Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 23, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | MACATAWA BANK CORP | |
Entity Central Index Key | 1,053,584 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 33,866,789 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 |
CONSOLIDATED BALANCE SHEETS (un
CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and due from banks | $ 28,853 | $ 31,503 |
Federal funds sold and other short -term investments | 112,721 | 97,952 |
Cash and cash equivalents | 141,574 | 129,455 |
Interest-bearing time deposits in other financial institutions | 20,000 | 20,000 |
Securities available for sale, at fair value | 158,866 | 161,874 |
Securities held to maturity (fair value 2015 - $43,810 and 2014 - $31,428) | 43,229 | 31,585 |
Federal Home Loan Bank (FHLB) stock | 11,558 | 11,238 |
Loans held for sale, at fair value | 5,114 | 2,347 |
Total loans | 1,130,024 | 1,118,483 |
Allowance for loan losses | (18,181) | (18,962) |
Net loans | 1,111,843 | 1,099,521 |
Premises and equipment - net | 52,132 | 52,894 |
Accrued interest receivable | 3,633 | 3,399 |
Bank-owned life insurance | 28,528 | 28,195 |
Other real estate owned - net | 26,303 | 28,242 |
Net deferred tax asset | 10,935 | 12,265 |
Other assets | 4,299 | 2,831 |
Total assets | 1,618,014 | 1,583,846 |
Deposits | ||
Noninterest-bearing | 389,828 | 404,143 |
Interest-bearing | 937,985 | 902,182 |
Total deposits | 1,327,813 | 1,306,325 |
Other borrowed funds | 96,836 | 88,107 |
Long-term debt | 41,238 | 41,238 |
Accrued expenses and other liabilities | 5,284 | 5,657 |
Total liabilities | $ 1,471,171 | $ 1,441,327 |
Commitments and contingent liabilities | ||
Shareholders' equity | ||
Common stock, no par value, 200,000,000 shares authorized; 33,866,789 shares issued and outstanding at June 30, 2015 and December 31, 2014 | $ 216,422 | $ 216,460 |
Retained deficit | (69,629) | (74,002) |
Accumulated other comprehensive income | 50 | 61 |
Total shareholders' equity | 146,843 | 142,519 |
Total liabilities and shareholders' equity | $ 1,618,014 | $ 1,583,846 |
CONSOLIDATED BALANCE SHEETS (u3
CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Securities held to maturity fair value | $ 43,810 | $ 31,428 |
Shareholders' equity | ||
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) | 33,866,789 | 33,866,789 |
Common stock, shares outstanding (in shares) | 33,866,789 | 33,866,789 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Interest income | ||||
Loans, including fees | $ 11,152 | $ 10,547 | $ 22,115 | $ 21,491 |
Securities | ||||
Taxable | 501 | 499 | 1,002 | 998 |
Tax-exempt | 376 | 264 | 720 | 519 |
FHLB Stock | 111 | 104 | 228 | 260 |
Federal funds sold and other short-term investments | 98 | 114 | 184 | 230 |
Total interest income | 12,238 | 11,528 | 24,249 | 23,498 |
Interest expense | ||||
Deposits | 610 | 620 | 1,229 | 1,360 |
Other borrowings | 452 | 426 | 867 | 857 |
Subordinated and long-term debt | 331 | 326 | 656 | 650 |
Total interest expense | 1,393 | 1,372 | 2,752 | 2,867 |
Net interest income | 10,845 | 10,156 | 21,497 | 20,631 |
Provision for loan losses | (500) | (1,000) | (1,500) | (2,000) |
Net interest income after provision for loan losses | 11,345 | 11,156 | 22,997 | 22,631 |
Noninterest income | ||||
Service charges and fees | 1,097 | 1,065 | 2,098 | 2,056 |
Net gains on mortgage loans | 821 | 468 | 1,544 | 726 |
Trust fees | 723 | 701 | 1,457 | 1,332 |
ATM and debit card fees | 1,219 | 1,203 | 2,329 | 2,255 |
Gain on sales of securities | 0 | 41 | 83 | 51 |
Other | 652 | 590 | 1,296 | 1,158 |
Total noninterest income | 4,512 | 4,068 | 8,807 | 7,578 |
Noninterest expense | ||||
Salaries and benefits | 6,134 | 5,544 | 12,316 | 11,367 |
Occupancy of premises | 903 | 932 | 1,875 | 1,940 |
Furniture and equipment | 813 | 751 | 1,596 | 1,591 |
Legal and professional | 191 | 238 | 431 | 443 |
Marketing and promotion | 263 | 272 | 568 | 552 |
Data processing | 648 | 583 | 1,226 | 1,172 |
FDIC assessment | 289 | 320 | 571 | 647 |
Interchange and other card expense | 285 | 265 | 560 | 537 |
Bond and D&O Insurance | 146 | 163 | 292 | 327 |
Net (gains) losses on repossessed and foreclosed properties | (31) | 371 | 420 | 185 |
Administration and disposition of problem assets | 284 | 516 | 660 | 1,172 |
Other | 1,297 | 1,283 | 2,569 | 2,475 |
Total noninterest expenses | 11,222 | 11,238 | 23,084 | 22,408 |
Income before income tax | 4,635 | 3,986 | 8,720 | 7,801 |
Income tax expense | 1,420 | 1,231 | 2,665 | 2,408 |
Net income | $ 3,215 | $ 2,755 | $ 6,055 | $ 5,393 |
Basic earnings per common share (in dollars per share) | $ 0.09 | $ 0.08 | $ 0.18 | $ 0.16 |
Diluted earnings per common share (in dollars per share) | 0.09 | 0.08 | 0.18 | 0.16 |
Cash dividends per common share (in dollars per share) | $ 0.03 | $ 0.02 | $ 0.05 | $ 0.04 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) [Abstract] | ||||
Net income | $ 3,215 | $ 2,755 | $ 6,055 | $ 5,393 |
Unrealized gains: | ||||
Net change in unrealized gains (losses) on securities available for sale | (1,214) | 1,190 | 67 | 2,334 |
Tax effect | 425 | (416) | (24) | (817) |
Net change in unrealized gains (losses) on securities available for sale, net of tax | (789) | 774 | 43 | 1,517 |
Less: reclassification adjustments: | ||||
Reclassification for gains included in net income | 0 | 41 | 83 | 51 |
Tax effect | 0 | (14) | (29) | (18) |
Reclassification for gains included in net income, net of tax | 0 | 27 | 54 | 33 |
Other comprehensive income, net of tax | (789) | 747 | (11) | 1,484 |
Comprehensive income | $ 2,426 | $ 3,502 | $ 6,044 | $ 6,877 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Retained Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance at Dec. 31, 2013 | $ 216,263 | $ (81,786) | $ (1,955) | $ 132,522 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 5,393 | 5,393 | ||
Common stock issuance costs | (102) | (102) | ||
Cash dividends per share | (1,352) | (1,352) | ||
Net change in unrealized gain (loss) on securities available for sale, net of tax | 1,484 | 1,484 | ||
Stock compensation expense | 147 | 147 | ||
Balance at Jun. 30, 2014 | 216,308 | (77,745) | (471) | 138,092 |
Balance at Dec. 31, 2014 | 216,460 | (74,002) | 61 | 142,519 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 6,055 | 6,055 | ||
Common stock issuance costs | 0 | |||
Cash dividends per share | (1,682) | (1,682) | ||
Net change in unrealized gain (loss) on securities available for sale, net of tax | (11) | (11) | ||
Tax effect of expired common stock warrants | (280) | (280) | ||
Stock compensation expense | 242 | 242 | ||
Balance at Jun. 30, 2015 | $ 216,422 | $ (69,629) | $ 50 | $ 146,843 |
CONSOLIDATED STATEMENTS OF CHA7
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Cash dividend per share (in dollars per share) | $ 0.03 | $ 0.02 | $ 0.05 | $ 0.04 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities | ||
Net income | $ 6,055 | $ 5,393 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation and amortization | 1,522 | 1,558 |
Stock compensation expense | 242 | 147 |
Tax effect of expired common stock warrants | (280) | 0 |
Provision for loan losses | (1,500) | (2,000) |
Origination of loans for sale | (51,416) | (26,760) |
Proceeds from sales of loans originated for sale | 50,193 | 27,992 |
Net gains on mortgage loans | (1,544) | (726) |
Gain on sales of securities | (83) | (51) |
Write-down of other real estate | 624 | 661 |
Net gain on sales of other real estate | (205) | (476) |
Change in net deferred tax asset | 1,336 | 2,348 |
Change in accrued interest receivable and other assets | (1,702) | 249 |
Earnings in bank-owned life insurance | (333) | (328) |
Change in accrued expenses and other liabilities | (703) | 2,841 |
Net cash from operating activities | 2,206 | 10,848 |
Cash flows from investing activities | ||
Loan originations and payments, net | (12,264) | (2,175) |
Change in interest-bearing deposits in other financial institutions | 0 | (7,500) |
Purchases of securities available for sale | (19,604) | (21,210) |
Purchases of securities held to maturity | (11,826) | 0 |
Purchase FHLB stock | (320) | 0 |
Proceeds from: | ||
Maturities and calls of securities available for sale | 8,944 | 4,500 |
Sales of securities available for sale | 12,063 | 5,164 |
Principal paydowns on securities | 1,952 | 1,675 |
Sales of other real estate | 2,962 | 7,362 |
Additions to premises and equipment | (529) | (910) |
Net cash from investing activities | (18,622) | (13,094) |
Cash flows from financing activities | ||
Change in deposits | 21,488 | (34,010) |
Repayments of other borrowed funds | (1,271) | (1,217) |
Proceeds from other borrowed funds | 10,000 | 0 |
Cash dividends paid | (1,682) | (1,352) |
Common stock issuance costs | 0 | (102) |
Net cash from financing activities | 28,535 | (36,681) |
Net change in cash and cash equivalents | 12,119 | (38,927) |
Cash and cash equivalents at beginning of period | 129,455 | 156,892 |
Cash and cash equivalents at end of period | 141,574 | 117,965 |
Supplemental cash flow information | ||
Interest paid | 2,758 | 2,873 |
Income taxes paid | 3,675 | 50 |
Supplemental noncash disclosures: | ||
Transfers from loans to other real estate | 1,442 | 2,274 |
Security settlement | $ (330) | $ (553) |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2015 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of 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: Operating results for the three and six month periods ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. 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, 2014. Use of Estimates 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 June 30, 2015, 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 Income Taxes 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. Derivatives Reclassifications: Adoption of New Accounting Standards The Financial Accounting Standards Board (“FASB”) has issued Accounting Standards Update (ASU) No. 2014-04, Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40) - Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure a b FASB issued ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. FASB issued ASU 2014-14, Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure. Newly Issued Not Yet Effective Standards: FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). Other Assets and Deferred Costs: Contracts with Customers FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs FASB issued ASU 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement |
SECURITIES
SECURITIES | 6 Months Ended |
Jun. 30, 2015 | |
SECURITIES [Abstract] | |
SECURITIES | NOTE 2 – SECURITIES The amortized cost and fair value of securities at period-end were as follows (dollars in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2015 Available for Sale: U.S. Treasury and federal agency securities $ 70,725 92 (276 ) $ 70,541 U.S. Agency MBS and CMOs 14,808 55 (89 ) 14,774 Tax-exempt state and municipal bonds 34,903 279 (285 ) 34,897 Taxable state and municipal bonds 24,148 316 (39 ) 24,425 Corporate bonds and other debt securities 12,705 44 (17 ) 12,732 Other equity securities 1,500 --- (3 ) 1,497 $ 158,789 $ 786 $ (709 ) $ 158,866 Held to Maturity Tax-exempt state and municipal bonds $ 43,229 $ 584 $ (3 ) $ 43,810 December 31, 2014 Available for Sale: U.S. Treasury and federal agency securities $ 67,612 $ 53 $ (501 ) $ 67,164 U. S. Agency MBS and CMOs 16,692 67 (71 ) 16,688 Tax-exempt state and municipal bonds 37,203 419 (161 ) 37,461 Taxable state and municipal bonds 25,012 351 (70 ) 25,293 Corporate bonds and other debt securities 13,762 34 (30 ) 13,766 Other equity securities 1,500 2 --- 1,502 $ 161,781 $ 926 $ (833 ) $ 161,874 Held to Maturity: Tax-exempt state and municipal bonds $ 31,585 $ 64 $ (221 ) $ 31,428 There were no sales of securities in the three month period ended June 30, 2015. Proceeds from the sale of securities available for sale were $12.1 million in the six month period ended June 30, 2015 resulting in net gains on sale of $83,000, as reported in the Consolidated Statements of Income. This resulted in reclassifications of $83,000 ($54,000 net of tax) from accumulated other comprehensive income to gain on sale of securities in the Consolidated Statements of Income in the six month period ended June 30, 2015. Proceeds from the sale of securities available for sale were $4.6 million in the three month period ended June 30, 2014 and $5.2 million in the six month period ended June 30, 2014 resulting in net gains on sale of $41,000 and $51,000, respectively, as reported in the Consolidated Statements of Income. This resulted in reclassifications of $41,000 ($27,000 net of tax) and $51,000 ($33,000 net of tax) from accumulated other comprehensive income to gain on sale of securities in the Consolidated Statements of Income in the three and six month periods ended June 30, 2014. Contractual maturities of debt securities at June 30, 2015 were as follows (dollars in thousands): Held–to-Maturity Securities Available-for-Sale Securities Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 21,004 $ 21,015 $ 5,404 $ 5,448 Due from one to five years 8,312 8,481 94,430 94,614 Due from five to ten years 13,813 14,211 40,081 39,935 Due after ten years 100 103 17,374 17,372 $ 43,229 $ 43,810 $ 157,289 $ 157,369 Securities with unrealized losses at June 30, 2015 and December 31, 2014, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows (dollars in thousands): Less than 12 Months 12 Months or More Total June 30, 2015 Fair Unrealized Fair Unrealized Fair Unrealized U.S. Treasury and federal agency securities $ 28,741 $ (109 ) $ 17,751 $ (167 ) $ 46,492 $ (276 ) U.S. Agency MBS and CMOs 8,969 (83 ) 985 (6 ) 9,954 (89 ) Tax-exempt state and municipal bonds 14,656 (197 ) 1,977 (88 ) 16,633 (285 ) Taxable state and municipal bonds 5,480 (28 ) 1,195 (14 ) 6,675 (42 ) Corporate bonds and other debt securities 3,573 (13 ) 498 (4 ) 4,071 (17 ) Other equity securities 1,500 (3 ) --- --- 1,500 (3 ) Total temporarily impaired $ 62,919 $ (433 ) $ 22,406 $ (279 ) $ 85,325 $ (712 ) Less than 12 Months 12 Months or More Total December 31, 2014 Fair Unrealized Fair Unrealized Fair Unrealized U.S. Treasury and federal agency securities $ 16,426 $ (45 ) $ 35,350 $ (456 ) $ 51,776 $ (501 ) U.S. Agency MBS and CMOs --- --- 9,732 (71 ) 9,732 (71 ) Tax-exempt state and municipal bonds 26,820 (264 ) 4,545 (118 ) 31,365 (382 ) Taxable state and municipal bonds 3,982 (19 ) 3,240 (51 ) 7,222 (70 ) Corporate bonds and other debt securities 4,187 (13 ) 1,988 (17 ) 6,175 (30 ) Other equity securities --- --- --- --- --- --- Total temporarily impaired $ 51,415 $ (341 ) $ 54,855 $ (713 ) $ 106,270 $ (1,054 ) 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 the unrealized losses for each period were attributable to changes in interest rates and not due to credit quality. As such, no OTTI charges were necessary during the three and six month periods ended June 30, 2015 and 2014. Securities with a carrying value of approximately $1.0 million were pledged as security for public deposits, letters of credit and for other purposes required or permitted by law at June 30, 2015 and December 31, 2014. |
LOANS
LOANS | 6 Months Ended |
Jun. 30, 2015 | |
LOANS [Abstract] | |
LOANS | NOTE 3 – LOANS Portfolio loans were as follows (dollars in thousands): June 30, 2015 December 31, 2014 Commercial and industrial $ 350,202 $ 327,674 Commercial real estate: Residential developed 10,664 12,771 Unsecured to residential developers 7,627 7,496 Vacant and unimproved 44,108 50,372 Commercial development 1,804 4,082 Residential improved 68,591 69,612 Commercial improved 270,145 269,757 Manufacturing and industrial 71,466 76,441 Total commercial real estate 474,405 490,531 Consumer Residential mortgage 199,972 190,249 Unsecured 764 948 Home equity 95,042 98,887 Other secured 9,639 10,194 Total consumer 305,417 300,278 Total loans 1,130,024 1,118,483 Allowance for loan losses (18,181 ) (18,962 ) $ 1,111,843 $ 1,099,521 Activity in the allowance for loan losses by portfolio segment was as follows (dollars in thousands): Three months ended June 30, 2015 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 6,174 $ 8,570 $ 3,907 $ 29 $ 18,680 Charge-offs (173 ) --- (29 ) --- (202 ) Recoveries 44 117 42 --- 203 Provision for loan losses 336 (748 ) (89 ) 1 (500 ) Ending Balance $ 6,381 $ 7,939 $ 3,831 $ 30 $ 18,181 Three months ended June 30, 2014 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 6,087 $ 10,372 $ 3,875 $ 49 $ 20,383 Charge-offs --- (23 ) (69 ) --- (92 ) Recoveries 327 363 68 --- 758 Provision for loan losses 307 (1,371 ) 59 5 (1,000 ) Ending Balance $ 6,721 $ 9,341 $ 3,933 $ 54 $ 20,049 Six months ended June 30, 2015 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 6,173 $ 8,690 $ 4,046 $ 53 $ 18,962 Charge-offs (173 ) --- (107 ) --- (280 ) Recoveries 128 725 146 --- 999 Provision for loan losses 253 (1,476 ) (254 ) (23 ) (1,500 ) Ending Balance $ 6,381 $ 7,939 $ 3,831 $ 30 $ 18,181 Six months ended June 30, 2014 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 6,174 $ 10,868 $ 3,703 $ 53 $ 20,798 Charge-offs (39 ) (23 ) (112 ) --- (174 ) Recoveries 366 953 106 --- 1,425 Provision for loan losses 220 (2,457 ) 236 1 (2,000 ) Ending Balance $ 6,721 $ 9,341 $ 3,933 $ 54 $ 20,049 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): June 30, 2015 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Allowance for loan losses: Ending allowance attributable to loans: Individually reviewed for impairment $ 2,451 $ 610 $ 926 $ --- $ 3,987 Collectively evaluated for impairment 3,930 7,329 2,905 30 14,194 Total ending allowance balance $ 6,381 $ 7,939 $ 3,831 $ 30 $ 18,181 Loans: Individually reviewed for impairment $ 5,405 $ 27,131 $ 14,420 $ --- $ 46,956 Collectively evaluated for impairment 344,797 447,274 290,997 --- 1,083,068 Total ending loans balance $ 350,202 $ 474,405 $ 305,417 $ --- $ 1,130,024 December 31, 2014 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Allowance for loan losses: Ending allowance attributable to loans: Individually reviewed for impairment $ 2,429 $ 743 $ 893 $ --- $ 4,065 Collectively evaluated for impairment 3,744 7,947 3,153 53 14,897 Total ending allowance balance $ 6,173 $ 8,690 $ 4,046 $ 53 $ 18,962 Loans: Individually reviewed for impairment $ 9,084 $ 29,818 $ 14,495 $ --- $ 53,397 Collectively evaluated for impairment 318,590 460,713 285,783 --- 1,065,086 Total ending loans balance $ 327,674 $ 490,531 $ 300,278 $ --- $ 1,118,483 The following table presents loans individually evaluated for impairment by class of loans as of June 30, 2015 (dollars in thousands): June 30, 2015 Unpaid Principal Balance Recorded Investment Allowance Allocated With no related allowance recorded: Commercial and industrial $ 385 $ 385 $ --- Commercial real estate: Residential developed 126 126 --- Unsecured to residential developers --- --- --- Vacant and