Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Jul. 31, 2014 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'PEOPLES BANCORP OF NORTH CAROLINA INC | ' |
Entity Central Index Key | '0001093672 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' |
Is Entity a Voluntary Filer? | 'No | ' |
Is Entity's Reporting Status Current? | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 5,617,125 |
Document Fiscal Period Focus | 'Q2 | ' |
Document Fiscal Year Focus | '2014 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and due from banks, including reserve requirements of $10,561 and $11,472, respectively | $54,522 | $49,902 |
Interest-bearing deposits | 20,546 | 26,871 |
Cash and cash equivalents | 75,068 | 76,773 |
Investment securities available for sale | 297,165 | 297,890 |
Other investments | 4,706 | 4,990 |
Total securities | 301,871 | 302,880 |
Mortgage loans held for sale | 2,048 | 497 |
Loans | 633,336 | 620,960 |
Less allowance for loan losses | -12,675 | -13,501 |
Net loans | 620,661 | 607,459 |
Premises and equipment, net | 16,762 | 16,358 |
Cash surrender value of life insurance | 13,914 | 13,706 |
Other real estate | 3,532 | 1,679 |
Accrued interest receivable and other assets | 13,996 | 15,332 |
Total assets | 1,047,852 | 1,034,684 |
Deposits: | ' | ' |
Noninterest-bearing demand | 206,655 | 195,265 |
NOW, MMDA & savings | 397,305 | 386,893 |
Time, $100,000 or more | 112,201 | 115,268 |
Other time | 95,318 | 101,935 |
Total deposits | 811,479 | 799,361 |
Securities sold under agreements to repurchase | 46,764 | 45,396 |
FHLB borrowings | 65,000 | 65,000 |
Junior subordinated debentures | 20,619 | 20,619 |
Accrued interest payable and other liabilities | 10,943 | 20,589 |
Total liabilities | 954,805 | 950,965 |
Commitments | ' | ' |
Shareholders' equity: | ' | ' |
Common stock, no par value; authorized 20,000,000 shares; issued and outstanding 5,617,125 and 5,613,495 shares, respectively | 48,170 | 48,133 |
Retained earnings | 41,433 | 36,758 |
Accumulated other comprehensive income (loss) | 3,444 | -1,172 |
Total shareholders' equity | 93,047 | 83,719 |
Total liabilities and shareholders' equity | $1,047,852 | $1,034,684 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Assets | ' | ' |
Cash and due from banks, reserve requirements | $10,561 | $11,472 |
Shareholders' equity: | ' | ' |
Common stock, par value (in dollars per share) | $0 | $0 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 5,617,125 | 5,613,495 |
Common stock, shares outstanding (in shares) | 5,617,125 | 5,613,495 |
Consolidated_Statements_of_Ear
Consolidated Statements of Earnings (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Interest income: | ' | ' | ' | ' |
Interest and fees on loans | $7,491 | $7,439 | $14,893 | $15,079 |
Interest on due from banks | 12 | 28 | 24 | 40 |
Interest on investment securities: | ' | ' | ' | ' |
U.S. Government sponsored enterprises | 804 | 286 | 1,651 | 664 |
States and political subdivisions | 1,169 | 1,069 | 2,346 | 2,053 |
Other | 100 | 87 | 207 | 176 |
Total interest income | 9,576 | 8,909 | 19,121 | 18,012 |
Interest expense: | ' | ' | ' | ' |
NOW, MMDA & savings deposits | 125 | 200 | 251 | 418 |
Time deposits | 303 | 422 | 637 | 889 |
FHLB borrowings | 549 | 635 | 1,094 | 1,296 |
Junior subordinated debentures | 97 | 100 | 193 | 199 |
Other | 11 | 15 | 21 | 32 |
Total interest expense | 1,085 | 1,372 | 2,196 | 2,834 |
Net interest income | 8,491 | 7,537 | 16,925 | 15,178 |
Provision for loan losses | 67 | 773 | -282 | 1,827 |
Net interest income after provision for loan losses | 8,424 | 6,764 | 17,207 | 13,351 |
Non-interest income: | ' | ' | ' | ' |
Service charges | 1,223 | 1,104 | 2,352 | 2,143 |
Other service charges and fees | 260 | 268 | 679 | 642 |
Gain on sale of securities | 0 | 352 | 26 | 614 |
Mortgage banking income | 188 | 315 | 292 | 699 |
Insurance and brokerage commissions | 162 | 178 | 361 | 317 |
Gain/(loss) on sale and write-down of other real estate | 12 | -184 | -150 | -173 |
Miscellaneous | 1,265 | 1,276 | 2,392 | 2,494 |
Total non-interest income | 3,110 | 3,309 | 5,952 | 6,736 |
Non-interest expense: | ' | ' | ' | ' |
Salaries and employee benefits | 4,207 | 4,240 | 8,483 | 8,430 |
Occupancy | 1,466 | 1,320 | 2,988 | 2,632 |
Other | 2,394 | 2,419 | 4,720 | 4,655 |
Total non-interest expense | 8,067 | 7,979 | 16,191 | 15,717 |
Earnings before income taxes | 3,467 | 2,094 | 6,968 | 4,370 |
Income tax expense | 916 | 461 | 1,838 | 979 |
Net earnings | 2,551 | 1,633 | 5,130 | 3,391 |
Dividends and accretion on preferred stock | 0 | 156 | 0 | 313 |
Net earnings available to common shareholders | $2,551 | $1,477 | $5,130 | $3,078 |
Basic and diluted net earnings per common share | $0.45 | $0.26 | $0.91 | $0.55 |
Cash dividends declared per common share | $0.04 | $0.03 | $0.08 | $0.06 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Consolidated Statements Of Comprehensive Income Loss | ' | ' | ' | ' |
Net earnings | $2,551 | $1,633 | $5,130 | $3,391 |
Other comprehensive income (loss): | ' | ' | ' | ' |
Unrealized holding gains (losses) on securities available for sale | 3,726 | -6,583 | 7,586 | -7,798 |
Reclassification adjustment for gains on securities available for sale included in net earnings | 0 | -352 | -26 | -614 |
Total other comprehensive income (loss), before income taxes | 3,726 | -6,935 | 7,560 | -8,412 |
Income tax (benefit) expense related to other comprehensive (loss) income: | ' | ' | ' | ' |
Unrealized holding gains (losses) on securities available for sale | 1,451 | -2,564 | 2,954 | -3,038 |
Reclassification adjustment for gains on securities available for sale included in net earnings | 0 | -137 | -10 | -239 |
Total income tax expense (benefit) related to other comprehensive income (loss) | 1,451 | -2,701 | 2,944 | -3,277 |
Total other comprehensive income (loss), net of tax | 2,275 | -4,234 | 4,616 | -5,135 |
Total comprehensive income (loss) | $4,826 | ($2,601) | $9,746 | ($1,744) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net earnings | $5,130 | $3,391 |
Adjustments to reconcile net earnings to net cash (used) provided by operating activities: | ' | ' |
Depreciation, amortization and accretion | 3,258 | 4,438 |
Provision for loan losses | -282 | 1,827 |
Gain on sale of investment securities | -26 | -614 |
Gain on sale of other real estate | -2 | -86 |
Write-down of other real estate | 152 | 259 |
Restricted stock expense | 167 | 70 |
Change in: | ' | ' |
Mortgage loans held for sale | -1,552 | 920 |
Cash surrender value of life insurance | -208 | -214 |
Other assets | -2,274 | 2,217 |
Other liabilities | 2,877 | -1,381 |
Net cash provided by operating activities | 7,240 | 10,827 |
Cash flows from investing activities: | ' | ' |
Purchases of investment securities available for sale | -13,070 | -59,154 |
Proceeds from calls, maturities and paydowns of investment securities available for sale | 18,415 | 35,031 |
Proceeds from sales of investment securities available for sale | 677 | 17,463 |
FHLB stock redemption | 284 | 384 |
Net change in loans | -15,978 | 7,718 |
Purchases of premises and equipment | -1,372 | -1,666 |
Proceeds from sales of other real estate and repossessions | 1,554 | 3,619 |
Net cash (used) provided by investing activities | -9,490 | 3,395 |
Cash flows from financing activities: | ' | ' |
Net change in deposits | 12,118 | 6,908 |
Net change in securities sold under agreements to repurchase | 1,368 | 11,393 |
Proceeds from FHLB borrowings | 0 | 15,000 |
Repayments of FHLB borrowings | 0 | -15,000 |
Preferred stock repurchase | -12,524 | ' |
Proceeds from stock options exercised | 37 | 0 |
Cash dividends paid on preferred stock | 0 | -313 |
Cash dividends paid on common stock | -454 | -337 |
Net cash provided by financing activities | 545 | 17,651 |
Net change in cash and cash equivalent | -1,705 | 31,873 |
Cash and cash equivalents at beginning of period | 76,773 | 48,843 |
Cash and cash equivalents at end of period | 75,068 | 80,716 |
Cash paid during the period for: | ' | ' |
Interest | 2,217 | 2,889 |
Income taxes | 837 | 1,112 |
Noncash investing and financing activities: | ' | ' |
Change in unrealized gain on investment securities available for sale, net | 4,616 | -5,135 |
Transfers of loans to other real estate and repossessions | 3,288 | 2,003 |
Financed portion of sales of other real estate | $230 | $40 |
1_Summary_of_Significant_Accou
1. Summary of Significant Accounting Policies | 6 Months Ended | |
Jun. 30, 2014 | ||
Accounting Policies [Abstract] | ' | |
1. Summary of Significant Accounting Policies | ' | |
-1 | Summary of Significant Accounting Policies | |
The consolidated financial statements include the financial statements of Peoples Bancorp of North Carolina, Inc. and its wholly owned subsidiaries, Peoples Bank (the “Bank”) and Community Bank Real Estate Solutions, LLC, along with the Bank’s wholly owned subsidiaries, Peoples Investment Services, Inc. and Real Estate Advisory Services, Inc. (“REAS”) (collectively called the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation. | ||
The consolidated financial statements in this report (other than the Consolidated Balance Sheet at December 31, 2013) are unaudited. In the opinion of management, all adjustments (none of which were other than normal accruals) necessary for a fair presentation of the financial position and results of operations for the periods presented have been included. Management of the Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these consolidated financial statements in conformity with generally accepted accounting principles in the United States (“GAAP”). Actual results could differ from those estimates. | ||
The Company’s accounting policies are fundamental to understanding management’s discussion and analysis of results of operations and financial condition. Many of the Company’s accounting policies require significant judgment regarding valuation of assets and liabilities and/or significant interpretation of the specific accounting guidance. A description of the Company’s significant accounting policies can be found in Note 1 of the Notes to Consolidated Financial Statements in the Company’s 2013 Annual Report to Shareholders which is Appendix A to the Proxy Statement for the May 1, 2014 Annual Meeting of Shareholders. | ||
Recently Issued Accounting Pronouncements | ||
In January 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-04, (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. ASU No. 2014-04 provides additional guidance to clarify when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan should be derecognized and the real estate property recognized. ASU No. 2014-04 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. | ||
In May 2014, the FASB issued ASU No. 2014-09, (Topic 606): Revenue from Contracts with Customers. ASU No. 2014-09 provides guidance on the recognition of revenue from contracts with customers. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. ASU No. 2014-09 is effective for reporting periods beginning after December 15, 2016. The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. | ||
In June 2014, the FASB issued ASU No. 2014-11, (Subtopic 860-10): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. ASU No. 2014-11 makes limited amendments to the guidance in FASB Accounting Standards Codification ("ASC") 860, Transfers and Servicing, on accounting for certain repurchase agreements (repos). ASU No. 2014-1 (1) requires entities to account for repurchase-to-maturity transactions as secured borrowings (rather than as sales with forward repurchase agreements), (2) eliminates accounting guidance on linked repurchase financing transactions, and (3) expands disclosure requirements related to certain transfers of financial assets that are accounted for as sales and certain transfers (specifically, repos, securities lending transactions, and repurchase-to-maturity transactions) accounted for as secured borrowings. ASU 2014-11 also amends FASB ASC 860 to clarify that repos and securities lending transactions that do not meet all of the derecognition criteria should be accounted for as secured borrowings. In addition, ASU No. 2014-11provides examples of repurchase and securities lending arrangements that illustrate whether a transferor has maintained effective control over the transferred financial assets. ASU No. 2014-11 is effective for reporting periods beginning the first interim or annual period after December 15, 2014. The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. | ||
Other accounting standards that have been issued or proposed by FASB or other standards-setting bodies are not expected to have a material impact on the Company’s results of operations, financial position or disclosures. |
2_Investment_Securities
2. Investment Securities | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||
Investment Securities | ' | ||||||||||||
-2 | Investment Securities | ||||||||||||
Investment securities available for sale at June 30, 2014 and December 31, 2013 are as follows: | |||||||||||||
(Dollars in thousands) | |||||||||||||
30-Jun-14 | |||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||
Cost | Unrealized | Unrealized | Fair Value | ||||||||||
Gains | Losses | ||||||||||||
Mortgage-backed securities | $ | 115,747 | 1,937 | 170 | 117,514 | ||||||||
U.S. Government | |||||||||||||
sponsored enterprises | 25,211 | 107 | 217 | 25,101 | |||||||||
State and political subdivisions | 145,573 | 4,398 | 1,342 | 148,629 | |||||||||
Corporate bonds | 3,495 | 14 | 22 | 3,487 | |||||||||
Trust preferred securities | 750 | - | - | 750 | |||||||||
Equity securities | 748 | 936 | - | 1,684 | |||||||||
Total | $ | 291,524 | 7,392 | 1,751 | 297,165 | ||||||||
(Dollars in thousands) | |||||||||||||
31-Dec-13 | |||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||
Cost | Unrealized | Unrealized | Fair Value | ||||||||||
Gains | Losses | ||||||||||||
Mortgage-backed securities | $ | 123,706 | 1,040 | 769 | 123,977 | ||||||||
U.S. Government | |||||||||||||
sponsored enterprises | 22,115 | 97 | 69 | 22,143 | |||||||||
State and political subdivisions | 148,468 | 1,987 | 5,087 | 145,368 | |||||||||
Corporate bonds | 3,522 | 11 | 70 | 3,463 | |||||||||
Trust preferred securities | 1,250 | - | - | 1,250 | |||||||||
Equity securities | 748 | 941 | - | 1,689 | |||||||||
Total | $ | 299,809 | 4,076 | 5,995 | 297,890 | ||||||||
The current fair value and associated unrealized losses on investments in securities with unrealized losses at June 30, 2014 and December 31, 2013 are summarized in the tables below, with the length of time the individual securities have been in a continuous loss position. | |||||||||||||
(Dollars in thousands) | |||||||||||||
30-Jun-14 | |||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||
Losses | Losses | Losses | |||||||||||
Mortgage-backed securities | $ | 8,550 | 6 | 18,386 | 164 | 26,936 | 170 | ||||||
U.S. Government | |||||||||||||
sponsored enterprises | 16,483 | 217 | - | - | 16,483 | 217 | |||||||
State and political subdivisions | 12,495 | 40 | 38,905 | 1,302 | 51,400 | 1,342 | |||||||
Corporate bonds | 1,000 | - | 533 | 22 | 1,533 | 22 | |||||||
Total | $ | 38,528 | 263 | 57,824 | 1,488 | 96,352 | 1,751 | ||||||
(Dollars in thousands) | |||||||||||||
31-Dec-13 | |||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||
Losses | Losses | Losses | |||||||||||
Mortgage-backed securities | $ | 40,857 | 691 | 10,128 | 78 | 50,985 | 769 | ||||||
U.S. Government | |||||||||||||
sponsored enterprises | 9,714 | 69 | - | - | 9,714 | 69 | |||||||
State and political subdivisions | 77,187 | 4,863 | 1,824 | 224 | 79,011 | 5,087 | |||||||
Corporate bonds | 1,984 | 16 | 511 | 54 | 2,495 | 70 | |||||||
Total | $ | 129,742 | 5,639 | 12,463 | 356 | 142,205 | 5,995 | ||||||
At June 30, 2014, unrealized losses in the investment securities portfolio relating to debt securities totaled $1.8 million. The unrealized losses on these debt securities arose due to changing interest rates and are considered to be temporary. From the June 30, 2014 tables above, 50 out of 175 securities issued by state and political subdivisions contained unrealized losses, 17 out of 95 securities issued by U.S. Government sponsored enterprises, including mortgage-backed securities, contained unrealized losses, and two out of five securities issued by corporations contained unrealized losses. These unrealized losses are considered temporary because of acceptable financial condition and results of operations on each security and the repayment sources of principal and interest on U.S. Government sponsored enterprises, including mortgage-backed securities, are government backed. | |||||||||||||
The amortized cost and estimated fair value of investment securities available for sale at June 30, 2014, by contractual maturity, are shown below. Expected maturities of mortgage-backed securities will differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||
30-Jun-14 | |||||||||||||
(Dollars in thousands) | |||||||||||||
Amortized | Estimated | ||||||||||||
Cost | Fair Value | ||||||||||||
Due within one year | $ | 4,392 | 4,401 | ||||||||||
Due from one to five years | 37,594 | 38,956 | |||||||||||
Due from five to ten years | 114,940 | 116,246 | |||||||||||
Due after ten years | 18,103 | 18,364 | |||||||||||
Mortgage-backed securities | 115,747 | 117,514 | |||||||||||
Equity securities | 748 | 1,684 | |||||||||||
Total | $ | 291,524 | 297,165 | ||||||||||
Proceeds from sales of securities available for sale during the six months ended June 30, 2014 were $677,000 and resulted in gross gains of $26,000. Proceeds from sales of securities available for sale during the six months ended June 30, 2013 were $17.5 million and resulted in gross gains of $738,000 and gross losses of $124,000. | |||||||||||||
