Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 24, 2013 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | MACATAWA BANK CORP | |
Entity Central Index Key | 1053584 | |
Current Fiscal Year End Date | -19 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 27,261,325 | |
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 | $35,592 | $33,556 |
Federal funds sold and other short -term investments | 178,263 | 192,802 |
Cash and cash equivalents | 213,855 | 226,358 |
Interest-bearing time deposits in other financial institutions | 25,000 | 0 |
Securities available for sale, at fair value | 135,439 | 123,497 |
Securities held to maturity (fair value 2013 - $19,444 and 2012 - $4,301) | 18,995 | 4,300 |
Federal Home Loan Bank (FHLB) stock | 11,236 | 11,236 |
Loans held for sale, at fair value | 2,983 | 8,130 |
Total loans | 1,028,793 | 1,052,348 |
Allowance for loan losses | -21,272 | -23,739 |
Net loans | 1,007,521 | 1,028,609 |
Premises and equipment - net | 52,916 | 53,576 |
Accrued interest receivable | 3,250 | 3,411 |
Bank-owned life insurance | 27,343 | 26,804 |
Other real estate owned | 42,796 | 51,582 |
Net deferred tax asset | 16,859 | 18,780 |
Other assets | 4,487 | 4,435 |
Total assets | 1,562,680 | 1,560,718 |
Deposits | ||
Noninterest-bearing | 352,879 | 339,520 |
Interest-bearing | 935,162 | 946,741 |
Total deposits | 1,288,041 | 1,286,261 |
Other borrowed funds | 89,991 | 91,822 |
Long-term debt | 41,238 | 41,238 |
Subordinated debt | 0 | 1,650 |
Accrued expenses and other liabilities | 7,903 | 9,240 |
Total liabilities | 1,427,173 | 1,430,211 |
Commitments and contingent liabilities | ||
Preferred stock, no par value, 500,000 shares authorized; | ||
Common stock, no par value, 200,000,000 shares authorized; 27,261,325 shares issued and outstanding at September 30, 2013 and 27,203,825 shares issued and outstanding at December 31, 2012 | 188,112 | 187,718 |
Retained deficit | -84,020 | -91,335 |
Accumulated other comprehensive income (loss) | -1,449 | 960 |
Total shareholders' equity | 135,507 | 130,507 |
Total liabilities and shareholders' equity | 1,562,680 | 1,560,718 |
Series A Noncumulative Convertible Perpetual Preferred Stock [Member] | ||
Preferred stock, no par value, 500,000 shares authorized; | ||
Preferred stock | 30,604 | 30,604 |
Series B Noncumulative Convertible Perpetual Preferred Stock [Member] | ||
Preferred stock, no par value, 500,000 shares authorized; | ||
Preferred stock | $2,260 | $2,560 |
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 | ||
Securities held to maturity fair value | $0 | $4,301 |
Shareholders' equity | ||
Preferred stock, par value (in dollars per share) | $0 | $0 |
Preferred stock, shares authorized (in shares) | 500,000 | 500,000 |
Common stock, par value (in dollars per share) | $0 | $0 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 27,261,325 | 27,203,825 |
Common stock, shares outstanding (in shares) | 27,261,325 | 27,203,825 |
Series A Noncumulative Convertible Perpetual Preferred Stock [Member] | ||
Shareholders' equity | ||
Preferred stock, liquidation value (in dollars per share) | $1,000 | $1,000 |
Preferred stock, shares issued (in shares) | 31,290 | 31,290 |
Preferred stock, shares outstanding (in shares) | 31,290 | 31,290 |
Series B Noncumulative Convertible Perpetual Preferred Stock [Member] | ||
Shareholders' equity | ||
Preferred stock, liquidation value (in dollars per share) | $1,000 | $1,000 |
Preferred stock, shares issued (in shares) | 2,300 | 2,600 |
Preferred stock, shares outstanding (in shares) | 2,300 | 2,600 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (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 | $10,995 | $15,532 | $34,156 | $42,295 |
Securities | ||||
Taxable | 476 | 414 | 1,352 | 1,116 |
Tax-exempt | 211 | 102 | 508 | 210 |
FHLB Stock | 98 | 84 | 294 | 252 |
Federal funds sold and other short-term investments | 139 | 137 | 349 | 394 |
Total interest income | 11,919 | 16,269 | 36,659 | 44,267 |
Interest expense | ||||
Deposits | 953 | 1,396 | 3,020 | 4,570 |
Debt and other borrowed funds | 842 | 981 | 2,568 | 3,203 |
Total interest expense | 1,795 | 2,377 | 5,588 | 7,773 |
Net interest income | 10,124 | 13,892 | 31,071 | 36,494 |
Provision for loan losses | -1,500 | -1,250 | -3,250 | -6,600 |
Net interest income after provision for loan losses | 11,624 | 15,142 | 34,321 | 43,094 |
Noninterest income | ||||
Service charges and fees | 1,029 | 810 | 2,917 | 2,381 |
Net gains on mortgage loans | 612 | 940 | 2,145 | 2,192 |
Trust fees | 584 | 595 | 1,797 | 1,802 |
Gain on sale of securities | 0 | 14 | 80 | 73 |
ATM and debit card fees | 1,104 | 1,049 | 3,212 | 3,094 |
Other | 622 | 698 | 1,974 | 2,275 |
Total noninterest income | 3,951 | 4,106 | 12,125 | 11,817 |
Noninterest expense | ||||
Salaries and benefits | 5,834 | 5,621 | 17,359 | 17,065 |
Occupancy of premises | 908 | 948 | 2,759 | 2,860 |
Furniture and equipment | 819 | 806 | 2,414 | 2,491 |
Legal and professional | 192 | 160 | 565 | 551 |
Marketing and promotion | 245 | 213 | 738 | 634 |
Data processing | 326 | 269 | 1,029 | 988 |
FDIC assessment | 317 | 504 | 1,133 | 1,692 |
ATM and debit card processing | 315 | 316 | 967 | 912 |
Bond and D&O Insurance | 187 | 213 | 555 | 696 |
FHLB Advance prepayment penalty | 0 | 322 | 0 | 322 |
Losses on repossessed and foreclosed properties | 1,059 | 706 | 1,412 | 4,236 |
Administration and disposition of problem assets | 752 | 1,018 | 2,660 | 3,737 |
Other | 1,408 | 1,292 | 4,227 | 4,196 |
Total noninterest expenses | 12,362 | 12,388 | 35,818 | 40,380 |
Income before income tax | 3,213 | 6,860 | 10,628 | 14,531 |
Income tax expense | 975 | 275 | 3,313 | 275 |
Net income | 2,238 | 6,585 | 7,315 | 14,256 |
Dividends declared on preferred shares | 0 | 0 | 0 | 0 |
Net income available to common shares | $2,238 | $6,585 | $7,315 | $14,256 |
Basic earnings per common share (in dollars per share) | $0.08 | $0.24 | $0.27 | $0.53 |
Diluted earnings per common share (in dollars per share) | $0.08 | $0.24 | $0.27 | $0.53 |
Cash dividends 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 | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) [Abstract] | ||||
Net income | $2,238,000 | $6,585,000 | $7,315,000 | $14,256,000 |
Unrealized gains (losses): | ||||
Net change in unrealized gains (losses) on securities available for sale | -23,000 | 703,000 | -3,626,000 | 1,225,000 |
Tax effect | 8,000 | -246,000 | 1,269,000 | -429,000 |
Net change in unrealized gains (losses) on securities available for sale, net of tax | -15,000 | 457,000 | -2,357,000 | 796,000 |
Less: reclassification adjustments: | ||||
Reclassification for gains included in net income | 0 | 14,000 | 80,000 | 73,000 |
Tax effect | 0 | -5,000 | -28,000 | -26,000 |
Reclassification for gains included in net income, net of tax | 0 | 9,000 | 52,000 | 47,000 |
Other comprehensive income (loss), net of tax | -15,000 | 448,000 | -2,409,000 | 749,000 |
Comprehensive income | $2,223,000 | $7,033,000 | $4,906,000 | $15,005,000 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) (USD $) | Preferred Stock [Member] | Preferred Stock [Member] | Common Stock [Member] | Retained (Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
In Thousands | Series A Preferred Stock [Member] | Series B Preferred Stock [Member] | ||||
Balance at Dec. 31, 2011 | $30,604 | $2,560 | $187,709 | ($126,825) | $378 | $94,426 |
Net income | 14,256 | 14,256 | ||||
Net change in unrealized gain (loss) on securities available for sale, net of tax | 749 | 749 | ||||
Balance at Sep. 30, 2012 | 30,604 | 2,560 | 187,709 | -112,569 | 1,127 | 109,431 |
Balance at Dec. 31, 2012 | 30,604 | 2,560 | 187,718 | -91,335 | 960 | 130,507 |
Net income | 7,315 | 7,315 | ||||
Conversion of 300 shares of Preferred Stock Series B to 50,000 shares of Common Stock | -300 | 300 | 0 | |||
Net change in unrealized gain (loss) on securities available for sale, net of tax | -2,409 | -2,409 | ||||
Stock compensation expense | 94 | 94 | ||||
Balance at Sep. 30, 2013 | $30,604 | $2,260 | $188,112 | ($84,020) | ($1,449) | $135,507 |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) (Parenthetical) | 9 Months Ended |
Sep. 30, 2013 | |
Preferred Stock [Member] | Series B [Member] | |
Conversion of Preferred Stock Series B to Common Stock (in shares) | 300 |
Common Stock [Member] | |
Conversion of Preferred Stock Series B to Common Stock (in shares) | 50,000 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Cash flows from operating activities | ||
Net income | $7,315,000 | $14,256,000 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation and amortization | 2,261,000 | 2,171,000 |
Stock compensation expense | 94,000 | 0 |
Provision for loan losses | -3,250,000 | -6,600,000 |
Origination of loans for sale | -91,117,000 | -100,885,000 |
Proceeds from sales of loans originated for sale | 98,409,000 | 93,040,000 |
Net gains on mortgage loans | -2,145,000 | -2,192,000 |
Gain on sales of securities | -80,000 | -73,000 |
Write-down of other real estate | 2,415,000 | 4,247,000 |
Net gain on sales of other real estate | -1,004,000 | -11,000 |
Decrease in net deferred tax asset | 3,218,000 | 0 |
FHLB Advance prepayment penalty | 0 | 322,000 |
Decrease in accrued interest receivable and other assets | 109,000 | 1,050,000 |
Earnings in bank-owned life insurance | -539,000 | -657,000 |
Increase in accrued expenses and other liabilities | 289,000 | 1,445,000 |
Net cash from operating activities | 15,975,000 | 6,113,000 |
Cash flows from investing activities | ||
Loan originations and payments, net | 21,168,000 | 44,018,000 |
Change in interest-bearing deposits in other financial institutions | -25,000,000 | 0 |
Purchases of securities available for sale | -34,450,000 | -98,909,000 |
Purchases of securities held to maturity | -19,347,000 | -4,000,000 |
Proceeds from: | ||
Maturities and calls of securities available for sale | 12,417,000 | 31,612,000 |
Sales of securities available for sale | 3,778,000 | 4,595,000 |
Principal paydowns on securities | 5,199,000 | 2,198,000 |
Sales of other real estate | 10,545,000 | 13,426,000 |
Additions to premises and equipment | -1,087,000 | -522,000 |
Net cash from investing activities | -26,777,000 | -7,582,000 |
Cash flows from financing activities | ||
Change in in-market deposits | 1,780,000 | 29,459,000 |
Repayments of other borrowed funds and subordinated debt | -3,481,000 | -36,781,000 |
Net cash from financing activities | -1,701,000 | -7,322,000 |
Net change in cash and cash equivalents | -12,503,000 | -8,791,000 |
Cash and cash equivalents at beginning of period | 226,358,000 | 243,042,000 |
Cash and cash equivalents at end of period | 213,855,000 | 234,251,000 |
Supplemental cash flow information | ||
Interest paid | 7,542,000 | 6,754,000 |
Income taxes paid | 95,000 | 100,000 |
Supplemental noncash disclosures: | ||
Transfers from loans to other real estate | 3,170,000 | 9,002,000 |
Securities settlement | -1,626,000 | 1,393,000 |
FHLB advance repayment not settled | $0 | $20,000,000 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2013 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Principles of Consolidation: The accompanying consolidated financial statements include the accounts of Macatawa Bank Corporation ("the Company", "our", "we") and its wholly-owned subsidiary, Macatawa Bank ("the Bank"). All significant intercompany accounts and transactions have been eliminated in consolidation. | |
Macatawa Bank is a Michigan chartered bank with depository accounts insured by the Federal Deposit Insurance Corporation. The Bank operates 26 full service branch offices providing a full range of commercial and consumer banking and trust services in Kent County, Ottawa County, and northern Allegan County, Michigan. | |
The Company owns all of the common stock of Macatawa Statutory Trust I and Macatawa Statutory Trust II. These are grantor trusts that issued trust preferred securities and are not consolidated with the Company under accounting principles generally accepted in the United States of America. | |
Basis of Presentation: The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring accruals) believed necessary for a fair presentation have been included. | |
Operating results for the three and nine month periods ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. For further information, refer to the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2012. | |
Use of Estimates: To prepare financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and future results could differ. The allowance for loan losses, valuation of deferred tax assets, loss contingencies, fair value of other real estate owned and fair values of financial instruments are particularly subject to change. | |
Regulatory Developments: | |
Release of Memorandum of Understanding with Macatawa Bank and its Regulators | |
On April 12, 2013, the Federal Deposit Insurance Corporation (“FDIC”) and the Michigan Department of Insurance and Financial Services (“DIFS”), the primary banking regulators of the Bank, notified the Bank that the Bank’s Memorandum of Understanding (“MOU”) with the FDIC and DIFS had served its purpose and was released. As a result, the Bank is no longer subject to any regulatory order, memorandum of understanding or other similar regulatory directive or proceeding and has returned to a normal regulatory operating environment. | |
The MOU documented an understanding the Bank reached with regulators in connection with termination of the Bank’s former Consent Order on March 2, 2012. The requirements of the MOU which are described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 are no longer applicable to the Bank. In particular, the enhanced regulatory capital requirements of the MOU no longer apply to the Bank and the Bank is no longer required to obtain the prior written consent of the FDIC and DIFS before the Bank declares or pays dividends. | |
We believe the FDIC and DIFS released the MOU as a result of: (i) the Bank's substantial compliance with the MOU, (ii) our implementation of enhanced corporate governance practices and disciplined business and banking principles, (iii) substantial improvements in the Bank's asset quality, (iv) improved liquidity, (v) continued improvement in the Bank's financial condition and earnings performance, and (vi) Bank regulatory capital levels well in excess of the levels required to be classified as "well capitalized" for regulatory purposes and to comply with our MOU due to our successful capital raise and the Bank's retained earnings. | |
Recission of Board Resolution | |
In connection with the termination of the Company’s Written Agreement by the Federal Reserve Bank of Chicago (“FRB”) on October 26, 2012, the Board of Directors of the Company adopted a resolution (the “Board Resolution”) requiring the Company to obtain written approval from the FRB before declaring or paying any dividends, increasing holding company debt, or redeeming any capital stock. By letter dated August 1, 2013, the FRB advised the Company that, based on the overall satisfactory condition of the organization, the FRB poses no objection should the Board of Directors choose to rescind the Board Resolution. Accordingly, the Company's Board of Directors rescinded the Board Resolution as of August 1, 2013. | |
Reclassifications: Some items in the prior period financial statements were reclassified to conform to the current presentation. | |
Allowance for Loan Losses: The allowance for loan losses (allowance) is a valuation allowance for probable incurred credit losses inherent in our loan portfolio, increased by the provision for loan losses and recoveries, and decreased by charge-offs of loans. Management believes the allowance for loan losses balance to be adequate based on known and inherent risks in the portfolio, past loan loss experience, information about specific borrower situations and estimated collateral values, economic conditions and other relevant factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged-off. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Management continues its collection efforts on previously charged-off balances and applies recoveries as additions to the allowance for loan losses. | |
The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component covers non-classified loans and is based on historical loss experience adjusted for current qualitative factors. The Company maintains a loss migration analysis that tracks loan losses and recoveries based on loan class and the loan risk grade assignment for commercial loans. At September 30, 2013, an 18 month annualized historical loss experience was used for commercial loans and a 12 month historical loss experience period was applied to residential mortgage loans and consumer loans. These historical loss percentages are adjusted (both upwards and downwards) for certain qualitative factors, including economic trends, credit quality trends, valuation trends, concentration risk, quality of loan review, changes in personnel, external factors and other considerations. | |
A loan is impaired when, based on current information and events, it is believed to be probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified and a concession has been made, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. | |
Commercial and commercial real estate loans with relationship balances exceeding $500,000 and an internal risk grading of 6 or worse are evaluated for impairment. If a loan is impaired, a portion of the allowance is allocated and the loan is reported at the present value of estimated future cash flows using the loan’s existing interest rate or at the fair value of collateral, less estimated costs to sell, if repayment is expected solely from the collateral. Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans, are collectively evaluated for impairment and they are not separately identified for impairment disclosures. | |
Troubled debt restructurings are also considered impaired with impairment generally measured at the present value of estimated future cash flows using the loan’s effective rate at inception or using the fair value of collateral, less estimated costs to sell, if repayment is expected solely from the collateral. | |
Foreclosed Assets: Assets acquired through or instead of loan foreclosure, primarily other real estate owned, are initially recorded at fair value less estimated costs to sell when acquired, establishing a new cost basis. If fair value declines, a valuation allowance is recorded through expense. Costs after acquisition are expensed unless they add value to the property. | |
Income Taxes: Income tax expense is the sum of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. | |
We recognize a tax position as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded. We recognize interest and penalties related to income tax matters in income tax expense. | |
Adoption of New Accounting Standards: The Financial Accounting Standards Board (“FASB”) has issued ASU 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This ASU is intended to improve the reporting of reclassifications out of accumulated other comprehensive income. The ASU requires an entity to report, either on the face of the statement where net income is presented or in the notes to the financial statements, the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S. GAAP to be reclassified in their entirety to net income. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under U.S. GAAP that provide additional detail about those amounts. The amendments in this ASU apply to all entities that issue financial statements that are presented in conformity with U.S. GAAP and that report items of other comprehensive income. For public entities, the amendments in this ASU are effective prospectively for reporting periods beginning after December 15, 2012. The Company adopted this ASU on January 1, 2013 by including the required disclosures in Note 2 to the consolidated financial statements. |
SECURITIES
SECURITIES | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
SECURITIES [Abstract] | |||||||||||||||||||||||||
SECURITIES | NOTE 2 – SECURITIES | ||||||||||||||||||||||||
The amortized cost and fair value of securities at period-end were as follows (dollars in thousands): | |||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||
Available for Sale: | |||||||||||||||||||||||||
U.S. Treasury and federal agency securities | $ | 53,606 | $ | 92 | $ | (1,210 | ) | $ | 52,488 | ||||||||||||||||
U.S. Agency MBS and CMOs | 18,848 | 21 | (267 | ) | 18,602 | ||||||||||||||||||||
Tax-exempt state and municipal bonds | 25,455 | 56 | (946 | ) | 24,565 | ||||||||||||||||||||
Taxable state and municipal bonds | 27,821 | 352 | (312 | ) | 27,861 | ||||||||||||||||||||
Corporate bonds and other debt securities | 10,439 | 59 | (63 | ) | 10,435 | ||||||||||||||||||||
Other equity securities | 1,500 | --- | (12 | ) | 1,488 | ||||||||||||||||||||
$ | 137,669 | $ | 580 | $ | (2,810 | ) | $ | 135,439 | |||||||||||||||||
Held to Maturity | |||||||||||||||||||||||||
State and municipal bonds | $ | 18,995 | $ | 449 | $ | --- | $ | 19,444 | |||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Available for Sale: | |||||||||||||||||||||||||
U.S. Treasury and federal agency securities | $ | 42,245 | $ | 340 | $ | (21 | ) | $ | 42,564 | ||||||||||||||||
U. S. Agency MBS and CMOs | 23,495 | 272 | (6 | ) | 23,761 | ||||||||||||||||||||
Tax-exempt state and municipal bonds | 20,598 | 244 | (49 | ) | 20,793 | ||||||||||||||||||||
Taxable state and municipal bonds | 26,726 | 619 | (49 | ) | 27,296 | ||||||||||||||||||||
Corporate bonds | 7,456 | 77 | (7 | ) | 7,526 | ||||||||||||||||||||
Other equity securities | 1,500 | 57 | --- | 1,557 | |||||||||||||||||||||
$ | 122,020 | $ | 1,609 | $ | (132 | ) | $ | 123,497 | |||||||||||||||||
Held to Maturity: | |||||||||||||||||||||||||
State and municipal bonds | $ | 4,300 | $ | 1 | $ | --- | $ | 4,301 | |||||||||||||||||
There were no sales of securities in the three month period ended September 30, 2013. Proceeds from the sale of securities available for sale were $3.8 million in the nine month period ended September 30, 2013 resulting in net gains on sale of $80,000 as reported in the consolidated statements of income. This resulted in reclassifications of $80,000 ($52,000 net of tax) from accumulated other comprehensive income to gain on sale of securities in the consolidated statements of income in the nine month period ended September 30, 2013. Proceeds from the sale of securities available for sale were $540,000 and $4.6 million, respectively, for the three and nine month periods ended September 30, 2012, resulting in net gains on sale of $14,000 and $73,000, respectively, as reported in the consolidated statements of income. This resulted in reclassifications of $14,000 ($9,000 net of tax) and $73,000 ($47,000 net of tax), respectively, from accumulated other comprehensive income to gain on sale of securities in the consolidated statements of income in the three and nine month periods ended September 30, 2012. | |||||||||||||||||||||||||
Contractual maturities of debt securities at September 30, 2013 were as follows (dollars in thousands): | |||||||||||||||||||||||||
Held–to-Maturity Securities | Available-for-Sale Securities | ||||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | ||||||||||||||||||||||
Cost | Value | Cost | Value | ||||||||||||||||||||||
Due in one year or less | $ | 12,630 | $ | 13,026 | $ | 4,195 | $ | 4,227 | |||||||||||||||||
Due from one to five years | 430 | 430 | 56,572 | 56,585 | |||||||||||||||||||||
Due from five to ten years | 5,655 | 5,708 | 44,609 | 43,265 | |||||||||||||||||||||
Due after ten years | 280 | 280 | 30,793 | 29,874 | |||||||||||||||||||||
$ | 18,995 | $ | 19,444 | $ | 136,169 | $ | 133,951 | ||||||||||||||||||
Securities with unrealized losses at September 30, 2013 and December 31, 2012, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows (dollars in thousands): | |||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
30-Sep-13 | Value | Loss | Value | Loss | Value | Loss | |||||||||||||||||||
U.S. Treasury and federal agency securities | $ | 43,255 | $ | (1,210 | ) | $ | --- | $ | --- | $ | 43,255 | $ | (1,210 | ) | |||||||||||
U.S. Agency MBS and CMOs | 15,930 | (267 | ) | --- | --- | 15,930 | (267 | ) | |||||||||||||||||
Tax-exempt state and municipal bonds | 20,051 | (946 | ) | --- | --- | 20,051 | (946 | ) | |||||||||||||||||
Taxable state and municipal bonds | 10,505 | (285 | ) | 756 | (27 | ) | 11,261 | (312 | ) | ||||||||||||||||
Corporate bonds and other debt securities | 4,157 | (63 | ) | --- | --- | 4,157 | (63 | ) | |||||||||||||||||
Other equity securities | 1,488 | (12 | ) | --- | --- | 1,488 | (12 | ) | |||||||||||||||||
Total temporarily impaired | $ | 95,386 | $ | (2,783 | ) | $ | 756 | $ | (27 | ) | $ | 96,142 | $ | (2,810 | ) | ||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
31-Dec-12 | Value | Loss | Value | Loss | Value | Loss | |||||||||||||||||||
U.S. Treasury and federal agency securities | $ | 10,977 | $ | (21 | ) | $ | --- | $ | --- | $ | 10,977 | $ | (21 | ) | |||||||||||
U.S. Agency MBS and CMOs | 3,373 | (6 | ) | --- | --- | 3,373 | (6 | ) | |||||||||||||||||
Tax-exempt state and municipal bonds | 4,613 | (49 | ) | --- | --- | 4,613 | (49 | ) | |||||||||||||||||
Taxable state and municipal bonds | 4,661 | (49 | ) | --- | --- | 4,661 | (49 | ) | |||||||||||||||||
Corporate bonds | 3,945 | (7 | ) | --- | --- | 3,945 | (7 | ) | |||||||||||||||||
Other equity securities | --- | --- | --- | --- | --- | --- | |||||||||||||||||||
Total temporarily impaired | $ | 27,569 | $ | (132 | ) | $ | --- | $ | --- | $ | 27,569 | $ | (132 | ) | |||||||||||
Other-Than-Temporary-Impairment | |||||||||||||||||||||||||
Management evaluates securities for other-than-temporary impairment ("OTTI") at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. Management determined that no OTTI charges were necessary during the three and nine month periods ended September 30, 2013 and 2012. | |||||||||||||||||||||||||
No securities were pledged as security at September 30, 2013. Securities with a carrying value of approximately $7.4 million were pledged as security for public deposits, letters of credit and for other purposes required or permitted by law at December 31, 2012. |
LOANS
LOANS | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
LOANS [Abstract] | |||||||||||||||||||||||||||||||||
LOANS | NOTE 3 – LOANS | ||||||||||||||||||||||||||||||||
Portfolio loans were as follows (dollars in thousands): | |||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 253,216 | $ | 259,700 | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Residential developed | 20,805 | 26,090 | |||||||||||||||||||||||||||||||
Unsecured to residential developers | 7,326 | 5,547 | |||||||||||||||||||||||||||||||
Vacant and unimproved | 48,977 | 56,525 | |||||||||||||||||||||||||||||||
Commercial development | 4,319 | 1,799 | |||||||||||||||||||||||||||||||
Residential improved | 77,414 | 75,813 | |||||||||||||||||||||||||||||||
Commercial improved | 243,688 | 255,738 | |||||||||||||||||||||||||||||||
Manufacturing and industrial | 79,403 | 81,447 | |||||||||||||||||||||||||||||||
Total commercial real estate | 481,932 | 502,959 | |||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||
Residential mortgage | 185,025 | 182,625 | |||||||||||||||||||||||||||||||
Unsecured | 1,464 | 1,683 | |||||||||||||||||||||||||||||||
Home equity | 96,790 | 92,764 | |||||||||||||||||||||||||||||||
Other secured | 10,366 | 12,617 | |||||||||||||||||||||||||||||||
Total consumer | 293,645 | 289,689 | |||||||||||||||||||||||||||||||
Total loans | 1,028,793 | 1,052,348 | |||||||||||||||||||||||||||||||
Allowance for loan losses | (21,272 | ) | (23,739 | ) | |||||||||||||||||||||||||||||
$ | 1,007,521 | $ | 1,028,609 | ||||||||||||||||||||||||||||||
Activity in the allowance for loan losses by portfolio segment was as follows (dollars in thousands): | |||||||||||||||||||||||||||||||||
Commercial and | Commercial | ||||||||||||||||||||||||||||||||
Three months ended September 30, 2013: | Industrial | Real Estate | Consumer | Unallocated | Total | ||||||||||||||||||||||||||||
Beginning balance | $ | 5,602 | $ | 12,324 | $ | 4,255 | $ | 67 | $ | 22,248 | |||||||||||||||||||||||
Charge-offs | (23 | ) | (202 | ) | (129 | ) | --- | (354 | ) | ||||||||||||||||||||||||
Recoveries | 585 | 253 | 40 | --- | 878 | ||||||||||||||||||||||||||||
Provision for loan losses | (446 | ) | (1,253 | ) | 230 | (31 | ) | (1,500 | ) | ||||||||||||||||||||||||
