Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 31, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | PEOPLES BANCORP OF NORTH CAROLINA INC | |
Entity Central Index Key | 1,093,672 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
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 | 5,515,738 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,015 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and due from banks, including reserve requirements of $13,301 at 9/30/15 and $12,569 at 12/31/14 | $ 39,681 | $ 51,213 |
Interest-bearing deposits | 4,944 | 17,885 |
Cash and cash equivalents | 44,625 | 69,098 |
Investment securities available for sale | 268,821 | 281,099 |
Other investments | 3,912 | 4,031 |
Total securities | 272,733 | 285,130 |
Mortgage loans held for sale | 1,679 | 1,375 |
Loans | 684,800 | 651,891 |
Less allowance for loan losses | (10,420) | (11,082) |
Net loans | 674,380 | 640,809 |
Premises and equipment, net | 16,831 | 17,000 |
Cash surrender value of life insurance | 14,440 | 14,125 |
Other real estate | 2,349 | 2,016 |
Accrued interest receivable and other assets | 10,158 | 10,941 |
Total assets | 1,037,195 | 1,040,494 |
Deposits: | ||
Noninterest-bearing demand | 217,517 | 210,758 |
NOW, MMDA & savings | 423,917 | 407,504 |
Time, $250,000 or more | 31,036 | 47,872 |
Other time | 134,091 | 148,566 |
Total deposits | 806,561 | 814,700 |
Securities sold under agreements to repurchase | 47,240 | 48,430 |
FHLB borrowings | 50,000 | 50,000 |
Junior subordinated debentures | 20,619 | 20,619 |
Accrued interest payable and other liabilities | 9,868 | 8,080 |
Total liabilities | 934,288 | $ 941,829 |
Commitments | ||
Shareholders' equity: | ||
Series A preferred stock, $1,000 stated value; authorized 5,000,000 shares; no shares issued and outstanding | 0 | $ 0 |
Common stock, no par value; authorized 20,000,000 shares; issued and outstanding 5,528,538 shares at 9/30/15, and 5,612,588 shares at 12/31/14 | 46,512 | 48,088 |
Retained earnings | 51,442 | 45,124 |
Accumulated other comprehensive income | 4,953 | 5,453 |
Total shareholders' equity | 102,907 | 98,665 |
Total liabilities and shareholders' equity | $ 1,037,195 | $ 1,040,494 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and due from banks, reserve requirements | $ 13,301 | $ 12,569 |
Shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 1,000 | $ 1,000 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
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) | 5,528,538 | 5,612,588 |
Common stock, shares outstanding (in shares) | 5,528,538 | 5,612,588 |
Consolidated Statements of Earn
Consolidated Statements of Earnings (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Interest income: | ||||
Interest and fees on loans | $ 8,089 | $ 7,664 | $ 23,015 | $ 22,556 |
Interest on due from banks | 4 | 18 | 21 | 42 |
Interest on investment securities: | ||||
U.S. Government sponsored enterprises | 633 | 646 | 1,959 | 2,298 |
States and political subdivisions | 1,145 | 1,168 | 3,465 | 3,514 |
Other | 76 | 87 | 245 | 294 |
Total interest income | 9,947 | 9,583 | 28,705 | 28,704 |
Interest expense: | ||||
NOW, MMDA & savings deposits | 106 | 124 | 324 | 375 |
Time deposits | 211 | 287 | 685 | 924 |
FHLB borrowings | 443 | 556 | 1,294 | 1,650 |
Junior subordinated debentures | 101 | 98 | 297 | 291 |
Other | 13 | 11 | 34 | 33 |
Total interest expense | 874 | 1,076 | 2,634 | 3,273 |
Net interest income | 9,073 | 8,507 | 26,071 | 25,431 |
Provision for (reduction of provision for) loan losses | 235 | 256 | 193 | (27) |
Net interest income after provision for loan losses | 8,838 | 8,251 | 25,878 | 25,458 |
Non-interest income: | ||||
Service charges | 1,193 | 1,303 | 3,498 | 3,655 |
Other service charges and fees | 173 | 213 | 718 | 892 |
Gain on sale of securities | 0 | 240 | 0 | 266 |
Mortgage banking income | 300 | 256 | 810 | 548 |
Insurance and brokerage commissions | 179 | 161 | 544 | 521 |
Gain/(loss) on sale and write-down of other real estate | 80 | (234) | 246 | (384) |
Miscellaneous | 1,341 | 1,268 | 3,992 | 3,660 |
Total non-interest income | 3,266 | 3,207 | 9,808 | 9,158 |
Non-interest expense: | ||||
Salaries and employee benefits | 4,596 | 4,301 | 13,683 | 12,784 |
Occupancy | 1,611 | 1,489 | 4,577 | 4,476 |
Professional fees | 163 | 378 | 590 | 824 |
Advertising and marketing | 172 | 196 | 576 | 555 |
Debit card expense | 256 | 225 | 737 | 667 |
FDIC insurance | 162 | 169 | 510 | 565 |
Other | 1,709 | 1,783 | 5,081 | 4,860 |
Total non-interest expense | 8,669 | 8,541 | 25,754 | 24,731 |
Earnings before income taxes | 3,435 | 2,917 | 9,932 | 9,885 |
Income tax expense | 942 | 475 | 2,487 | 2,313 |
Net earnings | $ 2,493 | $ 2,442 | $ 7,445 | $ 7,572 |
Basic net earnings per share | $ 0.45 | $ 0.43 | $ 1.34 | $ 1.35 |
Diluted net earnings per share | 0.45 | 0.43 | 1.32 | 1.34 |
Cash dividends declared per share | $ 0.08 | $ 0.04 | $ 0.20 | $ 0.12 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Consolidated Statements Of Comprehensive Income | ||||
Net earnings | $ 2,493 | $ 2,442 | $ 7,445 | $ 7,572 |
Other comprehensive income (loss): | ||||
Unrealized holding (losses) gains on securities available for sale | 1,167 | 1,788 | (819) | 9,374 |
Reclassification adjustment for gains on securities available for sale included in net earnings | 0 | (240) | 0 | (266) |
Total other comprehensive (loss) income, before income taxes | 1,167 | 1,548 | (819) | 9,108 |
Income tax (benefit) expense related to other comprehensive (loss) income: | ||||
Unrealized holding (losses) gains on securities available for sale | 455 | 696 | (319) | 3,651 |
Reclassification adjustment for gains on securities available for sale included in net earnings | 0 | (93) | 0 | (104) |
Total income tax expense (benefit) related to other comprehensive income (loss) | 455 | 603 | (319) | 3,547 |
Total other comprehensive (loss) income, net of tax | 712 | 945 | (500) | 5,561 |
Total comprehensive income | $ 3,205 | $ 3,387 | $ 6,945 | $ 13,133 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income | Total |
Beginning Balance, Shares at Dec. 31, 2013 | 5,613,495 | |||
Beginning Balance, Amount at Dec. 31, 2013 | $ 48,133 | $ 36,758 | $ (1,172) | $ 83,719 |
Cash dividends declared on common stock | $ 0 | (682) | 0 | (682) |
Stock options exercised, Shares | 3,630 | |||
Stock options exercised, Amount | $ 37 | 0 | 0 | 37 |
Net earnings | 0 | 7,572 | 0 | 7,572 |
Change in accumulated other comprehensive income, net of tax | $ 0 | 0 | 5,561 | 5,561 |
Ending Balance, Shares at Sep. 30, 2014 | 5,617,125 | |||
Ending Balance, Amount at Sep. 30, 2014 | $ 48,170 | 43,648 | 4,389 | 96,207 |
Beginning Balance, Shares at Dec. 31, 2014 | 5,612,588 | |||
Beginning Balance, Amount at Dec. 31, 2014 | $ 48,088 | 45,124 | 5,453 | 98,665 |
Common stock repurchase, Shares | (84,050) | |||
Common stock repurchase, Amount | $ (1,576) | 0 | 0 | (1,576) |
Cash dividends declared on common stock | 0 | (1,127) | 0 | (1,127) |
Net earnings | 0 | 7,445 | 0 | 7,445 |
Change in accumulated other comprehensive income, net of tax | $ 0 | 0 | (500) | (500) |
Ending Balance, Shares at Sep. 30, 2015 | 5,528,538 | |||
Ending Balance, Amount at Sep. 30, 2015 | $ 46,512 | $ 51,442 | $ 4,953 | $ 102,907 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net earnings | $ 7,445 | $ 7,572 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation, amortization and accretion | 4,523 | 5,254 |
Reduction of provision for loan losses | 193 | (27) |
Deferred income taxes | 100 | 0 |
Gain on sale of investment securities | 0 | (266) |
Gain on sale of other real estate | (275) | (43) |
Write-down of other real estate | 29 | 427 |
Restricted stock expense | 282 | 272 |
Originations of mortgage loans held for sale | (38,140) | (28,382) |
Sales of mortgage loans held for sale | 37,836 | 27,992 |
Change in: | ||
Cash surrender value of life insurance | (315) | (315) |
Other assets | 792 | (252) |
Other liabilities | 1,788 | 229 |
Net cash provided by operating activities | 14,258 | 12,461 |
Cash flows from investing activities: | ||
Purchases of investment securities available for sale | (13,579) | (25,439) |
Proceeds from calls, maturities and paydowns of investment securities available for sale | 17,984 | 29,263 |
Proceeds from sales of investment securities available for sale | 4,250 | 20,202 |
Purchases of FHLB stock | (5) | 0 |
FHLB stock redemption | 125 | 284 |
Net change in loans | (38,098) | (34,213) |
Purchases of premises and equipment | (1,549) | (2,927) |
Proceeds from sales of other real estate and repossessions | 4,173 | 3,230 |
Net cash used by investing activities | (26,699) | (9,600) |
Cash flows from financing activities: | ||
Net change in deposits | (8,139) | 17,434 |
Net change in securities sold under agreements to repurchase | (1,190) | 1,624 |
Proceeds from FHLB borrowings | 20,000 | 0 |
Repayments of FHLB borrowings | (20,000) | 0 |
Preferred stock repurchase | 0 | (12,524) |
Stock options exercised | 0 | 37 |
Common stock repurchased | (1,576) | 0 |
Cash dividends paid on common stock | (1,127) | (682) |
Net cash (used) provided by financing activities | (12,032) | 5,889 |
Net change in cash and cash equivalents | (24,473) | 8,750 |
Cash and cash equivalents at beginning of period | 69,098 | 76,773 |
Cash and cash equivalents at end of period | 44,625 | 85,523 |
Cash paid during the period for: | ||
Interest | 2,624 | 3,290 |
Income taxes | 1,514 | 1,637 |
Noncash investing and financing activities: | ||
Change in unrealized gain on investment securities available for sale, net | (500) | 5,561 |
Transfers of loans to other real estate and repossessions | 4,274 | 3,774 |
Financed portion of sales of other real estate | $ 60 | $ 282 |
1. Summary of Significant Accou
1. Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
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., Real Estate Advisory Services, Inc. ("REAS") and PB Real Estate Holdings, LLC (collectively called the "Company"). All significant intercompany balances and transactions have been eliminated in consolidation. The Bank operates four offices focused on the Latino population under the name Banco de la Gente. These offices are operated as a division of the Bank. Banco de la Gente offers normal and customary banking services as are offered in the Bank's other branches such as the taking of deposits and the making of loans and therefore is not considered a reportable segment of the Company. The consolidated financial statements in this report (other than the Consolidated Balance Sheet at December 31, 2014) 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 2014 Annual Report to Shareholders which is Appendix A to the Proxy Statement for the May 7, 2015 Annual Meeting of Shareholders. Recently Issued Accounting Pronouncements In January 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2015-01, (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. In February 2015, FASB issued ASU No. 2015-02, (Topic 810): Amendments to the Consolidation Analysis. In June 2015, FASB issued ASU No. 2015-10, Technical Corrections and Improvements 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 | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