Securities with a fair value of approximately $83.9 million and $86.0 million at June 30, 2014 and December 31, 2013, respectively, were pledged to secure public deposits and for other purposes as required by law. |
3_Loans
3. Loans | 6 Months Ended | |||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||||
Loans | ' | |||||||||||||||||||||
-3 | Loans | |||||||||||||||||||||
Major classifications of loans at June 30, 2014 and December 31, 2013 are summarized as follows: | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||||||||
Real estate loans | ||||||||||||||||||||||
Construction and land development | $ | 59,843 | 63,742 | |||||||||||||||||||
Single-family residential | 196,192 | 195,975 | ||||||||||||||||||||
Single-family residential - | ||||||||||||||||||||||
Banco de la Gente stated income | 48,165 | 49,463 | ||||||||||||||||||||
Commercial | 214,378 | 209,287 | ||||||||||||||||||||
Multifamily and farmland | 11,821 | 11,801 | ||||||||||||||||||||
Total real estate loans | 530,399 | 530,268 | ||||||||||||||||||||
Loans not secured by real estate | ||||||||||||||||||||||
Commercial loans | 78,056 | 68,047 | ||||||||||||||||||||
Farm loans | 93 | 19 | ||||||||||||||||||||
Consumer loans | 10,143 | 9,593 | ||||||||||||||||||||
All other loans | 14,645 | 13,033 | ||||||||||||||||||||
Total loans | 633,336 | 620,960 | ||||||||||||||||||||
Less allowance for loan losses | 12,675 | 13,501 | ||||||||||||||||||||
Total net loans | $ | 620,661 | 607,459 | |||||||||||||||||||
The Bank grants loans and extensions of credit primarily within the Catawba Valley region of North Carolina, which encompasses Catawba, Alexander, Iredell and Lincoln counties, and also in Mecklenburg, Union and Wake counties of North Carolina. Although the Bank has a diversified loan portfolio, a substantial portion of the loan portfolio is collateralized by improved and unimproved real estate, the value of which is dependent upon the real estate market. Risk characteristics of the major components of the Bank’s loan portfolio are discussed below: | ||||||||||||||||||||||
· | Construction and land development loans – The risk of loss is largely dependent on the initial estimate of whether the property’s value at completion equals or exceeds the cost of property construction and the availability of take-out financing. During the construction phase, a number of factors can result in delays or cost overruns. If the estimate is inaccurate or if actual construction costs exceed estimates, the value of the property securing the loan may be insufficient to ensure full repayment when completed through a permanent loan, sale of the property, or by seizure of collateral. As of June 30, 2014, construction and land development loans comprised approximately 9% of the Bank’s total loan portfolio. | |||||||||||||||||||||
· | Single-family residential loans – Declining home sales volumes, decreased real estate values and higher than normal levels of unemployment could contribute to losses on these loans. As of June 30, 2014, single-family residential loans comprised approximately 39% of the Bank’s total loan portfolio, and include Banco de la Gente single-family residential stated income loans, which were approximately 8% of the Bank’s total loan portfolio. | |||||||||||||||||||||
· | Commercial real estate loans – Repayment is dependent on income being generated in amounts sufficient to cover operating expenses and debt service. These loans also involve greater risk because they are generally not fully amortizing over a loan period, but rather have a balloon payment due at maturity. A borrower’s ability to make a balloon payment typically will depend on being able to either refinance the loan or timely sell the underlying property. As of June 30, 2014, commercial real estate loans comprised approximately 34% of the Bank’s total loan portfolio. | |||||||||||||||||||||
· | Commercial loans – Repayment is generally dependent upon the successful operation of the borrower’s business. In addition, the collateral securing the loans may depreciate over time, be difficult to appraise, be illiquid, or fluctuate in value based on the success of the business. As of June 30, 2014, commercial loans comprised approximately 12% of the Bank’s total loan portfolio. | |||||||||||||||||||||
Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are placed on non-accrual status when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. Loans may be placed on non-accrual status regardless of whether or not such loans are considered past due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. | ||||||||||||||||||||||
The following tables present an age analysis of past due loans, by loan type, as of June 30, 2014 and December 31, 2013: | ||||||||||||||||||||||
30-Jun-14 | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Loans 30 | Loans 90 | Total | Total | Total | Accruing | |||||||||||||||||
- 89 Days | or More | Past Due | Current | Loans | Loans 90 or | |||||||||||||||||
Past Due | Days Past | Loans | Loans | More Days | ||||||||||||||||||
Due | Past Due | |||||||||||||||||||||
Real estate loans | ||||||||||||||||||||||
Construction and land development | $ | 830 | 4,862 | 5,692 | 54,151 | 59,843 | - | |||||||||||||||
Single-family residential | 1,453 | 667 | 2,120 | 194,072 | 196,192 | 392 | ||||||||||||||||
Single-family residential - | ||||||||||||||||||||||
Banco de la Gente stated income | 1,874 | 719 | 2,593 | 45,572 | 48,165 | - | ||||||||||||||||
Commercial | 1,652 | 289 | 1,941 | 212,437 | 214,378 | - | ||||||||||||||||
Multifamily and farmland | 169 | - | 169 | 11,652 | 11,821 | - | ||||||||||||||||
Total real estate loans | 5,978 | 6,537 | 12,515 | 517,884 | 530,399 | 392 | ||||||||||||||||
Loans not secured by real estate | ||||||||||||||||||||||
Commercial loans | 1,001 | 49 | 1,050 | 77,006 | 78,056 | - | ||||||||||||||||
Farm loans | - | - | - | 93 | 93 | - | ||||||||||||||||
Consumer loans | 129 | - | 129 | 10,014 | 10,143 | - | ||||||||||||||||
All other loans | - | - | - | 14,645 | 14,645 | - | ||||||||||||||||
Total loans | $ | 7,108 | 6,586 | 13,694 | 619,642 | 633,336 | 392 | |||||||||||||||
31-Dec-13 | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Loans 30- | Loans 90 or More | Total Past Due | Total | Total | Accruing | |||||||||||||||||
89 Days | Days Past | Loans | Current | Loans | Loans 90 or | |||||||||||||||||
Past Due | Due | Loans | More Days | |||||||||||||||||||
Past Due | ||||||||||||||||||||||
Real estate loans | ||||||||||||||||||||||
Construction and land development | $ | 3,416 | 5,426 | 8,842 | 54,900 | 63,742 | - | |||||||||||||||
Single-family residential | 4,518 | 1,555 | 6,073 | 189,902 | 195,975 | - | ||||||||||||||||
Single-family residential - | ||||||||||||||||||||||
Banco de la Gente stated income | 9,833 | 1,952 | 11,785 | 37,678 | 49,463 | 881 | ||||||||||||||||
Commercial | 1,643 | 486 | 2,129 | 207,158 | 209,287 | - | ||||||||||||||||
Multifamily and farmland | 177 | - | 177 | 11,624 | 11,801 | - | ||||||||||||||||
Total real estate loans | 19,587 | 9,419 | 29,006 | 501,262 | 530,268 | 881 | ||||||||||||||||
Loans not secured by real estate | ||||||||||||||||||||||
Commercial loans | 424 | 29 | 453 | 67,594 | 68,047 | - | ||||||||||||||||
Farm loans | - | - | - | 19 | 19 | - | ||||||||||||||||
Consumer loans | 181 | 3 | 184 | 9,409 | 9,593 | 1 | ||||||||||||||||
All other loans | - | - | - | 13,033 | 13,033 | - | ||||||||||||||||
Total loans | $ | 20,192 | 9,451 | 29,643 | 591,317 | 620,960 | 882 | |||||||||||||||
The following table presents the Company’s non-accrual loans as of June 30, 2014 and December 31, 2013: | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||||||||
Real estate loans | ||||||||||||||||||||||
Construction and land development | $ | 5,216 | 6,546 | |||||||||||||||||||
Single-family residential | 1,563 | 2,980 | ||||||||||||||||||||
Single-family residential - | ||||||||||||||||||||||
Banco de la Gente stated income | 1,780 | 1,990 | ||||||||||||||||||||
Commercial | 1,804 | 2,043 | ||||||||||||||||||||
Total real estate loans | 10,363 | 13,559 | ||||||||||||||||||||
Loans not secured by real estate | ||||||||||||||||||||||
Commercial loans | 511 | 250 | ||||||||||||||||||||
Consumer loans | 47 | 27 | ||||||||||||||||||||
Total | $ | 10,921 | 13,836 | |||||||||||||||||||
At each reporting period, the Bank determines which loans are impaired. Accordingly, the Bank’s impaired loans are reported at their estimated fair value on a non-recurring basis. An allowance for each impaired loan that is collateral-dependent is calculated based on the fair value of its collateral. The fair value of the collateral is based on appraisals performed by REAS, a subsidiary of the Bank. REAS is staffed by certified appraisers that also perform appraisals for other companies. Factors including the assumptions and techniques utilized by the appraiser are considered by management. If the recorded investment in the impaired loan exceeds the measure of fair value of the collateral, a valuation allowance is recorded as a component of the allowance for loan losses. An allowance for each impaired loan that is non-collateral dependent is calculated based on the present value of projected cash flows. If the recorded investment in the impaired loan exceeds the present value of projected cash flows, a valuation allowance is recorded as a component of the allowance for loan losses. Impaired loans under $250,000 are not individually evaluated for impairment, with the exception of the Bank’s troubled debt restructured (“TDR”) loans in the residential mortgage loan portfolio, which are individually evaluated for impairment. Accruing impaired loans were $27.7 million, $27.6 million and $26.2 million at June 30, 2014, December 31, 2013 and June 30, 2013, respectively. Interest income recognized on accruing impaired loans was $681,000, $579,000 and $1.3 million for the six months ended June 30, 2014, the six months ended June 30, 2013 and the year ended December 31, 2013, respectively. Interest income recognized on accruing impaired loans was $325,000 and $286,000 for the three months ended June 30, 2014 and 2013, respectively. No interest income is recognized on non-accrual impaired loans subsequent to their classification as non-accrual. | ||||||||||||||||||||||
The following tables present the Company’s impaired loans as of June 30, 2014 and December 31, 2013: | ||||||||||||||||||||||
30-Jun-14 | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Unpaid | Recorded | Recorded | Recorded | Related | Average | |||||||||||||||||
Contractual | Investment | Investment | Investment | Allowance | Outstanding | |||||||||||||||||
Principal | With No | With | in Impaired | Impaired | ||||||||||||||||||
Balance | Allowance | Allowance | Loans | Loans | ||||||||||||||||||
Real estate loans | ||||||||||||||||||||||
Construction and land development | $ | 6,963 | 3,784 | 2,355 | 6,139 | 56 | 6,502 | |||||||||||||||
Single-family residential | 5,972 | 947 | 4,827 | 5,774 | 132 | 7,507 | ||||||||||||||||
Single-family residential - | ||||||||||||||||||||||
Banco de la Gente stated income | 21,758 | - | 21,129 | 21,129 | 1,217 | 20,303 | ||||||||||||||||
Commercial | 4,665 | 2,251 | 2,145 | 4,396 | 256 | 4,463 | ||||||||||||||||
Multifamily and farmland | 169 | - | 169 | 169 | 1 | 172 | ||||||||||||||||
Total impaired real estate loans | 39,527 | 6,982 | 30,625 | 37,607 | 1,662 | 38,947 | ||||||||||||||||
Loans not secured by real estate | ||||||||||||||||||||||
Commercial loans | 849 | - | 755 | 755 | 16 | 895 | ||||||||||||||||
Consumer loans | 303 | 249 | 51 | 300 | 1 | 305 | ||||||||||||||||
Total impaired loans | $ | 40,679 | 7,231 | 31,431 | 38,662 | 1,679 | 40,147 | |||||||||||||||
31-Dec-13 | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Unpaid | Recorded | Recorded | Recorded | Related | Average | |||||||||||||||||
Contractual | Investment | Investment | Investment | Allowance | Outstanding | |||||||||||||||||
Principal | With No | With | in Impaired | Impaired | ||||||||||||||||||
Balance | Allowance | Allowance | Loans | Loans | ||||||||||||||||||
Real estate loans | ||||||||||||||||||||||
Construction and land development | $ | 9,861 | 6,293 | 868 | 7,161 | 53 | 8,289 | |||||||||||||||
Single-family residential | 7,853 | 1,428 | 5,633 | 7,061 | 123 | 7,859 | ||||||||||||||||
Single-family residential - | ||||||||||||||||||||||
Banco de la Gente stated income | 22,034 | - | 21,242 | 21,242 | 1,300 | 21,242 | ||||||||||||||||
Commercial | 5,079 | 3,045 | 1,489 | 4,534 | 182 | 4,171 | ||||||||||||||||
Multifamily and farmland | 177 | - | 177 | 177 | 1 | 184 | ||||||||||||||||
Total impaired real estate loans | 45,004 | 10,766 | 29,409 | 40,175 | 1,659 | 41,745 | ||||||||||||||||
Loans not secured by real estate | ||||||||||||||||||||||
Commercial loans | 999 | 257 | 724 | 981 | 15 | 826 | ||||||||||||||||
Consumer loans | 302 | 264 | 35 | 299 | 1 | 247 | ||||||||||||||||
Total impaired loans | $ | 46,305 | 11,287 | 30,168 | 41,455 | 1,675 | 42,818 | |||||||||||||||
Changes in the allowance for loan losses for the three and six months ended June 30, 2014 and 2013 were as follows: | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Real Estate Loans | ||||||||||||||||||||||
Construction | Single- | Single- | Commercial | Multifamily | Commercial | Farm | Consumer | Unallocated | Total | |||||||||||||
and Land Development | Family | Family | and | and All | ||||||||||||||||||
Residential | Residential - | Farmland | Other | |||||||||||||||||||
Banco de la | ||||||||||||||||||||||
Gente | ||||||||||||||||||||||
Stated | ||||||||||||||||||||||
Income | ||||||||||||||||||||||
Six months ended June 30, 2014 | ||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||
Beginning balance | $ | 3,218 | 3,123 | 1,863 | 2,219 | 37 | 1,069 | - | 245 | 1,727 | 13,501 | |||||||||||
Charge-offs | (260 | ) | (194 | ) | (140 | ) | (131 | ) | - | (193 | ) | - | (254 | ) | - | (1,172 | ) | |||||
Recoveries | 282 | 60 | 17 | 161 | - | 26 | - | 82 | - | 628 | ||||||||||||
Provision | 147 | (141 | ) | (32 | ) | (410 | ) | (30 | ) | 179 | - | 180 | (175 | ) | (282 | ) | ||||||
Ending balance | $ | 3,387 | 2,848 | 1,708 | 1,839 | 7 | 1,081 | - | 253 | 1,552 | 12,675 | |||||||||||
Three months ended June 30, 2014 | ||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||
Beginning balance | $ | 3,133 | 3,132 | 1,767 | 2,196 | 36 | 945 | - | 230 | 1,539 | 12,978 | |||||||||||
Charge-offs | - | (171 | ) | (108 | ) | (20 | ) | - | (181 | ) | - | (117 | ) | - | (597 | ) | ||||||
Recoveries | 3 | 52 | 5 | 101 | - | 21 | - | 45 | - | 227 | ||||||||||||
Provision | 251 | (165 | ) | 44 | (438 | ) | (29 | ) | 296 | - | 95 | 13 | 67 | |||||||||
Ending balance | $ | 3,387 | 2,848 | 1,708 | 1,839 | 7 | 1,081 | - | 253 | 1,552 | 12,675 | |||||||||||
Allowance for loan losses June 30, 2014: | ||||||||||||||||||||||
Ending balance: individually | ||||||||||||||||||||||
evaluated for impairment | $ | - | 67 | 1,175 | - | - | 242 | - | - | - | 1,484 | |||||||||||
Ending balance: collectively | ||||||||||||||||||||||
evaluated for impairment | 3,387 | 2,781 | 533 | 1,839 | 7 | 839 | - | 253 | 1,552 | 11,191 | ||||||||||||
Ending balance | $ | 3,387 | 2,848 | 1,708 | 1,839 | 7 | 1,081 | - | 253 | 1,552 | 12,675 | |||||||||||
Loans June 30, 2014: | ||||||||||||||||||||||
Ending balance | $ | 59,843 | 196,192 | 48,165 | 214,378 | 11,821 | 78,056 | 93 | 24,788 | - | 633,336 | |||||||||||
Ending balance: individually | ||||||||||||||||||||||
evaluated for impairment | $ | 5,297 | 2,325 | 19,287 | - | - | 3,307 | - | 250 | - | 30,466 | |||||||||||
Ending balance: collectively | ||||||||||||||||||||||
evaluated for impairment | $ | 54,546 | 193,867 | 28,878 | 214,378 | 11,821 | 74,749 | 93 | 24,538 | - | 602,870 | |||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Real Estate Loans | ||||||||||||||||||||||
Construction | Single- | Single- | Commercial | Multifamily | Commercial | Farm | Consumer | Unallocated | Total | |||||||||||||
and Land Development | Family | Family | and | and All | ||||||||||||||||||
Residential | Residential - | Farmland | Other | |||||||||||||||||||
Banco de la | ||||||||||||||||||||||
Gente | ||||||||||||||||||||||
Stated | ||||||||||||||||||||||
Income | ||||||||||||||||||||||
Six months ended June 30, 2013 | ||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||
Beginning balance | $ | 4,399 | 3,231 | 1,998 | 2,049 | 28 | 1,088 | - | 245 | 1,385 | 14,423 | |||||||||||
Charge-offs | (715 | ) | (636 | ) | (224 | ) | (275 | ) | - | (382 | ) | - | (281 | ) | - | (2,513 | ) | |||||
Recoveries | 26 | 43 | 70 | 50 | - | 25 | - | 78 | - | 292 | ||||||||||||
Provision | 1,015 | 666 | 80 | 34 | 6 | 91 | - | 187 | (252 | ) | 1,827 | |||||||||||
Ending balance | $ | 4,725 | 3,304 | 1,924 | 1,858 | 34 | 822 | - | 229 | 1,133 | 14,029 | |||||||||||
Three months ended June 30, 2013 | ||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||
Beginning balance | $ | 4,785 | 3,182 | 1,976 | 1,811 | 30 | 1,209 | - | 232 | 1,187 | 14,412 | |||||||||||
Charge-offs | (218 | ) | (274 | ) | (72 | ) | (275 | ) | - | (361 | ) | - | (134 | ) | - | (1,334 | ) | |||||
Recoveries | 25 | 24 | 70 | 2 | - | 14 | - | 43 | - | 178 | ||||||||||||
Provision | 133 | 372 | (50 | ) | 320 | 4 | (40 | ) | - | 88 | (54 | ) | 773 | |||||||||
Ending balance | $ | 4,725 | 3,304 | 1,924 | 1,858 | 34 | 822 | - | 229 | 1,133 | 14,029 | |||||||||||
Allowance for loan losses June 30, 2013: | ||||||||||||||||||||||
Ending balance: individually | ||||||||||||||||||||||
evaluated for impairment | $ | 6 | 343 | 1,234 | - | - | - | - | - | - | 1,583 | |||||||||||
Ending balance: collectively | ||||||||||||||||||||||
evaluated for impairment | 4,719 | 2,961 | 690 | 1,858 | 34 | 822 | - | 229 | 1,133 | 12,446 | ||||||||||||
Ending balance | $ | 4,725 | 3,304 | 1,924 | 1,858 | 34 | 822 | - | 229 | 1,133 | 14,029 | |||||||||||
