Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 16, 2016 | Jun. 30, 2015 | |
Document And Entity Information | |||
Entity Registrant Name | M&F BANCORP INC /NC/ | ||
Entity Central Index Key | 1,094,738 | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Amendment Flag | false | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 5.9 | ||
Entity Common Stock, Shares Outstanding | 2,031,337 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Cash and cash equivalents | ||
Cash and due from banks | $ 2,181 | $ 2,871 |
Interest-bearing deposits | 26,081 | $ 30,233 |
Federal funds sold | 11 | |
Total cash and cash equivalents | 28,273 | $ 33,104 |
Interest-bearing time deposits | 6,665 | 2,470 |
Investment securities available for sale, at fair value | 79,941 | 69,703 |
Other invested assets | 298 | 301 |
Loans, net of unearned income and deferred fees | 164,849 | 175,088 |
Allowance for loan losses | (3,435) | (3,440) |
Loans, net | 161,414 | 171,648 |
Interest receivable | 785 | 816 |
Bank premises and equipment, net | 4,412 | 4,293 |
Cash surrender value of bank-owned life insurance | 8,228 | 7,695 |
OREO | 2,764 | 3,069 |
Deferred tax assets and taxes receivable, net | 4,264 | 4,114 |
Other assets | 1,206 | 1,172 |
TOTAL ASSETS | 298,250 | 298,385 |
Deposits | ||
Interest-bearing deposits | 209,817 | 214,055 |
Noninterest-bearing deposits | 44,883 | 41,805 |
Total deposits | 254,700 | 255,860 |
Other borrowings | 938 | 784 |
Other liabilities | 6,388 | 5,163 |
Total liabilities | $ 262,026 | $ 261,807 |
COMMITMENTS AND CONTINGENCIES (Notes 9, 10, 14 and 16) | ||
Stockholders' equity: | ||
Common stock, no par value, 10,000,000 shares authorized; 2,031,337 shares issued and outstanding | $ 8,732 | $ 8,732 |
Retained earnings | 17,895 | 17,785 |
Accumulated other comprehensive loss | (2,134) | (1,668) |
Total stockholders' equity | 36,224 | 36,578 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 298,250 | 298,385 |
Series B Preferred Stock [Member] | ||
Stockholders' equity: | ||
Preferred Stock | $ 11,731 | $ 11,729 |
Series C Junior Participating Preferred Stock [Member] | ||
Stockholders' equity: | ||
Preferred Stock |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, issued (in shares) | 2,031,337 | 2,031,337 |
Common stock, outstanding (in shares) | 2,031,337 | 2,031,337 |
Series B Preferred Stock [Member] | ||
Preferred stock, authorized (in shares) | 11,735 | 11,735 |
Preferred stock, liquidation value (in dollars per share) | $ 1,000 | $ 1,000 |
Preferred stock, issued (in shares) | 11,735 | 11,735 |
Preferred stock, outstanding (in shares) | 11,735 | 11,735 |
Series C Junior Participating Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 21,000 | 21,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Interest income: | ||
Loans, including fees | $ 9,064 | $ 9,913 |
Investment securities available-for-sale, including dividends | ||
Taxable | 1,297 | 1,268 |
Tax-exempt | 101 | 23 |
Interest-bearing time deposits | 82 | 15 |
Other | 69 | 67 |
Total interest income | 10,613 | 11,286 |
Interest expense: | ||
Deposits | 709 | 693 |
Borrowings | 8 | 6 |
Total interest expense | 717 | 699 |
Net interest income | $ 9,896 | 10,587 |
Less provision for loan losses | 50 | |
Net interest income after provision for loan losses | $ 9,896 | 10,537 |
Noninterest income: | ||
Service charges | 1,138 | 1,118 |
Rental income | 200 | 180 |
Cash surrender value of life insurance | 233 | 205 |
Net realized gains on sales of investment securities available-for-sale | $ 29 | 14 |
Gain on sale of repossessed assets | 515 | |
Other income | $ 20 | 432 |
Total noninterest income | 1,620 | 2,464 |
Noninterest expense: | ||
Salaries and employee benefits | 5,484 | 5,471 |
Occupancy and equipment | 1,395 | 1,444 |
Directors fees | 213 | 213 |
Marketing | 199 | 137 |
Professional fees | 594 | 743 |
Information technology | 907 | 910 |
FDIC deposit insurance | 561 | 570 |
OREO expense, net | 485 | 319 |
Delivery expenses | 146 | 161 |
Other | 1,109 | 1,434 |
Total noninterest expense | 11,093 | 11,402 |
Income before income taxes | 423 | 1,599 |
Income tax expense | 76 | 552 |
Net income | 347 | 1,047 |
Less preferred stock dividends and accretion | (237) | (237) |
Net income available to common stockholders | $ 110 | $ 810 |
Basic and diluted earnings per share of common stock: | $ 0.05 | $ 0.40 |
Weighted average shares of common stock outstanding: | ||
Basic and diluted | 2,031,337 | 2,031,337 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) [Abstract] | ||
Net income | $ 347 | $ 1,047 |
Investment securities: | ||
Unrealized holding gains (losses) on investment securities available-for-sale | (494) | 638 |
Tax effect | 178 | (242) |
Reclassification adjustments for net realized gains | (29) | (14) |
Tax effect | 12 | 5 |
Net of tax amount | (333) | 387 |
Defined benefit pension plans: | ||
Net actuarial losses | (184) | (988) |
Tax effect | $ 51 | 357 |
Prior service cost | 2 | |
Tax effect | (1) | |
Net of tax amount | $ (133) | (630) |
Other comprehensive loss, net of tax | (466) | (243) |
Comprehensive income (loss) | $ (119) | $ 804 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Preferred Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] |
Balance, Beginning at Dec. 31, 2013 | $ 36,137 | $ 8,732 | $ 11,727 | $ 17,103 | $ (1,425) |
Balance, Beginning, shares at Dec. 31, 2013 | 2,031,337 | ||||
Accretion of Series B preferred stock issuance costs | $ 2 | (2) | |||
Net income | $ 1,047 | $ 1,047 | |||
Other comprehensive loss, net of tax | (243) | $ (243) | |||
Dividends declared on preferred stock | (235) | $ (235) | |||
Dividends declared on common stock ($0.063 per share) | (128) | (128) | |||
Balance, Ending at Dec. 31, 2014 | $ 36,578 | $ 8,732 | $ 11,729 | 17,785 | $ (1,668) |
Balance, Ending, shares at Dec. 31, 2014 | 2,031,337 | 2,031,337 | |||
Accretion of Series B preferred stock issuance costs | $ 2 | (2) | |||
Net income | $ 347 | $ 347 | |||
Other comprehensive loss, net of tax | (466) | $ (466) | |||
Dividends declared on preferred stock | (235) | $ (235) | |||
Balance, Ending at Dec. 31, 2015 | $ 36,224 | $ 8,732 | $ 11,731 | $ 17,895 | $ (2,134) |
Balance, Ending, shares at Dec. 31, 2015 | 2,031,337 | 2,031,337 |
CONSOLIDATED STATEMENTS OF CHA7
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) | 12 Months Ended |
Dec. 31, 2014$ / shares | |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY [Abstract] | |
Common stock dividend per share | $ 0.063 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 347 | $ 1,047 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 50 | |
Depreciation and amortization | $ 420 | 354 |
Gains on dispositions of repossessed asset | (515) | |
Amortization of discounts/premiums on investment securities available-for-sale, net | $ 416 | 684 |
Deferred income tax provision | 90 | 172 |
Net gains on sales of investment securities available-for-sale | (29) | (14) |
Increase in cash surrender value of bank-owned life insurance | (233) | (205) |
Gains at foreclosure | (13) | (51) |
Net gains on sale of OREO | $ (84) | (61) |
Contribution of OREO | 6 | |
Writedown of OREO | $ 545 | 235 |
Net changes in: | ||
Accrued interest receivable and other assets | (2) | 278 |
Other liabilities | 1,041 | (402) |
Net cash provided by operating activities | 2,498 | 1,578 |
Activity in available for sale securities: | ||
Sales | 19,860 | 1,470 |
Maturities and calls | 28,660 | 10,965 |
Principal collections | 8,215 | 13,417 |
Purchases | (67,883) | (29,683) |
Purchases of interest bearing time deposits | $ (4,195) | (2,470) |
FHLB stock purchases | (263) | |
FHLB stock redemptions | $ 3 | 351 |
Net decrease in loans | 8,876 | 13,390 |
Purchases of bank premises and equipment | $ (539) | (281) |
Disposal of bank premises and equipment | 7 | |
Proceeds from death benefit of bank-owned life insurance policies | 201 | |
Purchase of bank-owned life insurance policy | $ (300) | (1,500) |
Proceeds from dispositions of repossessed asset | 1,107 | |
Proceeds from sales of OREO | $ 1,215 | 725 |
Net cash provided by (used in) investing activities | (6,088) | 7,436 |
Cash flows from financing activities: | ||
Net decrease in deposits | (1,160) | (4,067) |
Proceeds from other borrowings | 357 | 146 |
Repayments of other borrowings | (203) | (209) |
Cash dividends | (235) | (363) |
Net cash used in financing activities | (1,241) | (4,493) |
Net increase (decrease) in cash and cash equivalents | (4,831) | 4,521 |
Cash and cash equivalents as of the beginning of the period | 33,104 | 28,583 |
Cash and cash equivalents as of the end of the period | 28,273 | 33,104 |
Cash paid during period for: | ||
Interest | $ 698 | 698 |
Income Taxes | 386 | |
Noncash Transactions: | ||
Loans transferred to OREO | $ 1,358 | 891 |
Net unrealized gains (losses) on investment securities available-for-sale, net of deferred income tax | $ (333) | 387 |
Loans transferred to foreclosed assets | 3 | |
Accretion of Series B preferred stock issuance costs | $ 2 | 2 |
Adjustments related to defined benefit plans, net of deferred income tax expense | $ (133) | $ (630) |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1 . SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Natur e o f Operation s M& Bancorp Inc (th “ Company ” i ban holdin company an th paren compan o Mechanic an Farmer Bank (th “ Bank ” stat chartere commercia ban incorporate i Nort Carolin ( “ ” i 1907 whic bega operation i 1908 Th Ban ha seven branche i NC tw i Durham tw i Raleigh an on eac i Charlotte Greensboro and Winston Salem Th Company headquartered in Durham operate a singl busines segmen an offer wid variet o consume commercia banking service an product almost exclusivel i NC. Basi s o f Presentatio n - Th Consolidate Financia Statement includ th account an transaction o th Compan an th Bank th wholly owne subsidiary Al significan inter compan account an transaction hav bee eliminate i consolidation. Segmen t Reportin g Base o a analysi performe b th Company managemen ha determine tha th Compan onl ha on operating segment whic i commercia banking Th chie operatin decision make use consolidate result t mak operatin an strategi decisions and therefore th Compan i no require t disclos an additiona segmen information. C as h an d Cas h Equivalent s Th cas an cas equivalent ar comprise o highl liqui short ter investment tha ar carrie a cost which approximate marke value an cas hel a th Federa Reserv Ban o Richmon ("FRB") Th Boar o Governor o th Federa Reserv (the “ Federa Reserve ” an bankin law i N requir bank t maintai averag balance i relatio t specifi percentage of thei customers' deposit a reserve A s o f December 31, 2015 and 2014 , th e Bank , hel d deposit s a s shown: Bank Federal Reserve Federal Funds (Dollars in thousands) Required Average Excess Sold Core Deposits Total December 31, 2015 $ 1,555 $ 23,989 $ 11 $ 3,168 $ 28,723 December 31, 2014 $ 1,557 $ 28,152 $ — $ 3,395 $ 33,104 A o 2015 and 2014 , th Ban hel deposit o $ 30 thousand and $ 0.1 million respectivel a othe financia institution i exces o the federall insure balances. Interest-bearing Time Deposits in Banks – Interest-bearing time deposits in banks mature within five Investmen t Securitie s Debt securities that the Company has the positive intent and ability to hold to maturity are classified as “held to maturity securities” and reported at amortized cost. Debt and equity securities that are bought and held principally for the purpose of selling in the near term are classified as “trading securities” and reported at fair value, with unrealized gains and losses included in consolidated earnings. Debt securities not classified as either held to maturity securities or trading securities, and equity securities not classified as trading securities, are classified as “available for sale securities” and reported at fair value, with unrealized gains and losses excluded from consolidated earnings and reported as a separate component of consolidated stockholders' equity and as an item of other comprehensive income. The unrealized gain or loss of a security is identified and removed from other comprehensive income when a security is sold, matured, or called. The initial classification of securities is determined at the date of purchase. Gains and losses on sales of investment securities, computed based on specific identification of the adjusted cost of each security, are included in noninterest income at the time of sale. Premiums and discounts on debt securities are recognized in interest income using the interest method over the period to maturity, or when the debt securities are called . Declines in the fair value of individual held to maturity and available for sale securities below their costs that are other-than-temporary result in write-downs of the individual securities to their respective fair value. There were no credit write-downs in consolidated earnings as realized losses. Transfers of securities between classifications, of which there were none in 2015 or 2014, are accounted for at fair value. No securities were classified as trading or held to maturity as of December 31, 2015 and 2014 Othe r Investe d Asset s Othe investe asset ar investment i Federa Hom Loa Ban o Atlant (th “ ” stoc carrie a historica cost, a adjuste fo an other than temporar impairmen loss A o an th Company' investment i FHL stoc wer 0.3 . Loan s Loans are stated at the amount of unpaid principal, net of deferred loan origination fees and costs. Loans (net) are reduced by the ALLL. Nonrefundable loan fees associated with the origination or acquisition of loans are deferred and recognized as an adjustment of the loan yield over the life of the loan using the effective interest method. Interest on loans is accrued on the daily balances of unpaid principal outstanding. Interest income is accrued and credited to income only if deemed collectible. Other loan fees and charges, representing service costs for the prepayment of loans, for delinquent payments, or for miscellaneous loan services, are recorded in income when collected . Non - Performin g Loan s an d Lease s Generally, all classes of loans and leases are placed on non-accrual status upon becoming contractually past due 90 days or more as to principal or interest (unless loans are adequately secured by collateral, are in the process of collection, and are reasonably expected to result in repayment), or where substantial doubt about full repayment of principal or interest is evident . When a loan or lease is placed on non-accrual status, regardless of class, the accrued and unpaid interest receivable is reversed and the loan or lease is accounted for on the cash or cost recovery method until qualifying for return to accrual status. All payments received on non-accrual loans and leases are applied against the principal balance of the loan or lease. Loans may be returned to accrual status when all principal and interest amounts contractually due (including any arrearages) are reasonably assured of repayment within a reasonable period, the borrower has demonstrated payment performance for a minimum of six months in accordance with the original or revised contractual terms of the loan, and when doubt about repayment is resolved Generally, for all classes of loans and leases, a charge-off is recorded when it is probable that a loss has been incurred and when it is possible to determine a reasonable estimate of the loss. For all classes of commercial loans and leases, a charge-off is determined on a judgmental basis after due consideration of the debtor's prospects for repayment and the fair value of collateral. For closed-end consumer loans, the entire outstanding balance of the loan is charged-off during the month that the loan becomes 120 days past due as to principal or interest. Consumer loans with non- real estate collateral are written down to the value of the collateral, less estimated costs to sell, if repossession of collateral is assured and in process. For residential mortgage and home equity loan classes, a partial charge-off is recorded at 120 days past due as to principal or interest for the amount that the loan balance exceeds the fair value of the collateral less estimated costs to sell Impaire d Loan s A loan is considered impaired when, based on current information and events, it is probable that the Company will not be able to collect all amounts due from the borrower in accordance with the original contractual terms of the loan, including scheduled interest payments. Impaired loans include all classes of commercial non-accruing loans and Troubled Debt Restructurings ("TDRs") For all classes of commercial loans, a quarterly evaluation of specific individual commercial borrowers with identified weaknesses is performed to identify impaired loans. The identification of specific borrowers for review is based on a review of non-accrual loans as well as those loans specifically identified by management as exhibiting above average levels of risk When a loan has been identified as being impaired, the amount of impairment is measured based on the present value of expected future cash flows discounted at the loan's effective interest rate, the loan's observable market price, or the estimated fair value of the collateral, less any selling costs, if the loan is collateral-dependent. If the measurement of the impaired loan is less than the recorded investment in the loan (including accrued interest, net of deferred loan fees or costs and unamortized premiums or discounts), impairment is recognized by creating or adjusting an existing allocation of the ALLL, or by recording a partial charge-off of the loan to its estimated fair value. Interest payments made on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest income may be accrued or recognized on a cash basis Loan s Modifie d a s a TD R Loans are considered to have been modified as a TDR when the Company makes certain concessions to a borrower experiencing financial difficulty. Concessions to the borrower at modification may include interest rate reductions, principal or interest forgiveness, forbearance, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. Generally, a non-accrual loan that has been modified in a TDR remains on non-accrual status for a period of six months to demonstrate that the borrower is able to meet the terms of the modified loan. However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period . Incom e Recognitio n o n Impaire d an d Nonaccrua l Loan s Loans, including impaired loans, are generally classified as nonaccrual if they are past due as to maturity, or payment of principal or interest for a period of more than 90 days, unless such loans are well secured and in the process of collection. If a loan or a portion of a loan is classified as doubtful or is partially charged off, the loan is generally classified as nonaccrual. Loans that are on a current payment status or past due less than 90 days may also be classified as nonaccrual if full repayment of principal and/or interest is in doubt . Loans may be returned to accrual status when all principal and interest amounts contractually due (including arrearages) are reasonably assured of repayment within a reasonable period of time, and the borrower has demonstrated payment performance for a minimum of six months in accordance with the contractual terms involving payments of cash or cash equivalents In the case where a nonaccrual loan had been partially charged-off, recognition of interest on a cash basis is limited to that which would have been recognized on the remaining loan balance at the contractual interest rate. Receipts in excess of that amount are recorded as recoveries to the allowance for loan losses until prior charged off balances have been fully recovered Reserv e fo r Credi t Losse s The Company's reserve for credit losses is comprised of two components, the allowance for loan losses and the reserve for unfunded commitments (the "Unfunded Reserve") . Allowance s fo r Loa n Losse s Th ALL i valuatio allowanc whic i establishe throug provisio fo loa losse charge t expense. Whe managemen believe tha th collectabilit o th principa i unlikely loan ar charge agains th ALLL Subsequen recoveries i any are credite t th ALLL. Th ALL i management' estimat o probabl losse tha ar inheren i th loa portfolio Th ALL i base o regula quarterl assessments. Th methodologie fo measurin th appropriat leve o th ALL includ th combinatio o quantitativ historica los histor b loa type an qualitativ analysi fo loan no classifie a impaire o TDRs an specifi allowanc metho fo impaire an TD loans Th qualitative analysi i patterne afte th guideline provide unde th Securitie Exchang Commissio ( “ ” Staf Accountin Bulleti 10 an th Federal “ ” Interagenc Polic Statemen o th Allowanc fo Loa an Leas Losse an includ the • Changes in lending policies and procedures, including underwriting standards and collection, charge-off, and recovery practices; • Changes in national economic and business conditions and developments and the effect of unemployment on African Americans, who are the majority of our customers; • Changes in the nature and volume of the loan portfolio; • Changes in the experience, ability, and depth of lending management and staff; • Changes in trends of the volume and severity of past due and classified loans; and changes in trends in the volume of non-accrual loans, troubled debt restructurings and classified loans; • Changes in the quality of the loan review system and the degree of oversight by the Bank's Board of Directors; • The existence and effect of any concentrations of credit, and changes in the level of such concentrations; and • The effect of external factors such as competition and legal and regulatory requirements. Management has developed, from historical loan and economic information, quantitative drivers for certain qualitative factors. Management has identified which factors, by nature, are subjective, such as lending policies, competition, and regulatory requirements. The quantitative drivers, to which different weights are assigned based on management's judgment, are reviewed and updated quarterly. The quantitative loss history was based on a five-year rolling look back at December 31, 2015, and previously on a four-year look back, history of losses incurred by different loan types within the loan portfolio. The change in methodology resulte 425 A specifi ALL i establishe fo loan identifie a impaire o TDRs base o significan condition o circumstance relate t th specific credits Th specifi allowanc amount ar determine b metho prescribe b Accountin Standard Codificatio ( “ ASC ” Receivables. Loan identifie a impaire ar accounte fo i accordanc wit on o thre valuations ( i th presen valu o future cas flow discounte a th loan' effectiv interes rate (ii th loan' observabl marke price o (iii th fai valu o th collateral i th loan is collatera dependent les estimate liquidatio costs loa i considere impaire whe i i probabl tha no al amount du (principa and interest wil b collectibl accordin t th origina