2. Investment Securities | Investment securities available for sale at September 30, 2015 and December 31, 2014 are as follows: (Dollars in thousands) September 30, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Mortgage-backed securities $ 75,386 2,098 18 77,466 U.S. Government sponsored enterprises 38,793 505 129 39,169 State and political subdivisions 143,094 5,566 338 148,322 Corporate bonds 1,937 4 1 1,940 Trust preferred securities 750 - - 750 Equity securities 748 426 - 1,174 Total $ 260,708 8,599 486 268,821 (Dollars in thousands) December 31, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Mortgage-backed securities $ 88,496 1,766 52 90,210 U.S. Government sponsored enterprises 33,766 418 136 34,048 State and political subdivisions 145,938 6,534 226 152,246 Corporate bonds 2,469 16 18 2,467 Trust preferred securities 750 - - 750 Equity securities 748 630 - 1,378 Total $ 272,167 9,364 432 281,099 The current fair value and associated unrealized losses on investments in securities with unrealized losses at September 30, 2015 and December 31, 2014 are summarized in the tables below, with the length of time the individual securities have been in a continuous loss position. (Dollars in thousands) September 30, 2015 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Fair Value Unrealized Losses Mortgage-backed securities $ 2,278 18 - - 2,278 18 U.S. Government sponsored enterprises 2,319 20 9,064 109 11,383 129 State and political subdivisions 15,762 170 6,668 168 22,430 338 Corporate bonds - - 526 1 526 1 Total $ 20,359 208 16,258 278 36,617 486 (Dollars in thousands) December 31, 2014 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Mortgage-backed securities $ 436 1 2,963 51 3,399 52 U.S. Government sponsored enterprises 2,996 4 9,850 132 12,846 136 State and political subdivisions 567 1 14,998 225 15,565 226 Corporate bonds - - 525 18 525 18 Total $ 3,999 6 28,336 426 32,335 432 At September 30, 2015, unrealized losses in the investment securities portfolio relating to debt securities totaled $486,000. The unrealized losses on these debt securities arose due to changing interest rates and are considered to be temporary. From the September 30, 2015 tables above, 26 out of 173 securities issued by state and political subdivisions contained unrealized losses, seven out of 79 securities issued by U.S. Government sponsored enterprises, including mortgage-backed securities, contained unrealized losses, and one out of three securities issued by corporations contained unrealized losses. These unrealized losses are considered temporary because of acceptable financial condition and results of operations of entities that issued 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 September 30, 2015, 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. September 30, 2015 (Dollars in thousands) Amortized Cost Estimated Fair Value Due within one year $ 4,431 4,440 Due from one to five years 57,499 60,100 Due from five to ten years 107,022 109,524 Due after ten years 15,622 16,117 Mortgage-backed securities 75,386 77,466 Equity securities 748 1,174 Total $ 260,708 268,821 No securities available for sale were sold during the nine months ended September 30, 2015. Proceeds from sales of securities available for sale during the nine months ended September 30, 2014 totaled $20.2 million and resulted in gross gains of $291,000 and gross losses of $25,000. Securities with a fair value of approximately $88.9 million and $89.9 million at September 30, 2015 and December 31, 2014, respectively, were pledged to secure public deposits and for other purposes as required by law. |
3. Loans
3. Loans | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
3. Loans | Major classifications of loans at September 30, 2015 and December 31, 2014 are summarized as follows: (Dollars in thousands) September 30, 2015 December 31, 2014 Real estate loans: Construction and land development $ 61,748 57,617 Single-family residential 218,365 206,417 Single-family residential - Banco de la Gente stated income 44,433 47,015 Commercial 234,003 228,558 Multifamily and farmland 14,003 12,400 Total real estate loans 572,552 552,007 Loans not secured by real estate: Commercial loans 88,931 76,262 Farm loans 3 7 Consumer loans 10,047 10,060 All other loans 13,267 13,555 Total loans 684,800 651,891 Less allowance for loan losses 10,420 11,082 Total net loans $ 674,380 640,809 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, Wake and Durham 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 September 30, 2015, 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 September 30, 2015, single-family residential loans comprised approximately 38% of the Bank's total loan portfolio, and include Banco de la Gente single-family residential stated income loans, which were approximately 6% 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 September 30, 2015, 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 September 30, 2015, commercial loans comprised approximately 13% 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 September 30, 2015 and December 31, 2014: September 30, 2015 (Dollars in thousands) Loans 30-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Total Current Loans Total Loans Accruing Loans 90 or More Days Past Due Real estate loans: Construction and land development $ 383 273 656 61,092 61,748 197 Single-family residential 1,779 1,463 3,242 215,123 218,365 - Single-family residential - Banco de la Gente stated income 1,588 246 1,834 42,599 44,433 - Commercial 602 142 744 233,259 234,003 - Multifamily and farmland 117 - 117 13,886 14,003 - Total real estate loans 4,469 2,124 6,593 565,959 572,552 197 Loans not secured by real estate: Commercial loans 323 29 352 88,579 88,931 29 Farm loans - - - 3 3 - Consumer loans 204 18 222 9,825 10,047 - All other loans - - - 13,267 13,267 - Total loans $ 4,996 2,171 7,167 677,633 684,800 226 December 31, 2014 (Dollars in thousands) Loans 30-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Total Current Loans Total Loans Accruing Loans 90 or More Days Past Due Real estate loans: Construction and land development $ 294 3,540 3,834 53,783 57,617 - Single-family residential 5,988 268 6,256 200,161 206,417 - Single-family residential - Banco de la Gente stated income 8,998 610 9,608 37,407 47,015 - Commercial 3,205 366 3,571 224,987 228,558 - Multifamily and farmland 85 - 85 12,315 12,400 - Total real estate loans 18,570 4,784 23,354 528,653 552,007 - Loans not secured by real estate: Commercial loans 241 49 290 75,972 76,262 - Farm loans - - - 7 7 - Consumer loans 184 - 184 9,876 10,060 - All other loans - - - 13,555 13,555 - Total loans $ 18,995 4,833 23,828 628,063 651,891 - The following table presents non-accrual loans as of September 30, 2015 and December 31, 2014: (Dollars in thousands) September 30, 2015 December 31, 2014 Real estate loans: Construction and land development $ 209 3,854 Single-family residential 3,335 2,370 Single-family residential - Banco de la Gente stated income 1,955 1,545 Commercial 2,598 2,598 Multifamily and farmland - 110 Total real estate loans 8,097 10,477 Loans not secured by real estate: Commercial loans 102 176 Consumer loans 67 75 Total $ 8,266 10,728 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 not 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 $25.5 million, $25.6 million and $26.8 million at September 30, 2015, December 31, 2014 and September 30, 2014, respectively. Interest income recognized on accruing impaired loans was $968,000, $992,000 and $1.3 million for the nine months ended September 30, 2015, the nine months ended September 30, 2014 and the year ended December 31, 2014, respectively. Interest income recognized on accruing impaired loans was $286,000 and $311,000 for the three months ended September 30, 2015 and 2014, respectively. No interest income is recognized on non-accrual impaired loans subsequent to their classification as non-accrual. The following tables present impaired loans as of September 30, 2015 and December 31, 2014: September 30, 2015 (Dollars in thousands) Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Recorded Investment in Impaired Loans Related Allowance Average Outstanding Impaired Loans Real estate loans: Construction and land development $ 643 241 289 530 19 1,638 Single-family residential 8,828 1,496 7,287 8,783 201 9,483 Single-family residential - Banco de la Gente stated income 20,375 - 19,572 19,572 1,155 19,114 Commercial 4,556 - 4,172 4,172 234 4,948 Multifamily and farmland 96 - 93 93 - 100 Total impaired real estate loans 34,498 1,737 31,413 33,150 1,609 35,283 Loans not secured by real estate: Commercial loans 180 - 154 154 3 149 Consumer loans 286 - 280 280 5 298 Total impaired loans $ 34,964 1,737 31,847 33,584 1,617 35,730 December 31, 2014 (Dollars in thousands) Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Recorded Investment in Impaired Loans Related Allowance Average Outstanding Impaired Loans Real estate loans: Construction and land development $ 5,481 3,639 555 4,194 31 5,248 Single-family residential 6,717 933 5,540 6,473 154 7,430 Single-family residential - Banco de la Gente stated income 21,243 - 20,649 20,649 1,191 19,964 Commercial 4,752 1,485 2,866 4,351 272 4,399 Multifamily and farmland 111 - 110 110 1 154 Total impaired real estate loans 38,304 6,057 29,720 35,777 1,649 37,195 Loans not secured by real estate: Commercial loans 218 - 201 201 4 641 Consumer loans 318 - 313 313 5 309 All other loans (not secured by real estate) - - - - - - Total impaired loans $ 38,840 6,057 30,234 36,291 1,658 38,145 Changes in the allowance for loan losses for the three and nine months ended September 30, 2015 and 2014 were as follows: (Dollars in thousands) Real Estate Loans Construction and Land Development Single- Family Residential Single- Family Residential - Banco de la Gente Stated Income Commercial Multifamily and Farmland Commercial Farm Consumer and All Other Unallocated Total Nine months ended September 30, 2015 Allowance for loan losses: Beginning balance $ 2,785 2,566 1,610 1,902 7 1,098 - 233 881 11,082 Charge-offs (198 ) (447 ) (59 ) (62 ) - (16 ) - (394 ) - (1,176 ) Recoveries 43 30 22 15 - 96 - 115 - 321 Provision 119 676 (113 ) 75 (2 ) (297 ) - 258 (523 ) 193 Ending balance $ 2,749 2,825 1,460 1,930 5 881 - 212 358 10,420 Three months ended September 30, 2015 Allowance for loan losses: Beginning balance $ 2,924 2,456 1,528 1,749 2 902 - 231 586 10,378 Charge-offs (110 ) (48 ) - - - (1 ) - (156 ) - (315 ) Recoveries 20 21 - 5 - 43 - 33 - 122 Provision (85 ) 396 (68 ) 176 3 (63 ) - 104 (228 ) 235 Ending balance $ 2,749 2,825 1,460 1,930 5 881 - 212 358 10,420 Allowance for loan losses September 30, 2015: Ending balance: individually evaluated for impairment $ - 96 1,128 227 - - - - - 1,451 Ending balance: collectively evaluated for impairment 2,749 2,729 332 1,703 5 881 - 212 358 8,969 Ending balance $ 2,749 2,825 1,460 1,930 5 881 - 212 358 10,420 Loans September 30, 2015: Ending balance $ 61,748 218,365 44,433 234,003 14,003 88,931 3 23,314 - 684,800 Ending balance: individually evaluated for impairment $ 241 2,944 18,193 3,525 - - - - - 24,903 Ending balance: collectively evaluated for impairment $ 61,507 215,421 26,240 230,478 14,003 88,931 3 23,314 - 659,897 (Dollars in thousands) Real Estate Loans Construction and Land Development Single- Family Residential Single- Family Residential - Banco de la Gente Stated Income Commercial Multifamily and Farmland Commercial Farm Consumer and All Other Unallocated Total Nine months ended September 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 (772 ) (223 ) (148 ) (181 ) - (197 ) - (399 ) - (1,920 ) Recoveries 389 64 17 165 - 42 - 112 - 789 Provision 239 (230 ) (60 ) (435 ) (29 ) 240 - 282 (34 ) (27 ) Ending balance $ 3,074 2,734 1,672 1,768 8 1,154 - 240 1,693 12,343 Three months ended September 30, 2014 Allowance for loan losses: Beginning balance $ 3,387 2,848 1,708 1,839 7 1,081 - 253 1,552 12,675 Charge-offs (513 ) (30 ) (7 ) (51 ) - (4 ) - (144 ) - (749 ) Recoveries 107 2 - 4 - 15 - 33 - 161 Provision 93 (86 ) (29 ) (24 ) 1 62 - 98 141 256 Ending balance $ 3,074 2,734 1,672 1,768 8 1,154 - 240 1,693 12,343 Allowance for loan losses at September 30, 2014: Ending balance: individually evaluated for impairment $ - 67 1,164 182 - - - - - 1,413 Ending balance: collectively evaluated for impairment 3,074 2,667 508 1,586 8 1,154 - 240 1,693 10,930 Ending balance $ 3,074 2,734 1,672 1,768 8 1,154 - 240 1,693 12,343 Loans at September 30, 2014: Ending balance $ 56,959 202,797 47,665 227,183 10,887 78,139 10 26,910 - 650,550 Ending balance: individually evaluated for impairment $ 3,808 2,312 19,083 3,563 - - - - - 28,766 Ending balance: collectively evaluated for impairment $ 53,151 200,485 28,582 223,620 10,887 78,139 10 26,910 - 621,784 The provision for loan losses for the three months ended September 30, 2015 was $235,000, as compared to $256,000 for the three months ended September 30, 2014. The decrease in the provision for loan losses is primarily attributable to a $2.4 million reduction in non-accrual loans from September 30, 2014 to September 30, 2015 and a $395,000 reduction in net charge-offs during the three months ended September 30, 2015, as compared to the same period one year ago. The provision for loan losses for the nine months ended September 30, 2015 was an expense of $193,000, as compared to a credit of $27,000 for the nine months ended September 30, 2014. The increase in the provision for loan losses is primarily attributable to a $34.2 million increase in loans from September 30, 2014 to September 30, 2015. 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 as 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 September 30, 2015 and December 31, 2014: September 30, 2015 (Dollars in thousands) Real Estate Loans Construction and Land Development Single- Family Residential Single- Family Residential - Banco de la Gente Stated Income Commercial Multifamily and Farmland Commercial Farm Consumer All Other Total 1- Excellent Quality $ - 13,031 - - - 645 - 1,224 - 14,900 2- High Quality 8,448 84,774 - 41,529 174 26,079 - 3,608 1,723 166,335 3- Good Quality 32,941 79,052 19,547 149,064 10,766 56,106 3 4,490 9,783 361,752 4- Management Attention 11,751 29,762 15,353 34,261 347 5,577 - 594 1,761 99,406 5- Watch 8,240 5,499 3,474 5,180 2,716 349 - 65 - 25,523 6- Substandard 368 6,247 6,059 3,969 - 175 - 62 - 16,880 7- Doubtful - - - - - - - - - - 8- Loss - - - - - - - 4 - 4 Total $ 61,748 218,365 44,433 234,003 14,003 88,931 3 10,047 13,267 684,800 December 31, 2014 (Dollars in thousands) Real Estate Loans Construction and Land Development Single- Family Residential Single- Family Residential - Banco de la Gente Stated Income Commercial Multifamily and Farmland Commercial Farm Consumer All Other Total 1- Excellent Quality $ - 15,099 - - - 924 - 1,232 - 17,255 2- High Quality 6,741 74,367 - 39,888 241 18,730 - 3,576 1,860 145,403 3- Good Quality 24,641 74,453 21,022 142,141 8,376 44,649 7 4,549 8,055 327,893 4- Management Attention 13,013 30,954 12,721 36,433 1,001 11,312 - 566 3,640 109,640 5- Watch 9,294 5,749 5,799 6,153 2,672 383 - 46 - 30,096 6- Substandard 3,928 5,795 7,473 3,943 110 264 - 87 - 21,600 7- Doubtful - - - - - - - - - - 8- Loss - - - - - - - 4 - 4 Total $ 57,617 206,417 47,015 228,558 12,400 76,262 7 10,060 13,555 651,891 TDR loans modified in 2015, past due TDR loans and non-accrual TDR loans totaled $5.9 million and $15.0 million at September 30, 2015 and December 31, 2014, 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 $142,000 and $1.4 million in performing loans classified as TDR loans at September 30, 2015 and December 31, 2014, respectively. The following tables present an analysis of loan modifications during the nine months ended September 30, 2015 and 2014: Nine months ended September 30, 2015 (Dollars in thousands) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Real estate loans Single-family residential 1 $ 146 142 Total real estate TDR loans 1 146 142 Total TDR loans 1 $ 146 142 During the nine months ended September 30, 2015, one loan was modified that was considered to be a new TDR loan. The interest rate was modified on this TDR loan. There were no loans modified as TDR that defaulted during the nine or three months ended September 30, 2015 and 2014, which were within twelve months of their modification date. Generally, a TDR loan is considered to be in default once it becomes 90 days or more past due following a modification. Nine months ended September 30, 2014 (Dollars in thousands) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Real estate loans Construction and land development 1 $ 291 291 Single-family residential 2 849 849 Single-family residential - Banco de la Gente stated income 7 594 594 Commercial - - - Multifamily and farmland - - - Total real estate TDR loans 10 1,734 1,734 Total TDR loans 10 $ 1,734 1,734 During the nine months ended September 30, 2014, ten loans were modified that were considered to be new TDR loans. The interest rate was modified on these TDR loans. |
4. Net Earnings Per Share
4. Net Earnings Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
4. Net Earnings Per Share | Net earnings per share is based on the weighted average number of shares outstanding during the period while the effects of potential shares outstanding during the period are included in diluted earnings per 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 share" and "diluted earnings per share" for the three and nine months ended September 30, 2015 and 2014 is as follows: For the three months ended September 30, 2015 Net Earnings (Dollars in thousands) Shares Per Share Amount Basic earnings per share $ 2,493 5,534,581 $ 0.45 Effect of dilutive securities: Restricted stock units - 52,861 Diluted earnings per share $ 2,493 5,587,442 $ 0.45 For the nine months ended September 30, 2015 Net Earnings (Dollars in thousands) Shares Per Share Amount Basic earnings per share $ 7,445 5,573,743 $ 1.34 Effect of dilutive securities: Restricted stock units - 45,466 Diluted earnings per share $ 7,445 5,619,209 $ 1.32 For the three months ended September 30, 2014 Net Earnings (Dollars in thousands) Shares Per Share Amount Basic earnings per share $ 2,442 5,617,125 $ 0.43 Effect of dilutive securities: Restricted stock units - 27,599 Diluted earnings per share $ 2,442 5,644,724 $ 0.43 For the nine months ended September 30, 2014 Net Earnings (Dollars in thousands) Shares Per Share Amount Basic earnings per share $ 7,572 5,615,556 $ 1.35 Effect of dilutive securities: Restricted stock units - 24,173 Diluted earnings per share $ 7,572 5,639,729 $ 1.34 |
5. Stock-Based Compensation
5. Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
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 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. As of September 30, 2015, there were no outstanding options under the 1999 Plan. 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 recognized compensation expense on the restricted stock units over the period of time the restrictions were in place (three years from the grant date for the grants of restricted stock units under the 1999 Plan). The amount of expense recorded in each period reflected the changes in the Company's stock price during such period. As of September 30, 2015, 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 267,560 shares are currently reserved for possible issuance under the 2009 Plan. All stock-based rights under the 2009 Plan must be granted or awarded by May 7, 2019 (or ten years from the 2009 Plan effective date). 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, of which 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 granted 15,075 restricted stock units under the 2009 Plan at a grant date fair value of $17.97 per share during the first quarter of 2015. 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 and 2015 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 such period. As of September 30, 2015, the total unrecognized compensation expense related to the restricted stock unit grants under the 2009 Plan was $715,000. The Company recognized compensation expense for restricted stock unit awards granted under the 2009 Plan of $282,000 and $272,000 for the nine months ended September 30, 2015 and 2014, respectively. |
6. Fair Value
6. Fair Value | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
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 September 30, 2015 and December 31, 2014. (Dollars in thousands) September 30, 2015 Fair Value Measurements Level 1 Valuation Level 2 Valuation Level 3 Valuation Mortgage-backed securities $ 77,466 - 77,466 - U.S. Government sponsored enterprises $ 39,169 - 39,169 - State and political subdivisions $ 148,322 - 148,322 - Corporate bonds $ 1,940 - 1,940 - Trust preferred securities $ 750 - - 750 Equity securities $ 1,174 1,174 - - (Dollars in thousands) December 31, 2014 Fair Value Measurements Level 1 Valuation Level 2 Valuation Level 3 Valuation Mortgage-backed securities $ 90,210 - 90,210 - U.S. Government sponsored enterprises $ 34,048 - 34,048 - State and political subdivisions $ 152,246 - 152,246 - Corporate bonds $ 2,467 - 2,467 - Trust preferred securities $ 750 - - 750 Equity securities $ 1,378 1,378 - - The following is an analysis of fair value measurements of investment securities available for sale using Level 3, significant unobservable inputs, for the nine months ended September 30, 2015. (Dollars in thousands) Investment Securities Available for Sale Level 3 Valuation Balance, beginning of period $ 750 Change in book value - Change in gain/(loss) realized and unrealized - Purchases/(sales and calls) - 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 September 30, 2015 and December 31, 2014 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 Measurements September 30, 2015 Level 1 Valuation Level 2 Valuation Level 3 Valuation Impaired loans $ 31,967 - - 31,967 Other real estate $ 2,349 - - 2,349 (Dollars in thousands) Fair Value Measurements December 31, 2014 Level 1 Valuation Level 2 Valuation Level 3 Valuation Impaired loans $ 34,633 - - 34,633 Other real estate $ 2,016 - - 2,016 The carrying amount and estimated fair value of financial instruments at September 30, 2015 and December 31, 2014 are as follows: (Dollars in thousands) Fair Value Measurements at September 30, 2015 Carrying Amount Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 44,625 44,625 - - 44,625 Investment securities available for sale $ 268,821 1,174 266,897 750 268,821 Other investments $ 3,912 - - 3,912 3,912 Mortgage loans held for sale $ 1,679 - - 1,679 1,679 Loans, net $ 674,380 - - 678,436 678,436 Cash surrender value of life insurance $ 14,440 - 14,440 - 14,440 Liabilities: Deposits $ 806,561 - - 804,236 804,236 Securities sold under agreements to repurchase $ 47,240 - 47,240 - 47,240 FHLB borrowings $ 50,000 - 49,572 - 49,572 Junior subordinated debentures $ 20,619 - 20,619 - 20,619 (Dollars in thousands) Fair Value Measurements at December 31, 2014 Carrying Amount Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 69,098 69,098 - - 69,098 Investment securities available for sale $ 281,099 1,378 278,971 750 281,099 Other investments $ 4,031 - - 4,031 4,031 Mortgage loans held for sale $ 1,375 - - 1,375 1,375 Loans, net $ 640,809 - - 644,708 644,708 Cash surrender value of life insurance $ 14,125 - 14,125 - 14,125 Liabilities: Deposits $ 814,700 - - 813,288 813,288 Securities sold under agreements to repurchase $ 48,430 - 48,430 - 48,430 FHLB borrowings $ 50,000 - 49,598 - 49,598 Junior subordinated debentures $ 20,619 - 20,619 - 20,619 |
