' | 426 | ' | ' | ' |
Servicing assets | 300 | ' | 348 | ' | ' | ' |
Total | 16,112 | ' | 12,778 | ' | ' | ' |
Non-recurring [Member] | ' | ' | ' | ' | ' | ' |
Assets | ' | ' | ' | ' | ' | ' |
Total | 90,259 | ' | 102,256 | ' | ' | ' |
Quoted prices in active markets for identical assets (Level 1) [Member] | Recurring [Member] | ' | ' | ' | ' | ' | ' |
Assets | ' | ' | ' | ' | ' | ' |
Investment securities available-for-sale | 67 | ' | 0 | ' | ' | ' |
Interest only strips (included in other assets) | 0 | ' | 0 | ' | ' | ' |
Servicing assets | 0 | ' | 0 | ' | ' | ' |
Total | 67 | ' | 0 | ' | ' | ' |
Quoted prices in active markets for identical assets (Level 1) [Member] | Non-recurring [Member] | ' | ' | ' | ' | ' | ' |
Assets | ' | ' | ' | ' | ' | ' |
Total | 0 | ' | 0 | ' | ' | ' |
Significant other observable inputs (Level 2) [Member] | Recurring [Member] | ' | ' | ' | ' | ' | ' |
Assets | ' | ' | ' | ' | ' | ' |
Investment securities available-for-sale | 15,369 | ' | 12,004 | ' | ' | ' |
Interest only strips (included in other assets) | 0 | ' | 0 | ' | ' | ' |
Servicing assets | 0 | ' | 0 | ' | ' | ' |
Total | 15,369 | ' | 12,004 | ' | ' | ' |
Significant other observable inputs (Level 2) [Member] | Non-recurring [Member] | ' | ' | ' | ' | ' | ' |
Assets | ' | ' | ' | ' | ' | ' |
Total | 82,012 | ' | 91,833 | ' | ' | ' |
Significant unobservable inputs (Level 3) [Member] | Recurring [Member] | ' | ' | ' | ' | ' | ' |
Assets | ' | ' | ' | ' | ' | ' |
Investment securities available-for-sale | 0 | ' | 0 | ' | ' | ' |
Interest only strips (included in other assets) | 376 | ' | 426 | ' | ' | ' |
Servicing assets | 300 | ' | 348 | ' | ' | ' |
Total | 676 | ' | 774 | ' | ' | ' |
Significant unobservable inputs (Level 3) [Member] | Non-recurring [Member] | ' | ' | ' | ' | ' | ' |
Assets | ' | ' | ' | ' | ' | ' |
Total | $8,247 | ' | $10,423 | ' | ' | ' |
FAIR_VALUE_MEASUREMENT_Assets_
FAIR VALUE MEASUREMENT, Assets Measured on Non-recurring Basis (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Summary of fair value measurements of assets measured on a non-recurring basis [Abstract] | ' | ' |
Impaired loans | $19,081 | $29,647 |
Foreclosed real estate and repossessed assets | 3,975 | 1,889 |
Loans held-for-sale at carrying value | 64,187 | 68,694 |
Recurring [Member] | ' | ' |
Summary of fair value measurements of assets measured on a non-recurring basis [Abstract] | ' | ' |
Total | 16,112 | 12,778 |
Non-recurring [Member] | ' | ' |
Summary of fair value measurements of assets measured on a non-recurring basis [Abstract] | ' | ' |
Impaired loans | 17,879 | 27,853 |
Loans held for sale | 68,405 | 72,514 |
Foreclosed real estate and repossessed assets | 3,975 | 1,889 |
Total | 90,259 | 102,256 |
Quoted prices in active markets for identical assets (Level 1) [Member] | Recurring [Member] | ' | ' |
Summary of fair value measurements of assets measured on a non-recurring basis [Abstract] | ' | ' |
Total | 67 | 0 |
Quoted prices in active markets for identical assets (Level 1) [Member] | Non-recurring [Member] | ' | ' |
Summary of fair value measurements of assets measured on a non-recurring basis [Abstract] | ' | ' |
Impaired loans | 0 | 0 |
Loans held for sale | 0 | 0 |
Foreclosed real estate and repossessed assets | 0 | 0 |
Total | 0 | 0 |
Significant other observable inputs (Level 2) [Member] | Recurring [Member] | ' | ' |
Summary of fair value measurements of assets measured on a non-recurring basis [Abstract] | ' | ' |
Total | 15,369 | 12,004 |
Significant other observable inputs (Level 2) [Member] | Non-recurring [Member] | ' | ' |
Summary of fair value measurements of assets measured on a non-recurring basis [Abstract] | ' | ' |
Impaired loans | 9,632 | 17,430 |
Loans held for sale | 68,405 | 72,514 |
Foreclosed real estate and repossessed assets | 3,975 | 1,889 |
Total | 82,012 | 91,833 |
Significant unobservable inputs (Level 3) [Member] | Recurring [Member] | ' | ' |
Summary of fair value measurements of assets measured on a non-recurring basis [Abstract] | ' | ' |