contractua term o th loa agreement Factor considere b managemen i determining impairmen includ paymen status collatera valu an th probabilit o collectin schedule principa an interes payment whe due Loans tha experienc insignifican paymen delay an paymen shortfall generall ar no classifie a impaired Th significanc o paymen delay and paymen shortfall ar considere o loa -by-loan basis takin int consideratio al o th circumstance surroundin th loa an th borrower, includin th lengt o th delay th reason fo th delay th borrower' prio paymen record an th amoun o th shortfal i relatio t the principa an interes owed. Fo commercia business faith base non profit rea estat an certai consume loans th measuremen o loa impairmen i base o th present valu o th expecte futur cas flows discounte a th loan' effectiv interes rate o o th fai valu o th loan' collatera i th loa is collatera dependent Mos consume ar smalle balanc an homogeneous and ar evaluate fo impairmen on collectiv , applyin th quantitativ los histor an th qualitativ factors Impairmen losse ar include i th ALL throug charg t th provisio for loa losses. Th Compan use severa credi qualit indicator t manag credi ris i a ongoin manner Th Company' ris ratin syste wa develope to ai i th ris managemen proces b groupin credit wit simila ris profile int pass specia mention substandard o doubtful categories. Credi ris rating ar applie individuall t al classe o loan an leases Interna credit reviews and external contracted credit review examination ar use t determin an validat loa ris grades Th credi revie syste take int consideratio factor suc as borrower's backgroun an experience historica an curren financia condition credi histor an paymen performance economi condition an their impac o variou industries type marke valu an volatilit o th marke valu o collateral lie position an th financia strengt of guarantors. Th proces o assessin th adequac o th ALL i necessaril subjective Further an particularl i period o economi downturns i is reasonabl possibl tha futur credi losse ma excee historica los level an ma als excee management' curren estimate o incurred credi losse inheren withi th loa portfolio A such ther ca b n assuranc tha futur loa charge off wil no excee management's curren estimat o wha constitute reasonabl ALLL. Th Compan an th Ban ar subjec t periodi examinatio b thei federa an stat regulators an ma b require b suc regulator to recogniz addition t th allowanc fo loa losse base o thei assessmen o credi informatio availabl t the a th tim o their examinations. Reserv e fo r Unfunde d Commitment s Th Unfunde Reserv i componen o othe liabilitie an represent th estimat fo probabl credit losse inheren i unfunde commitment t exten credit Unfunde commitment t exten credi includ unfunde loan wit availabl balances, ne commitment to len tha ar no ye funded an standb an commercia letter o credit Th proces use t determin th Unfunded Reserv i consisten wit th proces fo determinin th ALLL a adjuste fo estimate fundin probabilitie an historica rolling look-back quantitative loan loss factor for 2014 Th leve o th Unfunde Reserv i adjuste b recordin a expens o recover i othe noninteres expense The balance o $ 10 $ 34 fo 2015 and 2014 respectively wer reflecte i othe liabilitie o th Consolidated Balance Sheet. Ban k Premise s an d Equipment , Ne t Premise an equipmen ar state a cos les accumulate depreciatio an amortization Fo financial reportin purposes depreciatio an amortizatio ar compute b th straight lin metho an ar charge t operation ove th estimate useful live o th assets whic rang fro 3 5 year fo premises generall 6 1 year fo furnitur an equipment an 3 5 technolog equipmen an software Leasehol improvement ar amortize ove th term o th respectiv lease o th usefu live o the improvements whichever is shorter Maintenanc and repair are charge to operation as incurred Th Ban reviews long live assets impairmen wheneve event o change i circumstance indicat tha th carryin amount o suc asset ma no b recoverable I th su of th expecte cas flow attributabl t a asse i les tha th state amoun o th asset a impairmen los i recognize i th curren period an charge t operations Upo disposition th asse an relate accumulate depreciatio and/o amortizatio ar relieved an an gain or losse ar reflecte i operations. Cas h Surrende r Valu e o f Lif e Insuranc e Th Ban maintain lif insuranc o certai curren an forme officer an directors o whic th Bank i owne an beneficiary Th cas surrende valu o th policie a wa 8.2 an 7.7 respectively. Incom fro th policie an change i th ne cas surrende valu ar recorde i noninteres income. O REO - O REO whic represent rea estat acquire throug foreclosure o th transfe o th deed i lie o foreclosure i satisfactio o commercia an consume rea estat collateralize loans i initiall recorde a fai valu les estimated holdin an sellin cost o th rea estate Loa balance i exces o th fai valu o th rea estat acquire a th dat o th foreclosur are charge t th ALLL An subsequen operatin expense o income reductio i estimate fai values an gain o losse o dispositio o such propertie ar charge o credite t non interes incom o non interes expense Valuation ar periodicall performe b management an any subsequen write down du t th carryin valu o propert exceedin it estimate fai valu les estimate cost t sel ar charge against othe non interes expense A o 201 5 and 201 4 , ther wa 2.8 an 3.1 respectively of foreclosed properties included in OREO on the Consolidated Balance Sheets of which $ 0.2 0.9 0.5 . Earning s Pe r Shar e Earning pe shar ar calculate o th basi o th weighte averag numbe o share o commo stoc outstandin fo the purpos o computin th basi earning pe shar an th weighte averag numbe o share o commo stoc outstandin plu dilutiv common stoc equivalents suc a stoc options fo th purpos o computin dilute earning pe share A o ther wer no stoc option outstanding. Advertisin g Cost s - Adverti si n i expense a incurred. Incom e Taxe s Provision fo incom taxe ar base o amount reporte i th Consolidate Statement o Incom (afte exclusio o non taxabl incom suc a interes o stat an municipa securities an includ change i deferre incom taxes Deferre ta asse an liability balance reflec temporar difference a th ta rat expecte t b i effec whe taxe wil becom payabl o receivable Temporar differences ar difference betwee th ta basi o asset an liabilitie an thei reporte amount i th Consolidate Financia Statement tha wil resul in taxabl o deductibl amount i futur years Th effec o chang i ta rate i recognize i incom i th perio tha include th enactment date valuatio allowanc i recorde fo deferre ta asset i th Compan determine tha i i mor likel tha no tha som portio o al of th deferre ta asset wil no b realized Th Compan regularl review it deferre ta asset fo recoverabilit considerin historical profitability projecte futur taxabl income an th expecte timin o th reversal o existin temporar difference an ta plannin strategies. Whe ta return ar filed i i highl certai tha som position take woul b sustaine upo examinatio b th taxin authorities whil others ar subjec t uncertaint abou th merit o th positio take o th amoun o th positio tha ultimatel woul b sustained Th benefi o ta positio i recognize i th financia statement i th perio durin which base o al availabl evidence managemen believe i i more tha no tha th positio wil b sustaine upo examination includin th resolutio o appeal o litigatio process i any Th evaluation o ta positio take i considere b itsel an no offse o aggregate wit othe positions Ta position tha mee th more tha not recognitio threshol ar measure a th larges amoun o ta benefi tha i mor tha 5 percen likel o bein realize upo settlemen wit the applicabl taxin authority Th portio o benefit associate wit ta position take tha exceed th amoun measure a describe abov is reflecte a liabilit fo unrecognize ta benefit i th accompanyin Consolidate Balanc Sheet alon wit an associate interes and penaltie tha woul b payabl t th taxin authoritie upo examination Interes an penaltie associate wit unrecognize ta benefit are recognize i incom ta expens o th incom statement I i th Company' polic t recogniz interes an penaltie relate t unrecognize tax liabilitie within income tax expens in th statement of income Th Company does not hav an accrua for uncertai tax position as of a deduction take an benefit accrue ar base o widel understoo administrativ practice an procedure and ar base o ta law Th Company' federa an stat incom ta return ar subjec t revie an examinatio b governmen authorities. Comprehensiv e Incom e (Loss ) Comprehensiv incom (loss i th chang i th Company' equit durin th perio fro transaction an other event an circumstance from non owne sources Tota comprehensiv income (loss consist o ne incom an othe comprehensiv ( loss) income Th Company' othe comprehensiv (loss incom an accumulate othe comprehensiv los ar comprise o ne unrealize gain and losse o certai investment in deb securitie and post retiremen plans Informatio concerning the Company's other comprehensiv ( loss) incom an accumulate comprehensiv los a o an fo th year ende ar presented in the C onsolidated S tatements of C omprehensive I ncome . Fai r Value s o f Financia l Instrument s Fai value o financia instrument ar estimate usin relevan marke informatio an othe assumptions, a mor full disclose i Not 17 Fai valu estimate involv uncertaintie an matter o significan judgmen regardin interes rates credi risk, prepayments an othe factors especiall i th absenc o broa market fo particula items Change i assumption o i marke conditions coul significantl affec th estimates Fai valu i define a th exchang pric tha woul b receive t sel a asse o pai t transfe liabilit i th principa o mos advantageou marke fo th asse o liabilit i a orderl transactio betwee marke participant o the measuremen date Generall accepte accountin principle ( “ GAAP ” establishe fai valu hierarch tha prioritize th informatio use to develo thos assumptions Th fai valu hierarch give th highes priorit t quote price i activ market (observabl inputs an th lowest priorit t th Company' assumption (unobservabl inputs) GAA require fai valu measurement t b separatel disclose b leve withi the fai valu hierarchy Fo asset an liabilitie recorde a fai value th Compan maximize th us o observabl input an minimize th us of unobservabl input whe developin fai valu measurements. Th Compan utilize fai valu measurement t recor fai valu adjustment t certai asset an liabilitie an t determin fai value disclosures Available for sal investmen securitie ar recorde a fai valu o recurrin basis Additionally th Compan ma b require to recor a fai valu othe asset o nonrecurrin basis suc a loan hel fo sale loan hel fo investmen an certai othe assets. Unde GAAP th Compan group asset an liabilitie a fai valu i thre levels base o th market i whic th asset an liabilitie are trade an th reliabilit o th assumption use t determin fai value Th Compan di no hav an change i levelin input i 2013 Thes level are: Level Valuation fo asset an liabilitie trade i activ exchang markets suc a th Ne Yor Stoc Exchange. Level Valuation ar obtaine fro readil availabl pricin source vi independen provider fo marke transaction involvin simila assets principa marke fo thes securitie i th secondar institutiona market an valuation ar base o observable marke dat i thos markets Leve securitie includ U S Government a genc y securities (“U.S. Agencies”) U.S. Government sponsored residential mortgage backed securities (“MBS”) and State and Municipal Bonds (“Municipals”) . Level Valuation fo asset an liabilitie tha ar derive fro othe valuatio methodologies includin optio pricin models discounted cas flo model an simila techniques an no base o marke exchange dealer o broke trade transactions Leve valuation incorporate certai assumption an projection i determinin th fai valu assigne t suc assets. Us e o f Estimate s Th preparatio o financia statement i conformit wit GAA require managemen t mak estimate an assumption that affec th reporte amount o asset an liabilitie an disclosur o contingen asset an liabilitie a th dat o th financia statement an the reporte amount o revenue an expense durin th reportin period Materia estimate tha ar susceptibl t chang i th nea ter relat to th determinatio o th ALL an th provisio fo loa losses th evaluatio o other than temporar impairmen o investmen securities, accountin fo deferre ta asset an relate valuatio allowances th determinatio o th fai value o investmen securitie an other accountin fo incentiv compensation an post retiremen benefits Actua result coul diffe fro thos estimates. Significan t Grou p Concentration s Mos o th Bank' activitie ar wit customer locate withi th stat o NC Th Bank does have concentration wit respec t loan t an deposit fro faith base non profi organization a outline i Note an t th Consolidated Financia Statements. Mortgag e Servicin g Right s Mortgag servicin right ar recognize a asset whe mortgag loan ar sol an th right t servic those loan ar retained Mortgag servicin right ar initiall recorde a fai valu b usin discounte cas flo mode t calculat th presen value o estimate futur ne servicin income. Th Company' mortgag servicin right accounte fo unde th amortizatio metho ar initiall recorde a fai value Th Compan obtain an annua appraisa o it mortgag servicin right an adjust th carryin valu accordingly Durin th year th carryin valu i amortize based o th yea -end appraisa t tota service mortgag balance outstandin a o quarte end. Ne w Accountin g Pronouncement s – In May 2014, the Financial Accounting Standards Board (the “FASB”) issued guidance to change the recognition of revenue from contracts with customers. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. The guidance will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect this guidance to have a material effect on its financial statements. In August 2014, the FASB issued guidance that is intended to define management's responsibility to evaluate whether there is substantial doubt about an organization's ability to continue as a going concern and to provide related footnote disclosures. In connection with preparing financial statements, management will need to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the organization's ability to continue as a going concern within one year after the date that the financial statements are issued. The amendments will be effective for the Company for annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. The Company does not expect these amendments to have a material effect on its financial statements. In January 2015, the FASB issued guidance that eliminated the concept of extraordinary items from GAAP. Existing GAAP required that an entity separately classify, present, and disclose extraordinary events and transactions. The amendments will eliminate the requirements for reporting entities to consider whether an underlying event or transaction is extraordinary, however, the presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The amendments may be applied either prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company does not expect these amendments to have a material effect on its financial statements. In February 2015, the FASB issued guidance, which amends the consolidation requirements and significantly changes the consolidation analysis required under GAAP. Although the amendments are expected to result in the deconsolidation of many entities, the Company will need to reevaluate all its previous consolidation conclusions. The amendments will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted (including during an interim period), provided that the guidance is applied as of the beginning of the annual period containing the adoption date. The Company does not expect these amendments to have a material effect on its financial statements. In April 2015, the FASB issued guidance which provides a practical expedient that permits the Company to measure defined benefit plan assets and obligations using the month-end that is closest to the Company's fiscal year-end. The amendments will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. The Company does not expect these amendments to have a material effect on its financial statements. In August 2015, the FASB deferred the effective date of ASU 2014-09, Revenue from Contracts with Customers. In August 2015, the FASB issued amendments to the “Interest” topic of the ASC to clarify the SEC staff's position on presenting and measuring debt issuance costs incurred in connection with line-of-credit arrangements. The amendments were effective upon issuance. The Company does not expect these amendments to have a material effect on its financial statements. In November 2015, the FASB amended the Income Taxes topic of the Accounting Standards Codification simplify the presentation of deferred income taxes by requiring that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments will be effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods, with early adoption permitted as of the beginning of an interim or annual reporting period. The Company will apply the guidance prospectively. The Company does not expect these amendments to have a material effect on its financial statements. In January 2016, the FASB amended the “Financial |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 12 Months Ended |
Dec. 31, 2015 | |
INVESTMENT SECURITIES [Abstract] | |
INVESTMENT SECURITIES | 2. INVESTMENT SECURITIES The main objectives of our investment strategy are to provide a source of liquidity while managing our interest rate risk, and to generate an adequate level of interest income without taking undue risks. Our investment policy permits investments in various types of securities, certificates of deposit and federal funds sold in compliance with various restrictions in the policy. As of December 31, 2015 and 2014 all investment securities were classified as available for sale. Our available-for-sale securities totaled $ 79.9 69.7 The following table shows the amounts pledged. (Dollars in thousands) December 31, 2014 Pledged to FRB $ 830 $ 1,008 Pledged for public housing 2,886 3,816 Pledged to the NC State Treasurer 19,643 18,115 Our investment portfolio consists of the following securities: • U.S. Agencies • MBS, and • Municipals The amortized cost, gross unrealized gains and losses and fair values of investment securities at December 31, 2015 and 2014 were: (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2015 U.S. Agencies $ 30,681 $ 2 $ (250 ) $ 30,433 MBS Residential 41,323 20 (409 ) 40,934 Municipals North Carolina 8,489 98 (13 ) 8,574 Total $ 80,493 $ 120 $ (672 ) $ 79,941 December 31, 2014 U.S. Agencies $ 12,373 $ 26 $ (60 ) $ 12,339 MBS Residential 56,350 281 (276 ) 56,355 Municipals 1,009 9 (9 ) 1,009 Total $ 69,732 $ 316 $ (345 ) $ 69,703 Sales and calls of securities available for sale for the year ended December 31, 2015 and December 31, 2014 resulted in aggregate gross realized gains of $ 205 176 The amortized cost and estimated market values of securities as of December 31, 2015 and 2014 by contractual maturities with the exception of MBS, which reflects projected cash flow streams, are shown below. Actual maturities may differ, because borrowers may have the right to call or prepay MBS, collateralized mortgage obligations, agency securities, and municipal bonds with or without call or prepayment penalties. Certain mortgage-backed securities have adjustable interest rates and will reprice within the various maturity ranges. These repricing schedules are not reflected in the table below. (Dollars in thousands) As of December 31, 2015 Fair Value Amortized Cost U.S. Agencies Due within one year $ 3,481 $ 3,500 Due after one year through five years 21,998 22,181 Due after five years through ten years 4,954 5,000 Total US government agencies $ 30,433 $ 30,681 MBS Residential Due within one year $ 5,750 $ 5,812 Due after one year through five years 15,526 15,672 Due after five years through ten years 11,387 11,480 Due after ten years 8,271 8,359 Total government sponsored MBS $ 40,934 $ 41,323 Municipals Due within one year $ 262 $ 260 Due after one year through five years 738 738 Due after five years through ten years 7,169 7,091 Due after 10 years 405 400 Total municipal bonds $ 8,574 $ 8,489 (Dollars in thousands) As of December 31, 2014 Fair Value Amortized Cost U.S. Agencies Due withhin one year 2,498 2,499 Due after one year through five years $ 7,887 $ 7,874 Due after five years through ten years 1,954 2,000 Total US government agencies $ 12,339 $ 12,373 MBS Residential Due within one year $ 10,114 $ 10,139 Due after one year through five years 24,003 24,018 Due after five years through ten years 13,803 13,771 Due after ten years 8,435 8,422 Total government sponsored MBS $ 56,355 $ 56,350 Municipals Due within one year $ 162 $ 161 Due after one year through five years 268 260 Due after five years through ten years 579 588 Total municipal bonds $ 1,009 $ 1,009 As of December 31, 2015 and December 31, 2014, the fair value of securities with gross unrealized losses by length of time that the individual securities have been in an unrealized loss position is as follows: (Dollars in thousands) Less Than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2015 U.S. Agencies $ 27,060 $ (237 ) $ 987 $ (13 ) $ 28,047 $ (250 ) MBS Residential 24,369 (193 ) 9,970 (216 ) 34,339 (409 ) Municipals 1,405 (13 ) — — 1,405 (13 ) Total $ 52,834 $ (443 ) $ 10,957 $ (229 ) $ 63,791 $ (672 ) (Dollars in thousands) Less Than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2014 U.S. Agencies $ 5,982 $ (14 ) $ 1,954 $ (46 ) $ 7,936 $ (60 ) MBS Residential 12,594 (73 ) 13,476 (203 ) 26,070 (276 ) Municipals — — 579 (9 ) 579 (9 ) Total $ 18,576 $ (87 ) $ 16,009 $ (258 ) $ 34,585 $ (345 ) All securities owned as of December 31, 2015 and December 31, 2014 were investment grade. The Company evaluates securities for other-than- temporary impairment, at least on a quarterly basis. Consideration is given to the financial condition and near-term prospects of the issuer, the length of time and extent to which the fair value has been less than cost, and our intent and ability to retain our investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. As of December 31, 2015 and 2014, the Company held 71 59 |
FHLB STOCK
FHLB STOCK | 12 Months Ended |
Dec. 31, 2015 | |
FHLB STOCK [Abstract] | |
FHLB STOCK | 3 . FHLB STOCK T b membe o th FHL System th Ban i require t maintai a investmen i capita stoc o th FHL i a amount equa t 0.09 during 2015 and 2014 o it tota asset a o Decembe 3 o th prio yea (u t maximu o $ 15.0 ) plu 4.5 o it outstandin FHL advances. Th carryin valu o FHL stock whic i include i othe investe assets a o 2015 and 2014 was 0.3 N read marke exist fo th FHL stock an i ha n quote marke value however managemen believe tha th cost approximate th marke valu a o Managemen ha reviewe it investmen i FHL stoc fo impairmen an doe no believ i i impaire a o Th FHL o Atlant i whic th Compan own stoc ha bee profitabl i eac o th year ende |
RECONCILIATIONS OF BASIC AND DI