Ending Balance | $ | 5,718 | $ | 11,122 | $ | 4,396 | $ | 36 | $ | 21,272 | |||||||||||||||||||||||
Commercial and | Commercial | ||||||||||||||||||||||||||||||||
Three months ended September 30, 2012: | Industrial | Real Estate | Consumer | Unallocated | Total | ||||||||||||||||||||||||||||
Beginning balance | $ | 6,638 | $ | 15,239 | $ | 5,254 | $ | 49 | $ | 27,180 | |||||||||||||||||||||||
Charge-offs | (239 | ) | (173 | ) | (203 | ) | --- | (615 | ) | ||||||||||||||||||||||||
Recoveries | 110 | 777 | 69 | --- | 956 | ||||||||||||||||||||||||||||
Provision for loan losses | (575 | ) | (552 | ) | (131 | ) | 8 | (1,250 | ) | ||||||||||||||||||||||||
Ending Balance | $ | 5,934 | $ | 15,291 | $ | 4,989 | $ | 57 | $ | 26,271 | |||||||||||||||||||||||
Commercial and | Commercial | ||||||||||||||||||||||||||||||||
Nine months ended September 30, 2013: | Industrial | Real Estate | Consumer | Unallocated | Total | ||||||||||||||||||||||||||||
Beginning balance | $ | 6,459 | $ | 13,457 | $ | 3,787 | $ | 36 | $ | 23,739 | |||||||||||||||||||||||
Charge-offs | (272 | ) | (661 | ) | (762 | ) | --- | (1,695 | ) | ||||||||||||||||||||||||
Recoveries | 1,011 | 1,248 | 219 | --- | 2,478 | ||||||||||||||||||||||||||||
Provision for loan losses | (1,480 | ) | (2,922 | ) | 1,152 | --- | (3,250 | ) | |||||||||||||||||||||||||
Ending Balance | $ | 5,718 | $ | 11,122 | $ | 4,396 | $ | 36 | $ | 21,272 | |||||||||||||||||||||||
Commercial and | Commercial | ||||||||||||||||||||||||||||||||
Nine months ended September 30, 2012: | Industrial | Real Estate | Consumer | Unallocated | Total | ||||||||||||||||||||||||||||
Beginning balance | $ | 6,313 | $ | 20,475 | $ | 4,821 | $ | 32 | $ | 31,641 | |||||||||||||||||||||||
Charge-offs | (1,228 | ) | (2,679 | ) | (1,104 | ) | --- | (5,011 | ) | ||||||||||||||||||||||||
Recoveries | 390 | 5,662 | 189 | --- | 6,241 | ||||||||||||||||||||||||||||
Provision for loan losses | 459 | (8,167 | ) | 1,083 | 25 | (6,600 | ) | ||||||||||||||||||||||||||
Ending Balance | $ | 5,934 | $ | 15,291 | $ | 4,989 | $ | 57 | $ | 26,271 | |||||||||||||||||||||||
The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method (dollars in thousands): | |||||||||||||||||||||||||||||||||
Commercial and | Commercial | ||||||||||||||||||||||||||||||||
September 30, 2013: | Industrial | Real Estate | Consumer | Unallocated | Total | ||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Ending allowance attributable to loans: | |||||||||||||||||||||||||||||||||
Individually reviewed for impairment | $ | 2,193 | $ | 1,555 | $ | 914 | $ | --- | $ | 4,662 | |||||||||||||||||||||||
Collectively evaluated for impairment | 3,525 | 9,567 | 3,482 | 36 | 16,610 | ||||||||||||||||||||||||||||
Total ending allowance balance | $ | 5,718 | $ | 11,122 | $ | 4,396 | $ | 36 | $ | 21,272 | |||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||
Individually reviewed for impairment | $ | 12,218 | $ | 45,895 | $ | 15,030 | $ | --- | $ | 73,143 | |||||||||||||||||||||||
Collectively evaluated for impairment | 240,998 | 436,037 | 278,615 | --- | 955,650 | ||||||||||||||||||||||||||||
Total ending loans balance | $ | 253,216 | $ | 481,932 | $ | 293,645 | $ | --- | $ | 1,028,793 | |||||||||||||||||||||||
Commercial and | Commercial | ||||||||||||||||||||||||||||||||
December 31, 2012: | Industrial | Real Estate | Consumer | Unallocated | Total | ||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Ending allowance attributable to loans: | |||||||||||||||||||||||||||||||||
Individually reviewed for impairment | $ | 2,920 | $ | 2,418 | $ | 716 | $ | --- | $ | 6,054 | |||||||||||||||||||||||
Collectively evaluated for impairment | 3,539 | 11,039 | 3,071 | 36 | 17,685 | ||||||||||||||||||||||||||||
Total ending allowance balance | $ | 6,459 | $ | 13,457 | $ | 3,787 | $ | 36 | $ | 23,739 | |||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||
Individually reviewed for impairment | $ | 14,390 | $ | 54,831 | $ | 14,086 | $ | --- | $ | 83,307 | |||||||||||||||||||||||
Collectively evaluated for impairment | 245,310 | 448,128 | 275,603 | --- | 969,041 | ||||||||||||||||||||||||||||
Total ending loans balance | $ | 259,700 | $ | 502,959 | $ | 289,689 | $ | --- | $ | 1,052,348 | |||||||||||||||||||||||
The following table presents loans individually evaluated for impairment by class of loans as of September 30, 2013 (dollars in thousands): | |||||||||||||||||||||||||||||||||
Unpaid | |||||||||||||||||||||||||||||||||
Principal | Recorded | Allowance | |||||||||||||||||||||||||||||||
Balance | Investment | Allocated | |||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 3,250 | $ | 3,247 | $ | --- | |||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Residential developed | 5,344 | 4,411 | --- | ||||||||||||||||||||||||||||||
Unsecured to residential developers | --- | --- | --- | ||||||||||||||||||||||||||||||
Vacant and unimproved | 413 | 413 | --- | ||||||||||||||||||||||||||||||
Commercial development | 586 | 586 | --- | ||||||||||||||||||||||||||||||
Residential improved | 1,089 | 1,089 | --- | ||||||||||||||||||||||||||||||
Commercial improved | 3,727 | 3,525 | --- | ||||||||||||||||||||||||||||||
Manufacturing and industrial | 808 | 808 | --- | ||||||||||||||||||||||||||||||
11,967 | 10,832 | --- | |||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Residential mortgage | --- | --- | --- | ||||||||||||||||||||||||||||||
Unsecured | --- | --- | --- | ||||||||||||||||||||||||||||||
Home equity | --- | --- | --- | ||||||||||||||||||||||||||||||
Other secured | --- | --- | --- | ||||||||||||||||||||||||||||||
--- | --- | --- | |||||||||||||||||||||||||||||||
$ | 15,217 | $ | 14,079 | $ | --- | ||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 8,971 | $ | 8,971 | $ | 2,193 | |||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Residential developed | 1,449 | 1,449 | 158 | ||||||||||||||||||||||||||||||
Unsecured to residential developers | --- | --- | --- | ||||||||||||||||||||||||||||||
Vacant and unimproved | 1,943 | 1,943 | 85 | ||||||||||||||||||||||||||||||
Commercial development | 2,061 | 2,061 | 37 | ||||||||||||||||||||||||||||||
Residential improved | 9,776 | 9,776 | 328 | ||||||||||||||||||||||||||||||
Commercial improved | 14,087 | 14,087 | 827 | ||||||||||||||||||||||||||||||
Manufacturing and industrial | 5,747 | 5,747 | 120 | ||||||||||||||||||||||||||||||
35,063 | 35,063 | 1,555 | |||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Residential mortgage | 9,219 | 9,219 | 561 | ||||||||||||||||||||||||||||||
Unsecured | --- | --- | --- | ||||||||||||||||||||||||||||||
Home equity | 5,811 | 5,811 | 353 | ||||||||||||||||||||||||||||||
Other secured | --- | --- | --- | ||||||||||||||||||||||||||||||
15,030 | 15,030 | 914 | |||||||||||||||||||||||||||||||
$ | 59,064 | $ | 59,064 | $ | 4,662 | ||||||||||||||||||||||||||||
Total | $ | 74,281 | $ | 73,143 | $ | 4,662 | |||||||||||||||||||||||||||
The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2012 (dollars in thousands): | |||||||||||||||||||||||||||||||||
Unpaid | |||||||||||||||||||||||||||||||||
Principal | Recorded | Allowance | |||||||||||||||||||||||||||||||
Balance | Investment | Allocated | |||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 2,515 | $ | 2,512 | $ | --- | |||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Residential developed | 7,136 | 6,283 | --- | ||||||||||||||||||||||||||||||
Unsecured to residential developers | --- | --- | --- | ||||||||||||||||||||||||||||||
Vacant and unimproved | 2,321 | 2,136 | --- | ||||||||||||||||||||||||||||||
Commercial development | 213 | 213 | --- | ||||||||||||||||||||||||||||||
Residential improved | 3,293 | 3,019 | --- | ||||||||||||||||||||||||||||||
Commercial improved | 7,268 | 6,127 | --- | ||||||||||||||||||||||||||||||
Manufacturing and industrial | 3,686 | 3,686 | --- | ||||||||||||||||||||||||||||||
23,917 | 21,464 | --- | |||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Residential mortgage | 4,614 | 3,062 | --- | ||||||||||||||||||||||||||||||
Unsecured | --- | --- | --- | ||||||||||||||||||||||||||||||
Home equity | --- | --- | --- | ||||||||||||||||||||||||||||||
Other secured | --- | --- | --- | ||||||||||||||||||||||||||||||
4,614 | 3,062 | --- | |||||||||||||||||||||||||||||||
$ | 31,046 | $ | 27,038 | $ | --- | ||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 11,878 | $ | 11,878 | $ | 2,920 | |||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Residential developed | 1,524 | 1,524 | 337 | ||||||||||||||||||||||||||||||
Unsecured to residential developers | --- | --- | --- | ||||||||||||||||||||||||||||||
Vacant and unimproved | 1,688 | 1,688 | 34 | ||||||||||||||||||||||||||||||
Commercial development | --- | --- | --- | ||||||||||||||||||||||||||||||
Residential improved | 10,063 | 10,063 | 842 | ||||||||||||||||||||||||||||||
Commercial improved | 15,386 | 15,386 | 1,071 | ||||||||||||||||||||||||||||||
Manufacturing and industrial | 4,706 | 4,706 | 134 | ||||||||||||||||||||||||||||||
33,367 | 33,367 | 2,418 | |||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Residential mortgage | 10,220 | 10,220 | 664 | ||||||||||||||||||||||||||||||
Unsecured | --- | --- | --- | ||||||||||||||||||||||||||||||
Home equity | 804 | 804 | 52 | ||||||||||||||||||||||||||||||
Other secured | --- | --- | --- | ||||||||||||||||||||||||||||||
11,024 | 11,024 | 716 | |||||||||||||||||||||||||||||||
$ | 56,269 | $ | 56,269 | $ | 6,054 | ||||||||||||||||||||||||||||
Total | $ | 87,315 | $ | 83,307 | $ | 6,054 | |||||||||||||||||||||||||||
The following table presents information regarding average balances of impaired loans and interest recognized on impaired loans for the three and nine month periods ended September 30, 2013 and 2012 (dollars in thousands): | |||||||||||||||||||||||||||||||||
Three | Three | Nine | Nine | ||||||||||||||||||||||||||||||
Months | Months | Months | Months | ||||||||||||||||||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Average of impaired loans during the period: | |||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 12,325 | $ | 12,415 | $ | 14,794 | $ | 15,388 | |||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Residential developed | 5,898 | 7,989 | 6,526 | 8,293 | |||||||||||||||||||||||||||||
Unsecured to residential developers | --- | --- | --- | --- | |||||||||||||||||||||||||||||
Vacant and unimproved | 2,542 | 4,219 | 3,073 | 3,854 | |||||||||||||||||||||||||||||
Commercial development | 1,233 | 215 | 421 | 217 | |||||||||||||||||||||||||||||
Residential improved | 11,072 | 12,707 | 11,759 | 13,564 | |||||||||||||||||||||||||||||
Commercial improved | 19,449 | 17,766 | 20,809 | 17,049 | |||||||||||||||||||||||||||||
Manufacturing and industrial | 6,105 | 9,104 | 6,420 | 9,291 | |||||||||||||||||||||||||||||
Consumer | 14,984 | 15,992 | 14,599 | 16,018 | |||||||||||||||||||||||||||||
Interest income recognized during impairment: | |||||||||||||||||||||||||||||||||
Commercial and industrial | 186 | 263 | 915 | 1,090 | |||||||||||||||||||||||||||||
Commercial real estate | 478 | 637 | 1,656 | 1,848 | |||||||||||||||||||||||||||||
Consumer | 141 | 141 | 409 | 419 | |||||||||||||||||||||||||||||
Cash-basis interest income recognized | |||||||||||||||||||||||||||||||||
Commercial and industrial | 194 | 250 | 914 | 1,065 | |||||||||||||||||||||||||||||
Commercial real estate | 465 | 637 | 1,648 | 1,852 | |||||||||||||||||||||||||||||
Consumer | 141 | 141 | 402 | 417 | |||||||||||||||||||||||||||||
Nonaccrual loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. | |||||||||||||||||||||||||||||||||
The following table presents the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of September 30, 2013: | |||||||||||||||||||||||||||||||||
Over 90 | |||||||||||||||||||||||||||||||||
days | |||||||||||||||||||||||||||||||||
Nonaccrual | Accruing | ||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 4,240 | $ | --- | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Residential developed | 2,216 | --- | |||||||||||||||||||||||||||||||
Unsecured to residential developers | --- | --- | |||||||||||||||||||||||||||||||
Vacant and unimproved | 435 | --- | |||||||||||||||||||||||||||||||
Commercial development | 23 | --- | |||||||||||||||||||||||||||||||
Residential improved | 485 | --- | |||||||||||||||||||||||||||||||
Commercial improved | 1,603 | 172 | |||||||||||||||||||||||||||||||
Manufacturing and industrial | --- | --- | |||||||||||||||||||||||||||||||
4,762 | 172 | ||||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Residential mortgage | 639 | --- | |||||||||||||||||||||||||||||||
Unsecured | 33 | --- | |||||||||||||||||||||||||||||||
Home equity | 374 | --- | |||||||||||||||||||||||||||||||
Other secured | --- | --- | |||||||||||||||||||||||||||||||
1,046 | --- | ||||||||||||||||||||||||||||||||
Total | $ | 10,048 | $ | 172 | |||||||||||||||||||||||||||||
The following table presents the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of December 31, 2012: | |||||||||||||||||||||||||||||||||
Over 90 | |||||||||||||||||||||||||||||||||
days | |||||||||||||||||||||||||||||||||
Nonaccrual | Accruing | ||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 7,657 | $ | --- | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Residential developed | 3,024 | --- | |||||||||||||||||||||||||||||||
Unsecured to residential developers | --- | --- | |||||||||||||||||||||||||||||||
Vacant and unimproved | 706 | --- | |||||||||||||||||||||||||||||||
Commercial development | 2 | 196 | |||||||||||||||||||||||||||||||
Residential improved | 1,159 | --- | |||||||||||||||||||||||||||||||
Commercial improved | 1,521 | 422 | |||||||||||||||||||||||||||||||
Manufacturing and industrial | 225 | --- | |||||||||||||||||||||||||||||||
6,637 | 618 | ||||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Residential mortgage | 447 | --- | |||||||||||||||||||||||||||||||
Unsecured | 19 | --- | |||||||||||||||||||||||||||||||
Home equity | 625 | --- | |||||||||||||||||||||||||||||||
Other secured | --- | --- | |||||||||||||||||||||||||||||||
1,091 | --- | ||||||||||||||||||||||||||||||||
Total | $ | 15,385 | $ | 618 | |||||||||||||||||||||||||||||
The following table presents the aging of the recorded investment in past due loans as of September 30, 2013 by class of loans (dollars in thousands): | |||||||||||||||||||||||||||||||||
30-90 | Greater Than | Total | Loans Not | ||||||||||||||||||||||||||||||
Days | 90 Days | Past Due | Past Due | Total | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 103 | $ | 17 | $ | 120 | $ | 253,096 | $ | 253,216 | |||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Residential developed | --- | 1,917 | 1,917 | 18,888 | 20,805 | ||||||||||||||||||||||||||||
Unsecured to residential developers | --- | --- | --- | 7,326 | 7,326 | ||||||||||||||||||||||||||||
Vacant and unimproved | --- | 407 | 407 | 48,570 | 48,977 | ||||||||||||||||||||||||||||
Commercial development | --- | 23 | 23 | 4,296 | 4,319 | ||||||||||||||||||||||||||||
Residential improved | 174 | 124 | 298 | 77,116 | 77,414 | ||||||||||||||||||||||||||||
Commercial improved | 1,949 | 1,432 | 3,381 | 240,307 | 243,688 | ||||||||||||||||||||||||||||
Manufacturing and industrial | --- | --- | --- | 79,403 | 79,403 | ||||||||||||||||||||||||||||
2,123 | 3,903 | 6,026 | 475,906 | 481,932 | |||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Residential mortgage | 395 | 636 | 1,031 | 183,994 | 185,025 | ||||||||||||||||||||||||||||
Unsecured | --- | --- | --- | 1,464 | 1,464 | ||||||||||||||||||||||||||||
Home equity | 538 | 38 | 576 | 96,214 | 96,790 | ||||||||||||||||||||||||||||
Other secured | 78 | --- | 78 | 10,288 | 10,366 | ||||||||||||||||||||||||||||
1,011 | 674 | 1,685 | 291,960 | 293,645 | |||||||||||||||||||||||||||||
Total | $ | 3,237 | $ | 4,594 | $ | 7,831 | $ | 1,020,962 | $ | 1,028,793 | |||||||||||||||||||||||
The following table presents the aging of the recorded investment in past due loans as of December 31, 2012 by class of loans (dollars in thousands): | |||||||||||||||||||||||||||||||||
30-90 | Greater Than | Total | Loans Not | ||||||||||||||||||||||||||||||
Days | 90 Days | Past Due | Past Due | Total | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 395 | $ | 219 | $ | 614 | $ | 259,086 | $ | 259,700 | |||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Residential developed | --- | 35 | 35 | 26,055 | 26,090 | ||||||||||||||||||||||||||||
Unsecured to residential developers | --- | --- | --- | 5,547 | 5,547 | ||||||||||||||||||||||||||||
Vacant and unimproved | 17 | 652 | 669 | 55,856 | 56,525 | ||||||||||||||||||||||||||||
Commercial development | --- | 199 | 199 | 1,600 | 1,799 | ||||||||||||||||||||||||||||
Residential improved | 520 | 192 | 712 | 75,101 | 75,813 | ||||||||||||||||||||||||||||
Commercial improved | 2,502 | 1,436 | 3,938 | 251,800 | 255,738 | ||||||||||||||||||||||||||||
Manufacturing and industrial | 200 | 25 | 225 | 81,222 | 81,447 | ||||||||||||||||||||||||||||
3,239 | 2,539 | 5,778 | 497,181 | 502,959 | |||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Residential mortgage | 647 | 110 | 757 | 181,868 | 182,625 | ||||||||||||||||||||||||||||
Unsecured | --- | --- | --- | 1,683 | 1,683 | ||||||||||||||||||||||||||||
Home equity | 415 | 264 | 679 | 92,085 | 92,764 | ||||||||||||||||||||||||||||
Other secured | 59 | --- | 59 | 12,558 | 12,617 | ||||||||||||||||||||||||||||
1,121 | 374 | 1,495 | 288,194 | 289,689 | |||||||||||||||||||||||||||||
Total | $ | 4,755 | $ | 3,132 | $ | 7,887 | $ | 1,044,461 | $ | 1,052,348 | |||||||||||||||||||||||
The Company had allocated $4,662,000 and $6,005,000 of specific reserves to customers whose loan terms have been modified in troubled debt restructurings (“TDRs”) as of September 30, 2013 and December 31, 2012, respectively. These loans involved the restructuring of terms to allow customers to mitigate the risk of foreclosure by meeting a lower loan payment requirement based upon their current cash flow. These may also include loans that renewed at existing contractual rates, but below market rates for comparable credit. The Company has been active at utilizing these programs and working with its customers to reduce the risk of foreclosure. For commercial loans, these modifications typically include an interest only period and, in some cases, a lowering of the interest rate on the loan. In some cases, the modification will include separating the note into two notes with the first note structured to be supported by current cash flows and collateral, and the second note made for the remaining unsecured debt. The second note is charged off immediately and collected only after the first note is paid in full. This modification type is commonly referred to as an A-B note structure. For consumer mortgage loans, the restructuring typically includes a lowering of the interest rate to provide payment and cash flow relief. For each restructuring, a comprehensive credit underwriting analysis of the borrower’s financial condition and prospects of repayment under the revised terms is performed to assess whether the structure can be successful and that cash flows will be sufficient to support the restructured debt. An analysis is also performed to determine whether the restructured loan should be on accrual status. Generally, if the loan is on accrual at the time of restructure, it will remain on accrual after the restructuring. In some cases, a nonaccrual loan may be placed on accrual at the time of restructure if the loan’s actual payment history demonstrates it would have cash flowed under the restructured terms. After six consecutive payments under the restructured terms, a nonaccrual restructured loan is reviewed for possible upgrade to accruing status. | |||||||||||||||||||||||||||||||||
Typically, once a loan is identified as a TDR, it will retain that designation until it is paid off, since the restructured loans generally are not at market rates at the time of restructuring. An exception to this would be a loan that is modified under an A-B note structure. If the remaining “A” note is at a market rate at the time of restructuring (taking into account the borrower’s credit risk and prevailing market conditions), the loan can be removed from TDR designation in a subsequent calendar year after six months of performance in accordance with the new terms. The market rate relative to the borrower’s credit risk is determined through analysis of market pricing information gathered from peers and use of a loan pricing model. The general objective of the model is to achieve a consistent return on equity from one credit to the next, taking into consideration their differences in credit risk. In the model, credits with higher risk receive a higher potential loss allocation, and therefore require a higher interest rate to achieve the target return on equity. In general, when a loan is removed from TDR status it would no longer be considered impaired. As a result, allowance allocations for loans removed from TDR status would be based on the historical based allocation for the applicable loan grade and loan class. During the three and nine months ended September 30, 2013 and throughout 2012, no loans were removed from TDR status. Given the nature of the TDRs outstanding at September 30, 2013, it is unlikely that any such loans will be removed from TDR status in 2013. | |||||||||||||||||||||||||||||||||
As with other impaired loans, an allowance for loan loss is estimated for each TDR based on the most likely source of repayment for each loan. For impaired commercial real estate loans that are collateral dependent, the allowance is computed based on the fair value of the underlying collateral. For impaired commercial loans where repayment is expected from cash flows from business operations, the allowance is computed based on a discounted cash flow computation. Certain groups of TDRs, such as residential mortgages, have common characteristics and for them the allowance is computed based on a discounted cash flow computation on the change in weighted rate for the pool. The allowance allocations for commercial TDRs where we have reduced the contractual interest rate are computed by measuring cash flows using the new payment terms discounted at the original contractual rate. | |||||||||||||||||||||||||||||||||
The following table presents information regarding troubled debt restructurings as of September 30, 2013 and December 31, 2012 (dollars in thousands): | |||||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||
Number of | Outstanding | Number of | Outstanding | ||||||||||||||||||||||||||||||
Loans | Recorded | Loans | Recorded | ||||||||||||||||||||||||||||||
Balance | Balance | ||||||||||||||||||||||||||||||||
Commercial and industrial | 55 | $ | 12,218 | 58 | $ | 14,485 | |||||||||||||||||||||||||||
Commercial real estate | 121 | 43,321 | 142 | 49,936 | |||||||||||||||||||||||||||||
Consumer | 112 | 15,075 | 86 | 13,634 | |||||||||||||||||||||||||||||
288 | $ | 70,614 | 286 | $ | 78,055 | ||||||||||||||||||||||||||||
The following table presents information regarding troubled debt restructurings executed during the three month periods ended September 30, 2013 and 2012 (dollars in thousands): | |||||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||||||||||||||||||||||
Number of | Outstanding | Principal | Number of | Outstanding | Principal | ||||||||||||||||||||||||||||
Loans | Recorded | Writedown | Loans | Recorded | Writedown | ||||||||||||||||||||||||||||
Balance | upon | Balance | upon | ||||||||||||||||||||||||||||||
Modification | Modification | ||||||||||||||||||||||||||||||||
Commercial and industrial | 2 | $ | 823 | $ | --- | 1 | $ | 15 | $ | --- | |||||||||||||||||||||||
Commercial real estate | 2 | 186 | --- | 5 | 2,538 | --- | |||||||||||||||||||||||||||
Consumer | 3 | 137 | --- | --- | --- | --- | |||||||||||||||||||||||||||
7 | $ | 1,146 | $ | --- | 6 | $ | 2,553 | $ | --- | ||||||||||||||||||||||||
The following table presents information regarding troubled debt restructurings executed during the nine month periods ended September 30, 2013 and 2012 (dollars in thousands): | |||||||||||||||||||||||||||||||||
Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||||||||||||||||||||||
Number of | Outstanding | Principal | Number of | Outstanding | Principal | ||||||||||||||||||||||||||||
Loans | Recorded | Writedown | Loans | Recorded | Writedown | ||||||||||||||||||||||||||||
Balance | upon | Balance | upon | ||||||||||||||||||||||||||||||
Modification | Modification | ||||||||||||||||||||||||||||||||
Commercial and industrial | 5 | $ | 1,085 | $ | --- | 14 | $ | 1,351 | $ | 9 | |||||||||||||||||||||||
Commercial real estate | 11 | 2,903 | --- | 44 | 10,236 | 86 | |||||||||||||||||||||||||||
Consumer | 33 | 5,606 | 1,770 | 9 | 1,462 | 260 | |||||||||||||||||||||||||||
49 | $ | 9,594 | $ | 1,770 | 67 | $ | 13,049 | $ | 355 | ||||||||||||||||||||||||
According to the accounting standards, not all loan modifications are TDRs. TDRs are modifications or renewals where the Company has granted a concession to a borrower in financial distress. The Company reviews all modifications and renewals for determination of TDR status. In some situations a borrower may be experiencing financial distress, but the Company does not provide a concession. These modifications are not considered TDRs. In other cases, the Company might provide a concession, such as a reduction in interest rate, but the borrower is not experiencing financial distress. This could be the case if the Company is matching a competitor’s interest rate. These modifications would also not be considered TDRs. Finally, any renewals at existing terms for borrowers not experiencing financial distress would not be considered TDRs. The following table presents information regarding modifications and renewals executed during the three month periods ended September 30, 2013 and 2012 that are not considered TDRs (dollars in thousands): | |||||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||||||||||||||||||||||
Number of | Outstanding | Number of | Outstanding | ||||||||||||||||||||||||||||||
Loans | Recorded | Loans | Recorded | ||||||||||||||||||||||||||||||
Balance | Balance | ||||||||||||||||||||||||||||||||
Commercial and industrial | 141 | $ | 24,425 | 166 | $ | 27,615 | |||||||||||||||||||||||||||
Commercial real estate | 80 | 19,422 | 112 | 40,784 | |||||||||||||||||||||||||||||
Consumer | 10 | 271 | 50 | 2,320 | |||||||||||||||||||||||||||||
231 | $ | 44,118 | 328 | $ | 70,719 | ||||||||||||||||||||||||||||
The following table presents information regarding modifications and renewals executed during the nine month periods ended September 30, 2013 and 2012 that are not considered TDRs (dollars in thousands): | |||||||||||||||||||||||||||||||||
Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||||||||||||||||||||||
Number of | Outstanding | Number of | Outstanding | ||||||||||||||||||||||||||||||
Loans | Recorded | Loans | Recorded | ||||||||||||||||||||||||||||||
Balance | Balance | ||||||||||||||||||||||||||||||||
Commercial and industrial | 351 | $ | 72,878 | 398 | $ | 88,059 | |||||||||||||||||||||||||||
Commercial real estate | 277 | 95,058 | 256 | 97,583 | |||||||||||||||||||||||||||||
Consumer | 38 | 1,203 | 66 | 2,701 | |||||||||||||||||||||||||||||
666 | $ | 169,139 | 720 | $ | 188,343 | ||||||||||||||||||||||||||||
The table below presents, by class, information regarding troubled debt restructurings which had payment defaults during the three month periods ended September 30, 2013 and 2012 (dollars in thousands). Included are loans that became delinquent more than 90 days past due or transferred to nonaccrual within 12 months of restructuring. | |||||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||||||||||||||||||||||
Number of | Outstanding | Number of | Outstanding | ||||||||||||||||||||||||||||||
Loans | Recorded | Loans | Recorded | ||||||||||||||||||||||||||||||
Balance | Balance | ||||||||||||||||||||||||||||||||
Commercial and industrial | --- | $ | --- | --- | $ | --- | |||||||||||||||||||||||||||
Commercial real estate | --- | --- | 1 | 136 | |||||||||||||||||||||||||||||
Consumer | --- | --- | 1 | 114 | |||||||||||||||||||||||||||||
The table below presents, by class, information regarding troubled debt restructurings which had payment defaults during the nine month periods ended September 30, 2013 and 2012 (dollars in thousands). Included are loans that became delinquent more than 90 days past due or transferred to nonaccrual within 12 months of restructuring. | |||||||||||||||||||||||||||||||||
Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||||||||||||||||||||||
Number of | Outstanding | Number of | Outstanding | ||||||||||||||||||||||||||||||
Loans | Recorded | Loans | Recorded | ||||||||||||||||||||||||||||||
Balance | Balance | ||||||||||||||||||||||||||||||||
Commercial and industrial | --- | $ | --- | 3 | $ | 112 | |||||||||||||||||||||||||||
Commercial real estate | --- | --- | 2 | 212 | |||||||||||||||||||||||||||||
Consumer | --- | --- | 2 | 184 | |||||||||||||||||||||||||||||
Credit Quality Indicators: The Company categorizes loans into risk categories based on relevant information about the ability of the borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company analyzes commercial loans individually and classifies these relationships by credit risk grading. The Company uses an eight point grading system, with grades 5 through 8 being considered classified, or watch, credits. All commercial loans are assigned a grade at origination, at each renewal or any amendment. When a credit is first downgraded to a watch credit (either through renewal, amendment, loan officer identification or the loan review process), an Administrative Loan Review (“ALR”) is generated by credit and the loan officer. All watch credits have an ALR completed monthly which analyzes the collateral position and cash flow of the borrower and its guarantors. The loan officer is required to complete both a short term and long term plan to rehabilitate or exit the credit and to give monthly comments on the progress to these plans. Management meets quarterly with loan officers to discuss each of these credits in detail and to help formulate solutions where progress has stalled. When necessary, the loan officer proposes changes to the assigned loan grade as part of the ALR. Additionally, Loan Review reviews all loan grades upon origination, renewal or amendment and again as loans are selected though the loan review process. The credit will stay on the ALR until either its grade has improved to a 4 or better or the credit relationship is at a zero balance. The Company uses the following definitions for the risk grades: | |||||||||||||||||||||||||||||||||
1. Excellent - Loans supported by extremely strong financial condition or secured by the Bank’s own deposits. Minimal risk to the Bank and the probability of serious rapid financial deterioration is extremely small. | |||||||||||||||||||||||||||||||||
2. Above Average - Loans supported by sound financial statements that indicate the ability to repay or borrowings secured (and margined properly) with marketable securities. Nominal risk to the Bank and probability of serious financial deterioration is highly unlikely. The overall quality of these credits is very high. | |||||||||||||||||||||||||||||||||
3. Good Quality - Loans supported by satisfactory asset quality and liquidity, good debt capacity coverage, and good management in all critical positions. Loans are secured by acceptable collateral with adequate margins. There is a slight risk of deterioration if adverse market conditions prevail. | |||||||||||||||||||||||||||||||||
4. Acceptable Risk - Loans carrying an acceptable risk to the Bank, which may be slightly below average quality. The borrower has limited financial strength with considerable leverage. There is some probability of deterioration if adverse market conditions prevail. These credits should be monitored closely by the Relationship Manager. | |||||||||||||||||||||||||||||||||
5. Marginally Acceptable - Loans are of marginal quality with above normal risk to the Bank. The borrower shows acceptable asset quality but very little liquidity with high leverage. There is inconsistent earning performance without the ability to sustain adverse market conditions. The primary source of repayment is questionable, but the secondary source of repayment still remains an option. Very close attention by the Relationship Manager and management is needed. | |||||||||||||||||||||||||||||||||
6. Substandard - Loans are inadequately protected by the net worth and paying capacity of the borrower or the collateral pledged. The primary and secondary sources of repayment are questionable. Heavy debt condition may be evident and volume and earnings deterioration may be underway. It is possible that the Bank will sustain some loss if the deficiencies are not immediately addressed and corrected. | |||||||||||||||||||||||||||||||||
7. Doubtful - Loans supported by weak or no financial statements that indicate the ability to repay the entire loan is questionable. Loans in this category are normally characterized less than adequate collateral, insolvent, or extremely weak financial condition. A loan classified doubtful has all the weaknesses inherent in one classified substandard with the added characteristic that the weaknesses makes collection or liquidation in full highly questionable. The possibility of loss is extremely high, however, activity may be underway to minimize the loss or maximize the recovery. | |||||||||||||||||||||||||||||||||
8. Loss - Loans are considered uncollectible and of little or no value as a bank asset. These loans should be charged off. | |||||||||||||||||||||||||||||||||
As of September 30, 2013, the risk grade category of commercial loans by class of loans was as follows (dollars in thousands): | |||||||||||||||||||||||||||||||||
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | ||||||||||||||||||||||||||
Commercial and industrial | $ | 1,207 | $ | 13,835 | $ | 69,640 | $ | 152,822 | $ | 9,683 | $ | 1,790 | $ | 4,239 | $ | --- | |||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Residential developed | --- | --- | 1,144 | 5,720 | 6,890 | 4,835 | 2,216 | --- | |||||||||||||||||||||||||
Unsecured to residential developers | --- | --- | --- | 7,318 | 8 | --- | --- | --- | |||||||||||||||||||||||||
Vacant and unimproved | --- | --- | 12,570 | 27,224 | 8,293 | 455 | 435 | --- | |||||||||||||||||||||||||
Commercial development | --- | --- | --- | 1,479 | 2,609 | 209 | 22 | --- | |||||||||||||||||||||||||
Residential improved | --- | 111 | 15,971 | 41,708 | 12,034 | 7,105 | 485 | --- | |||||||||||||||||||||||||
Commercial improved | --- | 3,843 | 49,762 | 151,735 | 29,160 | 7,585 | 1,603 | --- | |||||||||||||||||||||||||
Manufacturing and industrial | --- | 337 | 24,623 | 43,528 | 8,820 | 2,095 | --- | --- | |||||||||||||||||||||||||
$ | 1,207 | $ | 18,126 | $ | 173,710 | $ | 431,534 | $ | 77,497 | $ | 24,074 | $ | 9,000 | $ | --- | ||||||||||||||||||
As of December 31, 2012, the risk grade category of commercial loans by class of loans was as follows (dollars in thousands): | |||||||||||||||||||||||||||||||||
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | ||||||||||||||||||||||||||
Commercial and industrial | $ | 1,349 | $ | 20,630 | $ | 72,723 | $ | 141,425 | $ | 12,027 | $ | 3,884 | $ | 7,662 | $ | --- | |||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Residential developed | --- | --- | 715 | 6,240 | 9,772 | 6,339 | 3,024 | --- | |||||||||||||||||||||||||
Unsecured to residential developers | --- | --- | --- | 5,535 | 12 | --- | --- | --- | |||||||||||||||||||||||||
Vacant and unimproved | --- | --- | 12,532 | 29,654 | 12,412 | 1,221 | 706 | --- | |||||||||||||||||||||||||
Commercial development | --- | --- | --- | 482 | 1,102 | 213 | 2 | --- | |||||||||||||||||||||||||
Residential improved | --- | 115 | 9,973 | 41,578 | 14,471 | 8,517 | 1,159 | --- | |||||||||||||||||||||||||
Commercial improved | --- | 2,009 | 40,253 | 159,353 | 37,449 | 15,153 | 1,521 | --- | |||||||||||||||||||||||||
Manufacturing and industrial | --- | 2,087 | 17,795 | 48,061 | 9,592 | 3,687 | 225 | --- | |||||||||||||||||||||||||
$ | 1,349 | $ | 24,841 | $ | 153,991 | $ | 432,328 | $ | 96,837 | $ | 39,014 | $ | 14,299 | $ | --- | ||||||||||||||||||
Commercial loans rated a 6 or worse per the Company’s internal risk rating system are considered substandard, doubtful or loss. Commercial loans classified as substandard or worse were as follows at period-end (dollars in thousands): | |||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Not classified as impaired | $ | 8,780 | $ | 13,015 | |||||||||||||||||||||||||||||
Classified as impaired | 24,294 | 40,298 | |||||||||||||||||||||||||||||||
Total commercial loans classified substandard or worse | $ | 33,074 | $ | 53,313 | |||||||||||||||||||||||||||||
The Company considers the performance of the loan portfolio and its impact on the allowance for loan losses. For consumer loan classes, the Company also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment in consumer loans based on payment activity (dollars in thousands): | |||||||||||||||||||||||||||||||||
Residential | Consumer | Home | Consumer | ||||||||||||||||||||||||||||||
30-Sep-13 | Mortgage | Unsecured | Equity | Other | |||||||||||||||||||||||||||||
Performing | $ | 184,389 | $ | 1,464 | $ | 96,752 | $ | 10,366 | |||||||||||||||||||||||||
Nonperforming | 636 | --- | 38 | --- | |||||||||||||||||||||||||||||
Total | $ | 185,025 | $ | 1,464 | $ | 96,790 | $ | 10,366 | |||||||||||||||||||||||||
Residential | Consumer | Home | Consumer | ||||||||||||||||||||||||||||||
31-Dec-12 | Mortgage | Unsecured | Equity | Other | |||||||||||||||||||||||||||||
Performing | $ | 182,515 | $ | 1,683 | $ | 92,500 | $ | 12,617 | |||||||||||||||||||||||||
Nonperforming | 110 | --- | 264 | --- | |||||||||||||||||||||||||||||
Total | $ | 182,625 | $ | 1,683 | $ | 92,764 | $ | 12,617 | |||||||||||||||||||||||||
OTHER_REAL_ESTATE_OWNED
OTHER REAL ESTATE OWNED | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
OTHER REAL ESTATE OWNED [Abstract] | |||||||||||||
OTHER REAL ESTATE OWNED | NOTE 4 – OTHER REAL ESTATE OWNED | ||||||||||||
Other real estate owned was as follows (dollars in thousands): | |||||||||||||
Nine | Year | Nine | |||||||||||
Months Ended | Ended | Months Ended | |||||||||||
September 30, | December 31, | September 30, | |||||||||||
2013 | 2012 | 2012 | |||||||||||
Beginning balance | $ | 69,743 | $ | 83,663 | $ | 83,663 | |||||||
Additions, transfers from loans and fixed assets | 3,170 | 9,168 | 9,002 | ||||||||||
Proceeds from sales of other real estate owned | (10,545 | ) | (18,729 | ) | (13,426 | ) | |||||||
Valuation allowance reversal upon sale | (2,794 | ) | (4,300 | ) | (2,962 | ) | |||||||
Gain (loss) on sale of other real estate owned | 1,004 | (59 | ) | 11 | |||||||||
60,578 | 69,743 | 76,288 | |||||||||||
Less: valuation allowance | (17,782 | ) | (18,161 | ) | (18,510 | ) | |||||||
Ending balance | $ | 42,796 | $ | 51,582 | $ | 57,778 | |||||||
Activity in the valuation allowance was as follows (dollars in thousands): | |||||||||||||
Nine Months | Nine Months | ||||||||||||
Ended | Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2013 | 2012 | ||||||||||||
Beginning balance | $ | 18,161 | $ | 17,225 | |||||||||
Additions charged to expense | 2,415 | 4,247 | |||||||||||
Reversals upon sale | (2,794 | ) | (2,962 | ) | |||||||||
Ending balance | $ | 17,782 | $ | 18,510 | |||||||||
FAIR_VALUE
FAIR VALUE | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
FAIR VALUE [Abstract] | ||||||||||||||||||
FAIR VALUE | NOTE 5 – FAIR VALUE | |||||||||||||||||
ASC Topic 820, Fair Value Measurements and Disclosures, establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that may be used to measure fair value include: | ||||||||||||||||||
Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. | ||||||||||||||||||
Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. | ||||||||||||||||||
Level 3: Significant unobservable inputs that reflect a reporting entity's own assumptions about the assumptions that market participants would use in pricing an asset or liability. | ||||||||||||||||||
Investment Securities: The fair values of investment securities are determined by matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities' relationship to other benchmark quoted securities (Level 2 inputs). The fair values of certain securities held to maturity are determined by computing discounted cash flows using observable and unobservable market inputs (Level 3 inputs). | ||||||||||||||||||
Loans Held for Sale: The fair value of loans held for sale is based upon binding quotes from third party investors (Level 2 inputs). | ||||||||||||||||||
Impaired Loans: Loans identified as impaired are measured using one of three methods: the loan’s observable market price, the fair value of collateral or the present value of expected future cash flows. For each period presented, no impaired loans were measured using the loan’s observable market price. If an impaired loan has had a chargeoff or if the fair value of the collateral is less than the recorded investment in the loan, we establish a specific reserve and report the loan as nonrecurring Level 3. The fair value of collateral of impaired loans is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. | ||||||||||||||||||
Other Real Estate Owned: Other real estate owned (OREO) properties are initially recorded at fair value, less estimated costs to sell when acquired, establishing a new cost basis. Adjustments to OREO are measured at fair value, less costs to sell. Fair values are generally based on third party appraisals or realtor evaluations of the property. These appraisals and evaluations may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification. In cases where the carrying amount exceeds the fair value, less estimated costs to sell, an impairment loss is recognized through a valuation allowance, and the property is reported as nonrecurring Level 3. | ||||||||||||||||||
Assets measured at fair value on a recurring basis are summarized below (in thousands): | ||||||||||||||||||
Fair | Quoted Prices | Significant Other | Significant | |||||||||||||||
in Active | Observable | Unobservable | ||||||||||||||||
Markets for | Inputs | |||||||||||||||||
Identical | ||||||||||||||||||
Assets | ||||||||||||||||||
Value | (Level 1) | Inputs (Level 2) | (Level 3) | |||||||||||||||
30-Sep-13 | ||||||||||||||||||
U.S. Treasury and federal agency securities | $ | 52,488 | $ | --- | $ | 52,488 | $ | --- | ||||||||||
U.S. Agency MBS and CMOs | 18,602 | --- | 18,602 | --- | ||||||||||||||
Tax-exempt state and municipal bonds | 24,565 | --- | 24,565 | --- | ||||||||||||||
Taxable state and municipal bonds | 27,861 | --- | 27,861 | --- | ||||||||||||||
Corporate bonds and other debt securities | 10,435 | --- | 10,435 | --- | ||||||||||||||
Other equity securities | 1,488 | --- | 1,488 | --- | ||||||||||||||
Loans held for sale | 2,983 | --- | 2,983 | --- | ||||||||||||||
31-Dec-12 | ||||||||||||||||||
U.S. Treasury and federal agency securities | $ | 42,564 | $ | --- | $ | 42,564 | $ | --- | ||||||||||
U.S. Agency MBS and CMOs | 23,761 | --- | 23,761 | --- | ||||||||||||||
Tax-exempt state and municipal bonds | 20,793 | --- | 20,793 | --- | ||||||||||||||
Taxable state and municipal bonds | 27,296 | --- | 27,296 | --- | ||||||||||||||
Corporate bonds | 7,526 | --- | 7,526 | --- | ||||||||||||||
Other equity securities | 1,557 | --- | 1,557 | --- | ||||||||||||||
Loans held for sale | 8,130 | --- | 8,130 | --- | ||||||||||||||
Assets measured at fair value on a non-recurring basis are summarized below (in thousands): | ||||||||||||||||||
Fair | Quoted Prices | Significant Other | Significant | |||||||||||||||
in Active | Observable | Unobservable | ||||||||||||||||
Markets for | Inputs | |||||||||||||||||
Identical | ||||||||||||||||||
Assets | ||||||||||||||||||
Value | (Level 1) | Inputs (Level 2) | (Level 3) | |||||||||||||||
30-Sep-13 | ||||||||||||||||||
Impaired loans | $ | 24,087 | $ | --- | $ | --- | $ | 24,087 | ||||||||||
Other real estate owned | 34,564 | --- | --- | 34,564 | ||||||||||||||
31-Dec-12 | ||||||||||||||||||
Impaired loans | $ | 34,668 | $ | --- | $ | --- | $ | 34,668 | ||||||||||
Other real estate owned | 41,594 | --- | --- | 41,594 | ||||||||||||||
The carrying amounts and estimated fair values of financial instruments, not previously presented, were as follows at September 30, 2013 and December 31, 2012 (dollars in thousands). | ||||||||||||||||||
Level in | 30-Sep-13 | 31-Dec-12 | ||||||||||||||||
Fair Value | Carrying | Fair | Carrying | Fair | ||||||||||||||
Hierarchy | Amount | Value | Amount | Value | ||||||||||||||
Financial assets | ||||||||||||||||||
Cash and due from banks | Level 1 | $ | 35,592 | $ | 35,592 | $ | 33,556 | $ | 33,556 | |||||||||
Cash equivalents | Level 2 | 178,263 | 178,263 | 192,802 | 192,802 | |||||||||||||
Interest-bearing time deposits in other financial institutions | Level 2 | 25,000 | 25,000 | --- | --- | |||||||||||||
Securities held to maturity | Level 3 | 18,995 | 19,444 | 4,300 | 4,301 | |||||||||||||
FHLB stock | 11,236 | NA | 11,236 | NA | ||||||||||||||
Loans, net | Level 2 | 983,434 | 976,296 | 993,941 | 999,619 | |||||||||||||
Bank owned life insurance | Level 3 | 27,343 | 27,343 | 26,804 | 26,804 | |||||||||||||
Accrued interest receivable | Level 2 | 3,250 | 3,250 | 3,411 | 3,411 | |||||||||||||
Financial liabilities | ||||||||||||||||||
Deposits | Level 2 | (1,288,041 | ) | (1,289,388 | ) | (1,286,261 | ) | (1,285,819 | ) | |||||||||
Other borrowed funds | Level 2 | (89,991 | ) | (90,513 | ) | (91,822 | ) | (95,213 | ) | |||||||||
Long-term debt | Level 2 | (41,238 | ) | (35,099 | ) | (41,238 | ) | (30,463 | ) | |||||||||
Subordinated debt | Level 2 | --- | --- | (1,650 | ) | (1,650 | ) | |||||||||||
Accrued interest payable | Level 2 | (7,903 | ) | (7,903 | ) | (4,858 | ) | (4,858 | ) | |||||||||
Off-balance sheet credit-related items | ||||||||||||||||||
Loan commitments | --- | --- | --- | --- | ||||||||||||||
The methods and assumptions used to estimate fair value are described as follows. | ||||||||||||||||||
Carrying amount is the estimated fair value for cash and cash equivalents, interest-bearing time deposits in other financial institutions, bank owned life insurance, accrued interest receivable and payable, demand deposits, short-term borrowings and variable rate loans or deposits that reprice frequently and fully. Security fair values are determined by matrix pricing, which is a mathematical technique widely used in the industry to value debt securities as discussed above. For fixed rate loans or deposits and for variable rate loans or deposits with infrequent repricing or repricing limits, fair value is based on discounted cash flows using current market rates applied to the estimated life and credit risk (including consideration of widening credit spreads). Fair value of debt is based on current rates for similar financing. It was not practicable to determine the fair value of FHLB stock due to restrictions placed on its transferability. The fair value of off-balance sheet credit-related items is not significant. |
DEPOSITS
DEPOSITS | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
DEPOSITS [Abstract] | |||||||||
DEPOSITS | NOTE 6 – DEPOSITS | ||||||||
Deposits are summarized as follows (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Noninterest-bearing demand | $ | 352,879 | $ | 339,520 | |||||
Interest bearing demand | 302,822 | 278,765 | |||||||
Savings and money market accounts | 475,895 | 476,803 | |||||||
Certificates of deposit | 156,445 | 191,173 | |||||||
$ | 1,288,041 | $ | 1,286,261 | ||||||
Approximately $58.8 million and $69.2 million in certificates of deposit were in denominations of $100,000 or more at September 30, 2013 and December 31, 2012, respectively. | |||||||||
OTHER_BORROWED_FUNDS
OTHER BORROWED FUNDS | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
OTHER BORROWED FUNDS [Abstract] | ||||||||||
OTHER BORROWED FUNDS | NOTE 7 - OTHER BORROWED FUNDS | |||||||||
Other borrowed funds include advances from the Federal Home Loan Bank and borrowings from the Federal Reserve Bank. | ||||||||||
Federal Home Loan Bank Advances | ||||||||||
At period-end, advances from the Federal Home Loan Bank were as follows (dollars in thousands): | ||||||||||
Weighted | ||||||||||
Advance | Average | |||||||||
Principal Terms | Amount | Range of Maturities | Interest Rate | |||||||
30-Sep-13 | ||||||||||
Single maturity fixed rate advances | $ | 80,000 | August 2016 to February 2019 | 1.69 | % | |||||
Amortizable mortgage advances | 9,991 | March 2018 to July 2018 | 3.78 | % | ||||||
$ | 89,991 | |||||||||
Weighted | ||||||||||
Advance | Average | |||||||||
Principal Terms | Amount | Range of Maturities | Interest Rate | |||||||
31-Dec-12 | ||||||||||
Single maturity fixed rate advances | $ | 80,000 | May 2015 to September 2016 | 1.7 | % | |||||
Amortizable mortgage advances | 11,822 | March 2018 to July 2018 | 3.78 | % | ||||||
$ | 91,822 | |||||||||
Each advance is subject to a prepayment fee if paid prior to its maturity date. Fixed rate advances are payable at maturity. Amortizable mortgage advances are fixed rate advances with scheduled repayments based upon amortization to maturity. These advances were collateralized by residential and commercial real estate loans totaling $416,405,000 and $413,482,000 under a blanket lien arrangement at September 30, 2013 and December 31, 2012, respectively. | ||||||||||
During the second quarter of 2013, the Bank modified the terms of six of its existing FHLB advances (totaling $60.0 million) having the effect of extending the weighted average maturity for all outstanding advances from 3.22 years to 4.86 years and reducing the weighted average interest rate from 1.95% to 1.94%. As the modifications did not result in the terms being substantially different (as defined in ASC 470-50-40-10), the transaction was accounted for as a modification, not extinguishment of debt. Accordingly, the prepayment fees incurred are amortized as an adjustment of the yield over the remaining life of each advance. | ||||||||||
Scheduled repayments of FHLB advances as of September 30, 2013 were as follows (in thousands): | ||||||||||
2013 | $ | --- | ||||||||
2014 | 1,884 | |||||||||
2015 | 1,938 | |||||||||
2016 | 21,996 | |||||||||
2017 | 2,055 | |||||||||
Thereafter | 62,118 | |||||||||
$ | 89,991 | |||||||||
Federal Reserve Bank Borrowings | ||||||||||
The Company has a financing arrangement with the Federal Reserve Bank. There were no borrowings outstanding at September 30, 2013 and December 31, 2012, and the Company had approximately $27.7 million and $30.3 million in unused borrowing capacity based on commercial and mortgage loans pledged to the Federal Reserve Bank totaling $33.2 million and $37.2 million at September 30, 2013 and December 31, 2012, respectively. | ||||||||||
EARNINGS_PER_COMMON_SHARE
EARNINGS PER COMMON SHARE | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
EARNINGS PER COMMON SHARE [Abstract] | |||||||||||||||||
EARNINGS PER COMMON SHARE | NOTE 8 - EARNINGS PER COMMON SHARE | ||||||||||||||||
A reconciliation of the numerators and denominators of basic and diluted earnings per common share for the three and nine month periods ended September 30, 2013 and 2012 are as follows (dollars in thousands, except per share data): | |||||||||||||||||
Three Months | Three Months | Nine Months | Nine Months | ||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net income | $ | 2,238 | $ | 6,585 | $ | 7,315 | $ | 14,256 | |||||||||
Dividends declared on preferred shares | --- | --- | --- | --- | |||||||||||||
Net income available to common shares | $ | 2,238 | $ | 6,585 | $ | 7,315 | $ | 14,256 | |||||||||
Weighted average shares outstanding, including participating stock awards - Basic | 27,261,325 | 27,082,825 | 27,244,741 | 27,082,823 | |||||||||||||
Dilutive potential common shares: | |||||||||||||||||
Stock options | --- | --- | --- | --- | |||||||||||||
Conversion of preferred stock | --- | --- | --- | --- | |||||||||||||
Stock warrants | --- | --- | --- | --- | |||||||||||||
Weighted average shares outstanding - Diluted | 27,261,325 | 27,082,825 | 27,244,741 | 27,082,823 | |||||||||||||
Basic earnings per common share | $ | 0.08 | $ | 0.24 | $ | 0.27 | $ | 0.53 | |||||||||
Diluted earnings per common share | $ | 0.08 | $ | 0.24 | $ | 0.27 | $ | 0.53 | |||||||||
Stock options for 445,392 shares of common stock for both the three and nine month periods ended September 30, 2013 were not considered in computing diluted earnings per share because they were antidilutive. Stock options for 534,444 shares of common stock for both the three and nine month periods ended September 30, 2012 were not considered in computing diluted earnings per share because they were antidilutive. Potential common shares associated with convertible preferred stock and stock warrants were not considered in computing diluted earnings per share in each period because they were antidilutive. | |||||||||||||||||
FEDERAL_INCOME_TAXES
FEDERAL INCOME TAXES | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
FEDERAL INCOME TAXES [Abstract] | |||||||||||||||||
FEDERAL INCOME TAXES | NOTE 9 - FEDERAL INCOME TAXES | ||||||||||||||||
Income tax expense (benefit) was as follows (dollars in thousands): | |||||||||||||||||
Three Months | Three Months | Nine Months | Nine Months | ||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Current | $ | 40 | $ | 275 | $ | 95 | $ | 275 | |||||||||
Deferred (benefit) expense | 935 | --- | 3,218 | --- | |||||||||||||
$ | 975 | $ | 275 | $ | 3,313 | $ | 275 | ||||||||||
The difference between the financial statement tax expense and amount computed by applying the statutory federal tax rate to pretax income was reconciled as follows (dollars in thousands): | |||||||||||||||||
Three Months | Three Months | Nine Months | Nine Months | ||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Statutory rate | 35 | % | 35 | % | 35 | % | 35 | % | |||||||||
Statutory rate applied to income before taxes | 1,124 | 2,401 | $ | 3,720 | $ | 5,086 | |||||||||||
Add (deduct) | |||||||||||||||||
Change in valuation allowance | --- | (1,761 | ) | --- | (4,056 | ) | |||||||||||
Tax-exempt interest income | (70 | ) | (32 | ) | (166 | ) | (64 | ) | |||||||||
Bank-owned life insurance | (63 | ) | (73 | ) | (188 | ) | (230 | ) | |||||||||
Other, net | (16 | ) | (260 | ) | (53 | ) | (461 | ) | |||||||||
$ | 975 | $ | 275 | $ | 3,313 | $ | 275 | ||||||||||
The realization of deferred tax assets (net of a recorded valuation allowance) is largely dependent upon future taxable income, future reversals of existing taxable temporary differences and the ability to carryback losses to available tax years. In assessing the need for a valuation allowance, we consider positive and negative evidence, including taxable income in carry-back years, scheduled reversals of deferred tax liabilities, expected future taxable income and tax planning strategies. | |||||||||||||||||
We established an $18.0 million valuation allowance on deferred tax assets in 2009 based primarily on our net operating losses for 2009 and 2008. | |||||||||||||||||
Throughout 2012, the positive evidence increased, while the negative evidence decreased. The most significant negative evidence at December 31, 2012 was the level of other real estate owned at $51.6 million, which was down $14.8 million from December 31, 2011. We achieved our 11th consecutive quarter of profitability as of December 31, 2012. With the positive results of the fourth quarter of 2012, we moved into a cumulative income position for the most recent three year period. In the first quarter of 2012, the FDIC and DIFS terminated the Bank’s Consent Order and, in the fourth quarter of 2012, the FRB terminated its Written Agreement with the Company, reducing regulatory uncertainty. Based on this, sustained improvement in asset quality and our projected results, our analysis at December 31, 2012 concluded that it was “more likely than not” that we will continue to produce earnings and that the positive evidence outweighed the negative evidence regarding our ability to utilize our deferred tax assets. As such, the full valuation allowance of $18.9 million was reversed to federal income tax expense at December 31, 2012. In the second quarter of 2013, the FDIC and DIFS released the Bank’s MOU and we achieved our 14th consecutive quarter of profitability in the third quarter of 2013. We concluded that no valuation allowance on our net deferred tax asset was necessary at September 30, 2013. | |||||||||||||||||
The net deferred tax asset recorded included the following amounts of deferred tax assets and liabilities (dollars in thousands): | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Deferred tax assets | |||||||||||||||||
Allowance for loan losses | $ | 7,445 | $ | 8,309 | |||||||||||||