7. Regulatory Matters
7. Regulatory Matters | 9 Months Ended |
Sep. 30, 2015 | |
Regulatory Matters | |
7. Regulatory Matters | On August 31, 2015, the Federal Deposit Insurance Corporation ("FDIC") and the North Carolina Office of the Commissioner of Banks ("Commissioner") issued a Consent Order (the "Order") in connection with compliance by the Bank with the Bank Secrecy Act and its implementing regulations (collectively, the "BSA"). The Order was issued pursuant to the consent of the Bank. In consenting to the issuance of the Order, the Bank did not admit or deny any unsafe or unsound banking practices or violations of law or regulation. The Order requires the Bank to take certain affirmative actions to comply with its obligations under the BSA, including, without limitation, strengthening its Board of Directors' oversight of BSA activities; reviewing, enhancing, adopting and implementing a revised BSA compliance program; completing a BSA risk assessment; developing a revised system of internal controls designed to ensure full compliance with the BSA; reviewing and revising customer due diligence and risk assessment processes, policies and procedures; developing, adopting and implementing effective BSA training programs; assessing BSA staffing needs and resources and appointing a qualified BSA officer; establishing an independent BSA testing program; ensuring that all reports required by the BSA are accurately and properly filed and engaging an independent firm to review past account activity to determine whether suspicious activity was properly identified and reported. Prior to implementation, certain of the actions described above are subject to review by and approval or non-objection from the FDIC and the Commissioner. The Order will remain in effect and be enforceable until it is modified, terminated, suspended or set aside by the FDIC and the Commissioner. The Bank continues to make progress in addressing the issues identified in the Order and expects that it will be able to undertake and implement all required actions within the time period specified in the Order. The Bank will incur additional non-interest expenses associated with the implementation of corrective actions; however, these expenses are not expected to have a material impact on the results of operations or financial position of the Bank or the Company. Operating under a consent order will limit the Bank and Company's ability to participate in acquisitions, to open new branches, and to allocate funds to its stock repurchase plan until such time as the consent order has been modified, terminated, suspended or set aside by the FDIC and the Commissioner. |
1. Summary of Significant Acc15
1. Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Pronouncements | In January 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2015-01, (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. In February 2015, FASB issued ASU No. 2015-02, (Topic 810): Amendments to the Consolidation Analysis. In June 2015, FASB issued ASU No. 2015-10, Technical Corrections and Improvements 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 (Table
2. Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment securities available for sale | (Dollars in thousands) September 30, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Mortgage-backed securities $ 75,386 2,098 18 77,466 U.S. Government sponsored enterprises 38,793 505 129 39,169 State and political subdivisions 143,094 5,566 338 148,322 Corporate bonds 1,937 4 1 1,940 Trust preferred securities 750 - - 750 Equity securities 748 426 - 1,174 Total $ 260,708 8,599 486 268,821 (Dollars in thousands) December 31, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Mortgage-backed securities $ 88,496 1,766 52 90,210 U.S. Government sponsored enterprises 33,766 418 136 34,048 State and political subdivisions 145,938 6,534 226 152,246 Corporate bonds 2,469 16 18 2,467 Trust preferred securities 750 - - 750 Equity securities 748 630 - 1,378 Total $ 272,167 9,364 432 281,099 |
Current fair value and associated unrealized losses on investments in securities with unrealized losses | (Dollars in thousands) September 30, 2015 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Fair Value Unrealized Losses Mortgage-backed securities $ 2,278 18 - - 2,278 18 U.S. Government sponsored enterprises 2,319 20 9,064 109 11,383 129 State and political subdivisions 15,762 170 6,668 168 22,430 338 Corporate bonds - - 526 1 526 1 Total $ 20,359 208 16,258 278 36,617 486 (Dollars in thousands) December 31, 2014 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Mortgage-backed securities $ 436 1 2,963 51 3,399 52 U.S. Government sponsored enterprises 2,996 4 9,850 132 12,846 136 State and political subdivisions 567 1 14,998 225 15,565 226 Corporate bonds - - 525 18 525 18 Total $ 3,999 6 28,336 426 32,335 432 |
Amortized cost and estimated fair value of investment securities available for sale by contractual maturity | September 30, 2015 (Dollars in thousands) Amortized Cost Estimated Fair Value Due within one year $ 4,431 4,440 Due from one to five years 57,499 60,100 Due from five to ten years 107,022 109,524 Due after ten years 15,622 16,117 Mortgage-backed securities 75,386 77,466 Equity securities 748 1,174 Total $ 260,708 268,821 |
3. Loans (Tables)
3. Loans (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Major classifications of loans | (Dollars in thousands) September 30, 2015 December 31, 2014 Real estate loans: Construction and land development $ 61,748 57,617 Single-family residential 218,365 206,417 Single-family residential - Banco de la Gente stated income 44,433 47,015 Commercial 234,003 228,558 Multifamily and farmland 14,003 12,400 Total real estate loans 572,552 552,007 Loans not secured by real estate: Commercial loans 88,931 76,262 Farm loans 3 7 Consumer loans 10,047 10,060 All other loans 13,267 13,555 Total loans 684,800 651,891 Less allowance for loan losses 10,420 11,082 Total net loans $ 674,380 640,809 |
Age analysis of past due loans, by loan type | September 30, 2015 (Dollars in thousands) Loans 30-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Total Current Loans Total Loans Accruing Loans 90 or More Days Past Due Real estate loans: Construction and land development $ 383 273 656 61,092 61,748 197 Single-family residential 1,779 1,463 3,242 215,123 218,365 - Single-family residential - Banco de la Gente stated income 1,588 246 1,834 42,599 44,433 - Commercial 602 142 744 233,259 234,003 - Multifamily and farmland 117 - 117 13,886 14,003 - Total real estate loans 4,469 2,124 6,593 565,959 572,552 197 Loans not secured by real estate: Commercial loans 323 29 352 88,579 88,931 29 Farm loans - - - 3 3 - Consumer loans 204 18 222 9,825 10,047 - All other loans - - - 13,267 13,267 - Total loans $ 4,996 2,171 7,167 677,633 684,800 226 December 31, 2014 (Dollars in thousands) Loans 30-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Total Current Loans Total Loans Accruing Loans 90 or More Days Past Due Real estate loans: Construction and land development $ 294 3,540 3,834 53,783 57,617 - Single-family residential 5,988 268 6,256 200,161 206,417 - Single-family residential - Banco de la Gente stated income 8,998 610 9,608 37,407 47,015 - Commercial 3,205 366 3,571 224,987 228,558 - Multifamily and farmland 85 - 85 12,315 12,400 - Total real estate loans 18,570 4,784 23,354 528,653 552,007 - Loans not secured by real estate: Commercial loans 241 49 290 75,972 76,262 - Farm loans - - - 7 7 - Consumer loans 184 - 184 9,876 10,060 - All other loans - - - 13,555 13,555 - Total loans $ 18,995 4,833 23,828 628,063 651,891 - |
Non-accrual loans | (Dollars in thousands) September 30, 2015 December 31, 2014 Real estate loans: Construction and land development $ 209 3,854 Single-family residential 3,335 2,370 Single-family residential - Banco de la Gente stated income 1,955 1,545 Commercial 2,598 2,598 Multifamily and farmland - 110 Total real estate loans 8,097 10,477 Loans not secured by real estate: Commercial loans 102 176 Consumer loans 67 75 Total $ 8,266 10,728 |
Impaired loans | September 30, 2015 (Dollars in thousands) Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Recorded Investment in Impaired Loans Related Allowance Average Outstanding Impaired Loans Real estate loans: Construction and land development $ 643 241 289 530 19 1,638 Single-family residential 8,828 1,496 7,287 8,783 201 9,483 Single-family residential - Banco de la Gente stated income 20,375 - 19,572 19,572 1,155 19,114 Commercial 4,556 - 4,172 4,172 234 4,948 Multifamily and farmland 96 - 93 93 - 100 Total impaired real estate loans 34,498 1,737 31,413 33,150 1,609 35,283 Loans not secured by real estate: Commercial loans 180 - 154 154 3 149 Consumer loans 286 - 280 280 5 298 Total impaired loans $ 34,964 1,737 31,847 33,584 1,617 35,730 December 31, 2014 (Dollars in thousands) Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Recorded Investment in Impaired Loans Related Allowance Average Outstanding Impaired Loans Real estate loans: Construction and land development $ 5,481 3,639 555 4,194 31 5,248 Single-family residential 6,717 933 5,540 6,473 154 7,430 Single-family residential - Banco de la Gente stated income 21,243 - 20,649 20,649 1,191 19,964 Commercial 4,752 1,485 2,866 4,351 272 4,399 Multifamily and farmland 111 - 110 110 1 154 Total impaired real estate loans 38,304 6,057 29,720 35,777 1,649 37,195 Loans not secured by real estate: Commercial loans 218 - 201 201 4 641 Consumer loans 318 - 313 313 5 309 All other loans (not secured by real estate) - - - - - - Total impaired loans $ 38,840 6,057 30,234 36,291 1,658 38,145 |