Loans June 30, 2013: | ||||||||||||||||||||||
Ending balance | $ | 70,112 | 192,601 | 50,454 | 191,368 | 10,918 | 66,161 | 24 | 26,434 | - | 608,072 | |||||||||||
Ending balance: individually | ||||||||||||||||||||||
evaluated for impairment | $ | 7,626 | 3,480 | 19,912 | 3,125 | - | - | - | 279 | - | 34,422 | |||||||||||
Ending balance: collectively | ||||||||||||||||||||||
evaluated for impairment | $ | 62,486 | 189,121 | 30,542 | 188,243 | 10,918 | 66,161 | 24 | 26,155 | - | 573,650 | |||||||||||
The provision for loan losses for the three months ended June 30, 2014 was $67,000, as compared to $773,000 for the same period one year ago. The decrease in the provision for loan losses is primarily attributable to a $5.2 million reduction in non-accrual loans from June 30, 2013 to June 30, 2014 and a reduction in net charge-offs of $786,000 during the three months ended June 30, 2014, as compared to the same period one year ago. | ||||||||||||||||||||||
The provision for loan losses for the six months ended June 30, 2014 was a credit of $282,000, as compared to an expense of $1.8 million for the same period one year ago. The decrease in the provision for loan losses is primarily attributable to a $1.7 million decrease in net charge-offs during the six months ended June 30, 2014 compared to the same period one year ago and a $5.2 million reduction in non-accrual loans from June 30, 2013 to June 30, 2014. The credit to provision for loan losses in the six months ended June 30, 2014 resulted from, and was considered appropriate as part of, management’s assessment and estimate of the risks in the total loan portfolio and determination of the total allowance for loan losses. The primary factors contributing to the decrease in the allowance for loan losses at June 30, 2014 to $12.7 million from $13.5 million at December 31, 2013 were the continuing positive trends in indicators of potential losses on loans, primarily non-accrual loans and the reduction in net charge-offs. | ||||||||||||||||||||||
The Company utilizes an internal risk grading matrix to assign a risk grade to each of its loans. Loans are graded on a scale of 1 to 8. These risk grades are evaluated on an ongoing basis. A description of the general characteristics of the eight risk grades is as follows: | ||||||||||||||||||||||
· | Risk Grade 1 – Excellent Quality: Loans are well above average quality and a minimal amount of credit risk exists. CD or cash secured loans or properly margined actively traded stock or bond secured loans would fall in this grade. | |||||||||||||||||||||
· | Risk Grade 2 – High Quality: Loans are of good quality with risk levels well within the Company’s range of acceptability. The organization or individual is established with a history of successful performance though somewhat susceptible to economic changes. | |||||||||||||||||||||
· | Risk Grade 3 – Good Quality: Loans of average quality with risk levels within the Company’s range of acceptability but higher than normal. This may be a new organization or an existing organization in a transitional phase (e.g. expansion, acquisition, market change). | |||||||||||||||||||||
· | Risk Grade 4 – Management Attention: These loans have higher risk and servicing needs but still are acceptable. Evidence of marginal performance or deteriorating trends is observed. These are not problem credits presently, but may be in the future if the borrower is unable to change its present course. | |||||||||||||||||||||
· | Risk Grade 5 – Watch: These loans are currently performing satisfactorily, but there has been some recent past due history on repayment and there are potential weaknesses that may, if not corrected, weaken the asset or inadequately protect the Company’s position at some future date. | |||||||||||||||||||||
· | Risk Grade 6 – Substandard: A Substandard loan is inadequately protected by the current sound net worth and paying capacity of the obligor or the collateral pledged (if there is any). There is a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. There is a distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. | |||||||||||||||||||||
· | Risk Grade 7 – Doubtful: Loans classified as Doubtful have all the weaknesses inherent in loans classified Substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable. Doubtful is a temporary grade where a loss is expected but is presently not quantified with any degree of accuracy. Once the loss position is determined, the amount is charged off. | |||||||||||||||||||||
· | Risk Grade 8 – Loss: Loans classified as Loss are considered uncollectable and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this worthless loan even though partial recovery may be realized in the future. Loss is a temporary grade until the appropriate authority is obtained to charge the loan off. | |||||||||||||||||||||
The following tables present the credit risk profile of each loan type based on internally assigned risk grades as of June 30, 2014 and December 31, 2013: | ||||||||||||||||||||||
30-Jun-14 | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Real Estate Loans | ||||||||||||||||||||||
Construction | Single- | Single- | Commercial | Multifamily | Commercial | Farm | Consumer | All Other | Total | |||||||||||||
and Land Development | Family | Family | and | |||||||||||||||||||
Residential | Residential - | Farmland | ||||||||||||||||||||
Banco de la | ||||||||||||||||||||||
Gente | ||||||||||||||||||||||
Stated | ||||||||||||||||||||||
Income | ||||||||||||||||||||||
1- Excellent Quality | $ | - | 15,376 | - | - | - | 720 | - | 1,386 | - | 17,482 | |||||||||||
2- High Quality | 8,224 | 66,361 | - | 37,883 | 682 | 11,404 | - | 3,659 | 1,972 | 130,185 | ||||||||||||
3- Good Quality | 23,249 | 71,086 | 21,528 | 129,951 | 6,621 | 51,697 | 93 | 4,424 | 10,439 | 319,088 | ||||||||||||
4- Management Attention | 12,949 | 32,416 | 8,293 | 35,900 | 1,643 | 12,452 | - | 575 | 2,234 | 106,462 | ||||||||||||
5- Watch | 7,355 | 5,914 | 7,040 | 6,661 | 2,706 | 944 | - | 20 | - | 30,640 | ||||||||||||
6- Substandard | 8,066 | 5,039 | 11,304 | 3,983 | 169 | 770 | - | 77 | - | 29,408 | ||||||||||||
7- Doubtful | - | - | - | - | - | - | - | - | - | - | ||||||||||||
8- Loss | - | - | - | - | - | 69 | - | 2 | - | 71 | ||||||||||||
Total | $ | 59,843 | 196,192 | 48,165 | 214,378 | 11,821 | 78,056 | 93 | 10,143 | 14,645 | 633,336 | |||||||||||
31-Dec-13 | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Real Estate Loans | ||||||||||||||||||||||
Construction | Single- | Single- | Commercial | Multifamily | Commercial | Farm | Consumer | All Other | Total | |||||||||||||
and Land Development | Family | Family | and | |||||||||||||||||||
Residential | Residential - | Farmland | ||||||||||||||||||||
Banco de la | ||||||||||||||||||||||
Gente | ||||||||||||||||||||||
Stated | ||||||||||||||||||||||
Income | ||||||||||||||||||||||
1- Excellent Quality | $ | 7 | 15,036 | - | - | - | 365 | - | 1,270 | - | 16,678 | |||||||||||
2- High Quality | 7,852 | 60,882 | - | 33,340 | 715 | 8,442 | - | 3,519 | 2,139 | 116,889 | ||||||||||||
3- Good Quality | 22,899 | 73,118 | 22,255 | 123,604 | 7,882 | 44,353 | 19 | 4,061 | 8,565 | 306,756 | ||||||||||||
4- Management Attention | 14,464 | 34,090 | 8,369 | 42,914 | 286 | 13,704 | - | 358 | 2,329 | 116,514 | ||||||||||||
5- Watch | 8,163 | 6,806 | 8,113 | 5,190 | 2,741 | 320 | - | 50 | - | 31,383 | ||||||||||||
6- Substandard | 10,357 | 6,043 | 10,726 | 4,239 | 177 | 863 | - | 330 | - | 32,735 | ||||||||||||
7- Doubtful | - | - | - | - | - | - | - | - | - | - | ||||||||||||
8- Loss | - | - | - | - | - | - | - | 5 | - | 5 | ||||||||||||
Total | $ | 63,742 | 195,975 | 49,463 | 209,287 | 11,801 | 68,047 | 19 | 9,593 | 13,033 | 620,960 | |||||||||||
Total TDR loans amounted to $11.7 million and $21.9 million at June 30, 2014 and December 31, 2013, respectively. The terms of these loans have been renegotiated to provide a concession to original terms, including a reduction in principal or interest as a result of the deteriorating financial position of the borrower. There were $1.5 million and $335,000 in performing loans classified as TDR loans at June 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||||
The Bank did not enter into any new TDR loan modifications during the three months ended June 30, 2014. The following table presents an analysis of loan modifications during the six months ended June 30, 2014: | ||||||||||||||||||||||
Six months ended June 30, 2014 | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Number of | Pre-Modification | Post-Modification Outstanding | ||||||||||||||||||||
Contracts | Outstanding | Recorded | ||||||||||||||||||||
Recorded | Investment | |||||||||||||||||||||
Investment | ||||||||||||||||||||||
Real estate loans | ||||||||||||||||||||||
Construction and land development | 1 | $ | 316 | 316 | ||||||||||||||||||
Single-family residential | 1 | 734 | 734 | |||||||||||||||||||
Single-family residential - | ||||||||||||||||||||||
Banco de la Gente stated income | 6 | 494 | 494 | |||||||||||||||||||
Total real estate TDR loans | 8 | 1,544 | 1,544 | |||||||||||||||||||
Total TDR loans | 8 | $ | 1,544 | 1,544 | ||||||||||||||||||
The following tables present an analysis of loan modifications during the three and six months ended June 30, 2013: | ||||||||||||||||||||||
Three months ended June 30, 2013 | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Number of | Pre-Modification | Post-Modification Outstanding | ||||||||||||||||||||
Contracts | Outstanding | Recorded | ||||||||||||||||||||
Recorded | Investment | |||||||||||||||||||||
Investment | ||||||||||||||||||||||
Real estate loans | ||||||||||||||||||||||
Construction and land development | 1 | $ | 724 | 712 | ||||||||||||||||||
Single-family residential | 2 | 78 | 78 | |||||||||||||||||||
Single-family residential - | ||||||||||||||||||||||
Banco de la Gente stated income | 1 | 140 | 138 | |||||||||||||||||||
Total real estate TDR loans | 4 | 942 | 928 | |||||||||||||||||||
Total TDR loans | 4 | $ | 942 | 928 | ||||||||||||||||||
Six months ended June 30, 2013 | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Number of | Pre-Modification | Post-Modification Outstanding | ||||||||||||||||||||
Contracts | Outstanding | Recorded | ||||||||||||||||||||
Recorded | Investment | |||||||||||||||||||||
Investment | ||||||||||||||||||||||
Real estate loans | ||||||||||||||||||||||
Construction and land development | 2 | $ | 841 | 829 | ||||||||||||||||||
Single-family residential | 2 | 78 | 78 | |||||||||||||||||||
Single-family residential - | ||||||||||||||||||||||
Banco de la Gente stated income | 4 | 472 | 469 | |||||||||||||||||||
Total real estate TDR loans | 8 | 1,391 | 1,376 | |||||||||||||||||||
Total TDR loans | 8 | $ | 1,391 | 1,376 | ||||||||||||||||||
4_Net_Earnings_Per_Common_Shar
4. Net Earnings Per Common Share | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
4. Net Earnings Per Common Share | ' | |||||||
-4 | Net Earnings Per Common Share | |||||||
Net earnings per common share is based on the weighted average number of common shares outstanding during the period while the effects of potential common shares outstanding during the period are included in diluted earnings per common share. The average market price during the year is used to compute equivalent shares. | ||||||||
The reconciliation of the amounts used in the computation of both “basic earnings per common share” and “diluted earnings per common share” for the three and six months ended June 30, 2014 and 2013 is as follows: | ||||||||
For the three months ended June 30, 2014 | ||||||||
Net Earnings | Common Shares | Per Share | ||||||
Available to | Amount | |||||||
Common | ||||||||
Shareholders | ||||||||
(Dollars in | ||||||||
thousands) | ||||||||
Basic earnings per common share | $ | 2,551 | 5,616,008 | $ | 0.45 | |||
Effect of dilutive securities: | ||||||||
Stock options | - | 25,471 | ||||||
Diluted earnings per common share | $ | 2,551 | 5,641,479 | $ | 0.45 | |||
For the six months ended June 30, 2014 | ||||||||
Net Earnings | Common Shares | Per Share | ||||||
Available to | Amount | |||||||
Common | ||||||||
Shareholders | ||||||||
(Dollars in | ||||||||
thousands) | ||||||||
Basic earnings per common share | $ | 5,130 | 5,614,758 | $ | 0.91 | |||
Effect of dilutive securities: | ||||||||
Stock options | - | 22,432 | ||||||
Diluted earnings per common share | $ | 5,130 | 5,637,190 | $ | 0.91 | |||
For the three months ended June 30, 2013 | ||||||||
Net Earnings | Common Shares | Per Share | ||||||
Available to | Amount | |||||||
Common | ||||||||
Shareholders | ||||||||
(Dollars in | ||||||||
thousands) | ||||||||
Basic earnings per common share | $ | 1,477 | 5,613,495 | $ | 0.26 | |||
Effect of dilutive securities: | ||||||||
Stock options | - | 5,589 | ||||||
Diluted earnings per common share | $ | 1,477 | 5,619,084 | $ | 0.26 | |||
For the six months ended June 30, 2013 | ||||||||
Net Earnings | Common Shares | Per Share | ||||||
Available to | Amount | |||||||
Common | ||||||||
Shareholders | ||||||||
(Dollars in | ||||||||
thousands) | ||||||||
Basic earnings per common share | $ | 3,078 | 5,613,495 | $ | 0.55 | |||
Effect of dilutive securities: | ||||||||
Stock options | - | 5,185 | ||||||
Diluted earnings per common share | $ | 3,078 | 5,618,680 | $ | 0.55 | |||
5_StockBased_Compensation
5. Stock-Based Compensation | 6 Months Ended | |
Jun. 30, 2014 | ||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |
5. Stock-Based Compensation | ' | |
-5 | Stock-Based Compensation | |
The Company has an Omnibus Stock Ownership and Long Term Incentive Plan (the “1999 Plan”) whereby certain stock-based rights, such as stock options, restricted stock and restricted stock units were granted to eligible directors and employees. The 1999 Plan expired on May 13, 2009 but still governs the rights and obligations of the parties for grants made thereunder. | ||
Under the 1999 Plan, the Company granted incentive stock options to certain eligible employees in order that they may purchase Company stock at a price equal to the fair market value on the date of the grant. The options granted in 1999 vested over a five-year period. Options granted subsequent to 1999 vested over a three-year period. All options expire ten years after issuance. | ||
In addition, under the 1999 Plan, the Company granted 3,000 restricted stock units in 2007 at a grant date fair value of $17.40 per share. The Company granted 1,750 restricted stock units at a grant date fair value of $12.80 per share during the third quarter of 2008 and 2,000 restricted stock units at a grant date fair value of $11.37 per share during the fourth quarter of 2008. The Company recognizes compensation expense on the restricted stock units over the period of time the restrictions are in place (three years from the grant date for the grants of restricted stock units to date under the 1999 Plan). The amount of expense recorded each period reflects the changes in the Company’s stock price during the period. As of June 30, 2014, there was no unrecognized compensation expense related to the 2007 and 2008 restricted stock unit grants granted under the 1999 Plan. | ||
The Company also has an Omnibus Stock Ownership and Long Term Incentive Plan that was approved by shareholders on May 7, 2009 (the “2009 Plan”) whereby certain stock-based rights, such as stock options, restricted stock, restricted stock units, performance units, stock appreciation rights or book value shares, may be granted to eligible directors and employees. A total of 282,635 shares are currently reserved for possible issuance under the 2009 Plan. All rights must be granted or awarded within ten years from the May 7, 2009 effective date of the 2009 Plan. | ||
The Company granted 29,514 restricted stock units under the 2009 Plan at a grant date fair value of $7.90 per share during the first quarter of 2012. 5,355 restricted stock units were forfeited by the executive officers of the Company as required by the agreement with the U.S. Department of the Treasury (“UST”) in conjunction with the Company’s participation in the Capital Purchase Program (“CPP”) under the Troubled Asset Relief Program (“TARP”). In July 2012, the Company granted 5,355 restricted stock units at a grant date fair value of $8.25 per share. The Company granted 26,795 restricted stock units under the 2009 Plan at a grant date fair value of $11.90 per share during the second quarter of 2013. The Company granted 21,056 restricted stock units under the 2009 Plan at a grant date fair value of $15.70 per share during the first quarter of 2014. The Company recognizes compensation expense on the restricted stock units over the period of time the restrictions are in place (five years from the grant date for the 2012 grants, four years from the grant date for the 2013 grants and three years from the grant date for the 2014 grants). The amount of expense recorded each period reflects the changes in the Company’s stock price during the period. As of June 30, 2014, the total unrecognized compensation expense related to the restricted stock unit grants under the 2009 Plan was $840,000. | ||
The Company recognized compensation expense for restricted stock awards granted under the 2009 Plan of $167,000 and $70,000 for the six months ended June 30, 2014 and 2013, respectively. |
6_Fair_Value
6. Fair Value | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||
Fair Value | ' | |||||||||||
-6 | Fair Value | |||||||||||