Nonaccrual loan interest | 828 | 1,023 | |||||||||||||||
Valuation allowance on other real estate owned | 6,224 | 6,356 | |||||||||||||||
Net operating loss carryforward | 2,088 | 4,188 | |||||||||||||||
Unrealized loss on securities available for sale | 780 | --- | |||||||||||||||
Other | 1,776 | 1,794 | |||||||||||||||
Gross deferred tax assets | 19,141 | 21,670 | |||||||||||||||
Valuation allowance | --- | --- | |||||||||||||||
Total net deferred tax assets | 19,141 | 21,670 | |||||||||||||||
Deferred tax liabilities | |||||||||||||||||
Depreciation | (1,592 | ) | (1,693 | ) | |||||||||||||
Unrealized gain on securities available for sale | --- | (517 | ) | ||||||||||||||
Prepaid expenses | (308 | ) | (308 | ) | |||||||||||||
Other | (382 | ) | (372 | ) | |||||||||||||
Gross deferred tax liabilities | (2,282 | ) | (2,890 | ) | |||||||||||||
Net deferred tax asset | $ | 16,859 | $ | 18,780 | |||||||||||||
At September 30, 2013, we had federal income tax net operating loss carry forwards of $6.0 million that expire through 2030. | |||||||||||||||||
There were no unrecognized tax benefits at September 30, 2013 or December 31, 2012 and the Company does not expect the total amount of unrecognized tax benefits to significantly increase or decrease in the next twelve months. The Company is no longer subject to examination by the Internal Revenue Service for years before 2009. |
COMMITMENTS_AND_OFF_BALANCESHE
COMMITMENTS AND OFF BALANCE-SHEET RISK | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
COMMITMENTS AND OFF BALANCE-SHEET RISK [Abstract] | |||||||||
COMMITMENTS AND OFF BALANCE-SHEET RISK | NOTE 10 – COMMITMENTS AND OFF BALANCE-SHEET RISK | ||||||||
Some financial instruments are used to meet customer financing needs and to reduce exposure to interest rate changes. These financial instruments include commitments to extend credit and standby letters of credit. These involve, to varying degrees, credit and interest rate risk in excess of the amount reported in the financial statements. | |||||||||
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the commitment, and generally have fixed expiration dates. Standby letters of credit are conditional commitments to guarantee a customer’s performance to a third party. Exposure to credit loss if the other party does not perform is represented by the contractual amount for commitments to extend credit and standby letters of credit. Collateral or other security is normally not obtained for these financial instruments prior to their use and many of the commitments are expected to expire without being used. | |||||||||
A summary of the contractual amounts of financial instruments with off‑balance‑sheet risk was as follows at period-end (dollars in thousands): | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Commitments to make loans | $ | 116,893 | $ | 75,319 | |||||
Letters of credit | 8,883 | 8,200 | |||||||
Unused lines of credit | 284,181 | 276,620 | |||||||
The notional amount of commitments to fund mortgage loans to be sold into the secondary market was approximately $17.5 million and $26.9 million at September 30, 2013 and December 31, 2012, respectively. | |||||||||
At September 30, 2013, approximately 32% of the Bank’s commitments to make loans were at fixed rates, offered at current market rates. The remainder of the commitments to make loans were at variable rates tied to the prime rate and generally expire within 30 days. The majority of the unused lines of credit were at variable rates tied to the prime rate. |
CONTINGENCIES
CONTINGENCIES | 9 Months Ended |
Sep. 30, 2013 | |
CONTINGENCIES [Abstract] | |
CONTINGENCIES | NOTE 11 – CONTINGENCIES |
We and our subsidiaries periodically become defendants in certain claims and legal actions arising in the ordinary course of business. As of September 30, 2013, there were no material pending legal proceedings to which we or any of our subsidiaries are a party or which any of our properties are the subject. |
LONGTERM_DEBT
LONG-TERM DEBT | 9 Months Ended |
Sep. 30, 2013 | |
LONG-TERM DEBT [Abstract] | |
LONG-TERM DEBT | NOTE 12 – LONG-TERM DEBT |
The Company has outstanding $40,000,000 aggregate liquidation amount of pooled trust preferred securities ("TRUPs") issued through its wholly-owned subsidiary grantor trusts, Macatawa Statutory Trust I (issued $20,000,000 aggregate liquidation amount with a floating interest rate of three-month LIBOR plus 3.05%) and Macatawa Statutory Trust II (issued $20,000,000 aggregate liquidation amount with a floating interest rate of three-month LIBOR plus 2.75%). In December 2009, the Company exercised its right to defer interest payments on the TRUPs for 20 consecutive quarters or until such earlier time as is determined by further action of the Board of Directors. Through June 30, 2013, the Company had deferred interest payments on the TRUPs for 15 quarters. The Company continued to accrue interest during the deferral period. Interest on unpaid interest is required to be accrued and compounded quarterly at the stated interest rate. Upon termination of the deferral, all accrued and unpaid interest is due and payable. | |
On August 18, 2013, the Company announced its intention to discontinue the deferral and resume regular quarterly interest payments on the TRUPs beginning with the next regularly scheduled interest payment dates and pay all accrued and unpaid interest that becomes due and payable upon the discontinuance of the deferral. For Macatawa Statutory Trust I, the next regularly scheduled interest payment date was September 30, 2013 and a total of $3.0 million was distributed, representing all of the deferred and current interest payment due. For Macatawa Statutory Trust II, the next regularly scheduled interest payment date was October 7, 2013 and a total of $2.7 million was distributed, representing all of the deferred and current interest payment due. |
SHAREHOLDERS_EQUITY
SHAREHOLDERS' EQUITY | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
SHAREHOLDERS' EQUITY [Abstract] | |||||||||||||||||||||||||||||||||
SHAREHOLDERS' EQUITY | NOTE 13 – SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||
In connection with the October 26, 2012 termination of the Company’s Written Agreement with the Federal Reserve Bank of Chicago (the "FRB"), the Board of Directors of the Company adopted a resolution (the "Board Resolution") requiring the Company to obtain written approval from the FRB before declaring or paying any dividends, increasing holding company debt or redeeming any capital stock. By letter dated August 1, 2013, the FRB advised the Company that, based on the overall satisfactory condition of the organization, the FRB poses no objection should the Board of Directors choose to rescind the Board Resolution. Accordingly, the Company's Board of Directors rescinded the Board Resolution effective August 1, 2013. The payment of future cash dividends by the Company is largely dependent upon dividends received from the Bank out of its earnings. The Bank had retained earnings of approximately $11.9 million at September 30, 2013. | |||||||||||||||||||||||||||||||||
On April 12, 2013, the FDIC and DIFS, the primary banking regulators of the Bank, notified the Bank that the Bank’s MOU with the FDIC and DIFS had served its purpose and was released. As a result, the Bank is no longer subject to any regulatory order, memorandum of understanding or other similar regulatory directive or proceeding and has returned to a normal regulatory operating environment. The requirements of the MOU which are described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 are no longer applicable to the Bank. In particular, the enhanced regulatory capital requirements of the MOU no longer apply to the Bank and the Bank is no longer required to obtain the prior written consent of the FDIC and DIFS before the Bank declares or pays dividends. | |||||||||||||||||||||||||||||||||
Subordinated Notes | |||||||||||||||||||||||||||||||||
In 2009, the Company received proceeds of $1,650,000 from the issuance of unsecured subordinated debt in the form of 11% subordinated notes due in 2017. On August 13, 2013, the Company prepaid and redeemed all of the subordinated notes for $1,650,000 plus interest accrued through the prepayment date. | |||||||||||||||||||||||||||||||||
Regulatory Capital | |||||||||||||||||||||||||||||||||
The Company and the Bank are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings, and other factors and the regulators can lower classifications in certain cases. Failure to meet various capital requirements can initiate regulatory action that could have a direct material effect on the financial statements. | |||||||||||||||||||||||||||||||||
The prompt corrective action regulations provide five categories, including well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If a bank is only adequately capitalized, regulatory approval is required to, among other things, accept, renew or roll-over brokered deposits. If a bank is undercapitalized, capital distributions and growth and expansion are limited, and plans for capital restoration are required. | |||||||||||||||||||||||||||||||||
At September 30, 2013 and December 31, 2012, actual capital levels and minimum required levels were (in thousands): | |||||||||||||||||||||||||||||||||
To Be Well | |||||||||||||||||||||||||||||||||
Minimum Required | Capitalized Under | ||||||||||||||||||||||||||||||||
For Capital | Prompt Corrective | Minimum Required | |||||||||||||||||||||||||||||||
Actual | Adequacy Purposes | Action Regulations | Under MOU (1) | ||||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||
Total capital (to risk weighted assets) | |||||||||||||||||||||||||||||||||
Consolidated | $ | 177,037 | 16 | % | $ | 88,285 | 8 | % | N/ | A | N/ | A | N/ | A | N/ | A | |||||||||||||||||
Bank | 175,541 | 15.9 | 88,336 | 8 | $ | 110,421 | 10 | % | N/ | A | N/ | A | |||||||||||||||||||||
Tier 1 capital (to risk weighted assets) | |||||||||||||||||||||||||||||||||
Consolidated | 163,150 | 14.8 | 44,143 | 4 | N/ | A | N/ | A | N/ | A | N/ | A | |||||||||||||||||||||
Bank | 161,646 | 14.6 | 44,168 | 4 | 66,252 | 6 | N/ | A | N/ | A | |||||||||||||||||||||||
Tier 1 capital (to average assets) | |||||||||||||||||||||||||||||||||
Consolidated | 163,150 | 10.9 | 59,922 | 4 | N/ | A | N/ | A | N/ | A | N/ | A | |||||||||||||||||||||
Bank | 161,646 | 10.8 | 59,887 | 4 | 74,859 | 5 | N/ | A | N/ | A | |||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
Total capital (to risk weighted assets) | |||||||||||||||||||||||||||||||||
Consolidated | $ | 168,929 | 15 | % | $ | 90,244 | 8 | % | N/ | A | N/ | A | N/ | A | N/ | A | |||||||||||||||||
Bank | 164,214 | 14.5 | 90,299 | 8 | $ | 112,874 | 10 | % | N/ | A | N/ | A | |||||||||||||||||||||
Tier 1 capital (to risk weighted assets) | |||||||||||||||||||||||||||||||||
Consolidated | 150,857 | 13.4 | 45,122 | 4 | N/ | A | N/ | A | N/ | A | N/ | A | |||||||||||||||||||||
Bank | 149,960 | 13.3 | 45,150 | 4 | 67,724 | 6 | N/ | A | N/ | A | |||||||||||||||||||||||
Tier 1 capital (to average assets) | |||||||||||||||||||||||||||||||||
Consolidated | 150,857 | 10.4 | 58,312 | 4 | N/ | A | N/ | A | N/ | A | N/ | A | |||||||||||||||||||||
Bank | 149,960 | 10.3 | 58,371 | 4 | 72,964 | 5 | $ | 116,742 | 8 | % | |||||||||||||||||||||||
-1 | The MOU is applicable only to the December 31, 2012 information presented in these columns. | ||||||||||||||||||||||||||||||||
Approximately $40.0 million and $37.7 million of trust preferred securities outstanding at September 30, 2013 and December 31, 2012, respectively, qualified as Tier 1 capital. Refer to our 2012 Form 10-K for more information on the trust preferred securities. | |||||||||||||||||||||||||||||||||
The Bank was categorized as "well capitalized" at September 30, 2013 and December 31, 2012. | |||||||||||||||||||||||||||||||||
On July 3, 2013, the FDIC Board of Directors approved the Regulatory Capital Interim Final Rule, implementing Basel III. This rule redefines Tier 1 capital as two components (Common Equity Tier 1 and Additional Tier 1), creates a new capital ratio (Common Equity Tier 1 Risk-based Capital Ratio) and implements a capital conservation buffer. It also revises the prompt corrective action thresholds and makes changes to risk weights for certain assets and off-balance-sheet exposures. Banks are required to transition into the new rule beginning on January 1, 2015. Based on our capital levels and balance sheet composition at September 30, 2013, we believe implementation of the new rule will have no material impact on our capital needs. | |||||||||||||||||||||||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Principles of Consolidation | Principles of Consolidation: The accompanying consolidated financial statements include the accounts of Macatawa Bank Corporation ("the Company", "our", "we") and its wholly-owned subsidiary, Macatawa Bank ("the Bank"). All significant intercompany accounts and transactions have been eliminated in consolidation. |
Macatawa Bank is a Michigan chartered bank with depository accounts insured by the Federal Deposit Insurance Corporation. The Bank operates 26 full service branch offices providing a full range of commercial and consumer banking and trust services in Kent County, Ottawa County, and northern Allegan County, Michigan. | |
The Company owns all of the common stock of Macatawa Statutory Trust I and Macatawa Statutory Trust II. These are grantor trusts that issued trust preferred securities and are not consolidated with the Company under accounting principles generally accepted in the United States of America. | |
Basis of Presentation | Basis of Presentation: The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring accruals) believed necessary for a fair presentation have been included. |
Operating results for the three and nine month periods ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. For further information, refer to the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2012. | |
Use of Estimates | Use of Estimates: To prepare financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and future results could differ. The allowance for loan losses, valuation of deferred tax assets, loss contingencies, fair value of other real estate owned and fair values of financial instruments are particularly subject to change. |
Regulatory Developments | Regulatory Developments: |
Release of Memorandum of Understanding with Macatawa Bank and its Regulators | |
On April 12, 2013, the Federal Deposit Insurance Corporation (“FDIC”) and the Michigan Department of Insurance and Financial Services (“DIFS”), the primary banking regulators of the Bank, notified the Bank that the Bank’s Memorandum of Understanding (“MOU”) with the FDIC and DIFS had served its purpose and was released. As a result, the Bank is no longer subject to any regulatory order, memorandum of understanding or other similar regulatory directive or proceeding and has returned to a normal regulatory operating environment. | |
The MOU documented an understanding the Bank reached with regulators in connection with termination of the Bank’s former Consent Order on March 2, 2012. The requirements of the MOU which are described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 are no longer applicable to the Bank. In particular, the enhanced regulatory capital requirements of the MOU no longer apply to the Bank and the Bank is no longer required to obtain the prior written consent of the FDIC and DIFS before the Bank declares or pays dividends. | |
We believe the FDIC and DIFS released the MOU as a result of: (i) the Bank's substantial compliance with the MOU, (ii) our implementation of enhanced corporate governance practices and disciplined business and banking principles, (iii) substantial improvements in the Bank's asset quality, (iv) improved liquidity, (v) continued improvement in the Bank's financial condition and earnings performance, and (vi) Bank regulatory capital levels well in excess of the levels required to be classified as "well capitalized" for regulatory purposes and to comply with our MOU due to our successful capital raise and the Bank's retained earnings. | |
Recission of Board Resolution | |
In connection with the termination of the Company’s Written Agreement by the Federal Reserve Bank of Chicago (“FRB”) on October 26, 2012, the Board of Directors of the Company adopted a resolution (the “Board Resolution”) requiring the Company to obtain written approval from the FRB before declaring or paying any dividends, increasing holding company debt, or redeeming any capital stock. By letter dated August 1, 2013, the FRB advised the Company that, based on the overall satisfactory condition of the organization, the FRB poses no objection should the Board of Directors choose to rescind the Board Resolution. Accordingly, the Company's Board of Directors rescinded the Board Resolution as of August 1, 2013. | |
Reclassifications | Reclassifications: Some items in the prior period financial statements were reclassified to conform to the current presentation. |
Allowance for Loan Losses | Allowance for Loan Losses: The allowance for loan losses (allowance) is a valuation allowance for probable incurred credit losses inherent in our loan portfolio, increased by the provision for loan losses and recoveries, and decreased by charge-offs of loans. Management believes the allowance for loan losses balance to be adequate based on known and inherent risks in the portfolio, past loan loss experience, information about specific borrower situations and estimated collateral values, economic conditions and other relevant factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged-off. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Management continues its collection efforts on previously charged-off balances and applies recoveries as additions to the allowance for loan losses. |
The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component covers non-classified loans and is based on historical loss experience adjusted for current qualitative factors. The Company maintains a loss migration analysis that tracks loan losses and recoveries based on loan class and the loan risk grade assignment for commercial loans. At September 30, 2013, an 18 month annualized historical loss experience was used for commercial loans and a 12 month historical loss experience period was applied to residential mortgage loans and consumer loans. These historical loss percentages are adjusted (both upwards and downwards) for certain qualitative factors, including economic trends, credit quality trends, valuation trends, concentration risk, quality of loan review, changes in personnel, external factors and other considerations. | |
A loan is impaired when, based on current information and events, it is believed to be probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified and a concession has been made, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. | |
Commercial and commercial real estate loans with relationship balances exceeding $500,000 and an internal risk grading of 6 or worse are evaluated for impairment. If a loan is impaired, a portion of the allowance is allocated and the loan is reported at the present value of estimated future cash flows using the loan’s existing interest rate or at the fair value of collateral, less estimated costs to sell, if repayment is expected solely from the collateral. Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans, are collectively evaluated for impairment and they are not separately identified for impairment disclosures. | |
Troubled debt restructurings are also considered impaired with impairment generally measured at the present value of estimated future cash flows using the loan’s effective rate at inception or using the fair value of collateral, less estimated costs to sell, if repayment is expected solely from the collateral. | |
Foreclosed Assets | Foreclosed Assets: Assets acquired through or instead of loan foreclosure, primarily other real estate owned, are initially recorded at fair value less estimated costs to sell when acquired, establishing a new cost basis. If fair value declines, a valuation allowance is recorded through expense. Costs after acquisition are expensed unless they add value to the property. |
Income Taxes | Income Taxes: Income tax expense is the sum of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. |
We recognize a tax position as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded. We recognize interest and penalties related to income tax matters in income tax expense. | |
Adoption of New Accounting Standards | Adoption of New Accounting Standards: The Financial Accounting Standards Board (“FASB”) has issued ASU 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This ASU is intended to improve the reporting of reclassifications out of accumulated other comprehensive income. The ASU requires an entity to report, either on the face of the statement where net income is presented or in the notes to the financial statements, the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S. GAAP to be reclassified in their entirety to net income. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under U.S. GAAP that provide additional detail about those amounts. The amendments in this ASU apply to all entities that issue financial statements that are presented in conformity with U.S. GAAP and that report items of other comprehensive income. For public entities, the amendments in this ASU are effective prospectively for reporting periods beginning after December 15, 2012. The Company adopted this ASU on January 1, 2013 by including the required disclosures in Note 2 to the consolidated financial statements. |
SECURITIES_Tables
SECURITIES (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
SECURITIES [Abstract] | |||||||||||||||||||||||||
Amortized cost and fair value of securities | The amortized cost and fair value of securities at period-end were as follows (dollars in thousands): | ||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||
Available for Sale: | |||||||||||||||||||||||||
U.S. Treasury and federal agency securities | $ | 53,606 | $ | 92 | $ | (1,210 | ) | $ | 52,488 | ||||||||||||||||
U.S. Agency MBS and CMOs | 18,848 | 21 | (267 | ) | 18,602 | ||||||||||||||||||||
Tax-exempt state and municipal bonds | 25,455 | 56 | (946 | ) | 24,565 | ||||||||||||||||||||
Taxable state and municipal bonds | 27,821 | 352 | (312 | ) | 27,861 | ||||||||||||||||||||
Corporate bonds and other debt securities | 10,439 | 59 | (63 | ) | 10,435 | ||||||||||||||||||||
Other equity securities | 1,500 | --- | (12 | ) | 1,488 | ||||||||||||||||||||
$ | 137,669 | $ | 580 | $ | (2,810 | ) | $ | 135,439 | |||||||||||||||||
Held to Maturity | |||||||||||||||||||||||||
State and municipal bonds | $ | 18,995 | $ | 449 | $ | --- | $ | 19,444 | |||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Available for Sale: | |||||||||||||||||||||||||
U.S. Treasury and federal agency securities | $ | 42,245 | $ | 340 | $ | (21 | ) | $ | 42,564 | ||||||||||||||||
U. S. Agency MBS and CMOs | 23,495 | 272 | (6 | ) | 23,761 | ||||||||||||||||||||
Tax-exempt state and municipal bonds | 20,598 | 244 | (49 | ) | 20,793 | ||||||||||||||||||||
Taxable state and municipal bonds | 26,726 | 619 | (49 | ) | 27,296 | ||||||||||||||||||||
Corporate bonds | 7,456 | 77 | (7 | ) | 7,526 | ||||||||||||||||||||
Other equity securities | 1,500 | 57 | --- | 1,557 | |||||||||||||||||||||
$ | 122,020 | $ | 1,609 | $ | (132 | ) | $ | 123,497 | |||||||||||||||||
Held to Maturity: | |||||||||||||||||||||||||
State and municipal bonds | $ | 4,300 | $ | 1 | $ | --- | $ | 4,301 | |||||||||||||||||
Contractual maturities of debt securities | Contractual maturities of debt securities at September 30, 2013 were as follows (dollars in thousands): | ||||||||||||||||||||||||
Held–to-Maturity Securities | Available-for-Sale Securities | ||||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | ||||||||||||||||||||||
Cost | Value | Cost | Value | ||||||||||||||||||||||
Due in one year or less | $ | 12,630 | $ | 13,026 | $ | 4,195 | $ | 4,227 | |||||||||||||||||
Due from one to five years | 430 | 430 | 56,572 | 56,585 | |||||||||||||||||||||
Due from five to ten years | 5,655 | 5,708 | 44,609 | 43,265 | |||||||||||||||||||||
Due after ten years | 280 | 280 | 30,793 | 29,874 | |||||||||||||||||||||
$ | 18,995 | $ | 19,444 | $ | 136,169 | $ | 133,951 | ||||||||||||||||||
Securities in continuous unrealized loss position | Securities with unrealized losses at September 30, 2013 and December 31, 2012, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows (dollars in thousands): | ||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
30-Sep-13 | Value | Loss | Value | Loss | Value | Loss | |||||||||||||||||||
U.S. Treasury and federal agency securities | $ | 43,255 | $ | (1,210 | ) | $ | --- | $ | --- | $ | 43,255 | $ | (1,210 | ) | |||||||||||
U.S. Agency MBS and CMOs | 15,930 | (267 | ) | --- | --- | 15,930 | (267 | ) | |||||||||||||||||
Tax-exempt state and municipal bonds | 20,051 | (946 | ) | --- | --- | 20,051 | (946 | ) | |||||||||||||||||
Taxable state and municipal bonds | 10,505 | (285 | ) | 756 | (27 | ) | 11,261 | (312 | ) | ||||||||||||||||
Corporate bonds and other debt securities | 4,157 | (63 | ) | --- | --- | 4,157 | (63 | ) | |||||||||||||||||
Other equity securities | 1,488 | (12 | ) | --- | --- | 1,488 | (12 | ) | |||||||||||||||||
Total temporarily impaired | $ | 95,386 | $ | (2,783 | ) | $ | 756 | $ | (27 | ) | $ | 96,142 | $ | (2,810 | ) | ||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
31-Dec-12 | Value | Loss | Value | Loss | Value | Loss | |||||||||||||||||||
U.S. Treasury and federal agency securities | $ | 10,977 | $ | (21 | ) | $ | --- | $ | --- | $ | 10,977 | $ | (21 | ) | |||||||||||
U.S. Agency MBS and CMOs | 3,373 | (6 | ) | --- | --- | 3,373 | (6 | ) | |||||||||||||||||
Tax-exempt state and municipal bonds | 4,613 | (49 | ) | --- | --- | 4,613 | (49 | ) | |||||||||||||||||
Taxable state and municipal bonds | 4,661 | (49 | ) | --- | --- | 4,661 | (49 | ) | |||||||||||||||||
Corporate bonds | 3,945 | (7 | ) | --- | --- | 3,945 | (7 | ) | |||||||||||||||||
Other equity securities | --- | --- | --- | --- | --- | --- | |||||||||||||||||||
Total temporarily impaired | $ | 27,569 | $ | (132 | ) | $ | --- | $ | --- | $ | 27,569 | $ | (132 | ) | |||||||||||
LOANS_Tables
LOANS (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
LOANS [Abstract] | |||||||||||||||||||||||||||||||||
Portfolio loans | Portfolio loans were as follows (dollars in thousands): | ||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 253,216 | $ | 259,700 | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Residential developed | 20,805 | 26,090 | |||||||||||||||||||||||||||||||
Unsecured to residential developers | 7,326 | 5,547 | |||||||||||||||||||||||||||||||
Vacant and unimproved | 48,977 | 56,525 | |||||||||||||||||||||||||||||||
Commercial development | 4,319 | 1,799 | |||||||||||||||||||||||||||||||
Residential improved | 77,414 | 75,813 | |||||||||||||||||||||||||||||||
Commercial improved | 243,688 | 255,738 | |||||||||||||||||||||||||||||||
Manufacturing and industrial | 79,403 | 81,447 | |||||||||||||||||||||||||||||||
Total commercial real estate | 481,932 | 502,959 | |||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||
Residential mortgage | 185,025 | 182,625 | |||||||||||||||||||||||||||||||
Unsecured | 1,464 | 1,683 | |||||||||||||||||||||||||||||||
Home equity | 96,790 | 92,764 | |||||||||||||||||||||||||||||||
Other secured | 10,366 | 12,617 | |||||||||||||||||||||||||||||||
Total consumer | 293,645 | 289,689 | |||||||||||||||||||||||||||||||
Total loans | 1,028,793 | 1,052,348 | |||||||||||||||||||||||||||||||
Allowance for loan losses | (21,272 | ) | (23,739 | ) | |||||||||||||||||||||||||||||
$ | 1,007,521 | $ | 1,028,609 | ||||||||||||||||||||||||||||||
Activity in allowance for loan losses by portfolio segment | Activity in the allowance for loan losses by portfolio segment was as follows (dollars in thousands): | ||||||||||||||||||||||||||||||||
Commercial and | Commercial | ||||||||||||||||||||||||||||||||
Three months ended September 30, 2013: | Industrial | Real Estate | Consumer | Unallocated | Total | ||||||||||||||||||||||||||||
Beginning balance | $ | 5,602 | $ | 12,324 | $ | 4,255 | $ | 67 | $ | 22,248 | |||||||||||||||||||||||
Charge-offs | (23 | ) | (202 | ) | (129 | ) | --- | (354 | ) | ||||||||||||||||||||||||