Changes in the allowance for loan losses | Changes in the allowance for loan losses for the three and nine months ended September 30, 2015 and 2014 were as follows: (Dollars in thousands) Real Estate Loans Construction and Land Development Single- Family Residential Single- Family Residential - Banco de la Gente Stated Income Commercial Multifamily and Farmland Commercial Farm Consumer and All Other Unallocated Total Nine months ended September 30, 2015 Allowance for loan losses: Beginning balance $ 2,785 2,566 1,610 1,902 7 1,098 - 233 881 11,082 Charge-offs (198 ) (447 ) (59 ) (62 ) - (16 ) - (394 ) - (1,176 ) Recoveries 43 30 22 15 - 96 - 115 - 321 Provision 119 676 (113 ) 75 (2 ) (297 ) - 258 (523 ) 193 Ending balance $ 2,749 2,825 1,460 1,930 5 881 - 212 358 10,420 Three months ended September 30, 2015 Allowance for loan losses: Beginning balance $ 2,924 2,456 1,528 1,749 2 902 - 231 586 10,378 Charge-offs (110 ) (48 ) - - - (1 ) - (156 ) - (315 ) Recoveries 20 21 - 5 - 43 - 33 - 122 Provision (85 ) 396 (68 ) 176 3 (63 ) - 104 (228 ) 235 Ending balance $ 2,749 2,825 1,460 1,930 5 881 - 212 358 10,420 Allowance for loan losses September 30, 2015: Ending balance: individually evaluated for impairment $ - 96 1,128 227 - - - - - 1,451 Ending balance: collectively evaluated for impairment 2,749 2,729 332 1,703 5 881 - 212 358 8,969 Ending balance $ 2,749 2,825 1,460 1,930 5 881 - 212 358 10,420 Loans September 30, 2015: Ending balance $ 61,748 218,365 44,433 234,003 14,003 88,931 3 23,314 - 684,800 Ending balance: individually evaluated for impairment $ 241 2,944 18,193 3,525 - - - - - 24,903 Ending balance: collectively evaluated for impairment $ 61,507 215,421 26,240 230,478 14,003 88,931 3 23,314 - 659,897 (Dollars in thousands) Real Estate Loans Construction and Land Development Single- Family Residential Single- Family Residential - Banco de la Gente Stated Income Commercial Multifamily and Farmland Commercial Farm Consumer and All Other Unallocated Total Nine months ended September 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 (772 ) (223 ) (148 ) (181 ) - (197 ) - (399 ) - (1,920 ) Recoveries 389 64 17 165 - 42 - 112 - 789 Provision 239 (230 ) (60 ) (435 ) (29 ) 240 - 282 (34 ) (27 ) Ending balance $ 3,074 2,734 1,672 1,768 8 1,154 - 240 1,693 12,343 Three months ended September 30, 2014 Allowance for loan losses: Beginning balance $ 3,387 2,848 1,708 1,839 7 1,081 - 253 1,552 12,675 Charge-offs (513 ) (30 ) (7 ) (51 ) - (4 ) - (144 ) - (749 ) Recoveries 107 2 - 4 - 15 - 33 - 161 Provision 93 (86 ) (29 ) (24 ) 1 62 - 98 141 256 Ending balance $ 3,074 2,734 1,672 1,768 8 1,154 - 240 1,693 12,343 Allowance for loan losses at September 30, 2014: Ending balance: individually evaluated for impairment $ - 67 1,164 182 - - - - - 1,413 Ending balance: collectively evaluated for impairment 3,074 2,667 508 1,586 8 1,154 - 240 1,693 10,930 Ending balance $ 3,074 2,734 1,672 1,768 8 1,154 - 240 1,693 12,343 Loans at September 30, 2014: Ending balance $ 56,959 202,797 47,665 227,183 10,887 78,139 10 26,910 - 650,550 Ending balance: individually evaluated for impairment $ 3,808 2,312 19,083 3,563 - - - - - 28,766 Ending balance: collectively evaluated for impairment $ 53,151 200,485 28,582 223,620 10,887 78,139 10 26,910 - 621,784 |
Credit risk profile of each loan type based on internally assigned risk grade | September 30, 2015 (Dollars in thousands) Real Estate Loans Construction and Land Development Single- Family Residential Single- Family Residential - Banco de la Gente Stated Income Commercial Multifamily and Farmland Commercial Farm Consumer All Other Total 1- Excellent Quality $ - 13,031 - - - 645 - 1,224 - 14,900 2- High Quality 8,448 84,774 - 41,529 174 26,079 - 3,608 1,723 166,335 3- Good Quality 32,941 79,052 19,547 149,064 10,766 56,106 3 4,490 9,783 361,752 4- Management Attention 11,751 29,762 15,353 34,261 347 5,577 - 594 1,761 99,406 5- Watch 8,240 5,499 3,474 5,180 2,716 349 - 65 - 25,523 6- Substandard 368 6,247 6,059 3,969 - 175 - 62 - 16,880 7- Doubtful - - - - - - - - - - 8- Loss - - - - - - - 4 - 4 Total $ 61,748 218,365 44,433 234,003 14,003 88,931 3 10,047 13,267 684,800 December 31, 2014 (Dollars in thousands) Real Estate Loans Construction and Land Development Single- Family Residential Single- Family Residential - Banco de la Gente Stated Income Commercial Multifamily and Farmland Commercial Farm Consumer All Other Total 1- Excellent Quality $ - 15,099 - - - 924 - 1,232 - 17,255 2- High Quality 6,741 74,367 - 39,888 241 18,730 - 3,576 1,860 145,403 3- Good Quality 24,641 74,453 21,022 142,141 8,376 44,649 7 4,549 8,055 327,893 4- Management Attention 13,013 30,954 12,721 36,433 1,001 11,312 - 566 3,640 109,640 5- Watch 9,294 5,749 5,799 6,153 2,672 383 - 46 - 30,096 6- Substandard 3,928 5,795 7,473 3,943 110 264 - 87 - 21,600 7- Doubtful - - - - - - - - - - 8- Loss - - - - - - - 4 - 4 Total $ 57,617 206,417 47,015 228,558 12,400 76,262 7 10,060 13,555 651,891 |
Analysis of loan modifications | The following tables present an analysis of loan modifications during the nine months ended September 30, 2015 and 2014: Nine months ended September 30, 2015 (Dollars in thousands) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Real estate loans Single-family residential 1 $ 146 142 Total real estate TDR loans 1 146 142 Total TDR loans 1 $ 146 142 Nine months ended September 30, 2014 (Dollars in thousands) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Real estate loans Construction and land development 1 $ 291 291 Single-family residential 2 849 849 Single-family residential - Banco de la Gente stated income 7 594 594 Commercial - - - Multifamily and farmland - - - Total real estate TDR loans 10 1,734 1,734 Total TDR loans 10 $ 1,734 1,734 |
4. Net Earnings Per Share (Tabl
4. Net Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 | For the three months ended September 30, 2015 Net Earnings (Dollars in thousands) Shares Per Share Amount Basic earnings per share $ 2,493 5,534,581 $ 0.45 Effect of dilutive securities: Restricted stock units - 52,861 Diluted earnings per share $ 2,493 5,587,442 $ 0.45 For the nine months ended September 30, 2015 Net Earnings (Dollars in thousands) Shares Per Share Amount Basic earnings per share $ 7,445 5,573,743 $ 1.34 Effect of dilutive securities: Restricted stock units - 45,466 Diluted earnings per share $ 7,445 5,619,209 $ 1.32 For the three months ended September 30, 2014 Net Earnings (Dollars in thousands) Shares Per Share Amount Basic earnings per share $ 2,442 5,617,125 $ 0.43 Effect of dilutive securities: Restricted stock units - 27,599 Diluted earnings per share $ 2,442 5,644,724 $ 0.43 For the nine months ended September 30, 2014 Net Earnings (Dollars in thousands) Shares Per Share Amount Basic earnings per share $ 7,572 5,615,556 $ 1.35 Effect of dilutive securities: Restricted stock units - 24,173 Diluted earnings per share $ 7,572 5,639,729 $ 1.34 |
6. Fair Value (Tables)
6. Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Available for sale securities measured at fair value on a recurring basis | (Dollars in thousands) September 30, 2015 Fair Value Measurements Level 1 Valuation Level 2 Valuation Level 3 Valuation Mortgage-backed securities $ 77,466 - 77,466 - U.S. Government sponsored enterprises $ 39,169 - 39,169 - State and political subdivisions $ 148,322 - 148,322 - Corporate bonds $ 1,940 - 1,940 - Trust preferred securities $ 750 - - 750 Equity securities $ 1,174 1,174 - - (Dollars in thousands) December 31, 2014 Fair Value Measurements Level 1 Valuation Level 2 Valuation Level 3 Valuation Mortgage-backed securities $ 90,210 - 90,210 - U.S. Government sponsored enterprises $ 34,048 - 34,048 - State and political subdivisions $ 152,246 - 152,246 - Corporate bonds $ 2,467 - 2,467 - Trust preferred securities $ 750 - - 750 Equity securities $ 1,378 1,378 - - |
Fair value measurements of investment securities available for sale using Level 3 significant unobservable inputs | (Dollars in thousands) Investment Securities Available for Sale Level 3 Valuation Balance, beginning of period $ 750 Change in book value - Change in gain/(loss) realized and unrealized - Purchases/(sales and calls) - 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 September 30, 2015 Level 1 Valuation Level 2 Valuation Level 3 Valuation Impaired loans $ 31,967 - - 31,967 Other real estate $ 2,349 - - 2,349 (Dollars in thousands) Fair Value Measurements December 31, 2014 Level 1 Valuation Level 2 Valuation Level 3 Valuation Impaired loans $ 34,633 - - 34,633 Other real estate $ 2,016 - - 2,016 |
Carrying amount and estimated fair value of the Company's financial instruments | (Dollars in thousands) Fair Value Measurements at September 30, 2015 Carrying Amount Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 44,625 44,625 - - 44,625 Investment securities available for sale $ 268,821 1,174 266,897 750 268,821 Other investments $ 3,912 - - 3,912 3,912 Mortgage loans held for sale $ 1,679 - - 1,679 1,679 Loans, net $ 674,380 - - 678,436 678,436 Cash surrender value of life insurance $ 14,440 - 14,440 - 14,440 Liabilities: Deposits $ 806,561 - - 804,236 804,236 Securities sold under agreements to repurchase $ 47,240 - 47,240 - 47,240 FHLB borrowings $ 50,000 - 49,572 - 49,572 Junior subordinated debentures $ 20,619 - 20,619 - 20,619 (Dollars in thousands) Fair Value Measurements at December 31, 2014 Carrying Amount Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 69,098 69,098 - - 69,098 Investment securities available for sale $ 281,099 1,378 278,971 750 281,099 Other investments $ 4,031 - - 4,031 4,031 Mortgage loans held for sale $ 1,375 - - 1,375 1,375 Loans, net $ 640,809 - - 644,708 644,708 Cash surrender value of life insurance $ 14,125 - 14,125 - 14,125 Liabilities: Deposits $ 814,700 - - 813,288 813,288 Securities sold under agreements to repurchase $ 48,430 - 48,430 - 48,430 FHLB borrowings $ 50,000 - 49,598 - 49,598 Junior subordinated debentures $ 20,619 - 20,619 - 20,619 |
2. Investment Securities (Detai
2. Investment Securities (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Investment securities available for sale | ||
Amortized Cost | $ 260,708 | $ 272,167 |
Estimated Fair Value | 268,821 | 281,099 |
Mortgage-backed securities | ||
Investment securities available for sale | ||
Amortized Cost | 75,386 | 88,496 |
Gross Unrealized Gains | 2,098 | 1,766 |
Gross Unrealized Losses | 18 | 52 |
Estimated Fair Value | 77,466 | 90,210 |
U.S. Government sponsored enterprises | ||
Investment securities available for sale | ||
Amortized Cost | 38,793 | 33,766 |
Gross Unrealized Gains | 505 | 418 |
Gross Unrealized Losses | 129 | 136 |
Estimated Fair Value | 39,169 | 34,048 |
State and political subdivisions | ||
Investment securities available for sale | ||
Amortized Cost | 143,094 | 145,938 |
Gross Unrealized Gains | 5,566 | 6,534 |
Gross Unrealized Losses | 338 | 226 |
Estimated Fair Value | 148,322 | 152,246 |
Corporate bonds | ||
Investment securities available for sale | ||
Amortized Cost | 1,937 | 2,469 |
Gross Unrealized Gains | 4 | 16 |
Gross Unrealized Losses | 1 | 18 |
Estimated Fair Value | 1,940 | 2,467 |
Trust preferred securities | ||
Investment securities available for sale | ||
Amortized Cost | 750 | 750 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 750 | 750 |
Equity securities | ||
Investment securities available for sale | ||
Amortized Cost | 748 | 748 |
Gross Unrealized Gains | 426 | 630 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 1,174 | 1,378 |
Total | ||
Investment securities available for sale | ||
Amortized Cost | 260,708 | 272,167 |
Gross Unrealized Gains | 8,599 | 9,364 |
Gross Unrealized Losses | 486 | 432 |
Estimated Fair Value | $ 268,821 | $ 281,099 |
2. Investment securities, Conti
2. Investment securities, Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Investment securities with continuous unrealized loss position | ||
Less than 12 Months, Fair Value | $ 20,359 | $ 3,999 |
Less than 12 Months, Unrealized Losses | 208 | 6 |
12 Months or More, Fair Value | 16,258 | 28,336 |
12 Months or More, Unrealized Losses | 278 | 426 |
Total, Fair Value | 36,617 | 32,335 |
Total, Unrealized Losses | 486 | 432 |
Mortgage-backed securities | ||
Investment securities with continuous unrealized loss position | ||
Less than 12 Months, Fair Value | 2,278 | 436 |
Less than 12 Months, Unrealized Losses | 18 | 1 |
12 Months or More, Fair Value | 0 | 2,963 |
12 Months or More, Unrealized Losses | 0 | 51 |