The Company is required to disclose fair value information about financial instruments, whether or not recognized on the face of the balance sheet, for which it is practicable to estimate that value. The assumptions used in the estimation of the fair value of the Company’s financial instruments are detailed below. Where quoted prices are not available, fair values are based on estimates using discounted cash flows and other valuation techniques. The use of discounted cash flows can be significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. The following disclosures should not be considered a surrogate of the liquidation value of the Company, but rather a good faith estimate of the increase or decrease in the value of financial instruments held by the Company since purchase, origination or issuance. | ||||||||||||
The Company groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: | ||||||||||||
· | Level 1 – Valuation is based upon quoted prices for identical instruments traded in active markets. | |||||||||||
· | Level 2 – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. | |||||||||||
· | Level 3 – Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. | |||||||||||
Cash and Cash Equivalents | ||||||||||||
For cash, due from banks and interest-bearing deposits, the carrying amount is a reasonable estimate of fair value. Cash and cash equivalents are reported in the Level 1 fair value category. | ||||||||||||
Investment Securities Available for Sale | ||||||||||||
Fair values of investment securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges when available. If quoted prices are not available, fair value is determined using matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities. Fair values for investment securities with quoted market prices are reported in the Level 1 fair value category. Fair value measurements obtained from independent pricing services are reported in the Level 2 fair value category. All other fair value measurements are reported in the Level 3 fair value category. | ||||||||||||
Other Investments | ||||||||||||
For other investments, the carrying value is a reasonable estimate of fair value. Other investments are reported in the Level 3 fair value category. | ||||||||||||
Mortgage Loans Held for Sale | ||||||||||||
Mortgage loans held for sale are carried at the lower of aggregate cost or market value. The cost of mortgage loans held for sale approximates the market value. Mortgage loans held for sale are reported in the Level 3 fair value category. | ||||||||||||
Loans | ||||||||||||
The fair value of fixed rate loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings. For variable rate loans, the carrying amount is a reasonable estimate of fair value. Loans are reported in the Level 3 fair value category, as the pricing of loans is more subjective than the pricing of other financial instruments. | ||||||||||||
Cash Surrender Value of Life Insurance | ||||||||||||
For cash surrender value of life insurance, the carrying value is a reasonable estimate of fair value. Cash surrender value of life insurance is reported in the Level 2 fair value category. | ||||||||||||
Other Real Estate | ||||||||||||
The fair value of other real estate is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. Other real estate is reported in the Level 3 fair value category. | ||||||||||||
Deposits | ||||||||||||
The fair value of demand deposits, interest-bearing demand deposits and savings is the amount payable on demand at the reporting date. The fair value of certificates of deposit is estimated by discounting the future cash flows using the rates currently offered for deposits of similar remaining maturities. Deposits are reported in the Level 2 fair value category. | ||||||||||||
Securities Sold Under Agreements to Repurchase | ||||||||||||
For securities sold under agreements to repurchase, the carrying value is a reasonable estimate of fair value. Securities sold under agreements to repurchase are reported in the Level 2 fair value category. | ||||||||||||
Federal Home Loan Bank (“FHLB”) Borrowings | ||||||||||||
The fair value of FHLB borrowings is estimated based upon discounted future cash flows using a discount rate comparable to the current market rate for such borrowings. FHLB borrowings are reported in the Level 2 fair value category. | ||||||||||||
Junior Subordinated Debentures | ||||||||||||
Because the Company’s junior subordinated debentures were issued at a floating rate, the carrying amount is a reasonable estimate of fair value. Junior subordinated debentures are reported in the Level 2 fair value category. | ||||||||||||
Commitments to Extend Credit and Standby Letters of Credit | ||||||||||||
Commitments to extend credit and standby letters of credit are generally short-term and at variable interest rates. Therefore, both the carrying value and estimated fair value associated with these instruments are immaterial. | ||||||||||||
Limitations | ||||||||||||
Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on many judgments. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. | ||||||||||||
Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial instruments include deferred income taxes and premises and equipment. In addition, the tax ramifications related to the realization of unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. | ||||||||||||
The table below presents the balance of securities available for sale, which are measured at fair value on a recurring basis by level within the fair value hierarchy, as of June 30, 2014 and December 31, 2013. | ||||||||||||
(Dollars in thousands) | ||||||||||||
30-Jun-14 | ||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | |||||||||
Measurements | Valuation | Valuation | Valuation | |||||||||
Mortgage-backed securities | $ | 117,514 | - | 117,514 | - | |||||||
U.S. Government | ||||||||||||
sponsored enterprises | $ | 25,101 | - | 25,101 | - | |||||||
State and political subdivisions | $ | 148,629 | - | 148,629 | - | |||||||
Corporate bonds | $ | 3,487 | - | 3,487 | - | |||||||
Trust preferred securities | $ | 750 | - | - | 750 | |||||||
Equity securities | $ | 1,684 | 1,684 | - | - | |||||||
(Dollars in thousands) | ||||||||||||
31-Dec-13 | ||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | |||||||||
Measurements | Valuation | Valuation | Valuation | |||||||||
Mortgage-backed securities | $ | 123,977 | - | 123,977 | - | |||||||
U.S. Government | ||||||||||||
sponsored enterprises | $ | 22,143 | - | 22,143 | - | |||||||
State and political subdivisions | $ | 145,368 | - | 145,368 | - | |||||||
Corporate bonds | $ | 3,463 | - | 3,463 | - | |||||||
Trust preferred securities | $ | 1,250 | - | - | 1,250 | |||||||
Equity securities | $ | 1,689 | 1,689 | - | - | |||||||
The following is an analysis of fair value measurements of investment securities available for sale using Level 3, significant unobservable inputs, for the six months ended June 30, 2014. | ||||||||||||
(Dollars in thousands) | ||||||||||||
Investment Securities | ||||||||||||
Available for Sale | ||||||||||||
Level 3 Valuation | ||||||||||||
Balance, beginning of period | $ | 1,250 | ||||||||||
Change in book value | - | |||||||||||
Change in gain/(loss) realized and unrealized | - | |||||||||||
Purchases/(sales and calls) | (500 | ) | ||||||||||
Transfers in and/or (out) of Level 3 | - | |||||||||||
Balance, end of period | $ | 750 | ||||||||||
Change in unrealized gain/(loss) for assets still held in Level 3 | $ | - | ||||||||||
The fair value measurements for impaired loans and other real estate on a non-recurring basis at June 30, 2014 and December 31, 2013 are presented below. The fair value measurement process uses certified appraisals and other market-based information; however, in many cases, it also requires significant input based on management’s knowledge of, and judgment about, current market conditions, specific issues relating to the collateral, and other matters. As a result, all fair value measurements for impaired loans and other real estate are considered Level 3. | ||||||||||||
(Dollars in thousands) | ||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | Total Gains/(Losses) for | ||||||||
Measurements | Valuation | Valuation | Valuation | the Six Months Ended | ||||||||
30-Jun-14 | 30-Jun-14 | |||||||||||
Impaired loans | $ | 36,983 | - | - | 36,983 | (433 | ) | |||||
Other real estate | $ | 3,532 | - | - | 3,532 | (150 | ) | |||||
(Dollars in thousands) | ||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | Total Gains/(Losses) for | ||||||||
Measurements | Valuation | Valuation | Valuation | the Year Ended | ||||||||
December 31, 2013 | December 31, 2013 | |||||||||||
Impaired loans | $ | 39,780 | - | - | 39,780 | (3,207 | ) | |||||
Other real estate | $ | 1,679 | - | - | 1,679 | (581 | ) | |||||
The carrying amount and estimated fair value of financial instruments at June 30, 2014 and December 31, 2013 are as follows: | ||||||||||||
(Dollars in thousands) | ||||||||||||
Fair Value Measurements at June 30, 2014 | ||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Total | ||||||||
Amount | ||||||||||||
Assets: | ||||||||||||
Cash and cash equivalents | $ | 75,068 | 75,068 | - | - | 75,068 | ||||||
Investment securities available for sale | 297,165 | 1,684 | 294,731 | 750 | 297,165 | |||||||
Other investments | 4,706 | - | - | 4,706 | 4,706 | |||||||
Mortgage loans held for sale | 2,048 | - | - | 2,048 | 2,048 | |||||||
Loans, net | 620,661 | - | - | 623,799 | 623,799 | |||||||
Cash surrender value of life insurance | 13,914 | - | 13,914 | - | 13,914 | |||||||
Liabilities: | ||||||||||||
Deposits | $ | 811,479 | - | 810,415 | - | 810,415 | ||||||
Securities sold under agreements | ||||||||||||
to repurchase | 46,764 | - | 46,764 | - | 46,764 | |||||||
FHLB borrowings | 65,000 | - | 65,984 | - | 65,984 | |||||||
Junior subordinated debentures | 20,619 | - | 20,619 | - | 20,619 | |||||||
(Dollars in thousands) | ||||||||||||
Fair Value Measurements at December 31, 2013 | ||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Total | ||||||||
Amount | ||||||||||||
Assets: | ||||||||||||
Cash and cash equivalents | $ | 76,773 | 76,773 | - | - | 76,773 | ||||||
Investment securities available for sale | 297,890 | 1,689 | 294,951 | 1,250 | 297,890 | |||||||
Other investments | 4,990 | - | - | 4,990 | 4,990 | |||||||
Mortgage loans held for sale | 497 | - | - | 497 | 497 | |||||||
Loans, net | 607,459 | - | - | 612,132 | 612,132 | |||||||
Cash surrender value of life insurance | 13,706 | - | 13,706 | - | 13,706 | |||||||
Liabilities: | ||||||||||||
Deposits | $ | 799,361 | - | 798,460 | - | 798,460 | ||||||
Securities sold under agreements | ||||||||||||
to repurchase | 45,396 | - | 45,396 | - | 45,396 | |||||||
FHLB borrowings | 65,000 | - | 65,891 | - | 65,891 | |||||||
Junior subordinated debentures | 20,619 | - | 20,619 | - | 20,619 | |||||||
7_Derivative_Instruments_and_H
7. Derivative Instruments and Hedging Activities | 6 Months Ended | |
Jun. 30, 2014 | ||
Notes to Financial Statements | ' | |
7. Derivative Instruments and Hedging Activities | ' | |
(7) | Derivative Instruments and Hedging Activities | |
Accounting Policy for Derivative Instruments and Hedging Activities | ||
The disclosure requirements for derivatives and hedging activities have the intent to provide users of financial statements with an enhanced understanding of: (a) how and why an entity uses derivative instruments, (b) how derivative instruments and related hedged items are accounted for and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. The disclosure requirements include qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about the fair value of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative instruments. | ||
The Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risks, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. | ||
Risk Management Objective of Using Derivatives | ||
The Company has an overall interest rate risk management strategy that incorporates the use of derivative instruments to minimize significant unplanned fluctuations in earnings that are caused by interest rate volatility. By using derivative instruments, the Company is exposed to credit and market risk. If the counterparty fails to perform, credit risk is equal to the extent of the fair value gain in the derivative. The Company minimizes the credit risk in derivative instruments by entering into transactions with high-quality counterparties that are reviewed periodically by the Company. The Company did not have any interest rate derivatives outstanding as of June 30, 2014 or December 31, 2013. | ||
8_Subsequent_Events
8. Subsequent Events | 6 Months Ended | |
Jun. 30, 2014 | ||
Subsequent Events [Abstract] | ' | |
Subsequent Events | ' | |
-8 | Subsequent Events | |
The Company has reviewed and evaluated subsequent events and transactions for material subsequent events through the date the financial statements are issued. Management has concluded that there were no material subsequent events. |
1_Summary_of_Significant_Accou1
1. Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Recently Issued Accounting Pronouncements | ' |
Recently Issued Accounting Pronouncements | |
In January 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-04, (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. ASU No. 2014-04 provides additional guidance to clarify when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan should be derecognized and the real estate property recognized. ASU No. 2014-04 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. | |
In May 2014, the FASB issued ASU No. 2014-09, (Topic 606): Revenue from Contracts with Customers. ASU No. 2014-09 provides guidance on the recognition of revenue from contracts with customers. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. ASU No. 2014-09 is effective for reporting periods beginning after December 15, 2016. The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. | |
In June 2014, the FASB issued ASU No. 2014-11, (Subtopic 860-10): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. ASU No. 2014-11 makes limited amendments to the guidance in FASB Accounting Standards Codification ("ASC") 860, Transfers and Servicing, on accounting for certain repurchase agreements (repos). ASU No. 2014-1 (1) requires entities to account for repurchase-to-maturity transactions as secured borrowings (rather than as sales with forward repurchase agreements), (2) eliminates accounting guidance on linked repurchase financing transactions, and (3) expands disclosure requirements related to certain transfers of financial assets that are accounted for as sales and certain transfers (specifically, repos, securities lending transactions, and repurchase-to-maturity transactions) accounted for as secured borrowings. ASU 2014-11 also amends FASB ASC 860 to clarify that repos and securities lending transactions that do not meet all of the derecognition criteria should be accounted for as secured borrowings. In addition, ASU No. 2014-11provides examples of repurchase and securities lending arrangements that illustrate whether a transferor has maintained effective control over the transferred financial assets. ASU No. 2014-11 is effective for reporting periods beginning the first interim or annual period after December 15, 2014. The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. | |
Other accounting standards that have been issued or proposed by FASB or other standards-setting bodies are not expected to have a material impact on the Company’s results of operations, financial position or disclosures. |
2_Investment_Securities_Tables
2. Investment Securities (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Investment Securities Tables | ' | ||||||||||||
Investment securities available for sale | ' | ||||||||||||
Investment securities available for sale at June 30, 2014 and December 31, 2013 are as follows: | |||||||||||||
(Dollars in thousands) | |||||||||||||
30-Jun-14 | |||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||
Cost | Unrealized | Unrealized | Fair Value | ||||||||||
Gains | Losses | ||||||||||||
Mortgage-backed securities | $ | 115,747 | 1,937 | 170 | 117,514 | ||||||||
U.S. Government | |||||||||||||
sponsored enterprises | 25,211 | 107 | 217 | 25,101 | |||||||||
State and political subdivisions | 145,573 | 4,398 | 1,342 | 148,629 | |||||||||
Corporate bonds | 3,495 | 14 | 22 | 3,487 | |||||||||
Trust preferred securities | 750 | - | - | 750 | |||||||||
Equity securities | 748 | 936 | - | 1,684 | |||||||||
Total | $ | 291,524 | 7,392 | 1,751 | 297,165 | ||||||||
(Dollars in thousands) | |||||||||||||
31-Dec-13 | |||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||
Cost | Unrealized | Unrealized | Fair Value | ||||||||||
Gains | Losses | ||||||||||||
Mortgage-backed securities | $ | 123,706 | 1,040 | 769 | 123,977 | ||||||||
U.S. Government | |||||||||||||
sponsored enterprises | 22,115 | 97 | 69 | 22,143 | |||||||||
State and political subdivisions | 148,468 | 1,987 | 5,087 | 145,368 | |||||||||
Corporate bonds | 3,522 | 11 | 70 | 3,463 | |||||||||
Trust preferred securities | 1,250 | - | - | 1,250 | |||||||||
Equity securities | 748 | 941 | - | 1,689 | |||||||||
Total | $ | 299,809 | 4,076 | 5,995 | 297,890 | ||||||||
Current fair value and associated unrealized losses on investments in securities with unrealized losses | ' | ||||||||||||
The current fair value and associated unrealized losses on investments in securities with unrealized losses at June 30, 2014 and December 31, 2013 are summarized in the tables below, with the length of time the individual securities have been in a continuous loss position. | |||||||||||||
(Dollars in thousands) | |||||||||||||
30-Jun-14 | |||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||
Losses | Losses | Losses | |||||||||||
Mortgage-backed securities | $ | 8,550 | 6 | 18,386 | 164 | 26,936 | 170 | ||||||
U.S. Government | |||||||||||||
sponsored enterprises | 16,483 | 217 | - | - | 16,483 | 217 | |||||||
State and political subdivisions | 12,495 | 40 | 38,905 | 1,302 | 51,400 | 1,342 | |||||||
Corporate bonds | 1,000 | - | 533 | 22 | 1,533 | 22 | |||||||