Recoveries | 585 | 253 | 40 | --- | 878 | ||||||||||||||||||||||||||||
Provision for loan losses | (446 | ) | (1,253 | ) | 230 | (31 | ) | (1,500 | ) | ||||||||||||||||||||||||
Ending Balance | $ | 5,718 | $ | 11,122 | $ | 4,396 | $ | 36 | $ | 21,272 | |||||||||||||||||||||||
Commercial and | Commercial | ||||||||||||||||||||||||||||||||
Three months ended September 30, 2012: | Industrial | Real Estate | Consumer | Unallocated | Total | ||||||||||||||||||||||||||||
Beginning balance | $ | 6,638 | $ | 15,239 | $ | 5,254 | $ | 49 | $ | 27,180 | |||||||||||||||||||||||
Charge-offs | (239 | ) | (173 | ) | (203 | ) | --- | (615 | ) | ||||||||||||||||||||||||
Recoveries | 110 | 777 | 69 | --- | 956 | ||||||||||||||||||||||||||||
Provision for loan losses | (575 | ) | (552 | ) | (131 | ) | 8 | (1,250 | ) | ||||||||||||||||||||||||
Ending Balance | $ | 5,934 | $ | 15,291 | $ | 4,989 | $ | 57 | $ | 26,271 | |||||||||||||||||||||||
Commercial and | Commercial | ||||||||||||||||||||||||||||||||
Nine months ended September 30, 2013: | Industrial | Real Estate | Consumer | Unallocated | Total | ||||||||||||||||||||||||||||
Beginning balance | $ | 6,459 | $ | 13,457 | $ | 3,787 | $ | 36 | $ | 23,739 | |||||||||||||||||||||||
Charge-offs | (272 | ) | (661 | ) | (762 | ) | --- | (1,695 | ) | ||||||||||||||||||||||||
Recoveries | 1,011 | 1,248 | 219 | --- | 2,478 | ||||||||||||||||||||||||||||
Provision for loan losses | (1,480 | ) | (2,922 | ) | 1,152 | --- | (3,250 | ) | |||||||||||||||||||||||||
Ending Balance | $ | 5,718 | $ | 11,122 | $ | 4,396 | $ | 36 | $ | 21,272 | |||||||||||||||||||||||
Commercial and | Commercial | ||||||||||||||||||||||||||||||||
Nine months ended September 30, 2012: | Industrial | Real Estate | Consumer | Unallocated | Total | ||||||||||||||||||||||||||||
Beginning balance | $ | 6,313 | $ | 20,475 | $ | 4,821 | $ | 32 | $ | 31,641 | |||||||||||||||||||||||
Charge-offs | (1,228 | ) | (2,679 | ) | (1,104 | ) | --- | (5,011 | ) | ||||||||||||||||||||||||
Recoveries | 390 | 5,662 | 189 | --- | 6,241 | ||||||||||||||||||||||||||||
Provision for loan losses | 459 | (8,167 | ) | 1,083 | 25 | (6,600 | ) | ||||||||||||||||||||||||||
Ending Balance | $ | 5,934 | $ | 15,291 | $ | 4,989 | $ | 57 | $ | 26,271 | |||||||||||||||||||||||
Allowance for loan losses and recorded investment in loans by portfolio segment based on impairment method | The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method (dollars in thousands): | ||||||||||||||||||||||||||||||||
Commercial and | Commercial | ||||||||||||||||||||||||||||||||
September 30, 2013: | Industrial | Real Estate | Consumer | Unallocated | Total | ||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Ending allowance attributable to loans: | |||||||||||||||||||||||||||||||||
Individually reviewed for impairment | $ | 2,193 | $ | 1,555 | $ | 914 | $ | --- | $ | 4,662 | |||||||||||||||||||||||
Collectively evaluated for impairment | 3,525 | 9,567 | 3,482 | 36 | 16,610 | ||||||||||||||||||||||||||||
Total ending allowance balance | $ | 5,718 | $ | 11,122 | $ | 4,396 | $ | 36 | $ | 21,272 | |||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||
Individually reviewed for impairment | $ | 12,218 | $ | 45,895 | $ | 15,030 | $ | --- | $ | 73,143 | |||||||||||||||||||||||
Collectively evaluated for impairment | 240,998 | 436,037 | 278,615 | --- | 955,650 | ||||||||||||||||||||||||||||
Total ending loans balance | $ | 253,216 | $ | 481,932 | $ | 293,645 | $ | --- | $ | 1,028,793 | |||||||||||||||||||||||
Commercial and | Commercial | ||||||||||||||||||||||||||||||||
December 31, 2012: | Industrial | Real Estate | Consumer | Unallocated | Total | ||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Ending allowance attributable to loans: | |||||||||||||||||||||||||||||||||
Individually reviewed for impairment | $ | 2,920 | $ | 2,418 | $ | 716 | $ | --- | $ | 6,054 | |||||||||||||||||||||||
Collectively evaluated for impairment | 3,539 | 11,039 | 3,071 | 36 | 17,685 | ||||||||||||||||||||||||||||
Total ending allowance balance | $ | 6,459 | $ | 13,457 | $ | 3,787 | $ | 36 | $ | 23,739 | |||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||
Individually reviewed for impairment | $ | 14,390 | $ | 54,831 | $ | 14,086 | $ | --- | $ | 83,307 | |||||||||||||||||||||||
Collectively evaluated for impairment | 245,310 | 448,128 | 275,603 | --- | 969,041 | ||||||||||||||||||||||||||||
Total ending loans balance | $ | 259,700 | $ | 502,959 | $ | 289,689 | $ | --- | $ | 1,052,348 | |||||||||||||||||||||||
Loans individually evaluated for impairment by class of loans | The following table presents loans individually evaluated for impairment by class of loans as of September 30, 2013 (dollars in thousands): | ||||||||||||||||||||||||||||||||
Unpaid | |||||||||||||||||||||||||||||||||
Principal | Recorded | Allowance | |||||||||||||||||||||||||||||||
Balance | Investment | Allocated | |||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 3,250 | $ | 3,247 | $ | --- | |||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Residential developed | 5,344 | 4,411 | --- | ||||||||||||||||||||||||||||||
Unsecured to residential developers | --- | --- | --- | ||||||||||||||||||||||||||||||
Vacant and unimproved | 413 | 413 | --- | ||||||||||||||||||||||||||||||
Commercial development | 586 | 586 | --- | ||||||||||||||||||||||||||||||
Residential improved | 1,089 | 1,089 | --- | ||||||||||||||||||||||||||||||
Commercial improved | 3,727 | 3,525 | --- | ||||||||||||||||||||||||||||||
Manufacturing and industrial | 808 | 808 | --- | ||||||||||||||||||||||||||||||
11,967 | 10,832 | --- | |||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Residential mortgage | --- | --- | --- | ||||||||||||||||||||||||||||||
Unsecured | --- | --- | --- | ||||||||||||||||||||||||||||||
Home equity | --- | --- | --- | ||||||||||||||||||||||||||||||
Other secured | --- | --- | --- | ||||||||||||||||||||||||||||||
--- | --- | --- | |||||||||||||||||||||||||||||||
$ | 15,217 | $ | 14,079 | $ | --- | ||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 8,971 | $ | 8,971 | $ | 2,193 | |||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Residential developed | 1,449 | 1,449 | 158 | ||||||||||||||||||||||||||||||
Unsecured to residential developers | --- | --- | --- | ||||||||||||||||||||||||||||||
Vacant and unimproved | 1,943 | 1,943 | 85 | ||||||||||||||||||||||||||||||
Commercial development | 2,061 | 2,061 | 37 | ||||||||||||||||||||||||||||||
Residential improved | 9,776 | 9,776 | 328 | ||||||||||||||||||||||||||||||
Commercial improved | 14,087 | 14,087 | 827 | ||||||||||||||||||||||||||||||
Manufacturing and industrial | 5,747 | 5,747 | 120 | ||||||||||||||||||||||||||||||
35,063 | 35,063 | 1,555 | |||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Residential mortgage | 9,219 | 9,219 | 561 | ||||||||||||||||||||||||||||||
Unsecured | --- | --- | --- | ||||||||||||||||||||||||||||||
Home equity | 5,811 | 5,811 | 353 | ||||||||||||||||||||||||||||||
Other secured | --- | --- | --- | ||||||||||||||||||||||||||||||
15,030 | 15,030 | 914 | |||||||||||||||||||||||||||||||
$ | 59,064 | $ | 59,064 | $ | 4,662 | ||||||||||||||||||||||||||||
Total | $ | 74,281 | $ | 73,143 | $ | 4,662 | |||||||||||||||||||||||||||
The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2012 (dollars in thousands): | |||||||||||||||||||||||||||||||||
Unpaid | |||||||||||||||||||||||||||||||||
Principal | Recorded | Allowance | |||||||||||||||||||||||||||||||
Balance | Investment | Allocated | |||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 2,515 | $ | 2,512 | $ | --- | |||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Residential developed | 7,136 | 6,283 | --- | ||||||||||||||||||||||||||||||
Unsecured to residential developers | --- | --- | --- | ||||||||||||||||||||||||||||||
Vacant and unimproved | 2,321 | 2,136 | --- | ||||||||||||||||||||||||||||||
Commercial development | 213 | 213 | --- | ||||||||||||||||||||||||||||||
Residential improved | 3,293 | 3,019 | --- | ||||||||||||||||||||||||||||||
Commercial improved | 7,268 | 6,127 | --- | ||||||||||||||||||||||||||||||
Manufacturing and industrial | 3,686 | 3,686 | --- | ||||||||||||||||||||||||||||||
23,917 | 21,464 | --- | |||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Residential mortgage | 4,614 | 3,062 | --- | ||||||||||||||||||||||||||||||
Unsecured | --- | --- | --- | ||||||||||||||||||||||||||||||
Home equity | --- | --- | --- | ||||||||||||||||||||||||||||||
Other secured | --- | --- | --- | ||||||||||||||||||||||||||||||
4,614 | 3,062 | --- | |||||||||||||||||||||||||||||||
$ | 31,046 | $ | 27,038 | $ | --- | ||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 11,878 | $ | 11,878 | $ | 2,920 | |||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Residential developed | 1,524 | 1,524 | 337 | ||||||||||||||||||||||||||||||
Unsecured to residential developers | --- | --- | --- | ||||||||||||||||||||||||||||||
Vacant and unimproved | 1,688 | 1,688 | 34 | ||||||||||||||||||||||||||||||
Commercial development | --- | --- | --- | ||||||||||||||||||||||||||||||
Residential improved | 10,063 | 10,063 | 842 | ||||||||||||||||||||||||||||||
Commercial improved | 15,386 | 15,386 | 1,071 | ||||||||||||||||||||||||||||||
Manufacturing and industrial | 4,706 | 4,706 | 134 | ||||||||||||||||||||||||||||||
33,367 | 33,367 | 2,418 | |||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Residential mortgage | 10,220 | 10,220 | 664 | ||||||||||||||||||||||||||||||
Unsecured | --- | --- | --- | ||||||||||||||||||||||||||||||
Home equity | 804 | 804 | 52 | ||||||||||||||||||||||||||||||
Other secured | --- | --- | --- | ||||||||||||||||||||||||||||||
11,024 | 11,024 | 716 | |||||||||||||||||||||||||||||||
$ | 56,269 | $ | 56,269 | $ | 6,054 | ||||||||||||||||||||||||||||
Total | $ | 87,315 | $ | 83,307 | $ | 6,054 | |||||||||||||||||||||||||||
Average balances of impaired loans and interest recognized on impaired loans | The following table presents information regarding average balances of impaired loans and interest recognized on impaired loans for the three and nine month periods ended September 30, 2013 and 2012 (dollars in thousands): | ||||||||||||||||||||||||||||||||
Three | Three | Nine | Nine | ||||||||||||||||||||||||||||||
Months | Months | Months | Months | ||||||||||||||||||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Average of impaired loans during the period: | |||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 12,325 | $ | 12,415 | $ | 14,794 | $ | 15,388 | |||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Residential developed | 5,898 | 7,989 | 6,526 | 8,293 | |||||||||||||||||||||||||||||
Unsecured to residential developers | --- | --- | --- | --- | |||||||||||||||||||||||||||||
Vacant and unimproved | 2,542 | 4,219 | 3,073 | 3,854 | |||||||||||||||||||||||||||||
Commercial development | 1,233 | 215 | 421 | 217 | |||||||||||||||||||||||||||||
Residential improved | 11,072 | 12,707 | 11,759 | 13,564 | |||||||||||||||||||||||||||||
Commercial improved | 19,449 | 17,766 | 20,809 | 17,049 | |||||||||||||||||||||||||||||
Manufacturing and industrial | 6,105 | 9,104 | 6,420 | 9,291 | |||||||||||||||||||||||||||||
Consumer | 14,984 | 15,992 | 14,599 | 16,018 | |||||||||||||||||||||||||||||
Interest income recognized during impairment: | |||||||||||||||||||||||||||||||||
Commercial and industrial | 186 | 263 | 915 | 1,090 | |||||||||||||||||||||||||||||
Commercial real estate | 478 | 637 | 1,656 | 1,848 | |||||||||||||||||||||||||||||
Consumer | 141 | 141 | 409 | 419 | |||||||||||||||||||||||||||||
Cash-basis interest income recognized | |||||||||||||||||||||||||||||||||
Commercial and industrial | 194 | 250 | 914 | 1,065 | |||||||||||||||||||||||||||||
Commercial real estate | 465 | 637 | 1,648 | 1,852 | |||||||||||||||||||||||||||||
Consumer | 141 | 141 | 402 | 417 | |||||||||||||||||||||||||||||
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans | The following table presents the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of September 30, 2013: | ||||||||||||||||||||||||||||||||
Over 90 | |||||||||||||||||||||||||||||||||
days | |||||||||||||||||||||||||||||||||
Nonaccrual | Accruing | ||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 4,240 | $ | --- | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Residential developed | 2,216 | --- | |||||||||||||||||||||||||||||||
Unsecured to residential developers | --- | --- | |||||||||||||||||||||||||||||||
Vacant and unimproved | 435 | --- | |||||||||||||||||||||||||||||||
Commercial development | 23 | --- | |||||||||||||||||||||||||||||||
Residential improved | 485 | --- | |||||||||||||||||||||||||||||||
Commercial improved | 1,603 | 172 | |||||||||||||||||||||||||||||||
Manufacturing and industrial | --- | --- | |||||||||||||||||||||||||||||||
4,762 | 172 | ||||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Residential mortgage | 639 | --- | |||||||||||||||||||||||||||||||
Unsecured | 33 | --- | |||||||||||||||||||||||||||||||
Home equity | 374 | --- | |||||||||||||||||||||||||||||||
Other secured | --- | --- | |||||||||||||||||||||||||||||||
1,046 | --- | ||||||||||||||||||||||||||||||||
Total | $ | 10,048 | $ | 172 | |||||||||||||||||||||||||||||
The following table presents the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of December 31, 2012: | |||||||||||||||||||||||||||||||||
Over 90 | |||||||||||||||||||||||||||||||||
days | |||||||||||||||||||||||||||||||||
Nonaccrual | Accruing | ||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 7,657 | $ | --- | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Residential developed | 3,024 | --- | |||||||||||||||||||||||||||||||
Unsecured to residential developers | --- | --- | |||||||||||||||||||||||||||||||
Vacant and unimproved | 706 | --- | |||||||||||||||||||||||||||||||
Commercial development | 2 | 196 | |||||||||||||||||||||||||||||||
Residential improved | 1,159 | --- | |||||||||||||||||||||||||||||||
Commercial improved | 1,521 | 422 | |||||||||||||||||||||||||||||||
Manufacturing and industrial | 225 | --- | |||||||||||||||||||||||||||||||
6,637 | 618 | ||||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Residential mortgage | 447 | --- | |||||||||||||||||||||||||||||||
Unsecured | 19 | --- | |||||||||||||||||||||||||||||||
Home equity | 625 | --- | |||||||||||||||||||||||||||||||
Other secured | --- | --- | |||||||||||||||||||||||||||||||
1,091 | --- | ||||||||||||||||||||||||||||||||
Total | $ | 15,385 | $ | 618 | |||||||||||||||||||||||||||||
Aging of recorded investment in past due loans by class of loans | The following table presents the aging of the recorded investment in past due loans as of September 30, 2013 by class of loans (dollars in thousands): | ||||||||||||||||||||||||||||||||
30-90 | Greater Than | Total | Loans Not | ||||||||||||||||||||||||||||||
Days | 90 Days | Past Due | Past Due | Total | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 103 | $ | 17 | $ | 120 | $ | 253,096 | $ | 253,216 | |||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Residential developed | --- | 1,917 | 1,917 | 18,888 | 20,805 | ||||||||||||||||||||||||||||
Unsecured to residential developers | --- | --- | --- | 7,326 | 7,326 | ||||||||||||||||||||||||||||
Vacant and unimproved | --- | 407 | 407 | 48,570 | 48,977 | ||||||||||||||||||||||||||||
Commercial development | --- | 23 | 23 | 4,296 | 4,319 | ||||||||||||||||||||||||||||
Residential improved | 174 | 124 | 298 | 77,116 | 77,414 | ||||||||||||||||||||||||||||
Commercial improved | 1,949 | 1,432 | 3,381 | 240,307 | 243,688 | ||||||||||||||||||||||||||||
Manufacturing and industrial | --- | --- | --- | 79,403 | 79,403 | ||||||||||||||||||||||||||||
2,123 | 3,903 | 6,026 | 475,906 | 481,932 | |||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Residential mortgage | 395 | 636 | 1,031 | 183,994 | 185,025 | ||||||||||||||||||||||||||||
Unsecured | --- | --- | --- | 1,464 | 1,464 | ||||||||||||||||||||||||||||
Home equity | 538 | 38 | 576 | 96,214 | 96,790 | ||||||||||||||||||||||||||||
Other secured | 78 | --- | 78 | 10,288 | 10,366 | ||||||||||||||||||||||||||||
1,011 | 674 | 1,685 | 291,960 | 293,645 | |||||||||||||||||||||||||||||
Total | $ | 3,237 | $ | 4,594 | $ | 7,831 | $ | 1,020,962 | $ | 1,028,793 | |||||||||||||||||||||||
The following table presents the aging of the recorded investment in past due loans as of December 31, 2012 by class of loans (dollars in thousands): | |||||||||||||||||||||||||||||||||
30-90 | Greater Than | Total | Loans Not | ||||||||||||||||||||||||||||||
Days | 90 Days | Past Due | Past Due | Total | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 395 | $ | 219 | $ | 614 | $ | 259,086 | $ | 259,700 | |||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Residential developed | --- | 35 | 35 | 26,055 | 26,090 | ||||||||||||||||||||||||||||
Unsecured to residential developers | --- | --- | --- | 5,547 | 5,547 | ||||||||||||||||||||||||||||
Vacant and unimproved | 17 | 652 | 669 | 55,856 | 56,525 | ||||||||||||||||||||||||||||
Commercial development | --- | 199 | 199 | 1,600 | 1,799 | ||||||||||||||||||||||||||||
Residential improved | 520 | 192 | 712 | 75,101 | 75,813 | ||||||||||||||||||||||||||||
Commercial improved | 2,502 | 1,436 | 3,938 | 251,800 | 255,738 | ||||||||||||||||||||||||||||
Manufacturing and industrial | 200 | 25 | 225 | 81,222 | 81,447 | ||||||||||||||||||||||||||||
3,239 | 2,539 | 5,778 | 497,181 | 502,959 | |||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Residential mortgage | 647 | 110 | 757 | 181,868 | 182,625 | ||||||||||||||||||||||||||||
Unsecured | --- | --- | --- | 1,683 | 1,683 | ||||||||||||||||||||||||||||
Home equity | 415 | 264 | 679 | 92,085 | 92,764 | ||||||||||||||||||||||||||||
Other secured | 59 | --- | 59 | 12,558 | 12,617 | ||||||||||||||||||||||||||||
1,121 | 374 | 1,495 | 288,194 | 289,689 | |||||||||||||||||||||||||||||
Total | $ | 4,755 | $ | 3,132 | $ | 7,887 | $ | 1,044,461 | $ | 1,052,348 | |||||||||||||||||||||||
Troubled debt restructurings | The following table presents information regarding troubled debt restructurings as of September 30, 2013 and December 31, 2012 (dollars in thousands): | ||||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||
Number of | Outstanding | Number of | Outstanding | ||||||||||||||||||||||||||||||
Loans | Recorded | Loans | Recorded | ||||||||||||||||||||||||||||||
Balance | Balance | ||||||||||||||||||||||||||||||||
Commercial and industrial | 55 | $ | 12,218 | 58 | $ | 14,485 | |||||||||||||||||||||||||||
Commercial real estate | 121 | 43,321 | 142 | 49,936 | |||||||||||||||||||||||||||||
Consumer | 112 | 15,075 | 86 | 13,634 | |||||||||||||||||||||||||||||
288 | $ | 70,614 | 286 | $ | 78,055 | ||||||||||||||||||||||||||||
The following table presents information regarding troubled debt restructurings executed during the three month periods ended September 30, 2013 and 2012 (dollars in thousands): | |||||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||||||||||||||||||||||
Number of | Outstanding | Principal | Number of | Outstanding | Principal | ||||||||||||||||||||||||||||
Loans | Recorded | Writedown | Loans | Recorded | Writedown | ||||||||||||||||||||||||||||
Balance | upon | Balance | upon | ||||||||||||||||||||||||||||||
Modification | Modification | ||||||||||||||||||||||||||||||||
Commercial and industrial | 2 | $ | 823 | $ | --- | 1 | $ | 15 | $ | --- | |||||||||||||||||||||||
Commercial real estate | 2 | 186 | --- | 5 | 2,538 | --- | |||||||||||||||||||||||||||
Consumer | 3 | 137 | --- | --- | --- | --- | |||||||||||||||||||||||||||
7 | $ | 1,146 | $ | --- | 6 | $ | 2,553 | $ | --- | ||||||||||||||||||||||||
The following table presents information regarding troubled debt restructurings executed during the nine month periods ended September 30, 2013 and 2012 (dollars in thousands): | |||||||||||||||||||||||||||||||||
Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||||||||||||||||||||||
Number of | Outstanding | Principal | Number of | Outstanding | Principal | ||||||||||||||||||||||||||||
Loans | Recorded | Writedown | Loans | Recorded | Writedown | ||||||||||||||||||||||||||||
Balance | upon | Balance | upon | ||||||||||||||||||||||||||||||
Modification | Modification | ||||||||||||||||||||||||||||||||
Commercial and industrial | 5 | $ | 1,085 | $ | --- | 14 | $ | 1,351 | $ | 9 | |||||||||||||||||||||||
Commercial real estate | 11 | 2,903 | --- | 44 | 10,236 | 86 | |||||||||||||||||||||||||||
Consumer | 33 | 5,606 | 1,770 | 9 | 1,462 | 260 | |||||||||||||||||||||||||||
49 | $ | 9,594 | $ | 1,770 | 67 | $ | 13,049 | $ | 355 | ||||||||||||||||||||||||
Modifications and renewal during period that are not considered TDRs | The following table presents information regarding modifications and renewals executed during the three month periods ended September 30, 2013 and 2012 that are not considered TDRs (dollars in thousands): | ||||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||||||||||||||||||||||
Number of | Outstanding | Number of | Outstanding | ||||||||||||||||||||||||||||||
Loans | Recorded | Loans | Recorded | ||||||||||||||||||||||||||||||
Balance | Balance | ||||||||||||||||||||||||||||||||
Commercial and industrial | 141 | $ | 24,425 | 166 | $ | 27,615 | |||||||||||||||||||||||||||
Commercial real estate | 80 | 19,422 | 112 | 40,784 | |||||||||||||||||||||||||||||
Consumer | 10 | 271 | 50 | 2,320 | |||||||||||||||||||||||||||||
231 | $ | 44,118 | 328 | $ | 70,719 | ||||||||||||||||||||||||||||
The following table presents information regarding modifications and renewals executed during the nine month periods ended September 30, 2013 and 2012 that are not considered TDRs (dollars in thousands): | |||||||||||||||||||||||||||||||||
Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||||||||||||||||||||||
Number of | Outstanding | Number of | Outstanding | ||||||||||||||||||||||||||||||
Loans | Recorded | Loans | Recorded | ||||||||||||||||||||||||||||||
Balance | Balance | ||||||||||||||||||||||||||||||||
Commercial and industrial | 351 | $ | 72,878 | 398 | $ | 88,059 | |||||||||||||||||||||||||||
Commercial real estate | 277 | 95,058 | 256 | 97,583 | |||||||||||||||||||||||||||||
Consumer | 38 | 1,203 | 66 | 2,701 | |||||||||||||||||||||||||||||
666 | $ | 169,139 | 720 | $ | 188,343 | ||||||||||||||||||||||||||||
Troubled debt restructured loans that defaulted during the period | The table below presents, by class, information regarding troubled debt restructurings which had payment defaults during the three month periods ended September 30, 2013 and 2012 (dollars in thousands). Included are loans that became delinquent more than 90 days past due or transferred to nonaccrual within 12 months of restructuring. | ||||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||||||||||||||||||||||
Number of | Outstanding | Number of | Outstanding | ||||||||||||||||||||||||||||||
Loans | Recorded | Loans | Recorded | ||||||||||||||||||||||||||||||
Balance | Balance | ||||||||||||||||||||||||||||||||
Commercial and industrial | --- | $ | --- | --- | $ | --- | |||||||||||||||||||||||||||
Commercial real estate | --- | --- | 1 | 136 | |||||||||||||||||||||||||||||
Consumer | --- | --- | 1 | 114 | |||||||||||||||||||||||||||||
The table below presents, by class, information regarding troubled debt restructurings which had payment defaults during the nine month periods ended September 30, 2013 and 2012 (dollars in thousands). Included are loans that became delinquent more than 90 days past due or transferred to nonaccrual within 12 months of restructuring. | |||||||||||||||||||||||||||||||||
Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||||||||||||||||||||||
Number of | Outstanding | Number of | Outstanding | ||||||||||||||||||||||||||||||
Loans | Recorded | Loans | Recorded | ||||||||||||||||||||||||||||||
Balance | Balance | ||||||||||||||||||||||||||||||||
Commercial and industrial | --- | $ | --- | 3 | $ | 112 | |||||||||||||||||||||||||||
Commercial real estate | --- | --- | 2 | 212 | |||||||||||||||||||||||||||||
Consumer | --- | --- | 2 | 184 | |||||||||||||||||||||||||||||
Risk grade category of loans by class of loans | As of September 30, 2013, the risk grade category of commercial loans by class of loans was as follows (dollars in thousands): | ||||||||||||||||||||||||||||||||
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | ||||||||||||||||||||||||||
Commercial and industrial | $ | 1,207 | $ | 13,835 | $ | 69,640 | $ | 152,822 | $ | 9,683 | $ | 1,790 | $ | 4,239 | $ | --- | |||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Residential developed | --- | --- | 1,144 | 5,720 | 6,890 | 4,835 | 2,216 | --- | |||||||||||||||||||||||||
Unsecured to residential developers | --- | --- | --- | 7,318 | 8 | --- | --- | --- | |||||||||||||||||||||||||
Vacant and unimproved | --- | --- | 12,570 | 27,224 | 8,293 | 455 | 435 | --- | |||||||||||||||||||||||||
Commercial development | --- | --- | --- | 1,479 | 2,609 | 209 | 22 | --- | |||||||||||||||||||||||||
Residential improved | --- | 111 | 15,971 | 41,708 | 12,034 | 7,105 | 485 | --- | |||||||||||||||||||||||||
Commercial improved | --- | 3,843 | 49,762 | 151,735 | 29,160 | 7,585 | 1,603 | --- | |||||||||||||||||||||||||
Manufacturing and industrial | --- | 337 | 24,623 | 43,528 | 8,820 | 2,095 | --- | --- | |||||||||||||||||||||||||
$ | 1,207 | $ | 18,126 | $ | 173,710 | $ | 431,534 | $ | 77,497 | $ | 24,074 | $ | 9,000 | $ | --- | ||||||||||||||||||
As of December 31, 2012, the risk grade category of commercial loans by class of loans was as follows (dollars in thousands): | |||||||||||||||||||||||||||||||||
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | ||||||||||||||||||||||||||
Commercial and industrial | $ | 1,349 | $ | 20,630 | $ | 72,723 | $ | 141,425 | $ | 12,027 | $ | 3,884 | $ | 7,662 | $ | --- | |||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Residential developed | --- | --- | 715 | 6,240 | 9,772 | 6,339 | 3,024 | --- | |||||||||||||||||||||||||
Unsecured to residential developers | --- | --- | --- | 5,535 | 12 | --- | --- | --- | |||||||||||||||||||||||||
Vacant and unimproved | --- | --- | 12,532 | 29,654 | 12,412 | 1,221 | 706 | --- | |||||||||||||||||||||||||
Commercial development | --- | --- | --- | 482 | 1,102 | 213 | 2 | --- | |||||||||||||||||||||||||
Residential improved | --- | 115 | 9,973 | 41,578 | 14,471 | 8,517 | 1,159 | --- | |||||||||||||||||||||||||
Commercial improved | --- | 2,009 | 40,253 | 159,353 | 37,449 | 15,153 | 1,521 | --- | |||||||||||||||||||||||||
Manufacturing and industrial | --- | 2,087 | 17,795 | 48,061 | 9,592 | 3,687 | 225 | --- | |||||||||||||||||||||||||
$ | 1,349 | $ | 24,841 | $ | 153,991 | $ | 432,328 | $ | 96,837 | $ | 39,014 | $ | 14,299 | $ | --- | ||||||||||||||||||
Commercial loans classified as substandard or worse | Commercial loans classified as substandard or worse were as follows at period-end (dollars in thousands): | ||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Not classified as impaired | $ | 8,780 | $ | 13,015 | |||||||||||||||||||||||||||||
Classified as impaired | 24,294 | 40,298 | |||||||||||||||||||||||||||||||
Total commercial loans classified substandard or worse | $ | 33,074 | $ | 53,313 | |||||||||||||||||||||||||||||
Recorded investment in consumer loans based on payment activity | The following table presents the recorded investment in consumer loans based on payment activity (dollars in thousands): | ||||||||||||||||||||||||||||||||
Residential | Consumer | Home | Consumer | ||||||||||||||||||||||||||||||
30-Sep-13 | Mortgage | Unsecured | Equity | Other | |||||||||||||||||||||||||||||
Performing | $ | 184,389 | $ | 1,464 | $ | 96,752 | $ | 10,366 | |||||||||||||||||||||||||
Nonperforming | 636 | --- | 38 | --- | |||||||||||||||||||||||||||||
Total | $ | 185,025 | $ | 1,464 | $ | 96,790 | $ | 10,366 | |||||||||||||||||||||||||
Residential | Consumer | Home | Consumer | ||||||||||||||||||||||||||||||
31-Dec-12 | Mortgage | Unsecured | Equity | Other | |||||||||||||||||||||||||||||
Performing | $ | 182,515 | $ | 1,683 | $ | 92,500 | $ | 12,617 | |||||||||||||||||||||||||
Nonperforming | 110 | --- | 264 | --- | |||||||||||||||||||||||||||||
Total | $ | 182,625 | $ | 1,683 | $ | 92,764 | $ | 12,617 | |||||||||||||||||||||||||
OTHER_REAL_ESTATE_OWNED_Tables
OTHER REAL ESTATE OWNED (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
OTHER REAL ESTATE OWNED [Abstract] | |||||||||||||
Period-end other real estate owned | Other real estate owned was as follows (dollars in thousands): | ||||||||||||