Total, Fair Value | 2,278 | 3,399 |
Total, Unrealized Losses | 18 | 52 |
U.S. Government sponsored enterprises | ||
Investment securities with continuous unrealized loss position | ||
Less than 12 Months, Fair Value | 2,319 | 2,996 |
Less than 12 Months, Unrealized Losses | 20 | 4 |
12 Months or More, Fair Value | 9,064 | 9,850 |
12 Months or More, Unrealized Losses | 109 | 132 |
Total, Fair Value | 11,383 | 12,846 |
Total, Unrealized Losses | 129 | 136 |
State and political subdivisions | ||
Investment securities with continuous unrealized loss position | ||
Less than 12 Months, Fair Value | 15,762 | 567 |
Less than 12 Months, Unrealized Losses | 170 | 1 |
12 Months or More, Fair Value | 6,668 | 14,998 |
12 Months or More, Unrealized Losses | 168 | 225 |
Total, Fair Value | 22,430 | 15,565 |
Total, Unrealized Losses | 338 | 226 |
Corporate bonds | ||
Investment securities with continuous unrealized loss position | ||
Less than 12 Months, Fair Value | 0 | 0 |
Less than 12 Months, Unrealized Losses | 0 | 0 |
12 Months or More, Fair Value | 526 | 525 |
12 Months or More, Unrealized Losses | 1 | 18 |
Total, Fair Value | 526 | 525 |
Total, Unrealized Losses | $ 1 | $ 18 |
2. Investment securities, Contr
2. Investment securities, Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Amortized Cost | ||
Due within one year | $ 4,431 | |
Due from one to five years | 57,499 | |
Due from five to ten years | 107,022 | |
Due after ten years | 15,622 | |
Mortgage-backed securities | 75,386 | |
Equity securities | 748 | |
Total | 260,708 | $ 272,167 |
Estimated Fair Value | ||
Due within one year | 4,440 | |
Due from one to five years | 60,100 | |
Due from five to ten years | 109,524 | |
Due after ten years | 16,117 | |
Mortgage-backed securities | 77,466 | |
Equity securities | 1,174 | |
Total | $ 268,821 |
2. Investment Securities (Det23
2. Investment Securities (Details Narrative) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Investments, Debt and Equity Securities [Abstract] | |||
Unrealized losses in the investment securites portfolio relating to debt securities | $ 486 | ||
Proceeds from sales of investment securities available for sale | 4,250 | $ 20,202 | |
Gains on sales of available-to-sale securities | 291 | ||
Losses on sales of available-to-sale securities | $ 25 | ||
Pledged to secure public deposits | $ 88,900 | $ 89,900 |
3. Loans (Details)
3. Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Major classifications | ||||||
Total loans | $ 684,800 | $ 651,891 | $ 650,550 | |||
Less allowance for loan losses | 10,420 | $ 10,378 | 11,082 | 12,343 | $ 12,675 | $ 13,501 |
Total Net loans | 674,380 | 640,809 | ||||
Construction and land development | ||||||
Major classifications | ||||||
Total loans | 61,748 | 57,617 | 56,959 | |||
Less allowance for loan losses | 2,749 | 2,924 | 2,785 | 3,074 | 3,387 | 3,218 |
Single-family residential | ||||||
Major classifications | ||||||
Total loans | 218,365 | 206,417 | 202,797 | |||
Less allowance for loan losses | 2,825 | 2,456 | 2,566 | 2,734 | 2,848 | 3,123 |
Single-family residential - Banco de la Gente stated income | ||||||
Major classifications | ||||||
Total loans | 44,433 | 47,015 | 47,665 | |||
Less allowance for loan losses | 1,460 | 1,528 | 1,610 | 1,672 | 1,708 | 1,863 |
Commercial | ||||||
Major classifications | ||||||
Total loans | 234,003 | 228,558 | 227,183 | |||
Less allowance for loan losses | 1,930 | 1,749 | 1,902 | 1,768 | 1,839 | 2,219 |
Multifamily and Farmland | ||||||
Major classifications | ||||||
Total loans | 14,003 | 12,400 | 10,887 | |||
Less allowance for loan losses | 5 | 2 | 7 | 8 | 7 | 37 |
Total real estate loans | ||||||
Major classifications | ||||||
Total loans | 572,552 | 552,007 | ||||
Commercial loans (not secured by real estate) | ||||||
Major classifications | ||||||
Total loans | 88,931 | 76,262 | 78,139 | |||
Less allowance for loan losses | 881 | 902 | 1,098 | 1,154 | 1,081 | 1,069 |
Farm loans (not secured by real estate) | ||||||
Major classifications | ||||||
Total loans | 3 | 7 | 10 | |||
Less allowance for loan losses | 0 | $ 0 | 0 | $ 0 | $ 0 | $ 0 |
Consumer loans (not secured by real estate) | ||||||
Major classifications | ||||||
Total loans | 10,047 | 10,060 | ||||
All other loans (not secured by real estate) | ||||||
Major classifications | ||||||
Total loans | $ 13,267 | $ 13,555 |
3. Loans, Past Due (Details)
3. Loans, Past Due (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 |
Past due loans | |||
Loans 30-89 Days Past Due | $ 4,996 | $ 18,995 | |
Loans 90 or More Days Past Due | 2,171 | 4,833 | |
Total Past Due Loans | 7,167 | 23,828 | |
Total Current Loans | 677,633 | 628,063 | |
Total loans | 684,800 | 651,891 | $ 650,550 |
Accruing Loans 90 or More Days Past Due | 226 | 0 | |
Construction and land development | |||
Past due loans | |||
Loans 30-89 Days Past Due | 383 | 294 | |
Loans 90 or More Days Past Due | 273 | 3,540 | |
Total Past Due Loans | 656 | 3,834 | |
Total Current Loans | 61,092 | 53,783 | |
Total loans | 61,748 | 57,617 | |
Accruing Loans 90 or More Days Past Due | 197 | 0 | |
Single-family residential | |||
Past due loans | |||
Loans 30-89 Days Past Due | 1,779 | 5,988 | |
Loans 90 or More Days Past Due | 1,463 | 268 | |
Total Past Due Loans | 3,242 | 6,256 | |
Total Current Loans | 215,123 | 200,161 | |
Total loans | 218,365 | 206,417 | |
Accruing Loans 90 or More Days Past Due | 0 | 0 | |
Single-family residential - Banco de la Gente stated income | |||
Past due loans | |||
Loans 30-89 Days Past Due | 1,588 | 8,998 | |
Loans 90 or More Days Past Due | 246 | 610 | |
Total Past Due Loans | 1,834 | 9,608 | |
Total Current Loans | 42,599 | 37,407 | |
Total loans | 44,433 | 47,015 | |
Accruing Loans 90 or More Days Past Due | 0 | 0 | |
Commercial | |||
Past due loans | |||
Loans 30-89 Days Past Due | 602 | 3,205 | |
Loans 90 or More Days Past Due | 142 | 366 | |
Total Past Due Loans | 744 | 3,571 | |
Total Current Loans | 233,259 | 224,987 | |
Total loans | 234,003 | 228,558 | |
Accruing Loans 90 or More Days Past Due | 0 | 0 | |
Multifamily and Farmland | |||
Past due loans | |||
Loans 30-89 Days Past Due | 117 | 85 | |
Loans 90 or More Days Past Due | 0 | 0 | |
Total Past Due Loans | 117 | 85 | |
Total Current Loans | 13,886 | 12,315 | |
Total loans | 14,003 | 12,400 | |
Accruing Loans 90 or More Days Past Due | 0 | 0 | |
Total real estate loans | |||
Past due loans | |||
Loans 30-89 Days Past Due | 4,469 | 18,570 | |
Loans 90 or More Days Past Due | 2,124 | 4,784 | |
Total Past Due Loans | 6,593 | 23,354 | |
Total Current Loans | 565,959 | 528,653 | |
Total loans | 572,552 | 552,007 | |
Accruing Loans 90 or More Days Past Due | 197 | 0 | |
Commercial loans (not secured by real estate) | |||
Past due loans | |||
Loans 30-89 Days Past Due | 323 | 241 | |
Loans 90 or More Days Past Due | 29 | 49 | |
Total Past Due Loans | 352 | 290 | |
Total Current Loans | 88,579 | 75,972 | |
Total loans | 88,931 | 76,262 | |
Accruing Loans 90 or More Days Past Due | 29 | 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 | 3 | 7 | |
Total loans | 3 | 7 | |
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 | 204 | 184 | |
Loans 90 or More Days Past Due | 18 | 0 | |
Total Past Due Loans | 222 | 184 | |
Total Current Loans | 9,825 | 9,876 | |
Total loans | 10,047 | 10,060 | |
Accruing Loans 90 or More Days Past Due | 0 | 0 | |
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 | 13,267 | 13,555 | |
Total loans | 13,267 | 13,555 | |
Accruing Loans 90 or More Days Past Due | $ 0 | $ 0 |
3. Loans, Nonaccrual (Details)
3. Loans, Nonaccrual (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Non-accrual loans | ||
Non-accrual loans | $ 8,266 | $ 10,728 |
Construction and land development | ||
Non-accrual loans | ||
Non-accrual loans | 209 | 3,854 |
Single-family residential | ||
Non-accrual loans | ||
Non-accrual loans | 3,335 | 2,370 |
Single-family residential - Banco de la Gente stated income | ||
Non-accrual loans | ||
Non-accrual loans | 1,955 | 1,545 |
Commercial | ||
Non-accrual loans | ||
Non-accrual loans | 2,598 | 2,598 |
Multifamily and Farmland | ||
Non-accrual loans | ||
Non-accrual loans | 0 | 110 |
Total real estate loans | ||
Non-accrual loans | ||
Non-accrual loans | 8,097 | 10,477 |
Commercial loans (not secured by real estate) | ||
Non-accrual loans | ||
Non-accrual loans | 102 | 176 |
Consumer loans (not secured by real estate) | ||
Non-accrual loans | ||
Non-accrual loans | $ 67 | $ 75 |
3. Loans, Impaired (Details)
3. Loans, Impaired (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Impaired loans | ||
Unpaid Contractual Principal Balance | $ 34,964 | $ 38,840 |
Recorded Investment With No Allowance | 1,737 | 6,057 |
Recorded Investment With Allowance | 31,847 | 30,234 |
Recorded Investment in Impaired Loans | 33,584 | 36,291 |
Related Allowance | 1,617 | 1,658 |
Average Outstanding Impaired Loans | 35,730 | 38,145 |
Construction and land development | ||
Impaired loans | ||
Unpaid Contractual Principal Balance | 643 | 5,481 |
Recorded Investment With No Allowance | 241 | 3,639 |
Recorded Investment With Allowance | 289 | 555 |
Recorded Investment in Impaired Loans | 530 | 4,194 |
Related Allowance | 19 | 31 |
Average Outstanding Impaired Loans | 1,638 | 5,248 |
Single-family residential | ||
Impaired loans | ||
Unpaid Contractual Principal Balance | 8,828 | 6,717 |
Recorded Investment With No Allowance | 1,496 | 933 |
Recorded Investment With Allowance | 7,287 | 5,540 |
Recorded Investment in Impaired Loans | 8,783 | 6,473 |
Related Allowance | 201 | 154 |
Average Outstanding Impaired Loans | 9,483 | 7,430 |
Single-family residential - Banco de la Gente stated income | ||
Impaired loans | ||
Unpaid Contractual Principal Balance | 20,375 | 21,243 |
Recorded Investment With No Allowance | 0 | 0 |
Recorded Investment With Allowance | 19,572 | 20,649 |
Recorded Investment in Impaired Loans | 19,572 | 20,649 |
Related Allowance | 1,155 | 1,191 |
Average Outstanding Impaired Loans | 19,114 | 19,964 |
Commercial | ||
Impaired loans | ||
Unpaid Contractual Principal Balance | 4,556 | 4,752 |
Recorded Investment With No Allowance | 0 | 1,485 |
Recorded Investment With Allowance | 4,172 | 2,866 |
Recorded Investment in Impaired Loans | 4,172 | 4,351 |
Related Allowance | 234 | 272 |
Average Outstanding Impaired Loans | 4,948 | 4,399 |
Multifamily and Farmland | ||
Impaired loans | ||
Unpaid Contractual Principal Balance | 96 | 111 |
Recorded Investment With No Allowance | 0 | 0 |
Recorded Investment With Allowance | 93 | 110 |
Recorded Investment in Impaired Loans | 93 | 110 |
Related Allowance | 0 | 1 |
Average Outstanding Impaired Loans | 100 | 154 |
Total real estate loans | ||
Impaired loans | ||
Unpaid Contractual Principal Balance | 34,498 | 38,304 |
Recorded Investment With No Allowance | 1,737 | 6,057 |
Recorded Investment With Allowance | 31,413 | 29,720 |
Recorded Investment in Impaired Loans | 33,150 | 35,777 |
Related Allowance | 1,609 | 1,649 |
Average Outstanding Impaired Loans | 35,283 | 37,195 |
Commercial loans (not secured by real estate) | ||
Impaired loans | ||
Unpaid Contractual Principal Balance | 180 | 218 |
Recorded Investment With No Allowance | 0 | 0 |
Recorded Investment With Allowance | 154 | 201 |
Recorded Investment in Impaired Loans | 154 | 201 |
Related Allowance | 3 | 4 |
Average Outstanding Impaired Loans | 149 | 641 |
Consumer loans (not secured by real estate) | ||
Impaired loans | ||