unimproved --- --- --- Commercial development --- --- --- Residential improved 547 547 --- Commercial improved 331 331 --- Manufacturing and industrial 206 206 --- 1,210 1,210 --- Consumer: Residential mortgage --- --- --- Unsecured --- --- --- Home equity --- --- --- Other secured --- --- --- --- --- --- $ 1,595 $ 1,595 $ --- With an allowance recorded: Commercial and industrial $ 5,020 $ 5,020 $ 2,451 Commercial real estate: Residential developed 470 470 31 Unsecured to residential developers --- --- --- Vacant and unimproved 1,401 1,401 34 Commercial development 194 194 5 Residential improved 6,124 6,124 178 Commercial improved 15,307 15,307 342 Manufacturing and industrial 2,425 2,425 20 25,921 25,921 610 Consumer: Residential mortgage 9,030 9,030 556 Unsecured --- --- --- Home equity 5,390 5,390 370 Other secured --- --- --- 14,420 14,420 926 $ 45,361 $ 45,361 $ 3,987 Total $ 46,956 $ 46,956 $ 3,987 The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2014 (dollars in thousands): December 31, 2014 Unpaid Principal Balance Recorded Investment Allowance Allocated With no related allowance recorded: Commercial and industrial $ 3,019 $ 3,019 $ --- Commercial real estate: Residential developed 531 531 --- Unsecured to residential developers --- --- --- Vacant and unimproved --- --- --- Commercial development --- --- --- Residential improved 547 547 --- Commercial improved 331 331 --- Manufacturing and industrial 206 206 --- 1,615 1,615 --- Consumer: Residential mortgage --- --- --- Unsecured --- --- --- Home equity --- --- --- Other secured --- --- --- --- --- --- $ 4,634 $ 4,634 $ --- With an allowance recorded: Commercial and industrial $ 6,065 $ 6,065 $ 2,429 Commercial real estate: Residential developed 550 550 35 Unsecured to residential developers --- --- --- Vacant and unimproved 1,499 1,499 43 Commercial development 199 199 5 Residential improved 7,323 7,323 240 Commercial improved 16,113 16,113 389 Manufacturing and industrial 2,519 2,519 31 28,203 28,203 743 Consumer: Residential mortgage 9,492 9,484 584 Unsecured --- --- --- Home equity 5,182 5,011 309 Other secured --- --- --- 14,674 14,495 893 $ 48,942 $ 48,763 $ 4,065 Total $ 53,576 $ 53,397 $ 4,065 The following table presents information regarding average balances of impaired loans and interest recognized on impaired loans for the three and six month periods ended June 30, 2015 and 2014 (dollars in thousands): Three Months Ended June 30, 2015 Three Months Ended June 30, 2014 Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 Average of impaired loans during the period: Commercial and industrial $ 7,084 $ 11,908 $ 8,394 $ 13,096 Commercial real estate: Residential developed 682 4,085 810 4,308 Unsecured to residential developers --- --- --- --- Vacant and unimproved 1,416 1,650 1,453 1,735 Commercial development 195 483 196 505 Residential improved 7,018 9,863 7,340 10,141 Commercial improved 16,363 18,133 16,561 18,212 Manufacturing and industrial 2,650 6,404 2,678 6,562 Consumer 14,583 14,400 14,683 14,408 Interest income recognized during impairment: Commercial and industrial 292 273 618 611 Commercial real estate 336 454 692 907 Consumer 128 137 264 269 Cash-basis interest income recognized Commercial and industrial 292 276 620 615 Commercial real estate 334 471 685 922 Consumer 128 137 267 271 Nonaccrual loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of June 30, 2015 and December 31, 2014: June 30, 2015 Nonaccrual Over 90 days Accruing Commercial and industrial $ 2,392 $ --- Commercial real estate: Residential developed 174 --- Unsecured to residential developers --- --- Vacant and unimproved --- --- Commercial development 49 --- Residential improved 589 --- Commercial improved 376 --- Manufacturing and industrial --- --- 1,188 --- Consumer: Residential mortgage 2 --- Unsecured 34 --- Home equity 11 72 Other secured 17 --- 64 72 Total $ 3,644 $ 72 December 31, 2014 Nonaccrual Over 90 days Accruing Commercial and industrial $ 5,605 $ --- Commercial real estate: Residential developed 245 --- Unsecured to residential developers --- --- Vacant and unimproved --- --- Commercial development 29 --- Residential improved 766 --- Commercial improved 866 117 Manufacturing and industrial --- --- 1,906 117 Consumer: Residential mortgage 305 --- Unsecured 40 --- Home equity 436 17 Other secured --- --- 781 17 Total $ 8,292 $ 134 The following tables present the aging of the recorded investment in past due loans as of June 30, 2015 and December 31, 2014 by class of loans (dollars in thousands): June 30, 2015 30-90 Greater Than Total Loans Not Total Commercial and industrial $ 124 $ 6 $ 130 $ 350,072 $ 350,202 Commercial real estate: Residential developed --- --- --- 10,664 10,664 Unsecured to residential developers --- --- --- 7,627 7,627 Vacant and unimproved --- --- --- 44,108 44,108 Commercial development --- 49 49 1,755 1,804 Residential improved 20 440 460 68,131 68,591 Commercial improved 682 197 879 269,266 270,145 Manufacturing and industrial --- --- --- 71,466 71,466 702 686 1,388 473,017 474,405 Consumer: Residential mortgage 234 --- 234 199,738 199,972 Unsecured 16 --- 16 748 764 Home equity 29 72 101 94,941 95,042 Other secured --- 17 17 9,622 9,639 279 89 368 305,049 305,417 Total $ 1,105 $ 781 $ 1,886 $ 1,128,138 $ 1,130,024 December 31, 2014 30-90 Greater Than Total Loans Not Total Commercial and industrial $ 54 $ --- $ 54 $ 327,620 $ 327,674 Commercial real estate: Residential developed --- --- --- 12,771 12,771 Unsecured to residential developers --- --- --- 7,496 7,496 Vacant and unimproved 100 --- 100 50,272 50,372 Commercial development --- 29 29 4,053 4,082 Residential improved 100 440 540 69,072 69,612 Commercial improved --- 958 958 268,799 269,757 Manufacturing and industrial --- --- --- 76,441 76,441 200 1,427 1,627 488,904 490,531 Consumer: Residential mortgage 338 303 641 189,608 190,249 Unsecured --- 18 18 930 948 Home equity 79 422 501 98,386 98,887 Other secured --- --- --- 10,194 10,194 417 743 1,160 299,118 300,278 Total $ 671 $ 2,170 $ 2,841 $ 1,115,642 $ 1,118,483 The Company had allocated $3,987,000 and $4,065,000 of specific reserves to customers whose loan terms have been modified in troubled debt restructurings (“TDRs”) as of June 30, 2015 and December 31, 2014, respectively. These loans may have 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 restructuring 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. Based upon recently issued regulatory guidance, the Company has determined that in situations where there is a subsequent modification or renewal and the loan is brought to market terms, including a contractual interest rate not less than a market interest rate for new debt with similar credit risk characteristics, the TDR and impaired loan designations may be removed. This guidance was first applied to loans outstanding at September 30, 2014 resulting in a reduction of $5.9 million in loans designated as TDR and impaired. In addition, the TDR designation may also be removed from loans 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 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. 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, less estimated costs to sell. 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 June 30, 2015 and December 31, 2014 (dollars in thousands): June 30, 2015 December 31, 2014 Number of Loans Outstanding Recorded Balance Number of Loans Outstanding Recorded Balance Commercial and industrial 36 $ 5,405 36 $ 9,085 Commercial real estate 74 27,131 84 29,817 Consumer 132 14,420 106 14,495 242 $ 46,956 226 $ 53,397 The following table presents information related to accruing troubled debt restructurings as of June 30, 2015 and December 31, 2014. The table presents the amount of accruing troubled debt restructurings that were on nonaccrual status prior to the restructuring, accruing at the time of restructuring and those that were upgraded to accruing status after receiving six consecutive monthly payments in accordance with the restructured terms as of each period reported (dollars in thousands): June 30, December 31, Accruing TDR - nonaccrual at restructuring $ --- $ --- Accruing TDR - accruing at restructuring 43,617 46,197 Accruing TDR - upgraded to accruing after six consecutive payments --- --- $ 43,617 $ 46,197 The following tables present information regarding troubled debt restructurings executed during the three and six month periods ended June 30, 2015 and 2014 (dollars in thousands): Three Months Ended June 30, 2015 Number of Loans Pre-Modification Outstanding Recorded Balance Principal Writedown upon Modification Commercial and industrial --- $ --- $ --- Commercial real estate --- --- --- Consumer 2 72 --- 2 $ 72 $ --- Three Months Ended June 30, 2014 Number of Loans Pre-Modification Outstanding Recorded Balance Principal Writedown upon Modification Commercial and industrial --- $ --- $ --- Commercial real estate 6 1,783 --- Consumer 1 70 --- 7 $ 1,853 $ --- Six Months Ended June 30, 2015 Number of Loans Pre-Modification Outstanding Recorded Balance Principal Writedown upon Modification Commercial and industrial 1 $ 408 $ --- Commercial real estate 1 42 --- Consumer 31 753 --- 33 $ 1,203 $ --- Six Months Ended June 30, 2014 Number of Loans Pre-Modification Outstanding Recorded Balance Principal Writedown upon Modification Commercial and industrial 1 $ 60 $ --- Commercial real estate 10 4,046 --- Consumer 2 74 --- 13 $ 4,180 $ --- 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. As with other loans not considered TDR or impaired, allowance allocations are based on the historical based allocation for the applicable loan grade and loan class. The tables below present, by class, information regarding troubled debt restructured loans which had payment defaults during the three and six month periods ended June 30, 2015 and 2014 (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 Number of Loans Outstanding Recorded Balance Number of Loans Outstanding Recorded Balance Commercial and industrial --- $ --- --- $ --- Commercial real estate --- --- --- --- Consumer --- --- --- --- Six Months Ended Six Months Ended Number of Loans Outstanding Recorded Balance Number of Loans Outstanding Recorded Balance Commercial and industrial --- $ --- --- $ --- Commercial real estate --- --- 1 131 Consumer --- --- --- --- Credit Quality Indicators: 1. Excellent 2. Above Average 3. Good Quality 4. Acceptable Risk 5. Marginally Acceptable 6. Substandard 7. Doubtful 8. Loss As of June 30, 2015 and December 31, 2014, the risk grade category of commercial loans by class of loans were as follows (dollars in thousands): June 30, 2015 1 2 3 4 5 6 7 8 Total Commercial and industrial $ 239 $ 10,932 $ 133,304 $ 192,471 $ 9,845 $ 1,019 $ 2,392 $ --- $ 350,202 Commercial real estate: Residential developed --- --- 2,204 4,917 2,563 806 174 --- 10,664 Unsecured to residential developers --- --- --- 7,627 --- --- --- --- 7,627 Vacant and unimproved --- --- 15,701 21,548 6,859 --- --- --- 44,108 Commercial development --- --- --- 1,362 199 194 49 --- 1,804 Residential improved --- --- 16,155 44,748 5,283 1,816 589 --- 68,591 Commercial improved --- 4,782 56,518 184,891 21,022 2,556 376 --- 270,145 Manufacturing & industrial --- 1,196 28,190 37,096 4,663 321 --- --- 71,466 $ 239 $ 16,910 $ 252,072 $ 494,660 $ 50,434 $ 6,712 $ 3,580 $ --- $ 824,607 December 31, 2014 1 2 3 4 5 6 7 8 Total Commercial and industrial $ 343 $ 11,177 $ 118,382 $ 182,651 $ 8,448 $ 1,068 $ 5,605 $ --- $ 327,674 Commercial real estate: Residential developed --- --- 2,491 4,702 4,491 842 245 --- 12,771 Unsecured to residential developers --- --- --- 7,496 --- --- --- --- 7,496 Vacant and unimproved --- --- 12,105 30,997 7,241 29 --- --- 50,372 Commercial development --- --- --- 3,643 211 199 29 --- 4,082 Residential improved --- 103 16,291 43,928 6,428 2,096 766 --- 69,612 Commercial improved --- 4,392 61,543 178,169 20,558 4,229 866 --- 269,757 Manufacturing & industrial --- 1,508 27,396 42,494 4,713 330 --- --- 76,441 $ 343 $ 17,180 $ 238,208 $ 494,080 $ 52,090 $ 8,793 $ 7,511 $ --- $ 818,205 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): June 30, December 31, Not classified as impaired $ 1,891 $ 4,220 Classified as impaired 8,401 12,084 Total commercial loans classified substandard or worse $ 10,292 $ 16,304 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): June 30, 2015 Residential Consumer Home Consumer Performing $ 199,972 $ 764 $ 94,970 $ 9,622 Nonperforming --- --- 72 17 Total $ 199,972 $ 764 $ 95,042 $ 9,639 December 31, 2014 Residential Consumer Home Consumer Performing $ 189,946 $ 930 $ 98,465 $ 10,194 Nonperforming 303 18 422 --- Total $ 190,249 $ 948 $ 98,887 $ 10,194 |
OTHER REAL ESTATE OWNED
OTHER REAL ESTATE OWNED | 6 Months Ended |
Jun. 30, 2015 | |
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): Six Year Six Beginning balance $ 43,071 $ 53,501 $ 53,501 Additions, transfers from loans 1,442 4,932 2,274 Proceeds from sales of other real estate owned (2,962 ) (12,487 ) (7,362 ) Valuation allowance reversal upon sale (427 ) (3,499 ) (2,564 ) Gain (loss) on sale of other real estate owned 205 624 476 41,329 43,071 46,325 Less: valuation allowance (15,026 ) (14,829 ) (14,802 ) Ending balance $ 26,303 $ 28,242 $ 31,523 Activity in the valuation allowance was as follows (dollars in thousands): Six Months Six Months Beginning balance $ 14,829 $ 16,705 Additions charged to expense 624 661 Reversals upon sale (427 ) (2,564 ) Ending balance $ 15,026 $ 14,802 |
FAIR VALUE
FAIR VALUE | 6 Months Ended |
Jun. 30, 2015 | |
FAIR VALUE [Abstract] | |
FAIR VALUE | NOTE 5 – FAIR VALUE ASC Topic 820, Fair Value Measurements and Disclosures 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: Loans Held for Sale: Impaired Loans Other Real Estate Owned Interest Rate Swaps: For interest rate swap agreements, we measure fair value utilizing pricing provided by a third-party pricing source that that uses market observable inputs, such as forecasted yield curves, and other unobservable inputs and accordingly, interest rate swap agreements are classified as Level 3. Assets measured at fair value on a recurring basis are summarized below (in thousands): Fair Quoted Prices in Active Markets for Identical Assets Significant Other Observable Significant Unobservable Inputs June 30, 2015 U.S. Treasury and federal agency securities $ 70,541 $ --- $ 70,541 $ --- U.S. Agency MBS and CMOs 14,774 --- 14,774 --- Tax-exempt state and municipal bonds 34,897 --- 34,897 --- Taxable state and municipal bonds 24,425 --- 24,425 --- Corporate bonds and other debt securities 12,732 --- 12,732 --- Other equity securities 1,497 --- 1,497 --- Loans held for sale 5,114 --- 5,114 --- Interest rate swaps 184 --- --- 184 Interest rate swaps (184 ) --- --- (184 ) December 31, 2014 U.S. Treasury and federal agency securities $ 67,164 $ --- $ 67,164 $ --- U.S. Agency MBS and CMOs 16,688 --- 16,688 --- Tax-exempt state and municipal bonds 37,461 --- 37,461 --- Taxable state and municipal bonds 25,293 --- 25,293 --- Corporate bonds and other debt securities 13,766 --- 13,766 --- Other equity securities 1,502 --- 1,502 --- Loans held for sale 2,347 --- 2,347 --- Interest rate swaps 140 --- --- 140 Interest rate swaps (140 ) --- --- (140 ) Assets measured at fair value on a non-recurring basis are summarized below (in thousands): Fair Quoted Prices in Active Markets for Identical Assets Significant Other Observable Significant Unobservable Inputs June 30, 2015 Impaired loans $ 7,779 $ --- $ --- $ 7,779 Other real estate owned 22,577 --- --- 22,577 December 31, 2014 Impaired loans $ 12,649 $ --- $ --- $ 12,649 Other real estate owned 22,472 --- --- 22,472 Quantitative information about Level 3 fair value measurements measured on a non-recurring basis were as follows at period end (dollars in thousands): Asset Valuation Unobservable Range (%) June 30, 2015 Impaired Loans $ 7,779 Sales comparison approach Adjustment for differences between comparable sales 1.0 to 20.0 Income approach Capitalization rate 9.5 to 11.0 Other real estate owned 22,577 Sales comparison approach Adjustment for differences between comparable sales 4.5 to 22.0 Income approach Capitalization rate 9.5 to 11.0 Asset Valuation Unobservable Range (%) December 31, 2014 Impaired Loans $ 12,649 Sales comparison approach Adjustment for differences between comparable sales 1.0 to 20.0 Income approach Capitalization rate 9.5 to 12.0 Other real estate owned 22,472 Sales comparison approach Adjustment for differences between comparable sales 3.0 to 22.7 Income approach Capitalization rate 9.5 to 12.0 The carrying amounts and estimated fair values of financial instruments, not previously presented, were as follows at June 30, 2015 and December 31, 2014 (dollars in thousands). Level in June 30, 2015 December 31, 2014 Fair Value Carrying Fair Carrying Fair Financial assets Cash and due from banks Level 1 $ 28,853 $ 28,853 $ 31,503 $ 31,503 Cash equivalents Level 2 112,721 112,721 97,952 97,952 Interest-bearing time deposits in other financial institutions Level 2 20,000 20,052 20,000 20,062 Securities held to maturity Level 3 43,229 43,810 31,585 31,428 FHLB stock 11,558 NA 11,238 NA Loans, net Level 2 1,104,063 1,097,584 1,086,872 1,082,675 Bank owned life insurance Level 3 28,528 28,528 28,195 28,195 Accrued interest receivable Level 2 3,633 3,633 3,399 3,399 Financial liabilities Deposits Level 2 (1,327,813 ) (1,327,724 ) (1,306,325 ) (1,306,671 ) Other borrowed funds Level 2 (96,836 ) (97,555 ) (88,107 ) (89,066 ) Long-term debt Level 2 (41,238 ) (35,626 ) (41,238 ) (35,396 ) Accrued interest payable Level 2 (283 ) (283 ) (289 ) (289 ) 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, 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, interest-bearing time deposits in other financial institutions, 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 | 6 Months Ended |
Jun. 30, 2015 | |
DEPOSITS [Abstract] | |
DEPOSITS | NOTE 6 – DEPOSITS Deposits are summarized as follows (in thousands): June 30, December 31, Noninterest-bearing demand $ 389,828 $ 404,143 Interest bearing demand 348,490 340,053 Savings and money market accounts 490,258 442,246 Certificates of deposit 99,237 119,883 $ 1,327,813 $ 1,306,325 Approximately $37.8 million and $50.1 million in certificates of deposit were in denominations of $100,000 or more at June 30, 2015 and December 31, 2014, respectively. |
OTHER BORROWED FUNDS
OTHER BORROWED FUNDS | 6 Months Ended |
Jun. 30, 2015 | |