RECONCILIATIONS OF BASIC AND DILUTED EARNINGS PER SHARE ("EPS") | 12 Months Ended |
Dec. 31, 2015 | |
RECONCILIATIONS OF BASIC AND DILUTED EARNINGS PER SHARE ("EPS") [Abstract] | |
RECONCILIATIONS OF BASIC AND DILUTED EARNINGS PER SHARE ("EPS") | 4 . RECONCILIATIONS OF BASIC AND DILUTED EARNINGS PER SHARE ("EPS") Basi EP i compute b dividin ne incom afte preferre stoc dividend b th weighte averag numbe share o commo stock outstandin fo th period Basi EP exclude th dilutiv effec tha coul occu i an option o warrant t purchas share o commo stock wer exercised Dilute EP i compute b dividin ne incom b th su o th weighte averag numbe o share o commo stock outstandin fo th perio plu th numbe o additiona share o commo stoc tha woul hav bee outstandin i th potentiall dilutive commo share ha bee issued Ther ar n stoc option o warrant outstandin fo an o th period bein reported. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Dec. 31, 2015 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | 5. ACCUMULATED OTHER COMPREHENSIVE LOSS Comprehensive income (loss) includes net income and all other changes to the Company's equity, with the exception of transactions with stockholders. The Company's other comprehensive loss and accumulated other comprehensive loss are comprised of unrealized gains and losses on certain investments in debt securities and defined benefit plan adjustments. CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS BY COMPONENT For the Years Ended December 31, 2015 and 2014 (Dollars in thousands) Unrealized Gains and Losses on Available-for- Sale Defined Benefit Pension Items Total Balance as of December 31, 2013 $ (404 ) $ (1,021 ) $ (1,425 ) Other comprehensive loss before reclassifications 396 (631 ) (235 ) Amounts reclassified from accumulated other comprehensive income (loss) (9 ) 1 (8 ) Net current-period other comprehensive income (loss) 387 (630 ) (243 ) Balance as of December 31, 2014 $ (17 ) $ (1,651 ) $ (1,668 ) Balance as of December 31, 2014 $ (17 ) $ (1,651 ) $ (1,668 ) Other comprehensive income before reclassifications (316 ) (133 ) (449 ) Amounts reclassified from accumulated other comprehensive loss (17 ) — (17 ) Net current-period other comprehensive loss (333 ) (133 ) (466 ) Balance as of December 31, 2015 $ (350 ) $ (1,784 ) $ (2,134 ) All amounts are net of tax. RECLASSIFICATION ADJUSTMENTS FROM ACCUMULATED OTHER COMPREHENSIVE LOSS For the Years Ended December 31, (Dollars in thousands) 2015 2014 Detail about Acumulated Other Comprehensive Loss Components Amount Reclassified from Accumulated Other Comprehensive Loss Amount Reclassified from Accumulated Other Comprehensive Loss Net Unrealized holding gains - investment securities available-for-sale $ (29) $ (14) Income tax expense 12 5 Total, net of tax (17) (9) Amortization of defined benefit pension — 2 Income tax expense — (1) Total, net of tax — 1 Total reclassifications for the period $ (17) $ (8) |
LOANS AND ALLL
LOANS AND ALLL | 12 Months Ended |
Dec. 31, 2015 | |
LOANS AND ALLL [Abstract] | |
LOANS AND ALLL | 6. LOANS AND ALLL The ALLL is management's estimate of losses inherent in the loan portfolio. The provision for loan losses is the amount charged against earnings to establish an adequate ALLL. Loan losses and recoveries are charged to or credited to the ALLL, rather than reported as a direct expense or recovery. The loan portfolio is segmented into three parts for the ALLL calculation: impaired commercial loans and smaller balance homogenous loans in the process of foreclosure, TDRs (collectively referred to as "impaired loans"), and all other loans. For all classes of commercial loans, a quarterly evaluation of specific individual borrowers is performed to identify impaired loans. The identification of specific borrowers for review is based on a review of non-accrual loans as well as those loans specifically identified by management as exhibiting above average levels of risk through the loan classification process. The ALLL attributed to impaired loans and TDRs considers all available evidence based on significant conditions or circumstances related to the specific credits. The specific allowance amounts are determined by a method prescribed by ASC 310 . Most consumer loans are evaluated for impairment on a collective basis, because these loans are for smaller balances and are homogeneous. Any loans, including commercial loans, not specifically identified as impaired or TDRs, are collectively evaluated and segmented by loan type, applying two factors: the quantitative loss history by loan type for the previous five year periods at December 31, 2015, previously four year periods at December 31, 2014, compared to average loans outstanding for the same period (the "quantitative factor"), and a qualitative factor that is comprised of quantitatively-driven calculations based on historical data, and subjective factors (the "qualitative factors"). The change in methodology resulted in a $425 thousand increase in the ALLL at December 31, 2015. The quantitative portion of the ALLL is adjusted for qualitative factors to account for model imprecision and to incorporate the range of probable outcomes inherent in the estimates used for the allowance. The quantitative factor by loan type is applied against the unimpaired loan balances and smaller-balance homogenous impaired loans not in the process of foreclosure for which there is no specific reserve to determine the quantitative reserve. The qualitative factors, including (i) policy underwriting, charge-off and collection, (ii) national and local economic conditions, (iii) nature and volume of the portfolio, (iv) experience, ability, and depth of lending team, (v) trends of past due, classified loans, and restructurings, (vi) quality of loan review and board oversight, (vii) existence, levels, and effect of loan concentrations and (viii) effects of external factors such as competition and regulatory oversight, are adjusted quarterly based on historical information for any quantifiable factors and qualitative judgments for subjective factors (those considered subjective are policy, underwriting, experience, ability and depth of lending team, quality of loan review and board oversight, and effects of external factors), and applied in total to each loan balance by loan type. The Company continues to enhance its modeling of the portfolio and underlying risk factors through quarterly analytical reviews with the goal of ensuring it captures all pertinent factors contributing to risk of loss inherent in the loan portfolio. Under ASC 310, the non-homogenous impaired loans, homogenous small balance real estate secured loans in process of foreclosure for which the value is less than the loan principal balance, and TDRs, are reviewed individually for impairment. The process of assessing the adequacy of the ALLL is inherently subjective. Further, and particularly in terms of economic downturns, it is reasonably possible that future credit losses may exceed historical loss levels and may also exceed management's current estimates of incurred credit losses inherent within the loan portfolio. As such, there can be no assurance that future loan charge-offs will not exceed management's current estimate of what constitutes a reasonable allowance for loan losses. The Company and the Bank are subject to periodic examination by their federal and state banking regulators, and may be required by their regulators to recognize additions to the allowance for loan losses based on their assessment of credit information available to them at the time of their examinations. As of December 31, 2015 and December 31, 2014, the ALLL was $3.4 million, which represented approximately 2.08% and 1.96% of loans outstanding, net of unearned income and deferred costs ("net loans outstanding"), on those respective dates. Loans decreased $10.2 million from December 31, 2014 to December 31, 2015, impaired loans decreased $3.8 million over the same period; however, the reserve allocated for impaired loans individually evaluated increased by $355 thousand over the same period. The large increase in reserve for impaired loans was primarily attributable to one borrower with two commercial real estate secured loans. As of December 31, 2015, the total loans collectively evaluated totaled $138.4 million compared to $144.8 million at December 31, 2014. The corresponding allowance for loans collectively reviewed for impairment totaled $2.8 million and $3.2 million at December 31, 2015 and December 31, 2014, respectively. Net charge-offs totaled $5 thousand and $103 thousand for the years ended December 31, 2015 and December 31, 2014, respectively. Of the non-accruing loans totaling $5.0 million at December 31, 2015, 0.30% are secured by faith-based non-profit real estate, 99.70% are secured by real estate excluding faith-based non-profit. Management believes loans secured by real estate lessen the risk of loss. TDRs in compliance with the modified terms totaled $21.6 million or 88.57% at December 31, 2015. GAAP does not provide specific guidance on when a loan may be returned to accrual status. Federal banking regulators have provided guidance that interest on impaired loans, including TDRs, should only be recorded when there has been a sustained period of repayment performance, the loan is well secured, and collection under any revised term is assessed as probable. The Company evaluates impaired and TDR performance under the banking guidelines and returns loans to accruing after a sustained period of repayment performance. Loans are generally placed on non-accrual status when the scheduled payments reach 90 days past due. Loans are charged-off, with Board of Director approval, when the Chief Credit Officer and his staff determine that all reasonable means of collection of the outstanding balances, except foreclosure, have been exhausted. The Company continues its collection efforts subsequent to charge-off, which historically has resulted in some recoveries each year. The composition of the loan portfolio, net of deferred fees and costs, by loan classification as of December 31, 2015 and 2014: (Dollars in thousands) December 31, 2015 December 31, 2014 Commercial $ 7,540 $ 7,253 Commercial real estate: Construction 9,618 2,557 Owner occupied 18,941 18,013 Other 15,481 19,493 Faith-based non-profit: Construction 4,800 6,156 Owner occupied 78,228 84,499 Other 2,427 4,707 Residential real estate: First mortgage 16,467 18,995 Multifamily 2,701 3,001 Home equity 3,249 4,124 Construction 122 506 Consumer 1,035 1,232 Other loans 4,240 4,552 Loans, net of deferred fees 164,849 175,088 ALLL (3,435 ) (3,440 ) Loans, net of ALLL $ 161,414 $ 171,648 The Bank has a concentration of loans to faith-based non-profit organizations, in which the Bank has specialized lending experience. At December 31, 2015, the percentage of loans in this segment, which included construction, owner occupied real estate secured, and other loans, comprised 51.84% of the total loan portfolio. The reserve allocated for these loans is 35.78% of the total ALLL. Historically the Bank has experienced low levels of loan losses in this segment; however, repayment of these loans is generally dependent on voluntary contributions, some of which have been adversely affected by the economic downturn. Management has identified its loan-related disclosure classifications in its financial reports to present portfolio segments. A portfolio segment is defined as the level at which an entity develops and documents a systematic methodology to determine its ALLL. The following tables present the reported investment in loans, net of deferred fees and costs, by portfolio segment and based on impairment method and related ALLL as of December 31, 2015 and December 31, 2014, respectively: December 31, 2015 Faith Based Commercial Non- Residential Other (Dollars in thousands) Commercial Real Estate Profit Real Estate Consumer Loans Unallocated Total ALLL: Ending ALLL balance Individually evaluated $ — $ 303 $ 261 $ 67 $ — $ — $ — $ 631 Collectively evaluated 329 536 968 343 21 229 378 2,804 Total ending ALLL $ 329 $ 839 $ 1,229 $ 410 $ 21 $ 229 $ 378 $ 3,435 Loans: Loans individually $ — $ 7,517 $ 16,325 $ 2,579 $ — $ — $ — $ 26,421 Loans collectively 7,540 36,523 69,130 19,960 1,035 4,240 — 138,428 Total ending loans $ 7,540 $ 44,040 $ 85,455 $ 22,539 $ 1,035 $ 4,240 $ — $ 164,849 December 31, 2014 Faith Based Commercial Non- Residential Other (Dollars in thousands) Commercial Real Estate Profit Real Estate Consumer Loans Unallocated Total ALLL: Ending ALLL balance Individually evaluated $ — $ 11 $ 6 $ 259 $ — $ — $ — $ 276 Collectively evaluated 353 568 1,228 426 28 265 296 3,164 Total ending ALLL $ 353 $ 579 $ 1,234 $ 685 $ 28 $ 265 $ 296 $ 3,440 Loans: Loans individually $ — $ 9,012 $ 16,807 $ 4,450 $ — $ — $ — $ 30,269 Loans collectively 7,253 31,051 78,555 22,176 1,232 4,552 — 144,819 Total ending loans $ 7,253 $ 40,063 $ 95,362 $ 26,626 $ 1,232 $ 4,552 $ — $ 175,088 For the Year Ended December 31, 2015 Faith- Based Residential Commercial Non- Real Other (Dollars in thousands) Commercial Real Estate Profit Estate Consumer Loans Unallocated Total ALLL: Total ending ALLL $ 353 $ 579 $ 1,234 $ 685 $ 28 $ 265 $ 296 $ 3,440 For the year ended December 31, 2015 Charge-offs (3 ) — — (7 ) (2 ) (18 ) — (30 ) Recoveries — — — 20 1 4 — 25 Provision for loan losses (21 ) 260 (5 ) (288 ) (6 ) (22 ) 82 — Total ending ALLL $ 329 $ 839 $ 1,229 $ 410 $ 21 $ 229 $ 378 $ 3,435 For the Year Ended December 31, 2014 Faith- Based Residential Commercial Non- Real Other (Dollars in thousands) Commercial Real Estate Profit Estate Consumer Loans Unallocated Total ALLL: Total ending ALLL $ 184 $ 808 $ 1,883 $ 493 $ 19 $ 106 $ — $ 3,493 For the year ended December 31, 2014 Charge-offs — — — (78 ) (35 ) (21 ) — (134 ) Recoveries — — — 22 1 8 — 31 Provision for loan losses 169 (229 ) (649 ) 248 43 172 296 50 Total ending ALLL $ 353 $ 579 $ 1,234 $ 685 $ 28 $ 265 $ 296 $ 3,440 The following tables show impaired loans with and without valuation allowances as of December 31, 2015 and 2014: December 31, 2015 Interest Unpaid Earned Average Principal Recorded ALLL For the Recorded (Dollars in thousands) Balance Investment Allocated Year Investment With no related allowance recorded: Commercial $ — $ — $ — $ — $ — Commercial real estate: Construction — — — — 137 Owner occupied 68 68 — 7 59 Other 2,813 2,815 — 85 3,685 Faith based non-profit: Construction — — — — — Owner occupied 5,413 5,426 — 230 5,197 Other — — — — — Residential real estate: First mortgage 1,926 1,898 — 24 2,211 Multifamily — — — — — Home equity 338 338 — 10 140 Construction — — — — — Consumer — — — — 1 Impaired loans with no allowance recorded $ 10,558 $ 10,545 $ — $ 356 $ 11,430 With an allowance recorded: Commercial $ — $ — $ — $ — $ 1 Commercial real estate: Construction — — — — 172 Owner occupied 4,637 4,677 303 190 4,712 Other — — — — 18 Faith based non-profit: Construction — — — — — Owner occupied 10,912 10,983 261 567 11,583 Other — — — — — Residential real estate: First mortgage 343 343 67 2 775 Multifamily — — — — — Home equity — — — — 39 Construction — — — — — Consumer — — — — — Impaired loans with allowance recorded $ 15,892 $ 16,003 $ 631 $ 759 $ 17,300 Total impaired loans $ 26,450 $ 26,548 $ 631 $ 1,115 $ 28,730 December 31, 2014 Interest Unpaid Earned Average Principal Recorded ALLL For the Recorded (Dollars in thousands) Balance Investment Allocated Year Investment With no related allowance recorded: Commercial $ — $ — $ — $ — $ — Commercial real estate: Construction 77 78 — 6 186 Owner occupied 42 42 — 16 2,818 Other 3,855 3,872 — 100 3,017 Faith based non-profit: Construction — — — — — Owner occupied 9,744 9,764 — 558 9,937 Other — — — — 40 Residential real estate: First mortgage 2,894 2,881 — 172 2,717 Multifamily — — — — — Home equity 20 20 — 2 70 Construction — — — — — Consumer — — — — 8 Impaired loans with no allowance recorded $ 16,632 $ 16,657 $ — $ 854 $ 18,793 With an allowance recorded: Commercial $ — $ — $ — $ — $ — Commercial real estate: Construction 278 279 1 23 176 Owner occupied 4,760 4,800 10 200 1,164 Other — — — — 1,714 Faith based non-profit: Construction — — — — — Owner occupied 7,063 7,361 6 327 6,801 Other — — — — — Residential real estate: First mortgage 1,426 1,427 242 76 644 Multifamily — — — — — Home equity 145 145 17 6 112 Construction — — — — — Consumer — — — — — Impaired loans with allowance recorded $ 13,672 $ 14,012 $ 276 $ 632 $ 10,611 Total impaired loans $ 30,304 $ 30,669 $ 276 $ 1,486 $ 29,404 The recorded investment in loan balance is net of deferred fees and costs, and partial charge-offs, where applicable. The Bank modifies certain loans and provides a concession such as a reduced rate, extended terms, or reduction of principal and/or interest, in a TDR where the borrowers are experiencing financial difficulties. These concessions typically result from loss mitigation recommendations developed by the Bank's problem loan team. Concessions could include reductions in below market interest rates, payment extensions, forbearance or other actions. TDRs are generally classified as nonperforming at the time of restructuring and may only be returned to performing status after considering the borrower's sustained repayment performance for a reasonable period, generally six months. When loans are modified as TDRs, the Bank evaluates each loan for any possible impairment based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan agreement, except when the repayment source is expected to be the liquidation of underlying collateral, in which cases the Bank uses the fair value of the collateral, less selling costs, instead of discounted cash flows. If the Bank determines that the value of the modified loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through an allowance allocation or a charge-off to the allowance. The Bank completed three TDR modifications within the year ended December 31, 2015. All of the TDRs were secured by first mortgage residential real estate. Of the three loans restructured during the year ended December 31, 2015, one loan totaling $66 thousand was not in compliance with the restructured terms. There were no new TDR modifications during 2014. Based upon financial analysis and the fair value of collateral, the Bank allocated $0.6 million and $0.9 million of specific reserves for TDRs at December 31, 2015 and 2014, respectively. The following table presents details of TDR loans that were restructured during the year ended December 31, 2015: TDR Modifications For the Year Ended December 31, 2015 Pre-modification Outstanding Post-modification Outstanding (Dollars in thousands) Number of loans Recorded Investment Recorded Investment Below market interest rates: Residential real estate: First mortgage 2 $ 129 $ 125 Extended payment terms: Residential real estate: First mortgage 1 129 127 Total 3 $ 258 $ 252 The following table presents loans modified as TDRs with a payment default occurring within 12 months of the restructure date, during the years ended December 31, 2015 and 2014: During the Years Ended December 31, 2015 December 31, 2014 Default Default Number of Recorded Number of Recorded (Dollars in thousands) Loans Investment Loans Investment Below market interest rate and extended payment terms — $ — — $ — Below market interest rate 1 66 — — Extended payment terms — — — — Total 1 $ 66 — $ — The following tables present the recorded investment in non-accrual and loans past due over 90 days still on accrual by class of loans as of December 31, 2015 and 2014: 90 Days or More Past Due December 31, 2105 Still (Dollars in thousands) Non-accrual Number Accruing Number Commercial $ — — $ — — Commercial real estate: Construction — — — — Owner occupied — — — — Other 2,513 2 — — Faith-based non-profit: Construction — — — — Owner occupied 15 1 356 3 Other — — — — Residential real estate: First mortgage 2,154 36 — — Multifamily — — — — Home equity 338 5 — — Construction — — — — Consumer — — — — Other loans — — — — Total $ 5,020 44 $ 356 3 90 Days or More Past Due December 31, 2014 Still (Dollars in thousands) Non-accrual Number Accruing Number Commercial $ — — $ — — Commercial real estate: Construction — — — — Owner occupied 42 1 — — Other 2,860 3 771 1 Faith-based non-profit: Construction — — — — Owner occupied 133 2 541 2 Other — — 15 1 Residential real estate: First mortgage 2,720 33 1,696 8 Multifamily — — — — Home equity 165 7 — — Construction — — — — Consumer — — — 1 Other loans — — — — Total $ 5,920 46 $ 3,023 13 Non-accrual loans and loans past due over 90 days still on accrual include both smaller balance homogenous loans that are collectively evaluated for impairment and individually classified impaired loans. Loans from which principal or interest is in default for 90 days or more are classified as a non-accrual unless they are well secured and in process of collection. Loans past due over 90 days still accruing were matured loans that were well secured and in process of collection. Borrowers have continued to make payments on these loans while administrative and legal due processes are proceeding which will enable the Bank to extend or modify maturity dates. Unrecognized income on non-accrual loans as of December 31, 2015 and December 31, 2014 was $0.1 million and $0.3 million, respectively, representing a decrease of $0.2 million in the most recent year. The following tables present loans not past due, and the aging of past due loans as of December 31, 2015 and 2014 by class of loans: 90 Days December 31, 2015 30-59 Days 60-89 Days Or More Total Past (Dollars in thousands) Past Due Past Due Past Due Due Current Total Commercial $ — $ — $ — $ — $ 7,540 $ 7,540 Commercial real estate: Construction 40 — — 40 9,578 9,618 Owner occupied 397 — — 397 18,544 18,941 Other — 71 — 71 15,410 15,481 Faith-based non-profit: Construction — — — — 4,800 4,800 Owner occupied 237 — 355 592 77,636 78,228 Other — — — — 2,427 2,427 Residential real estate: First mortgage 688 161 1,377 2,226 14,241 16,467 Multifamily 17 — — 17 2,684 2,701 Home equity 129 — 206 335 2,914 3,249 Construction 122 — — 122 — 122 Consumer — — — — 1,035 1,035 Other loans 3 — — 3 4,237 4,240 Total $ 1,633 $ 232 $ 1,938 $ 3,803 $ 161,046 $ 164,849 90 Days December 31, 2014 30-59 Days 60-89 Days Or More Total Past (Dollars in thousands) Past Due Past Due Past Due Due Current Total Commercial $ 3 $ — $ — $ 3 $ 7,250 $ 7,253 Commercial real estate: Construction — — — — 2,557 2,557 Owner occupied 69 321 42 432 17,581 18,013 Other 25 1,188 3,602 4,815 14,678 19,493 Faith-based non-profit: Construction — — — — 6,156 6,156 Owner occupied 1,923 435 674 3,032 81,467 84,499 Other — — 15 15 4,692 4,707 Residential real estate: First mortgage 745 103 3,322 4,170 14,825 18,995 Multifamily — — — — 3,001 3,001 Home equity 47 — 23 70 4,054 4,124 Construction — — — — 506 506 Consumer 11 — — 11 1,221 1,232 Other loans — 8 — 8 4,544 4,552 Total $ 2,823 $ 2,055 $ 7,678 $ 12,556 $ 162,532 $ 175,088 Non-accrual loans decreased $0.9 million as of December 31, 2015 compared to December 31, 2014, while total loans past due decreased by $8.8 million over the same period. Not reflected in the table above are non-accrual loans past due less than 30 days. As shown in the following tables at December 31, 2015 and 2014, respectively, the Company had $3.1 million and $0.7 million in non-accrual loans that were less than 30 days past due. The following table displays all non-accrual loans and loans 90 or more days past due and still on accrual for the period ended December 31, 2015. (Dollars in thousands) Amount Number Loans past due over 90 days still on accrual $ 356 3 Non-accrual loans past due Less than 30 days $ 3,082 11 30-59 days 195 3 60-89 days 161 3 90+ days 1,582 27 Non-accrual loans $ 5,020 44 The following table displays all non-accrual loans and loans 90 or more days past due and still on accrual for the period ended December 31, 2014. (Dollars in thousands) Amount Number Loans past due over 90 days still on accrual $ 3,023 46 Non-accrual loans past due Less than 30 days $ 721 11 30-59 days 485 6 60-89 days 59 1 90+ days 4,655 28 Non-accrual loans $ 5,920 46 The Company experienced $5 thousand in net loan charge-offs for the year ended December 31, 2015 compared to $0.1 million in net charge-offs for the year ended December 31, 2014. Net charge-offs totaled 0.00% and 0.06% of average loans outstanding for the years ended December 31, 2015 and 2014, respectively. The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans for reserves according to the loan's classification as to credit risk. This analysis includes homogenous loans, such as commercial, commercial real estate and faith based non–profit entities, and mortgage loans in process of foreclosure for which the loan to value does not support repayment in full. This analysis is performed on at least a quarterly basis. The Company uses the following definitions for risk ratings: • Special Mention. Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution's credit position at some future date. These loans exhibit a moderate likelihood of some loss related to those loans and leases that are considered special mention. • Substandard. Loans classified as substandard are inadequately protected by the current sound financial repayment capacity and service coverage of the debtor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that may jeopardize the liquidation of or repayment according to the original terms of the debt. In addition to commercial and faith-based non-profit loans with identified weaknesses, substandard loans include loans within the mortgage and consumer portfolio segments that are past due 90 days or more as to principal or interest if the loan to value does not support full repayment. Substandard loans are evaluated for impairment on an individual loan basis unless the substandard loan is a smaller balance homogenous loan that is not a TDR and is not in the process of foreclosure. These loan exhibits a distinct possibility that the company will sustain some loss if the deficiencies related to the loans is not corrected in a timely manner. • Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added character that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. • Pass. Loans are classified as pass in all classes within the commercial, faith-based non-profit, mortgage, consumer, and other portfolio segments that are not identified as special mention, substandard, or doubtful, are contractually current as to principal and interest, and are otherwise in compliance with the contractual terms of the loan agreement. These loans exhibit a low likelihood of loss related to loans that are considered pass. As of December 31, 2015, and based on the most recent analysis performed, the risk category of loans by class of loans was as follows: December 31, 2015 (Dollars in thousands) Pass Special Mention Substandard Doubtful Total Commercial $ 1,869 $ — $ 5,671 $ — $ 7,540 Commercial real estate: Construction 9,618 — — — 9,618 Owner occupied 18,601 272 68 — 18,941 Other 11,720 394 3,367 — 15,481 Faith-based non-profit: Construction 4,800 — — — 4,800 Owner occupied 61,836 7,243 9,149 — 78,228 Other 2,427 — — — 2,427 Residential real estate: First mortgage 13,733 256 2,478 — 16,467 Multifamily 2,613 30 58 — 2,701 Home equity 3,070 — 179 — 3,249 Construction 122 — — — 122 Consumer 1,020 10 5 — 1,035 Other loans 4,240 — — — 4,240 Total $ 135,669 $ 8,205 $ 20,975 $ — $ 164,849 As of December 31, 2014, the risk category of loans by class of loans was as follows: December 31, 2014 (Dollars in thousands) Pass Special Mention Substandard Doubtful Total Commercial $ 1,279 $ 3,159 $ 2,815 $ — $ 7,253 Commercial real estate: Construction 2,202 — 355 — 2,557 Owner occupied 17,596 306 111 — 18,013 Other 14,263 457 4,773 — 19,493 Faith-based non-profit: Construction 6,156 — — — 6,156 Owner occupied 68,963 6,160 9,376 — 84,499 Other 4,707 — — — 4,707 Residential real estate: First mortgage 14,328 88 4,579 — 18,995 Multifamily 2,910 31 60 — 3,001 Home equity 3,910 — 214 — 4,124 Construction 506 — — — 506 Consumer 1,213 14 5 — 1,232 Other loans 4,552 — — — 4,552 Total $ 142,585 $ 10,215 $ 22,288 $ — $ 175,088 |
BANK PREMISES AND EQUIPMENT
BANK PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2015 | |
BANK PREMISES AND EQUIPMENT [Abstract] | |
BANK PREMISES AND EQUIPMENT | 7. BANK PREMISES AND EQUIPMENT The following is a summary of bank premises and equipment, net as of December 31, 2015 and 2014: (Dollars in thousands) December 31, 2015 December 31, 2014 Land $ 747 $ 747 Buildings and leasehold improvements 7,411 7,263 Furniture and equipment 2,652 2,565 Capital lease 597 315 Construction in progress 22 — 11,429 10,890 Less: accumulated depreciation and amortization 7,017 6,597 $ 4,412 $ 4,293 Total depreciation expense was $ 0.4 |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2015 | |
DEPOSITS [Abstract] | |
DEPOSITS | 8. DEPOSITS Deposits are the Bank's primary source of funds for making loans and purchasing investments. The Bank offers a variety of deposit account products to commercial and consumer customers. The total deposits that were re-classified to loans due to overdrafts were $19 thousand and $46 thousand at December 31, 2015 and 2014, respectively. The following shows the maturity schedule of all time deposits: (Dollars in thousands) Amount 2016 $ 119,454 2017 5,235 2018 8,183 2019 193 2020 320 Total $ 133,385 Principal maturities of time deposits of $250,000 or more as of December 31, 2015 and 2014 were as follows: December 31, 2015 December 31, 2014 (Dollars in thousands) Amount Average Rate Amount Average Rate Three months or less $ 3,259 0.38 % $ 5,132 0.35 % Over three months to six months 513 0.10 1,238 0.31 Over six months to twelve months 5,229 0.38 6,382 0.55 Over one year to five years 8,718 0.96 1,509 0.69 Total $ 17,719 0.66 % $ 14,261 0.47 % For the years ended December 31, 2015 and 2014, the Bank had $ 83 65 In the normal course of business, certain directors and executives of the Company and the Bank, including their immediate families and companies in which they have an interest, are deposit customers. These relationships had aggregate deposits of $ 1.1 1.2 The Bank had three deposit relationships for the year ended December 31, 2015 and 2014 with balances in excess of five percent of total deposits totaling $ 55.0 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2015 | |
LEASES [Abstract] | |
LEASES | 9. LEASES The Bank leases premises and equipment under various operating lease agreements that provide for the payment of property taxes, insurance and maintenance costs. The following are future minimum capital lease payments as required under the agreements as of December 31, 2015: (Dollars in thousands) 2016 $ 110 2017 57 2018 56 2019 53 2020 28 Thereafter — Total $ 304 The capital leases had an average interest rate of 1.83 interest 5 The following are future minimum operating lease payments as required under the agreements: (Dollars in thousands) Amount 2016 $ 47 2017 7 Total $ 54 Rent expense for all operating leases amounted to approximately $ 0.1 The Bank leases out office space in some of its vacant office space in its headquarters and branches. The following are the minimum rentals to be received under related lease agreements: (Dollars in thousands) Amount 2016 $ 222 2017 152 2018 60 2019 62 2020 48 Total $ 544 Rental income for the years ended December 31, 2015 and 2014 was $ 0.2 |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2015 | |
BORROWINGS [Abstract] | |
BORROWINGS | 10. BORROWINGS Borrowings as of December 31, 2015 consisted of an FHLB borrowing of $ 0.6 0.50 0.3 1.83 3 6.1 6.7 7.3 The Company has federal funds lines of credit with three correspondent banks totaling $ 10.0 The following is the outstanding principal maturities and interest rate of the Company's FHLB advances as of December 31, 2014: December 31, 2015 Maturity Date Amount Rate (Dollars in thousands) 2016 $ 24 0.50 % 2017 25 0.50 % 2018 26 0.50 % 2019 27 0.50 % Thereafter 532 0.50 % $ 634 0.50 % |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2015 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | 11. INCOME TAXES The components of the income tax expense (benefit) for the years ended December 31, 2015 and 2014 were as follows: (Dollars in thousands) 2015 2014 Income tax expense (benefit) Current $ (14 ) $ 380 Deferred 90 172 Total $ 76 $ 552 A reconciliation of reported income tax expense for the years ended December 31, 2015 and 2014 to the amount of tax expense computed by multiplying income before income taxes by the statutory federal income tax rate follows: (Dollars in thousands) 2015 2014 Statutory federal income tax rate 34 % 34 % Tax provision at statutory rate $ 144 $ 543 Increase (decrease) in income taxes resulting from: State income taxes net of federal benefit 70 124 Tax exempt interest income (34 ) (8 ) Disallowed interest expense 1 — Increase in deferred tax valuation allowance (26 ) (22 ) Cash surrender value of life insurance (80 ) (69 ) Other 1 (16 ) Total $ 76 $ 552 The tax effect of the cumulative temporary differences and carry forwards that gave rise to the deferred tax assets and liabilities as of December 31, 2015 and December 31, 2014 within the Consolidated Balance Sheets were as follows: (Dollars in thousands) December 31, 2015 2014 Deferred tax assets: Accrued pension expense $ 225 $ 282 Adjustments, defined benefit plans 1,032 982 Deferred loan fees 55 171 Excess book over tax provision for loan loss expense 1,262 1,296 Federal net operating loss carryforward 127 127 State net economic loss carryforward 143 170 Impairment on investments 72 72 OREO write-downs 372 307 Deferred gain on other real estate owned 4 4 Premises and equipment 93 123 Alternative minimum tax 511 485 Unrealized losses on securities available for sale, net 203 11 Other, net 96 77 Total deferred tax assets 4,195 4,107 Valuation allowance for deferred tax assets (174 ) (200 ) Net of valuation allowance deferred tax asset 4,021 3,907 Deferred tax liabilities: Other (109 ) (147 ) Total deferred tax liabilities (109 ) (147 ) Net deferred tax assets 3,912 3,760 Tax Receivable, net 352 354 Deferred tax assets and taxes receivable, net $ 4,264 $ 4,114 The Company has federal net operating loss carry-forwards of approximately $ 0.4 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2015 | |
EMPLOYEE BENEFIT PLANS [Abstract] | |
EMPLOYEE BENEFIT PLANS | 12. EMPLOYEE BENEFIT PLANS The Bank sponsors a noncontributory defined benefit cash balance pension plan (the “Cash Balance Plan”), covering all employees who qualify under length of service and other requirements. Under the Cash Balance Plan, retirement benefits are based on years of service and average earnings. The Bank's funding policy is to contribute amounts to the Cash Balance Plan sufficient to meet the minimum funding requirements set forth in the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), plus such additional amounts as the Bank may determine to be appropriate. The contributions to the Cash Balance Plan paid during the years ended December 31, 2015 and 2014 totaled $ 0.4 It is expected that the Company will contribute $ 0.4 The following table shows the type of assets held in the Cash Balance Plan: As of December 31, Asset Category 2015 2014 Equity securities 63.6 % 63.8 % Debt securities 33.4 % 35.0 % All other assets 3.0 % 1.2 % Total 100.0 % 100.0 % The Bank sponsors a nonqualified Supplemental Executive Retirement Plan (“SERP”). The SERP, which is unfunded, provides certain individuals with pension benefits, outside the Bank's noncontributory defined-benefit Cash Balance Plan, based on average earnings, years of service and age at retirement. Participation in the SERP is at the discretion of the Bank's Board of Directors. The Company and Bank purchased bank owned life insurance (“BOLI”) in 2002 in the aggregate amount of approximately $ 12.9 0.5 1.5 0.3 1.5 8.2 7.7 201 Since there are not assets in the plan, contributions are equal to the benefits paid. It is expected that $ 0.2 The SERP and the Cash Balance Plan components of the net periodic benefit cost reflected in salaries and employee benefits expense for the years ended December 31, 2015 and December 31, 2014 were: Cash Balance Plan SERP Total (Dollars in thousands) 2015 2014 2015 2014 2015 2014 Service costs $ 172 $ 156 $ — $ — $ 172 $ 156 Interest cost 210 236 71 80 281 316 Expected return on Plan assets (365 ) (349 ) — — (365 ) (349 ) Amortization of prior service cost and recognized net actuarial gain 331 87 20 5 351 92 Net periodic pension cost $ 348 $ 130 $ 91 $ 85 $ 439 $ 215 The following table shows the change in the projected benefit obligations and plan assets for the years ended December 31, 2015 and 2014: Cash Balance Plan SERP Total (Dollars in thousands) 2015 2014 2015 2014 2015 2014 Change in projected benefit obligations: Benefit obligation at beginning of year $ 6,432 $ 5,637 $ 2,111 $ 1,955 $ 8,543 $ 7,592 Service cost 172 156 — — 172 156 Interest cost 210 236 71 80 281 316 Actuarial gain 29 746 101 230 130 976 Benefits and expenses paid (701 ) (343 ) (154 ) (154 ) (855 ) (497 ) Benefit obligation at end of year 6,142 6,432 2,129 2,111 8,271 8,543 Change in plan assets: Fair value of plan assets at beginning of year 5,484 5,233 — — 5,484 5,233 Actual return on plan assets (39 ) 244 — — (39 ) 244 Employer contributions 350 350 154 154 504 504 Benefits and expenses paid (701 ) (343 ) (154 ) (154 ) (855 ) (497 ) Fair value of plan assets at year end 5,094 5,484 — — 5,094 5,484 Underfunded status $ (1,048 ) $ (948 ) $ (2,129 ) $ (2,111 ) $ (3,177 ) $ (3,059 ) The Bank had a liability for the Cash Balance Plan of $1.0 million and $0.9 million for the periods ended December 31, 2015 and 2014, respectively. The liability is included in Other Liabilities within the Consolidated Balance Sheets. The accrued liability and accumulated benefits obligations for the SERP was $2.1 million for each of the periods ended December 31, 2015 and 2014. The balance is included in Other Liabilities within the Consolidated Balance Sheets. The amounts in accumulated other comprehensive loss that have not been recognized as components of net periodic pension cost were: Cash Balance Plan SERP Total (Dollars in thousands) 2015 2014 2015 2014 2015 2014 Unrecognized net actuarial loss $ 2,229 $ 2,126 $ 587 $ 506 $ 2,816 $ 2,632 Unrecognized prior service cost — — — — — — Total amount included in accumulated other comprehensive loss $ 2,229 $ 2,126 $ 587 $ 506 $ 2,816 $ 2,632 Weighted average assumptions as of December 31: Discount rate 3.75 % 3.50 % 3.75 % 3.50 % Expected return on plan assets 7.00 % 7.00 % n/a n/a Rate of compensation increase 3.00 % 3.00 % 3.00 % 3.00 % Amounts in accumulated other comprehensive loss expected to be recognized in net periodic costs in 2016: Amounts in accumulated other comprehensive loss expected to be recognized in net periodic pension cost in 2016: (Dollars in Thousands) Cash Balance Plan SERP Total Net actuarial loss $ 175 $ 25 $ 200 Prior service cost — — — Total expected to be recognized $ 175 $ 25 $ 200 Assets expected to be returned to the Company in 2016 $ — $ — $ — The estimated expected benefits payments for the Cash Balance Plan and SERP are: (Dollars in thousands) For the Years Ending December 31: Cash Balance Plan SERP TOTAL 2016 654 154 808 2017 436 152 588 2018 452 150 602 2019 466 148 614 2020 402 146 548 2021-2025 2,053 688 2,741 Total $ 4,463 $ 1,438 $ 5,901 Retirement Plan Assets Prohibited investments include commodities and futures contracts, private placements, options, transactions which would result in unrelated business taxable income, and other investments prohibited by Employee Retirement Income Security Act. The target range of allocation percentages for each major category of plan assets was: Asset Category Target Weight Minimum Weight Maximum Weight Cash 0 % 0 % 10 % Equities: US 66 % 56 % 76 % Non-US 7 % 0 % 14 % Fixed Income 27 % 20 % 37 % Equity investments must be listed on the New York, American, World, or other similar stock exchanges traded in the over-the-counter market with the requirement that such stocks have adequate liquidity relative to the size of the investment. Fixed income investments must have a credit rating of B or better from Standard and Poor's or Moody's. The fixed income portfolio should be constructed so as to have an average maturity not exceeding 10 years. No more than 5% of the fixed income portfolio should be invested in any one issuer. U.S. Treasury and Agency securities are exempt from this restriction. Cash and equivalent instruments that are acceptable are repurchase agreements, bankers' acceptances, U.S. treasury bills, money market funds, and certificates of deposit. The portfolio shall be structured to meet financial objectives over a period of 11 or more years. Over that time horizon, the total rate of return should equal at least 103 • U.S. Large Cap Equities: S&P 500, Russell 1000, Russell 1000 Value, and Russell 1000 Growth • U.S. Mid Cap Equities: S&P 400 Mid Cap, Russell Mid Cap Value, and Russell Mid Cap Growth • U.S. Small Cap Equities: S&P 600 Small Cap, Russell 2000 Value, and Russell 2000 Growth • Non-U.S. Equities: MSCI EAFE IL • Fixed Income: Lehman Brothers Intermediate Government/Corporate • Cash: U.S. 3-Month Treasury Bill 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 were: December 31, 2015 Level 1 Level 2 Level 3 (Dollars in thousands) Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Asset Category Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Cash $ 150 $ — $ — Equity Security: Large-Cap 106 1,333 — Mid-Cap 373 463 — Small-Cap 100 457 — Global and International 7 404 — Emerging Market — — — Fixed Income – Bonds 573 480 — Other — 648 — Total $ 1,309 $ 3,785 $ — December 31, 2014 Level 1 Level 2 Level 3 Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Asset Category Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Cash $ 66 $ — $ — Equity Security: Large-Cap 19 1,610 — Mid-Cap 469 500 — Small-Cap 509 — — Global and International 21 371 — Emerging Market — — — Fixed Income – Bonds 636 578 — Other — 705 — Total $ 1,720 $ 3,764 $ — 401(k ) Plan 12 6 0.2 Deferred Compensation Plan 0.1 0.2 Post-retirement Benefits 0.2 Split Dollar Benefits 0.2 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2015 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
RELATED PARTY TRANSACTIONS | 13. RELATED PARTY TRANSACTIONS In the ordinary course of business, certain of the Company's and Bank's directors and executive officers, including immediate family members and companies in which they have an interest, are loan customers. Those transactions do not involve more than the normal risk of collection nor do they present any unfavorable features. Total loans to such groups totaled $1.9 million as of December 31, 2015 and 2014. Unused lines available to be drawn were $ 0.3 (Dollars in thousands) December 31, 2015 December 31, 2014 Beginning Balance $ 1,944 $ 1,994 Draws/Advances 132 229 Repayments (212 ) (279 ) Ending Balance $ 1,864 $ 1,944 |
REGULATORY MATTERS AND RESTRICT
REGULATORY MATTERS AND RESTRICTIONS | 12 Months Ended |
Dec. 31, 2015 | |
REGULATORY MATTERS AND RESTRICTIONS [Abstract] | |
REGULATORY MATTERS AND RESTRICTIONS | 14. REGULATORY MATTERS AND RESTRICTIONS On August 7, 2015, the Bank entered into a new memorandum of understanding with the Federal Deposit Insurance Corporation and the Office of the North Carolina On August 20, 2010, the Company issued 11,735 shares of $1,000 liquidation value, Series B Fixed Rate Cumulative Perpetual Preferred Stock, (“Series B Preferred Stock”), under the Community Development Capital Initiative (“CDCI”), part of the United States Department of the Treasury (the “Treasury”) Troubled Asset Relief Program (“TARP”). Participation in the CDCI places restrictions on the Company's ability to declare or pay dividends or distributions on, or purchase, redeem or otherwise acquire for consideration, shares of its capital stock, including restrictions against the Company (i) increasing dividends payable on its common stock from the last quarterly cash dividend per share declared on the common stock prior to November 17, 2008; (ii) increasing its aggregate per share dividends and distributions above the aggregate dividends and distributions paid for the immediately prior fiscal year; and (iii) declaring or paying dividends or distributions on, or repurchasing, redeeming or otherwise acquiring for consideration, shares of its capital stock in the event that the Company fails to declare and pay full dividends (or declare and set aside a sum sufficient for payment thereof) on the Series B Preferred Stock. During 2015, the Company did not declare any dividends to its common stockholders. As a consequence of these restrictions, the Company may not pay further dividends to its common stockholders. These restrictions will continue until all of the Series B Preferred Stock has been redeemed in full. The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements may initiate certain mandatory and the possibility of additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company and the Bank's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of total, Tier 1 and common equity Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and Tier 1 capital (as defined) to average assets (as defined). Management believes, as of December 31, 2015 and December 31, 2014, that the Company and the Bank met all capital adequacy requirements to which they are subject. To be categorized as well capitalized, the Bank must maintain minimum common equity Tier 1, total risk-based, Tier 1 risk-based and Tier 1 leveraged ratios as set forth in the table below. Bank's 8.0 For Capital Adequacy To Be Well (Dollars in thousands) Actual Purposes Capitalized Amount Ratio Amount Ratio Amount Ratio Total capital (to risk weighted assets) Company $ 40,252 20.39 % $ 15,790 8.00 % n/a n/a Bank 39,629 20.10 15,769 8.00 $ 19,712 10.00 % Tier 1 (to risk weighted assets) Company $ 37,768 19.13 % $ 11,843 6.00 % n/a n/a Bank 37,149 18.85 11,827 6.00 $ 15,769 8.00 % Common (to risk weighted assets) Company $ 26,391 13.37 % $ 8,882 4.50 % n/a n/a Bank 37,149 18.85 8,870 4.50 $ 12,812 6.50 % Tier 1 (to average total assets) Company $ 37,768 12.55 % $ 12,037 4.00 % n/a n/a Bank 37,149 12.35 12,028 4.00 $ 15,035 5.00 % December 31, 2014 For Capital Adequacy To Be Well (Dollars in thousands) Actual Purposes Capitalized Amount Ratio Amount Ratio Amount Ratio Total capital (to risk weighted assets) Company $ 38,101 19.03 % $ 16,014 8.00 % n/a n/a Bank 36,991 18.50 15,997 8.00 $ 19,996 10.00 % Tier 1 (to risk weighted assets) Company $ 35,587 17.78 % $ 8,007 4.00 % n/a n/a Bank 34,479 17.24 7,999 4.00 $ 11,998 6.00 % Tier 1 (to average total assets) Company $ 35,587 11.90 % $ 11,959 4.00 % n/a n/a Bank 34,479 11.54 11,953 4.00 $ 14,941 5.00 % |