Unpaid Contractual Principal Balance | 286 | 318 |
Recorded Investment With No Allowance | 0 | 0 |
Recorded Investment With Allowance | 280 | 313 |
Recorded Investment in Impaired Loans | 280 | 313 |
Related Allowance | 5 | 5 |
Average Outstanding Impaired Loans | $ 298 | 309 |
All other loans (not secured by real estate) | ||
Impaired loans | ||
Unpaid Contractual Principal Balance | 0 | |
Recorded Investment With No Allowance | 0 | |
Recorded Investment With Allowance | 0 | |
Recorded Investment in Impaired Loans | 0 | |
Related Allowance | 0 | |
Average Outstanding Impaired Loans | $ 0 |
3. Loans, Allowance for Loan Lo
3. Loans, Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Allowance for loan losses | ||||
Beginning balance | $ 10,378 | $ 12,675 | $ 11,082 | $ 13,501 |
Charge-offs | (315) | (749) | (1,176) | (1,920) |
Recoveries | 122 | 161 | 321 | 789 |
Provision | 235 | 256 | 193 | (27) |
Ending balance | 10,420 | 12,343 | 10,420 | 12,343 |
Ending balance: individually evaluated for impairments | 1,451 | 1,413 | 1,451 | 1,413 |
Ending balance: collectively evaluated for impairments | 8,969 | 10,930 | 8,969 | 10,930 |
Ending balance | 10,420 | 12,343 | 10,420 | 12,343 |
Loans | ||||
Ending balance | 684,800 | 650,550 | 684,800 | 650,550 |
Ending balance: individually evaluated for impairment | 24,903 | 28,766 | 24,903 | 28,766 |
Ending balance: collectively evaluated for impairment | 659,897 | 621,784 | 659,897 | 621,784 |
Construction and land development | ||||
Allowance for loan losses | ||||
Beginning balance | 2,924 | 3,387 | 2,785 | 3,218 |
Charge-offs | (110) | (513) | (198) | (772) |
Recoveries | 20 | 107 | 43 | 389 |
Provision | (85) | 93 | 119 | 239 |
Ending balance | 2,749 | 3,074 | 2,749 | 3,074 |
Ending balance: individually evaluated for impairments | 0 | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairments | 2,749 | 3,074 | 2,749 | 3,074 |
Ending balance | 2,749 | 3,074 | 2,749 | 3,074 |
Loans | ||||
Ending balance | 61,748 | 56,959 | 61,748 | 56,959 |
Ending balance: individually evaluated for impairment | 241 | 3,808 | 241 | 3,808 |
Ending balance: collectively evaluated for impairment | 61,507 | 53,151 | 61,507 | 53,151 |
Single-family residential | ||||
Allowance for loan losses | ||||
Beginning balance | 2,456 | 2,848 | 2,566 | 3,123 |
Charge-offs | (48) | (30) | (447) | (223) |
Recoveries | 21 | 2 | 30 | 64 |
Provision | 396 | (86) | 676 | (230) |
Ending balance | 2,825 | 2,734 | 2,825 | 2,734 |
Ending balance: individually evaluated for impairments | 96 | 67 | 96 | 67 |
Ending balance: collectively evaluated for impairments | 2,729 | 2,667 | 2,729 | 2,667 |
Ending balance | 2,825 | 2,734 | 2,825 | 2,734 |
Loans | ||||
Ending balance | 218,365 | 202,797 | 218,365 | 202,797 |
Ending balance: individually evaluated for impairment | 2,944 | 2,312 | 2,944 | 2,312 |
Ending balance: collectively evaluated for impairment | 215,421 | 200,485 | 215,421 | 200,485 |
Single-family residential - Banco de la Gente stated income | ||||
Allowance for loan losses | ||||
Beginning balance | 1,528 | 1,708 | 1,610 | 1,863 |
Charge-offs | 0 | (7) | (59) | (148) |
Recoveries | 0 | 0 | 22 | 17 |
Provision | (68) | (29) | (113) | (60) |
Ending balance | 1,460 | 1,672 | 1,460 | 1,672 |
Ending balance: individually evaluated for impairments | 1,128 | 1,164 | 1,128 | 1,164 |
Ending balance: collectively evaluated for impairments | 332 | 508 | 332 | 508 |
Ending balance | 1,460 | 1,672 | 1,460 | 1,672 |
Loans | ||||
Ending balance | 44,433 | 47,665 | 44,433 | 47,665 |
Ending balance: individually evaluated for impairment | 18,193 | 19,083 | 18,193 | 19,083 |
Ending balance: collectively evaluated for impairment | 26,240 | 28,582 | 26,240 | 28,582 |
Commercial | ||||
Allowance for loan losses | ||||
Beginning balance | 1,749 | 1,839 | 1,902 | 2,219 |
Charge-offs | 0 | (51) | (62) | (181) |
Recoveries | 5 | 4 | 15 | 165 |
Provision | 176 | (24) | 75 | (435) |
Ending balance | 1,930 | 1,768 | 1,930 | 1,768 |
Ending balance: individually evaluated for impairments | 227 | 182 | 227 | 182 |
Ending balance: collectively evaluated for impairments | 1,703 | 1,586 | 1,703 | 1,586 |
Ending balance | 1,930 | 1,768 | 1,930 | 1,768 |
Loans | ||||
Ending balance | 234,003 | 227,183 | 234,003 | 227,183 |
Ending balance: individually evaluated for impairment | 3,525 | 3,563 | 3,525 | 3,563 |
Ending balance: collectively evaluated for impairment | 230,478 | 223,620 | 230,478 | 223,620 |
Multifamily and Farmland | ||||
Allowance for loan losses | ||||
Beginning balance | 2 | 7 | 7 | 37 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | 3 | 1 | (2) | (29) |
Ending balance | 5 | 8 | 5 | 8 |
Ending balance: individually evaluated for impairments | 0 | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairments | 5 | 8 | 5 | 8 |
Ending balance | 5 | 8 | 5 | 8 |
Loans | ||||
Ending balance | 14,003 | 10,887 | 14,003 | 10,887 |
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | 14,003 | 10,887 | 14,003 | 10,887 |
Commercial loans (not secured by real estate) | ||||
Allowance for loan losses | ||||
Beginning balance | 902 | 1,081 | 1,098 | 1,069 |
Charge-offs | (1) | (4) | (16) | (197) |
Recoveries | 43 | 15 | 96 | 42 |
Provision | (63) | 62 | (297) | 240 |
Ending balance | 881 | 1,154 | 881 | 1,154 |
Ending balance: individually evaluated for impairments | 0 | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairments | 881 | 1,154 | 881 | 1,154 |
Ending balance | 881 | 1,154 | 881 | 1,154 |
Loans | ||||
Ending balance | 88,931 | 78,139 | 88,931 | 78,139 |
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | 88,931 | 78,139 | 88,931 | 78,139 |
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 | 3 | 10 | 3 | 10 |
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | 3 | 10 | 3 | 10 |
Consumer And All Other Loans | ||||
Allowance for loan losses | ||||
Beginning balance | 231 | 253 | 233 | 245 |
Charge-offs | (156) | (144) | (394) | (399) |
Recoveries | 33 | 33 | 115 | 112 |
Provision | 104 | 98 | 258 | 282 |
Ending balance | 212 | 240 | 212 | 240 |
Ending balance: individually evaluated for impairments | 0 | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairments | 212 | 240 | 212 | 240 |
Ending balance | 212 | 240 | 212 | 240 |
Loans | ||||
Ending balance | 23,314 | 26,910 | 23,314 | 26,910 |
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | 23,314 | 26,910 | 23,314 | 26,910 |
Unallocated | ||||
Allowance for loan losses | ||||
Beginning balance | 586 | 1,552 | 881 | 1,727 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | (228) | 141 | (523) | (34) |
Ending balance | 358 | 1,693 | 358 | 1,693 |
Ending balance: individually evaluated for impairments | 0 | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairments | 358 | 1,693 | 358 | 1,693 |
Ending balance | 358 | 1,693 | 358 | 1,693 |
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 ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 |
Credit risk profile | |||
Total Loans | $ 684,800 | $ 651,891 | $ 650,550 |
Excellent Quality | |||
Credit risk profile | |||
Total Loans | 14,900 | 17,255 | |
High Quality | |||
Credit risk profile | |||
Total Loans | 166,335 | 145,403 | |
Good Quality | |||
Credit risk profile | |||
Total Loans | 361,752 | 327,893 | |
Management Attention | |||
Credit risk profile | |||
Total Loans | 99,406 | 109,640 | |
Watch | |||
Credit risk profile | |||
Total Loans | 25,523 | 30,096 | |
Substandard | |||
Credit risk profile | |||
Total Loans | 16,880 | 21,600 | |
Doubtful | |||
Credit risk profile | |||
Total Loans | 0 | 0 | |
Loss | |||
Credit risk profile | |||
Total Loans | 4 | 4 | |
Construction and land development | |||
Credit risk profile | |||
Total Loans | 61,748 | 57,617 | |
Single-family residential | |||
Credit risk profile | |||
Total Loans | 218,365 | 206,417 | |
Single-family residential - Banco de la Gente stated income | |||
Credit risk profile | |||
Total Loans | 44,433 | 47,015 | |
Commercial | |||
Credit risk profile | |||
Total Loans | 234,003 | 228,558 | |
Multifamily and Farmland | |||
Credit risk profile | |||
Total Loans | 14,003 | 12,400 | |
Commercial loans (not secured by real estate) | |||
Credit risk profile | |||
Total Loans | 88,931 | 76,262 | |
Farm loans (not secured by real estate) | |||
Credit risk profile | |||
Total Loans | 3 | 7 | |
Consumer loans (not secured by real estate) | |||
Credit risk profile | |||
Total Loans | 10,047 | 10,060 | |
All other loans (not secured by real estate) | |||
Credit risk profile | |||
Total Loans | 13,267 | 13,555 | |
Construction and land development | |||
Credit risk profile | |||
Total Loans | 61,748 | 57,617 | 56,959 |
Construction and land development | Excellent Quality | |||
Credit risk profile | |||
Total Loans | 0 | 0 | |
Construction and land development | High Quality | |||
Credit risk profile | |||
Total Loans | 8,448 | 6,741 | |
Construction and land development | Good Quality | |||
Credit risk profile | |||
Total Loans | 32,941 | 24,641 | |
Construction and land development | Management Attention | |||
Credit risk profile | |||
Total Loans | 11,751 | 13,013 | |
Construction and land development | Watch | |||
Credit risk profile | |||
Total Loans | 8,240 | 9,294 | |
Construction and land development | Substandard | |||
Credit risk profile | |||
Total Loans | 368 | 3,928 | |
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 | 218,365 | 206,417 | 202,797 |
Single-family residential | Excellent Quality | |||
Credit risk profile | |||
Total Loans | 13,031 | 15,099 | |
Single-family residential | High Quality | |||
Credit risk profile | |||
Total Loans | 84,774 | 74,367 | |
Single-family residential | Good Quality | |||
Credit risk profile | |||
Total Loans | 79,052 | 74,453 | |
Single-family residential | Management Attention | |||
Credit risk profile | |||
Total Loans | 29,762 | 30,954 | |
Single-family residential | Watch | |||
Credit risk profile | |||
Total Loans | 5,499 | 5,749 | |
Single-family residential | Substandard | |||
Credit risk profile | |||
Total Loans | 6,247 | 5,795 | |
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 | 44,433 | 47,015 | 47,665 |
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 | 19,547 | 21,022 | |
Single-family residential - Banco de la Gente stated income | Management Attention | |||
Credit risk profile | |||
Total Loans | 15,353 | 12,721 | |
Single-family residential - Banco de la Gente stated income | Watch | |||
Credit risk profile | |||
Total Loans | 3,474 | 5,799 | |
Single-family residential - Banco de la Gente stated income | Substandard | |||
Credit risk profile | |||
Total Loans | 6,059 | 7,473 | |
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 | 234,003 | 228,558 | 227,183 |
Commercial | Excellent Quality | |||
Credit risk profile | |||
Total Loans | 0 | 0 | |
Commercial | High Quality | |||
Credit risk profile | |||
Total Loans | 41,529 | 39,888 | |
Commercial | Good Quality | |||
Credit risk profile | |||
Total Loans | 149,064 | 142,141 | |
Commercial | Management Attention | |||
Credit risk profile | |||
Total Loans | 34,261 | 36,433 | |
Commercial | Watch | |||
Credit risk profile | |||
Total Loans | 5,180 | 6,153 | |
Commercial | Substandard | |||
Credit risk profile | |||
Total Loans | 3,969 | 3,943 | |
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 | 14,003 | 12,400 | 10,887 |
Multifamily and Farmland | Excellent Quality | |||
Credit risk profile | |||
Total Loans | 0 | 0 | |