Nine | Year | Nine | |||||||||||
Months Ended | Ended | Months Ended | |||||||||||
September 30, | December 31, | September 30, | |||||||||||
2013 | 2012 | 2012 | |||||||||||
Beginning balance | $ | 69,743 | $ | 83,663 | $ | 83,663 | |||||||
Additions, transfers from loans and fixed assets | 3,170 | 9,168 | 9,002 | ||||||||||
Proceeds from sales of other real estate owned | (10,545 | ) | (18,729 | ) | (13,426 | ) | |||||||
Valuation allowance reversal upon sale | (2,794 | ) | (4,300 | ) | (2,962 | ) | |||||||
Gain (loss) on sale of other real estate owned | 1,004 | (59 | ) | 11 | |||||||||
60,578 | 69,743 | 76,288 | |||||||||||
Less: valuation allowance | (17,782 | ) | (18,161 | ) | (18,510 | ) | |||||||
Ending balance | $ | 42,796 | $ | 51,582 | $ | 57,778 | |||||||
Activity in valuation allowance | Activity in the valuation allowance was as follows (dollars in thousands): | ||||||||||||
Nine Months | Nine Months | ||||||||||||
Ended | Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2013 | 2012 | ||||||||||||
Beginning balance | $ | 18,161 | $ | 17,225 | |||||||||
Additions charged to expense | 2,415 | 4,247 | |||||||||||
Reversals upon sale | (2,794 | ) | (2,962 | ) | |||||||||
Ending balance | $ | 17,782 | $ | 18,510 | |||||||||
FAIR_VALUE_Tables
FAIR VALUE (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
FAIR VALUE [Abstract] | ||||||||||||||||||
Assets measured at fair value on a recurring basis | Assets measured at fair value on a recurring basis are summarized below (in thousands): | |||||||||||||||||
Fair | Quoted Prices | Significant Other | Significant | |||||||||||||||
in Active | Observable | Unobservable | ||||||||||||||||
Markets for | Inputs | |||||||||||||||||
Identical | ||||||||||||||||||
Assets | ||||||||||||||||||
Value | (Level 1) | Inputs (Level 2) | (Level 3) | |||||||||||||||
30-Sep-13 | ||||||||||||||||||
U.S. Treasury and federal agency securities | $ | 52,488 | $ | --- | $ | 52,488 | $ | --- | ||||||||||
U.S. Agency MBS and CMOs | 18,602 | --- | 18,602 | --- | ||||||||||||||
Tax-exempt state and municipal bonds | 24,565 | --- | 24,565 | --- | ||||||||||||||
Taxable state and municipal bonds | 27,861 | --- | 27,861 | --- | ||||||||||||||
Corporate bonds and other debt securities | 10,435 | --- | 10,435 | --- | ||||||||||||||
Other equity securities | 1,488 | --- | 1,488 | --- | ||||||||||||||
Loans held for sale | 2,983 | --- | 2,983 | --- | ||||||||||||||
31-Dec-12 | ||||||||||||||||||
U.S. Treasury and federal agency securities | $ | 42,564 | $ | --- | $ | 42,564 | $ | --- | ||||||||||
U.S. Agency MBS and CMOs | 23,761 | --- | 23,761 | --- | ||||||||||||||
Tax-exempt state and municipal bonds | 20,793 | --- | 20,793 | --- | ||||||||||||||
Taxable state and municipal bonds | 27,296 | --- | 27,296 | --- | ||||||||||||||
Corporate bonds | 7,526 | --- | 7,526 | --- | ||||||||||||||
Other equity securities | 1,557 | --- | 1,557 | --- | ||||||||||||||
Loans held for sale | 8,130 | --- | 8,130 | --- | ||||||||||||||
Assets measured at fair value on a non-recurring basis | Assets measured at fair value on a non-recurring basis are summarized below (in thousands): | |||||||||||||||||
Fair | Quoted Prices | Significant Other | Significant | |||||||||||||||
in Active | Observable | Unobservable | ||||||||||||||||
Markets for | Inputs | |||||||||||||||||
Identical | ||||||||||||||||||
Assets | ||||||||||||||||||
Value | (Level 1) | Inputs (Level 2) | (Level 3) | |||||||||||||||
30-Sep-13 | ||||||||||||||||||
Impaired loans | $ | 24,087 | $ | --- | $ | --- | $ | 24,087 | ||||||||||
Other real estate owned | 34,564 | --- | --- | 34,564 | ||||||||||||||
31-Dec-12 | ||||||||||||||||||
Impaired loans | $ | 34,668 | $ | --- | $ | --- | $ | 34,668 | ||||||||||
Other real estate owned | 41,594 | --- | --- | 41,594 | ||||||||||||||
Carrying amounts and estimated fair values of financial instruments, not previously presented | The carrying amounts and estimated fair values of financial instruments, not previously presented, were as follows at September 30, 2013 and December 31, 2012 (dollars in thousands). | |||||||||||||||||
Level in | 30-Sep-13 | 31-Dec-12 | ||||||||||||||||
Fair Value | Carrying | Fair | Carrying | Fair | ||||||||||||||
Hierarchy | Amount | Value | Amount | Value | ||||||||||||||
Financial assets | ||||||||||||||||||
Cash and due from banks | Level 1 | $ | 35,592 | $ | 35,592 | $ | 33,556 | $ | 33,556 | |||||||||
Cash equivalents | Level 2 | 178,263 | 178,263 | 192,802 | 192,802 | |||||||||||||
Interest-bearing time deposits in other financial institutions | Level 2 | 25,000 | 25,000 | --- | --- | |||||||||||||
Securities held to maturity | Level 3 | 18,995 | 19,444 | 4,300 | 4,301 | |||||||||||||
FHLB stock | 11,236 | NA | 11,236 | NA | ||||||||||||||
Loans, net | Level 2 | 983,434 | 976,296 | 993,941 | 999,619 | |||||||||||||
Bank owned life insurance | Level 3 | 27,343 | 27,343 | 26,804 | 26,804 | |||||||||||||
Accrued interest receivable | Level 2 | 3,250 | 3,250 | 3,411 | 3,411 | |||||||||||||
Financial liabilities | ||||||||||||||||||
Deposits | Level 2 | (1,288,041 | ) | (1,289,388 | ) | (1,286,261 | ) | (1,285,819 | ) | |||||||||
Other borrowed funds | Level 2 | (89,991 | ) | (90,513 | ) | (91,822 | ) | (95,213 | ) | |||||||||
Long-term debt | Level 2 | (41,238 | ) | (35,099 | ) | (41,238 | ) | (30,463 | ) | |||||||||
Subordinated debt | Level 2 | --- | --- | (1,650 | ) | (1,650 | ) | |||||||||||
Accrued interest payable | Level 2 | (7,903 | ) | (7,903 | ) | (4,858 | ) | (4,858 | ) | |||||||||
Off-balance sheet credit-related items | ||||||||||||||||||
Loan commitments | --- | --- | --- | --- |
DEPOSITS_Tables
DEPOSITS (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
DEPOSITS [Abstract] | |||||||||
Deposits at year-end | Deposits are summarized as follows (in thousands): | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Noninterest-bearing demand | $ | 352,879 | $ | 339,520 | |||||
Interest bearing demand | 302,822 | 278,765 | |||||||
Savings and money market accounts | 475,895 | 476,803 | |||||||
Certificates of deposit | 156,445 | 191,173 | |||||||
$ | 1,288,041 | $ | 1,286,261 |
OTHER_BORROWED_FUNDS_Tables
OTHER BORROWED FUNDS (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
OTHER BORROWED FUNDS [Abstract] | ||||||||||
Advances from Federal Home Loan Bank | At period-end, advances from the Federal Home Loan Bank were as follows (dollars in thousands): | |||||||||
Weighted | ||||||||||
Advance | Average | |||||||||
Principal Terms | Amount | Range of Maturities | Interest Rate | |||||||
30-Sep-13 | ||||||||||
Single maturity fixed rate advances | $ | 80,000 | August 2016 to February 2019 | 1.69 | % | |||||
Amortizable mortgage advances | 9,991 | March 2018 to July 2018 | 3.78 | % | ||||||
$ | 89,991 | |||||||||
Weighted | ||||||||||
Advance | Average | |||||||||
Principal Terms | Amount | Range of Maturities | Interest Rate | |||||||
31-Dec-12 | ||||||||||
Single maturity fixed rate advances | $ | 80,000 | May 2015 to September 2016 | 1.7 | % | |||||
Amortizable mortgage advances | 11,822 | March 2018 to July 2018 | 3.78 | % | ||||||
$ | 91,822 | |||||||||
Scheduled repayments of FHLB advances | Scheduled repayments of FHLB advances as of September 30, 2013 were as follows (in thousands): | |||||||||
2013 | $ | --- | ||||||||
2014 | 1,884 | |||||||||
2015 | 1,938 | |||||||||
2016 | 21,996 | |||||||||
2017 | 2,055 | |||||||||
Thereafter | 62,118 | |||||||||
$ | 89,991 |
EARNINGS_PER_COMMON_SHARE_Tabl
EARNINGS PER COMMON SHARE (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
EARNINGS PER COMMON SHARE [Abstract] | |||||||||||||||||
Reconciliation of numerators and denominators of basic and diluted earnings per common share | A reconciliation of the numerators and denominators of basic and diluted earnings per common share for the three and nine month periods ended September 30, 2013 and 2012 are as follows (dollars in thousands, except per share data): | ||||||||||||||||
Three Months | Three Months | Nine Months | Nine Months | ||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net income | $ | 2,238 | $ | 6,585 | $ | 7,315 | $ | 14,256 | |||||||||
Dividends declared on preferred shares | --- | --- | --- | --- | |||||||||||||
Net income available to common shares | $ | 2,238 | $ | 6,585 | $ | 7,315 | $ | 14,256 | |||||||||
Weighted average shares outstanding, including participating stock awards - Basic | 27,261,325 | 27,082,825 | 27,244,741 | 27,082,823 | |||||||||||||
Dilutive potential common shares: | |||||||||||||||||
Stock options | --- | --- | --- | --- | |||||||||||||
Conversion of preferred stock | --- | --- | --- | --- | |||||||||||||
Stock warrants | --- | --- | --- | --- | |||||||||||||
Weighted average shares outstanding - Diluted | 27,261,325 | 27,082,825 | 27,244,741 | 27,082,823 | |||||||||||||
Basic earnings per common share | $ | 0.08 | $ | 0.24 | $ | 0.27 | $ | 0.53 | |||||||||
Diluted earnings per common share | $ | 0.08 | $ | 0.24 | $ | 0.27 | $ | 0.53 |
FEDERAL_INCOME_TAXES_Tables
FEDERAL INCOME TAXES (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
FEDERAL INCOME TAXES [Abstract] | |||||||||||||||||
Income tax expense (benefit) | Income tax expense (benefit) was as follows (dollars in thousands): | ||||||||||||||||
Three Months | Three Months | Nine Months | Nine Months | ||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Current | $ | 40 | $ | 275 | $ | 95 | $ | 275 | |||||||||
Deferred (benefit) expense | 935 | --- | 3,218 | --- | |||||||||||||
$ | 975 | $ | 275 | $ | 3,313 | $ | 275 | ||||||||||
Difference between financial statement tax expense (benefit) and amount computed by applying statutory federal tax rate to pretax income | The difference between the financial statement tax expense and amount computed by applying the statutory federal tax rate to pretax income was reconciled as follows (dollars in thousands): | ||||||||||||||||
Three Months | Three Months | Nine Months | Nine Months | ||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Statutory rate | 35 | % | 35 | % | 35 | % | 35 | % | |||||||||
Statutory rate applied to income before taxes | 1,124 | 2,401 | $ | 3,720 | $ | 5,086 | |||||||||||
Add (deduct) | |||||||||||||||||
Change in valuation allowance | --- | (1,761 | ) | --- | (4,056 | ) | |||||||||||
Tax-exempt interest income | (70 | ) | (32 | ) | (166 | ) | (64 | ) | |||||||||
Bank-owned life insurance | (63 | ) | (73 | ) | (188 | ) | (230 | ) | |||||||||
Other, net | (16 | ) | (260 | ) | (53 | ) | (461 | ) | |||||||||
$ | 975 | $ | 275 | $ | 3,313 | $ | 275 | ||||||||||
Deferred tax assets and liabilities | The net deferred tax asset recorded included the following amounts of deferred tax assets and liabilities (dollars in thousands): | ||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Deferred tax assets | |||||||||||||||||
Allowance for loan losses | $ | 7,445 | $ | 8,309 | |||||||||||||
Nonaccrual loan interest | 828 | 1,023 | |||||||||||||||
Valuation allowance on other real estate owned | 6,224 | 6,356 | |||||||||||||||
Net operating loss carryforward | 2,088 | 4,188 | |||||||||||||||
Unrealized loss on securities available for sale | 780 | --- | |||||||||||||||
Other | 1,776 | 1,794 | |||||||||||||||
Gross deferred tax assets | 19,141 | 21,670 | |||||||||||||||
Valuation allowance | --- | --- | |||||||||||||||
Total net deferred tax assets | 19,141 | 21,670 | |||||||||||||||
Deferred tax liabilities | |||||||||||||||||
Depreciation | (1,592 | ) | (1,693 | ) | |||||||||||||
Unrealized gain on securities available for sale | --- | (517 | ) | ||||||||||||||
Prepaid expenses | (308 | ) | (308 | ) | |||||||||||||
Other | (382 | ) | (372 | ) | |||||||||||||
Gross deferred tax liabilities | (2,282 | ) | (2,890 | ) | |||||||||||||
Net deferred tax asset | $ | 16,859 | $ | 18,780 |
COMMITMENTS_AND_OFF_BALANCESHE1
COMMITMENTS AND OFF BALANCE-SHEET RISK (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
COMMITMENTS AND OFF BALANCE-SHEET RISK [Abstract] | |||||||||
Summary of contractual amounts of financial instruments with off-balance-sheet risk | A summary of the contractual amounts of financial instruments with off‑balance‑sheet risk was as follows at period-end (dollars in thousands): | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Commitments to make loans | $ | 116,893 | $ | 75,319 | |||||
Letters of credit | 8,883 | 8,200 | |||||||
Unused lines of credit | 284,181 | 276,620 |
SHAREHOLDERS_EQUITY_Tables
SHAREHOLDERS' EQUITY (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
SHAREHOLDERS' EQUITY [Abstract] | |||||||||||||||||||||||||||||||||
Actual capital levels and minimum required levels | At September 30, 2013 and December 31, 2012, actual capital levels and minimum required levels were (in thousands): | ||||||||||||||||||||||||||||||||
To Be Well | |||||||||||||||||||||||||||||||||
Minimum Required | Capitalized Under | ||||||||||||||||||||||||||||||||
For Capital | Prompt Corrective | Minimum Required | |||||||||||||||||||||||||||||||
Actual | Adequacy Purposes | Action Regulations | Under MOU (1) | ||||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||
Total capital (to risk weighted assets) | |||||||||||||||||||||||||||||||||
Consolidated | $ | 177,037 | 16 | % | $ | 88,285 | 8 | % | N/ | A | N/ | A | N/ | A | N/ | A | |||||||||||||||||
Bank | 175,541 | 15.9 | 88,336 | 8 | $ | 110,421 | 10 | % | N/ | A | N/ | A | |||||||||||||||||||||
Tier 1 capital (to risk weighted assets) | |||||||||||||||||||||||||||||||||
Consolidated | 163,150 | 14.8 | 44,143 | 4 | N/ | A | N/ | A | N/ | A | N/ | A | |||||||||||||||||||||
Bank | 161,646 | 14.6 | 44,168 | 4 | 66,252 | 6 | N/ | A | N/ | A | |||||||||||||||||||||||
Tier 1 capital (to average assets) | |||||||||||||||||||||||||||||||||
Consolidated | 163,150 | 10.9 | 59,922 | 4 | N/ | A | N/ | A | N/ | A | N/ | A | |||||||||||||||||||||
Bank | 161,646 | 10.8 | 59,887 | 4 | 74,859 | 5 | N/ | A | N/ | A | |||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
Total capital (to risk weighted assets) | |||||||||||||||||||||||||||||||||
Consolidated | $ | 168,929 | 15 | % | $ | 90,244 | 8 | % | N/ | A | N/ | A | N/ | A | N/ | A | |||||||||||||||||
Bank | 164,214 | 14.5 | 90,299 | 8 | $ | 112,874 | 10 | % | N/ | A | N/ | A | |||||||||||||||||||||
Tier 1 capital (to risk weighted assets) | |||||||||||||||||||||||||||||||||
Consolidated | 150,857 | 13.4 | 45,122 | 4 | N/ | A | N/ | A | N/ | A | N/ | A | |||||||||||||||||||||
Bank | 149,960 | 13.3 | 45,150 | 4 | 67,724 | 6 | N/ | A | N/ | A | |||||||||||||||||||||||
Tier 1 capital (to average assets) | |||||||||||||||||||||||||||||||||
Consolidated | 150,857 | 10.4 | 58,312 | 4 | N/ | A | N/ | A | N/ | A | N/ | A | |||||||||||||||||||||
Bank | 149,960 | 10.3 | 58,371 | 4 | 72,964 | 5 | $ | 116,742 | 8 | % | |||||||||||||||||||||||
-1 | The MOU is applicable only to the December 31, 2012 information presented in these columns. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Grade | |
Branch | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Number of full service branch offices | 26 |
Allowance for Loan Losses [Abstract] | |
Period for annualized historical loss experience used for commercial loans | 18 months |
Period of historical loss experience applied to residential mortgage and consumer loan portfolios | 12 months |
Threshold for commercial and commercial real estate loans evaluated for impairment | $500,000 |
Minimum internal risk grading of commercial and commercial real estate loans evaluated for impairment | 6 |
Income Taxes [Abstract] | |
Percentage of more likely than not tax position that would be sustained in a tax examination (in hundredths) | 50.00% |
SECURITIES_Details
SECURITIES (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Available for Sale [Abstract] | |||||
Amortized Cost | $137,669,000 | $137,669,000 | $122,020,000 | ||
Gross Unrealized Gains | 580,000 | 580,000 | 1,609,000 | ||
Gross Unrealized Losses | -2,810,000 | -2,810,000 | -132,000 | ||
Fair Value | 135,439,000 | 135,439,000 | 123,497,000 | ||
Gain on sale of securities | 0 | 14,000 | 80,000 | 73,000 | |
Held to Maturity [Abstract] | |||||
Fair Value | 0 | 0 | 4,301,000 | ||
Proceeds from sale of available-for-sale securities | 540,000 | 3,778,000 | 4,595,000 | ||
Reclassification adjustment for securities gain recognized in earnings, net of tax | 0 | 9,000 | 52,000 | 47,000 | |
Held-to-Maturity Securities, Amortized Cost [Abstract] | |||||
Due in one year or less | 12,630,000 | 12,630,000 | |||
Due from one to five years | 430,000 | 430,000 | |||
Due from five to ten years | 5,655,000 | 5,655,000 | |||
Due after ten years | 280,000 | 280,000 | |||
Held-to-Maturity Securities, Total Amortized Cost | 18,995,000 | 18,995,000 | |||
Held-to-Maturity Securities, Fair Value [Abstract] | |||||
Due in one year or less | 13,026,000 | 13,026,000 | |||
Due from one to five years | 430,000 | 430,000 | |||
Due from five to ten years | 5,708,000 | 5,708,000 | |||
Due after ten years | 280,000 | 280,000 | |||
Held-to-maturity securities, Total Fair Value | 19,444,000 | 19,444,000 | |||
Available-for-Sale Securities, Amortized Cost [Abstract] | |||||
Due in one year or less | 4,195,000 | 4,195,000 | |||
Due from one to five years | 56,572,000 | 56,572,000 | |||
Due from five to ten years | 44,609,000 | 44,609,000 | |||
Due after ten years | 30,793,000 | 30,793,000 | |||
Available-for-Sale Securities, Total Amortized Cost | 136,169,000 | 136,169,000 | |||
Available-for-Sale Securities, Fair Value [Abstract] | |||||
Due in one year or less | 4,227,000 | 4,227,000 | |||
Due from one to five years | 56,585,000 | 56,585,000 | |||
Due from five to ten years | 43,265,000 | 43,265,000 | |||
Due after ten years | 29,874,000 | 29,874,000 | |||
Available-for-Sale Securities, Total Fair Value | 133,951,000 | 133,951,000 | |||
Securities in continuous unrealized losses position, Fair value [Abstract] | |||||
Less than 12 Months, Fair Value | 95,386,000 | 95,386,000 | 27,569,000 | ||
12 Months or More, Fair Value | 756,000 | 756,000 | 0 | ||
Total, Fair Value | 96,142,000 | 96,142,000 | 27,569,000 | ||
Securities in continuous unrealized loss position, Aggregate losses [Abstract] | |||||
Less than 12 Months, Unrealized Losses | -2,783,000 | -2,783,000 | -132,000 | ||
12 Months or More, Unrealized Losses | -27,000 | -27,000 | 0 | ||
Total, Unrealized Loss | -2,810,000 | -2,810,000 | -132,000 | ||
Securities pledged as security for public deposits, letters of credit and for other purposes required or permitted by law | 0 | 0 | 7,400,000 | ||
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||||
Available for Sale [Abstract] | |||||
Gain on sale of securities | 14,000 | 80,000 | 73,000 | ||
U.S. Treasury and Federal Agency Securities [Member] | |||||
Available for Sale [Abstract] | |||||
Amortized Cost | 53,606,000 | 53,606,000 | 42,245,000 | ||
Gross Unrealized Gains | 92,000 | 92,000 | 340,000 | ||
Gross Unrealized Losses | -1,210,000 | -1,210,000 | -21,000 | ||
Fair Value | 52,488,000 | 52,488,000 | 42,564,000 | ||
Securities in continuous unrealized losses position, Fair value [Abstract] | |||||
Less than 12 Months, Fair Value | 43,255,000 | 43,255,000 | 10,977,000 | ||
12 Months or More, Fair Value | 0 | 0 | 0 | ||
Total, Fair Value | 43,255,000 | 43,255,000 | 10,977,000 | ||
Securities in continuous unrealized loss position, Aggregate losses [Abstract] | |||||
Less than 12 Months, Unrealized Losses | -1,210,000 | -1,210,000 | -21,000 | ||
12 Months or More, Unrealized Losses | 0 | 0 | 0 | ||
Total, Unrealized Loss | -1,210,000 | -1,210,000 | -21,000 | ||
U.S. Agency MBS and CMOs [Member] | |||||
Available for Sale [Abstract] | |||||
Amortized Cost | 18,848,000 | 18,848,000 | 23,495,000 | ||
Gross Unrealized Gains | 21,000 | 21,000 | 272,000 | ||
Gross Unrealized Losses | -267,000 | -267,000 | -6,000 | ||
Fair Value | 18,602,000 | 18,602,000 | 23,761,000 | ||
Securities in continuous unrealized losses position, Fair value [Abstract] | |||||
Less than 12 Months, Fair Value | 15,930,000 | 15,930,000 | 3,373,000 | ||
12 Months or More, Fair Value | 0 | 0 | 0 | ||
Total, Fair Value | 15,930,000 | 15,930,000 | 3,373,000 | ||
Securities in continuous unrealized loss position, Aggregate losses [Abstract] | |||||
Less than 12 Months, Unrealized Losses | -267,000 | -267,000 | -6,000 | ||
12 Months or More, Unrealized Losses | 0 | 0 | 0 | ||
Total, Unrealized Loss | -267,000 | -267,000 | -6,000 | ||
Tax-Exempt State and Municipal Bonds [Member] | |||||
Available for Sale [Abstract] | |||||
Amortized Cost | 25,455,000 | 25,455,000 | 20,598,000 | ||
Gross Unrealized Gains | 56,000 | 56,000 | 244,000 | ||
Gross Unrealized Losses | -946,000 | -946,000 | -49,000 | ||
Fair Value | 24,565,000 | 24,565,000 | 20,793,000 | ||
Securities in continuous unrealized losses position, Fair value [Abstract] | |||||
Less than 12 Months, Fair Value | 20,051,000 | 20,051,000 | 4,613,000 | ||
12 Months or More, Fair Value | 0 | 0 | 0 | ||
Total, Fair Value | 20,051,000 | 20,051,000 | 4,613,000 | ||
Securities in continuous unrealized loss position, Aggregate losses [Abstract] | |||||
Less than 12 Months, Unrealized Losses | -946,000 | -946,000 | -49,000 | ||
12 Months or More, Unrealized Losses | 0 | 0 | 0 | ||
Total, Unrealized Loss | -946,000 | -946,000 | -49,000 | ||
Taxable State and Municipal Bonds [Member] | |||||
Available for Sale [Abstract] | |||||
Amortized Cost | 27,821,000 | 27,821,000 | 26,726,000 | ||
Gross Unrealized Gains | 352,000 | 352,000 | 619,000 | ||
Gross Unrealized Losses | -312,000 | -312,000 | -49,000 | ||
Fair Value | 27,861,000 | 27,861,000 | 27,296,000 | ||
Securities in continuous unrealized losses position, Fair value [Abstract] | |||||
Less than 12 Months, Fair Value | 10,505,000 | 10,505,000 | 4,661,000 | ||
12 Months or More, Fair Value | 756,000 | 756,000 | 0 | ||
Total, Fair Value | 11,261,000 | 11,261,000 | 4,661,000 | ||
Securities in continuous unrealized loss position, Aggregate losses [Abstract] | |||||
Less than 12 Months, Unrealized Losses | -285,000 | -285,000 | -49,000 | ||
12 Months or More, Unrealized Losses | -27,000 | -27,000 | 0 | ||
Total, Unrealized Loss | -312,000 | -312,000 | -49,000 | ||
Corporate Bonds and Other Debt Securities [Member] | |||||
Available for Sale [Abstract] | |||||
Amortized Cost | 10,439,000 | 10,439,000 | |||
Gross Unrealized Gains | 59,000 | 59,000 | |||
Gross Unrealized Losses | -63,000 | -63,000 | |||
Fair Value | 10,435,000 | 10,435,000 | |||
Securities in continuous unrealized losses position, Fair value [Abstract] | |||||
Less than 12 Months, Fair Value | 4,157,000 | 4,157,000 | |||
12 Months or More, Fair Value | 0 | 0 | |||
Total, Fair Value | 4,157,000 | 4,157,000 | |||
Securities in continuous unrealized loss position, Aggregate losses [Abstract] | |||||
Less than 12 Months, Unrealized Losses | -63,000 | -63,000 | |||
12 Months or More, Unrealized Losses | 0 | 0 | |||
Total, Unrealized Loss | -63,000 | -63,000 | |||
Corporate Bonds [Member] | |||||
Available for Sale [Abstract] | |||||
Amortized Cost | 7,456,000 | ||||
Gross Unrealized Gains | 77,000 | ||||
Gross Unrealized Losses | -7,000 | ||||
Fair Value | 7,526,000 | ||||
Securities in continuous unrealized losses position, Fair value [Abstract] | |||||
Less than 12 Months, Fair Value | 3,945,000 | ||||
12 Months or More, Fair Value | 0 | ||||
Total, Fair Value | 3,945,000 | ||||
Securities in continuous unrealized loss position, Aggregate losses [Abstract] | |||||
Less than 12 Months, Unrealized Losses | -7,000 | ||||
12 Months or More, Unrealized Losses | 0 | ||||
Total, Unrealized Loss | -7,000 | ||||
Other Equity Securities [Member] | |||||
Available for Sale [Abstract] | |||||
Amortized Cost | 1,500,000 | 1,500,000 | 1,500,000 | ||
Gross Unrealized Gains | 0 | 0 | 57,000 | ||
Gross Unrealized Losses | -12,000 | -12,000 | 0 | ||
Fair Value | 1,488,000 | 1,488,000 | 1,557,000 | ||
Securities in continuous unrealized losses position, Fair value [Abstract] | |||||
Less than 12 Months, Fair Value | 1,488,000 | 1,488,000 | 0 | ||
12 Months or More, Fair Value | 0 | 0 | 0 | ||
Total, Fair Value | 1,488,000 | 1,488,000 | 0 | ||
Securities in continuous unrealized loss position, Aggregate losses [Abstract] | |||||
Less than 12 Months, Unrealized Losses | -12,000 | -12,000 | 0 | ||
12 Months or More, Unrealized Losses | 0 | 0 | 0 | ||
Total, Unrealized Loss | -12,000 | -12,000 | 0 | ||
State and Municipal Bonds [Member] | |||||
Held to Maturity [Abstract] | |||||
Amortized Cost | 18,995,000 | 18,995,000 | 4,300,000 | ||
Gross Unrealized Gains | 449,000 | 449,000 | 1,000 | ||
Gross Unrealized Losses | 0 | 0 | 0 | ||
Fair Value | $19,444,000 | $19,444,000 | $4,301,000 |
LOANS_Details
LOANS (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Portfolio loans [Abstract] | ||
Total loans | $1,028,793 | $1,052,348 |
Allowance for loan losses | -21,272 | -23,739 |
Net loans | 1,007,521 | 1,028,609 |
Commercial and Industrial [Member] | ||
Portfolio loans [Abstract] | ||
Total loans | 253,216 | 259,700 |
Commercial Real Estate [Member] | ||
Portfolio loans [Abstract] | ||
Total loans | 481,932 | 502,959 |
Commercial Real Estate [Member] | Residential Developed [Member] | ||
Portfolio loans [Abstract] | ||
Total loans | 20,805 | 26,090 |
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | ||
Portfolio loans [Abstract] | ||
Total loans | 7,326 | 5,547 |
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | ||
Portfolio loans [Abstract] | ||
Total loans | 48,977 | 56,525 |
Commercial Real Estate [Member] | Commercial Development [Member] | ||
Portfolio loans [Abstract] | ||
Total loans | 4,319 | 1,799 |
Commercial Real Estate [Member] | Residential Improved [Member] | ||
Portfolio loans [Abstract] | ||
Total loans | 77,414 | 75,813 |
Commercial Real Estate [Member] | Commercial Improved [Member] | ||
Portfolio loans [Abstract] | ||
Total loans | 243,688 | 255,738 |
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | ||
Portfolio loans [Abstract] | ||
Total loans | 79,403 | 81,447 |
Consumer [Member] | ||
Portfolio loans [Abstract] | ||
Total loans | 293,645 | 289,689 |
Consumer [Member] | Residential Mortgage [Member] | ||
Portfolio loans [Abstract] | ||
Total loans | 185,025 | 182,625 |
Consumer [Member] | Unsecured [Member] | ||
Portfolio loans [Abstract] | ||
Total loans | 1,464 | 1,683 |
Consumer [Member] | Home Equity [Member] | ||
Portfolio loans [Abstract] | ||
Total loans | 96,790 | 92,764 |
Consumer [Member] | Other Secured [Member] | ||
Portfolio loans [Abstract] | ||
Total loans | $10,366 | $12,617 |
LOANS_Allowance_for_Loans_Loss
LOANS, Allowance for Loans Losses by Portfolio (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 |
Allowance for loan losses by portfolio [Roll Forward] | ||||
Beginning balance | $22,248 | $27,180 | $23,739 | $31,641 |
Charge-offs | -354 | -615 | -1,695 | -5,011 |
Recoveries | 878 | 956 | 2,478 | 6,241 |
Provision for loan losses | -1,500 | -1,250 | -3,250 | -6,600 |
Ending balance | 21,272 | 26,271 | 21,272 | 26,271 |
Commercial and Industrial [Member] | ||||
Allowance for loan losses by portfolio [Roll Forward] | ||||
Beginning balance | 5,602 | 6,638 | 6,459 | 6,313 |
Charge-offs | -23 | -239 | -272 | -1,228 |
Recoveries | 585 | 110 | 1,011 | 390 |
Provision for loan losses | -446 | -575 | -1,480 | 459 |
Ending balance | 5,718 | 5,934 | 5,718 | 5,934 |
Commercial Real Estate [Member] | ||||
Allowance for loan losses by portfolio [Roll Forward] | ||||
Beginning balance | 12,324 | 15,239 | 13,457 | 20,475 |
Charge-offs | -202 | -173 | -661 | -2,679 |
Recoveries | 253 | 777 | 1,248 | 5,662 |
Provision for loan losses | -1,253 | -552 | -2,922 | -8,167 |
Ending balance | 11,122 | 15,291 | 11,122 | 15,291 |
Consumer [Member] | ||||
Allowance for loan losses by portfolio [Roll Forward] | ||||
Beginning balance | 4,255 | 5,254 | 3,787 | 4,821 |
Charge-offs | -129 | -203 | -762 | -1,104 |
Recoveries | 40 | 69 | 219 | 189 |
Provision for loan losses | 230 | -131 | 1,152 | 1,083 |
Ending balance | 4,396 | 4,989 | 4,396 | 4,989 |
Unallocated [Member] | ||||
Allowance for loan losses by portfolio [Roll Forward] | ||||
Beginning balance | 67 | 49 | 36 | 32 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision for loan losses | -31 | 8 | 0 | 25 |
Ending balance | $36 | $57 | $36 | $57 |
LOANS_Allowance_for_Loans_Loss1
LOANS, Allowance for Loans Losses (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 | ||||||
Ending allowance attributable to loans [Abstract] | ||||||
Individually reviewed for impairment | $4,662 | $6,054 | ||||
Collectively evaluated for impairment | 16,610 | 17,685 | ||||