Total | 676 | 774 |
Significant unobservable inputs (Level 3) [Member] | Non-recurring [Member] | ' | ' |
Summary of fair value measurements of assets measured on a non-recurring basis [Abstract] | ' | ' |
Impaired loans | 8,247 | 10,423 |
Loans held for sale | 0 | 0 |
Foreclosed real estate and repossessed assets | 0 | 0 |
Total | $8,247 | $10,423 |
FAIR_VALUE_MEASUREMENT_Fair_Va
FAIR VALUE MEASUREMENT, Fair Value of Financial Instruments (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financial assets [Abstract] | ' | ' |
Interest-bearing deposits in other financial institutions | $3,282 | $3,653 |
Carrying Amount [Member] | ' | ' |
Financial assets [Abstract] | ' | ' |
Cash and cash equivalents | 42,570 | 27,891 |
Interest-bearing deposits in other financial institutions | 3,282 | 3,653 |
FRB and FHLB stock | 3,654 | 4,656 |
Investment securities | 25,585 | 24,040 |
Loans, net | 439,445 | 449,201 |
Financial liabilities [Abstract] | ' | ' |
Deposits | 325,616 | 339,422 |
Time deposits | 105,475 | 94,798 |
Other borrowings | 35,442 | 41,852 |
Fair Value [Member] | ' | ' |
Financial assets [Abstract] | ' | ' |
Cash and cash equivalents | 42,570 | 27,891 |
Interest-bearing deposits in other financial institutions | 3,282 | 3,653 |
FRB and FHLB stock | 3,654 | 4,656 |
Investment securities | 26,036 | 24,769 |
Loans, net | 450,413 | 457,199 |
Financial liabilities [Abstract] | ' | ' |
Deposits | 325,616 | 339,422 |
Time deposits | 105,764 | 96,404 |
Other borrowings | 36,206 | 43,238 |
Level 1 [Member] | ' | ' |
Financial assets [Abstract] | ' | ' |
Cash and cash equivalents | 42,570 | 27,891 |
Interest-bearing deposits in other financial institutions | 3,282 | 3,653 |
FRB and FHLB stock | 0 | 0 |
Investment securities | 67 | 0 |
Loans, net | 0 | 0 |
Financial liabilities [Abstract] | ' | ' |
Deposits | 0 | 0 |
Time deposits | 0 | 0 |
Other borrowings | 0 | 0 |
Level 2 [Member] | ' | ' |
Financial assets [Abstract] | ' | ' |
Cash and cash equivalents | 0 | 0 |
Interest-bearing deposits in other financial institutions | 0 | 0 |
FRB and FHLB stock | 3,654 | 4,656 |
Investment securities | 25,969 | 24,769 |
Loans, net | 442,166 | 446,776 |
Financial liabilities [Abstract] | ' | ' |
Deposits | 325,616 | 339,422 |
Time deposits | 105,764 | 96,404 |
Other borrowings | 36,206 | 43,238 |
Level 3 [Member] | ' | ' |
Financial assets [Abstract] | ' | ' |
Cash and cash equivalents | 0 | 0 |
Interest-bearing deposits in other financial institutions | 0 | 0 |
Investment securities | 0 | 0 |
Loans, net | 8,247 | 10,423 |
Financial liabilities [Abstract] | ' | ' |
Deposits | 0 | 0 |
Time deposits | 0 | 0 |
Other borrowings | $0 | $0 |
BORROWINGS_Details
BORROWINGS (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Aug. 09, 2010 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |
Convertible Subordinated Debentures [Member] | Convertible Subordinated Debentures [Member] | Convertible Subordinated Debentures [Member] | Convertible Subordinated Debentures [Member] | Convertible Subordinated Debentures [Member] | Securities Pledged as Collateral [Member] | Securities Pledged as Collateral [Member] | Loan Pledge as Collateral [Member] | Loan Pledge as Collateral [Member] | Federal Reserve Bank Advances [Member] | Federal Reserve Bank Advances [Member] | ||||||
Between July 2, 2013 and July 1, 2016 [Member] | July 2, 2016 until maturity or redemption [Member] | |||||||||||||||
Federal Home Loan Bank Advances [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
FHLB advances | $34,000,000 | ' | $34,000,000 | ' | $34,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
FHLB advances borrowed weighted average rate (in hundredths) | 2.89% | ' | 2.89% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Securities pledged to FHLB with carrying value | 25,600,000 | ' | 25,600,000 | ' | 24,000,000 | ' | ' | ' | ' | ' | 25,600,000 | 24,000,000 | 23,800,000 | 25,500,000 | ' | ' |