Total | $ | 38,528 | 263 | 57,824 | 1,488 | 96,352 | 1,751 | ||||||
(Dollars in thousands) | |||||||||||||
31-Dec-13 | |||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||
Losses | Losses | Losses | |||||||||||
Mortgage-backed securities | $ | 40,857 | 691 | 10,128 | 78 | 50,985 | 769 | ||||||
U.S. Government | |||||||||||||
sponsored enterprises | 9,714 | 69 | - | - | 9,714 | 69 | |||||||
State and political subdivisions | 77,187 | 4,863 | 1,824 | 224 | 79,011 | 5,087 | |||||||
Corporate bonds | 1,984 | 16 | 511 | 54 | 2,495 | 70 | |||||||
Total | $ | 129,742 | 5,639 | 12,463 | 356 | 142,205 | 5,995 | ||||||
Amortized cost and estimated fair value of investment securities available for sale by contractual maturity | ' | ||||||||||||
30-Jun-14 | |||||||||||||
(Dollars in thousands) | |||||||||||||
Amortized | Estimated | ||||||||||||
Cost | Fair Value | ||||||||||||
Due within one year | $ | 4,392 | 4,401 | ||||||||||
Due from one to five years | 37,594 | 38,956 | |||||||||||
Due from five to ten years | 114,940 | 116,246 | |||||||||||
Due after ten years | 18,103 | 18,364 | |||||||||||
Mortgage-backed securities | 115,747 | 117,514 | |||||||||||
Equity securities | 748 | 1,684 | |||||||||||
Total | $ | 291,524 | 297,165 | ||||||||||
3_Loans_Tables
3. Loans (Tables) | 6 Months Ended | |||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||
Loans Tables | ' | |||||||||||||||||||||
Major classifications of loans | ' | |||||||||||||||||||||
Major classifications of loans at June 30, 2014 and December 31, 2013 are summarized as follows: | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||||||||
Real estate loans | ||||||||||||||||||||||
Construction and land development | $ | 59,843 | 63,742 | |||||||||||||||||||
Single-family residential | 196,192 | 195,975 | ||||||||||||||||||||
Single-family residential - | ||||||||||||||||||||||
Banco de la Gente stated income | 48,165 | 49,463 | ||||||||||||||||||||
Commercial | 214,378 | 209,287 | ||||||||||||||||||||
Multifamily and farmland | 11,821 | 11,801 | ||||||||||||||||||||
Total real estate loans | 530,399 | 530,268 | ||||||||||||||||||||
Loans not secured by real estate | ||||||||||||||||||||||
Commercial loans | 78,056 | 68,047 | ||||||||||||||||||||
Farm loans | 93 | 19 | ||||||||||||||||||||
Consumer loans | 10,143 | 9,593 | ||||||||||||||||||||
All other loans | 14,645 | 13,033 | ||||||||||||||||||||
Total loans | 633,336 | 620,960 | ||||||||||||||||||||
Less allowance for loan losses | 12,675 | 13,501 | ||||||||||||||||||||
Total net loans | $ | 620,661 | 607,459 | |||||||||||||||||||
Age analysis of past due loans, by loan type | ' | |||||||||||||||||||||
The following tables present an age analysis of past due loans, by loan type, as of June 30, 2014 and December 31, 2013: | ||||||||||||||||||||||
30-Jun-14 | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Loans 30 | Loans 90 | Total | Total | Total | Accruing | |||||||||||||||||
- 89 Days | or More | Past Due | Current | Loans | Loans 90 or | |||||||||||||||||
Past Due | Days Past | Loans | Loans | More Days | ||||||||||||||||||
Due | Past Due | |||||||||||||||||||||
Real estate loans | ||||||||||||||||||||||
Construction and land development | $ | 830 | 4,862 | 5,692 | 54,151 | 59,843 | - | |||||||||||||||
Single-family residential | 1,453 | 667 | 2,120 | 194,072 | 196,192 | 392 | ||||||||||||||||
Single-family residential - | ||||||||||||||||||||||
Banco de la Gente stated income | 1,874 | 719 | 2,593 | 45,572 | 48,165 | - | ||||||||||||||||
Commercial | 1,652 | 289 | 1,941 | 212,437 | 214,378 | - | ||||||||||||||||
Multifamily and farmland | 169 | - | 169 | 11,652 | 11,821 | - | ||||||||||||||||
Total real estate loans | 5,978 | 6,537 | 12,515 | 517,884 | 530,399 | 392 | ||||||||||||||||
Loans not secured by real estate | ||||||||||||||||||||||
Commercial loans | 1,001 | 49 | 1,050 | 77,006 | 78,056 | - | ||||||||||||||||
Farm loans | - | - | - | 93 | 93 | - | ||||||||||||||||
Consumer loans | 129 | - | 129 | 10,014 | 10,143 | - | ||||||||||||||||
All other loans | - | - | - | 14,645 | 14,645 | - | ||||||||||||||||
Total loans | $ | 7,108 | 6,586 | 13,694 | 619,642 | 633,336 | 392 | |||||||||||||||
31-Dec-13 | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Loans 30- | Loans 90 or More | Total Past Due | Total | Total | Accruing | |||||||||||||||||
89 Days | Days Past | Loans | Current | Loans | Loans 90 or | |||||||||||||||||
Past Due | Due | Loans | More Days | |||||||||||||||||||
Past Due | ||||||||||||||||||||||
Real estate loans | ||||||||||||||||||||||
Construction and land development | $ | 3,416 | 5,426 | 8,842 | 54,900 | 63,742 | - | |||||||||||||||
Single-family residential | 4,518 | 1,555 | 6,073 | 189,902 | 195,975 | - | ||||||||||||||||
Single-family residential - | ||||||||||||||||||||||
Banco de la Gente stated income | 9,833 | 1,952 | 11,785 | 37,678 | 49,463 | 881 | ||||||||||||||||
Commercial | 1,643 | 486 | 2,129 | 207,158 | 209,287 | - | ||||||||||||||||
Multifamily and farmland | 177 | - | 177 | 11,624 | 11,801 | - | ||||||||||||||||
Total real estate loans | 19,587 | 9,419 | 29,006 | 501,262 | 530,268 | 881 | ||||||||||||||||
Loans not secured by real estate | ||||||||||||||||||||||
Commercial loans | 424 | 29 | 453 | 67,594 | 68,047 | - | ||||||||||||||||
Farm loans | - | - | - | 19 | 19 | - | ||||||||||||||||
Consumer loans | 181 | 3 | 184 | 9,409 | 9,593 | 1 | ||||||||||||||||
All other loans | - | - | - | 13,033 | 13,033 | - | ||||||||||||||||
Total loans | $ | 20,192 | 9,451 | 29,643 | 591,317 | 620,960 | 882 | |||||||||||||||
Non-accrual loans | ' | |||||||||||||||||||||
The following table presents the Company’s non-accrual loans as of June 30, 2014 and December 31, 2013: | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||||||||
Real estate loans | ||||||||||||||||||||||
Construction and land development | $ | 5,216 | 6,546 | |||||||||||||||||||
Single-family residential | 1,563 | 2,980 | ||||||||||||||||||||
Single-family residential - | ||||||||||||||||||||||
Banco de la Gente stated income | 1,780 | 1,990 | ||||||||||||||||||||
Commercial | 1,804 | 2,043 | ||||||||||||||||||||
Total real estate loans | 10,363 | 13,559 | ||||||||||||||||||||
Loans not secured by real estate | ||||||||||||||||||||||
Commercial loans | 511 | 250 | ||||||||||||||||||||
Consumer loans | 47 | 27 | ||||||||||||||||||||
Total | $ | 10,921 | 13,836 | |||||||||||||||||||
Impaired loans | ' | |||||||||||||||||||||
The following tables present the Company’s impaired loans as of June 30, 2014 and December 31, 2013: | ||||||||||||||||||||||
30-Jun-14 | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Unpaid | Recorded | Recorded | Recorded | Related | Average | |||||||||||||||||
Contractual | Investment | Investment | Investment | Allowance | Outstanding | |||||||||||||||||
Principal | With No | With | in Impaired | Impaired | ||||||||||||||||||
Balance | Allowance | Allowance | Loans | Loans | ||||||||||||||||||
Real estate loans | ||||||||||||||||||||||
Construction and land development | $ | 6,963 | 3,784 | 2,355 | 6,139 | 56 | 6,502 | |||||||||||||||
Single-family residential | 5,972 | 947 | 4,827 | 5,774 | 132 | 7,507 | ||||||||||||||||
Single-family residential - | ||||||||||||||||||||||
Banco de la Gente stated income | 21,758 | - | 21,129 | 21,129 | 1,217 | 20,303 | ||||||||||||||||
Commercial | 4,665 | 2,251 | 2,145 | 4,396 | 256 | 4,463 | ||||||||||||||||
Multifamily and farmland | 169 | - | 169 | 169 | 1 | 172 | ||||||||||||||||
Total impaired real estate loans | 39,527 | 6,982 | 30,625 | 37,607 | 1,662 | 38,947 | ||||||||||||||||
Loans not secured by real estate | ||||||||||||||||||||||
Commercial loans | 849 | - | 755 | 755 | 16 | 895 | ||||||||||||||||
Consumer loans | 303 | 249 | 51 | 300 | 1 | 305 | ||||||||||||||||
Total impaired loans | $ | 40,679 | 7,231 | 31,431 | 38,662 | 1,679 | 40,147 | |||||||||||||||
31-Dec-13 | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Unpaid | Recorded | Recorded | Recorded | Related | Average | |||||||||||||||||
Contractual | Investment | Investment | Investment | Allowance | Outstanding | |||||||||||||||||
Principal | With No | With | in Impaired | Impaired | ||||||||||||||||||
Balance | Allowance | Allowance | Loans | Loans | ||||||||||||||||||
Real estate loans | ||||||||||||||||||||||
Construction and land development | $ | 9,861 | 6,293 | 868 | 7,161 | 53 | 8,289 | |||||||||||||||
Single-family residential | 7,853 | 1,428 | 5,633 | 7,061 | 123 | 7,859 | ||||||||||||||||
Single-family residential - | ||||||||||||||||||||||
Banco de la Gente stated income | 22,034 | - | 21,242 | 21,242 | 1,300 | 21,242 | ||||||||||||||||
Commercial | 5,079 | 3,045 | 1,489 | 4,534 | 182 | 4,171 | ||||||||||||||||
Multifamily and farmland | 177 | - | 177 | 177 | 1 | 184 | ||||||||||||||||
Total impaired real estate loans | 45,004 | 10,766 | 29,409 | 40,175 | 1,659 | 41,745 | ||||||||||||||||
Loans not secured by real estate | ||||||||||||||||||||||
Commercial loans | 999 | 257 | 724 | 981 | 15 | 826 | ||||||||||||||||
Consumer loans | 302 | 264 | 35 | 299 | 1 | 247 | ||||||||||||||||
Total impaired loans | $ | 46,305 | 11,287 | 30,168 | 41,455 | 1,675 | 42,818 | |||||||||||||||
Changes in the allowance for loan losses | ' | |||||||||||||||||||||
Changes in the allowance for loan losses for the three and six months ended June 30, 2014 and 2013 were as follows: | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Real Estate Loans | ||||||||||||||||||||||
Construction | Single- | Single- | Commercial | Multifamily | Commercial | Farm | Consumer | Unallocated | Total | |||||||||||||
and Land Development | Family | Family | and | and All | ||||||||||||||||||
Residential | Residential - | Farmland | Other | |||||||||||||||||||
Banco de la | ||||||||||||||||||||||
Gente | ||||||||||||||||||||||
Stated | ||||||||||||||||||||||
Income | ||||||||||||||||||||||
Six months ended June 30, 2014 | ||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||
Beginning balance | $ | 3,218 | 3,123 | 1,863 | 2,219 | 37 | 1,069 | - | 245 | 1,727 | 13,501 | |||||||||||
Charge-offs | (260 | ) | (194 | ) | (140 | ) | (131 | ) | - | (193 | ) | - | (254 | ) | - | (1,172 | ) | |||||
Recoveries | 282 | 60 | 17 | 161 | - | 26 | - | 82 | - | 628 | ||||||||||||
Provision | 147 | (141 | ) | (32 | ) | (410 | ) | (30 | ) | 179 | - | 180 | (175 | ) | (282 | ) | ||||||
Ending balance | $ | 3,387 | 2,848 | 1,708 | 1,839 | 7 | 1,081 | - | 253 | 1,552 | 12,675 | |||||||||||
Three months ended June 30, 2014 | ||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||
Beginning balance | $ | 3,133 | 3,132 | 1,767 | 2,196 | 36 | 945 | - | 230 | 1,539 | 12,978 | |||||||||||
Charge-offs | - | (171 | ) | (108 | ) | (20 | ) | - | (181 | ) | - | (117 | ) | - | (597 | ) | ||||||
Recoveries | 3 | 52 | 5 | 101 | - | 21 | - | 45 | - | 227 | ||||||||||||
Provision | 251 | (165 | ) | 44 | (438 | ) | (29 | ) | 296 | - | 95 | 13 | 67 | |||||||||
Ending balance | $ | 3,387 | 2,848 | 1,708 | 1,839 | 7 | 1,081 | - | 253 | 1,552 | 12,675 | |||||||||||
Allowance for loan losses June 30, 2014: | ||||||||||||||||||||||
Ending balance: individually | ||||||||||||||||||||||
evaluated for impairment | $ | - | 67 | 1,175 | - | - | 242 | - | - | - | 1,484 | |||||||||||
Ending balance: collectively | ||||||||||||||||||||||
evaluated for impairment | 3,387 | 2,781 | 533 | 1,839 | 7 | 839 | - | 253 | 1,552 | 11,191 | ||||||||||||
Ending balance | $ | 3,387 | 2,848 | 1,708 | 1,839 | 7 | 1,081 | - | 253 | 1,552 | 12,675 | |||||||||||
Loans June 30, 2014: | ||||||||||||||||||||||
Ending balance | $ | 59,843 | 196,192 | 48,165 | 214,378 | 11,821 | 78,056 | 93 | 24,788 | - | 633,336 | |||||||||||
Ending balance: individually | ||||||||||||||||||||||
evaluated for impairment | $ | 5,297 | 2,325 | 19,287 | - | - | 3,307 | - | 250 | - | 30,466 | |||||||||||
Ending balance: collectively | ||||||||||||||||||||||
evaluated for impairment | $ | 54,546 | 193,867 | 28,878 | 214,378 | 11,821 | 74,749 | 93 | 24,538 | - | 602,870 | |||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Real Estate Loans | ||||||||||||||||||||||
Construction | Single- | Single- | Commercial | Multifamily | Commercial | Farm | Consumer | Unallocated | Total | |||||||||||||
and Land Development | Family | Family | and | and All | ||||||||||||||||||
Residential | Residential - | Farmland | Other | |||||||||||||||||||
Banco de la | ||||||||||||||||||||||
Gente | ||||||||||||||||||||||
Stated | ||||||||||||||||||||||
Income | ||||||||||||||||||||||
Six months ended June 30, 2013 | ||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||
Beginning balance | $ | 4,399 | 3,231 | 1,998 | 2,049 | 28 | 1,088 | - | 245 | 1,385 | 14,423 | |||||||||||
Charge-offs | (715 | ) | (636 | ) | (224 | ) | (275 | ) | - | (382 | ) | - | (281 | ) | - | (2,513 | ) | |||||
Recoveries | 26 | 43 | 70 | 50 | - | 25 | - | 78 | - | 292 | ||||||||||||
Provision | 1,015 | 666 | 80 | 34 | 6 | 91 | - | 187 | (252 | ) | 1,827 | |||||||||||
Ending balance | $ | 4,725 | 3,304 | 1,924 | 1,858 | 34 | 822 | - | 229 | 1,133 | 14,029 | |||||||||||
Three months ended June 30, 2013 | ||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||
Beginning balance | $ | 4,785 | 3,182 | 1,976 | 1,811 | 30 | 1,209 | - | 232 | 1,187 | 14,412 | |||||||||||
Charge-offs | (218 | ) | (274 | ) | (72 | ) | (275 | ) | - | (361 | ) | - | (134 | ) | - | (1,334 | ) | |||||
Recoveries | 25 | 24 | 70 | 2 | - | 14 | - | 43 | - | 178 | ||||||||||||
Provision | 133 | 372 | (50 | ) | 320 | 4 | (40 | ) | - | 88 | (54 | ) | 773 | |||||||||
Ending balance | $ | 4,725 | 3,304 | 1,924 | 1,858 | 34 | 822 | - | 229 | 1,133 | 14,029 | |||||||||||
Allowance for loan losses June 30, 2013: | ||||||||||||||||||||||
Ending balance: individually | ||||||||||||||||||||||
evaluated for impairment | $ | 6 | 343 | 1,234 | - | - | - | - | - | - | 1,583 | |||||||||||
Ending balance: collectively | ||||||||||||||||||||||
evaluated for impairment | 4,719 | 2,961 | 690 | 1,858 | 34 | 822 | - | 229 | 1,133 | 12,446 | ||||||||||||
Ending balance | $ | 4,725 | 3,304 | 1,924 | 1,858 | 34 | 822 | - | 229 | 1,133 | 14,029 | |||||||||||
Loans June 30, 2013: | ||||||||||||||||||||||
Ending balance | $ | 70,112 | 192,601 | 50,454 | 191,368 | 10,918 | 66,161 | 24 | 26,434 | - | 608,072 | |||||||||||
Ending balance: individually | ||||||||||||||||||||||
evaluated for impairment | $ | 7,626 | 3,480 | 19,912 | 3,125 | - | - | - | 279 | - | 34,422 | |||||||||||
Ending balance: collectively | ||||||||||||||||||||||
evaluated for impairment | $ | 62,486 | 189,121 | 30,542 | 188,243 | 10,918 | 66,161 | 24 | 26,155 | - | 573,650 | |||||||||||
Credit risk profile of each loan type based on internally assigned risk grade | ' | |||||||||||||||||||||
The following tables present the credit risk profile of each loan type based on internally assigned risk grades as of June 30, 2014 and December 31, 2013: | ||||||||||||||||||||||
30-Jun-14 | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Real Estate Loans | ||||||||||||||||||||||
Construction | Single- | Single- | Commercial | Multifamily | Commercial | Farm | Consumer | All Other | Total | |||||||||||||
and Land Development | Family | Family | and | |||||||||||||||||||
Residential | Residential - | Farmland | ||||||||||||||||||||
Banco de la | ||||||||||||||||||||||
Gente | ||||||||||||||||||||||
Stated | ||||||||||||||||||||||
Income | ||||||||||||||||||||||
1- Excellent Quality | $ | - | 15,376 | - | - | - | 720 | - | 1,386 | - | 17,482 | |||||||||||
2- High Quality | 8,224 | 66,361 | - | 37,883 | 682 | 11,404 | - | 3,659 | 1,972 | 130,185 | ||||||||||||
3- Good Quality | 23,249 | 71,086 | 21,528 | 129,951 | 6,621 | 51,697 | 93 | 4,424 | 10,439 | 319,088 | ||||||||||||
4- Management Attention | 12,949 | 32,416 | 8,293 | 35,900 | 1,643 | 12,452 | - | 575 | 2,234 | 106,462 | ||||||||||||
5- Watch | 7,355 | 5,914 | 7,040 | 6,661 | 2,706 | 944 | - | 20 | - | 30,640 | ||||||||||||
6- Substandard | 8,066 | 5,039 | 11,304 | 3,983 | 169 | 770 | - | 77 | - | 29,408 | ||||||||||||
7- Doubtful | - | - | - | - | - | - | - | - | - | - | ||||||||||||
8- Loss | - | - | - | - | - | 69 | - | 2 | - | 71 | ||||||||||||
Total | $ | 59,843 | 196,192 | 48,165 | 214,378 | 11,821 | 78,056 | 93 | 10,143 | 14,645 | 633,336 | |||||||||||
31-Dec-13 | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Real Estate Loans | ||||||||||||||||||||||
Construction | Single- | Single- | Commercial | Multifamily | Commercial | Farm | Consumer | All Other | Total | |||||||||||||
and Land Development | Family | Family | and | |||||||||||||||||||
Residential | Residential - | Farmland | ||||||||||||||||||||
Banco de la | ||||||||||||||||||||||
Gente | ||||||||||||||||||||||
Stated | ||||||||||||||||||||||
Income | ||||||||||||||||||||||
1- Excellent Quality | $ | 7 | 15,036 | - | - | - | 365 | - | 1,270 | - | 16,678 | |||||||||||
2- High Quality | 7,852 | 60,882 | - | 33,340 | 715 | 8,442 | - | 3,519 | 2,139 | 116,889 | ||||||||||||
3- Good Quality | 22,899 | 73,118 | 22,255 | 123,604 | 7,882 | 44,353 | 19 | 4,061 | 8,565 | 306,756 | ||||||||||||
4- Management Attention | 14,464 | 34,090 | 8,369 | 42,914 | 286 | 13,704 | - | 358 | 2,329 | 116,514 | ||||||||||||
5- Watch | 8,163 | 6,806 | 8,113 | 5,190 | 2,741 | 320 | - | 50 | - | 31,383 | ||||||||||||
6- Substandard | 10,357 | 6,043 | 10,726 | 4,239 | 177 | 863 | - | 330 | - | 32,735 | ||||||||||||
7- Doubtful | - | - | - | - | - | - | - | - | - | - | ||||||||||||
8- Loss | - | - | - | - | - | - | - | 5 | - | 5 | ||||||||||||
Total | $ | 63,742 | 195,975 | 49,463 | 209,287 | 11,801 | 68,047 | 19 | 9,593 | 13,033 | 620,960 | |||||||||||
Analysis of loan modifications | ' | |||||||||||||||||||||
The following table presents an analysis of loan modifications during the six months ended June 30, 2014: | ||||||||||||||||||||||