Total ending allowance balance | 21,272 | 22,248 | 23,739 | 26,271 | 27,180 | 31,641 |
Loans [Abstract] | ||||||
Individually reviewed for impairment | 73,143 | 83,307 | ||||
Collectively evaluated for impairment | 955,650 | 969,041 | ||||
Total ending loans balance | 1,028,793 | 1,052,348 | ||||
Commercial and Industrial [Member] | ||||||
Ending allowance attributable to loans [Abstract] | ||||||
Individually reviewed for impairment | 2,193 | 2,920 | ||||
Collectively evaluated for impairment | 3,525 | 3,539 | ||||
Total ending allowance balance | 5,718 | 5,602 | 6,459 | 5,934 | 6,638 | 6,313 |
Loans [Abstract] | ||||||
Individually reviewed for impairment | 12,218 | 14,390 | ||||
Collectively evaluated for impairment | 240,998 | 245,310 | ||||
Total ending loans balance | 253,216 | 259,700 | ||||
Commercial Real Estate [Member] | ||||||
Ending allowance attributable to loans [Abstract] | ||||||
Individually reviewed for impairment | 1,555 | 2,418 | ||||
Collectively evaluated for impairment | 9,567 | 11,039 | ||||
Total ending allowance balance | 11,122 | 12,324 | 13,457 | 15,291 | 15,239 | 20,475 |
Loans [Abstract] | ||||||
Individually reviewed for impairment | 45,895 | 54,831 | ||||
Collectively evaluated for impairment | 436,037 | 448,128 | ||||
Total ending loans balance | 481,932 | 502,959 | ||||
Consumer [Member] | ||||||
Ending allowance attributable to loans [Abstract] | ||||||
Individually reviewed for impairment | 914 | 716 | ||||
Collectively evaluated for impairment | 3,482 | 3,071 | ||||
Total ending allowance balance | 4,396 | 4,255 | 3,787 | 4,989 | 5,254 | 4,821 |
Loans [Abstract] | ||||||
Individually reviewed for impairment | 15,030 | 14,086 | ||||
Collectively evaluated for impairment | 278,615 | 275,603 | ||||
Total ending loans balance | 293,645 | 289,689 | ||||
Unallocated [Member] | ||||||
Ending allowance attributable to loans [Abstract] | ||||||
Individually reviewed for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 36 | 36 | ||||
Total ending allowance balance | 36 | 67 | 36 | 57 | 49 | 32 |
Loans [Abstract] | ||||||
Individually reviewed for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 0 | 0 | ||||
Total ending loans balance | $0 | $0 |
LOANS_Impaired_Loans_Details
LOANS, Impaired Loans (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 | Dec. 31, 2012 |
With no related allowance recorded [Abstract] | |||||
With no allowance, Unpaid Principal Balance | $15,217 | $15,217 | $31,046 | ||
With no allowance, Recorded Investment | 14,079 | 14,079 | 27,038 | ||
With related allowance recorded [Abstract] | |||||
With related allowance, Unpaid Principal Balance | 59,064 | 59,064 | 56,269 | ||
With related allowance, Recorded Investment | 59,064 | 59,064 | 56,269 | ||
Allowance Allocated | 4,662 | 4,662 | 6,054 | ||
Total impaired, Unpaid Principal Balance | 74,281 | 74,281 | 87,315 | ||
Total impaired, Recorded Investment, Total | 73,143 | 73,143 | 83,307 | ||
Commercial and Industrial [Member] | |||||
With no related allowance recorded [Abstract] | |||||
With no allowance, Unpaid Principal Balance | 3,250 | 3,250 | 2,515 | ||
With no allowance, Recorded Investment | 3,247 | 3,247 | 2,512 | ||
With related allowance recorded [Abstract] | |||||
With related allowance, Unpaid Principal Balance | 8,971 | 8,971 | 11,878 | ||
With related allowance, Recorded Investment | 8,971 | 8,971 | 11,878 | ||
Allowance Allocated | 2,193 | 2,193 | 2,920 | ||
Impaired loans [Abstract] | |||||
Average of impaired loans | 12,325 | 12,415 | 14,794 | 15,388 | |
Interest income recognized during impairment | 186 | 263 | 915 | 1,090 | |
Cash-basis interest income recognized | 194 | 250 | 914 | 1,065 | |
Commercial Real Estate [Member] | |||||
With no related allowance recorded [Abstract] | |||||
With no allowance, Unpaid Principal Balance | 11,967 | 11,967 | 23,917 | ||
With no allowance, Recorded Investment | 10,832 | 10,832 | 21,464 | ||
With related allowance recorded [Abstract] | |||||
With related allowance, Unpaid Principal Balance | 35,063 | 35,063 | 33,367 | ||
With related allowance, Recorded Investment | 35,063 | 35,063 | 33,367 | ||
Allowance Allocated | 1,555 | 1,555 | 2,418 | ||
Impaired loans [Abstract] | |||||
Interest income recognized during impairment | 478 | 637 | 1,656 | 1,848 | |
Cash-basis interest income recognized | 465 | 637 | 1,648 | 1,852 | |
Commercial Real Estate [Member] | Residential Developed [Member] | |||||
With no related allowance recorded [Abstract] | |||||
With no allowance, Unpaid Principal Balance | 5,344 | 5,344 | 7,136 | ||
With no allowance, Recorded Investment | 4,411 | 4,411 | 6,283 | ||
With related allowance recorded [Abstract] | |||||
With related allowance, Unpaid Principal Balance | 1,449 | 1,449 | 1,524 | ||
With related allowance, Recorded Investment | 1,449 | 1,449 | 1,524 | ||
Allowance Allocated | 158 | 158 | 337 | ||
Impaired loans [Abstract] | |||||
Average of impaired loans | 5,898 | 7,989 | 6,526 | 8,293 | |
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | |||||
With no related allowance recorded [Abstract] | |||||
With no allowance, Unpaid Principal Balance | 0 | 0 | 0 | ||
With no allowance, Recorded Investment | 0 | 0 | 0 | ||
With related allowance recorded [Abstract] | |||||
With related allowance, Unpaid Principal Balance | 0 | 0 | 0 | ||
With related allowance, Recorded Investment | 0 | 0 | 0 | ||
Allowance Allocated | 0 | 0 | 0 | ||
Impaired loans [Abstract] | |||||
Average of impaired loans | 0 | 0 | 0 | 0 | |
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | |||||
With no related allowance recorded [Abstract] | |||||
With no allowance, Unpaid Principal Balance | 413 | 413 | 2,321 | ||
With no allowance, Recorded Investment | 413 | 413 | 2,136 | ||
With related allowance recorded [Abstract] | |||||
With related allowance, Unpaid Principal Balance | 1,943 | 1,943 | 1,688 | ||
With related allowance, Recorded Investment | 1,943 | 1,943 | 1,688 | ||
Allowance Allocated | 85 | 85 | 34 | ||
Impaired loans [Abstract] | |||||
Average of impaired loans | 2,542 | 4,219 | 3,073 | 3,854 | |
Commercial Real Estate [Member] | Commercial Development [Member] | |||||
With no related allowance recorded [Abstract] | |||||
With no allowance, Unpaid Principal Balance | 586 | 586 | 213 | ||
With no allowance, Recorded Investment | 586 | 586 | 213 | ||
With related allowance recorded [Abstract] | |||||
With related allowance, Unpaid Principal Balance | 2,061 | 2,061 | 0 | ||
With related allowance, Recorded Investment | 2,061 | 2,061 | 0 | ||
Allowance Allocated | 37 | 37 | 0 | ||
Impaired loans [Abstract] | |||||
Average of impaired loans | 1,233 | 215 | 421 | 217 | |
Commercial Real Estate [Member] | Residential Improved [Member] | |||||
With no related allowance recorded [Abstract] | |||||
With no allowance, Unpaid Principal Balance | 1,089 | 1,089 | 3,293 | ||
With no allowance, Recorded Investment | 1,089 | 1,089 | 3,019 | ||
With related allowance recorded [Abstract] | |||||
With related allowance, Unpaid Principal Balance | 9,776 | 9,776 | 10,063 | ||
With related allowance, Recorded Investment | 9,776 | 9,776 | 10,063 | ||
Allowance Allocated | 328 | 328 | 842 | ||
Impaired loans [Abstract] | |||||
Average of impaired loans | 11,072 | 12,707 | 11,759 | 13,564 | |
Commercial Real Estate [Member] | Commercial Improved [Member] | |||||
With no related allowance recorded [Abstract] | |||||
With no allowance, Unpaid Principal Balance | 3,727 | 3,727 | 7,268 | ||
With no allowance, Recorded Investment | 3,525 | 3,525 | 6,127 | ||
With related allowance recorded [Abstract] | |||||
With related allowance, Unpaid Principal Balance | 14,087 | 14,087 | 15,386 | ||
With related allowance, Recorded Investment | 14,087 | 14,087 | 15,386 | ||
Allowance Allocated | 827 | 827 | 1,071 | ||
Impaired loans [Abstract] | |||||
Average of impaired loans | 19,449 | 17,766 | 20,809 | 17,049 | |
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | |||||
With no related allowance recorded [Abstract] | |||||
With no allowance, Unpaid Principal Balance | 808 | 808 | 3,686 | ||
With no allowance, Recorded Investment | 808 | 808 | 3,686 | ||
With related allowance recorded [Abstract] | |||||
With related allowance, Unpaid Principal Balance | 5,747 | 5,747 | 4,706 | ||
With related allowance, Recorded Investment | 5,747 | 5,747 | 4,706 | ||
Allowance Allocated | 120 | 120 | 134 | ||
Impaired loans [Abstract] | |||||
Average of impaired loans | 6,105 | 9,104 | 6,420 | 9,291 | |
Consumer Loan [Member] | |||||
With no related allowance recorded [Abstract] | |||||
With no allowance, Unpaid Principal Balance | 0 | 0 | 4,614 | ||
With no allowance, Recorded Investment | 0 | 0 | 3,062 | ||
With related allowance recorded [Abstract] | |||||
With related allowance, Unpaid Principal Balance | 15,030 | 15,030 | 11,024 | ||
With related allowance, Recorded Investment | 15,030 | 15,030 | 11,024 | ||
Allowance Allocated | 914 | 914 | 716 | ||
Impaired loans [Abstract] | |||||
Average of impaired loans | 14,984 | 15,992 | 14,599 | 16,018 | |
Interest income recognized during impairment | 141 | 141 | 409 | 419 | |
Cash-basis interest income recognized | 141 | 141 | 402 | 417 | |
Consumer Loan [Member] | Residential Mortgage [Member] | |||||
With no related allowance recorded [Abstract] | |||||
With no allowance, Unpaid Principal Balance | 0 | 0 | 4,614 | ||
With no allowance, Recorded Investment | 0 | 0 | 3,062 | ||
With related allowance recorded [Abstract] | |||||
With related allowance, Unpaid Principal Balance | 9,219 | 9,219 | 10,220 | ||
With related allowance, Recorded Investment | 9,219 | 9,219 | 10,220 | ||
Allowance Allocated | 561 | 561 | 664 | ||
Consumer Loan [Member] | Unsecured [Member] | |||||
With no related allowance recorded [Abstract] | |||||
With no allowance, Unpaid Principal Balance | 0 | 0 | 0 | ||
With no allowance, Recorded Investment | 0 | 0 | 0 | ||
With related allowance recorded [Abstract] | |||||
With related allowance, Unpaid Principal Balance | 0 | 0 | 0 | ||
With related allowance, Recorded Investment | 0 | 0 | 0 | ||
Allowance Allocated | 0 | 0 | 0 | ||
Consumer Loan [Member] | Home Equity [Member] | |||||
With no related allowance recorded [Abstract] | |||||
With no allowance, Unpaid Principal Balance | 0 | 0 | 0 | ||
With no allowance, Recorded Investment | 0 | 0 | 0 | ||
With related allowance recorded [Abstract] | |||||
With related allowance, Unpaid Principal Balance | 5,811 | 5,811 | 804 | ||
With related allowance, Recorded Investment | 5,811 | 5,811 | 804 | ||
Allowance Allocated | 353 | 353 | 52 | ||
Consumer Loan [Member] | Other Secured [Member] | |||||
With no related allowance recorded [Abstract] | |||||
With no allowance, Unpaid Principal Balance | 0 | 0 | 0 | ||
With no allowance, Recorded Investment | 0 | 0 | 0 | ||
With related allowance recorded [Abstract] | |||||
With related allowance, Unpaid Principal Balance | 0 | 0 | 0 | ||
With related allowance, Recorded Investment | 0 | 0 | 0 | ||
Allowance Allocated | $0 | $0 | $0 |
LOANS_Past_Due_Loans_Details
LOANS, Past Due Loans (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Payment | ||
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract] | ||
Nonaccrual | $10,048,000 | $15,385,000 |
Over 90 days Accruing | 172,000 | 618,000 |
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
30-90 Days | 3,237,000 | 4,755,000 |
Greater Than 90 Days | 4,594,000 | 3,132,000 |
Total Past Due | 7,831,000 | 7,887,000 |
Loans Not Past Due | 1,020,962,000 | 1,044,461,000 |
Total ending loans balance | 1,028,793,000 | 1,052,348,000 |
Specific reserves allocated to customers with modified term loans in troubled debt restructurings | 4,662,000 | 6,005,000 |
Number of consecutive payment before nonaccrual restructured loan is upgraded | 6 | |
Number of months of performance before a loan is removed from TDR | 6 months | |
Commercial and Industrial [Member] | ||
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract] | ||
Nonaccrual | 4,240,000 | 7,657,000 |
Over 90 days Accruing | 0 | 0 |
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
30-90 Days | 103,000 | 395,000 |
Greater Than 90 Days | 17,000 | 219,000 |
Total Past Due | 120,000 | 614,000 |
Loans Not Past Due | 253,096,000 | 259,086,000 |
Total ending loans balance | 253,216,000 | 259,700,000 |
Commercial Real Estate [Member] | ||
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract] | ||
Nonaccrual | 4,762,000 | 6,637,000 |
Over 90 days Accruing | 172,000 | 618,000 |
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
30-90 Days | 2,123,000 | 3,239,000 |
Greater Than 90 Days | 3,903,000 | 2,539,000 |
Total Past Due | 6,026,000 | 5,778,000 |
Loans Not Past Due | 475,906,000 | 497,181,000 |
Total ending loans balance | 481,932,000 | 502,959,000 |
Commercial Real Estate [Member] | Residential Developed [Member] | ||
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract] | ||
Nonaccrual | 2,216,000 | 3,024,000 |
Over 90 days Accruing | 0 | 0 |
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
30-90 Days | 0 | 0 |
Greater Than 90 Days | 1,917,000 | 35,000 |
Total Past Due | 1,917,000 | 35,000 |
Loans Not Past Due | 18,888,000 | 26,055,000 |
Total ending loans balance | 20,805,000 | 26,090,000 |
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | ||
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract] | ||
Nonaccrual | 0 | 0 |
Over 90 days Accruing | 0 | 0 |
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
30-90 Days | 0 | 0 |
Greater Than 90 Days | 0 | 0 |
Total Past Due | 0 | 0 |
Loans Not Past Due | 7,326,000 | 5,547,000 |
Total ending loans balance | 7,326,000 | 5,547,000 |
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | ||
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract] | ||
Nonaccrual | 435,000 | 706,000 |
Over 90 days Accruing | 0 | 0 |
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
30-90 Days | 0 | 17,000 |
Greater Than 90 Days | 407,000 | 652,000 |
Total Past Due | 407,000 | 669,000 |
Loans Not Past Due | 48,570,000 | 55,856,000 |
Total ending loans balance | 48,977,000 | 56,525,000 |
Commercial Real Estate [Member] | Commercial Development [Member] | ||
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract] | ||
Nonaccrual | 23,000 | 2,000 |
Over 90 days Accruing | 0 | 196,000 |
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
30-90 Days | 0 | 0 |
Greater Than 90 Days | 23,000 | 199,000 |
Total Past Due | 23,000 | 199,000 |
Loans Not Past Due | 4,296,000 | 1,600,000 |
Total ending loans balance | 4,319,000 | 1,799,000 |
Commercial Real Estate [Member] | Residential Improved [Member] | ||
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract] | ||
Nonaccrual | 485,000 | 1,159,000 |
Over 90 days Accruing | 0 | 0 |
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
30-90 Days | 174,000 | 520,000 |
Greater Than 90 Days | 124,000 | 192,000 |
Total Past Due | 298,000 | 712,000 |
Loans Not Past Due | 77,116,000 | 75,101,000 |
Total ending loans balance | 77,414,000 | 75,813,000 |
Commercial Real Estate [Member] | Commercial Improved [Member] | ||
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract] | ||
Nonaccrual | 1,603,000 | 1,521,000 |
Over 90 days Accruing | 172,000 | 422,000 |
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
30-90 Days | 1,949,000 | 2,502,000 |
Greater Than 90 Days | 1,432,000 | 1,436,000 |
Total Past Due | 3,381,000 | 3,938,000 |
Loans Not Past Due | 240,307,000 | 251,800,000 |
Total ending loans balance | 243,688,000 | 255,738,000 |
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | ||
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract] | ||
Nonaccrual | 0 | 225,000 |
Over 90 days Accruing | 0 | 0 |
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
30-90 Days | 0 | 200,000 |
Greater Than 90 Days | 0 | 25,000 |
Total Past Due | 0 | 225,000 |
Loans Not Past Due | 79,403,000 | 81,222,000 |
Total ending loans balance | 79,403,000 | 81,447,000 |
Consumer Loan [Member] | ||
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract] | ||
Nonaccrual | 1,046,000 | 1,091,000 |
Over 90 days Accruing | 0 | 0 |
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
30-90 Days | 1,011,000 | 1,121,000 |
Greater Than 90 Days | 674,000 | 374,000 |
Total Past Due | 1,685,000 | 1,495,000 |
Loans Not Past Due | 291,960,000 | 288,194,000 |
Total ending loans balance | 293,645,000 | 289,689,000 |
Consumer Loan [Member] | Residential Mortgage [Member] | ||
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract] | ||
Nonaccrual | 639,000 | 447,000 |
Over 90 days Accruing | 0 | 0 |
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
30-90 Days | 395,000 | 647,000 |
Greater Than 90 Days | 636,000 | 110,000 |
Total Past Due | 1,031,000 | 757,000 |
Loans Not Past Due | 183,994,000 | 181,868,000 |
Total ending loans balance | 185,025,000 | 182,625,000 |
Consumer Loan [Member] | Unsecured [Member] | ||
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract] | ||
Nonaccrual | 33,000 | 19,000 |
Over 90 days Accruing | 0 | 0 |
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
30-90 Days | 0 | 0 |
Greater Than 90 Days | 0 | 0 |
Total Past Due | 0 | 0 |
Loans Not Past Due | 1,464,000 | 1,683,000 |
Total ending loans balance | 1,464,000 | 1,683,000 |
Consumer Loan [Member] | Home Equity [Member] | ||
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract] | ||
Nonaccrual | 374,000 | 625,000 |
Over 90 days Accruing | 0 | 0 |
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
30-90 Days | 538,000 | 415,000 |
Greater Than 90 Days | 38,000 | 264,000 |
Total Past Due | 576,000 | 679,000 |
Loans Not Past Due | 96,214,000 | 92,085,000 |
Total ending loans balance | 96,790,000 | 92,764,000 |
Consumer Loan [Member] | Other Secured [Member] | ||
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract] | ||
Nonaccrual | 0 | 0 |
Over 90 days Accruing | 0 | 0 |
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
30-90 Days | 78,000 | 59,000 |
Greater Than 90 Days | 0 | 0 |
Total Past Due | 78,000 | 59,000 |
Loans Not Past Due | 10,288,000 | 12,558,000 |
Total ending loans balance | $10,366,000 | $12,617,000 |
LOANS_Troubled_Debt_Restructur
LOANS, 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 | Dec. 31, 2012 |
Loan | Loan | Loan | Loan | Loan | |
Troubled debt restructurings [Abstract] | |||||
Number of Loans | 288 | 288 | 286 | ||
Outstanding Recorded Balance | $70,614 | $70,614 | $78,055 | ||
Troubled debt restructurings executed during current period [Abstract] | |||||
Number of Loans | 7 | 6 | 49 | 67 | |
Outstanding Recorded Balance | 1,146 | 2,553 | 9,594 | 13,049 | |
Principal Write-down upon Modification | 0 | 0 | 1,770 | 355 | |
Modifications and Renewals that are not Troubled debt restructurings [Abstract] | |||||
Number of Loans - not considered TDRs | 231 | 328 | 666 | 720 | |
Outstanding Recorded Balance - not considered TDRs | 44,118 | 70,719 | 169,139 | 188,343 | |
Commercial and Industrial [Member] | |||||
Troubled debt restructurings [Abstract] | |||||
Number of Loans | 55 | 55 | 58 | ||
Outstanding Recorded Balance | 12,218 | 12,218 | 14,485 | ||
Troubled debt restructurings executed during current period [Abstract] | |||||
Number of Loans | 2 | 1 | 5 | 14 | |
Outstanding Recorded Balance | 823 | 15 | 1,085 | 1,351 | |
Principal Write-down upon Modification | 0 | 0 | 0 | 9 | |
Modifications and Renewals that are not Troubled debt restructurings [Abstract] | |||||
Number of Loans - not considered TDRs | 141 | 166 | 351 | 398 | |
Outstanding Recorded Balance - not considered TDRs | 24,425 | 27,615 | 72,878 | 88,059 | |
Loans that became delinquent more than 90 days past due or transferred to nonaccrual within 12 months of restructuring [Abstract] | |||||
Number of Loans | 0 | 0 | 0 | 3 | |
Outstanding Recorded Balance | 0 | 0 | 0 | 112 | |
Commercial Real Estate [Member] | |||||
Troubled debt restructurings [Abstract] | |||||
Number of Loans | 121 | 121 | 142 | ||
Outstanding Recorded Balance | 43,321 | 43,321 | 49,936 | ||
Troubled debt restructurings executed during current period [Abstract] | |||||
Number of Loans | 2 | 5 | 11 | 44 | |
Outstanding Recorded Balance | 186 | 2,538 | 2,903 | 10,236 | |
Principal Write-down upon Modification | 0 | 0 | 0 | 86 | |
Modifications and Renewals that are not Troubled debt restructurings [Abstract] | |||||
Number of Loans - not considered TDRs | 80 | 112 | 277 | 256 | |
Outstanding Recorded Balance - not considered TDRs | 19,422 | 40,784 | 95,058 | 97,583 | |
Loans that became delinquent more than 90 days past due or transferred to nonaccrual within 12 months of restructuring [Abstract] | |||||
Number of Loans | 0 | 1 | 0 | 2 | |
Outstanding Recorded Balance | 0 | 136 | 0 | 212 | |
Consumer [Member] | |||||
Troubled debt restructurings [Abstract] | |||||
Number of Loans | 112 | 112 | 86 | ||
Outstanding Recorded Balance | 15,075 | 15,075 | 13,634 | ||
Troubled debt restructurings executed during current period [Abstract] | |||||
Number of Loans | 3 | 0 | 33 | 9 | |
Outstanding Recorded Balance | 137 | 0 | 5,606 | 1,462 | |
Principal Write-down upon Modification | 0 | 0 | 1,770 | 260 | |
Modifications and Renewals that are not Troubled debt restructurings [Abstract] | |||||
Number of Loans - not considered TDRs | 10 | 50 | 38 | 66 | |
Outstanding Recorded Balance - not considered TDRs | 271 | 2,320 | 1,203 | 2,701 | |
Loans that became delinquent more than 90 days past due or transferred to nonaccrual within 12 months of restructuring [Abstract] | |||||
Number of Loans | 0 | 1 | 0 | 2 | |
Outstanding Recorded Balance | $0 | $114 | $0 | $184 |
LOANS_Credit_Quality_Indicator
LOANS, Credit Quality Indicators (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Grading | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Number point grading system used for loan quality | 8 | |
Total loans | $33,074 | $53,313 |
Internal ratings of loans considered substandard, or worse | 6 or worse | |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 33,074 | 53,313 |
Not Classified as Impaired [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 8,780 | 13,015 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 8,780 | 13,015 |
Classified as Impaired [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 24,294 | 40,298 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 24,294 | 40,298 |
Excellent [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 1,207 | 1,349 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 1,207 | 1,349 |
Above Average [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 18,126 | 24,841 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 18,126 | 24,841 |
Good Quality [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 173,710 | 153,991 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 173,710 | 153,991 |
Acceptable Risk [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 431,534 | 432,328 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 431,534 | 432,328 |
Marginally Acceptable [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 77,497 | 96,837 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 77,497 | 96,837 |
Substandard [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 24,074 | 39,014 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 24,074 | 39,014 |
Doubtful [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 9,000 | 14,299 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 9,000 | 14,299 |
Loss [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | 0 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 0 | 0 |
Commercial and Industrial [Member] | Excellent [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 1,207 | 1,349 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 1,207 | 1,349 |
Commercial and Industrial [Member] | Above Average [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 13,835 | 20,630 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 13,835 | 20,630 |
Commercial and Industrial [Member] | Good Quality [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 69,640 | 72,723 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 69,640 | 72,723 |
Commercial and Industrial [Member] | Acceptable Risk [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 152,822 | 141,425 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 152,822 | 141,425 |
Commercial and Industrial [Member] | Marginally Acceptable [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 9,683 | 12,027 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 9,683 | 12,027 |
Commercial and Industrial [Member] | Substandard [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 1,790 | 3,884 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 1,790 | 3,884 |
Commercial and Industrial [Member] | Doubtful [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 4,239 | 7,662 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 4,239 | 7,662 |
Commercial and Industrial [Member] | Loss [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | 0 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 0 | 0 |
Residential Mortgage [Member] | ||
Recorded investment in consumer loans based on payment activity [Abstract] | ||
Recorded investment in consumer loans | 185,025 | 182,625 |
Residential Mortgage [Member] | Performing [Member] | ||
Recorded investment in consumer loans based on payment activity [Abstract] | ||
Recorded investment in consumer loans | 184,389 | 182,515 |
Residential Mortgage [Member] | Nonperforming [Member] | ||
Recorded investment in consumer loans based on payment activity [Abstract] | ||
Recorded investment in consumer loans | 636 | 110 |
Unsecured [Member] | ||
Recorded investment in consumer loans based on payment activity [Abstract] | ||
Recorded investment in consumer loans | 1,464 | 1,683 |
Unsecured [Member] | Performing [Member] | ||
Recorded investment in consumer loans based on payment activity [Abstract] | ||
Recorded investment in consumer loans | 1,464 | 1,683 |
Unsecured [Member] | Nonperforming [Member] | ||
Recorded investment in consumer loans based on payment activity [Abstract] | ||
Recorded investment in consumer loans | 0 | 0 |
Home Equity [Member] | ||
Recorded investment in consumer loans based on payment activity [Abstract] | ||
Recorded investment in consumer loans | 96,790 | 92,764 |
Home Equity [Member] | Performing [Member] | ||
Recorded investment in consumer loans based on payment activity [Abstract] | ||
Recorded investment in consumer loans | 96,752 | 92,500 |
Home Equity [Member] | Nonperforming [Member] | ||
Recorded investment in consumer loans based on payment activity [Abstract] | ||
Recorded investment in consumer loans | 38 | 264 |
Other Secured [Member] | ||
Recorded investment in consumer loans based on payment activity [Abstract] | ||
Recorded investment in consumer loans | 10,366 | 12,617 |
Other Secured [Member] | Performing [Member] | ||
Recorded investment in consumer loans based on payment activity [Abstract] | ||
Recorded investment in consumer loans | 10,366 | 12,617 |
Other Secured [Member] | Nonperforming [Member] | ||
Recorded investment in consumer loans based on payment activity [Abstract] | ||
Recorded investment in consumer loans | 0 | 0 |
Commercial Real Estate [Member] | Residential Developed [Member] | Excellent [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | 0 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 0 | 0 |
Commercial Real Estate [Member] | Residential Developed [Member] | Above Average [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | 0 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 0 | 0 |
Commercial Real Estate [Member] | Residential Developed [Member] | Good Quality [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 1,144 | 715 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 1,144 | 715 |
Commercial Real Estate [Member] | Residential Developed [Member] | Acceptable Risk [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 5,720 | 6,240 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 5,720 | 6,240 |
Commercial Real Estate [Member] | Residential Developed [Member] | Marginally Acceptable [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 6,890 | 9,772 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 6,890 | 9,772 |
Commercial Real Estate [Member] | Residential Developed [Member] | Substandard [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 4,835 | 6,339 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 4,835 | 6,339 |
Commercial Real Estate [Member] | Residential Developed [Member] | Doubtful [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 2,216 | 3,024 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 2,216 | 3,024 |