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): Principal Terms Advance Range of Maturities Weighted June 30, 2015 Single maturity fixed rate advances $ 90,000 August 2016 to March 2020 1.69 % Amortizable mortgage advances 6,836 March 2018 to July 2018 3.76 % $ 96,836 Principal Terms Advance Range of Maturities Weighted Average December 31, 2014 Single maturity fixed rate advances $ 80,000 August 2016 to February 2019 1.69 % Amortizable mortgage advances 8,107 March 2018 to July 2018 3.78 % $ 88,107 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 $436,914,000 and $441,252,000 under a blanket lien arrangement at June 30, 2015 and December 31, 2014, respectively. Scheduled repayments of FHLB advances as of June 30, 2015 were as follows (in thousands): 2015 $ 667 2016 21,996 2017 2,055 2018 52,118 2019 10,000 Thereafter 10,000 $ 96,836 Federal Reserve Bank borrowings The Company has a financing arrangement with the Federal Reserve Bank. There were no borrowings outstanding at June 30, 2015 and December 31, 2014, and the Company had approximately $21.6 million and $22.8 million in unused borrowing capacity based on commercial and mortgage loans pledged to the Federal Reserve Bank totaling $24.2 million and $25.9 million at June 30, 2015 and December 31, 2014, respectively. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 6 Months Ended |
Jun. 30, 2015 | |
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 six month periods ended June 30, 2015 and 2014 are as follows (dollars in thousands, except per share data): Three Months Three Months Six Months Six Months Net income available to common shares $ 3,215 $ 2,755 $ 6,055 $ 5,393 Weighted average shares outstanding, including participating stock awards - 33,866,789 33,788,431 33,866,789 33,789,481 Dilutive potential common shares: Stock options --- --- --- --- Stock warrants --- --- --- --- Weighted average shares outstanding - 33,866,789 33,788,431 33,866,789 33,789,481 Basic earnings per common share $ 0.09 $ 0.08 $ 0.18 $ 0.16 Diluted earnings per common share $ 0.09 $ 0.08 $ 0.18 $ 0.16 Stock options for 258,361 shares of common stock for both the three and six month periods ended June 30, 2015 were not considered in computing diluted earnings per share because they were antidilutive. Stock options for 355,328 shares of common stock for both the three and six month periods ended June 30, 2014 were not considered in computing diluted earnings per share because they were antidilutive. |
FEDERAL INCOME TAXES
FEDERAL INCOME TAXES | 6 Months Ended |
Jun. 30, 2015 | |
FEDERAL INCOME TAXES [Abstract] | |
FEDERAL INCOME TAXES | NOTE 9 - FEDERAL INCOME TAXES Income tax expense was as follows (dollars in thousands): Three Months Three Months Six Months Six Months Current $ 676 $ 36 $ 1,329 $ 60 Deferred 744 1,195 1,336 2,348 $ 1,420 $ 1,231 $ 2,665 $ 2,408 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 Six Months Six Months Statutory rate 35 % 35 % 35 % 35 % Statutory rate applied to income before taxes $ 1,622 $ 1,395 $ 3,052 $ 2,730 Add (deduct) Tax-exempt interest income (127 ) (89 ) (244 ) (174 ) Bank-owned life insurance (60 ) (61 ) (117 ) (115 ) Other, net (15 ) (14 ) (26 ) (33 ) $ 1,420 $ 1,231 $ 2,665 $ 2,408 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. No valuation allowance was necessary at June 30, 2015 or December 31, 2014. The net deferred tax asset recorded included the following amounts of deferred tax assets and liabilities (dollars in thousands): June 30, December 31, Deferred tax assets Allowance for loan losses $ 6,363 $ 6,637 Nonaccrual loan interest 1,037 935 Valuation allowance on other real estate owned 5,259 5,190 Unrealized loss on securities available for sale --- --- Other 551 1,896 Gross deferred tax assets 13,210 14,658 Valuation allowance --- --- Total net deferred tax assets 13,210 14,658 Deferred tax liabilities Depreciation (1,792 ) (1,908 ) Prepaid expenses (21 ) (21 ) Unrealized gain on securities available for sale (27 ) (33 ) Other (435 ) (431 ) Gross deferred tax liabilities (2,275 ) (2,393 ) Net deferred tax asset $ 10,935 $ 12,265 There were no unrecognized tax benefits at June 30, 2015 or December 31, 2014 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 2012. |
COMMITMENTS AND OFF BALANCE-SHE
COMMITMENTS AND OFF BALANCE-SHEET RISK | 6 Months Ended |
Jun. 30, 2015 | |
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): June 30, December 31, Commitments to make loans $ 139,330 $ 81,274 Letters of credit 13,027 11,862 Unused lines of credit 391,015 389,099 The notional amount of commitments to fund mortgage loans to be sold into the secondary market was approximately $24.2 million and $14.2 million at June 30, 2015 and December 31, 2014, respectively. At June 30, 2015, approximately 43.7% 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 prime and generally expire within 30 days. The majority of the unused lines of credit were at variable rates tied to prime. |
CONTINGENCIES
CONTINGENCIES | 6 Months Ended |
Jun. 30, 2015 | |
CONTINGENCIES [Abstract] | |
CONTINGENCIES | NOTE 11 – CONTINGENCIES The Company and its subsidiaries periodically become defendants in certain claims and legal actions arising in the ordinary course of business. On January 27, 2014, the Company’s former Chairman and Chief Executive Officer, Mr. Benj. A. Smith III, commenced legal action against the Company claiming that the Company breached an alleged employment agreement pursuant to which he claimed entitlement to $20,833 monthly for a period of six years from the date of his resignation in February 2009. On February 10, 2015, the Company entered into a settlement agreement with Mr. Smith related to this litigation. A liability of $516,000, net of insurance proceeds, was accrued and the related expense was included in other noninterest expense at December 31, 2014. The amounts due were paid to Mr. Smith during the first quarter of 2015. As of June 30, 2015, 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. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2015 | |
SHAREHOLDERS' EQUITY [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 12 – SHAREHOLDERS' EQUITY 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. In July 2013, the Board of Governors of the Federal Reserve Board and the FDIC approved the final rules implementing the Basel Committee on Banking Supervision's capital guidelines for U.S. banks (commonly known as Basel III). Under the final rules, which began for the Company and the Bank on January 1, 2015 and are subject to a phase-in period through January 1, 2019, minimum requirements will increase for both the quantity and quality of capital held by the Company and the Bank. The rules include a new common equity Tier 1 capital to risk-weighted assets ratio (CET1 ratio) of 4.5% and a capital conservation buffer of 2.5% of risk-weighted assets, which when fully phased-in, effectively results in a minimum CET1 ratio of 7.0%. Basel III raises the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0% to 6.0% (which, with the capital conservation buffer, effectively results in a minimum Tier 1 capital ratio of 8.5% when fully phased-in), effectively results in a minimum total capital to risk-weighted assets ratio of 10.5% (with the capital conservation buffer fully phased-in), and requires a minimum leverage ratio of 4.0%. Basel III also makes changes to risk weights for certain assets and off-balance-sheet exposures. At June 30, 2015 and December 31, 2014, actual capital levels and minimum required levels were (dollars in thousands): Actual Minimum Required To Be Well Amount Ratio Amount Ratio Amount Ratio June 30, 2015 CET1 capital (to risk weighted assets) Consolidated $ 146,392 10.9 % $ 60,626 4.5 % N/A N/A Bank 181,020 13.4 60,615 4.5 $ 87,555 6.5 % Tier 1 capital (to risk weighted assets) Consolidated 186,392 13.8 80,834 6.0 N/A N/A Bank 181,020 13.4 80,820 6.0 107,759 8.0 Total capital (to risk weighted assets) Consolidated 203,249 15.1 107,779 8.0 N/A N/A Bank 197,874 14.7 107,759 8.0 134,699 10.0 Tier 1 capital (to average assets) Consolidated 186,392 11.7 63,720 4.0 N/A N/A Bank 181,020 11.4 63,650 4.0 79,563 5.0 December 31, 2014 Tier 1 capital (to risk weighted assets) Consolidated $ 174,084 14.3 % $ 48,706 4.0 % N/A N/A Bank 170,983 14.0 48,788 4.0 $ 73,182 6.0 % Total capital (to risk weighted assets) Consolidated 189,353 15.6 97,420 8.0 N/A N/A Bank 186,276 15.3 97,575 8.0 121,969 10.0 Tier 1 capital (to average assets) Consolidated 174,084 11.6 59,998 4.0 N/A N/A Bank 170,983 11.4 59,923 4.0 74,904 5.0 Approximately $40.0 million of trust preferred securities outstanding at June 30, 2015 and December 31, 2014, respectively, qualified as Tier 1 capital. Refer to our 2014 Form 10-K for more information on the trust preferred securities. The Bank was categorized as "well capitalized" at June 30, 2015 and December 31, 2014. Warrants In 2009 the Company and Macatawa Bank entered into a Settlement and Release and Stock and Warrant Issuance Agreement in connection with legal proceedings related to Trade Partners, Inc. In connection with the Settlement, the Company issued warrants to purchase a total of 1,478,811 shares of common stock at an exercise price of $9.00 per share. The fair value of the warrants issued was $806,000 and was recorded in Common Stock based upon $0.54 per warrant as determined using a Black-Scholes model. The warrants were issued in two issuances. 1,361,753 warrants were issued on June 18, 2009 and these warrants expired on June 17, 2015 (five years after commencement of exercise period), with 392 warrants having been executed during the exercise period. The remaining warrants expired unused. 117,058 warrants were issued on July 28, 2009 and these warrants expire on July 27, 2015 (five years after commencement of exercise period). |
SUMMARY OF SIGNIFICANT ACCOUN21
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Principles of Consolidation | Principles of 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: Operating results for the three and six month periods ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. 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, 2014. |
Use of Estimates | Use of Estimates |
Allowance for Loan Losses | 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 June 30, 2015, 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 |
Income Taxes | Income Taxes 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. |
Derivatives | Derivatives |
Reclassifications | Reclassifications: |
New Accounting Standards | Adoption of New Accounting Standards The Financial Accounting Standards Board (“FASB”) has issued Accounting Standards Update (ASU) No. 2014-04, Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40) - Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure a b FASB issued ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. FASB issued ASU 2014-14, Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure. Newly Issued Not Yet Effective Standards: FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). Other Assets and Deferred Costs: Contracts with Customers FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs FASB issued ASU 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement |
SECURITIES (Tables)
SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2015 Available for Sale: U.S. Treasury and federal agency securities $ 70,725 92 (276 ) $ 70,541 U.S. Agency MBS and CMOs 14,808 55 (89 ) 14,774 Tax-exempt state and municipal bonds 34,903 279 (285 ) 34,897 Taxable state and municipal bonds 24,148 316 (39 ) 24,425 Corporate bonds and other debt securities 12,705 44 (17 ) 12,732 Other equity securities 1,500 --- (3 ) 1,497 $ 158,789 $ 786 $ (709 ) $ 158,866 Held to Maturity Tax-exempt state and municipal bonds $ 43,229 $ 584 $ (3 ) $ 43,810 December 31, 2014 Available for Sale: U.S. Treasury and federal agency securities $ 67,612 $ 53 $ (501 ) $ 67,164 U. S. Agency MBS and CMOs 16,692 67 (71 ) 16,688 Tax-exempt state and municipal bonds 37,203 419 (161 ) 37,461 Taxable state and municipal bonds 25,012 351 (70 ) 25,293 Corporate bonds and other debt securities 13,762 34 (30 ) 13,766 Other equity securities 1,500 2 --- 1,502 $ 161,781 $ 926 $ (833 ) $ 161,874 Held to Maturity: Tax-exempt state and municipal bonds $ 31,585 $ 64 $ (221 ) $ 31,428 |
Contractual maturities of debt securities | Contractual maturities of debt securities at June 30, 2015 were as follows (dollars in thousands): Held–to-Maturity Securities Available-for-Sale Securities Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 21,004 $ 21,015 $ 5,404 $ 5,448 Due from one to five years 8,312 8,481 94,430 94,614 Due from five to ten years 13,813 14,211 40,081 39,935 Due after ten years 100 103 17,374 17,372 $ 43,229 $ 43,810 $ 157,289 $ 157,369 |
Securities in continuous unrealized loss position | Securities with unrealized losses at June 30, 2015 and December 31, 2014, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows (dollars in thousands): Less than 12 Months 12 Months or More Total June 30, 2015 Fair Unrealized Fair Unrealized Fair Unrealized U.S. Treasury and federal agency securities $ 28,741 $ (109 ) $ 17,751 $ (167 ) $ 46,492 $ (276 ) U.S. Agency MBS and CMOs 8,969 (83 ) 985 (6 ) 9,954 (89 ) Tax-exempt state and municipal bonds 14,656 (197 ) 1,977 (88 ) 16,633 (285 ) Taxable state and municipal bonds 5,480 (28 ) 1,195 (14 ) 6,675 (42 ) Corporate bonds and other debt securities 3,573 (13 ) 498 (4 ) 4,071 (17 ) Other equity securities 1,500 (3 ) --- --- 1,500 (3 ) Total temporarily impaired $ 62,919 $ (433 ) $ 22,406 $ (279 ) $ 85,325 $ (712 ) Less than 12 Months 12 Months or More Total December 31, 2014 Fair Unrealized Fair Unrealized Fair Unrealized U.S. Treasury and federal agency securities $ 16,426 $ (45 ) $ 35,350 $ (456 ) $ 51,776 $ (501 ) U.S. Agency MBS and CMOs --- --- 9,732 (71 ) 9,732 (71 ) Tax-exempt state and municipal bonds 26,820 (264 ) 4,545 (118 ) 31,365 (382 ) Taxable state and municipal bonds 3,982 (19 ) 3,240 (51 ) 7,222 (70 ) Corporate bonds and other debt securities 4,187 (13 ) 1,988 (17 ) 6,175 (30 ) Other equity securities --- --- --- --- --- --- Total temporarily impaired $ 51,415 $ (341 ) $ 54,855 $ (713 ) $ 106,270 $ (1,054 ) |
LOANS (Tables)
LOANS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
LOANS [Abstract] | |
Portfolio loans | Portfolio loans were as follows (dollars in thousands): June 30, 2015 December 31, 2014 Commercial and industrial $ 350,202 $ 327,674 Commercial real estate: Residential developed 10,664 12,771 Unsecured to residential developers 7,627 7,496 Vacant and unimproved 44,108 50,372 Commercial development 1,804 4,082 Residential improved 68,591 69,612 Commercial improved 270,145 269,757 Manufacturing and industrial 71,466 76,441 Total commercial real estate 474,405 490,531 Consumer Residential mortgage 199,972 190,249 Unsecured 764 948 Home equity 95,042 98,887 Other secured 9,639 10,194 Total consumer 305,417 300,278 Total loans 1,130,024 1,118,483 Allowance for loan losses (18,181 ) (18,962 ) $ 1,111,843 $ 1,099,521 |
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): Three months ended June 30, 2015 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 6,174 $ 8,570 $ 3,907 $ 29 $ 18,680 Charge-offs (173 ) --- (29 ) --- (202 ) Recoveries 44 117 42 --- 203 Provision for loan losses 336 (748 ) (89 ) 1 (500 ) Ending Balance $ 6,381 $ 7,939 $ 3,831 $ 30 $ 18,181 Three months ended June 30, 2014 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 6,087 $ 10,372 $ 3,875 $ 49 $ 20,383 Charge-offs --- (23 ) (69 ) --- (92 ) Recoveries 327 363 68 --- 758 Provision for loan losses 307 (1,371 ) 59 5 (1,000 ) Ending Balance $ 6,721 $ 9,341 $ 3,933 $ 54 $ 20,049 Six months ended June 30, 2015 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 6,173 $ 8,690 $ 4,046 $ 53 $ 18,962 Charge-offs (173 ) --- (107 ) --- (280 ) Recoveries 128 725 146 --- 999 Provision for loan losses 253 (1,476 ) (254 ) (23 ) (1,500 ) Ending Balance $ 6,381 $ 7,939 $ 3,831 $ 30 $ 18,181 Six months ended June 30, 2014 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 6,174 $ 10,868 $ 3,703 $ 53 $ 20,798 Charge-offs (39 ) (23 ) (112 ) --- (174 ) Recoveries 366 953 106 --- 1,425 Provision for loan losses 220 (2,457 ) 236 1 (2,000 ) Ending Balance $ 6,721 $ 9,341 $ 3,933 $ 54 $ 20,049 |
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): June 30, 2015 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Allowance for loan losses: Ending allowance attributable to loans: Individually reviewed for impairment $ 2,451 $ 610 $ 926 $ --- $ 3,987 Collectively evaluated for impairment 3,930 7,329 2,905 30 14,194 Total ending allowance balance $ 6,381 $ 7,939 $ 3,831 $ 30 $ 18,181 Loans: Individually reviewed for impairment $ 5,405 $ 27,131 $ 14,420 $ --- $ 46,956 Collectively evaluated for impairment 344,797 447,274 290,997 --- 1,083,068 Total ending loans balance $ 350,202 $ 474,405 $ 305,417 $ --- $ 1,130,024 December 31, 2014 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Allowance for loan losses: Ending allowance attributable to loans: Individually reviewed for impairment $ 2,429 $ 743 $ 893 $ --- $ 4,065 Collectively evaluated for impairment 3,744 7,947 3,153 53 14,897 Total ending allowance balance $ 6,173 $ 8,690 $ 4,046 $ 53 $ 18,962 Loans: Individually reviewed for impairment $ 9,084 $ 29,818 $ 14,495 $ --- $ 53,397 Collectively evaluated for impairment 318,590 460,713 285,783 --- 1,065,086 Total ending loans balance $ 327,674 $ 490,531 $ 300,278 $ --- $ 1,118,483 |
Loans individually evaluated for impairment by class of loans | The following table presents loans individually evaluated for impairment by class of loans as of June 30, 2015 (dollars in thousands): June 30, 2015 Unpaid Principal Balance Recorded Investment Allowance Allocated With no related allowance recorded: Commercial and industrial $ 385 $ 385 $ --- Commercial real estate: Residential developed 126 126 --- Unsecured to residential developers --- --- --- Vacant and unimproved --- --- --- Commercial development --- --- --- Residential improved 547 547 --- Commercial improved 331 331 --- Manufacturing and industrial 206 206 --- 1,210 1,210 --- Consumer: Residential mortgage --- --- --- Unsecured --- --- --- Home equity --- --- --- Other secured --- --- --- --- --- --- $ 1,595 $ 1,595 $ --- With an allowance recorded: Commercial and industrial $ 5,020 $ 5,020 $ 2,451 Commercial real estate: Residential developed 470 470 31 Unsecured to residential developers --- --- --- Vacant and unimproved 1,401 1,401 34 Commercial development 194 194 5 Residential improved 6,124 6,124 178 Commercial improved 15,307 15,307 342 Manufacturing and industrial 2,425 2,425 20 25,921 25,921 610 Consumer: Residential mortgage 9,030 9,030 556 Unsecured --- --- --- Home equity 5,390 5,390 370 Other secured --- --- --- 14,420 14,420 926 $ 45,361 $ 45,361 $ 3,987 Total $ 46,956 $ 46,956 $ 3,987 The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2014 (dollars in thousands): December 31, 2014 Unpaid Principal Balance Recorded Investment Allowance Allocated With no related allowance recorded: Commercial and industrial $ 3,019 $ 3,019 $ --- Commercial real estate: Residential developed 531 531 --- Unsecured to residential developers --- --- --- Vacant and unimproved --- --- --- Commercial development --- --- --- Residential improved 547 547 --- Commercial improved 331 331 --- Manufacturing and industrial 206 206 --- 1,615 1,615 --- Consumer: Residential mortgage --- --- --- Unsecured --- --- --- Home equity --- --- --- Other secured --- --- --- --- --- --- $ 4,634 $ 4,634 $ --- With an allowance recorded: Commercial and industrial $ 6,065 $ 6,065 $ 2,429 Commercial real estate: Residential developed 550 550 35 Unsecured to residential developers --- --- --- Vacant and unimproved 1,499 1,499 43 Commercial development 199 199 5 Residential improved 7,323 7,323 240 Commercial improved 16,113 16,113 389 Manufacturing and industrial 2,519 2,519 31 28,203 28,203 743 Consumer: Residential mortgage 9,492 9,484 584 Unsecured --- --- --- Home equity 5,182 5,011 309 Other secured --- --- --- 14,674 14,495 893 $ 48,942 $ 48,763 $ 4,065 Total $ 53,576 $ 53,397 $ 4,065 |