Multifamily and Farmland | High Quality | |||
Credit risk profile | |||
Total Loans | 174 | 241 | |
Multifamily and Farmland | Good Quality | |||
Credit risk profile | |||
Total Loans | 10,766 | 8,376 | |
Multifamily and Farmland | Management Attention | |||
Credit risk profile | |||
Total Loans | 347 | 1,001 | |
Multifamily and Farmland | Watch | |||
Credit risk profile | |||
Total Loans | 2,716 | 2,672 | |
Multifamily and Farmland | Substandard | |||
Credit risk profile | |||
Total Loans | 0 | 110 | |
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 | 88,931 | 76,262 | 78,139 |
Commercial loans (not secured by real estate) | Excellent Quality | |||
Credit risk profile | |||
Total Loans | 645 | 924 | |
Commercial loans (not secured by real estate) | High Quality | |||
Credit risk profile | |||
Total Loans | 26,079 | 18,730 | |
Commercial loans (not secured by real estate) | Good Quality | |||
Credit risk profile | |||
Total Loans | 56,106 | 44,649 | |
Commercial loans (not secured by real estate) | Management Attention | |||
Credit risk profile | |||
Total Loans | 5,577 | 11,312 | |
Commercial loans (not secured by real estate) | Watch | |||
Credit risk profile | |||
Total Loans | 349 | 383 | |
Commercial loans (not secured by real estate) | Substandard | |||
Credit risk profile | |||
Total Loans | 175 | 264 | |
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 | 0 | 0 | |
Farm loans (not secured by real estate) | |||
Credit risk profile | |||
Total Loans | 3 | 7 | $ 10 |
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 | 3 | 7 | |
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 | 10,047 | 10,060 | |
Consumer loans (not secured by real estate) | Excellent Quality | |||
Credit risk profile | |||
Total Loans | 1,224 | 1,232 | |
Consumer loans (not secured by real estate) | High Quality | |||
Credit risk profile | |||
Total Loans | 3,608 | 3,576 | |
Consumer loans (not secured by real estate) | Good Quality | |||
Credit risk profile | |||
Total Loans | 4,490 | 4,549 | |
Consumer loans (not secured by real estate) | Management Attention | |||
Credit risk profile | |||
Total Loans | 594 | 566 | |
Consumer loans (not secured by real estate) | Watch | |||
Credit risk profile | |||
Total Loans | 65 | 46 | |
Consumer loans (not secured by real estate) | Substandard | |||
Credit risk profile | |||
Total Loans | 62 | 87 | |
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 | 4 | 4 | |
All other loans (not secured by real estate) | |||
Credit risk profile | |||
Total Loans | 13,267 | 13,555 | |
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 | 1,723 | 1,860 | |
All other loans (not secured by real estate) | Good Quality | |||
Credit risk profile | |||
Total Loans | 9,783 | 8,055 | |
All other loans (not secured by real estate) | Management Attention | |||
Credit risk profile | |||
Total Loans | 1,761 | 3,640 | |
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 Modification
3. Loans, TDR Loan Modifications (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015USD ($)Integer | Sep. 30, 2014USD ($)Integer | |
TDR Loans | ||
Number of Contracts | Integer | 1 | 10 |
Pre-Modification Outstanding Recorded Investment | $ 146 | $ 1,734 |
Post-Modification Outstanding Recorded Investment | $ 142 | $ 1,734 |
Single-family residential | ||
TDR Loans | ||
Number of Contracts | Integer | 1 | 2 |
Pre-Modification Outstanding Recorded Investment | $ 146 | $ 849 |
Post-Modification Outstanding Recorded Investment | $ 142 | $ 849 |
Total real estate loans | ||
TDR Loans | ||
Number of Contracts | Integer | 1 | 10 |
Pre-Modification Outstanding Recorded Investment | $ 146 | $ 1,734 |
Post-Modification Outstanding Recorded Investment | $ 142 | $ 1,734 |
Construction and land development | ||
TDR Loans | ||
Number of Contracts | Integer | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 291 | |
Post-Modification Outstanding Recorded Investment | $ 291 | |
Single-family residential - Banco de la Gente stated income | ||
TDR Loans | ||
Number of Contracts | Integer | 7 | |
Pre-Modification Outstanding Recorded Investment | $ 594 | |
Post-Modification Outstanding Recorded Investment | $ 594 | |
Commercial | ||
TDR Loans | ||
Number of Contracts | Integer | 0 | |
Pre-Modification Outstanding Recorded Investment | $ 0 | |
Post-Modification Outstanding Recorded Investment | $ 0 | |
Multifamily and Farmland | ||
TDR Loans | ||
Number of Contracts | Integer | 0 | |
Pre-Modification Outstanding Recorded Investment | $ 0 | |
Post-Modification Outstanding Recorded Investment | $ 0 |
3. Loans (Details Narrative)
3. Loans (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Percentage of construction and land development loans in Bank's loan portfolio | 9.00% | 9.00% | |||
Percentage of single-family residential loans in Bank's loan portfolio | 38.00% | 38.00% | |||
Percentage of Single-family residential - Banco de la Gente stated income loans in Bank's loan portfolio | 6.00% | 6.00% | |||
Percentage of commercial real estate loans in Bank's loan portfolio | 34.00% | 34.00% | |||
Accruing impaired loans | $ 25,500 | $ 26,800 | $ 25,500 | $ 26,800 | $ 25,600 |
Interest income recognized on accruing impaired loans | 286 | 311 | 968 | 992 | 1,300 |
Provision for loan losses | 235 | $ 256 | 193 | $ (27) | |
TDR loans | 5,900 | 5,900 | 15,000 | ||
Amount of performing TDR loans included | $ 142 | $ 142 | $ 1,400 | ||
Commercial | |||||
Percentage of commercial loans in Bank's loan portfolio | 13.00% | 13.00% |
4. Net Earnings Per Share (Deta
4. Net Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net Earnings Available to Common Shareholders | ||||
Basic earnings per share | $ 2,493 | $ 2,442 | $ 7,445 | $ 7,572 |
Effect of dilutive securities: Restricted stock units | 0 | 0 | 0 | 0 |
Diluted earnings per share | $ 2,493 | $ 2,442 | $ 7,445 | $ 7,572 |
Common Shares | ||||
Basic earnings per share (in shares) | 5,534,581 | 5,617,125 | 5,573,743 | 5,615,556 |
Effect of dilutive securities: Restricted stock units (in shares) | 52,861 | 27,599 | 45,466 | 24,173 |
Diluted earnings per share (in shares) | 5,587,442 | 5,644,724 | 5,619,209 | 5,639,729 |
Per Share Amount | ||||
Basic earnings per share | $ 0.45 | $ 0.43 | $ 1.34 | $ 1.35 |
Diluted earnings per share | $ 0.45 | $ 0.43 | $ 1.32 | $ 1.34 |
5. Stock-Based Compensation (De
5. Stock-Based Compensation (Details Narrative) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Unrecognized compensation cost | $ 715 | |
Recognized compensation expense | $ 282 | $ 272 |
6. Fair Value, Level of Hierarc
6. Fair Value, Level of Hierarchy (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Estimated Fair Value | $ 268,821 | $ 281,099 |
Level 1 | ||
Estimated Fair Value | 1,174 | 1,378 |
Level 2 | ||
Estimated Fair Value | 266,897 | 278,971 |
Level 3 | ||
Estimated Fair Value | 750 | 750 |
Mortgage-backed securities | ||
Estimated Fair Value | 77,466 | 90,210 |
Mortgage-backed securities | Level 1 | ||
Estimated Fair Value | 0 | 0 |
Mortgage-backed securities | Level 2 | ||
Estimated Fair Value | 77,466 | 90,210 |
Mortgage-backed securities | Level 3 | ||
Estimated Fair Value | 0 | 0 |
U.S. Government sponsored enterprises | ||
Estimated Fair Value | 39,169 | 34,048 |
U.S. Government sponsored enterprises | Level 1 | ||
Estimated Fair Value | 0 | 0 |
U.S. Government sponsored enterprises | Level 2 | ||
Estimated Fair Value | 39,169 | 34,048 |
U.S. Government sponsored enterprises | Level 3 | ||
Estimated Fair Value | 0 | 0 |
State and political subdivisions | ||
Estimated Fair Value | 148,322 | 152,246 |
State and political subdivisions | Level 1 | ||
Estimated Fair Value | 0 | 0 |
State and political subdivisions | Level 2 | ||
Estimated Fair Value | 148,322 | 152,246 |
State and political subdivisions | Level 3 | ||
Estimated Fair Value | 0 | 0 |
Corporate bonds | ||
Estimated Fair Value | 1,940 | 2,467 |
Corporate bonds | Level 1 | ||
Estimated Fair Value | 0 | 0 |
Corporate bonds | Level 2 | ||
Estimated Fair Value | 1,940 | 2,467 |
Corporate bonds | Level 3 | ||
Estimated Fair Value | 0 | 0 |
Trust preferred securities | ||
Estimated Fair Value | 750 | 750 |
Trust preferred securities | Level 1 | ||
Estimated Fair Value | 0 | 0 |
Trust preferred securities | Level 2 | ||
Estimated Fair Value | 0 | 0 |
Trust preferred securities | Level 3 | ||
Estimated Fair Value | 750 | 750 |
Equity securities | ||
Estimated Fair Value | 1,174 | 1,378 |
Equity securities | Level 1 | ||
Estimated Fair Value | 1,174 | 1,378 |
Equity securities | Level 2 | ||
Estimated Fair Value | 0 | 0 |
Equity securities | Level 3 | ||
Estimated Fair Value | $ 0 | $ 0 |
6. Fair Value, Level 3 Valuatio
6. Fair Value, Level 3 Valuation (Details) - Level 3 $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Investment Securities Available for Sale Level 3 Valuation | |
Balance, beginning of period | $ 750 |
Change in book value | 0 |
Change in gain/(loss) realized and unrealized | 0 |
Purchases/(sales and calls) | 0 |
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, Loans Impaired (
6. Fair Value, Loans Impaired (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Impaired loans | $ 31,967 | $ 34,633 |
Other real estate | 2,349 | 2,016 |
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 | 31,967 | 34,633 |
Other real estate | $ 2,349 | $ 2,016 |
6. Fair Value, Financial Instru
6. Fair Value, Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Assets: | ||
Cash and cash equivalents | $ 44,625 | $ 69,098 |
Investment securities available for sale | 268,821 | 281,099 |
Other investments | 3,912 | 4,031 |
Mortgage loans held for sale | 1,679 | 1,375 |
Loans, net | 674,380 | 640,809 |
Cash surrender value of life insurance | 14,440 | 14,125 |
Liabilities: | ||
Deposits | 806,561 | 814,700 |
Securities sold under agreements to repurchase | 47,240 | 48,430 |
FHLB borrowings | 50,000 | 50,000 |
Junior subordinated debentures | 20,619 | 20,619 |
Estimated Fair Value | ||
Assets: | ||
Cash and cash equivalents | 44,625 | 69,098 |
Investment securities available for sale | 268,821 | 281,099 |
Other investments | 3,912 | 4,031 |
Mortgage loans held for sale | 1,679 | 1,375 |
Loans, net | 678,436 | 644,708 |
Cash surrender value of life insurance | 14,440 | 14,125 |
Liabilities: | ||
Deposits | 804,236 | 813,288 |
Securities sold under agreements to repurchase | 47,240 | 48,430 |
FHLB borrowings | 49,572 | 49,598 |
Junior subordinated debentures | 20,619 | 20,619 |
Level 1 | ||
Assets: | ||
Cash and cash equivalents | 44,625 | 69,098 |
Investment securities available for sale | 1,174 | 1,378 |
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 | 266,897 | 278,971 |
Other investments | 0 | 0 |
Mortgage loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
Cash surrender value of life insurance | 14,440 | 14,125 |
Liabilities: | ||
Deposits | 0 | 0 |
Securities sold under agreements to repurchase | 47,240 | 48,430 |
FHLB borrowings | 49,572 | 49,598 |
Junior subordinated debentures | 20,619 | 20,619 |
Level 3 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Investment securities available for sale | 750 | 750 |
Other investments | 3,912 | 4,031 |
Mortgage loans held for sale | 1,679 | 1,375 |
Loans, net | 678,436 | 644,708 |
Cash surrender value of life insurance | 0 | 0 |
Liabilities: | ||
Deposits | 804,236 | 813,288 |
Securities sold under agreements to repurchase | 0 | 0 |
FHLB borrowings | 0 | 0 |
Junior subordinated debentures | $ 0 | $ 0 |