Commercial Real Estate [Member] | Residential Developed [Member] | Loss [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | 0 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 0 | 0 |
Commercial Real Estate [Member] | Commercial Development [Member] | Excellent [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | 0 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 0 | 0 |
Commercial Real Estate [Member] | Commercial Development [Member] | Above Average [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | 0 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 0 | 0 |
Commercial Real Estate [Member] | Commercial Development [Member] | Good Quality [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | 0 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 0 | 0 |
Commercial Real Estate [Member] | Commercial Development [Member] | Acceptable Risk [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 1,479 | 482 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 1,479 | 482 |
Commercial Real Estate [Member] | Commercial Development [Member] | Marginally Acceptable [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 2,609 | 1,102 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 2,609 | 1,102 |
Commercial Real Estate [Member] | Commercial Development [Member] | Substandard [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 209 | 213 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 209 | 213 |
Commercial Real Estate [Member] | Commercial Development [Member] | Doubtful [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 22 | 2 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 22 | 2 |
Commercial Real Estate [Member] | Commercial Development [Member] | Loss [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | 0 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 0 | 0 |
Commercial Real Estate [Member] | Commercial Improved [Member] | Excellent [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | 0 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 0 | 0 |
Commercial Real Estate [Member] | Commercial Improved [Member] | Above Average [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 3,843 | 2,009 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 3,843 | 2,009 |
Commercial Real Estate [Member] | Commercial Improved [Member] | Good Quality [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 49,762 | 40,253 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 49,762 | 40,253 |
Commercial Real Estate [Member] | Commercial Improved [Member] | Acceptable Risk [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 151,735 | 159,353 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 151,735 | 159,353 |
Commercial Real Estate [Member] | Commercial Improved [Member] | Marginally Acceptable [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 29,160 | 37,449 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 29,160 | 37,449 |
Commercial Real Estate [Member] | Commercial Improved [Member] | Substandard [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 7,585 | 15,153 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 7,585 | 15,153 |
Commercial Real Estate [Member] | Commercial Improved [Member] | Doubtful [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 1,603 | 1,521 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 1,603 | 1,521 |
Commercial Real Estate [Member] | Commercial Improved [Member] | Loss [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | 0 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 0 | 0 |
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | Excellent [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | 0 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 0 | 0 |
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | Above Average [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 337 | 2,087 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 337 | 2,087 |
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | Good Quality [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 24,623 | 17,795 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 24,623 | 17,795 |
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | Acceptable Risk [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 43,528 | 48,061 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 43,528 | 48,061 |
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | Marginally Acceptable [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 8,820 | 9,592 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 8,820 | 9,592 |
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | Substandard [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 2,095 | 3,687 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 2,095 | 3,687 |
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | Doubtful [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | 225 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 0 | 225 |
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | Loss [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | 0 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 0 | 0 |
Commercial Real Estate [Member] | Residential Improved [Member] | Excellent [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | 0 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 0 | 0 |
Commercial Real Estate [Member] | Residential Improved [Member] | Above Average [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 111 | 115 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 111 | 115 |
Commercial Real Estate [Member] | Residential Improved [Member] | Good Quality [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 15,971 | 9,973 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 15,971 | 9,973 |
Commercial Real Estate [Member] | Residential Improved [Member] | Acceptable Risk [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 41,708 | 41,578 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 41,708 | 41,578 |
Commercial Real Estate [Member] | Residential Improved [Member] | Marginally Acceptable [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 12,034 | 14,471 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 12,034 | 14,471 |
Commercial Real Estate [Member] | Residential Improved [Member] | Substandard [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 7,105 | 8,517 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 7,105 | 8,517 |
Commercial Real Estate [Member] | Residential Improved [Member] | Doubtful [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 485 | 1,159 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 485 | 1,159 |
Commercial Real Estate [Member] | Residential Improved [Member] | Loss [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | 0 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 0 | 0 |
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | Excellent [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | 0 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 0 | 0 |
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | Above Average [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | 0 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 0 | 0 |
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | Good Quality [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | 0 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 0 | 0 |
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | Acceptable Risk [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 7,318 | 5,535 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 7,318 | 5,535 |
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | Marginally Acceptable [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 8 | 12 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 8 | 12 |
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | Substandard [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | 0 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 0 | 0 |
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | Doubtful [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | 0 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 0 | 0 |
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | Loss [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | 0 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 0 | 0 |
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Excellent [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | 0 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 0 | 0 |
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Above Average [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | 0 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 0 | 0 |
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Good Quality [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 12,570 | 12,532 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 12,570 | 12,532 |
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Acceptable Risk [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 27,224 | 29,654 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 27,224 | 29,654 |
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Marginally Acceptable [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 8,293 | 12,412 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 8,293 | 12,412 |
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Substandard [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 455 | 1,221 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 455 | 1,221 |
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Doubtful [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 435 | 706 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | 435 | 706 |
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Loss [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | 0 |
Loans classified as substandard or worse [Abstract] | ||
Loans classified as substandard or worse | $0 | $0 |
OTHER_REAL_ESTATE_OWNED_Detail
OTHER REAL ESTATE OWNED (Details) (USD $) | 9 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Period-end other real estate owned [Roll Forward] | |||
Beginning balance | $69,743 | $83,663 | $83,663 |
Additions, transfers from loans and fixed assets | 3,170 | 9,002 | 9,168 |
Proceeds from sales of other real estate owned | -10,545 | -13,426 | -18,729 |
Valuation allowance reversal upon sale | -2,794 | -2,962 | -4,300 |
Gain (loss) on sale of other real estate owned | 1,004 | 11 | -59 |
Other real estate owned, gross | 60,578 | 76,288 | 69,743 |
Less: valuation allowance | -17,782 | -18,510 | -18,161 |
Ending balance | 42,796 | 57,778 | 51,582 |
Activity in valuation allowance [Roll Forward] | |||
Beginning balance | 18,161 | 17,225 | 17,225 |
Additions charged to expense | 2,415 | 4,247 | |
Reversals upon sale | -2,794 | -2,962 | |
Ending balance | $17,782 | $18,510 | $18,161 |
FAIR_VALUE_Details
FAIR VALUE (Details) (USD $) | 9 Months Ended | ||||||||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
Level | Recurring Basis [Member] | Recurring Basis [Member] | Recurring Basis [Member] | Recurring Basis [Member] | Recurring Basis [Member] | Recurring Basis [Member] | Recurring Basis [Member] | Recurring Basis [Member] | Nonrecurring Basis [Member] | Nonrecurring Basis [Member] | Nonrecurring Basis [Member] | Nonrecurring Basis [Member] | Nonrecurring Basis [Member] | Nonrecurring Basis [Member] | Nonrecurring Basis [Member] | Nonrecurring Basis [Member] | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value [Member] | Fair Value [Member] | ||
FAIR VALUE [Abstract] | |||||||||||||||||
Number of levels of input | 3 | ||||||||||||||||
Asset measured at fair value on recurring basis [Abstract] | |||||||||||||||||
U.S. Treasury and federal agency securities | $0 | $0 | $52,488 | $42,564 | $0 | $0 | $52,488 | $42,564 | |||||||||
U.S. Agency MBS and CMOs | 0 | 0 | 18,602 | 23,761 | 0 | 0 | 18,602 | 23,761 | |||||||||
Tax-exempt state and municipal bonds | 0 | 0 | 24,565 | 20,793 | 0 | 0 | 24,565 | 20,793 | |||||||||
Taxable state and municipal bonds | 0 | 0 | 27,861 | 27,296 | 0 | 0 | 27,861 | 27,296 | |||||||||
Corporate bonds | 0 | 0 | 10,435 | 7,526 | 0 | 0 | 10,435 | 7,526 | |||||||||
Other equity securities | 0 | 0 | 1,488 | 1,557 | 0 | 0 | 1,488 | 1,557 | |||||||||
Loans held for sale | 0 | 0 | 2,983 | 8,130 | 0 | 0 | 2,983 | 8,130 | |||||||||
Asset measured at fair value on non-recurring basis [Abstract] | |||||||||||||||||
Impaired loans | 0 | 0 | 0 | 0 | 24,087 | 34,668 | 24,087 | 34,668 | |||||||||
Other real estate owned | $0 | $0 | $0 | $0 | $34,564 | $41,594 | $34,564 | $41,594 |
FAIR_VALUE_Balance_Sheet_Group
FAIR VALUE, Balance Sheet Grouping (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financial assets [Abstract] | ||
Cash and due from banks | $35,592 | $33,556 |
Bank-owned life insurance | 27,343 | 26,804 |
Carrying Amount [Member] | Commitments to Make Loans [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet credit-related items | 0 | 0 |
Fair Value [Member] | Commitments to Make Loans [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet credit-related items | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Carrying Amount [Member] | ||
Financial assets [Abstract] | ||
Cash and due from banks | 35,592 | 33,556 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value [Member] | ||
Financial assets [Abstract] | ||
Cash and due from banks | 35,592 | 33,556 |
Significant Other Observable Inputs (Level 2) [Member] | Carrying Amount [Member] | ||
Financial assets [Abstract] | ||
Cash equivalents | 178,263 | 192,802 |
Interest-bearing time deposits in other financial institutions | 25,000 | 0 |
Securities held to maturity | 18,995 | 4,300 |
FHLB stock | 11,236 | 11,236 |
Loans, net | 983,434 | 993,941 |
Accrued interest receivable | 3,250 | 3,411 |
Financial liabilities [Abstract] | ||
Deposits | -1,288,041 | -1,286,261 |
Other borrowed funds | -89,991 | -91,822 |
Long-term debt | -41,238 | -41,238 |
Subordinated debt | 0 | -1,650 |
Accrued interest payable | -7,903 | -4,858 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value [Member] | ||
Financial assets [Abstract] | ||
Cash equivalents | 178,263 | 192,802 |
Interest-bearing time deposits in other financial institutions | 25,000 | 0 |
Securities held to maturity | 19,444 | 4,301 |
Loans, net | 976,296 | 999,619 |
Accrued interest receivable | 3,250 | 3,411 |
Financial liabilities [Abstract] | ||
Deposits | -1,289,388 | -1,285,819 |
Other borrowed funds | -90,513 | -95,213 |
Long-term debt | -35,099 | -30,463 |
Subordinated debt | 0 | -1,650 |
Accrued interest payable | -7,903 | -4,858 |
Significant Unobservable Inputs (Level 3) [Member] | Carrying Amount [Member] | ||
Financial assets [Abstract] | ||
Bank-owned life insurance | 27,343 | 26,804 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value [Member] | ||
Financial assets [Abstract] | ||
Bank-owned life insurance | $27,343 | $26,804 |
DEPOSITS_Details
DEPOSITS (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Summary of deposit [Abstract] | ||
Noninterest-bearing demand | $352,879,000 | $339,520,000 |
Interest bearing demand | 302,822,000 | 278,765,000 |
Savings and money market accounts | 475,895,000 | 476,803,000 |
Certificates of deposit | 156,445,000 | 191,173,000 |
Total deposits | 1,288,041,000 | 1,286,261,000 |
Certificate of deposits, $100,000 or more denominations | 58,800,000 | 69,200,000 |
Denominations amount of certificates of deposit | $100,000 | $100,000 |
OTHER_BORROWED_FUNDS_Details
OTHER BORROWED FUNDS (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |
Loan | Federal Home Loan Bank Advances [Member] | Single Maturity Fixed Rate Advances [Member] | Single Maturity Fixed Rate Advances [Member] | Single Maturity Fixed Rate Advances [Member] | Single Maturity Fixed Rate Advances [Member] | Single Maturity Fixed Rate Advances [Member] | Single Maturity Fixed Rate Advances [Member] | Federal Home Loan Bank Advances [Member] | Federal Home Loan Bank Advances [Member] | Amortizable Mortgage Advances [Member] | Amortizable Mortgage Advances [Member] | Amortizable Mortgage Advances [Member] | Amortizable Mortgage Advances [Member] | Amortizable Mortgage Advances [Member] | Amortizable Mortgage Advances [Member] | |||
Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | |||||||||||
Advances from Federal Home Loan Bank [Abstract] | ||||||||||||||||||
Advance amount | $89,991,000 | $91,822,000 | $80,000,000 | $80,000,000 | $9,991,000 | $11,822,000 | ||||||||||||
Maturity date | 1-Aug-16 | 1-May-15 | 1-Feb-19 | 1-Sep-16 | 1-Mar-18 | 1-Mar-18 | 1-Jul-18 | 1-Jul-18 | ||||||||||
Weighted average interest rate (in hundredths) | 1.69% | 1.70% | 1.94% | 1.95% | 3.78% | 3.78% | ||||||||||||
Residential and commercial real estate loans pledged as collateral for Federal Home Loan Bank advances | 416,405,000 | 413,482,000 | ||||||||||||||||
FHLB advance agreements with Bank modified terms | 6 | |||||||||||||||||
FHLB advance amount with Bank modified terms | 60,000,000 | |||||||||||||||||
Weighted average maturity (in years) | 4 years 10 months 10 days | 3 years 2 months 19 days | ||||||||||||||||
Scheduled repayments of FHLB advances [Abstract] | ||||||||||||||||||
2013 | 0 | |||||||||||||||||
2014 | 1,884,000 | |||||||||||||||||
2015 | 1,938,000 | |||||||||||||||||
2016 | 21,996,000 | |||||||||||||||||
2017 | 2,055,000 | |||||||||||||||||
Thereafter | 62,118,000 | |||||||||||||||||
Total | 89,991,000 | 91,822,000 | 89,991,000 | |||||||||||||||
Federal Reserve Bank borrowings [Abstract] | ||||||||||||||||||
Unused borrowing capacity to Federal Reserve Bank | 27,700,000 | 30,300,000 | ||||||||||||||||
Commercial and mortgage loans pledged to the Federal Reserve Bank | $33,200,000 | $37,200,000 |
EARNINGS_PER_COMMON_SHARE_Deta
EARNINGS PER COMMON SHARE (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Reconciliation of numerators and denominators of basic and diluted earnings per common share [Abstract] | ||||
Net income | $2,238 | $6,585 | $7,315 | $14,256 |
Dividends declared on preferred shares | 0 | 0 | 0 | 0 |
Net income available to common shares | $2,238 | $6,585 | $7,315 | $14,256 |
Weighted average shares outstanding, including participating stock awards - Basic (in shares) | 27,261,325 | 27,082,825 | 27,244,741 | 27,082,823 |
Dilutive potential common shares [Abstract] | ||||
Stock options (in shares) | 0 | 0 | 0 | 0 |
Conversion of preferred stock (in shares) | 0 | 0 | 0 | 0 |
Stock warrants (in shares) | 0 | 0 | 0 | 0 |
Weighted average shares outstanding - Diluted (in shares) | 27,261,325 | 27,082,825 | 27,244,741 | 27,082,823 |
Basic earnings per common share (in dollars per share) | $0.08 | $0.24 | $0.27 | $0.53 |
Diluted earnings per common share (in dollars per share) | $0.08 | $0.24 | $0.27 | $0.53 |
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share amount (in shares) | 445,392 | 534,444 | 445,392 | 534,444 |
FEDERAL_INCOME_TAXES_Details
FEDERAL INCOME TAXES (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2009 | |
Income tax expense (benefit) [Abstract] | |||||||
Current | $40,000 | $275,000 | $95,000 | $275,000 | |||
Deferred (benefit) expense | 935,000 | 0 | 3,218,000 | 0 | |||
Income tax expense (benefit) | 975,000 | 275,000 | 3,313,000 | 275,000 | |||
Reconciliation of financial statement tax expense (benefit) and amount computed by applying statutory federal tax rate to pretax income [Abstract] | |||||||
Statutory rate (in hundredths) | 35.00% | 35.00% | 35.00% | 35.00% | |||
Statutory rate applied to income before taxes | 1,124,000 | 2,401,000 | 3,720,000 | 5,086,000 | |||
Add (deduct) [Abstract] | |||||||
Change in valuation allowance | 0 | -1,761,000 | 0 | -4,056,000 | |||
Tax-exempt interest income | -70,000 | -32,000 | -166,000 | -64,000 | |||
Bank-owned life insurance | -63,000 | -73,000 | -188,000 | -230,000 | |||
Other, net | -16,000 | -260,000 | -53,000 | -461,000 | |||
Income tax expense (benefit) | 975,000 | 275,000 | 3,313,000 | 275,000 | |||
Valuation allowance on deferred tax assets | 0 | 0 | 0 | 18,000,000 | |||
Other real estate | 51,600,000 | 14,800,000 | |||||
Valuation allowance reversed to federal income tax expense | 18,900,000 | ||||||
Deferred tax assets [Abstract] | |||||||
Allowance for loan losses | 7,445,000 | 7,445,000 | 8,309,000 | ||||
Nonaccrual loan interest | 828,000 | 828,000 | 1,023,000 | ||||
Valuation allowance on other real estate owned | 6,224,000 | 6,224,000 | 6,356,000 | ||||
Net operating loss carryforward | 2,088,000 | 2,088,000 | 4,188,000 | ||||
Unrealized loss on securities available for sale | 780,000 | 780,000 | 0 | ||||
Other | 1,776,000 | 1,776,000 | 1,794,000 | ||||
Gross deferred tax assets | 19,141,000 | 19,141,000 | 21,670,000 | ||||
Valuation allowance | 0 | 0 | 0 | -18,000,000 | |||
Total net deferred tax assets | 19,141,000 | 19,141,000 | 21,670,000 | ||||
Deferred tax liabilities [Abstract] | |||||||
Depreciation | -1,592,000 | -1,592,000 | -1,693,000 | ||||
Unrealized gain on securities available for sale | 0 | 0 | -517,000 | ||||
Prepaid expenses | -308,000 | -308,000 | -308,000 | ||||
Other | -382,000 | -382,000 | -372,000 | ||||
Gross deferred tax liabilities | -2,282,000 | -2,282,000 | -2,890,000 | ||||
Net deferred tax asset | 16,859,000 | 16,859,000 | 18,780,000 | ||||
Federal net operating loss carry forwards | 6,000,000 | 6,000,000 | |||||
Federal net operating loss carry forwards, expiration date | 2030 | ||||||
Unrecognized tax benefits | $0 | $0 | $0 | ||||
Period when unrecognized tax benefits is not expected to significantly increase or decrease | 12 months |
COMMITMENTS_AND_OFF_BALANCESHE2
COMMITMENTS AND OFF BALANCE-SHEET RISK (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Summary of the contractual amounts of financial instruments with off-balance-sheet risk [Abstract] | ||
Notional amount of commitments to fund mortgage loans to be sold into the secondary market | $17,500,000 | $26,900,000 |
Commitments to make loans at fixed rates (in hundredths) | 32.00% | |
Expiration period of commitment to make variable rate loan | 30 days | |
Commitments to make Loans [Member] | ||
Summary of the contractual amounts of financial instruments with off-balance-sheet risk [Abstract] | ||
Contractual amounts of financial instruments with off-balance-sheet risk | 116,893,000 | 75,319,000 |
Letters of Credit [Member] | ||
Summary of the contractual amounts of financial instruments with off-balance-sheet risk [Abstract] | ||
Contractual amounts of financial instruments with off-balance-sheet risk | 8,883,000 | 8,200,000 |
Unused lines of Credit [Member] | ||
Summary of the contractual amounts of financial instruments with off-balance-sheet risk [Abstract] | ||
Contractual amounts of financial instruments with off-balance-sheet risk | $284,181,000 | $276,620,000 |
LONGTERM_DEBT_Details
LONG-TERM DEBT (Details) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2009 | |
Quarter | Quarter | |
Debt Instrument [Line Items] | ||
Debt instrument, Amount | $40,000,000 | |
Number of interest deferrals on consecutive quarterly payments | 15 | 20 |
Macatawa Statutory Trust I [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on three-month LIBOR (in hundredths) | 3.05% | |
Description of Variable Rate Basis | LIBOR | |
Regularly scheduled interest payment | 3,000,000 | |
Macatawa Statutory Trust I [Member] | Preferred Securities [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, Amount | 20,000,000 | |
Macatawa Statutory Trust II [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on three-month LIBOR (in hundredths) | 2.75% | |
Description of Variable Rate Basis | LIBOR | |
Unpaid interest accrued | 2,700,000 | |
Macatawa Statutory Trust II [Member] | Preferred Securities [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, Amount | $20,000,000 |
SHAREHOLDERS_EQUITY_Details
SHAREHOLDERS' EQUITY (Details) (USD $) | 0 Months Ended | 9 Months Ended | 12 Months Ended | ||
Aug. 13, 2013 | Sep. 30, 2013 | Dec. 31, 2009 | Dec. 31, 2012 | ||
Category | |||||
SHAREHOLDERS' EQUITY [Abstract] | |||||
Number of classification of prompt corrective action regulations | 5 | ||||
Summary of actual capital levels and minimum required levels [Abstract] | |||||
Trust preferred securities that qualified as Tier one risk based capital | $40,000,000 | $37,700,000 | |||
Retained earnings | -84,020,000 | -91,335,000 | |||
Subordinated Notes [Abstract] | |||||
Proceeds from issuance of debt | 1,650,000 | ||||
Interest Rate (in hundredths) | 11.00% | ||||
Debt instrument due date | 2,017 | ||||
Debt redeemable period | 3 years | ||||
Prepaid and redeemed subordinated notes | 1,650,000 | ||||
Consolidated [Member] | |||||
Summary of actual capital levels and minimum required levels [Abstract] | |||||
Total capital (to risk weighted assets), actual amount | 177,037,000 | 168,929,000 | |||
Total capital (to risk weighted assets), actual ratio (in hundredths) | 16.00% | 15.00% | |||
Tier 1 capital (to risk weighted assets), actual amount | 163,150,000 | 150,857,000 | |||
Tier 1 capital (to risk weighted assets), actual ratio (in hundredths) | 14.80% | 13.40% | |||
Tier 1 capital (to average assets), actual amount | 163,150,000 | 150,857,000 | |||
Tier 1 capital (to average assets), actual ratio (in hundredths) | 10.90% | 10.40% | |||
Total capital (to risk weighted assets), minimum required for capital adequacy purposes, amount | 88,285,000 | 90,244,000 | |||
Total capital (to risk weighted assets) minimum required for capital adequacy purposes, ratio (in hundredths) | 8.00% | 8.00% | |||
Tier 1 capital (to risk weighted assets), minimum required for capital adequacy purposes, amount | 44,143,000 | 45,122,000 | |||
Tier 1 capital (to risk weighted assets), minimum required for capital adequacy purposes, ratio (in hundredths) | 4.00% | 4.00% | |||
Tier 1 capital (to average assets), minimum required for capital adequacy purposes, amount | 59,922,000 | 58,312,000 | |||
Tier 1 capital (to average assets), minimum required for capital adequacy purposes, ratio (in hundredths) | 4.00% | 4.00% | |||
Bank [Member] | |||||
Summary of actual capital levels and minimum required levels [Abstract] | |||||
Total capital (to risk weighted assets), actual amount | 175,541,000 | 164,214,000 | |||
Total capital (to risk weighted assets), actual ratio (in hundredths) | 15.90% | 14.50% | |||
Tier 1 capital (to risk weighted assets), actual amount | 161,646,000 | 149,960,000 | |||
Tier 1 capital (to risk weighted assets), actual ratio (in hundredths) | 14.60% | 13.30% | |||
Tier 1 capital (to average assets), actual amount | 161,646,000 | 149,960,000 | |||
Tier 1 capital (to average assets), actual ratio (in hundredths) | 10.80% | 10.30% | |||
Total capital (to risk weighted assets), minimum required for capital adequacy purposes, amount | 88,336,000 | 90,299,000 | |||
Total capital (to risk weighted assets) minimum required for capital adequacy purposes, ratio (in hundredths) | 8.00% | 8.00% | |||
Tier 1 capital (to risk weighted assets), minimum required for capital adequacy purposes, amount | 44,168,000 | 45,150,000 | |||
Tier 1 capital (to risk weighted assets), minimum required for capital adequacy purposes, ratio (in hundredths) | 4.00% | 4.00% | |||
Tier 1 capital (to average assets), minimum required for capital adequacy purposes, amount | 59,887,000 | 58,371,000 | |||
Tier 1 capital (to average assets), minimum required for capital adequacy purposes, ratio (in hundredths) | 4.00% | 4.00% | |||
Total capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations, amount | 110,421,000 | 112,874,000 | |||
Total capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations, ratio (in hundredths) | 10.00% | 10.00% | |||
Tier 1 capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations, amount | 66,252,000 | 67,724,000 | |||
Tier 1 capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations, ratio (in hundredths) | 6.00% | 6.00% | |||
Tier 1 capital (to average assets) to be well capitalized under prompt corrective action regulations, amount | 74,859,000 | 72,964,000 | |||
Tier 1 capital (to average assets) to be well capitalized under prompt corrective action regulations, ratio (in hundredths) | 5.00% | 5.00% | |||
Tier 1 capital (to average assets) minimum required under MOU/consent order, amount | 116,742,000 | [1] | |||
Tier 1 capital (to average assets) minimum required under MOU/consent order, ratio (in hundredths) | 8.00% | [1] | |||
Retained earnings | $11,900,000 | ||||
[1] | The MOU is applicable only to the December 31, 2012 information presented in these columns. |