HOLDING COMPANY CONDENSED FINAN
HOLDING COMPANY CONDENSED FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2015 | |
HOLDING COMPANY CONDENSED FINANCIAL INFORMATION [Abstract] | |
HOLDING COMPANY CONDENSED FINANCIAL INFORMATION | 15. HOLDING COMPANY CONDENSED FINANCIAL INFORMATION The condensed financial data for the Company (holding company only) was: Condensed Balance Sheets: December 31, ( Dollars in thousands) 2015 2014 Assets: Cash and cash equivelents $ 224 $ 605 Investment in subsidiary Bank 35,603 35,528 Other assets 435 486 Total Assets $ 36,262 $ 36,619 Liabilities and Stockholders' Equity: Total liabilities $ 38 $ 41 Stockholders' equity 36,224 36,578 Total Liabilities and Stockholders' Equity $ 36,262 $ 36,619 For the Years Ended December 31, Condensed Statements of Operations: 2015 2014 ( Dollars in thousands) Undistributed net earnings of subsidiary bank $ 541 $ 1,290 Expenses, net (194 ) (243 ) Net Income $ 347 $ 1,047 Condensed Cash Flows: ( Dollars in thousands) For the Years Ended December 31, 2015 2014 Cash Flows from operating activities: Net income $ 347 $ 1,047 Adjustments to reconcile net income to net cash used in operating activities: Undistributed net earnings of subsidiary (541 ) (1,290 ) (Increase) decrease in other assets 51 (43 ) Decrease in other liabilities (3 ) (1 ) Net cash used in operating activities (146 ) (287 ) Investing Activities: Dividends from subsidiary — 325 Net cash provided by investing activities — 325 Financing activities: Dividends paid (235 ) (363 ) Net cash used in financing activities (235 ) (363 ) Net decrease in cash and cash equivalents (381 ) (325 ) Cash and cash equivalents at beginning of year 605 930 Cash and cash equivalents at end of year $ 224 $ 605 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2015 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 16. COMMITMENTS AND CONTINGENCIES The Bank is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, and standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest rate risk beyond the amount recognized on the Consolidated Balance Sheets. The contractual amounts of those instruments reflect the extent of involvement the Bank has in particular classes of financial instruments. The Bank's exposure to credit losses in the event of non -performance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Bank utilizes the same credit policies in making commitments and conditional obligations as it does for balance sheet instruments. Commitments to extend credit are agreements to lend to a customer as long as there is not a violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer's credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank, upon extension of credit is based on management's credit evaluation of the counter parties. Collateral varies and may include real estate, accounts receivable, inventory, property, plant and equipment, and income-producing commercial properties. Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. To the extent deemed necessary, collateral of varying types and amounts is held to secure customer performance under certain of those letters of credit outstanding. Financial instruments whose contract amounts represent credit risk as of December 31, 2015 and December 31, 2014, respectively, are commitments to extend credit (including availability of lines of credit), and standby letters of credit. Loan commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The Bank evaluates each customer's credit worthiness on a case-by-case basis. The amount of collateral deemed necessary by the Bank is based on management's credit evaluation and underwriting guidelines for the particular loan. The Bank records a reserve for credit commitments that is adjusted through Other liabilities and Other expense in the Consolidated Balance Sheets and Consolidated Statements of Income, respectively Commitments outstanding at December 31, 2015 are summarized in the following table: (Dollars in thousands) Commercial letters of credit Other loan commitments Total commitments Less than one year $ 19 $ 12,375 $ 12,394 One to three years 250 5,487 5,737 Three to five years — 114 114 More than five years 93 4,455 4,548 Total $ 362 $ 22,431 $ 22,793 |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2015 | |
FAIR VALUE MEASUREMENT [Abstract] | |
FAIR VALUE MEASUREMENT | 17. FAIR VALUE MEASUREMENT Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Fair value should be based on the assumptions market participants would use when pricing an asset or liability and establishes a fair value hierarchy that prioritizes the information used to develop those assumptions. The fair value hierarchy gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data. Fair value measurements are required to be separately disclosed by level within the fair value hierarchy. The Company bases fair values on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. For assets and liabilities recorded at fair value, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when developing fair value measurements, in accordance with the fair value hierarchy. Fair value measurements for assets and liabilities where there exists limited or no observable market data and, therefore, are based primarily upon estimates, are often calculated based on the economic and competitive environment, the characteristics of the asset or liability and other factors. Therefore, the results cannot be determined with precision and may not be realized in an actual sale or immediate settlement of the asset or liability. Additionally, there may be inherent weaknesses in any calculation technique, and changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the results of current or future values. The Company utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Securities available-for-sale are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as loans held for sale, loans held for investment, OREO, and certain other assets. These nonrecurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets. 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 — Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange. Level 2 — Valuations are obtained from readily available pricing sources via independent providers for market transactions involving similar assets or liabilities. The Company's principal market for these securities is the secondary institutional markets and valuations are based on observable market data in those markets. Level 2 securities include U. S. Agencies, state and municipal bonds and MBS. Level 3 — Valuations for assets and liabilities that are derived from other valuation methodologies, including option pricing models, discounted cash flow models and similar techniques, and not based on market exchange, dealer, or broker traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets. Assets and Liabilities Measured on a Recurring Basis: Available For Sale ("AFS") Investment Securities: Mortgage Serving Rights: Assets measured at fair value on a recurring basis as of December 31, 2015 were as follows: (Dollars in thousands) Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Description December 31, 2015 (Level 1) (Level 2) (Level 3) Recurring: U.S. Agencies $ 30,433 $ — $ 30,433 $ — MBS Residential 40,934 — 40,934 — Municipals 8,574 — 8,574 — Mortgage servicing rights 14 — — 14 Total $ 79,955 $ — $ 79,941 $ 14 Assets measured at fair value on a recurring basis as of December 31, 2014 were as follows: (Dollars in thousands) Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Description December 31, 2014 (Level 1) (Level 2) (Level 3) Recurring: U.S. Agencies $ 12,339 $ — $ 12,339 $ — MBS Residential 56,355 — 56,355 — Municipals 1,009 — 1,009 — Mortgage servicing rights 22 — — 22 Total $ 69,725 $ — $ 69,703 $ 22 The table below displays the change in all recurring Level 3 Assets from December 31, 2014 to December 31, 2015. (Dollars in thousands) Mortgage Servicing Rights Beginning balance (December 31, 2014) $ 22 Amortization 8 Ending Balance (December 31, 2015) $ 14 Assets and Liabilities Measured on a Nonrecurring Basis: Impaired loans: OREO: Repossessed Collateral: Assets measured at fair value on a nonrecurring basis as of December 31, 2015 and December 31, 2014 were: (Dollars in thousands) Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Description December 31, 2015 (Level 1) (Level 2) (Level 3) Nonrecurring: OREO $ 2,764 $ — $ — $ 2,764 Impaired loans: Commercial real estate 7,257 — — 7,257 Faith-based non-profit 16,148 — — 16,148 Residential real estate 2,512 — — 2,512 Consumer — — — — Total $ 28,681 $ — $ — $ 28,681 (Dollars in thousands) Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Description December 31, 2014 (Level 1) (Level 2) (Level 3) Nonrecurring: OREO $ 3,069 $ — $ — $ 3,069 Impaired loans: Commercial real estate 9,060 — — 9,060 Faith-based non-profit 17,119 — — 17,119 Residential real estate 4,214 — — 4,214 Consumer — — — — Total $ 33,462 $ — $ — $ 33,462 Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands) Significant Significant Valuation Unobservable Unobservable Description December 31, 2015 Technique Inputs Input Value Nonrecurring: OREO $ 2,764 discounted appraisals collateral discounts 6 20 Impaired loans 25,917 discounted appraisals collateral discounts 6 20 Total $ 28,681 (Dollars in thousands) Significant Significant Valuation Unobservable Unobservable Description December 31, 2014 Technique Inputs Input Value Nonrecurring: OREO $ 3,069 discounted appraisals collateral discounts 6 20 Impaired loans 30,393 discounted appraisals collateral discounts 6 20 Total $ 33,462 The Company discloses estimated fair values for its significant financial instruments. The methodologies for estimating the fair value of financial assets and liabilities that are measured at fair value on a recurring or non-recurring basis are discussed above. The methodologies for other financial assets and liabilities are discussed below. The Company had no transfers between any of the three levels in 2015 or 2014. Cash and Cash Equivalents Loans (other than impaired), net of allowances for loan losses The fair value of performing loans is calculated by discounting scheduled cash flows through their individual contractual maturity, using discount rates that reflect the credit risk, overhead expenses, interest rate earned and again, contractual maturity of each loan less credit component. The maturity is based on contractual maturities for each loan, modified as required by an estimate of the effect of historical prepayments and current economic conditions. For all loans, assumptions regarding the characteristics and segregation of loans, maturities, credit risk, cash flows, and discount rates are judgmentally determined using specific borrower and other available information, and are therefore considered a Level 3 input. Accrued Interest Receivable and Payable Deposits Borrowings Off-Balance Sheet Instruments As of December 31, 2015 and December 31, 2014, the carrying amounts and associated estimated fair value of financial assets and liabilities of the company are as follows: December 31, 2015 (Dollars in thousands) Carrying Estimated Amount Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 34,938 $ 34,938 $ 34,938 $ — $ — Investment securities available for sale 79,941 79,941 — 79,941 — Loans, net of allowances for loan losses 161,414 165,105 — — 165,105 Accrued interest receivable 785 785 785 — — Liabilities: Non-maturity deposits $ 121,315 $ 121,315 $ 121,315 $ — $ — Maturity deposits 133,385 132,687 — 132,687 — Other borrowings 938 889 — — 889 Accrued interest payable 95 95 95 — — December 31, 2014 (Dollars in thousands) Carrying Estimated Amount Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 35,574 $ 35,574 $ 35,574 $ — $ — Investment securities available for sale 69,703 69,703 — 69,703 — Loans, net of allowances for loan losses 171,648 175,165 175,165 Accrued interest receivable 816 816 816 — Liabilities: Non-maturity deposits $ 119,383 $ 119,383 $ 119,383 $ — $ — Maturity deposits 136,477 135,965 — 135,965 — Other borrowings 784 734 — — 734 Accrued interest payable 76 76 76 — — |
PREFERRED STOCK
PREFERRED STOCK | 12 Months Ended |
Dec. 31, 2015 | |
PREFERRED STOCK [Abstract] | |
PREFERRED STOCK | 18. PREFERRED STOCK U.S. TREASURY DEPARTMENT'S CAPITAL PURCHASE PROGRAM and CDCI On June 26, 2009, the Company issued 11,735 11,735,000 Under the CPP, the Series A Preferred Stock carried a dividend rate of 5% for the first five years after issuance, after which the dividend rate increased to 9% until such time as the Series A Preferred Stock is repurchased or redeemed. Under the CDCI, the Series B Preferred Stock carries a dividend rate of 2% for eight years, after which time the dividend rate increases to 9% until the Series B Preferred Stock is repurchased or redeemed. The Company paid all of the dividends due on the Series A Preferred Stock up to the date of closing of the CDCI exchange on August 20, 2010, and is current in its payment of dividends on the Series B Preferred Stock. SERIES C JUNIOR PATICIPATING PREFERRED STOCK On September 23, 2014, the Board of Directors declared a dividend of one preferred share purchase right for each outstanding share of the Company's common stock, to purchase from the Company one one-hundredth of a share of Series C Junior Participating Preferred Stock, par value $ 0.01 10.00 |
SUMMARY OF SIGNIFICANT ACCOUN27
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Basis of Presentation | Basi s o f Presentatio n - Th Consolidate Financia Statement includ th account an transaction o th Compan an th Bank th wholly owne subsidiary Al significan inter compan account an transaction hav bee eliminate i consolidation. |
Segment Reporting | Segmen t Reportin g Base o a analysi performe b th Company managemen ha determine tha th Compan onl ha on operating segment whic i commercia banking Th chie operatin decision make use consolidate result t mak operatin an strategi decisions and therefore th Compan i no require t disclos an additiona segmen information. |
Cash & Cash Equivalents | C as h an d Cas h Equivalent s Th cas an cas equivalent ar comprise o highl liqui short ter investment tha ar carrie a cost which approximate marke value an cas hel a th Federa Reserv Ban o Richmon ("FRB") Th Boar o Governor o th Federa Reserv (the “ Federa Reserve ” an bankin law i N requir bank t maintai averag balance i relatio t specifi percentage of thei customers' deposit a reserve A s o f December 31, 2015 and 2014 , th e Bank , hel d deposit s a s shown: Bank Federal Reserve Federal Funds (Dollars in thousands) Required Average Excess Sold Core Deposits Total December 31, 2015 $ 1,555 $ 23,989 $ 11 $ 3,168 $ 28,723 December 31, 2014 $ 1,557 $ 28,152 $ — $ 3,395 $ 33,104 A o 2015 and 2014 , th Ban hel deposit o $ 30 thousand and $ 0.1 million respectivel a othe financia institution i exces o the federall insure balances. |
Interest-bearing Time Deposits in Banks | Interest-bearing Time Deposits in Banks – Interest-bearing time deposits in banks mature within five Investmen t Securitie s Debt securities that the Company has the positive intent and ability to hold to maturity are classified as “held to maturity securities” and reported at amortized cost. Debt and equity securities that are bought and held principally for the purpose of selling in the near term are classified as “trading securities” and reported at fair value, with unrealized gains and losses included in consolidated earnings. Debt securities not classified as either held to maturity securities or trading securities, and equity securities not classified as trading securities, are classified as “available for sale securities” and reported at fair value, with unrealized gains and losses excluded from consolidated earnings and reported as a separate component of consolidated stockholders' equity and as an item of other comprehensive income. The unrealized gain or loss of a security is identified and removed from other comprehensive income when a security is sold, matured, or called. The initial classification of securities is determined at the date of purchase. Gains and losses on sales of investment securities, computed based on specific identification of the adjusted cost of each security, are included in noninterest income at the time of sale. Premiums and discounts on debt securities are recognized in interest income using the interest method over the period to maturity, or when the debt securities are called . Declines in the fair value of individual held to maturity and available for sale securities below their costs that are other-than-temporary result in write-downs of the individual securities to their respective fair value. There were no credit write-downs in consolidated earnings as realized losses. Transfers of securities between classifications, of which there were none in 2015 or 2014, are accounted for at fair value. No securities were classified as trading or held to maturity as of December 31, 2015 and 2014 Othe r Investe d Asset s Othe investe asset ar investment i Federa Hom Loa Ban o Atlant (th “ ” stoc carrie a historica cost, a adjuste fo an other than temporar impairmen loss A o an th Company' investment i FHL stoc wer 0.3 . |
Loans | Loan s Loans are stated at the amount of unpaid principal, net of deferred loan origination fees and costs. Loans (net) are reduced by the ALLL. Nonrefundable loan fees associated with the origination or acquisition of loans are deferred and recognized as an adjustment of the loan yield over the life of the loan using the effective interest method. Interest on loans is accrued on the daily balances of unpaid principal outstanding. Interest income is accrued and credited to income only if deemed collectible. Other loan fees and charges, representing service costs for the prepayment of loans, for delinquent payments, or for miscellaneous loan services, are recorded in income when collected . |
Non-Performing Loans and Leases | Non - Performin g Loan s an d Lease s Generally, all classes of loans and leases are placed on non-accrual status upon becoming contractually past due 90 days or more as to principal or interest (unless loans are adequately secured by collateral, are in the process of collection, and are reasonably expected to result in repayment), or where substantial doubt about full repayment of principal or interest is evident . When a loan or lease is placed on non-accrual status, regardless of class, the accrued and unpaid interest receivable is reversed and the loan or lease is accounted for on the cash or cost recovery method until qualifying for return to accrual status. All payments received on non-accrual loans and leases are applied against the principal balance of the loan or lease. Loans may be returned to accrual status when all principal and interest amounts contractually due (including any arrearages) are reasonably assured of repayment within a reasonable period, the borrower has demonstrated payment performance for a minimum of six months in accordance with the original or revised contractual terms of the loan, and when doubt about repayment is resolved Generally, for all classes of loans and leases, a charge-off is recorded when it is probable that a loss has been incurred and when it is possible to determine a reasonable estimate of the loss. For all classes of commercial loans and leases, a charge-off is determined on a judgmental basis after due consideration of the debtor's prospects for repayment and the fair value of collateral. For closed-end consumer loans, the entire outstanding balance of the loan is charged-off during the month that the loan becomes 120 days past due as to principal or interest. Consumer loans with non- real estate collateral are written down to the value of the collateral, less estimated costs to sell, if repossession of collateral is assured and in process. For residential mortgage and home equity loan classes, a partial charge-off is recorded at 120 days past due as to principal or interest for the amount that the loan balance exceeds the fair value of the collateral less estimated costs to sell |
Impaired Loans | Impaire d Loan s A loan is considered impaired when, based on current information and events, it is probable that the Company will not be able to collect all amounts due from the borrower in accordance with the original contractual terms of the loan, including scheduled interest payments. Impaired loans include all classes of commercial non-accruing loans and Troubled Debt Restructurings ("TDRs") For all classes of commercial loans, a quarterly evaluation of specific individual commercial borrowers with identified weaknesses is performed to identify impaired loans. The identification of specific borrowers for review is based on a review of non-accrual loans as well as those loans specifically identified by management as exhibiting above average levels of risk When a loan has been identified as being impaired, the amount of impairment is measured based on the present value of expected future cash flows discounted at the loan's effective interest rate, the loan's observable market price, or the estimated fair value of the collateral, less any selling costs, if the loan is collateral-dependent. If the measurement of the impaired loan is less than the recorded investment in the loan (including accrued interest, net of deferred loan fees or costs and unamortized premiums or discounts), impairment is recognized by creating or adjusting an existing allocation of the ALLL, or by recording a partial charge-off of the loan to its estimated fair value. Interest payments made on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest income may be accrued or recognized on a cash basis |
Loans Modfied as a TDR | Loan s Modifie d a s a TD R Loans are considered to have been modified as a TDR when the Company makes certain concessions to a borrower experiencing financial difficulty. Concessions to the borrower at modification may include interest rate reductions, principal or interest forgiveness, forbearance, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. Generally, a non-accrual loan that has been modified in a TDR remains on non-accrual status for a period of six months to demonstrate that the borrower is able to meet the terms of the modified loan. However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period . |