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 six month periods ended June 30, 2015 and 2014 (dollars in thousands): Three Months Ended June 30, 2015 Three Months Ended June 30, 2014 Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 Average of impaired loans during the period: Commercial and industrial $ 7,084 $ 11,908 $ 8,394 $ 13,096 Commercial real estate: Residential developed 682 4,085 810 4,308 Unsecured to residential developers --- --- --- --- Vacant and unimproved 1,416 1,650 1,453 1,735 Commercial development 195 483 196 505 Residential improved 7,018 9,863 7,340 10,141 Commercial improved 16,363 18,133 16,561 18,212 Manufacturing and industrial 2,650 6,404 2,678 6,562 Consumer 14,583 14,400 14,683 14,408 Interest income recognized during impairment: Commercial and industrial 292 273 618 611 Commercial real estate 336 454 692 907 Consumer 128 137 264 269 Cash-basis interest income recognized Commercial and industrial 292 276 620 615 Commercial real estate 334 471 685 922 Consumer 128 137 267 271 |
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans | The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of June 30, 2015 and December 31, 2014: June 30, 2015 Nonaccrual Over 90 days Accruing Commercial and industrial $ 2,392 $ --- Commercial real estate: Residential developed 174 --- Unsecured to residential developers --- --- Vacant and unimproved --- --- Commercial development 49 --- Residential improved 589 --- Commercial improved 376 --- Manufacturing and industrial --- --- 1,188 --- Consumer: Residential mortgage 2 --- Unsecured 34 --- Home equity 11 72 Other secured 17 --- 64 72 Total $ 3,644 $ 72 December 31, 2014 Nonaccrual Over 90 days Accruing Commercial and industrial $ 5,605 $ --- Commercial real estate: Residential developed 245 --- Unsecured to residential developers --- --- Vacant and unimproved --- --- Commercial development 29 --- Residential improved 766 --- Commercial improved 866 117 Manufacturing and industrial --- --- 1,906 117 Consumer: Residential mortgage 305 --- Unsecured 40 --- Home equity 436 17 Other secured --- --- 781 17 Total $ 8,292 $ 134 |
Aging of recorded investment in past due loans by class of loans | The following tables present the aging of the recorded investment in past due loans as of June 30, 2015 and December 31, 2014 by class of loans (dollars in thousands): June 30, 2015 30-90 Greater Than Total Loans Not Total Commercial and industrial $ 124 $ 6 $ 130 $ 350,072 $ 350,202 Commercial real estate: Residential developed --- --- --- 10,664 10,664 Unsecured to residential developers --- --- --- 7,627 7,627 Vacant and unimproved --- --- --- 44,108 44,108 Commercial development --- 49 49 1,755 1,804 Residential improved 20 440 460 68,131 68,591 Commercial improved 682 197 879 269,266 270,145 Manufacturing and industrial --- --- --- 71,466 71,466 702 686 1,388 473,017 474,405 Consumer: Residential mortgage 234 --- 234 199,738 199,972 Unsecured 16 --- 16 748 764 Home equity 29 72 101 94,941 95,042 Other secured --- 17 17 9,622 9,639 279 89 368 305,049 305,417 Total $ 1,105 $ 781 $ 1,886 $ 1,128,138 $ 1,130,024 December 31, 2014 30-90 Greater Than Total Loans Not Total Commercial and industrial $ 54 $ --- $ 54 $ 327,620 $ 327,674 Commercial real estate: Residential developed --- --- --- 12,771 12,771 Unsecured to residential developers --- --- --- 7,496 7,496 Vacant and unimproved 100 --- 100 50,272 50,372 Commercial development --- 29 29 4,053 4,082 Residential improved 100 440 540 69,072 69,612 Commercial improved --- 958 958 268,799 269,757 Manufacturing and industrial --- --- --- 76,441 76,441 200 1,427 1,627 488,904 490,531 Consumer: Residential mortgage 338 303 641 189,608 190,249 Unsecured --- 18 18 930 948 Home equity 79 422 501 98,386 98,887 Other secured --- --- --- 10,194 10,194 417 743 1,160 299,118 300,278 Total $ 671 $ 2,170 $ 2,841 $ 1,115,642 $ 1,118,483 |
Troubled debt restructurings | The following table presents information regarding troubled debt restructurings as of June 30, 2015 and December 31, 2014 (dollars in thousands): June 30, 2015 December 31, 2014 Number of Loans Outstanding Recorded Balance Number of Loans Outstanding Recorded Balance Commercial and industrial 36 $ 5,405 36 $ 9,085 Commercial real estate 74 27,131 84 29,817 Consumer 132 14,420 106 14,495 242 $ 46,956 226 $ 53,397 The following table presents information related to accruing troubled debt restructurings as of June 30, 2015 and December 31, 2014. The table presents the amount of accruing troubled debt restructurings that were on nonaccrual status prior to the restructuring, accruing at the time of restructuring and those that were upgraded to accruing status after receiving six consecutive monthly payments in accordance with the restructured terms as of each period reported (dollars in thousands): June 30, December 31, Accruing TDR - nonaccrual at restructuring $ --- $ --- Accruing TDR - accruing at restructuring 43,617 46,197 Accruing TDR - upgraded to accruing after six consecutive payments --- --- $ 43,617 $ 46,197 The following tables present information regarding troubled debt restructurings executed during the three and six month periods ended June 30, 2015 and 2014 (dollars in thousands): Three Months Ended June 30, 2015 Number of Loans Pre-Modification Outstanding Recorded Balance Principal Writedown upon Modification Commercial and industrial --- $ --- $ --- Commercial real estate --- --- --- Consumer 2 72 --- 2 $ 72 $ --- Three Months Ended June 30, 2014 Number of Loans Pre-Modification Outstanding Recorded Balance Principal Writedown upon Modification Commercial and industrial --- $ --- $ --- Commercial real estate 6 1,783 --- Consumer 1 70 --- 7 $ 1,853 $ --- Six Months Ended June 30, 2015 Number of Loans Pre-Modification Outstanding Recorded Balance Principal Writedown upon Modification Commercial and industrial 1 $ 408 $ --- Commercial real estate 1 42 --- Consumer 31 753 --- 33 $ 1,203 $ --- Six Months Ended June 30, 2014 Number of Loans Pre-Modification Outstanding Recorded Balance Principal Writedown upon Modification Commercial and industrial 1 $ 60 $ --- Commercial real estate 10 4,046 --- Consumer 2 74 --- 13 $ 4,180 $ --- |
Troubled debt restructured loans that defaulted during the period | The tables below present, by class, information regarding troubled debt restructured loans which had payment defaults during the three and six month periods ended June 30, 2015 and 2014 (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 Number of Loans Outstanding Recorded Balance Number of Loans Outstanding Recorded Balance Commercial and industrial --- $ --- --- $ --- Commercial real estate --- --- --- --- Consumer --- --- --- --- Six Months Ended Six Months Ended Number of Loans Outstanding Recorded Balance Number of Loans Outstanding Recorded Balance Commercial and industrial --- $ --- --- $ --- Commercial real estate --- --- 1 131 Consumer --- --- --- --- |
Risk grade category of loans by class of loans | As of June 30, 2015 and December 31, 2014, the risk grade category of commercial loans by class of loans were as follows (dollars in thousands): June 30, 2015 1 2 3 4 5 6 7 8 Total Commercial and industrial $ 239 $ 10,932 $ 133,304 $ 192,471 $ 9,845 $ 1,019 $ 2,392 $ --- $ 350,202 Commercial real estate: Residential developed --- --- 2,204 4,917 2,563 806 174 --- 10,664 Unsecured to residential developers --- --- --- 7,627 --- --- --- --- 7,627 Vacant and unimproved --- --- 15,701 21,548 6,859 --- --- --- 44,108 Commercial development --- --- --- 1,362 199 194 49 --- 1,804 Residential improved --- --- 16,155 44,748 5,283 1,816 589 --- 68,591 Commercial improved --- 4,782 56,518 184,891 21,022 2,556 376 --- 270,145 Manufacturing & industrial --- 1,196 28,190 37,096 4,663 321 --- --- 71,466 $ 239 $ 16,910 $ 252,072 $ 494,660 $ 50,434 $ 6,712 $ 3,580 $ --- $ 824,607 December 31, 2014 1 2 3 4 5 6 7 8 Total Commercial and industrial $ 343 $ 11,177 $ 118,382 $ 182,651 $ 8,448 $ 1,068 $ 5,605 $ --- $ 327,674 Commercial real estate: Residential developed --- --- 2,491 4,702 4,491 842 245 --- 12,771 Unsecured to residential developers --- --- --- 7,496 --- --- --- --- 7,496 Vacant and unimproved --- --- 12,105 30,997 7,241 29 --- --- 50,372 Commercial development --- --- --- 3,643 211 199 29 --- 4,082 Residential improved --- 103 16,291 43,928 6,428 2,096 766 --- 69,612 Commercial improved --- 4,392 61,543 178,169 20,558 4,229 866 --- 269,757 Manufacturing & industrial --- 1,508 27,396 42,494 4,713 330 --- --- 76,441 $ 343 $ 17,180 $ 238,208 $ 494,080 $ 52,090 $ 8,793 $ 7,511 $ --- $ 818,205 |
Commercial loans classified as substandard or worse | 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): June 30, December 31, Not classified as impaired $ 1,891 $ 4,220 Classified as impaired 8,401 12,084 Total commercial loans classified substandard or worse $ 10,292 $ 16,304 |
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): June 30, 2015 Residential Consumer Home Consumer Performing $ 199,972 $ 764 $ 94,970 $ 9,622 Nonperforming --- --- 72 17 Total $ 199,972 $ 764 $ 95,042 $ 9,639 December 31, 2014 Residential Consumer Home Consumer Performing $ 189,946 $ 930 $ 98,465 $ 10,194 Nonperforming 303 18 422 --- Total $ 190,249 $ 948 $ 98,887 $ 10,194 |
OTHER REAL ESTATE OWNED (Tables
OTHER REAL ESTATE OWNED (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
OTHER REAL ESTATE OWNED [Abstract] | |
Period-end other real estate owned | Other real estate owned was as follows (dollars in thousands): Six Year Six Beginning balance $ 43,071 $ 53,501 $ 53,501 Additions, transfers from loans 1,442 4,932 2,274 Proceeds from sales of other real estate owned (2,962 ) (12,487 ) (7,362 ) Valuation allowance reversal upon sale (427 ) (3,499 ) (2,564 ) Gain (loss) on sale of other real estate owned 205 624 476 41,329 43,071 46,325 Less: valuation allowance (15,026 ) (14,829 ) (14,802 ) Ending balance $ 26,303 $ 28,242 $ 31,523 |
Activity in valuation allowance | Activity in the valuation allowance was as follows (dollars in thousands): Six Months Six Months Beginning balance $ 14,829 $ 16,705 Additions charged to expense 624 661 Reversals upon sale (427 ) (2,564 ) Ending balance $ 15,026 $ 14,802 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 in Active Markets for Identical Assets Significant Other Observable Significant Unobservable Inputs June 30, 2015 U.S. Treasury and federal agency securities $ 70,541 $ --- $ 70,541 $ --- U.S. Agency MBS and CMOs 14,774 --- 14,774 --- Tax-exempt state and municipal bonds 34,897 --- 34,897 --- Taxable state and municipal bonds 24,425 --- 24,425 --- Corporate bonds and other debt securities 12,732 --- 12,732 --- Other equity securities 1,497 --- 1,497 --- Loans held for sale 5,114 --- 5,114 --- Interest rate swaps 184 --- --- 184 Interest rate swaps (184 ) --- --- (184 ) December 31, 2014 U.S. Treasury and federal agency securities $ 67,164 $ --- $ 67,164 $ --- U.S. Agency MBS and CMOs 16,688 --- 16,688 --- Tax-exempt state and municipal bonds 37,461 --- 37,461 --- Taxable state and municipal bonds 25,293 --- 25,293 --- Corporate bonds and other debt securities 13,766 --- 13,766 --- Other equity securities 1,502 --- 1,502 --- Loans held for sale 2,347 --- 2,347 --- Interest rate swaps 140 --- --- 140 Interest rate swaps (140 ) --- --- (140 ) |
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 in Active Markets for Identical Assets Significant Other Observable Significant Unobservable Inputs June 30, 2015 Impaired loans $ 7,779 $ --- $ --- $ 7,779 Other real estate owned 22,577 --- --- 22,577 December 31, 2014 Impaired loans $ 12,649 $ --- $ --- $ 12,649 Other real estate owned 22,472 --- --- 22,472 |
Quantitative information about level 3 fair value measurements measured on a non-recurring basis | Quantitative information about Level 3 fair value measurements measured on a non-recurring basis were as follows at period end (dollars in thousands): Asset Valuation Unobservable Range (%) June 30, 2015 Impaired Loans $ 7,779 Sales comparison approach Adjustment for differences between comparable sales 1.0 to 20.0 Income approach Capitalization rate 9.5 to 11.0 Other real estate owned 22,577 Sales comparison approach Adjustment for differences between comparable sales 4.5 to 22.0 Income approach Capitalization rate 9.5 to 11.0 Asset Valuation Unobservable Range (%) December 31, 2014 Impaired Loans $ 12,649 Sales comparison approach Adjustment for differences between comparable sales 1.0 to 20.0 Income approach Capitalization rate 9.5 to 12.0 Other real estate owned 22,472 Sales comparison approach Adjustment for differences between comparable sales 3.0 to 22.7 Income approach Capitalization rate 9.5 to 12.0 |
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 June 30, 2015 and December 31, 2014 (dollars in thousands). Level in June 30, 2015 December 31, 2014 Fair Value Carrying Fair Carrying Fair Financial assets Cash and due from banks Level 1 $ 28,853 $ 28,853 $ 31,503 $ 31,503 Cash equivalents Level 2 112,721 112,721 97,952 97,952 Interest-bearing time deposits in other financial institutions Level 2 20,000 20,052 20,000 20,062 Securities held to maturity Level 3 43,229 43,810 31,585 31,428 FHLB stock 11,558 NA 11,238 NA Loans, net Level 2 1,104,063 1,097,584 1,086,872 1,082,675 Bank owned life insurance Level 3 28,528 28,528 28,195 28,195 Accrued interest receivable Level 2 3,633 3,633 3,399 3,399 Financial liabilities Deposits Level 2 (1,327,813 ) (1,327,724 ) (1,306,325 ) (1,306,671 ) Other borrowed funds Level 2 (96,836 ) (97,555 ) (88,107 ) (89,066 ) Long-term debt Level 2 (41,238 ) (35,626 ) (41,238 ) (35,396 ) Accrued interest payable Level 2 (283 ) (283 ) (289 ) (289 ) Off-balance sheet credit-related items Loan commitments --- --- --- --- |
DEPOSITS (Tables)
DEPOSITS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
DEPOSITS [Abstract] | |
Deposits at period-end | Deposits are summarized as follows (in thousands): June 30, December 31, Noninterest-bearing demand $ 389,828 $ 404,143 Interest bearing demand 348,490 340,053 Savings and money market accounts 490,258 442,246 Certificates of deposit 99,237 119,883 $ 1,327,813 $ 1,306,325 |
OTHER BORROWED FUNDS (Tables)
OTHER BORROWED FUNDS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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): Principal Terms Advance Range of Maturities Weighted June 30, 2015 Single maturity fixed rate advances $ 90,000 August 2016 to March 2020 1.69 % Amortizable mortgage advances 6,836 March 2018 to July 2018 3.76 % $ 96,836 Principal Terms Advance Range of Maturities Weighted Average December 31, 2014 Single maturity fixed rate advances $ 80,000 August 2016 to February 2019 1.69 % Amortizable mortgage advances 8,107 March 2018 to July 2018 3.78 % $ 88,107 |
Scheduled repayments of FHLB advances | Scheduled repayments of FHLB advances as of June 30, 2015 were as follows (in thousands): 2015 $ 667 2016 21,996 2017 2,055 2018 52,118 2019 10,000 Thereafter 10,000 $ 96,836 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 six month periods ended June 30, 2015 and 2014 are as follows (dollars in thousands, except per share data): Three Months Three Months Six Months Six Months Net income available to common shares $ 3,215 $ 2,755 $ 6,055 $ 5,393 Weighted average shares outstanding, including participating stock awards - 33,866,789 33,788,431 33,866,789 33,789,481 Dilutive potential common shares: Stock options --- --- --- --- Stock warrants --- --- --- --- Weighted average shares outstanding - 33,866,789 33,788,431 33,866,789 33,789,481 Basic earnings per common share $ 0.09 $ 0.08 $ 0.18 $ 0.16 Diluted earnings per common share $ 0.09 $ 0.08 $ 0.18 $ 0.16 |
FEDERAL INCOME TAXES (Tables)
FEDERAL INCOME TAXES (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
FEDERAL INCOME TAXES [Abstract] | |
Income tax expense | Income tax expense was as follows (dollars in thousands): Three Months Three Months Six Months Six Months Current $ 676 $ 36 $ 1,329 $ 60 Deferred 744 1,195 1,336 2,348 $ 1,420 $ 1,231 $ 2,665 $ 2,408 |
Difference between financial statement tax expense 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 Six Months Six Months Statutory rate 35 % 35 % 35 % 35 % Statutory rate applied to income before taxes $ 1,622 $ 1,395 $ 3,052 $ 2,730 Add (deduct) Tax-exempt interest income (127 ) (89 ) (244 ) (174 ) Bank-owned life insurance (60 ) (61 ) (117 ) (115 ) Other, net (15 ) (14 ) (26 ) (33 ) $ 1,420 $ 1,231 $ 2,665 $ 2,408 |
Deferred tax assets and liabilities | The net deferred tax asset recorded included the following amounts of deferred tax assets and liabilities (dollars in thousands): June 30, December 31, Deferred tax assets Allowance for loan losses $ 6,363 $ 6,637 Nonaccrual loan interest 1,037 935 Valuation allowance on other real estate owned 5,259 5,190 Unrealized loss on securities available for sale --- --- Other 551 1,896 Gross deferred tax assets 13,210 14,658 Valuation allowance --- --- Total net deferred tax assets 13,210 14,658 Deferred tax liabilities Depreciation (1,792 ) (1,908 ) Prepaid expenses (21 ) (21 ) Unrealized gain on securities available for sale (27 ) (33 ) Other (435 ) (431 ) Gross deferred tax liabilities (2,275 ) (2,393 ) Net deferred tax asset $ 10,935 $ 12,265 |
COMMITMENTS AND OFF BALANCE-S30
COMMITMENTS AND OFF BALANCE-SHEET RISK (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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): June 30, December 31, Commitments to make loans $ 139,330 $ 81,274 Letters of credit 13,027 11,862 Unused lines of credit 391,015 389,099 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
SHAREHOLDERS' EQUITY [Abstract] | |