Available for additional borrowing | 69,200,000 | ' | 69,200,000 | ' | 65,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total FHLB interest expense | 300,000 | 300,000 | 700,000 | 900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal Reserve Bank [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of days advances collateralized by eligible loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '28 days | ' |
Outstanding FRB advances | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 |
Borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 123,700,000 | 66,300,000 |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principle amount, (original) | ' | ' | ' | ' | ' | ' | ' | 8,100,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate on convertible debenture (in hundredths) | ' | ' | ' | ' | ' | 9.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion price of convertible debentures (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $4.50 | $6 | ' | ' | ' | ' | ' | ' |
Principal amount converted to equity | ' | ' | ' | ' | ' | 6,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest amount converted to equity | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance of convertible debentures | $1,442,000 | ' | $1,442,000 | ' | $7,852,000 | $1,400,000 | $7,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
STOCKHOLDERS_EQUITY_Details
STOCKHOLDERS' EQUITY (Details) (USD $) | 9 Months Ended | 0 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2013 | Jun. 04, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Common Stock [Member] | Comprehensive Income [Member] | Comprehensive Income [Member] | Comprehensive Income [Member] | Comprehensive Income [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | $53,049,000 | ' | ' | ' | ' | ($103,000) | $35,000 | $35,000 | $139,000 |
Other comprehensive income before reclassifications | ' | ' | ' | ' | ' | -119,000 | 7,000 | -257,000 | 2,000 |
Amounts reclassified from accumulated other comprehensive income | ' | ' | ' | ' | ' | 0 | 0 | 0 | -99,000 |
Net current-period other comprehensive income | ' | ' | ' | ' | ' | -119,000 | 7,000 | -257,000 | -97,000 |
Ending balance | 64,648,000 | ' | ' | ' | ' | -222,000 | 42,000 | -222,000 | 42,000 |
Preferred stock dividend rate for first five years (in hundredths) | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' |
Preferred stock dividend rate after first five years (in hundredths) | ' | ' | 9.00% | ' | ' | ' | ' | ' | ' |
Number of shares purchased by directors (in shares) | ' | 1,100,000 | ' | ' | ' | ' | ' | ' | ' |
Dividends declared | -585,000 | ' | 600,000 | 600,000 | ' | ' | ' | ' | ' |
Accretion of discount | 0 | ' | 200,000 | 200,000 | ' | ' | ' | ' | ' |
Number of quarters dividend default, minimum | ' | ' | 6 | ' | ' | ' | ' | ' | ' |
Dividends accrued | ' | ' | $1,200,000 | ' | ' | ' | ' | ' | ' |
Number of shares can be issued against warrants (in shares) | ' | ' | ' | ' | 521,158 | ' | ' | ' | ' |
Exercise price of warrants (in dollars per shares) | ' | ' | ' | ' | $4.49 | ' | ' | ' | ' |
Term of warrants | ' | ' | ' | ' | '10 years | ' | ' | ' | ' |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Reconciliation of basic and diluted earnings per share [Abstract] | ' | ' | ' | ' |
Net income (loss) | $2,635 | $613 | $5,850 | $841 |
Less: dividends and accretion on preferred stock | 262 | 253 | 786 | 785 |
Net income (loss) available to common stockholders | 2,373 | 360 | 5,064 | 56 |
Add: debenture interest expense and costs, net of income taxes | 23 | 0 | 222 | 0 |
Net income for diluted calculation of earnings per common share | $2,396 | $360 | $5,286 | $56 |
Weighted average number of common shares outstanding - basic (in shares) | 7,865 | 5,990 | 6,731 | 5,990 |
Weighted average number of common shares outstanding - diluted (in shares) | 8,395 | 8,233 | 8,883 | 8,233 |
Earnings (loss) per share [Abstract] | ' | ' | ' | ' |
Basic (in dollars per share) | $0.30 | $0.06 | $0.75 | $0.01 |
Diluted (in dollars per share) | $0.29 | $0.06 | $0.60 | $0.01 |