Six months ended June 30, 2014 | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Number of | Pre-Modification | Post-Modification Outstanding | ||||||||||||||||||||
Contracts | Outstanding | Recorded | ||||||||||||||||||||
Recorded | Investment | |||||||||||||||||||||
Investment | ||||||||||||||||||||||
Real estate loans | ||||||||||||||||||||||
Construction and land development | 1 | $ | 316 | 316 | ||||||||||||||||||
Single-family residential | 1 | 734 | 734 | |||||||||||||||||||
Single-family residential - | ||||||||||||||||||||||
Banco de la Gente stated income | 6 | 494 | 494 | |||||||||||||||||||
Total real estate TDR loans | 8 | 1,544 | 1,544 | |||||||||||||||||||
Total TDR loans | 8 | $ | 1,544 | 1,544 | ||||||||||||||||||
The following tables present an analysis of loan modifications during the three and six months ended June 30, 2013: | ||||||||||||||||||||||
Three months ended June 30, 2013 | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Number of | Pre-Modification | Post-Modification Outstanding | ||||||||||||||||||||
Contracts | Outstanding | Recorded | ||||||||||||||||||||
Recorded | Investment | |||||||||||||||||||||
Investment | ||||||||||||||||||||||
Real estate loans | ||||||||||||||||||||||
Construction and land development | 1 | $ | 724 | 712 | ||||||||||||||||||
Single-family residential | 2 | 78 | 78 | |||||||||||||||||||
Single-family residential - | ||||||||||||||||||||||
Banco de la Gente stated income | 1 | 140 | 138 | |||||||||||||||||||
Total real estate TDR loans | 4 | 942 | 928 | |||||||||||||||||||
Total TDR loans | 4 | $ | 942 | 928 | ||||||||||||||||||
Six months ended June 30, 2013 | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Number of | Pre-Modification | Post-Modification Outstanding | ||||||||||||||||||||
Contracts | Outstanding | Recorded | ||||||||||||||||||||
Recorded | Investment | |||||||||||||||||||||
Investment | ||||||||||||||||||||||
Real estate loans | ||||||||||||||||||||||
Construction and land development | 2 | $ | 841 | 829 | ||||||||||||||||||
Single-family residential | 2 | 78 | 78 | |||||||||||||||||||
Single-family residential - | ||||||||||||||||||||||
Banco de la Gente stated income | 4 | 472 | 469 | |||||||||||||||||||
Total real estate TDR loans | 8 | 1,391 | 1,376 | |||||||||||||||||||
Total TDR loans | 8 | $ | 1,391 | 1,376 | ||||||||||||||||||
4_Net_Earnings_Per_Common_Shar1
4. Net Earnings Per Common Share (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Reconciliations of the amounts used in the computation of both basic earnings per common share and diluted earnings per common share | ' | |||||||
The reconciliation of the amounts used in the computation of both “basic earnings per common share” and “diluted earnings per common share” for the three and six months ended June 30, 2014 and 2013 is as follows: | ||||||||
For the three months ended June 30, 2014 | ||||||||
Net Earnings | Common Shares | Per Share | ||||||
Available to | Amount | |||||||
Common | ||||||||
Shareholders | ||||||||
(Dollars in | ||||||||
thousands) | ||||||||
Basic earnings per common share | $ | 2,551 | 5,616,008 | $ | 0.45 | |||
Effect of dilutive securities: | ||||||||
Stock options | - | 25,471 | ||||||
Diluted earnings per common share | $ | 2,551 | 5,641,479 | $ | 0.45 | |||
For the six months ended June 30, 2014 | ||||||||
Net Earnings | Common Shares | Per Share | ||||||
Available to | Amount | |||||||
Common | ||||||||
Shareholders | ||||||||
(Dollars in | ||||||||
thousands) | ||||||||
Basic earnings per common share | $ | 5,130 | 5,614,758 | $ | 0.91 | |||
Effect of dilutive securities: | ||||||||
Stock options | - | 22,432 | ||||||
Diluted earnings per common share | $ | 5,130 | 5,637,190 | $ | 0.91 | |||
For the three months ended June 30, 2013 | ||||||||
Net Earnings | Common Shares | Per Share | ||||||
Available to | Amount | |||||||
Common | ||||||||
Shareholders | ||||||||
(Dollars in | ||||||||
thousands) | ||||||||
Basic earnings per common share | $ | 1,477 | 5,613,495 | $ | 0.26 | |||
Effect of dilutive securities: | ||||||||
Stock options | - | 5,589 | ||||||
Diluted earnings per common share | $ | 1,477 | 5,619,084 | $ | 0.26 | |||
For the six months ended June 30, 2013 | ||||||||
Net Earnings | Common Shares | Per Share | ||||||
Available to | Amount | |||||||
Common | ||||||||
Shareholders | ||||||||
(Dollars in | ||||||||
thousands) | ||||||||
Basic earnings per common share | $ | 3,078 | 5,613,495 | $ | 0.55 | |||
Effect of dilutive securities: | ||||||||
Stock options | - | 5,185 | ||||||
Diluted earnings per common share | $ | 3,078 | 5,618,680 | $ | 0.55 | |||
6_Fair_Value_Tables
6. Fair Value (Tables) | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||
Available for sale securities measured at fair value on a recurring basis | ' | |||||||||||
The table below presents the balance of securities available for sale, which are measured at fair value on a recurring basis by level within the fair value hierarchy, as of June 30, 2014 and December 31, 2013. | ||||||||||||
(Dollars in thousands) | ||||||||||||
30-Jun-14 | ||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | |||||||||
Measurements | Valuation | Valuation | Valuation | |||||||||
Mortgage-backed securities | $ | 117,514 | - | 117,514 | - | |||||||
U.S. Government | ||||||||||||
sponsored enterprises | $ | 25,101 | - | 25,101 | - | |||||||
State and political subdivisions | $ | 148,629 | - | 148,629 | - | |||||||
Corporate bonds | $ | 3,487 | - | 3,487 | - | |||||||
Trust preferred securities | $ | 750 | - | - | 750 | |||||||
Equity securities | $ | 1,684 | 1,684 | - | - | |||||||
(Dollars in thousands) | ||||||||||||
31-Dec-13 | ||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | |||||||||
Measurements | Valuation | Valuation | Valuation | |||||||||
Mortgage-backed securities | $ | 123,977 | - | 123,977 | - | |||||||
U.S. Government | ||||||||||||
sponsored enterprises | $ | 22,143 | - | 22,143 | - | |||||||
State and political subdivisions | $ | 145,368 | - | 145,368 | - | |||||||
Corporate bonds | $ | 3,463 | - | 3,463 | - | |||||||
Trust preferred securities | $ | 1,250 | - | - | 1,250 | |||||||
Equity securities | $ | 1,689 | 1,689 | - | - | |||||||
Fair value measurements of investment securities available for sale using Level 3 significant unobservable inputs | ' | |||||||||||
The following is an analysis of fair value measurements of investment securities available for sale using Level 3, significant unobservable inputs, for the six months ended June 30, 2014. | ||||||||||||
(Dollars in thousands) | ||||||||||||
Investment Securities | ||||||||||||
Available for Sale | ||||||||||||
Level 3 Valuation | ||||||||||||
Balance, beginning of period | $ | 1,250 | ||||||||||
Change in book value | - | |||||||||||
Change in gain/(loss) realized and unrealized | - | |||||||||||
Purchases/(sales and calls) | (500 | ) | ||||||||||
Transfers in and/or (out) of Level 3 | - | |||||||||||
Balance, end of period | $ | 750 | ||||||||||
Change in unrealized gain/(loss) for assets still held in Level 3 | $ | - | ||||||||||
Fair value measurements for impaired loans and other real estate on a non-recurring basis | ' | |||||||||||
(Dollars in thousands) | ||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | Total Gains/(Losses) for | ||||||||
Measurements | Valuation | Valuation | Valuation | the Six Months Ended | ||||||||
30-Jun-14 | 30-Jun-14 | |||||||||||
Impaired loans | $ | 36,983 | - | - | 36,983 | (433 | ) | |||||
Other real estate | $ | 3,532 | - | - | 3,532 | (150 | ) | |||||
(Dollars in thousands) | ||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | Total Gains/(Losses) for | ||||||||
Measurements | Valuation | Valuation | Valuation | the Year Ended | ||||||||
December 31, 2013 | December 31, 2013 | |||||||||||
Impaired loans | $ | 39,780 | - | - | 39,780 | (3,207 | ) | |||||
Other real estate | $ | 1,679 | - | - | 1,679 | (581 | ) | |||||
Carrying amount and estimated fair value of the Company's financial instruments | ' | |||||||||||
The carrying amount and estimated fair value of financial instruments at June 30, 2014 and December 31, 2013 are as follows: | ||||||||||||
(Dollars in thousands) | ||||||||||||
Fair Value Measurements at June 30, 2014 | ||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Total | ||||||||
Amount | ||||||||||||
Assets: | ||||||||||||
Cash and cash equivalents | $ | 75,068 | 75,068 | - | - | 75,068 | ||||||
Investment securities available for sale | 297,165 | 1,684 | 294,731 | 750 | 297,165 | |||||||
Other investments | 4,706 | - | - | 4,706 | 4,706 | |||||||
Mortgage loans held for sale | 2,048 | - | - | 2,048 | 2,048 | |||||||
Loans, net | 620,661 | - | - | 623,799 | 623,799 | |||||||
Cash surrender value of life insurance | 13,914 | - | 13,914 | - | 13,914 | |||||||
Liabilities: | ||||||||||||
Deposits | $ | 811,479 | - | 810,415 | - | 810,415 | ||||||
Securities sold under agreements | ||||||||||||
to repurchase | 46,764 | - | 46,764 | - | 46,764 | |||||||
FHLB borrowings | 65,000 | - | 65,984 | - | 65,984 | |||||||
Junior subordinated debentures | 20,619 | - | 20,619 | - | 20,619 | |||||||
(Dollars in thousands) | ||||||||||||
Fair Value Measurements at December 31, 2013 | ||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Total | ||||||||
Amount | ||||||||||||
Assets: | ||||||||||||
Cash and cash equivalents | $ | 76,773 | 76,773 | - | - | 76,773 | ||||||
Investment securities available for sale | 297,890 | 1,689 | 294,951 | 1,250 | 297,890 | |||||||
Other investments | 4,990 | - | - | 4,990 | 4,990 | |||||||
Mortgage loans held for sale | 497 | - | - | 497 | 497 | |||||||
Loans, net | 607,459 | - | - | 612,132 | 612,132 | |||||||
Cash surrender value of life insurance | 13,706 | - | 13,706 | - | 13,706 | |||||||
Liabilities: | ||||||||||||
Deposits | $ | 799,361 | - | 798,460 | - | 798,460 | ||||||
Securities sold under agreements | ||||||||||||
to repurchase | 45,396 | - | 45,396 | - | 45,396 | |||||||
FHLB borrowings | 65,000 | - | 65,891 | - | 65,891 | |||||||
Junior subordinated debentures | 20,619 | - | 20,619 | - | 20,619 | |||||||
2_Investment_Securities_Detail
2. Investment Securities (Details) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Investment securities available for sale | ' | ' |
Amortized Cost | $291,524 | ' |
Estimated Fair Value | 297,165 | 297,890 |
Mortgage-backed securities | ' | ' |
Investment securities available for sale | ' | ' |
Amortized Cost | 115,747 | 123,706 |
Gross Unrealized Gains | 1,937 | 1,040 |
Gross Unrealized Losses | 170 | 769 |
Estimated Fair Value | 117,514 | 123,977 |
U.S. Government sponsored enterprises | ' | ' |
Investment securities available for sale | ' | ' |
Amortized Cost | 25,211 | 22,115 |
Gross Unrealized Gains | 107 | 97 |
Gross Unrealized Losses | 217 | 69 |
Estimated Fair Value | 25,101 | 22,143 |
State and political subdivisions | ' | ' |
Investment securities available for sale | ' | ' |
Amortized Cost | 145,573 | 148,468 |
Gross Unrealized Gains | 4,398 | 1,987 |
Gross Unrealized Losses | 1,342 | 5,087 |
Estimated Fair Value | 148,629 | 145,368 |
Corporate bonds | ' | ' |
Investment securities available for sale | ' | ' |
Amortized Cost | 3,495 | 3,522 |
Gross Unrealized Gains | 14 | 11 |
Gross Unrealized Losses | 22 | 70 |
Estimated Fair Value | 3,487 | 3,463 |
Trust preferred securities | ' | ' |
Investment securities available for sale | ' | ' |
Amortized Cost | 750 | 1,250 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 750 | 1,250 |
Equity securities | ' | ' |
Investment securities available for sale | ' | ' |
Amortized Cost | 748 | 748 |
Gross Unrealized Gains | 936 | 941 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 1,684 | 1,689 |
Total | ' | ' |
Investment securities available for sale | ' | ' |
Amortized Cost | 291,524 | 299,809 |
Gross Unrealized Gains | 7,392 | 4,076 |
Gross Unrealized Losses | 1,751 | 5,995 |
Estimated Fair Value | $297,165 | $297,890 |
2_Investment_securities_Contin
2. Investment securities, Continuous Unrealized Loss Position (Details) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Investment securities with continuous unrealized loss position | ' | ' |
Less than 12 Months, Fair Value | $38,528 | $129,742 |
Less than 12 Months, Unrealized Losses | 263 | 5,639 |
12 Months or More, Fair Value | 57,824 | 12,463 |
12 Months or More, Unrealized Losses | 1,488 | 356 |
Total, Fair Value | 96,352 | 142,205 |
Total, Unrealized Losses | 1,751 | 5,995 |
Mortgage-backed securities | ' | ' |
Investment securities with continuous unrealized loss position | ' | ' |
Less than 12 Months, Fair Value | 8,550 | 40,857 |
Less than 12 Months, Unrealized Losses | 6 | 691 |
12 Months or More, Fair Value | 18,386 | 10,128 |
12 Months or More, Unrealized Losses | 164 | 78 |
Total, Fair Value | 26,936 | 50,985 |
Total, Unrealized Losses | 170 | 769 |
U.S. Government sponsored enterprises | ' | ' |
Investment securities with continuous unrealized loss position | ' | ' |
Less than 12 Months, Fair Value | 16,483 | 9,714 |
Less than 12 Months, Unrealized Losses | 217 | 69 |
12 Months or More, Fair Value | 0 | 0 |
12 Months or More, Unrealized Losses | 0 | 0 |
Total, Fair Value | 16,483 | 9,714 |
Total, Unrealized Losses | 217 | 69 |
State and political subdivisions | ' | ' |
Investment securities with continuous unrealized loss position | ' | ' |
Less than 12 Months, Fair Value | 12,495 | 77,187 |
Less than 12 Months, Unrealized Losses | 40 | 4,863 |
12 Months or More, Fair Value | 38,905 | 1,824 |
12 Months or More, Unrealized Losses | 1,302 | 224 |
Total, Fair Value | 51,400 | 79,011 |
Total, Unrealized Losses | 1,342 | 5,087 |
Corporate bonds | ' | ' |
Investment securities with continuous unrealized loss position | ' | ' |
Less than 12 Months, Fair Value | 1,000 | 1,984 |
Less than 12 Months, Unrealized Losses | 0 | 16 |
12 Months or More, Fair Value | 533 | 511 |
12 Months or More, Unrealized Losses | 22 | 54 |
Total, Fair Value | 1,533 | 2,495 |
Total, Unrealized Losses | $22 | $70 |
2_Investment_securities_Contra
2. Investment securities, Contractual Maturity (Details) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Amortized Cost | ' |
Due within one year | $4,392 |
Due from one to five years | 37,594 |
Due from five to ten years | 114,940 |
Due after ten years | 18,103 |
Mortgage-backed securities | 115,747 |
Equity securities | 748 |
Total | 291,524 |
Estimated Fair Value | ' |
Due within one year | 4,401 |
Due from one to five years | 38,956 |
Due from five to ten years | 116,246 |
Due after ten years | 18,364 |
Mortgage-backed securities | 117,514 |
Equity securities | 1,684 |
Total | $297,165 |
2_Investment_Securities_Detail1
2. Investment Securities (Details Narrative) (USD $) | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Investment Securities Details Narrative | ' | ' | ' |
Unrealized losses in the investment securites portfolio relating to debt securities | $1,800 | ' | ' |
Proceeds from sales of investment securities available for sale | 677 | 17,463 | ' |
Gains on sales of available-to-sale securities | 26 | 738 | ' |
Loss on sales of available-to-sale securities | ' | 124 | ' |
Securities pledged to secure public deposits | $83,900 | ' | $86,000 |
3_Loans_Details
3. Loans (Details) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||||
Major classifications | ' | ' | ' | ' | ' | ' |
Total loans | $633,336 | ' | $620,960 | $608,072 | ' | ' |
Less allowance for loan losses | 12,675 | 12,978 | 13,501 | 14,029 | 14,412 | 14,423 |
Total Net loans | 620,661 | ' | 607,459 | ' | ' | ' |
Construction and land development | ' | ' | ' | ' | ' | ' |
Major classifications | ' | ' | ' | ' | ' | ' |
Total loans | 59,843 | ' | 63,742 | 70,112 | ' | ' |
Less allowance for loan losses | 3,387 | 3,133 | 3,218 | 4,725 | 4,785 | 4,399 |
Single-family residential | ' | ' | ' | ' | ' | ' |
Major classifications | ' | ' | ' | ' | ' | ' |
Total loans | 196,192 | ' | 195,975 | 192,601 | ' | ' |
Less allowance for loan losses | 2,848 | 3,132 | 3,123 | 3,304 | 3,182 | 3,231 |
Single-family residential - Banco de la Gente stated income | ' | ' | ' | ' | ' | ' |
Major classifications | ' | ' | ' | ' | ' | ' |
Total loans | 48,165 | ' | 49,463 | 50,454 | ' | ' |
Less allowance for loan losses | 1,708 | 1,767 | 1,863 | 1,924 | 1,976 | 1,998 |
Commercial | ' | ' | ' | ' | ' | ' |
Major classifications | ' | ' | ' | ' | ' | ' |
Total loans | 214,378 | ' | 209,287 | 191,368 | ' | ' |
Less allowance for loan losses | 1,839 | 2,196 | 2,219 | 1,858 | 1,811 | 2,049 |
Multifamily and Farmland | ' | ' | ' | ' | ' | ' |
Major classifications | ' | ' | ' | ' | ' | ' |
Total loans | 11,821 | ' | 11,801 | 10,918 | ' | ' |
Less allowance for loan losses | 7 | 36 | 37 | 34 | 30 | 28 |
Total real estate loans | ' | ' | ' | ' | ' | ' |
Major classifications | ' | ' | ' | ' | ' | ' |
Total loans | 530,399 | ' | 530,268 | ' | ' | ' |
Commercial loans (not secured by real estate) | ' | ' | ' | ' | ' | ' |
Major classifications | ' | ' | ' | ' | ' | ' |
Total loans | 78,056 | ' | 68,047 | 66,161 | ' | ' |
Less allowance for loan losses | 1,081 | 945 | 1,069 | 822 | 1,209 | 1,088 |
Farm loans (not secured by real estate) | ' | ' | ' | ' | ' | ' |
Major classifications | ' | ' | ' | ' | ' | ' |
Total loans | 93 | ' | 19 | 24 | ' | ' |
Less allowance for loan losses | 0 | 0 | 0 | 0 | 0 | 0 |
Consumer loans (not secured by real estate) | ' | ' | ' | ' | ' | ' |
Major classifications | ' | ' | ' | ' | ' | ' |
Total loans | 10,143 | ' | 9,593 | ' | ' | ' |
All other loans (not secured by real estate) | ' | ' | ' | ' | ' | ' |
Major classifications | ' | ' | ' | ' | ' | ' |
Total loans | $14,645 | ' | $13,033 | ' | ' | ' |
3_Loans_Past_Due_Details
3. Loans, Past Due (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | |||
Past due loans | ' | ' | ' |
Loans 30-89 Days Past Due | $7,108 | $20,192 | ' |
Loans 90 or More Days Past Due | 6,586 | 9,451 | ' |