Actual capital levels and minimum required levels | At June 30, 2015 and December 31, 2014, actual capital levels and minimum required levels were (dollars in thousands): Actual Minimum Required To Be Well Amount Ratio Amount Ratio Amount Ratio June 30, 2015 CET1 capital (to risk weighted assets) Consolidated $ 146,392 10.9 % $ 60,626 4.5 % N/A N/A Bank 181,020 13.4 60,615 4.5 $ 87,555 6.5 % Tier 1 capital (to risk weighted assets) Consolidated 186,392 13.8 80,834 6.0 N/A N/A Bank 181,020 13.4 80,820 6.0 107,759 8.0 Total capital (to risk weighted assets) Consolidated 203,249 15.1 107,779 8.0 N/A N/A Bank 197,874 14.7 107,759 8.0 134,699 10.0 Tier 1 capital (to average assets) Consolidated 186,392 11.7 63,720 4.0 N/A N/A Bank 181,020 11.4 63,650 4.0 79,563 5.0 December 31, 2014 Tier 1 capital (to risk weighted assets) Consolidated $ 174,084 14.3 % $ 48,706 4.0 % N/A N/A Bank 170,983 14.0 48,788 4.0 $ 73,182 6.0 % Total capital (to risk weighted assets) Consolidated 189,353 15.6 97,420 8.0 N/A N/A Bank 186,276 15.3 97,575 8.0 121,969 10.0 Tier 1 capital (to average assets) Consolidated 174,084 11.6 59,998 4.0 N/A N/A Bank 170,983 11.4 59,923 4.0 74,904 5.0 |
SUMMARY OF SIGNIFICANT ACCOUN32
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015USD ($)BranchGradeInterestRateSwapProperty | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||
Number of full service branch offices | Branch | 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 | Grade | 6 | ||
Income Taxes [Abstract] | |||
Percentage of more likely than not tax position that would be sustained in a tax examination (in hundredths) | 50.00% | ||
Derivatives [Abstract] | |||
Number of freestanding interest rate swaps | InterestRateSwap | 2 | ||
Notional amount of agreements | $ 20,000,000 | $ 20,000,000 | |
Derivative asset fair value | 184,000 | 140,000 | |
Derivative liability fair value | 184,000 | 140,000 | |
Real Estate Properties [Line Items] | |||
Real estate properties classified as other real estate owned | $ 1,442,000 | $ 2,274,000 | $ 4,932,000 |
Residential Real Estate [Member] | |||
Real Estate Properties [Line Items] | |||
Number of real estate properties classified as other real estate owned | Property | 5 | ||
Real estate properties classified as other real estate owned | $ 657,000 |
SECURITIES (Details)
SECURITIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Available for Sale [Abstract] | |||||
Amortized Cost | $ 158,789 | $ 158,789 | $ 161,781 | ||
Gross Unrealized Gains | 786 | 786 | 926 | ||
Gross Unrealized Losses | (709) | (709) | (833) | ||
Fair Value | 158,866 | 158,866 | 161,874 | ||
Proceeds from sale of available-for-sale securities | 0 | $ 4,600 | 12,063 | $ 5,164 | |
Gain on sale of securities | 0 | 41 | 83 | 51 | |
Reclassification adjustment for securities gain recognized in earnings, net of tax | 0 | $ 27 | 54 | $ 33 | |
Held to Maturity [Abstract] | |||||
Amortized Cost | 43,229 | 43,229 | 31,585 | ||
Fair Value | 43,810 | 43,810 | 31,428 | ||
U.S. Treasury and Federal Agency Securities [Member] | |||||
Available for Sale [Abstract] | |||||
Amortized Cost | 70,725 | 70,725 | 67,612 | ||
Gross Unrealized Gains | 92 | 92 | 53 | ||
Gross Unrealized Losses | (276) | (276) | (501) | ||
Fair Value | 70,541 | 70,541 | 67,164 | ||
U.S. Agency MBS and CMOs [Member] | |||||
Available for Sale [Abstract] | |||||
Amortized Cost | 14,808 | 14,808 | 16,692 | ||
Gross Unrealized Gains | 55 | 55 | 67 | ||
Gross Unrealized Losses | (89) | (89) | (71) | ||
Fair Value | 14,774 | 14,774 | 16,688 | ||
Tax-Exempt State and Municipal Bonds [Member] | |||||
Available for Sale [Abstract] | |||||
Amortized Cost | 34,903 | 34,903 | 37,203 | ||
Gross Unrealized Gains | 279 | 279 | 419 | ||
Gross Unrealized Losses | (285) | (285) | (161) | ||
Fair Value | 34,897 | 34,897 | 37,461 | ||
Taxable State and Municipal Bonds [Member] | |||||
Available for Sale [Abstract] | |||||
Amortized Cost | 24,148 | 24,148 | 25,012 | ||
Gross Unrealized Gains | 316 | 316 | 351 | ||
Gross Unrealized Losses | (39) | (39) | (70) | ||
Fair Value | 24,425 | 24,425 | 25,293 | ||
Corporate Bonds and Other Debt Securities [Member] | |||||
Available for Sale [Abstract] | |||||
Amortized Cost | 12,705 | 12,705 | 13,762 | ||
Gross Unrealized Gains | 44 | 44 | 34 | ||
Gross Unrealized Losses | (17) | (17) | (30) | ||
Fair Value | 12,732 | 12,732 | 13,766 | ||
Other Equity Securities [Member] | |||||
Available for Sale [Abstract] | |||||
Amortized Cost | 1,500 | 1,500 | 1,500 | ||
Gross Unrealized Gains | 0 | 0 | 2 | ||
Gross Unrealized Losses | (3) | (3) | 0 | ||
Fair Value | 1,497 | 1,497 | 1,502 | ||
Tax-Exempt State and Municipal Bonds [Member] | |||||
Held to Maturity [Abstract] | |||||
Amortized Cost | 43,229 | 43,229 | 31,585 | ||
Gross Unrealized Gains | 584 | 584 | 64 | ||
Gross Unrealized Losses | (3) | (3) | (221) | ||
Fair Value | $ 43,810 | $ 43,810 | $ 31,428 |
SECURITIES, Contractual Maturit
SECURITIES, Contractual Maturities of Debt Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Held-to-Maturity Securities, Amortized Cost [Abstract] | ||
Due in one year or less | $ 21,004 | |
Due from one to five years | 8,312 | |
Due from five to ten years | 13,813 | |
Due after ten years | 100 | |
Amortized Cost | 43,229 | $ 31,585 |
Held-to-Maturity Securities, Fair Value [Abstract] | ||
Due in one year or less | 21,015 | |
Due from one to five years | 8,481 | |
Due from five to ten years | 14,211 | |
Due after ten years | 103 | |
Fair Value | 43,810 | $ 31,428 |
Available-for-Sale Securities, Amortized Cost [Abstract] | ||
Due in one year or less | 5,404 | |
Due from one to five years | 94,430 | |
Due from five to ten years | 40,081 | |
Due after ten years | 17,374 | |
Amortized Cost | 157,289 | |
Available-for-Sale Securities, Fair Value [Abstract] | ||
Due in one year or less | 5,448 | |
Due from one to five years | 94,614 | |
Due from five to ten years | 39,935 | |
Due after ten years | 17,372 | |
Fair Value | $ 157,369 |
SECURITIES, Continuous Unrealiz
SECURITIES, Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Securities in continuous unrealized losses position, Fair value [Abstract] | ||
Less than 12 Months, Fair Value | $ 62,919 | $ 51,415 |
12 Months or More, Fair Value | 22,406 | 54,855 |
Total, Fair Value | 85,325 | 106,270 |
Securities in continuous unrealized loss position, Aggregate losses [Abstract] | ||
Less than 12 Months, Unrealized Losses | (433) | (341) |
12 Months or More, Unrealized Losses | (279) | (713) |
Total, Unrealized Loss | (712) | (1,054) |
Securities pledged as security for public deposits, letters of credit and for other purposes required or permitted by law | 1,000 | 1,000 |
U.S. Treasury and Federal Agency Securities [Member] | ||
Securities in continuous unrealized losses position, Fair value [Abstract] | ||
Less than 12 Months, Fair Value | 28,741 | 16,426 |
12 Months or More, Fair Value | 17,751 | 35,350 |
Total, Fair Value | 46,492 | 51,776 |
Securities in continuous unrealized loss position, Aggregate losses [Abstract] | ||
Less than 12 Months, Unrealized Losses | (109) | (45) |
12 Months or More, Unrealized Losses | (167) | (456) |
Total, Unrealized Loss | (276) | (501) |
U.S. Agency MBS and CMOs [Member] | ||
Securities in continuous unrealized losses position, Fair value [Abstract] | ||
Less than 12 Months, Fair Value | 8,969 | 0 |
12 Months or More, Fair Value | 985 | 9,732 |
Total, Fair Value | 9,954 | 9,732 |
Securities in continuous unrealized loss position, Aggregate losses [Abstract] | ||
Less than 12 Months, Unrealized Losses | (83) | 0 |
12 Months or More, Unrealized Losses | (6) | (71) |
Total, Unrealized Loss | (89) | (71) |
Tax-Exempt State and Municipal Bonds [Member] | ||
Securities in continuous unrealized losses position, Fair value [Abstract] | ||
Less than 12 Months, Fair Value | 14,656 | 26,820 |
12 Months or More, Fair Value | 1,977 | 4,545 |
Total, Fair Value | 16,633 | 31,365 |
Securities in continuous unrealized loss position, Aggregate losses [Abstract] | ||
Less than 12 Months, Unrealized Losses | (197) | (264) |
12 Months or More, Unrealized Losses | (88) | (118) |
Total, Unrealized Loss | (285) | (382) |
Taxable State and Municipal Bonds [Member] | ||
Securities in continuous unrealized losses position, Fair value [Abstract] | ||
Less than 12 Months, Fair Value | 5,480 | 3,982 |
12 Months or More, Fair Value | 1,195 | 3,240 |
Total, Fair Value | 6,675 | 7,222 |
Securities in continuous unrealized loss position, Aggregate losses [Abstract] | ||
Less than 12 Months, Unrealized Losses | (28) | (19) |
12 Months or More, Unrealized Losses | (14) | (51) |
Total, Unrealized Loss | (42) | (70) |
Corporate Bonds and Other Debt Securities [Member] | ||
Securities in continuous unrealized losses position, Fair value [Abstract] | ||
Less than 12 Months, Fair Value | 3,573 | 4,187 |
12 Months or More, Fair Value | 498 | 1,988 |
Total, Fair Value | 4,071 | 6,175 |
Securities in continuous unrealized loss position, Aggregate losses [Abstract] | ||
Less than 12 Months, Unrealized Losses | (13) | (13) |
12 Months or More, Unrealized Losses | (4) | (17) |
Total, Unrealized Loss | (17) | (30) |
Other Equity Securities [Member] | ||
Securities in continuous unrealized losses position, Fair value [Abstract] | ||
Less than 12 Months, Fair Value | 1,500 | 0 |
12 Months or More, Fair Value | 0 | 0 |
Total, Fair Value | 1,500 | 0 |
Securities in continuous unrealized loss position, Aggregate losses [Abstract] | ||
Less than 12 Months, Unrealized Losses | (3) | 0 |
12 Months or More, Unrealized Losses | 0 | 0 |
Total, Unrealized Loss | $ (3) | $ 0 |
LOANS (Details)
LOANS (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Portfolio loans [Abstract] | ||
Total loans | $ 1,130,024 | $ 1,118,483 |
Allowance for loan losses | (18,181) | (18,962) |
Net loans | 1,111,843 | 1,099,521 |
Commercial and Industrial [Member] | ||
Portfolio loans [Abstract] | ||
Total loans | 350,202 | 327,674 |
Commercial Real Estate [Member] | ||
Portfolio loans [Abstract] | ||
Total loans | 474,405 | 490,531 |
Commercial Real Estate [Member] | Residential Developed [Member] | ||
Portfolio loans [Abstract] | ||
Total loans | 10,664 | 12,771 |
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | ||
Portfolio loans [Abstract] | ||
Total loans | 7,627 | 7,496 |
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | ||
Portfolio loans [Abstract] | ||
Total loans | 44,108 | 50,372 |
Commercial Real Estate [Member] | Commercial Development [Member] | ||
Portfolio loans [Abstract] | ||
Total loans | 1,804 | 4,082 |
Commercial Real Estate [Member] | Residential Improved [Member] | ||
Portfolio loans [Abstract] | ||
Total loans | 68,591 | 69,612 |
Commercial Real Estate [Member] | Commercial Improved [Member] | ||
Portfolio loans [Abstract] | ||
Total loans | 270,145 | 269,757 |
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | ||
Portfolio loans [Abstract] | ||
Total loans | 71,466 | 76,441 |
Consumer [Member] | ||
Portfolio loans [Abstract] | ||
Total loans | 305,417 | 300,278 |
Consumer [Member] | Residential Mortgage [Member] | ||
Portfolio loans [Abstract] | ||
Total loans | 199,972 | 190,249 |
Consumer [Member] | Unsecured [Member] | ||
Portfolio loans [Abstract] | ||
Total loans | 764 | 948 |
Consumer [Member] | Home Equity [Member] | ||
Portfolio loans [Abstract] | ||
Total loans | 95,042 | 98,887 |
Consumer [Member] | Other Secured [Member] | ||
Portfolio loans [Abstract] | ||
Total loans | $ 9,639 | $ 10,194 |
LOANS, Allowance for Loans Loss
LOANS, Allowance for Loans Losses by Portfolio (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Allowance for loan losses by portfolio [Roll Forward] | ||||
Beginning balance | $ 18,680 | $ 20,383 | $ 18,962 | $ 20,798 |
Charge-offs | (202) | (92) | (280) | (174) |
Recoveries | 203 | 758 | 999 | 1,425 |
Provision for loan losses | (500) | (1,000) | (1,500) | (2,000) |
Ending balance | 18,181 | 20,049 | 18,181 | 20,049 |
Commercial and Industrial [Member] | ||||
Allowance for loan losses by portfolio [Roll Forward] | ||||
Beginning balance | 6,174 | 6,087 | 6,173 | 6,174 |
Charge-offs | (173) | 0 | (173) | (39) |
Recoveries | 44 | 327 | 128 | 366 |
Provision for loan losses | 336 | 307 | 253 | 220 |
Ending balance | 6,381 | 6,721 | 6,381 | 6,721 |
Commercial Real Estate [Member] | ||||
Allowance for loan losses by portfolio [Roll Forward] | ||||
Beginning balance | 8,570 | 10,372 | 8,690 | 10,868 |
Charge-offs | 0 | (23) | 0 | (23) |
Recoveries | 117 | 363 | 725 | 953 |
Provision for loan losses | (748) | (1,371) | (1,476) | (2,457) |
Ending balance | 7,939 | 9,341 | 7,939 | 9,341 |
Consumer [Member] | ||||
Allowance for loan losses by portfolio [Roll Forward] | ||||
Beginning balance | 3,907 | 3,875 | 4,046 | 3,703 |
Charge-offs | (29) | (69) | (107) | (112) |
Recoveries | 42 | 68 | 146 | 106 |
Provision for loan losses | (89) | 59 | (254) | 236 |
Ending balance | 3,831 | 3,933 | 3,831 | 3,933 |
Unallocated [Member] | ||||
Allowance for loan losses by portfolio [Roll Forward] | ||||
Beginning balance | 29 | 49 | 53 | 53 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision for loan losses | 1 | 5 | (23) | 1 |
Ending balance | $ 30 | $ 54 | $ 30 | $ 54 |
LOANS, Allowance for Loans Lo38
LOANS, Allowance for Loans Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
Ending allowance attributable to loans [Abstract] | ||||||
Individually reviewed for impairment | $ 3,987 | $ 4,065 | ||||
Collectively evaluated for impairment | 14,194 | 14,897 | ||||
Total ending allowance balance | 18,181 | $ 18,680 | 18,962 | $ 20,049 | $ 20,383 | $ 20,798 |
Loans [Abstract] | ||||||
Individually reviewed for impairment | 46,956 | 53,397 | ||||
Collectively evaluated for impairment | 1,083,068 | 1,065,086 | ||||
Total ending loans balance | 1,130,024 | 1,118,483 | ||||
Commercial and Industrial [Member] | ||||||
Ending allowance attributable to loans [Abstract] | ||||||
Individually reviewed for impairment | 2,451 | 2,429 | ||||
Collectively evaluated for impairment | 3,930 | 3,744 | ||||
Total ending allowance balance | 6,381 | 6,174 | 6,173 | 6,721 | 6,087 | 6,174 |
Loans [Abstract] | ||||||
Individually reviewed for impairment | 5,405 | 9,084 | ||||
Collectively evaluated for impairment | 344,797 | 318,590 | ||||
Total ending loans balance | 350,202 | 327,674 | ||||
Commercial Real Estate [Member] | ||||||
Ending allowance attributable to loans [Abstract] | ||||||
Individually reviewed for impairment | 610 | 743 | ||||
Collectively evaluated for impairment | 7,329 | 7,947 | ||||
Total ending allowance balance | 7,939 | 8,570 | 8,690 | 9,341 | 10,372 | 10,868 |
Loans [Abstract] | ||||||
Individually reviewed for impairment | 27,131 | 29,818 | ||||
Collectively evaluated for impairment | 447,274 | 460,713 | ||||
Total ending loans balance | 474,405 | 490,531 | ||||
Consumer [Member] | ||||||
Ending allowance attributable to loans [Abstract] | ||||||
Individually reviewed for impairment | 926 | 893 | ||||
Collectively evaluated for impairment | 2,905 | 3,153 | ||||
Total ending allowance balance | 3,831 | 3,907 | 4,046 | 3,933 | 3,875 | 3,703 |
Loans [Abstract] | ||||||
Individually reviewed for impairment | 14,420 | 14,495 | ||||
Collectively evaluated for impairment | 290,997 | 285,783 | ||||
Total ending loans balance | 305,417 | 300,278 | ||||
Unallocated [Member] | ||||||
Ending allowance attributable to loans [Abstract] | ||||||
Individually reviewed for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 30 | 53 | ||||
Total ending allowance balance | 30 | $ 29 | 53 | $ 54 | $ 49 | $ 53 |
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 ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
With no related allowance recorded [Abstract] | |||||
With no allowance, Unpaid Principal Balance | $ 1,595 | $ 1,595 | $ 4,634 | ||
With no allowance, Recorded Investment | 1,595 | 1,595 | 4,634 | ||
With related allowance recorded [Abstract] | |||||
With related allowance, Unpaid Principal Balance | 45,361 | 45,361 | 48,942 | ||
With related allowance, Recorded Investment | 45,361 | 45,361 | 48,763 | ||
Allowance Allocated | 3,987 | 3,987 | 4,065 | ||
Total impaired, Unpaid Principal Balance | 46,956 | 46,956 | 53,576 | ||
Total impaired, Recorded Investment, Total | 46,956 | 46,956 | 53,397 | ||
Commercial and Industrial [Member] | |||||
With no related allowance recorded [Abstract] | |||||
With no allowance, Unpaid Principal Balance | 385 | 385 | 3,019 | ||
With no allowance, Recorded Investment | 385 | 385 | 3,019 | ||
With related allowance recorded [Abstract] | |||||
With related allowance, Unpaid Principal Balance | 5,020 | 5,020 | 6,065 | ||
With related allowance, Recorded Investment | 5,020 | 5,020 | 6,065 | ||
Allowance Allocated | 2,451 | 2,451 | 2,429 | ||
Impaired loans [Abstract] | |||||
Average of impaired loans | 7,084 | $ 11,908 | 8,394 | $ 13,096 | |
Interest income recognized during impairment | 292 | 273 | 618 | 611 | |
Cash-basis interest income recognized | 292 | 276 | 620 | 615 | |
Commercial Real Estate [Member] | |||||
With no related allowance recorded [Abstract] | |||||
With no allowance, Unpaid Principal Balance | 1,210 | 1,210 | 1,615 | ||
With no allowance, Recorded Investment | 1,210 | 1,210 | 1,615 | ||
With related allowance recorded [Abstract] | |||||
With related allowance, Unpaid Principal Balance | 25,921 | 25,921 | 28,203 | ||
With related allowance, Recorded Investment | 25,921 | 25,921 | 28,203 | ||
Allowance Allocated | 610 | 610 | 743 | ||
Impaired loans [Abstract] | |||||
Interest income recognized during impairment | 336 | 454 | 692 | 907 | |
Cash-basis interest income recognized | 334 | 471 | 685 | 922 | |
Commercial Real Estate [Member] | Residential Developed [Member] | |||||
With no related allowance recorded [Abstract] | |||||
With no allowance, Unpaid Principal Balance | 126 | 126 | 531 | ||
With no allowance, Recorded Investment | 126 | 126 | 531 | ||
With related allowance recorded [Abstract] | |||||
With related allowance, Unpaid Principal Balance | 470 | 470 | 550 | ||
With related allowance, Recorded Investment | 470 | 470 | 550 | ||
Allowance Allocated | 31 | 31 | 35 | ||
Impaired loans [Abstract] | |||||
Average of impaired loans | 682 | 4,085 | 810 | 4,308 | |
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 | 0 | 0 | 0 | ||
With no allowance, Recorded Investment | 0 | 0 | 0 | ||
With related allowance recorded [Abstract] | |||||
With related allowance, Unpaid Principal Balance | 1,401 | 1,401 | 1,499 | ||
With related allowance, Recorded Investment | 1,401 | 1,401 | 1,499 | ||
Allowance Allocated | 34 | 34 | 43 | ||
Impaired loans [Abstract] | |||||
Average of impaired loans | 1,416 | 1,650 | 1,453 | 1,735 | |
Commercial Real Estate [Member] | Commercial Development [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 | 194 | 194 | 199 | ||
With related allowance, Recorded Investment | 194 | 194 | 199 | ||
Allowance Allocated | 5 | 5 | 5 | ||
Impaired loans [Abstract] | |||||
Average of impaired loans | 195 | 483 | 196 | 505 | |
Commercial Real Estate [Member] | Residential Improved [Member] | |||||
With no related allowance recorded [Abstract] | |||||
With no allowance, Unpaid Principal Balance | 547 | 547 | 547 | ||
With no allowance, Recorded Investment | 547 | 547 | 547 | ||
With related allowance recorded [Abstract] | |||||
With related allowance, Unpaid Principal Balance | 6,124 | 6,124 | 7,323 | ||