Income recognition on Impaired and Nonaccrual Loans | Incom e Recognitio n o n Impaire d an d Nonaccrua l Loan s Loans, including impaired loans, are generally classified as nonaccrual if they are past due as to maturity, or payment of principal or interest for a period of more than 90 days, unless such loans are well secured and in the process of collection. If a loan or a portion of a loan is classified as doubtful or is partially charged off, the loan is generally classified as nonaccrual. Loans that are on a current payment status or past due less than 90 days may also be classified as nonaccrual if full repayment of principal and/or interest is in doubt . Loans may be returned to accrual status when all principal and interest amounts contractually due (including arrearages) are reasonably assured of repayment within a reasonable period of time, and the borrower has demonstrated payment performance for a minimum of six months in accordance with the contractual terms involving payments of cash or cash equivalents In the case where a nonaccrual loan had been partially charged-off, recognition of interest on a cash basis is limited to that which would have been recognized on the remaining loan balance at the contractual interest rate. Receipts in excess of that amount are recorded as recoveries to the allowance for loan losses until prior charged off balances have been fully recovered |
Reserve for credit losses | Reserv e fo r Credi t Losse s The Company's reserve for credit losses is comprised of two components, the allowance for loan losses and the reserve for unfunded commitments (the "Unfunded Reserve") . |
Allowance for loan losses | Allowance s fo r Loa n Losse s Th ALL i valuatio allowanc whic i establishe throug provisio fo loa losse charge t expense. Whe managemen believe tha th collectabilit o th principa i unlikely loan ar charge agains th ALLL Subsequen recoveries i any are credite t th ALLL. Th ALL i management' estimat o probabl losse tha ar inheren i th loa portfolio Th ALL i base o regula quarterl assessments. Th methodologie fo measurin th appropriat leve o th ALL includ th combinatio o quantitativ historica los histor b loa type an qualitativ analysi fo loan no classifie a impaire o TDRs an specifi allowanc metho fo impaire an TD loans Th qualitative analysi i patterne afte th guideline provide unde th Securitie Exchang Commissio ( “ ” Staf Accountin Bulleti 10 an th Federal “ ” Interagenc Polic Statemen o th Allowanc fo Loa an Leas Losse an includ the • Changes in lending policies and procedures, including underwriting standards and collection, charge-off, and recovery practices; • Changes in national economic and business conditions and developments and the effect of unemployment on African Americans, who are the majority of our customers; • Changes in the nature and volume of the loan portfolio; • Changes in the experience, ability, and depth of lending management and staff; • Changes in trends of the volume and severity of past due and classified loans; and changes in trends in the volume of non-accrual loans, troubled debt restructurings and classified loans; • Changes in the quality of the loan review system and the degree of oversight by the Bank's Board of Directors; • The existence and effect of any concentrations of credit, and changes in the level of such concentrations; and • The effect of external factors such as competition and legal and regulatory requirements. Management has developed, from historical loan and economic information, quantitative drivers for certain qualitative factors. Management has identified which factors, by nature, are subjective, such as lending policies, competition, and regulatory requirements. The quantitative drivers, to which different weights are assigned based on management's judgment, are reviewed and updated quarterly. The quantitative loss history was based on a five-year rolling look back at December 31, 2015, and previously on a four-year look back, history of losses incurred by different loan types within the loan portfolio. The change in methodology resulte 425 A specifi ALL i establishe fo loan identifie a impaire o TDRs base o significan condition o circumstance relate t th specific credits Th specifi allowanc amount ar determine b metho prescribe b Accountin Standard Codificatio ( “ ASC ” Receivables. Loan identifie a impaire ar accounte fo i accordanc wit on o thre valuations ( i th presen valu o future cas flow discounte a th loan' effectiv interes rate (ii th loan' observabl marke price o (iii th fai valu o th collateral i th loan is collatera dependent les estimate liquidatio costs loa i considere impaire whe i i probabl tha no al amount du (principa and interest wil b collectibl accordin t th origina contractua term o th loa agreement Factor considere b managemen i determining impairmen includ paymen status collatera valu an th probabilit o collectin schedule principa an interes payment whe due Loans tha experienc insignifican paymen delay an paymen shortfall generall ar no classifie a impaired Th significanc o paymen delay and paymen shortfall ar considere o loa -by-loan basis takin int consideratio al o th circumstance surroundin th loa an th borrower, includin th lengt o th delay th reason fo th delay th borrower' prio paymen record an th amoun o th shortfal i relatio t the principa an interes owed. Fo commercia business faith base non profit rea estat an certai consume loans th measuremen o loa impairmen i base o th present valu o th expecte futur cas flows discounte a th loan' effectiv interes rate o o th fai valu o th loan' collatera i th loa is collatera dependent Mos consume ar smalle balanc an homogeneous and ar evaluate fo impairmen on collectiv , applyin th quantitativ los histor an th qualitativ factors Impairmen losse ar include i th ALL throug charg t th provisio for loa losses. Th Compan use severa credi qualit indicator t manag credi ris i a ongoin manner Th Company' ris ratin syste wa develope to ai i th ris managemen proces b groupin credit wit simila ris profile int pass specia mention substandard o doubtful categories. Credi ris rating ar applie individuall t al classe o loan an leases Interna credit reviews and external contracted credit review examination ar use t determin an validat loa ris grades Th credi revie syste take int consideratio factor suc as borrower's backgroun an experience historica an curren financia condition credi histor an paymen performance economi condition an their impac o variou industries type marke valu an volatilit o th marke valu o collateral lie position an th financia strengt of guarantors. Th proces o assessin th adequac o th ALL i necessaril subjective Further an particularl i period o economi downturns i is reasonabl possibl tha futur credi losse ma excee historica los level an ma als excee management' curren estimate o incurred credi losse inheren withi th loa portfolio A such ther ca b n assuranc tha futur loa charge off wil no excee management's curren estimat o wha constitute reasonabl ALLL. Th Compan an th Ban ar subjec t periodi examinatio b thei federa an stat regulators an ma b require b suc regulator to recogniz addition t th allowanc fo loa losse base o thei assessmen o credi informatio availabl t the a th tim o their examinations. |
Reserve for Unfunded Commitments | Reserv e fo r Unfunde d Commitment s Th Unfunde Reserv i componen o othe liabilitie an represent th estimat fo probabl credit losse inheren i unfunde commitment t exten credit Unfunde commitment t exten credi includ unfunde loan wit availabl balances, ne commitment to len tha ar no ye funded an standb an commercia letter o credit Th proces use t determin th Unfunded Reserv i consisten wit th proces fo determinin th ALLL a adjuste fo estimate fundin probabilitie an historica rolling look-back quantitative loan loss factor for 2014 Th leve o th Unfunde Reserv i adjuste b recordin a expens o recover i othe noninteres expense The balance o $ 10 $ 34 fo 2015 and 2014 respectively wer reflecte i othe liabilitie o th Consolidated Balance Sheet. |
Bank Premises and Equipment, Net | Ban k Premise s an d Equipment , Ne t Premise an equipmen ar state a cos les accumulate depreciatio an amortization Fo financial reportin purposes depreciatio an amortizatio ar compute b th straight lin metho an ar charge t operation ove th estimate useful live o th assets whic rang fro 3 5 year fo premises generall 6 1 year fo furnitur an equipment an 3 5 technolog equipmen an software Leasehol improvement ar amortize ove th term o th respectiv lease o th usefu live o the improvements whichever is shorter Maintenanc and repair are charge to operation as incurred Th Ban reviews long live assets impairmen wheneve event o change i circumstance indicat tha th carryin amount o suc asset ma no b recoverable I th su of th expecte cas flow attributabl t a asse i les tha th state amoun o th asset a impairmen los i recognize i th curren period an charge t operations Upo disposition th asse an relate accumulate depreciatio and/o amortizatio ar relieved an an gain or losse ar reflecte i operations. |
Cash Surrender Value of Life Insurance | Cas h Surrende r Valu e o f Lif e Insuranc e Th Ban maintain lif insuranc o certai curren an forme officer an directors o whic th Bank i owne an beneficiary Th cas surrende valu o th policie a wa 8.2 an 7.7 respectively. Incom fro th policie an change i th ne cas surrende valu ar recorde i noninteres income. |
OREO | O REO - O REO whic represent rea estat acquire throug foreclosure o th transfe o th deed i lie o foreclosure i satisfactio o commercia an consume rea estat collateralize loans i initiall recorde a fai valu les estimated holdin an sellin cost o th rea estate Loa balance i exces o th fai valu o th rea estat acquire a th dat o th foreclosur are charge t th ALLL An subsequen operatin expense o income reductio i estimate fai values an gain o losse o dispositio o such propertie ar charge o credite t non interes incom o non interes expense Valuation ar periodicall performe b management an any subsequen write down du t th carryin valu o propert exceedin it estimate fai valu les estimate cost t sel ar charge against othe non interes expense A o 201 5 and 201 4 , ther wa 2.8 an 3.1 respectively of foreclosed properties included in OREO on the Consolidated Balance Sheets of which $ 0.2 0.9 0.5 . |
Earnings Per Share | Earning s Pe r Shar e Earning pe shar ar calculate o th basi o th weighte averag numbe o share o commo stoc outstandin fo the purpos o computin th basi earning pe shar an th weighte averag numbe o share o commo stoc outstandin plu dilutiv common stoc equivalents suc a stoc options fo th purpos o computin dilute earning pe share A o ther wer no stoc option outstanding. |
Advertising Costs | Advertisin g Cost s - Adverti si n i expense a incurred. |
Income Taxes | Incom e Taxe s Provision fo incom taxe ar base o amount reporte i th Consolidate Statement o Incom (afte exclusio o non taxabl incom suc a interes o stat an municipa securities an includ change i deferre incom taxes Deferre ta asse an liability balance reflec temporar difference a th ta rat expecte t b i effec whe taxe wil becom payabl o receivable Temporar differences ar difference betwee th ta basi o asset an liabilitie an thei reporte amount i th Consolidate Financia Statement tha wil resul in taxabl o deductibl amount i futur years Th effec o chang i ta rate i recognize i incom i th perio tha include th enactment date valuatio allowanc i recorde fo deferre ta asset i th Compan determine tha i i mor likel tha no tha som portio o al of th deferre ta asset wil no b realized Th Compan regularl review it deferre ta asset fo recoverabilit considerin historical profitability projecte futur taxabl income an th expecte timin o th reversal o existin temporar difference an ta plannin strategies. Whe ta return ar filed i i highl certai tha som position take woul b sustaine upo examinatio b th taxin authorities whil others ar subjec t uncertaint abou th merit o th positio take o th amoun o th positio tha ultimatel woul b sustained Th benefi o ta positio i recognize i th financia statement i th perio durin which base o al availabl evidence managemen believe i i more tha no tha th positio wil b sustaine upo examination includin th resolutio o appeal o litigatio process i any Th evaluation o ta positio take i considere b itsel an no offse o aggregate wit othe positions Ta position tha mee th more tha not recognitio threshol ar measure a th larges amoun o ta benefi tha i mor tha 5 percen likel o bein realize upo settlemen wit the applicabl taxin authority Th portio o benefit associate wit ta position take tha exceed th amoun measure a describe abov is reflecte a liabilit fo unrecognize ta benefit i th accompanyin Consolidate Balanc Sheet alon wit an associate interes and penaltie tha woul b payabl t th taxin authoritie upo examination Interes an penaltie associate wit unrecognize ta benefit are recognize i incom ta expens o th incom statement I i th Company' polic t recogniz interes an penaltie relate t unrecognize tax liabilitie within income tax expens in th statement of income Th Company does not hav an accrua for uncertai tax position as of a deduction take an benefit accrue ar base o widel understoo administrativ practice an procedure and ar base o ta law Th Company' federa an stat incom ta return ar subjec t revie an examinatio b governmen authorities. |
Comprehensive Income (Loss) | Comprehensiv e Incom e (Loss ) Comprehensiv incom (loss i th chang i th Company' equit durin th perio fro transaction an other event an circumstance from non owne sources Tota comprehensiv income (loss consist o ne incom an othe comprehensiv ( loss) income Th Company' othe comprehensiv (loss incom an accumulate othe comprehensiv los ar comprise o ne unrealize gain and losse o certai investment in deb securitie and post retiremen plans Informatio concerning the Company's other comprehensiv ( loss) incom an accumulate comprehensiv los a o an fo th year ende ar presented in the C onsolidated S tatements of C omprehensive I ncome . |
Fair Values of Financial Instruments | Fai r Value s o f Financia l Instrument s Fai value o financia instrument ar estimate usin relevan marke informatio an othe assumptions, a mor full disclose i Not 17 Fai valu estimate involv uncertaintie an matter o significan judgmen regardin interes rates credi risk, prepayments an othe factors especiall i th absenc o broa market fo particula items Change i assumption o i marke conditions coul significantl affec th estimates Fai valu i define a th exchang pric tha woul b receive t sel a asse o pai t transfe liabilit i th principa o mos advantageou marke fo th asse o liabilit i a orderl transactio betwee marke participant o the measuremen date Generall accepte accountin principle ( “ GAAP ” establishe fai valu hierarch tha prioritize th informatio use to develo thos assumptions Th fai valu hierarch give th highes priorit t quote price i activ market (observabl inputs an th lowest priorit t th Company' assumption (unobservabl inputs) GAA require fai valu measurement t b separatel disclose b leve withi the fai valu hierarchy Fo asset an liabilitie recorde a fai value th Compan maximize th us o observabl input an minimize th us of unobservabl input whe developin fai valu measurements. Th Compan utilize fai valu measurement t recor fai valu adjustment t certai asset an liabilitie an t determin fai value disclosures Available for sal investmen securitie ar recorde a fai valu o recurrin basis Additionally th Compan ma b require to recor a fai valu othe asset o nonrecurrin basis suc a loan hel fo sale loan hel fo investmen an certai othe assets. Unde GAAP th Compan group asset an liabilitie a fai valu i thre levels base o th market i whic th asset an liabilitie are trade an th reliabilit o th assumption use t determin fai value Th Compan di no hav an change i levelin input i 2013 Thes level are: Level Valuation fo asset an liabilitie trade i activ exchang markets suc a th Ne Yor Stoc Exchange. Level Valuation ar obtaine fro readil availabl pricin source vi independen provider fo marke transaction involvin simila assets principa marke fo thes securitie i th secondar institutiona market an valuation ar base o observable marke dat i thos markets Leve securitie includ U S Government a genc y securities (“U.S. Agencies”) U.S. Government sponsored residential mortgage backed securities (“MBS”) and State and Municipal Bonds (“Municipals”) . Level Valuation fo asset an liabilitie tha ar derive fro othe valuatio methodologies includin optio pricin models discounted cas flo model an simila techniques an no base o marke exchange dealer o broke trade transactions Leve valuation incorporate certai assumption an projection i determinin th fai valu assigne t suc assets. |
Use of Estimates | Us e o f Estimate s Th preparatio o financia statement i conformit wit GAA require managemen t mak estimate an assumption that affec th reporte amount o asset an liabilitie an disclosur o contingen asset an liabilitie a th dat o th financia statement an the reporte amount o revenue an expense durin th reportin period Materia estimate tha ar susceptibl t chang i th nea ter relat to th determinatio o th ALL an th provisio fo loa losses th evaluatio o other than temporar impairmen o investmen securities, accountin fo deferre ta asset an relate valuatio allowances th determinatio o th fai value o investmen securitie an other accountin fo incentiv compensation an post retiremen benefits Actua result coul diffe fro thos estimates. |
Significant Group Concentrations | Significan t Grou p Concentration s Mos o th Bank' activitie ar wit customer locate withi th stat o NC Th Bank does have concentration wit respec t loan t an deposit fro faith base non profi organization a outline i Note an t th Consolidated Financia Statements. |
Mortgage Servicing Rights | Mortgag e Servicin g Right s Mortgag servicin right ar recognize a asset whe mortgag loan ar sol an th right t servic those loan ar retained Mortgag servicin right ar initiall recorde a fai valu b usin discounte cas flo mode t calculat th presen value o estimate futur ne servicin income. Th Company' mortgag servicin right accounte fo unde th amortizatio metho ar initiall recorde a fai value Th Compan obtain an annua appraisa o it mortgag servicin right an adjust th carryin valu accordingly Durin th year th carryin valu i amortize based o th yea -end appraisa t tota service mortgag balance outstandin a o quarte end. |
New Accounting Pronouncements | Ne w Accountin g Pronouncement s – In May 2014, the Financial Accounting Standards Board (the “FASB”) issued guidance to change the recognition of revenue from contracts with customers. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. The guidance will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect this guidance to have a material effect on its financial statements. In August 2014, the FASB issued guidance that is intended to define management's responsibility to evaluate whether there is substantial doubt about an organization's ability to continue as a going concern and to provide related footnote disclosures. In connection with preparing financial statements, management will need to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the organization's ability to continue as a going concern within one year after the date that the financial statements are issued. The amendments will be effective for the Company for annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. The Company does not expect these amendments to have a material effect on its financial statements. In January 2015, the FASB issued guidance that eliminated the concept of extraordinary items from GAAP. Existing GAAP required that an entity separately classify, present, and disclose extraordinary events and transactions. The amendments will eliminate the requirements for reporting entities to consider whether an underlying event or transaction is extraordinary, however, the presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The amendments may be applied either prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company does not expect these amendments to have a material effect on its financial statements. In February 2015, the FASB issued guidance, which amends the consolidation requirements and significantly changes the consolidation analysis required under GAAP. Although the amendments are expected to result in the deconsolidation of many entities, the Company will need to reevaluate all its previous consolidation conclusions. The amendments will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted (including during an interim period), provided that the guidance is applied as of the beginning of the annual period containing the adoption date. The Company does not expect these amendments to have a material effect on its financial statements. In April 2015, the FASB issued guidance which provides a practical expedient that permits the Company to measure defined benefit plan assets and obligations using the month-end that is closest to the Company's fiscal year-end. The amendments will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. The Company does not expect these amendments to have a material effect on its financial statements. In August 2015, the FASB deferred the effective date of ASU 2014-09, Revenue from Contracts with Customers. In August 2015, the FASB issued amendments to the “Interest” topic of the ASC to clarify the SEC staff's position on presenting and measuring debt issuance costs incurred in connection with line-of-credit arrangements. The amendments were effective upon issuance. The Company does not expect these amendments to have a material effect on its financial statements. In November 2015, the FASB amended the Income Taxes topic of the Accounting Standards Codification simplify the presentation of deferred income taxes by requiring that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments will be effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods, with early adoption permitted as of the beginning of an interim or annual reporting period. The Company will apply the guidance prospectively. The Company does not expect these amendments to have a material effect on its financial statements. In January 2016, the FASB amended the “Financial Instruments” topic of the ASC to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company will apply the guidance by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values will be applied prospectively to equity investments that exist as of the date of adoption of the amendments. The Company does not expect these amendments to have a material effect on its financial statements. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company's financial position, results of operations or cash flows. |