Total Past Due Loans | 13,694 | 29,643 | ' |
Total Current Loans | 619,642 | 591,317 | ' |
Total loans | 633,336 | 620,960 | 608,072 |
Accruing Loans 90 or More Days Past Due | 392 | 882 | ' |
Construction and land development | ' | ' | ' |
Past due loans | ' | ' | ' |
Loans 30-89 Days Past Due | 830 | 3,416 | ' |
Loans 90 or More Days Past Due | 4,862 | 5,426 | ' |
Total Past Due Loans | 5,692 | 8,842 | ' |
Total Current Loans | 54,151 | 54,900 | ' |
Total loans | 59,843 | 63,742 | ' |
Accruing Loans 90 or More Days Past Due | 0 | 0 | ' |
Single-family residential | ' | ' | ' |
Past due loans | ' | ' | ' |
Loans 30-89 Days Past Due | 1,453 | 4,518 | ' |
Loans 90 or More Days Past Due | 667 | 1,555 | ' |
Total Past Due Loans | 2,120 | 6,073 | ' |
Total Current Loans | 194,072 | 189,902 | ' |
Total loans | 196,192 | 195,975 | ' |
Accruing Loans 90 or More Days Past Due | 392 | 0 | ' |
Single-family residential - Banco de la Gente stated income | ' | ' | ' |
Past due loans | ' | ' | ' |
Loans 30-89 Days Past Due | 1,874 | 9,833 | ' |
Loans 90 or More Days Past Due | 719 | 1,952 | ' |
Total Past Due Loans | 2,593 | 11,785 | ' |
Total Current Loans | 45,572 | 37,678 | ' |
Total loans | 48,165 | 49,463 | ' |
Accruing Loans 90 or More Days Past Due | 0 | 881 | ' |
Commercial | ' | ' | ' |
Past due loans | ' | ' | ' |
Loans 30-89 Days Past Due | 1,652 | 1,643 | ' |
Loans 90 or More Days Past Due | 289 | 486 | ' |
Total Past Due Loans | 1,941 | 2,129 | ' |
Total Current Loans | 212,437 | 207,158 | ' |
Total loans | 214,378 | 209,287 | ' |
Accruing Loans 90 or More Days Past Due | 0 | 0 | ' |
Multifamily and Farmland | ' | ' | ' |
Past due loans | ' | ' | ' |
Loans 30-89 Days Past Due | 169 | 177 | ' |
Loans 90 or More Days Past Due | 0 | 0 | ' |
Total Past Due Loans | 169 | 177 | ' |
Total Current Loans | 11,652 | 11,624 | ' |
Total loans | 11,821 | 11,801 | ' |
Accruing Loans 90 or More Days Past Due | 0 | 0 | ' |
Total real estate loans | ' | ' | ' |
Past due loans | ' | ' | ' |
Loans 30-89 Days Past Due | 5,978 | 19,587 | ' |
Loans 90 or More Days Past Due | 6,537 | 9,419 | ' |
Total Past Due Loans | 12,515 | 29,006 | ' |
Total Current Loans | 517,884 | 501,262 | ' |
Total loans | 530,399 | 530,268 | ' |
Accruing Loans 90 or More Days Past Due | 392 | 881 | ' |
Commercial loans (not secured by real estate) | ' | ' | ' |
Past due loans | ' | ' | ' |
Loans 30-89 Days Past Due | 1,001 | 424 | ' |
Loans 90 or More Days Past Due | 49 | 29 | ' |
Total Past Due Loans | 1,050 | 453 | ' |
Total Current Loans | 77,006 | 67,594 | ' |
Total loans | 78,056 | 68,047 | ' |
Accruing Loans 90 or More Days Past Due | 0 | 0 | ' |
Farm loans (not secured by real estate) | ' | ' | ' |
Past due loans | ' | ' | ' |
Loans 30-89 Days Past Due | 0 | 0 | ' |
Loans 90 or More Days Past Due | 0 | 0 | ' |
Total Past Due Loans | 0 | 0 | ' |
Total Current Loans | 93 | 19 | ' |
Total loans | 93 | 19 | ' |
Accruing Loans 90 or More Days Past Due | 0 | 0 | ' |
Consumer loans (not secured by real estate) | ' | ' | ' |
Past due loans | ' | ' | ' |
Loans 30-89 Days Past Due | 129 | 181 | ' |
Loans 90 or More Days Past Due | 0 | 3 | ' |
Total Past Due Loans | 129 | 184 | ' |
Total Current Loans | 10,014 | 9,409 | ' |
Total loans | 10,143 | 9,593 | ' |
Accruing Loans 90 or More Days Past Due | 0 | 1 | ' |
All other loans (not secured by real estate) | ' | ' | ' |
Past due loans | ' | ' | ' |
Loans 30-89 Days Past Due | 0 | 0 | ' |
Loans 90 or More Days Past Due | 0 | 0 | ' |
Total Past Due Loans | 0 | 0 | ' |
Total Current Loans | 14,645 | 13,033 | ' |
Total loans | 14,645 | 13,033 | ' |
Accruing Loans 90 or More Days Past Due | $0 | $0 | ' |
3_Loans_Nonaccrual_Details
3. Loans, Nonaccrual (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Non-accrual loans | ' | ' |
Non-accrual loans | $10,921 | $13,836 |
Construction and land development | ' | ' |
Non-accrual loans | ' | ' |
Non-accrual loans | 5,216 | 6,546 |
Single-family residential | ' | ' |
Non-accrual loans | ' | ' |
Non-accrual loans | 1,563 | 2,980 |
Single-family residential - Banco de la Gente stated income | ' | ' |
Non-accrual loans | ' | ' |
Non-accrual loans | 1,780 | 1,990 |
Commercial | ' | ' |
Non-accrual loans | ' | ' |
Non-accrual loans | 1,804 | 2,043 |
Total real estate loans | ' | ' |
Non-accrual loans | ' | ' |
Non-accrual loans | 10,363 | 13,559 |
Commercial loans (not secured by real estate) | ' | ' |
Non-accrual loans | ' | ' |
Non-accrual loans | 511 | 250 |
Consumer loans (not secured by real estate) | ' | ' |
Non-accrual loans | ' | ' |
Non-accrual loans | $47 | $27 |
3_Loans_Impaired_Details
3. Loans, Impaired (Details) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Impaired loans | ' | ' |
Unpaid Contractual Principal Balance | $40,679 | $46,305 |
Recorded Investment With No Allowance | 7,231 | 11,287 |
Recorded Investment With Allowance | 31,431 | 30,168 |
Recorded Investment in Impaired Loans | 38,662 | 41,455 |
Related Allowance | 1,679 | 1,675 |
Average Outstanding Impaired Loans | 40,147 | 42,818 |
Construction and land development | ' | ' |
Impaired loans | ' | ' |
Unpaid Contractual Principal Balance | 6,963 | 9,861 |
Recorded Investment With No Allowance | 3,784 | 6,293 |
Recorded Investment With Allowance | 2,355 | 868 |
Recorded Investment in Impaired Loans | 6,139 | 7,161 |
Related Allowance | 56 | 53 |
Average Outstanding Impaired Loans | 6,502 | 8,289 |
Single-family residential | ' | ' |
Impaired loans | ' | ' |
Unpaid Contractual Principal Balance | 5,972 | 7,853 |
Recorded Investment With No Allowance | 947 | 1,428 |
Recorded Investment With Allowance | 4,827 | 5,633 |
Recorded Investment in Impaired Loans | 5,774 | 7,061 |
Related Allowance | 132 | 123 |
Average Outstanding Impaired Loans | 7,507 | 7,859 |
Single-family residential - Banco de la Gente stated income | ' | ' |
Impaired loans | ' | ' |
Unpaid Contractual Principal Balance | 21,758 | 22,034 |
Recorded Investment With No Allowance | 0 | 0 |
Recorded Investment With Allowance | 21,129 | 21,242 |
Recorded Investment in Impaired Loans | 21,129 | 21,242 |
Related Allowance | 1,217 | 1,300 |
Average Outstanding Impaired Loans | 20,303 | 21,242 |
Commercial | ' | ' |
Impaired loans | ' | ' |
Unpaid Contractual Principal Balance | 4,665 | 5,079 |
Recorded Investment With No Allowance | 2,251 | 3,045 |
Recorded Investment With Allowance | 2,145 | 1,489 |
Recorded Investment in Impaired Loans | 4,396 | 4,534 |
Related Allowance | 256 | 182 |
Average Outstanding Impaired Loans | 4,463 | 4,171 |
Multifamily and Farmland | ' | ' |
Impaired loans | ' | ' |
Unpaid Contractual Principal Balance | 169 | 177 |
Recorded Investment With No Allowance | 0 | 0 |
Recorded Investment With Allowance | 169 | 177 |
Recorded Investment in Impaired Loans | 169 | 177 |
Related Allowance | 1 | 1 |
Average Outstanding Impaired Loans | 172 | 184 |
Total real estate loans | ' | ' |
Impaired loans | ' | ' |
Unpaid Contractual Principal Balance | 39,527 | 45,004 |
Recorded Investment With No Allowance | 6,982 | 10,766 |
Recorded Investment With Allowance | 30,625 | 29,409 |
Recorded Investment in Impaired Loans | 37,607 | 40,175 |
Related Allowance | 1,662 | 1,659 |
Average Outstanding Impaired Loans | 38,947 | 41,745 |
Commercial loans (not secured by real estate) | ' | ' |
Impaired loans | ' | ' |
Unpaid Contractual Principal Balance | 849 | 999 |
Recorded Investment With No Allowance | 0 | 257 |
Recorded Investment With Allowance | 755 | 724 |
Recorded Investment in Impaired Loans | 755 | 981 |
Related Allowance | 16 | 15 |
Average Outstanding Impaired Loans | 895 | 826 |
Consumer loans (not secured by real estate) | ' | ' |
Impaired loans | ' | ' |
Unpaid Contractual Principal Balance | 303 | 302 |
Recorded Investment With No Allowance | 249 | 264 |
Recorded Investment With Allowance | 51 | 35 |
Recorded Investment in Impaired Loans | 300 | 299 |
Related Allowance | 1 | 1 |
Average Outstanding Impaired Loans | $305 | $247 |
3_Loans_Allowance_for_Loan_Los
3. Loans, Allowance for Loan Losses (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Allowance for loan losses | ' | ' | ' | ' | ' |
Beginning balance | $12,978 | $14,412 | $13,501 | $14,423 | ' |
Charge-offs | -597 | -1,334 | -1,172 | -2,513 | ' |
Recoveries | 227 | 178 | 628 | 292 | ' |
Provision | 67 | 773 | -282 | 1,827 | ' |
Ending balance | 12,675 | 14,029 | 12,675 | 14,029 | ' |
Ending balance: individually evaluated for impairments | 1,484 | 1,583 | 1,484 | 1,583 | ' |
Ending balance: collectively evaluated for impairments | 11,191 | 12,446 | 11,191 | 12,446 | ' |
Ending balance | 12,675 | 14,029 | 12,675 | 14,029 | ' |
Loans | ' | ' | ' | ' | ' |
Ending balance | 633,336 | 608,072 | 633,336 | 608,072 | 620,960 |
Ending balance: individually evaluated for impairment | 30,466 | 34,422 | 30,466 | 34,422 | ' |
Ending balance: collectively evaluated for impairment | 602,870 | 573,650 | 602,870 | 573,650 | ' |
Construction and land development | ' | ' | ' | ' | ' |
Allowance for loan losses | ' | ' | ' | ' | ' |
Beginning balance | 3,133 | 4,785 | 3,218 | 4,399 | ' |
Charge-offs | 0 | -218 | -260 | -715 | ' |
Recoveries | 3 | 25 | 282 | 26 | ' |
Provision | 251 | 133 | 147 | 1,015 | ' |
Ending balance | 3,387 | 4,725 | 3,387 | 4,725 | ' |
Ending balance: individually evaluated for impairments | 0 | 6 | 0 | 6 | ' |
Ending balance: collectively evaluated for impairments | 3,387 | 4,719 | 3,387 | 4,719 | ' |
Ending balance | 3,387 | 4,725 | 3,387 | 4,725 | ' |
Loans | ' | ' | ' | ' | ' |
Ending balance | 59,843 | 70,112 | 59,843 | 70,112 | 63,742 |
Ending balance: individually evaluated for impairment | 5,297 | 7,626 | 5,297 | 7,626 | ' |
Ending balance: collectively evaluated for impairment | 54,546 | 62,486 | 54,546 | 62,486 | ' |
Single-family residential | ' | ' | ' | ' | ' |
Allowance for loan losses | ' | ' | ' | ' | ' |
Beginning balance | 3,132 | 3,182 | 3,123 | 3,231 | ' |
Charge-offs | -171 | -274 | -194 | -636 | ' |
Recoveries | 52 | 24 | 60 | 43 | ' |
Provision | -165 | 372 | -141 | 666 | ' |
Ending balance | 2,848 | 3,304 | 2,848 | 3,304 | ' |
Ending balance: individually evaluated for impairments | 67 | 343 | 67 | 343 | ' |
Ending balance: collectively evaluated for impairments | 2,781 | 2,961 | 2,781 | 2,961 | ' |
Ending balance | 2,848 | 3,304 | 2,848 | 3,304 | ' |
Loans | ' | ' | ' | ' | ' |
Ending balance | 196,192 | 192,601 | 196,192 | 192,601 | 195,975 |
Ending balance: individually evaluated for impairment | 2,325 | 3,480 | 2,325 | 3,480 | ' |
Ending balance: collectively evaluated for impairment | 193,867 | 189,121 | 193,867 | 189,121 | ' |
Single-family residential - Banco de la Gente stated income | ' | ' | ' | ' | ' |
Allowance for loan losses | ' | ' | ' | ' | ' |
Beginning balance | 1,767 | 1,976 | 1,863 | 1,998 | ' |
Charge-offs | -108 | -72 | -140 | -224 | ' |
Recoveries | 5 | 70 | 17 | 70 | ' |
Provision | 44 | -50 | -32 | 80 | ' |
Ending balance | 1,708 | 1,924 | 1,708 | 1,924 | ' |
Ending balance: individually evaluated for impairments | 1,175 | 1,234 | 1,175 | 1,234 | ' |
Ending balance: collectively evaluated for impairments | 533 | 690 | 533 | 690 | ' |
Ending balance | 1,708 | 1,924 | 1,708 | 1,924 | ' |
Loans | ' | ' | ' | ' | ' |
Ending balance | 48,165 | 50,454 | 48,165 | 50,454 | 49,463 |
Ending balance: individually evaluated for impairment | 19,287 | 19,912 | 19,287 | 19,912 | ' |
Ending balance: collectively evaluated for impairment | 28,878 | 30,542 | 28,878 | 30,542 | ' |
Commercial | ' | ' | ' | ' | ' |
Allowance for loan losses | ' | ' | ' | ' | ' |
Beginning balance | 2,196 | 1,811 | 2,219 | 2,049 | ' |
Charge-offs | -20 | -275 | -131 | -275 | ' |
Recoveries | 101 | 2 | 161 | 50 | ' |
Provision | -438 | 320 | -410 | 34 | ' |
Ending balance | 1,839 | 1,858 | 1,839 | 1,858 | ' |
Ending balance: individually evaluated for impairments | 0 | 0 | 0 | 0 | ' |
Ending balance: collectively evaluated for impairments | 1,839 | 1,858 | 1,839 | 1,858 | ' |
Ending balance | 1,839 | 1,858 | 1,839 | 1,858 | ' |
Loans | ' | ' | ' | ' | ' |
Ending balance | 214,378 | 191,368 | 214,378 | 191,368 | 209,287 |
Ending balance: individually evaluated for impairment | 0 | 3,125 | 0 | 3,125 | ' |
Ending balance: collectively evaluated for impairment | 214,378 | 188,243 | 214,378 | 188,243 | ' |
Multifamily and Farmland | ' | ' | ' | ' | ' |
Allowance for loan losses | ' | ' | ' | ' | ' |
Beginning balance | 36 | 30 | 37 | 28 | ' |
Charge-offs | 0 | 0 | 0 | 0 | ' |
Recoveries | 0 | 0 | 0 | 0 | ' |
Provision | -29 | 4 | -30 | 6 | ' |
Ending balance | 7 | 34 | 7 | 34 | ' |
Ending balance: individually evaluated for impairments | 0 | 0 | 0 | 0 | ' |
Ending balance: collectively evaluated for impairments | 7 | 34 | 7 | 34 | ' |
Ending balance | 7 | 34 | 7 | 34 | ' |
Loans | ' | ' | ' | ' | ' |
Ending balance | 11,821 | 10,918 | 11,821 | 10,918 | 11,801 |
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 | ' |
Ending balance: collectively evaluated for impairment | 11,821 | 10,918 | 11,821 | 10,918 | ' |
Commercial loans (not secured by real estate) | ' | ' | ' | ' | ' |
Allowance for loan losses | ' | ' | ' | ' | ' |
Beginning balance | 945 | 1,209 | 1,069 | 1,088 | ' |
Charge-offs | -181 | -361 | -193 | -382 | ' |
Recoveries | 21 | 14 | 26 | 25 | ' |
Provision | 296 | -40 | 179 | 91 | ' |
Ending balance | 1,081 | 822 | 1,081 | 822 | ' |
Ending balance: individually evaluated for impairments | 242 | 0 | 242 | 0 | ' |
Ending balance: collectively evaluated for impairments | 839 | 822 | 839 | 822 | ' |
Ending balance | 1,081 | 822 | 1,081 | 822 | ' |
Loans | ' | ' | ' | ' | ' |
Ending balance | 78,056 | 66,161 | 78,056 | 66,161 | 68,047 |
Ending balance: individually evaluated for impairment | 3,307 | 0 | 3,307 | 0 | ' |
Ending balance: collectively evaluated for impairment | 74,749 | 66,161 | 74,749 | 66,161 | ' |
Farm loans (not secured by real estate) | ' | ' | ' | ' | ' |
Allowance for loan losses | ' | ' | ' | ' | ' |
Beginning balance | 0 | 0 | 0 | 0 | ' |
Charge-offs | 0 | 0 | 0 | 0 | ' |
Recoveries | 0 | 0 | 0 | 0 | ' |
Provision | 0 | 0 | 0 | 0 | ' |
Ending balance | 0 | 0 | 0 | 0 | ' |
Ending balance: individually evaluated for impairments | 0 | 0 | 0 | 0 | ' |
Ending balance: collectively evaluated for impairments | 0 | 0 | 0 | 0 | ' |
Ending balance | 0 | 0 | 0 | 0 | ' |
Loans | ' | ' | ' | ' | ' |
Ending balance | 93 | 24 | 93 | 24 | 19 |
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 | ' |
Ending balance: collectively evaluated for impairment | 93 | 24 | 93 | 24 | ' |
Consumer And All Other Loans | ' | ' | ' | ' | ' |
Allowance for loan losses | ' | ' | ' | ' | ' |
Beginning balance | 230 | 232 | 245 | 245 | ' |
Charge-offs | -117 | -134 | -254 | -281 | ' |
Recoveries | 45 | 43 | 82 | 78 | ' |
Provision | 95 | 88 | 180 | 187 | ' |
Ending balance | 253 | 229 | 253 | 229 | ' |
Ending balance: individually evaluated for impairments | 0 | 0 | 0 | 0 | ' |
Ending balance: collectively evaluated for impairments | 253 | 229 | 253 | 229 | ' |
Ending balance | 253 | 229 | 253 | 229 | ' |
Loans | ' | ' | ' | ' | ' |
Ending balance | 24,788 | 26,434 | 24,788 | 26,434 | ' |
Ending balance: individually evaluated for impairment | 250 | 279 | 250 | 279 | ' |
Ending balance: collectively evaluated for impairment | 24,538 | 26,155 | 24,538 | 26,155 | ' |
Unallocated | ' | ' | ' | ' | ' |
Allowance for loan losses | ' | ' | ' | ' | ' |
Beginning balance | 1,539 | 1,187 | 1,727 | 1,385 | ' |
Charge-offs | 0 | 0 | 0 | 0 | ' |
Recoveries | 0 | 0 | 0 | 0 | ' |
Provision | 13 | -54 | -175 | -252 | ' |
Ending balance | 1,552 | 1,133 | 1,552 | 1,133 | ' |
Ending balance: individually evaluated for impairments | 0 | 0 | 0 | 0 | ' |
Ending balance: collectively evaluated for impairments | 1,552 | 1,133 | 1,552 | 1,133 | ' |
Ending balance | 1,552 | 1,133 | 1,552 | 1,133 | ' |
Loans | ' | ' | ' | ' | ' |
Ending balance | 0 | 0 | 0 | 0 | ' |
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 | ' |
Ending balance: collectively evaluated for impairment | $0 | $0 | $0 | $0 | ' |
3_Loans_Credit_Risk_Details
3. Loans, Credit Risk (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | |||
Credit risk profile | ' | ' | ' |
Total Loans | $633,336 | $620,960 | $608,072 |
Excellent Quality | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 17,482 | 16,678 | ' |
High Quality | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 130,185 | 116,889 | ' |
Good Quality | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 319,088 | 306,756 | ' |
Management Attention | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 106,462 | 116,514 | ' |
Watch | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 30,640 | 31,383 | ' |
Substandard | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 29,408 | 32,735 | ' |
Doubtful | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 0 | 0 | ' |
Loss | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 71 | 5 | ' |
Construction and land development | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 59,843 | 63,742 | ' |
Single-family residential | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 196,192 | 195,975 | ' |
Single-family residential - Banco de la Gente stated income | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 48,165 | 49,463 | ' |
Commercial | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 214,378 | 209,287 | ' |
Multifamily and Farmland | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 11,821 | 11,801 | ' |
Commercial loans (not secured by real estate) | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 78,056 | 68,047 | ' |
Farm loans (not secured by real estate) | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 93 | 19 | ' |
Consumer loans (not secured by real estate) | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 10,143 | 9,593 | ' |
All other loans (not secured by real estate) | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 14,645 | 13,033 | ' |