With related allowance, Recorded Investment | 6,124 | 6,124 | 7,323 | ||
Allowance Allocated | 178 | 178 | 240 | ||
Impaired loans [Abstract] | |||||
Average of impaired loans | 7,018 | 9,863 | 7,340 | 10,141 | |
Commercial Real Estate [Member] | Commercial Improved [Member] | |||||
With no related allowance recorded [Abstract] | |||||
With no allowance, Unpaid Principal Balance | 331 | 331 | 331 | ||
With no allowance, Recorded Investment | 331 | 331 | 331 | ||
With related allowance recorded [Abstract] | |||||
With related allowance, Unpaid Principal Balance | 15,307 | 15,307 | 16,113 | ||
With related allowance, Recorded Investment | 15,307 | 15,307 | 16,113 | ||
Allowance Allocated | 342 | 342 | 389 | ||
Impaired loans [Abstract] | |||||
Average of impaired loans | 16,363 | 18,133 | 16,561 | 18,212 | |
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | |||||
With no related allowance recorded [Abstract] | |||||
With no allowance, Unpaid Principal Balance | 206 | 206 | 206 | ||
With no allowance, Recorded Investment | 206 | 206 | 206 | ||
With related allowance recorded [Abstract] | |||||
With related allowance, Unpaid Principal Balance | 2,425 | 2,425 | 2,519 | ||
With related allowance, Recorded Investment | 2,425 | 2,425 | 2,519 | ||
Allowance Allocated | 20 | 20 | 31 | ||
Impaired loans [Abstract] | |||||
Average of impaired loans | 2,650 | 6,404 | 2,678 | 6,562 | |
Consumer [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 | 14,420 | 14,420 | 14,674 | ||
With related allowance, Recorded Investment | 14,420 | 14,420 | 14,495 | ||
Allowance Allocated | 926 | 926 | 893 | ||
Impaired loans [Abstract] | |||||
Average of impaired loans | 14,583 | 14,400 | 14,683 | 14,408 | |
Interest income recognized during impairment | 128 | 137 | 264 | 269 | |
Cash-basis interest income recognized | 128 | $ 137 | 267 | $ 271 | |
Consumer [Member] | Residential Mortgage [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 | 9,030 | 9,030 | 9,492 | ||
With related allowance, Recorded Investment | 9,030 | 9,030 | 9,484 | ||
Allowance Allocated | 556 | 556 | 584 | ||
Consumer [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 [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 | 5,390 | 5,390 | 5,182 | ||
With related allowance, Recorded Investment | 5,390 | 5,390 | 5,011 | ||
Allowance Allocated | 370 | 370 | 309 | ||
Consumer [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) | 6 Months Ended | 9 Months Ended | |
Jun. 30, 2015USD ($)Payment | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract] | |||
Nonaccrual | $ 3,644,000 | $ 8,292,000 | |
Over 90 days Accruing | 72,000 | 134,000 | |
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 1,886,000 | 2,841,000 | |
Loans Not Past Due | 1,128,138,000 | 1,115,642,000 | |
Total ending loans balance | 1,130,024,000 | 1,118,483,000 | |
Specific reserves allocated to customers with modified term loans in troubled debt restructurings | $ 3,987,000 | 4,065,000 | |
Number of consecutive payment before nonaccrual restructured loan is upgraded | Payment | 6 | ||
Reduction of loans designated as TDR and impaired | $ 5,900,000 | ||
Number of months of performance before a loan is removed from TDR | 6 months | ||
30-90 Days [Member] | |||
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | $ 1,105,000 | 671,000 | |
Greater Than 90 Days [Member] | |||
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 781,000 | 2,170,000 | |
Commercial and Industrial [Member] | |||
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract] | |||
Nonaccrual | 2,392,000 | 5,605,000 | |
Over 90 days Accruing | 0 | 0 | |
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 130,000 | 54,000 | |
Loans Not Past Due | 350,072,000 | 327,620,000 | |
Total ending loans balance | 350,202,000 | 327,674,000 | |
Commercial and Industrial [Member] | 30-90 Days [Member] | |||
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 124,000 | 54,000 | |
Commercial and Industrial [Member] | Greater Than 90 Days [Member] | |||
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 6,000 | 0 | |
Commercial Real Estate [Member] | |||
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract] | |||
Nonaccrual | 1,188,000 | 1,906,000 | |
Over 90 days Accruing | 0 | 117,000 | |
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 1,388,000 | 1,627,000 | |
Loans Not Past Due | 473,017,000 | 488,904,000 | |
Total ending loans balance | 474,405,000 | 490,531,000 | |
Commercial Real Estate [Member] | 30-90 Days [Member] | |||
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 702,000 | 200,000 | |
Commercial Real Estate [Member] | Greater Than 90 Days [Member] | |||
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 686,000 | 1,427,000 | |
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 | 174,000 | 245,000 | |
Over 90 days Accruing | 0 | 0 | |
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 0 | 0 | |
Loans Not Past Due | 10,664,000 | 12,771,000 | |
Total ending loans balance | 10,664,000 | 12,771,000 | |
Commercial Real Estate [Member] | Residential Developed [Member] | 30-90 Days [Member] | |||
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 0 | 0 | |
Commercial Real Estate [Member] | Residential Developed [Member] | Greater Than 90 Days [Member] | |||
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 0 | 0 | |
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] | |||
Total Past Due | 0 | 0 | |
Loans Not Past Due | 7,627,000 | 7,496,000 | |
Total ending loans balance | 7,627,000 | 7,496,000 | |
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | 30-90 Days [Member] | |||
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 0 | 0 | |
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | Greater Than 90 Days [Member] | |||
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 0 | 0 | |
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 | 0 | 0 | |
Over 90 days Accruing | 0 | 0 | |
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 0 | 100,000 | |
Loans Not Past Due | 44,108,000 | 50,272,000 | |
Total ending loans balance | 44,108,000 | 50,372,000 | |
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | 30-90 Days [Member] | |||
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 0 | 100,000 | |
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Greater Than 90 Days [Member] | |||
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 0 | 0 | |
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 | 49,000 | 29,000 | |
Over 90 days Accruing | 0 | 0 | |
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 49,000 | 29,000 | |
Loans Not Past Due | 1,755,000 | 4,053,000 | |
Total ending loans balance | 1,804,000 | 4,082,000 | |
Commercial Real Estate [Member] | Commercial Development [Member] | 30-90 Days [Member] | |||
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 0 | 0 | |
Commercial Real Estate [Member] | Commercial Development [Member] | Greater Than 90 Days [Member] | |||
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 49,000 | 29,000 | |
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 | 589,000 | 766,000 | |
Over 90 days Accruing | 0 | 0 | |
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 460,000 | 540,000 | |
Loans Not Past Due | 68,131,000 | 69,072,000 | |
Total ending loans balance | 68,591,000 | 69,612,000 | |
Commercial Real Estate [Member] | Residential Improved [Member] | 30-90 Days [Member] | |||
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 20,000 | 100,000 | |
Commercial Real Estate [Member] | Residential Improved [Member] | Greater Than 90 Days [Member] | |||
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 440,000 | 440,000 | |
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 | 376,000 | 866,000 | |
Over 90 days Accruing | 0 | 117,000 | |
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 879,000 | 958,000 | |
Loans Not Past Due | 269,266,000 | 268,799,000 | |
Total ending loans balance | 270,145,000 | 269,757,000 | |
Commercial Real Estate [Member] | Commercial Improved [Member] | 30-90 Days [Member] | |||
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 682,000 | 0 | |
Commercial Real Estate [Member] | Commercial Improved [Member] | Greater Than 90 Days [Member] | |||
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 197,000 | 958,000 | |
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 | 0 | |
Over 90 days Accruing | 0 | 0 | |
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 0 | 0 | |
Loans Not Past Due | 71,466,000 | 76,441,000 | |
Total ending loans balance | 71,466,000 | 76,441,000 | |
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | 30-90 Days [Member] | |||
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 0 | 0 | |
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | Greater Than 90 Days [Member] | |||
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 0 | 0 | |
Consumer [Member] | |||
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract] | |||
Nonaccrual | 64,000 | 781,000 | |
Over 90 days Accruing | 72,000 | 17,000 | |
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 368,000 | 1,160,000 | |
Loans Not Past Due | 305,049,000 | 299,118,000 | |
Total ending loans balance | 305,417,000 | 300,278,000 | |
Consumer [Member] | 30-90 Days [Member] | |||
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 279,000 | 417,000 | |
Consumer [Member] | Greater Than 90 Days [Member] | |||
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 89,000 | 743,000 | |
Consumer [Member] | Residential Mortgage [Member] | |||
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract] | |||
Nonaccrual | 2,000 | 305,000 | |
Over 90 days Accruing | 0 | 0 | |
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 234,000 | 641,000 | |
Loans Not Past Due | 199,738,000 | 189,608,000 | |
Total ending loans balance | 199,972,000 | 190,249,000 | |
Consumer [Member] | Residential Mortgage [Member] | 30-90 Days [Member] | |||
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 234,000 | 338,000 | |
Consumer [Member] | Residential Mortgage [Member] | Greater Than 90 Days [Member] | |||
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 0 | 303,000 | |
Consumer [Member] | Unsecured [Member] | |||
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract] | |||
Nonaccrual | 34,000 | 40,000 | |
Over 90 days Accruing | 0 | 0 | |
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 16,000 | 18,000 | |
Loans Not Past Due | 748,000 | 930,000 | |
Total ending loans balance | 764,000 | 948,000 | |
Consumer [Member] | Unsecured [Member] | 30-90 Days [Member] | |||
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 16,000 | 0 | |
Consumer [Member] | Unsecured [Member] | Greater Than 90 Days [Member] | |||
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 0 | 18,000 | |
Consumer [Member] | Home Equity [Member] | |||
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract] | |||
Nonaccrual | 11,000 | 436,000 | |
Over 90 days Accruing | 72,000 | 17,000 | |
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 101,000 | 501,000 | |
Loans Not Past Due | 94,941,000 | 98,386,000 | |
Total ending loans balance | 95,042,000 | 98,887,000 | |
Consumer [Member] | Home Equity [Member] | 30-90 Days [Member] | |||
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 29,000 | 79,000 | |
Consumer [Member] | Home Equity [Member] | Greater Than 90 Days [Member] | |||
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 72,000 | 422,000 | |
Consumer [Member] | Other Secured [Member] | |||
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract] | |||
Nonaccrual | 17,000 | 0 | |
Over 90 days Accruing | 0 | 0 | |
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 17,000 | 0 | |
Loans Not Past Due | 9,622,000 | 10,194,000 | |
Total ending loans balance | 9,639,000 | 10,194,000 | |
Consumer [Member] | Other Secured [Member] | 30-90 Days [Member] | |||
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | 0 | 0 | |
Consumer [Member] | Other Secured [Member] | Greater Than 90 Days [Member] | |||
Aging of recorded investment in past due loans by class of loans [Abstract] | |||
Total Past Due | $ 17,000 | $ 0 |
LOANS, Troubled Debt Restructur
LOANS, Troubled Debt Restructuring (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015USD ($)Loan | Jun. 30, 2014USD ($)Loan | Jun. 30, 2015USD ($)Loan | Jun. 30, 2014USD ($)Loan | Dec. 31, 2014USD ($)Loan | |
Troubled debt restructurings [Abstract] | |||||
Number of Loans | Loan | 242 | 242 | 226 | ||
Outstanding Recorded Balance | $ 46,956 | $ 46,956 | $ 53,397 | ||
Accruing troubled debt restructurings [Abstract] | |||||
Accruing TDR - nonaccrual at restructuring | 0 | 0 | 0 | ||
Accruing TDR - accruing at restructuring | 43,617 | 43,617 | 46,197 | ||
Accruing TDR - upgraded to accruing after six consecutive payments | 0 | 0 | 0 | ||
Total | $ 43,617 | $ 43,617 | $ 46,197 | ||
Troubled debt restructurings executed during current period [Abstract] | |||||
Number of Loans | Loan | 2 | 7 | 33 | 13 | |
Pre-Modification Outstanding Recorded Balance | $ 72 | $ 1,853 | $ 1,203 | $ 4,180 | |
Principal Write-down upon Modification | $ 0 | $ 0 | $ 0 | $ 0 | |
Commercial and Industrial [Member] | |||||
Troubled debt restructurings [Abstract] | |||||
Number of Loans | Loan | 36 | 36 | 36 | ||
Outstanding Recorded Balance | $ 5,405 | $ 5,405 | $ 9,085 | ||
Troubled debt restructurings executed during current period [Abstract] | |||||
Number of Loans | Loan | 0 | 0 | 1 | 1 | |
Pre-Modification Outstanding Recorded Balance | $ 0 | $ 0 | $ 408 | $ 60 | |
Principal Write-down upon Modification | $ 0 | $ 0 | $ 0 | $ 0 | |
Loans that became delinquent more than 90 days past due or transferred to nonaccrual within 12 months of restructuring [Abstract] | |||||
Number of Loans | Loan | 0 | 0 | 0 | 0 | |
Outstanding Recorded Balance | $ 0 | $ 0 | $ 0 | $ 0 | |
Commercial Real Estate [Member] | |||||
Troubled debt restructurings [Abstract] | |||||
Number of Loans | Loan | 74 | 74 | 84 | ||
Outstanding Recorded Balance | $ 27,131 | $ 27,131 | $ 29,817 | ||
Troubled debt restructurings executed during current period [Abstract] | |||||
Number of Loans | Loan | 0 | 6 | 1 | 10 | |
Pre-Modification Outstanding Recorded Balance | $ 0 | $ 1,783 | $ 42 | $ 4,046 | |
Principal Write-down upon Modification | $ 0 | $ 0 | $ 0 | $ 0 | |
Loans that became delinquent more than 90 days past due or transferred to nonaccrual within 12 months of restructuring [Abstract] | |||||
Number of Loans | Loan | 0 | 0 | 0 | 1 | |
Outstanding Recorded Balance | $ 0 | $ 0 | $ 0 | $ 131 | |
Consumer [Member] | |||||
Troubled debt restructurings [Abstract] | |||||
Number of Loans | Loan | 132 | 132 | 106 | ||
Outstanding Recorded Balance | $ 14,420 | $ 14,420 | $ 14,495 | ||
Troubled debt restructurings executed during current period [Abstract] | |||||
Number of Loans | Loan | 2 | 1 | 31 | 2 | |
Pre-Modification Outstanding Recorded Balance | $ 72 | $ 70 | $ 753 | $ 74 | |
Principal Write-down upon Modification | $ 0 | $ 0 | $ 0 | $ 0 | |
Loans that became delinquent more than 90 days past due or transferred to nonaccrual within 12 months of restructuring [Abstract] | |||||
Number of Loans | Loan | 0 | 0 | 0 | 0 | |
Outstanding Recorded Balance | $ 0 | $ 0 | $ 0 | $ 0 |
LOANS, Credit Quality Indicator
LOANS, Credit Quality Indicators (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015USD ($)Grading | Dec. 31, 2014USD ($) | |
Risk grade category of commercial loans by class of loans [Abstract] | ||
Number point grading system used for loan quality | Grading | 8 | |
Total loans | $ 824,607 | $ 818,205 |
Internal ratings of loans considered substandard, or worse | 6 or worse | |
Excellent [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | $ 239 | 343 |
Above Average [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 16,910 | 17,180 |
Good Quality [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 252,072 | 238,208 |
Acceptable Risk [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 494,660 | 494,080 |
Marginally Acceptable [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 50,434 | 52,090 |
Substandard [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 6,712 | 8,793 |
Doubtful [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 3,580 | 7,511 |
Loss [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | 0 |
Commercial Loans [Member] | Substandard or Worse [Member] | ||
Loans classified as substandard or worse [Abstract] | ||
Not classified as impaired | 1,891 | 4,220 |
Classified as impaired | 8,401 | 12,084 |
Loans classified as substandard or worse | 10,292 | 16,304 |
Commercial and Industrial [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 350,202 | 327,674 |
Commercial and Industrial [Member] | Excellent [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 239 | 343 |
Commercial and Industrial [Member] | Above Average [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 10,932 | 11,177 |
Commercial and Industrial [Member] | Good Quality [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 133,304 | 118,382 |
Commercial and Industrial [Member] | Acceptable Risk [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 192,471 | 182,651 |
Commercial and Industrial [Member] | Marginally Acceptable [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 9,845 | 8,448 |
Commercial and Industrial [Member] | Substandard [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 1,019 | 1,068 |
Commercial and Industrial [Member] | Doubtful [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 2,392 | 5,605 |
Commercial and Industrial [Member] | Loss [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | 0 |
Commercial and Industrial [Member] | Residential Developed [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 10,664 | |
Commercial and Industrial [Member] | Residential Developed [Member] | Excellent [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | |
Commercial and Industrial [Member] | Residential Developed [Member] | Above Average [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | |
Commercial and Industrial [Member] | Residential Developed [Member] | Good Quality [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 2,204 | |
Commercial and Industrial [Member] | Residential Developed [Member] | Acceptable Risk [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 4,917 | |
Commercial and Industrial [Member] | Residential Developed [Member] | Marginally Acceptable [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 2,563 | |
Commercial and Industrial [Member] | Residential Developed [Member] | Substandard [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 806 | |
Commercial and Industrial [Member] | Residential Developed [Member] | Doubtful [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 174 | |
Commercial and Industrial [Member] | Residential Developed [Member] | Loss [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | |
Commercial and Industrial [Member] | Unsecured to Residential Developers [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 7,627 | |
Commercial and Industrial [Member] | Unsecured to Residential Developers [Member] | Excellent [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | |
Commercial and Industrial [Member] | Unsecured to Residential Developers [Member] | Above Average [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | |
Commercial and Industrial [Member] | Unsecured to Residential Developers [Member] | Good Quality [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | |
Commercial and Industrial [Member] | Unsecured to Residential Developers [Member] | Acceptable Risk [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 7,627 | |
Commercial and Industrial [Member] | Unsecured to Residential Developers [Member] | Marginally Acceptable [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | |
Commercial and Industrial [Member] | Unsecured to Residential Developers [Member] | Substandard [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | |
Commercial and Industrial [Member] | Unsecured to Residential Developers [Member] | Doubtful [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | |
Commercial and Industrial [Member] | Unsecured to Residential Developers [Member] | Loss [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | |
Commercial and Industrial [Member] | Vacant and Unimproved [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 44,108 | |
Commercial and Industrial [Member] | Vacant and Unimproved [Member] | Excellent [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | |
Commercial and Industrial [Member] | Vacant and Unimproved [Member] | Above Average [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | |
Commercial and Industrial [Member] | Vacant and Unimproved [Member] | Good Quality [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 15,701 | |
Commercial and Industrial [Member] | Vacant and Unimproved [Member] | Acceptable Risk [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 21,548 | |
Commercial and Industrial [Member] | Vacant and Unimproved [Member] | Marginally Acceptable [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 6,859 | |
Commercial and Industrial [Member] | Vacant and Unimproved [Member] | Substandard [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | |
Commercial and Industrial [Member] | Vacant and Unimproved [Member] | Doubtful [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | |
Commercial and Industrial [Member] | Vacant and Unimproved [Member] | Loss [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | |
Commercial and Industrial [Member] | Commercial Development [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 1,804 | |
Commercial and Industrial [Member] | Commercial Development [Member] | Excellent [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | |
Commercial and Industrial [Member] | Commercial Development [Member] | Above Average [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | |
Commercial and Industrial [Member] | Commercial Development [Member] | Good Quality [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | |
Commercial and Industrial [Member] | Commercial Development [Member] | Acceptable Risk [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 1,362 | |
Commercial and Industrial [Member] | Commercial Development [Member] | Marginally Acceptable [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 199 | |
Commercial and Industrial [Member] | Commercial Development [Member] | Substandard [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 194 | |
Commercial and Industrial [Member] | Commercial Development [Member] | Doubtful [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 49 | |
Commercial and Industrial [Member] | Commercial Development [Member] | Loss [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | |
Commercial and Industrial [Member] | Residential Improved [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 68,591 | |
Commercial and Industrial [Member] | Residential Improved [Member] | Excellent [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | |
Commercial and Industrial [Member] | Residential Improved [Member] | Above Average [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | |
Commercial and Industrial [Member] | Residential Improved [Member] | Good Quality [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 16,155 | |
Commercial and Industrial [Member] | Residential Improved [Member] | Acceptable Risk [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 44,748 | |
Commercial and Industrial [Member] | Residential Improved [Member] | Marginally Acceptable [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 5,283 | |
Commercial and Industrial [Member] | Residential Improved [Member] | Substandard [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 1,816 | |
Commercial and Industrial [Member] | Residential Improved [Member] | Doubtful [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 589 | |
Commercial and Industrial [Member] | Residential Improved [Member] | Loss [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | |
Commercial and Industrial [Member] | Commercial Improved [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 270,145 | |
Commercial and Industrial [Member] | Commercial Improved [Member] | Excellent [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | |
Commercial and Industrial [Member] | Commercial Improved [Member] | Above Average [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 4,782 | |
Commercial and Industrial [Member] | Commercial Improved [Member] | Good Quality [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 56,518 | |
Commercial and Industrial [Member] | Commercial Improved [Member] | Acceptable Risk [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 184,891 | |
Commercial and Industrial [Member] | Commercial Improved [Member] | Marginally Acceptable [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 21,022 | |
Commercial and Industrial [Member] | Commercial Improved [Member] | Substandard [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 2,556 | |
Commercial and Industrial [Member] | Commercial Improved [Member] | Doubtful [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 376 | |
Commercial and Industrial [Member] | Commercial Improved [Member] | Loss [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | |
Commercial and Industrial [Member] | Manufacturing & Industrial [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 71,466 | |
Commercial and Industrial [Member] | Manufacturing & Industrial [Member] | Excellent [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | |
Commercial and Industrial [Member] | Manufacturing & Industrial [Member] | Above Average [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 1,196 | |
Commercial and Industrial [Member] | Manufacturing & Industrial [Member] | Good Quality [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 28,190 | |
Commercial and Industrial [Member] | Manufacturing & Industrial [Member] | Acceptable Risk [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 37,096 | |
Commercial and Industrial [Member] | Manufacturing & Industrial [Member] | Marginally Acceptable [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 4,663 | |
Commercial and Industrial [Member] | Manufacturing & Industrial [Member] | Substandard [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 321 | |
Commercial and Industrial [Member] | Manufacturing & Industrial [Member] | Doubtful [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | |
Commercial and Industrial [Member] | Manufacturing & Industrial [Member] | Loss [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | |
Commercial Real Estate [Member] | Residential Developed [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 12,771 | |
Commercial Real Estate [Member] | Residential Developed [Member] | Excellent [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 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 | |
Commercial Real Estate [Member] | Residential Developed [Member] | Good Quality [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 2,491 | |
Commercial Real Estate [Member] | Residential Developed [Member] | Acceptable Risk [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 4,702 | |
Commercial Real Estate [Member] | Residential Developed [Member] | Marginally Acceptable [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 4,491 | |
Commercial Real Estate [Member] | Residential Developed [Member] | Substandard [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 842 | |
Commercial Real Estate [Member] | Residential Developed [Member] | Doubtful [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 245 | |
Commercial Real Estate [Member] | Residential Developed [Member] | Loss [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | |
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 7,496 | |
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 | |
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 | |
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 | |
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 | 7,496 | |
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 | 0 | |
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 | |
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 | |
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 | |
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 50,372 | |
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Excellent [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 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 | |
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Good Quality [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 12,105 | |
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Acceptable Risk [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 30,997 | |
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Marginally Acceptable [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 7,241 | |
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Substandard [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 29 | |
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Doubtful [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | |
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Loss [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | |
Commercial Real Estate [Member] | Commercial Development [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 4,082 | |
Commercial Real Estate [Member] | Commercial Development [Member] | Excellent [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 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 | |
Commercial Real Estate [Member] | Commercial Development [Member] | Good Quality [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | |
Commercial Real Estate [Member] | Commercial Development [Member] | Acceptable Risk [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 3,643 | |
Commercial Real Estate [Member] | Commercial Development [Member] | Marginally Acceptable [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 211 | |
Commercial Real Estate [Member] | Commercial Development [Member] | Substandard [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 199 | |
Commercial Real Estate [Member] | Commercial Development [Member] | Doubtful [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 29 | |
Commercial Real Estate [Member] | Commercial Development [Member] | Loss [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | |
Commercial Real Estate [Member] | Residential Improved [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 69,612 | |
Commercial Real Estate [Member] | Residential Improved [Member] | Excellent [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | |
Commercial Real Estate [Member] | Residential Improved [Member] | Above Average [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 103 | |
Commercial Real Estate [Member] | Residential Improved [Member] | Good Quality [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 16,291 | |
Commercial Real Estate [Member] | Residential Improved [Member] | Acceptable Risk [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 43,928 | |
Commercial Real Estate [Member] | Residential Improved [Member] | Marginally Acceptable [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 6,428 | |
Commercial Real Estate [Member] | Residential Improved [Member] | Substandard [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 2,096 | |
Commercial Real Estate [Member] | Residential Improved [Member] | Doubtful [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 766 | |
Commercial Real Estate [Member] | Residential Improved [Member] | Loss [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | |
Commercial Real Estate [Member] | Commercial Improved [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 269,757 | |
Commercial Real Estate [Member] | Commercial Improved [Member] | Excellent [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | |
Commercial Real Estate [Member] | Commercial Improved [Member] | Above Average [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 4,392 | |
Commercial Real Estate [Member] | Commercial Improved [Member] | Good Quality [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 61,543 | |
Commercial Real Estate [Member] | Commercial Improved [Member] | Acceptable Risk [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 178,169 | |
Commercial Real Estate [Member] | Commercial Improved [Member] | Marginally Acceptable [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 20,558 | |
Commercial Real Estate [Member] | Commercial Improved [Member] | Substandard [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 4,229 | |
Commercial Real Estate [Member] | Commercial Improved [Member] | Doubtful [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 866 | |
Commercial Real Estate [Member] | Commercial Improved [Member] | Loss [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | |
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 76,441 | |
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | Excellent [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | |
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | Above Average [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 1,508 | |
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | Good Quality [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 27,396 | |
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | Acceptable Risk [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 42,494 | |
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | Marginally Acceptable [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 4,713 | |
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | Substandard [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 330 | |
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | Doubtful [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | |
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | Loss [Member] | ||
Risk grade category of commercial loans by class of loans [Abstract] | ||
Total loans | 0 | |
Consumer Loan [Member] | Residential Mortgage [Member] | ||
Recorded investment in consumer loans based on payment activity [Abstract] | ||
Recorded investment in consumer loans | 199,972 | 190,249 |
Consumer Loan [Member] | Residential Mortgage [Member] | Performing [Member] | ||
Recorded investment in consumer loans based on payment activity [Abstract] | ||
Recorded investment in consumer loans | 199,972 | 189,946 |
Consumer Loan [Member] | Residential Mortgage [Member] | Nonperforming [Member] | ||
Recorded investment in consumer loans based on payment activity [Abstract] | ||
Recorded investment in consumer loans | 0 | 303 |
Consumer Loan [Member] | Unsecured [Member] | ||
Recorded investment in consumer loans based on payment activity [Abstract] | ||
Recorded investment in consumer loans | 764 | 948 |
Consumer Loan [Member] | Unsecured [Member] | Performing [Member] | ||
Recorded investment in consumer loans based on payment activity [Abstract] | ||
Recorded investment in consumer loans | 764 | 930 |
Consumer Loan [Member] | Unsecured [Member] | Nonperforming [Member] | ||
Recorded investment in consumer loans based on payment activity [Abstract] | ||
Recorded investment in consumer loans | 0 | 18 |
Consumer Loan [Member] | Home Equity [Member] | ||
Recorded investment in consumer loans based on payment activity [Abstract] | ||
Recorded investment in consumer loans | 95,042 | 98,887 |
Consumer Loan [Member] | Home Equity [Member] | Performing [Member] | ||
Recorded investment in consumer loans based on payment activity [Abstract] | ||
Recorded investment in consumer loans | 94,970 | 98,465 |
Consumer Loan [Member] | Home Equity [Member] | Nonperforming [Member] | ||
Recorded investment in consumer loans based on payment activity [Abstract] | ||
Recorded investment in consumer loans | 72 | 422 |
Consumer Loan [Member] | Other Secured [Member] | ||
Recorded investment in consumer loans based on payment activity [Abstract] | ||
Recorded investment in consumer loans | 9,639 | 10,194 |
Consumer Loan [Member] | Other Secured [Member] | Performing [Member] | ||
Recorded investment in consumer loans based on payment activity [Abstract] | ||
Recorded investment in consumer loans | 9,622 | 10,194 |
Consumer Loan [Member] | Other Secured [Member] | Nonperforming [Member] | ||
Recorded investment in consumer loans based on payment activity [Abstract] | ||
Recorded investment in consumer loans | $ 17 | $ 0 |
OTHER REAL ESTATE OWNED (Detail
OTHER REAL ESTATE OWNED (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Jun. 30, 2015 | |
Period-end other real estate owned [Roll Forward] | ||||
Beginning balance | $ 43,071 | $ 53,501 | $ 53,501 | |
Additions, transfers from loans | 1,442 | 2,274 | 4,932 | |
Proceeds from sales of other real estate owned | (2,962) | (7,362) | (12,487) | |
Valuation allowance reversal upon sale | (427) | (2,564) | (3,499) | |
Gain (loss) on sale of other real estate owned | 205 | 476 | 624 | |
Other real estate owned, gross | 41,329 | 46,325 | 43,071 | |
Less: valuation allowance | (14,829) | (14,802) | (14,829) | $ (15,026) |
Ending balance | 31,523 | 28,242 | $ 26,303 | |
Activity in valuation allowance [Roll Forward] | ||||
Beginning balance | 14,829 | 16,705 | 16,705 | |
Additions charged to expense | 624 | 661 | ||
Reversals upon sale | (427) | (2,564) | ||
Ending balance | $ 15,026 | $ 14,802 | $ 14,829 |
FAIR VALUE (Details)
FAIR VALUE (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015USD ($) | Jun. 30, 2015USD ($)Level | Dec. 31, 2014USD ($) | |
FAIR VALUE [Abstract] | |||
Number of levels of input | Level | 3 | ||
Recurring Basis [Member] | |||
Asset measured at fair value on recurring basis [Abstract] | |||