SUMMARY OF SIGNIFICANT ACCOUN28
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Summary schedule of cash deposits | Bank Federal Reserve Federal Funds (Dollars in thousands) Required Average Excess Sold Core Deposits Total December 31, 2015 $ 1,555 $ 23,989 $ 11 $ 3,168 $ 28,723 December 31, 2014 $ 1,557 $ 28,152 $ — $ 3,395 $ 33,104 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
INVESTMENT SECURITIES [Abstract] | |
Schedule of Collateral Pledged for public deposits | (Dollars in thousands) December 31, 2014 Pledged to FRB $ 830 $ 1,008 Pledged for public housing 2,886 3,816 Pledged to the NC State Treasurer 19,643 18,115 |
Schedule of Investment Securities | (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2015 U.S. Agencies $ 30,681 $ 2 $ (250 ) $ 30,433 MBS Residential 41,323 20 (409 ) 40,934 Municipals North Carolina 8,489 98 (13 ) 8,574 Total $ 80,493 $ 120 $ (672 ) $ 79,941 December 31, 2014 U.S. Agencies $ 12,373 $ 26 $ (60 ) $ 12,339 MBS Residential 56,350 281 (276 ) 56,355 Municipals 1,009 9 (9 ) 1,009 Total $ 69,732 $ 316 $ (345 ) $ 69,703 |
Schedule of Investment Securities maturities | (Dollars in thousands) As of December 31, 2015 Fair Value Amortized Cost U.S. Agencies Due within one year $ 3,481 $ 3,500 Due after one year through five years 21,998 22,181 Due after five years through ten years 4,954 5,000 Total US government agencies $ 30,433 $ 30,681 MBS Residential Due within one year $ 5,750 $ 5,812 Due after one year through five years 15,526 15,672 Due after five years through ten years 11,387 11,480 Due after ten years 8,271 8,359 Total government sponsored MBS $ 40,934 $ 41,323 Municipals Due within one year $ 262 $ 260 Due after one year through five years 738 738 Due after five years through ten years 7,169 7,091 Due after 10 years 405 400 Total municipal bonds $ 8,574 $ 8,489 (Dollars in thousands) As of December 31, 2014 Fair Value Amortized Cost U.S. Agencies Due withhin one year 2,498 2,499 Due after one year through five years $ 7,887 $ 7,874 Due after five years through ten years 1,954 2,000 Total US government agencies $ 12,339 $ 12,373 MBS Residential Due within one year $ 10,114 $ 10,139 Due after one year through five years 24,003 24,018 Due after five years through ten years 13,803 13,771 Due after ten years 8,435 8,422 Total government sponsored MBS $ 56,355 $ 56,350 Municipals Due within one year $ 162 $ 161 Due after one year through five years 268 260 Due after five years through ten years 579 588 Total municipal bonds $ 1,009 $ 1,009 |
Schedule of Securities in an unrealized los position | (Dollars in thousands) Less Than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2015 U.S. Agencies $ 27,060 $ (237 ) $ 987 $ (13 ) $ 28,047 $ (250 ) MBS Residential 24,369 (193 ) 9,970 (216 ) 34,339 (409 ) Municipals 1,405 (13 ) — — 1,405 (13 ) Total $ 52,834 $ (443 ) $ 10,957 $ (229 ) $ 63,791 $ (672 ) (Dollars in thousands) Less Than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2014 U.S. Agencies $ 5,982 $ (14 ) $ 1,954 $ (46 ) $ 7,936 $ (60 ) MBS Residential 12,594 (73 ) 13,476 (203 ) 26,070 (276 ) Municipals — — 579 (9 ) 579 (9 ) Total $ 18,576 $ (87 ) $ 16,009 $ (258 ) $ 34,585 $ (345 ) |
ACCUMULATED OTHER COMPREHENSI30
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS [Abstract] | |
Schedule of changes in Accumulated Other Comprehensive Income (Loss) by Component | (Dollars in thousands) Unrealized Gains and Losses on Available-for- Sale Defined Benefit Pension Items Total Balance as of December 31, 2013 $ (404 ) $ (1,021 ) $ (1,425 ) Other comprehensive loss before reclassifications 396 (631 ) (235 ) Amounts reclassified from accumulated other comprehensive income (loss) (9 ) 1 (8 ) Net current-period other comprehensive income (loss) 387 (630 ) (243 ) Balance as of December 31, 2014 $ (17 ) $ (1,651 ) $ (1,668 ) Balance as of December 31, 2014 $ (17 ) $ (1,651 ) $ (1,668 ) Other comprehensive income before reclassifications (316 ) (133 ) (449 ) Amounts reclassified from accumulated other comprehensive loss (17 ) — (17 ) Net current-period other comprehensive loss (333 ) (133 ) (466 ) Balance as of December 31, 2015 $ (350 ) $ (1,784 ) $ (2,134 ) All amounts are net of tax. |
Schedule of reclassification adjustments from accumulated other comprehensive loss | For the Years Ended December 31, (Dollars in thousands) 2015 2014 Detail about Acumulated Other Comprehensive Loss Components Amount Reclassified from Accumulated Other Comprehensive Loss Amount Reclassified from Accumulated Other Comprehensive Loss Net Unrealized holding gains - investment securities available-for-sale $ (29) $ (14) Income tax expense 12 5 Total, net of tax (17) (9) Amortization of defined benefit pension — 2 Income tax expense — (1) Total, net of tax — 1 Total reclassifications for the period $ (17) $ (8) |
LOANS AND ALLL (Tables)
LOANS AND ALLL (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
LOANS AND ALLL [Abstract] | |
Loan Portfolio Schedule | (Dollars in thousands) December 31, 2015 December 31, 2014 Commercial $ 7,540 $ 7,253 Commercial real estate: Construction 9,618 2,557 Owner occupied 18,941 18,013 Other 15,481 19,493 Faith-based non-profit: Construction 4,800 6,156 Owner occupied 78,228 84,499 Other 2,427 4,707 Residential real estate: First mortgage 16,467 18,995 Multifamily 2,701 3,001 Home equity 3,249 4,124 Construction 122 506 Consumer 1,035 1,232 Other loans 4,240 4,552 Loans, net of deferred fees 164,849 175,088 ALLL (3,435 ) (3,440 ) Loans, net of ALLL $ 161,414 $ 171,648 |
Schedule of Allowance for Loan Losses | December 31, 2015 Faith Based Commercial Non- Residential Other (Dollars in thousands) Commercial Real Estate Profit Real Estate Consumer Loans Unallocated Total ALLL: Ending ALLL balance Individually evaluated $ — $ 303 $ 261 $ 67 $ — $ — $ — $ 631 Collectively evaluated 329 536 968 343 21 229 378 2,804 Total ending ALLL $ 329 $ 839 $ 1,229 $ 410 $ 21 $ 229 $ 378 $ 3,435 Loans: Loans individually $ — $ 7,517 $ 16,325 $ 2,579 $ — $ — $ — $ 26,421 Loans collectively 7,540 36,523 69,130 19,960 1,035 4,240 — 138,428 Total ending loans $ 7,540 $ 44,040 $ 85,455 $ 22,539 $ 1,035 $ 4,240 $ — $ 164,849 December 31, 2014 Faith Based Commercial Non- Residential Other (Dollars in thousands) Commercial Real Estate Profit Real Estate Consumer Loans Unallocated Total ALLL: Ending ALLL balance Individually evaluated $ — $ 11 $ 6 $ 259 $ — $ — $ — $ 276 Collectively evaluated 353 568 1,228 426 28 265 296 3,164 Total ending ALLL $ 353 $ 579 $ 1,234 $ 685 $ 28 $ 265 $ 296 $ 3,440 Loans: Loans individually $ — $ 9,012 $ 16,807 $ 4,450 $ — $ — $ — $ 30,269 Loans collectively 7,253 31,051 78,555 22,176 1,232 4,552 — 144,819 Total ending loans $ 7,253 $ 40,063 $ 95,362 $ 26,626 $ 1,232 $ 4,552 $ — $ 175,088 For the Year Ended December 31, 2015 Faith- Based Residential Commercial Non- Real Other (Dollars in thousands) Commercial Real Estate Profit Estate Consumer Loans Unallocated Total ALLL: Total ending ALLL $ 353 $ 579 $ 1,234 $ 685 $ 28 $ 265 $ 296 $ 3,440 For the year ended December 31, 2015 Charge-offs (3 ) — — (7 ) (2 ) (18 ) — (30 ) Recoveries — — — 20 1 4 — 25 Provision for loan losses (21 ) 260 (5 ) (288 ) (6 ) (22 ) 82 — Total ending ALLL $ 329 $ 839 $ 1,229 $ 410 $ 21 $ 229 $ 378 $ 3,435 For the Year Ended December 31, 2014 Faith- Based Residential Commercial Non- Real Other (Dollars in thousands) Commercial Real Estate Profit Estate Consumer Loans Unallocated Total ALLL: Total ending ALLL $ 184 $ 808 $ 1,883 $ 493 $ 19 $ 106 $ — $ 3,493 For the year ended December 31, 2014 Charge-offs — — — (78 ) (35 ) (21 ) — (134 ) Recoveries — — — 22 1 8 — 31 Provision for loan losses 169 (229 ) (649 ) 248 43 172 296 50 Total ending ALLL $ 353 $ 579 $ 1,234 $ 685 $ 28 $ 265 $ 296 $ 3,440 |
Schedule of Impaired Loans | December 31, 2015 Interest Unpaid Earned Average Principal Recorded ALLL For the Recorded (Dollars in thousands) Balance Investment Allocated Year Investment With no related allowance recorded: Commercial $ — $ — $ — $ — $ — Commercial real estate: Construction — — — — 137 Owner occupied 68 68 — 7 59 Other 2,813 2,815 — 85 3,685 Faith based non-profit: Construction — — — — — Owner occupied 5,413 5,426 — 230 5,197 Other — — — — — Residential real estate: First mortgage 1,926 1,898 — 24 2,211 Multifamily — — — — — Home equity 338 338 — 10 140 Construction — — — — — Consumer — — — — 1 Impaired loans with no allowance recorded $ 10,558 $ 10,545 $ — $ 356 $ 11,430 With an allowance recorded: Commercial $ — $ — $ — $ — $ 1 Commercial real estate: Construction — — — — 172 Owner occupied 4,637 4,677 303 190 4,712 Other — — — — 18 Faith based non-profit: Construction — — — — — Owner occupied 10,912 10,983 261 567 11,583 Other — — — — — Residential real estate: First mortgage 343 343 67 2 775 Multifamily — — — — — Home equity — — — — 39 Construction — — — — — Consumer — — — — — Impaired loans with allowance recorded $ 15,892 $ 16,003 $ 631 $ 759 $ 17,300 Total impaired loans $ 26,450 $ 26,548 $ 631 $ 1,115 $ 28,730 December 31, 2014 Interest Unpaid Earned Average Principal Recorded ALLL For the Recorded (Dollars in thousands) Balance Investment Allocated Year Investment With no related allowance recorded: Commercial $ — $ — $ — $ — $ — Commercial real estate: Construction 77 78 — 6 186 Owner occupied 42 42 — 16 2,818 Other 3,855 3,872 — 100 3,017 Faith based non-profit: Construction — — — — — Owner occupied 9,744 9,764 — 558 9,937 Other — — — — 40 Residential real estate: First mortgage 2,894 2,881 — 172 2,717 Multifamily — — — — — Home equity 20 20 — 2 70 Construction — — — — — Consumer — — — — 8 Impaired loans with no allowance recorded $ 16,632 $ 16,657 $ — $ 854 $ 18,793 With an allowance recorded: Commercial $ — $ — $ — $ — $ — Commercial real estate: Construction 278 279 1 23 176 Owner occupied 4,760 4,800 10 200 1,164 Other — — — — 1,714 Faith based non-profit: Construction — — — — — Owner occupied 7,063 7,361 6 327 6,801 Other — — — — — Residential real estate: First mortgage 1,426 1,427 242 76 644 Multifamily — — — — — Home equity 145 145 17 6 112 Construction — — — — — Consumer — — — — — Impaired loans with allowance recorded $ 13,672 $ 14,012 $ 276 $ 632 $ 10,611 Total impaired loans $ 30,304 $ 30,669 $ 276 $ 1,486 $ 29,404 |
Schedule of Troubled Debt Restructurings | TDR Modifications For the Year Ended December 31, 2015 Pre-modification Outstanding Post-modification Outstanding (Dollars in thousands) Number of loans Recorded Investment Recorded Investment Below market interest rates: Residential real estate: First mortgage 2 $ 129 $ 125 Extended payment terms: Residential real estate: First mortgage 1 129 127 Total 3 $ 258 $ 252 During the Years Ended December 31, 2015 December 31, 2014 Default Default Number of Recorded Number of Recorded (Dollars in thousands) Loans Investment Loans Investment Below market interest rate and extended payment terms — $ — — $ — Below market interest rate 1 66 — — Extended payment terms — — — — Total 1 $ 66 — $ — |
Schedule of non-accrual loans | 90 Days or More Past Due December 31, 2105 Still (Dollars in thousands) Non-accrual Number Accruing Number Commercial $ — — $ — — Commercial real estate: Construction — — — — Owner occupied — — — — Other 2,513 2 — — Faith-based non-profit: Construction — — — — Owner occupied 15 1 356 3 Other — — — — Residential real estate: First mortgage 2,154 36 — — Multifamily — — — — Home equity 338 5 — — Construction — — — — Consumer — — — — Other loans — — — — Total $ 5,020 44 $ 356 3 90 Days or More Past Due December 31, 2014 Still (Dollars in thousands) Non-accrual Number Accruing Number Commercial $ — — $ — — Commercial real estate: Construction — — — — Owner occupied 42 1 — — Other 2,860 3 771 1 Faith-based non-profit: Construction — — — — Owner occupied 133 2 541 2 Other — — 15 1 Residential real estate: First mortgage 2,720 33 1,696 8 Multifamily — — — — Home equity 165 7 — — Construction — — — — Consumer — — — 1 Other loans — — — — Total $ 5,920 46 $ 3,023 13 (Dollars in thousands) Amount Number Loans past due over 90 days still on accrual $ 356 3 Non-accrual loans past due Less than 30 days $ 3,082 11 30-59 days 195 3 60-89 days 161 3 90+ days 1,582 27 Non-accrual loans $ 5,020 44 (Dollars in thousands) Amount Number Loans past due over 90 days still on accrual $ 3,023 46 Non-accrual loans past due Less than 30 days $ 721 11 30-59 days 485 6 60-89 days 59 1 90+ days 4,655 28 Non-accrual loans $ 5,920 46 |
Schedule of Past Due loans | 90 Days December 31, 2015 30-59 Days 60-89 Days Or More Total Past (Dollars in thousands) Past Due Past Due Past Due Due Current Total Commercial $ — $ — $ — $ — $ 7,540 $ 7,540 Commercial real estate: Construction 40 — — 40 9,578 9,618 Owner occupied 397 — — 397 18,544 18,941 Other — 71 — 71 15,410 15,481 Faith-based non-profit: Construction — — — — 4,800 4,800 Owner occupied 237 — 355 592 77,636 78,228 Other — — — — 2,427 2,427 Residential real estate: First mortgage 688 161 1,377 2,226 14,241 16,467 Multifamily 17 — — 17 2,684 2,701 Home equity 129 — 206 335 2,914 3,249 Construction 122 — — 122 — 122 Consumer — — — — 1,035 1,035 Other loans 3 — — 3 4,237 4,240 Total $ 1,633 $ 232 $ 1,938 $ 3,803 $ 161,046 $ 164,849 90 Days December 31, 2014 30-59 Days 60-89 Days Or More Total Past (Dollars in thousands) Past Due Past Due Past Due Due Current Total Commercial $ 3 $ — $ — $ 3 $ 7,250 $ 7,253 Commercial real estate: Construction — — — — 2,557 2,557 Owner occupied 69 321 42 432 17,581 18,013 Other 25 1,188 3,602 4,815 14,678 19,493 Faith-based non-profit: Construction — — — — 6,156 6,156 Owner occupied 1,923 435 674 3,032 81,467 84,499 Other — — 15 15 4,692 4,707 Residential real estate: First mortgage 745 103 3,322 4,170 14,825 18,995 Multifamily — — — — 3,001 3,001 Home equity 47 — 23 70 4,054 4,124 Construction — — — — 506 506 Consumer 11 — — 11 1,221 1,232 Other loans — 8 — 8 4,544 4,552 Total $ 2,823 $ 2,055 $ 7,678 $ 12,556 $ 162,532 $ 175,088 |
Loans by risk category | December 31, 2015 (Dollars in thousands) Pass Special Mention Substandard Doubtful Total Commercial $ 1,869 $ — $ 5,671 $ — $ 7,540 Commercial real estate: Construction 9,618 — — — 9,618 Owner occupied 18,601 272 68 — 18,941 Other 11,720 394 3,367 — 15,481 Faith-based non-profit: Construction 4,800 — — — 4,800 Owner occupied 61,836 7,243 9,149 — 78,228 Other 2,427 — — — 2,427 Residential real estate: First mortgage 13,733 256 2,478 — 16,467 Multifamily 2,613 30 58 — 2,701 Home equity 3,070 — 179 — 3,249 Construction 122 — — — 122 Consumer 1,020 10 5 — 1,035 Other loans 4,240 — — — 4,240 Total $ 135,669 $ 8,205 $ 20,975 $ — $ 164,849 December 31, 2014 (Dollars in thousands) Pass Special Mention Substandard Doubtful Total Commercial $ 1,279 $ 3,159 $ 2,815 $ — $ 7,253 Commercial real estate: Construction 2,202 — 355 — 2,557 Owner occupied 17,596 306 111 — 18,013 Other 14,263 457 4,773 — 19,493 Faith-based non-profit: Construction 6,156 — — — 6,156 Owner occupied 68,963 6,160 9,376 — 84,499 Other 4,707 — — — 4,707 Residential real estate: First mortgage 14,328 88 4,579 — 18,995 Multifamily 2,910 31 60 — 3,001 Home equity 3,910 — 214 — 4,124 Construction 506 — — — 506 Consumer 1,213 14 5 — 1,232 Other loans 4,552 — — — 4,552 Total $ 142,585 $ 10,215 $ 22,288 $ — $ 175,088 |
BANK PREMISES AND EQUIPMENT (Ta
BANK PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
BANK PREMISES AND EQUIPMENT [Abstract] | |
Schedule of bank premises and equipment | (Dollars in thousands) December 31, 2015 December 31, 2014 Land $ 747 $ 747 Buildings and leasehold improvements 7,411 7,263 Furniture and equipment 2,652 2,565 Capital lease 597 315 Construction in progress 22 — 11,429 10,890 Less: accumulated depreciation and amortization 7,017 6,597 $ 4,412 $ 4,293 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
DEPOSITS [Abstract] | |
Maturities of time deposits | (Dollars in thousands) Amount 2016 $ 119,454 2017 5,235 2018 8,183 2019 193 2020 320 Total $ 133,385 |
Principal maturities of time deposits | December 31, 2015 December 31, 2014 (Dollars in thousands) Amount Average Rate Amount Average Rate Three months or less $ 3,259 0.38 % $ 5,132 0.35 % Over three months to six months 513 0.10 1,238 0.31 Over six months to twelve months 5,229 0.38 6,382 0.55 Over one year to five years 8,718 0.96 1,509 0.69 Total $ 17,719 0.66 % $ 14,261 0.47 % |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
LEASES [Abstract] | |
Schedule of future minimum payments for Capital Leases | (Dollars in thousands) 2016 $ 110 2017 57 2018 56 2019 53 2020 28 Thereafter — Total $ 304 |
Schedule of future minimum payments for operating leases | (Dollars in thousands) Amount 2016 $ 47 2017 7 Total $ 54 |
Schedule of future sublease rental revenue | (Dollars in thousands) Amount 2016 $ 222 2017 152 2018 60 2019 62 2020 48 Total $ 544 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
BORROWINGS [Abstract] | |
Schedule of maturities of FHLB Advances | December 31, 2015 Maturity Date Amount Rate (Dollars in thousands) 2016 $ 24 0.50 % 2017 25 0.50 % 2018 26 0.50 % 2019 27 0.50 % Thereafter 532 0.50 % $ 634 0.50 % |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
INCOME TAXES [Abstract] | |
Components of income tax | (Dollars in thousands) 2015 2014 Income tax expense (benefit) Current $ (14 ) $ 380 Deferred 90 172 Total $ 76 $ 552 |
Reconciliation of tax rate | (Dollars in thousands) 2015 2014 Statutory federal income tax rate 34 % 34 % Tax provision at statutory rate $ 144 $ 543 Increase (decrease) in income taxes resulting from: State income taxes net of federal benefit 70 124 Tax exempt interest income (34 ) (8 ) Disallowed interest expense 1 — Increase in deferred tax valuation allowance (26 ) (22 ) Cash surrender value of life insurance (80 ) (69 ) Other 1 (16 ) Total $ 76 $ 552 |
Schedule of deferred tax assets and liabilities | (Dollars in thousands) December 31, 2015 2014 Deferred tax assets: Accrued pension expense $ 225 $ 282 Adjustments, defined benefit plans 1,032 982 Deferred loan fees 55 171 Excess book over tax provision for loan loss expense 1,262 1,296 Federal net operating loss carryforward 127 127 State net economic loss carryforward 143 170 Impairment on investments 72 72 OREO write-downs 372 307 Deferred gain on other real estate owned 4 4 Premises and equipment 93 123 Alternative minimum tax 511 485 Unrealized losses on securities available for sale, net 203 11 Other, net 96 77 Total deferred tax assets 4,195 4,107 Valuation allowance for deferred tax assets (174 ) (200 ) Net of valuation allowance deferred tax asset 4,021 3,907 Deferred tax liabilities: Other (109 ) (147 ) Total deferred tax liabilities (109 ) (147 ) Net deferred tax assets 3,912 3,760 Tax Receivable, net 352 354 Deferred tax assets and taxes receivable, net $ 4,264 $ 4,114 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
EMPLOYEE BENEFIT PLANS [Abstract] | |
Schedule of Actual Asset Allocation in Defined Benefit Plans | As of December 31, Asset Category 2015 2014 Equity securities 63.6 % 63.8 % Debt securities 33.4 % 35.0 % All other assets 3.0 % 1.2 % Total 100.0 % 100.0 % |
Schedule of net periodic benefit cost | Cash Balance Plan SERP Total (Dollars in thousands) 2015 2014 2015 2014 2015 2014 Service costs $ 172 $ 156 $ — $ — $ 172 $ 156 Interest cost 210 236 71 80 281 316 Expected return on Plan assets (365 ) (349 ) — — (365 ) (349 ) Amortization of prior service cost and recognized net actuarial gain 331 87 20 5 351 92 Net periodic pension cost $ 348 $ 130 $ 91 $ 85 $ 439 $ 215 |
Schedule of changes in the projected benefit obligations | Cash Balance Plan SERP Total (Dollars in thousands) 2015 2014 2015 2014 2015 2014 Change in projected benefit obligations: Benefit obligation at beginning of year $ 6,432 $ 5,637 $ 2,111 $ 1,955 $ 8,543 $ 7,592 Service cost 172 156 — — 172 156 Interest cost 210 236 71 80 281 316 Actuarial gain 29 746 101 230 130 976 Benefits and expenses paid (701 ) (343 ) (154 ) (154 ) (855 ) (497 ) Benefit obligation at end of year 6,142 6,432 2,129 2,111 8,271 8,543 Change in plan assets: Fair value of plan assets at beginning of year 5,484 5,233 — — 5,484 5,233 Actual return on plan assets (39 ) 244 — — (39 ) 244 Employer contributions 350 350 154 154 504 504 Benefits and expenses paid (701 ) (343 ) (154 ) (154 ) (855 ) (497 ) Fair value of plan assets at year end 5,094 5,484 — — 5,094 5,484 Underfunded status $ (1,048 ) $ (948 ) $ (2,129 ) $ (2,111 ) $ (3,177 ) $ (3,059 ) |
Schedule of pre-tax amounts included in accumulated other comprehensive income expected to be recognized in 2013 | Cash Balance Plan SERP Total (Dollars in thousands) 2015 2014 2015 2014 2015 2014 Unrecognized net actuarial loss $ 2,229 $ 2,126 $ 587 $ 506 $ 2,816 $ 2,632 Unrecognized prior service cost — — — — — — Total amount included in accumulated other comprehensive loss $ 2,229 $ 2,126 $ 587 $ 506 $ 2,816 $ 2,632 Weighted average assumptions as of December 31: Discount rate 3.75 % 3.50 % 3.75 % 3.50 % Expected return on plan assets 7.00 % 7.00 % n/a n/a Rate of compensation increase 3.00 % 3.00 % 3.00 % 3.00 % |
Schedule of pre-tax amounts recognized as a component of accumulated other comprehensive income | (Dollars in Thousands) Cash Balance Plan SERP Total Net actuarial loss $ 175 $ 25 $ 200 Prior service cost — — — Total expected to be recognized $ 175 $ 25 $ 200 Assets expected to be returned to the Company in 2016 $ — $ — $ — |
Schedule of expected benefits to be paid in the following years | (Dollars in thousands) For the Years Ending December 31: Cash Balance Plan SERP TOTAL 2016 654 154 808 2017 436 152 588 2018 452 150 602 2019 466 148 614 2020 402 146 548 2021-2025 2,053 688 2,741 Total $ 4,463 $ 1,438 $ 5,901 |
Schedule of target allocation of plan assets | Asset Category Target Weight Minimum Weight Maximum Weight Cash 0 % 0 % 10 % Equities: US 66 % 56 % 76 % Non-US 7 % 0 % 14 % Fixed Income 27 % 20 % 37 % |
Schedule of fair value measurement of pension plan | December 31, 2015 Level 1 Level 2 Level 3 (Dollars in thousands) Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Asset Category Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Cash $ 150 $ — $ — Equity Security: Large-Cap 106 1,333 — Mid-Cap 373 463 — Small-Cap 100 457 — Global and International 7 404 — Emerging Market — — — Fixed Income – Bonds 573 480 — Other — 648 — Total $ 1,309 $ 3,785 $ — December 31, 2014 Level 1 Level 2 Level 3 Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Asset Category Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Cash $ 66 $ — $ — Equity Security: Large-Cap 19 1,610 — Mid-Cap 469 500 — Small-Cap 509 — — Global and International 21 371 — Emerging Market — — — Fixed Income – Bonds 636 578 — Other — 705 — Total $ 1,720 $ 3,764 $ — |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
Loans to related parties roll forward | (Dollars in thousands) December 31, 2015 December 31, 2014 Beginning Balance $ 1,944 $ 1,994 Draws/Advances 132 229 Repayments (212 ) (279 ) Ending Balance $ 1,864 $ 1,944 |
REGULATORY MATTERS AND RESTRI39
REGULATORY MATTERS AND RESTRICTIONS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