Construction and land development | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 59,843 | 63,742 | 70,112 |
Construction and land development | Excellent Quality | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 0 | 7 | ' |
Construction and land development | High Quality | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 8,224 | 7,852 | ' |
Construction and land development | Good Quality | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 23,249 | 22,899 | ' |
Construction and land development | Management Attention | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 12,949 | 14,464 | ' |
Construction and land development | Watch | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 7,355 | 8,163 | ' |
Construction and land development | Substandard | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 8,066 | 10,357 | ' |
Construction and land development | Doubtful | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 0 | 0 | ' |
Construction and land development | Loss | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 0 | 0 | ' |
Single-family residential | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 196,192 | 195,975 | 192,601 |
Single-family residential | Excellent Quality | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 15,376 | 15,036 | ' |
Single-family residential | High Quality | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 66,361 | 60,882 | ' |
Single-family residential | Good Quality | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 71,086 | 73,118 | ' |
Single-family residential | Management Attention | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 32,416 | 34,090 | ' |
Single-family residential | Watch | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 5,914 | 6,806 | ' |
Single-family residential | Substandard | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 5,039 | 6,043 | ' |
Single-family residential | Doubtful | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 0 | 0 | ' |
Single-family residential | Loss | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 0 | 0 | ' |
Single-family residential - Banco de la Gente stated income | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 48,165 | 49,463 | 50,454 |
Single-family residential - Banco de la Gente stated income | Excellent Quality | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 0 | 0 | ' |
Single-family residential - Banco de la Gente stated income | High Quality | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 0 | 0 | ' |
Single-family residential - Banco de la Gente stated income | Good Quality | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 21,528 | 22,255 | ' |
Single-family residential - Banco de la Gente stated income | Management Attention | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 8,293 | 8,369 | ' |
Single-family residential - Banco de la Gente stated income | Watch | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 7,040 | 8,113 | ' |
Single-family residential - Banco de la Gente stated income | Substandard | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 11,304 | 10,726 | ' |
Single-family residential - Banco de la Gente stated income | Doubtful | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 0 | 0 | ' |
Single-family residential - Banco de la Gente stated income | Loss | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 0 | 0 | ' |
Commercial | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 214,378 | 209,287 | 191,368 |
Commercial | Excellent Quality | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 0 | 0 | ' |
Commercial | High Quality | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 37,883 | 33,340 | ' |
Commercial | Good Quality | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 129,951 | 123,604 | ' |
Commercial | Management Attention | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 35,900 | 42,914 | ' |
Commercial | Watch | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 6,661 | 5,190 | ' |
Commercial | Substandard | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 3,983 | 4,239 | ' |
Commercial | Doubtful | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 0 | 0 | ' |
Commercial | Loss | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 0 | 0 | ' |
Multifamily and Farmland | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 11,821 | 11,801 | 10,918 |
Multifamily and Farmland | Excellent Quality | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 0 | 0 | ' |
Multifamily and Farmland | High Quality | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 682 | 715 | ' |
Multifamily and Farmland | Good Quality | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 6,621 | 7,882 | ' |
Multifamily and Farmland | Management Attention | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 1,643 | 286 | ' |
Multifamily and Farmland | Watch | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 2,706 | 2,741 | ' |
Multifamily and Farmland | Substandard | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 169 | 177 | ' |
Multifamily and Farmland | Doubtful | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 0 | 0 | ' |
Multifamily and Farmland | Loss | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 0 | 0 | ' |
Commercial loans (not secured by real estate) | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 78,056 | 68,047 | 66,161 |
Commercial loans (not secured by real estate) | Excellent Quality | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 720 | 365 | ' |
Commercial loans (not secured by real estate) | High Quality | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 11,404 | 8,442 | ' |
Commercial loans (not secured by real estate) | Good Quality | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 51,697 | 44,353 | ' |
Commercial loans (not secured by real estate) | Management Attention | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 12,452 | 13,704 | ' |
Commercial loans (not secured by real estate) | Watch | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 944 | 320 | ' |
Commercial loans (not secured by real estate) | Substandard | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 770 | 863 | ' |
Commercial loans (not secured by real estate) | Doubtful | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 0 | 0 | ' |
Commercial loans (not secured by real estate) | Loss | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 69 | 0 | ' |
Farm loans (not secured by real estate) | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 93 | 19 | 24 |
Farm loans (not secured by real estate) | Excellent Quality | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 0 | 0 | ' |
Farm loans (not secured by real estate) | High Quality | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 0 | 0 | ' |
Farm loans (not secured by real estate) | Good Quality | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 93 | 19 | ' |
Farm loans (not secured by real estate) | Management Attention | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 0 | 0 | ' |
Farm loans (not secured by real estate) | Watch | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 0 | 0 | ' |
Farm loans (not secured by real estate) | Substandard | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 0 | 0 | ' |
Farm loans (not secured by real estate) | Doubtful | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 0 | 0 | ' |
Farm loans (not secured by real estate) | Loss | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 0 | 0 | ' |
Consumer loans (not secured by real estate) | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 10,143 | 9,593 | ' |
Consumer loans (not secured by real estate) | Excellent Quality | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 1,386 | 1,270 | ' |
Consumer loans (not secured by real estate) | High Quality | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 3,659 | 3,519 | ' |
Consumer loans (not secured by real estate) | Good Quality | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 4,424 | 4,061 | ' |
Consumer loans (not secured by real estate) | Management Attention | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 575 | 358 | ' |
Consumer loans (not secured by real estate) | Watch | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 20 | 50 | ' |
Consumer loans (not secured by real estate) | Substandard | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 77 | 330 | ' |
Consumer loans (not secured by real estate) | Doubtful | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 0 | 0 | ' |
Consumer loans (not secured by real estate) | Loss | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 2 | 5 | ' |
All other loans (not secured by real estate) | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 14,645 | 13,033 | ' |
All other loans (not secured by real estate) | Excellent Quality | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 0 | 0 | ' |
All other loans (not secured by real estate) | High Quality | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 1,972 | 2,139 | ' |
All other loans (not secured by real estate) | Good Quality | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 10,439 | 8,565 | ' |
All other loans (not secured by real estate) | Management Attention | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 2,234 | 2,329 | ' |
All other loans (not secured by real estate) | Watch | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 0 | 0 | ' |
All other loans (not secured by real estate) | Substandard | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 0 | 0 | ' |
All other loans (not secured by real estate) | Doubtful | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | 0 | 0 | ' |
All other loans (not secured by real estate) | Loss | ' | ' | ' |
Credit risk profile | ' | ' | ' |
Total Loans | $0 | $0 | ' |
3_Loans_TDR_Loan_Modifications
3. Loans, TDR Loan Modifications (Details) (USD $) | 3 Months Ended | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Integer | Integer | Integer | |
TDR Loans | ' | ' | ' |
Number of Contracts | 4 | 8 | 8 |
Pre-Modification Outstanding Recorded Investment | $942 | $1,544 | $1,391 |
Post-Modification Outstanding Recorded Investment | 928 | 1,544 | 1,376 |
Construction and land development | ' | ' | ' |
TDR Loans | ' | ' | ' |
Number of Contracts | 1 | 1 | 2 |
Pre-Modification Outstanding Recorded Investment | 724 | 316 | 841 |
Post-Modification Outstanding Recorded Investment | 712 | 316 | 829 |
Single-family residential | ' | ' | ' |
TDR Loans | ' | ' | ' |
Number of Contracts | 2 | 1 | 2 |
Pre-Modification Outstanding Recorded Investment | 78 | 734 | 78 |
Post-Modification Outstanding Recorded Investment | 78 | 734 | 78 |
Single-family residential - Banco de la Gente stated income | ' | ' | ' |
TDR Loans | ' | ' | ' |
Number of Contracts | 1 | 6 | 4 |
Pre-Modification Outstanding Recorded Investment | 140 | 494 | 472 |
Post-Modification Outstanding Recorded Investment | 138 | 494 | 469 |
Total real estate loans | ' | ' | ' |
TDR Loans | ' | ' | ' |
Number of Contracts | 4 | 8 | 8 |
Pre-Modification Outstanding Recorded Investment | 942 | 1,544 | 1,391 |
Post-Modification Outstanding Recorded Investment | $928 | $1,544 | $1,376 |
3_Loans_Details_Narrative
3. Loans (Details Narrative) (USD $) | 6 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Percentage of construction and land development loans in Bank's loan portfolio | 9.00% | ' | ' |
Percentage of single-family residential loans in Bank's loan portfolio | 39.00% | ' | ' |
Percentage of Single-family residential - Banco de la Gente stated income loans in Bank's loan portfolio | 8.00% | ' | ' |
Percentage of commercial real estate loans in Bank's loan portfolio | 34.00% | ' | ' |
Accruing impaired loans | $27,700 | $26,200 | $27,600 |
Interest income recognized on accruing impaired loans | 681 | 579 | 1,300 |
Provision for loan losses | 67 | 773 | ' |
Allowance for loan losses | 12,700 | ' | 13,500 |
TDR loans | 11,700 | ' | 21,900 |
Amount of performing TDR loans included | $1,500 | ' | $335 |
Commercial | ' | ' | ' |
Percentage of commercial loans in Bank's loan portfolio | 12.00% | ' | ' |
4_Net_Earnings_Per_Common_Shar2
4. Net Earnings Per Common Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Net Earnings Available to Common Shareholders | ' | ' | ' | ' |
Basic earnings per common share | $2,551 | $1,477 | $5,130 | $3,078 |
Effect of dilutive securities: Stock options | 0 | 0 | 0 | 0 |
Diluted earnings per common share | $2,551 | $1,477 | $5,130 | $3,078 |
Common Shares | ' | ' | ' | ' |
Basic earnings per common share (in shares) | 5,616,008 | 5,613,495 | 5,614,758 | 5,613,495 |
Effect of dilutive securities: Stock options (in shares) | 25,471 | 5,589 | 22,432 | 5,185 |
Diluted earnings per common share (in shares) | 5,641,479 | 5,619,084 | 5,637,190 | 5,618,680 |
Per Share Amount | ' | ' | ' | ' |
Basic earnings per common share | $0.45 | $0.26 | $0.91 | $0.55 |
Diluted earnings per common share | $0.45 | $0.26 | $0.91 | $0.55 |
5_StockBased_Compensation_Deta
5. Stock-Based Compensation (Details Narrative) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Stock-Based Compensation Details Narrative | ' | ' |
Unrecognized compensation cost | $840 | ' |
Restricted stock expense | $167 | $70 |
6_Fair_Value_Measurements_Leve
6. Fair Value Measurements, Level of Hierarchy (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Estimated Fair Value | $297,165 | $297,890 |
Mortgage-backed securities | ' | ' |
Estimated Fair Value | 117,514 | 123,977 |
Level 2 valuation | 117,514 | 123,977 |
U.S. Government sponsored enterprises | ' | ' |
Estimated Fair Value | 25,101 | 22,143 |
Level 2 valuation | 25,101 | 22,143 |
State and political subdivisions | ' | ' |
Estimated Fair Value | 148,629 | 145,368 |
Level 2 valuation | 148,629 | 145,368 |
Corporate bonds | ' | ' |
Estimated Fair Value | 3,487 | 3,463 |
Level 2 valuation | 3,487 | 3,463 |
Trust preferred securities | ' | ' |
Estimated Fair Value | 750 | 1,250 |
Level 3 valuation | 750 | 1,250 |
Equity securities | ' | ' |
Estimated Fair Value | 1,684 | 1,689 |
Level 1 valuation | $1,684 | $1,689 |
6_Fair_Value_Measurements_Leve1
6. Fair Value Measurements, Level 3 Valuation (Details) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Investment Securities Available for Sale Level 3 Valuation | ' |
Balance, beginning of period | $1,250 |
Change in book value | 0 |
Change in gain/(loss) realized and unrealized | 0 |
Purchases/(sales and calls) | -500 |
Transfers in and/or (out) of Level 3 | 0 |
Balance, end of period | 750 |
Change in unrealized gain/(loss) for assets still held in Level 3 | $0 |
6_Fair_Value_Measurements_Loan
6. Fair Value Measurements, Loans Impaired (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Impaired loans | $36,983 | $39,780 |
Other real estate | 3,532 | 1,679 |
Level 1 | ' | ' |
Impaired loans | 0 | 0 |
Other real estate | 0 | 0 |
Level 2 | ' | ' |
Impaired loans | 0 | 0 |
Other real estate | 0 | 0 |
Level 3 | ' | ' |
Impaired loans | 36,983 | 39,780 |
Other real estate | 3,532 | 1,679 |
Total gains losses for the period ended | ' | ' |
Impaired loans | -433 | -3,207 |
Other real estate | ($150) | ($581) |
6_Fair_Value_of_Financial_Inst
6. Fair Value of Financial Instruments (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Investment securities available for sale | $297,165 | $297,890 |
Carrying Amount | ' | ' |
Assets: | ' | ' |
Cash and cash equivalents | 75,068 | 76,773 |
Investment securities available for sale | 297,165 | 297,890 |
Other investments | 4,706 | 4,990 |
Mortgage loans held for sale | 2,048 | 497 |
Loans, net | 620,661 | 607,459 |
Cash surrender value of life insurance | 13,914 | 13,706 |
Liabilities: | ' | ' |
Deposits | 811,479 | 799,361 |
Securities sold under agreements to repurchase | 46,764 | 45,396 |
FHLB borrowings | 65,000 | 65,000 |
Junior subordinated debentures | 20,619 | 20,619 |
Level 1 | ' | ' |
Assets: | ' | ' |
Cash and cash equivalents | 75,068 | 76,773 |
Investment securities available for sale | 1,684 | 1,689 |
Other investments | 0 | 0 |
Mortgage loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
Cash surrender value of life insurance | 0 | 0 |
Liabilities: | ' | ' |
Deposits | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
FHLB borrowings | 0 | 0 |
Junior subordinated debentures | 0 | 0 |
Level 2 | ' | ' |
Assets: | ' | ' |
Cash and cash equivalents | 0 | 0 |
Investment securities available for sale | 294,731 | 294,951 |
Other investments | 0 | 0 |
Mortgage loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
Cash surrender value of life insurance | 13,914 | 13,706 |
Liabilities: | ' | ' |
Deposits | 810,415 | 798,460 |
Securities sold under agreements to repurchase | 46,764 | 45,396 |
FHLB borrowings | 65,984 | 65,891 |
Junior subordinated debentures | 20,619 | 20,619 |
Level 3 | ' | ' |
Assets: | ' | ' |
Cash and cash equivalents | 0 | 0 |
Investment securities available for sale | 750 | 1,250 |
Other investments | 4,706 | 4,990 |
Mortgage loans held for sale | 2,048 | 497 |
Loans, net | 623,799 | 612,132 |
Cash surrender value of life insurance | 0 | 0 |
Liabilities: | ' | ' |
Deposits | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
FHLB borrowings | 0 | 0 |
Junior subordinated debentures | 0 | 0 |
Estimated Fair Value | ' | ' |
Assets: | ' | ' |
Cash and cash equivalents | 75,068 | 76,773 |
Investment securities available for sale | 297,165 | 297,890 |
Other investments | 4,706 | 4,990 |
Mortgage loans held for sale | 2,048 | 497 |
Loans, net | 623,799 | 612,132 |
Cash surrender value of life insurance | 13,914 | 13,706 |
Liabilities: | ' | ' |
Deposits | 810,415 | 798,460 |
Securities sold under agreements to repurchase | 46,764 | 45,396 |
FHLB borrowings | 65,984 | 65,891 |
Junior subordinated debentures | $20,619 | $20,619 |