U.S. Treasury and federal agency securities | $ 70,541 | $ 70,541 | $ 67,164 |
U.S. Agency MBS and CMOs | 14,774 | 14,774 | 16,688 |
Tax-exempt state and municipal bonds | 34,897 | 34,897 | 37,461 |
Taxable state and municipal bonds | 24,425 | 24,425 | 25,293 |
Corporate bonds and other debt securities | 12,732 | 12,732 | 13,766 |
Other equity securities | 1,497 | 1,497 | 1,502 |
Loans held for sale | 5,114 | 5,114 | 2,347 |
Interest rate swaps | 184 | 184 | 140 |
Interest rate swaps | (184) | (184) | (140) |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Asset measured at fair value on recurring basis [Abstract] | |||
U.S. Treasury and federal agency securities | 0 | 0 | 0 |
U.S. Agency MBS and CMOs | 0 | 0 | 0 |
Tax-exempt state and municipal bonds | 0 | 0 | 0 |
Taxable state and municipal bonds | 0 | 0 | 0 |
Corporate bonds and other debt securities | 0 | 0 | 0 |
Other equity securities | 0 | 0 | 0 |
Loans held for sale | 0 | 0 | 0 |
Interest rate swaps | 0 | 0 | 0 |
Interest rate swaps | 0 | 0 | 0 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Asset measured at fair value on recurring basis [Abstract] | |||
U.S. Treasury and federal agency securities | 70,541 | 70,541 | 67,164 |
U.S. Agency MBS and CMOs | 14,774 | 14,774 | 16,688 |
Tax-exempt state and municipal bonds | 34,897 | 34,897 | 37,461 |
Taxable state and municipal bonds | 24,425 | 24,425 | 25,293 |
Corporate bonds and other debt securities | 12,732 | 12,732 | 13,766 |
Other equity securities | 1,497 | 1,497 | 1,502 |
Loans held for sale | 5,114 | 5,114 | 2,347 |
Interest rate swaps | 0 | 0 | 0 |
Interest rate swaps | 0 | 0 | 0 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Asset measured at fair value on recurring basis [Abstract] | |||
U.S. Treasury and federal agency securities | 0 | 0 | 0 |
U.S. Agency MBS and CMOs | 0 | 0 | 0 |
Tax-exempt state and municipal bonds | 0 | 0 | 0 |
Taxable state and municipal bonds | 0 | 0 | 0 |
Corporate bonds and other debt securities | 0 | 0 | 0 |
Other equity securities | 0 | 0 | 0 |
Loans held for sale | 0 | 0 | 0 |
Interest rate swaps | 184 | 184 | 140 |
Interest rate swaps | (184) | (184) | (140) |
Nonrecurring Basis [Member] | |||
Asset measured at fair value on non-recurring basis [Abstract] | |||
Impaired loans | 7,779 | 7,779 | 12,649 |
Other real estate owned | 22,577 | 22,577 | 22,472 |
Nonrecurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Asset measured at fair value on non-recurring basis [Abstract] | |||
Impaired loans | 0 | 0 | 0 |
Other real estate owned | 0 | 0 | 0 |
Nonrecurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Asset measured at fair value on non-recurring basis [Abstract] | |||
Impaired loans | 0 | 0 | 0 |
Other real estate owned | 0 | 0 | 0 |
Nonrecurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Asset measured at fair value on non-recurring basis [Abstract] | |||
Impaired loans | 7,779 | 7,779 | 12,649 |
Other real estate owned | 22,577 | 22,577 | 22,472 |
Impaired Loans [Member] | Sales Comparison Approach [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Asset (liability) fair value | $ 7,779 | 7,779 | $ 12,649 |
Impaired Loans [Member] | Sales Comparison Approach [Member] | Minimum [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Adjustment for differences between comparable sales (in hundredths) | 1.00% | 1.00% | |
Impaired Loans [Member] | Sales Comparison Approach [Member] | Maximum [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Adjustment for differences between comparable sales (in hundredths) | 20.00% | 20.00% | |
Impaired Loans [Member] | Income Approach [Member] | Minimum [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Capitalization rate (in hundredths) | 9.50% | 9.50% | |
Impaired Loans [Member] | Income Approach [Member] | Maximum [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Capitalization rate (in hundredths) | 11.00% | 12.00% | |
Other Real Estate Owned [Member] | Sales Comparison Approach [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Asset (liability) fair value | $ 22,577 | $ 22,577 | $ 22,472 |
Other Real Estate Owned [Member] | Sales Comparison Approach [Member] | Minimum [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Adjustment for differences between comparable sales (in hundredths) | 4.50% | 3.00% | |
Other Real Estate Owned [Member] | Sales Comparison Approach [Member] | Maximum [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Adjustment for differences between comparable sales (in hundredths) | 22.00% | 22.70% | |
Other Real Estate Owned [Member] | Income Approach [Member] | Minimum [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Capitalization rate (in hundredths) | 9.50% | 9.50% | |
Other Real Estate Owned [Member] | Income Approach [Member] | Maximum [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Capitalization rate (in hundredths) | 11.00% | 12.00% |
FAIR VALUE, Balance Sheet Group
FAIR VALUE, Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Financial assets [Abstract] | ||
Cash and due from banks | $ 28,853 | $ 31,503 |
Securities held to maturity | 43,810 | 31,428 |
Bank owned life insurance | 28,528 | 28,195 |
Carrying Amount [Member] | ||
Financial assets [Abstract] | ||
FHLB stock | 11,558 | 11,238 |
Commitments to Make Loans [Member] | Carrying Amount [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet credit-related items | 0 | 0 |
Commitments to Make Loans [Member] | Fair Value [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 | 28,853 | 31,503 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value [Member] | ||
Financial assets [Abstract] | ||
Cash and due from banks | 28,853 | 31,503 |
Significant Other Observable Inputs (Level 2) [Member] | Carrying Amount [Member] | ||
Financial assets [Abstract] | ||
Cash equivalents | 112,721 | 97,952 |
Interest-bearing time deposits in other financial | 20,000 | 20,000 |
Loans, net | 1,104,063 | 1,086,872 |
Accrued interest receivable | 3,633 | 3,399 |
Financial liabilities [Abstract] | ||
Deposits | (1,327,813) | (1,306,325) |
Other borrowed funds | (96,836) | (88,107) |
Long-term debt | (41,238) | (41,238) |
Accrued interest payable | (283) | (289) |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value [Member] | ||
Financial assets [Abstract] | ||
Cash equivalents | 112,721 | 97,952 |
Interest-bearing time deposits in other financial | 20,052 | 20,062 |
Loans, net | 1,097,584 | 1,082,675 |
Accrued interest receivable | 3,633 | 3,399 |
Financial liabilities [Abstract] | ||
Deposits | (1,327,724) | (1,306,671) |
Other borrowed funds | (97,555) | (89,066) |
Long-term debt | (35,626) | (35,396) |
Accrued interest payable | (283) | (289) |
Significant Unobservable Inputs (Level 3) [Member] | Carrying Amount [Member] | ||
Financial assets [Abstract] | ||
Securities held to maturity | 43,229 | 31,585 |
Bank owned life insurance | 28,528 | 28,195 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value [Member] | ||
Financial assets [Abstract] | ||
Securities held to maturity | 43,810 | 31,428 |
Bank owned life insurance | $ 28,528 | $ 28,195 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Summary of deposit [Abstract] | ||
Noninterest-bearing demand | $ 389,828 | $ 404,143 |
Interest bearing demand | 348,490 | 340,053 |
Savings and money market accounts | 490,258 | 442,246 |
Certificates of deposit | 99,237 | 119,883 |
Total deposits | 1,327,813 | 1,306,325 |
Certificate of deposits, $100,000 or more denominations | $ 37,800 | $ 50,100 |
OTHER BORROWED FUNDS (Details)
OTHER BORROWED FUNDS (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Advances from Federal Home Loan Bank [Abstract] | ||
Advance amount | $ 96,836,000 | $ 88,107,000 |
Residential and commercial real estate loans pledged as collateral for Federal Home Loan Bank advances | 436,914,000 | 441,252,000 |
Scheduled repayments of FHLB advances [Abstract] | ||
2,015 | 667,000 | |
2,016 | 21,996,000 | |
2,017 | 2,055,000 | |
2,018 | 52,118,000 | |
2,019 | 10,000,000 | |
Thereafter | 10,000,000 | |
Total | 96,836,000 | 88,107,000 |
Federal Reserve Bank borrowings [Abstract] | ||
Unused borrowing capacity to Federal Reserve Bank | 21,600,000 | 22,800,000 |
Commercial and mortgage loans pledged to the Federal Reserve Bank | 24,200,000 | 25,900,000 |
Single Maturity Fixed Rate Advances [Member] | ||
Advances from Federal Home Loan Bank [Abstract] | ||
Advance amount | $ 90,000,000 | $ 80,000,000 |
Range of maturities, earliest | 2,016 | 2,016 |
Range of maturities, last | 2,020 | 2,019 |
Weighted average interest rate (in hundredths) | 1.69% | 1.69% |
Scheduled repayments of FHLB advances [Abstract] | ||
Total | $ 90,000,000 | $ 80,000,000 |
Amortizable Mortgage Advances [Member] | ||
Advances from Federal Home Loan Bank [Abstract] | ||
Advance amount | $ 6,836,000 | $ 8,107,000 |
Range of maturities, earliest | 2,018 | 2,018 |
Range of maturities, last | 2,018 | 2,018 |
Weighted average interest rate (in hundredths) | 3.76% | 3.78% |
Scheduled repayments of FHLB advances [Abstract] | ||
Total | $ 6,836,000 | $ 8,107,000 |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Reconciliation of numerators and denominators of basic and diluted earnings per common share [Abstract] | ||||
Net income available to common shares | $ 3,215 | $ 2,755 | $ 6,055 | $ 5,393 |
Weighted average shares outstanding, including participating stock awards - Basic (in shares) | 33,866,789 | 33,788,431 | 33,866,789 | 33,789,481 |
Dilutive potential common shares [Abstract] | ||||
Stock options (in shares) | 0 | 0 | 0 | 0 |
Stock warrants (in shares) | 0 | 0 | 0 | 0 |
Weighted average shares outstanding - Diluted (in shares) | 33,866,789 | 33,788,431 | 33,866,789 | 33,789,481 |
Basic earnings per common share (in dollars per share) | $ 0.09 | $ 0.08 | $ 0.18 | $ 0.16 |
Diluted earnings per common share (in dollars per share) | $ 0.09 | $ 0.08 | $ 0.18 | $ 0.16 |
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) | 258,361 | 355,328 | 258,361 | 355,328 |
FEDERAL INCOME TAXES (Details)
FEDERAL INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Income tax expense (benefit) [Abstract] | |||||
Current | $ 676 | $ 36 | $ 1,329 | $ 60 | |
Deferred | 744 | 1,195 | 1,336 | 2,348 | |
Income tax expense (benefit) | $ 1,420 | $ 1,231 | $ 2,665 | $ 2,408 | |
Difference between 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 | $ 1,622 | $ 1,395 | $ 3,052 | $ 2,730 | |
Add (deduct) [Abstract] | |||||
Tax-exempt interest income | (127) | (89) | (244) | (174) | |
Bank-owned life insurance | (60) | (61) | (117) | (115) | |
Other, net | (15) | (14) | (26) | (33) | |
Income tax expense (benefit) | 1,420 | $ 1,231 | 2,665 | $ 2,408 | |
Deferred tax assets [Abstract] | |||||
Allowance for loan losses | 6,363 | 6,363 | $ 6,637 | ||
Nonaccrual loan interest | 1,037 | 1,037 | 935 | ||
Valuation allowance on other real estate owned | 5,259 | 5,259 | 5,190 | ||
Unrealized loss on securities available for sale | 0 | 0 | 0 | ||
Other | 551 | 551 | 1,896 | ||
Gross deferred tax assets | 13,210 | 13,210 | 14,658 | ||
Valuation allowance | 0 | 0 | 0 | ||
Total net deferred tax assets | 13,210 | 13,210 | 14,658 | ||
Deferred tax liabilities [Abstract] | |||||
Depreciation | (1,792) | (1,792) | (1,908) | ||
Prepaid expenses | (21) | (21) | (21) | ||
Unrealized gain on securities available for sale | (27) | (27) | (33) | ||
Other | (435) | (435) | (431) | ||
Gross deferred tax liabilities | (2,275) | (2,275) | (2,393) | ||
Net deferred tax asset | 10,935 | 10,935 | 12,265 | ||
Unrecognized tax benefits | $ 0 | $ 0 | $ 0 | ||
Period when unrecognized tax benefits is not expected to significantly increase or decrease | 12 months |
COMMITMENTS AND OFF BALANCE-S50
COMMITMENTS AND OFF BALANCE-SHEET RISK (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
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 | $ 24,200 | $ 14,200 |
Commitments to make loans at fixed rates (in hundredths) | 43.70% | |
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 | $ 139,330 | 81,274 |
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 | 13,027 | 11,862 |
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 | $ 391,015 | $ 389,099 |
CONTINGENCIES (Details)
CONTINGENCIES (Details) - Employment Agreement Litigation, Benj. A. Smith III [Member] - USD ($) | Jan. 27, 2014 | Dec. 31, 2014 |
Loss Contingencies [Line Items] | ||
Monthly entitlement claimed by plaintiff | $ 20,833 | |
Period of monthly damage claims sought for employment agreement | 6 years | |
Settlement liability, net of insurance proceeds | $ 516,000 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) | Jul. 28, 2009shares | Jun. 18, 2009shares | Jun. 30, 2015USD ($)Category | Dec. 31, 2009USD ($)Issuance$ / sharesshares | Dec. 31, 2014USD ($) |
SHAREHOLDERS' EQUITY [Abstract] | |||||
Number of classification of prompt corrective action regulations | Category | 5 | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
CET1 capital (to risk weighted assets), required capital conservation buffer (in hundredths) | 2.50% | ||||
CET1 capital (to risk weighted assets), minimum required for capital adequacy purposes with capital conservation buffer fully phased in (in hundredths) | 7.00% | ||||
CET1 capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations with capital conservation buffer fully phased in (in hundredths) | 8.50% | ||||
Total capital (to risk weighted assets) minimum required for capital adequacy purposes with capital conservation buffer fully phased in (in hundredths) | 10.50% | ||||
Summary of actual capital levels and minimum required levels [Abstract] | |||||
CET1 capital (to risk weighted assets), actual amount | $ 146,392,000 | ||||
CET1 capital (to risk weighted assets), actual ratio (in hundredths) | 10.90% | ||||
Tier 1 capital (to risk weighted assets), actual amount | $ 186,392,000 | $ 174,084,000 | |||
Tier 1 capital (to risk weighted assets), actual ratio (in hundredths) | 13.80% | 14.30% | |||
Total capital (to risk weighted assets), actual amount | $ 203,249,000 | $ 189,353,000 | |||
Total capital (to risk weighted assets), actual ratio (in hundredths) | 15.10% | 15.60% | |||
Tier 1 capital (to average assets), actual amount | $ 186,392,000 | $ 174,084,000 | |||
Tier 1 capital (to average assets), actual ratio (in hundredths) | 11.70% | 11.60% | |||
CET1 capital (to risk weighted assets), minimum required for capital adequacy purposes, amount | $ 60,626,000 | ||||
CET1 capital (to risk weighted assets), minimum required for capital adequacy purposes, ratio (in hundredths) | 4.50% | ||||
Tier 1 capital (to risk weighted assets), minimum required for capital adequacy purposes, amount | $ 80,834,000 | $ 48,706,000 | |||
Tier 1 capital (to risk weighted assets), minimum required for capital adequacy purposes, ratio (in hundredths) | 6.00% | 4.00% | |||
Total capital (to risk weighted assets), minimum required for capital adequacy purposes, amount | $ 107,779,000 | $ 97,420,000 | |||
Total capital (to risk weighted assets) minimum required for capital adequacy purposes, ratio (in hundredths) | 8.00% | 8.00% | |||
Tier 1 capital (to average assets), minimum required for capital adequacy purposes, amount | $ 63,720,000 | $ 59,998,000 | |||
Tier 1 capital (to average assets), minimum required for capital adequacy purposes, ratio (in hundredths) | 4.00% | 4.00% | |||
Trust preferred securities that qualified as Tier one risk based capital | $ 40,000,000 | $ 40,000,000 | |||
Bank [Member] | |||||
Summary of actual capital levels and minimum required levels [Abstract] | |||||
CET1 capital (to risk weighted assets), actual amount | $ 181,020,000 | ||||
CET1 capital (to risk weighted assets), actual ratio (in hundredths) | 13.40% | ||||
Tier 1 capital (to risk weighted assets), actual amount | $ 181,020,000 | $ 170,983,000 | |||
Tier 1 capital (to risk weighted assets), actual ratio (in hundredths) | 13.40% | 14.00% | |||
Total capital (to risk weighted assets), actual amount | $ 197,874,000 | $ 186,276,000 | |||
Total capital (to risk weighted assets), actual ratio (in hundredths) | 14.70% | 15.30% | |||
Tier 1 capital (to average assets), actual amount | $ 181,020,000 | $ 170,983,000 | |||
Tier 1 capital (to average assets), actual ratio (in hundredths) | 11.40% | 11.40% | |||
CET1 capital (to risk weighted assets), minimum required for capital adequacy purposes, amount | $ 60,615,000 | ||||
CET1 capital (to risk weighted assets), minimum required for capital adequacy purposes, ratio (in hundredths) | 4.50% | ||||
Tier 1 capital (to risk weighted assets), minimum required for capital adequacy purposes, amount | $ 80,820,000 | $ 48,788,000 | |||
Tier 1 capital (to risk weighted assets), minimum required for capital adequacy purposes, ratio (in hundredths) | 6.00% | 4.00% | |||
Total capital (to risk weighted assets), minimum required for capital adequacy purposes, amount | $ 107,759,000 | $ 97,575,000 | |||
Total capital (to risk weighted assets) minimum required for capital adequacy purposes, ratio (in hundredths) | 8.00% | 8.00% | |||
Tier 1 capital (to average assets), minimum required for capital adequacy purposes, amount | $ 63,650,000 | $ 59,923,000 | |||
Tier 1 capital (to average assets), minimum required for capital adequacy purposes, ratio (in hundredths) | 4.00% | 4.00% | |||
CET1 capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations, amount | $ 87,555,000 | ||||
CET1 capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations, ratio (in hundredths) | 6.50% | ||||
Tier 1 capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations, amount | $ 107,759,000 | $ 73,182,000 | |||
Tier 1 capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations, ratio (in hundredths) | 8.00% | 6.00% | |||
Total capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations, amount | $ 134,699,000 | $ 121,969,000 | |||
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 average assets) to be well capitalized under prompt corrective action regulations, amount | $ 79,563,000 | $ 74,904,000 | |||
Tier 1 capital (to average assets) to be well capitalized under prompt corrective action regulations, ratio (in hundredths) | 5.00% | 5.00% | |||
Warrant [Member] | |||||
Warrant issued [Abstract] | |||||
Warrants issued to purchase common stock (in shares) | shares | 117,058 | 1,361,753 | 1,478,811 | ||
Exercise price of warrants (in dollars per share) | $ / shares | $ 9 | ||||
Fair value of warrants issued | $ 806,000 | ||||
Fair value per warrant (in dollars per share) | $ / shares | $ 0.54 | ||||
Number of issuance | Issuance | 2 | ||||
Warrants executed (in shares) | shares | 392 | ||||
Warrants exercise period | 5 years | ||||
Warrant [Member] | Issuance on June 18, 2009 [Member] | |||||
Warrant issued [Abstract] | |||||
Warrants expiration date | Jun. 17, 2015 | ||||
Warrant [Member] | Issuance on July 28, 2009 [Member] | |||||
Warrant issued [Abstract] | |||||
Warrants expiration date | Jul. 27, 2015 |