REGULATORY MATTERS AND RESTRICTIONS [Abstract] | |
Regulatory capital requirements | For Capital Adequacy To Be Well (Dollars in thousands) Actual Purposes Capitalized Amount Ratio Amount Ratio Amount Ratio Total capital (to risk weighted assets) Company $ 40,252 20.39 % $ 15,790 8.00 % n/a n/a Bank 39,629 20.10 15,769 8.00 $ 19,712 10.00 % Tier 1 (to risk weighted assets) Company $ 37,768 19.13 % $ 11,843 6.00 % n/a n/a Bank 37,149 18.85 11,827 6.00 $ 15,769 8.00 % Common (to risk weighted assets) Company $ 26,391 13.37 % $ 8,882 4.50 % n/a n/a Bank 37,149 18.85 8,870 4.50 $ 12,812 6.50 % Tier 1 (to average total assets) Company $ 37,768 12.55 % $ 12,037 4.00 % n/a n/a Bank 37,149 12.35 12,028 4.00 $ 15,035 5.00 % December 31, 2014 For Capital Adequacy To Be Well (Dollars in thousands) Actual Purposes Capitalized Amount Ratio Amount Ratio Amount Ratio Total capital (to risk weighted assets) Company $ 38,101 19.03 % $ 16,014 8.00 % n/a n/a Bank 36,991 18.50 15,997 8.00 $ 19,996 10.00 % Tier 1 (to risk weighted assets) Company $ 35,587 17.78 % $ 8,007 4.00 % n/a n/a Bank 34,479 17.24 7,999 4.00 $ 11,998 6.00 % Tier 1 (to average total assets) Company $ 35,587 11.90 % $ 11,959 4.00 % n/a n/a Bank 34,479 11.54 11,953 4.00 $ 14,941 5.00 % |
HOLDING COMPANY CONDENSED FIN40
HOLDING COMPANY CONDENSED FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
HOLDING COMPANY CONDENSED FINANCIAL INFORMATION [Abstract] | |
Schedule of Condensed Balance Sheet | Condensed Balance Sheets: December 31, ( Dollars in thousands) 2015 2014 Assets: Cash and cash equivelents $ 224 $ 605 Investment in subsidiary Bank 35,603 35,528 Other assets 435 486 Total Assets $ 36,262 $ 36,619 Liabilities and Stockholders' Equity: Total liabilities $ 38 $ 41 Stockholders' equity 36,224 36,578 Total Liabilities and Stockholders' Equity $ 36,262 $ 36,619 |
Schedule of Condensed Income Statement | For the Years Ended December 31, Condensed Statements of Operations: 2015 2014 ( Dollars in thousands) Undistributed net earnings of subsidiary bank $ 541 $ 1,290 Expenses, net (194 ) (243 ) Net Income $ 347 $ 1,047 |
Schedule of Condensed Cash Flow | Condensed Cash Flows: ( Dollars in thousands) For the Years Ended December 31, 2015 2014 Cash Flows from operating activities: Net income $ 347 $ 1,047 Adjustments to reconcile net income to net cash used in operating activities: Undistributed net earnings of subsidiary (541 ) (1,290 ) (Increase) decrease in other assets 51 (43 ) Decrease in other liabilities (3 ) (1 ) Net cash used in operating activities (146 ) (287 ) Investing Activities: Dividends from subsidiary — 325 Net cash provided by investing activities — 325 Financing activities: Dividends paid (235 ) (363 ) Net cash used in financing activities (235 ) (363 ) Net decrease in cash and cash equivalents (381 ) (325 ) Cash and cash equivalents at beginning of year 605 930 Cash and cash equivalents at end of year $ 224 $ 605 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Schedule of commitments | (Dollars in thousands) Commercial letters of credit Other loan commitments Total commitments Less than one year $ 19 $ 12,375 $ 12,394 One to three years 250 5,487 5,737 Three to five years — 114 114 More than five years 93 4,455 4,548 Total $ 362 $ 22,431 $ 22,793 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
FAIR VALUE MEASUREMENT [Abstract] | |
Schedule of assets and liabilities measured at fair value on a recurring basis | (Dollars in thousands) Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Description December 31, 2015 (Level 1) (Level 2) (Level 3) Recurring: U.S. Agencies $ 30,433 $ — $ 30,433 $ — MBS Residential 40,934 — 40,934 — Municipals 8,574 — 8,574 — Mortgage servicing rights 14 — — 14 Total $ 79,955 $ — $ 79,941 $ 14 (Dollars in thousands) Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Description December 31, 2014 (Level 1) (Level 2) (Level 3) Recurring: U.S. Agencies $ 12,339 $ — $ 12,339 $ — MBS Residential 56,355 — 56,355 — Municipals 1,009 — 1,009 — Mortgage servicing rights 22 — — 22 Total $ 69,725 $ — $ 69,703 $ 22 |
Schedule of fair value of Level 3 assets | (Dollars in thousands) Mortgage Servicing Rights Beginning balance (December 31, 2014) $ 22 Amortization 8 Ending Balance (December 31, 2015) $ 14 |
Schedule of assets and liabilities measured at fair value on a non recurring basis | (Dollars in thousands) Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Description December 31, 2015 (Level 1) (Level 2) (Level 3) Nonrecurring: OREO $ 2,764 $ — $ — $ 2,764 Impaired loans: Commercial real estate 7,257 — — 7,257 Faith-based non-profit 16,148 — — 16,148 Residential real estate 2,512 — — 2,512 Consumer — — — — Total $ 28,681 $ — $ — $ 28,681 (Dollars in thousands) Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Description December 31, 2014 (Level 1) (Level 2) (Level 3) Nonrecurring: OREO $ 3,069 $ — $ — $ 3,069 Impaired loans: Commercial real estate 9,060 — — 9,060 Faith-based non-profit 17,119 — — 17,119 Residential real estate 4,214 — — 4,214 Consumer — — — — Total $ 33,462 $ — $ — $ 33,462 |
Schedule of Level 3 fair value measurement methods | Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands) Significant Significant Valuation Unobservable Unobservable Description December 31, 2015 Technique Inputs Input Value Nonrecurring: OREO $ 2,764 discounted appraisals collateral discounts 6 20 Impaired loans 25,917 discounted appraisals collateral discounts 6 20 Total $ 28,681 (Dollars in thousands) Significant Significant Valuation Unobservable Unobservable Description December 31, 2014 Technique Inputs Input Value Nonrecurring: OREO $ 3,069 discounted appraisals collateral discounts 6 20 Impaired loans 30,393 discounted appraisals collateral discounts 6 20 Total $ 33,462 |
Schedule of carrying amount and fair value of financial instruments | December 31, 2015 (Dollars in thousands) Carrying Estimated Amount Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 34,938 $ 34,938 $ 34,938 $ — $ — Investment securities available for sale 79,941 79,941 — 79,941 — Loans, net of allowances for loan losses 161,414 165,105 — — 165,105 Accrued interest receivable 785 785 785 — — Liabilities: Non-maturity deposits $ 121,315 $ 121,315 $ 121,315 $ — $ — Maturity deposits 133,385 132,687 — 132,687 — Other borrowings 938 889 — — 889 Accrued interest payable 95 95 95 — — December 31, 2014 (Dollars in thousands) Carrying Estimated Amount Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 35,574 $ 35,574 $ 35,574 $ — $ — Investment securities available for sale 69,703 69,703 — 69,703 — Loans, net of allowances for loan losses 171,648 175,165 175,165 Accrued interest receivable 816 816 816 — Liabilities: Non-maturity deposits $ 119,383 $ 119,383 $ 119,383 $ — $ — Maturity deposits 136,477 135,965 — 135,965 — Other borrowings 784 734 — — 734 Accrued interest payable 76 76 76 — — |
SUMMARY OF SIGNIFICANT ACCOUN43
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Summary of Cash Deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||
Federal Reserve required Average | $ 1,555 | $ 1,557 | |
Excess | 23,989 | $ 28,152 | |
Federal Funds Sold | 11 | ||
Core Deposits | 3,168 | $ 3,395 | |
Total cash and cash equivalents | $ 28,273 | $ 33,104 | $ 28,583 |
SUMMARY OF SIGNIFICANT ACCOUN44
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Summary of significant accounting policies [Line Items] | ||
Deposits held at other financial institutions | $ 30 | $ 100 |
Investments in FHLB stock | 300 | 300 |
Increase decrease In ALLL due to change in methodology | 425 | |
Unfunded commitments reserve | 10 | 34 |
Cash surrender value of bank-owned life insurance | 8,228 | 7,695 |
Other real estate owned | $ 2,764 | $ 3,069 |
Maturity period of interest-bearing time deposits in banks | 5 years | |
Residential Real Estate [Member] | ||
Summary of significant accounting policies [Line Items] | ||
Other real estate owned | $ 200 | |
Loans collateralized | 500 | |
Commercial Real Estate [Member] | ||
Summary of significant accounting policies [Line Items] | ||
Other real estate owned | $ 900 | |
Premises [Member] | Lower Range [Member] | ||
Summary of significant accounting policies [Line Items] | ||
Useful life of premises and equipment | 30 years | |
Premises [Member] | Upper Range [Member] | ||
Summary of significant accounting policies [Line Items] | ||
Useful life of premises and equipment | 50 years | |
Furniture and equipment [Member] | Lower Range [Member] | ||
Summary of significant accounting policies [Line Items] | ||
Useful life of premises and equipment | 6 years | |
Furniture and equipment [Member] | Upper Range [Member] | ||
Summary of significant accounting policies [Line Items] | ||
Useful life of premises and equipment | 10 years | |
Technology Equipment and Software [Member] | Lower Range [Member] | ||
Summary of significant accounting policies [Line Items] | ||
Useful life of premises and equipment | 3 years | |
Technology Equipment and Software [Member] | Upper Range [Member] | ||
Summary of significant accounting policies [Line Items] | ||
Useful life of premises and equipment | 5 years |
INVESTMENT SECURITIES (Schedule
INVESTMENT SECURITIES (Schedule of Collateral Pledged for Public Deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Pledged to Federal Reserve Bank [Member] | ||
Investment securities [Line Items] | ||
Funds pledged for public deposits | $ 830 | $ 1,008 |
Pledged to Public Housing [Member] | ||
Investment securities [Line Items] | ||
Funds pledged for public deposits | 2,886 | 3,816 |
Pledged to the State Treasurer [Member] | ||
Investment securities [Line Items] | ||
Funds pledged for public deposits | $ 19,643 | $ 18,115 |
INVESTMENT SECURITIES (Schedu46
INVESTMENT SECURITIES (Schedule of Investment Securities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Investment securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | $ 80,493 | $ 69,732 |
Available-for-sale Securities, Gross Unrealized Gains | 120 | 316 |
Available-for-sale Securities, Gross Unrealized Losses | (672) | (345) |
Available-for-sale Securities, Debt Securities | 79,941 | 69,703 |
U.S Agencies [Member] | ||
Investment securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 30,681 | 12,373 |
Available-for-sale Securities, Gross Unrealized Gains | 2 | 26 |
Available-for-sale Securities, Gross Unrealized Losses | (250) | (60) |
Available-for-sale Securities, Debt Securities | 30,433 | 12,339 |
MBS - Residential [Member] | ||
Investment securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 41,323 | 56,350 |
Available-for-sale Securities, Gross Unrealized Gains | 20 | 281 |
Available-for-sale Securities, Gross Unrealized Losses | (409) | (276) |
Available-for-sale Securities, Debt Securities | 40,934 | 56,355 |
Municipal - North Carolina [Member] | ||
Investment securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 8,489 | 1,009 |
Available-for-sale Securities, Gross Unrealized Gains | 98 | 9 |
Available-for-sale Securities, Gross Unrealized Losses | (13) | (9) |
Available-for-sale Securities, Debt Securities | $ 8,574 | $ 1,009 |
INVESTMENT SECURITIES (Schedu47
INVESTMENT SECURITIES (Schedule of Investment Securities Maturities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value | ||
Total debt securities | $ 79,941 | $ 69,703 |
U.S Agencies [Member] | ||
Fair Value | ||
Due within one year | 3,481 | 2,498 |
Due after one year through five years | 21,998 | 7,887 |
Due after five years through ten years | 4,954 | 1,954 |
Total debt securities | 30,433 | 12,339 |
Amortized Cost | ||
Due within one year | 3,500 | 2,499 |
Due after one year through five years | 22,181 | 7,874 |
Due after five years through ten years | 5,000 | 2,000 |
Total debt securities | 30,681 | 12,373 |
MBS - Residential [Member] | ||
Fair Value | ||
Due within one year | 5,750 | 10,114 |
Due after one year through five years | 15,526 | 24,003 |
Due after five years through ten years | 11,387 | 13,803 |
Due after ten years | 8,271 | 8,435 |
Total debt securities | 40,934 | 56,355 |
Amortized Cost | ||
Due within one year | 5,812 | 10,139 |
Due after one year through five years | 15,672 | 24,018 |
Due after five years through ten years | 11,480 | 13,771 |
Due after ten years | 8,359 | 8,422 |
Total debt securities | 41,323 | 56,350 |
Municipal - North Carolina [Member] | ||
Fair Value | ||
Due within one year | 262 | 162 |
Due after one year through five years | 738 | 268 |
Due after five years through ten years | 7,169 | 579 |
Due after ten years | 405 | |
Total debt securities | 8,574 | 1,009 |
Amortized Cost | ||
Due within one year | 260 | 161 |
Due after one year through five years | 738 | 260 |
Due after five years through ten years | 7,091 | 588 |
Due after ten years | 400 | |
Total debt securities | $ 8,489 | $ 1,009 |
INVESTMENT SECURITIES (Schedu48
INVESTMENT SECURITIES (Schedule of Securities in an Unrealized Loss Position) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Securities in an Unrealized Loss Position for Less than 12 Months | ||
Fair Value | $ 52,834 | $ 18,576 |
Unrealized Losses | (443) | (87) |
Securities in an Unrealized Loss Position for More than 12 Months | ||
Fair Value | 10,957 | 16,009 |
Unrealized Losses | (229) | (258) |
Securities Total | ||
Total Fair Value | 63,791 | 34,585 |
Total Unrealized Losses | (672) | (345) |
U.S Agencies [Member] | ||
Securities in an Unrealized Loss Position for Less than 12 Months | ||
Fair Value | 27,060 | 5,982 |
Unrealized Losses | (237) | (14) |
Securities in an Unrealized Loss Position for More than 12 Months | ||
Fair Value | 987 | 1,954 |
Unrealized Losses | (13) | (46) |
Securities Total | ||
Total Fair Value | 28,047 | 7,936 |
Total Unrealized Losses | (250) | (60) |
MBS - Residential [Member] | ||
Securities in an Unrealized Loss Position for Less than 12 Months | ||
Fair Value | 24,369 | 12,594 |
Unrealized Losses | (193) | (73) |
Securities in an Unrealized Loss Position for More than 12 Months | ||
Fair Value | 9,970 | 13,476 |
Unrealized Losses | (216) | (203) |
Securities Total | ||
Total Fair Value | 34,339 | 26,070 |
Total Unrealized Losses | (409) | $ (276) |
Municipal - North Carolina [Member] | ||
Securities in an Unrealized Loss Position for Less than 12 Months | ||
Fair Value | 1,405 | |
Unrealized Losses | $ (13) | |
Securities in an Unrealized Loss Position for More than 12 Months | ||
Fair Value | $ 579 | |
Unrealized Losses | (9) | |
Securities Total | ||
Total Fair Value | $ 1,405 | 579 |
Total Unrealized Losses | $ (13) | $ (9) |
INVESTMENT SECURITIES (Narrativ
INVESTMENT SECURITIES (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)N | Dec. 31, 2014USD ($)N | |
INVESTMENT SECURITIES [Abstract] | ||
Investment securities available for sale, at fair value | $ 79,941 | $ 69,703 |
Gross realized gains | 205 | |
Aggregate gross realized losses | $ 176 | |
Number of investment positions | N | 71 | 59 |
FHLB STOCK (Details)
FHLB STOCK (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
FHLB STOCK [Abstract] | ||
Required investment in FHLB stock as a percent of total assets | 0.09% | 0.09% |
Base amount, as a component of the maximum amount of FHLB stock that may be purchased | $ 15 | |
Percent of outstanding FHLB advances, as a component of the maximum amount of FHLB stock that may be purchased | 4.50% | |
Carrying value of FHLB stock | $ 0.3 | $ 0.3 |
ACCUMULATED OTHER COMPREHENSI51
ACCUMULATED OTHER COMPREHENSIVE LOSS (Schedule of Changes in Accumulated Other Comprehensive Income (Loss) by Component) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Unrealized Gains and Losses on Available-for-Sale Securities | ||
Balance, beginning | $ (17) | $ (404) |
Other comprehensive income (loss) before reclassifications | (316) | 396 |
Amounts reclassified from accumulated other comprehensive income (loss) | (17) | (9) |
Net current-period other comprehensive income (loss) | (333) | 387 |
Balance, ending | (350) | (17) |
Defined Benefit Pension Items | ||
Balance, beginning | (1,651) | (1,021) |
Other comprehensive income (loss) before reclassifications | $ (133) | (631) |
Amounts reclassified from accumulated other comprehensive income (loss). | 1 | |
Net current-period other comprehensive income (loss) | $ (133) | (630) |
Balance, ending | (1,784) | (1,651) |
Total | ||
Accumulated other comprehensive loss | (1,668) | (1,425) |
Other comprehensive income (loss) before reclassifications | (449) | (235) |
Amounts reclassified from accumulated other comprehensive income (loss) | (17) | (8) |
Net current-period other comprehensive income (loss) | (466) | (243) |
Accumulated other comprehensive loss | $ (2,134) | $ (1,668) |
ACCUMULATED OTHER COMPREHENSI52
ACCUMULATED OTHER COMPREHENSIVE LOSS (Schedule of reclassification adjustments from accumulated other comprehensive loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
RECLASSIFICATION ADJUSTMENTS FROM ACCUMULATED OTHER COMPREHENSIVE LOSS [Line items] | ||
Unrealized holding gains - investment securities available-for-sale, before tax | $ 29 | $ 14 |
Unrealized holding gains - investment securities available-for-sale, income tax expense | $ (12) | $ (5) |
Amortization of defined benefit pension, before tax | ||
Amount Reclassified from Accumulated Other Comprehensive Income | $ (17) | $ (8) |
Reclassification out of accumulated other comprehensive income | ||
RECLASSIFICATION ADJUSTMENTS FROM ACCUMULATED OTHER COMPREHENSIVE LOSS [Line items] | ||
Amount Reclassified from Accumulated Other Comprehensive Income | (17) | (8) |
Unrealized holding gains - investment securities available-for-sale | Reclassification out of accumulated other comprehensive income | ||
RECLASSIFICATION ADJUSTMENTS FROM ACCUMULATED OTHER COMPREHENSIVE LOSS [Line items] | ||
Unrealized holding gains - investment securities available-for-sale, before tax | (29) | (14) |
Unrealized holding gains - investment securities available-for-sale, income tax expense | 12 | 5 |
Unrealized holding loss - investment securities available-for-sale, net of tax | $ (17) | (9) |
Amortization of defined benefit pension | Reclassification out of accumulated other comprehensive income | ||
RECLASSIFICATION ADJUSTMENTS FROM ACCUMULATED OTHER COMPREHENSIVE LOSS [Line items] | ||
Amortization of defined benefit pension, before tax | 2 | |
Amortization of defined benefit pension, income tax expense | (1) | |
Amortization of defined benefit pension, net of tax | $ 1 |
LOANS AND ALLL (Schedule of Com
LOANS AND ALLL (Schedule of Composition of Loan Portfolio, Net of Deferred Fees and Costs, By Loan Classification) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Loans and allowance for loan losses ("ALLL") [Line Items] | |||
Loans, net of unearned income and deferred fees | $ 164,849 | $ 175,088 | |
Allowance for loan losses | (3,435) | (3,440) | $ (3,493) |
Loans, net | 161,414 | 171,648 | |
Commercial [Member] | |||
Loans and allowance for loan losses ("ALLL") [Line Items] | |||
Loans, net of unearned income and deferred fees | 7,540 | 7,253 | |
Allowance for loan losses | (329) | (353) | (184) |
Commercial Real Estate Construction [Member] | |||
Loans and allowance for loan losses ("ALLL") [Line Items] | |||
Loans, net of unearned income and deferred fees | 9,618 | 2,557 | |
Commercial Real Estate Owner Occupied [Member] | |||
Loans and allowance for loan losses ("ALLL") [Line Items] | |||
Loans, net of unearned income and deferred fees | 18,941 | 18,013 | |
Commercial Real Estate Other [Member] | |||
Loans and allowance for loan losses ("ALLL") [Line Items] | |||
Loans, net of unearned income and deferred fees | 15,481 | 19,493 | |
Faith Based Non-Profit Construction [Member] | |||
Loans and allowance for loan losses ("ALLL") [Line Items] | |||
Loans, net of unearned income and deferred fees | 4,800 | 6,156 | |
Faith Based Non-Profit Owner Occupied [Member] | |||
Loans and allowance for loan losses ("ALLL") [Line Items] | |||
Loans, net of unearned income and deferred fees | 78,228 | 84,499 | |
Faith Based Non-Profit Other [Member] | |||
Loans and allowance for loan losses ("ALLL") [Line Items] | |||
Loans, net of unearned income and deferred fees | 2,427 | 4,707 | |
Residential Real Estate First Mortgage [Member] | |||
Loans and allowance for loan losses ("ALLL") [Line Items] | |||
Loans, net of unearned income and deferred fees | 16,467 | 18,995 | |
Residential Real Estate Multifamily [Member] | |||
Loans and allowance for loan losses ("ALLL") [Line Items] | |||
Loans, net of unearned income and deferred fees | 2,701 | 3,001 | |
Residential Real Estate Home Equity [Member] | |||
Loans and allowance for loan losses ("ALLL") [Line Items] | |||
Loans, net of unearned income and deferred fees | 3,249 | 4,124 | |
Residential Real Estate Construction [Member] | |||
Loans and allowance for loan losses ("ALLL") [Line Items] | |||
Loans, net of unearned income and deferred fees | 122 | 506 | |
Consumer [Member] | |||
Loans and allowance for loan losses ("ALLL") [Line Items] | |||
Loans, net of unearned income and deferred fees | 1,035 | 1,232 | |
Allowance for loan losses | (21) | (28) | (19) |
Other [Member] | |||
Loans and allowance for loan losses ("ALLL") [Line Items] | |||
Loans, net of unearned income and deferred fees | 4,240 | 4,552 | |
Allowance for loan losses | $ (229) | $ (265) | $ (106) |
LOANS AND ALLL (Schedule of End
LOANS AND ALLL (Schedule of Ending Balances of Allownace for Loan Losses and Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Ending balances: Allowance for loan losses | |||
Individually evaluated for impairment | $ 631 | $ 276 | |
Collectively evaluated for impairment | 2,804 | 3,164 | |
Allowances for loan losses | 3,435 | 3,440 | $ 3,493 |
Ending balances: Loans | |||
Individually evaluated for impairment | 26,421 | 30,269 | |
Collectively evaluated for impairment | 138,428 | 144,819 | |
Loans, net of unearned income and deferred fees | $ 164,849 | $ 175,088 | |
Commercial [Member] | |||
Ending balances: Allowance for loan losses | |||
Individually evaluated for impairment | |||
Collectively evaluated for impairment | $ 329 | $ 353 | |
Allowances for loan losses | $ 329 | $ 353 | 184 |
Ending balances: Loans | |||
Individually evaluated for impairment | |||
Collectively evaluated for impairment | $ 7,540 | $ 7,253 | |
Loans, net of unearned income and deferred fees | 7,540 | 7,253 | |
Commercial Real Estate [Member] | |||
Ending balances: Allowance for loan losses | |||
Individually evaluated for impairment | 303 | 11 | |
Collectively evaluated for impairment | 536 | 568 | |
Allowances for loan losses | 839 | 579 | 808 |
Ending balances: Loans | |||
Individually evaluated for impairment | 7,517 | 9,012 | |
Collectively evaluated for impairment | 36,523 | 31,051 | |
Loans, net of unearned income and deferred fees | 44,040 | 40,063 | |
Faith Based Non-Profit [Member] | |||
Ending balances: Allowance for loan losses | |||
Individually evaluated for impairment | 261 | 6 | |
Collectively evaluated for impairment | 968 | 1,228 | |
Allowances for loan losses | 1,229 | 1,234 | 1,883 |
Ending balances: Loans | |||
Individually evaluated for impairment | 16,325 | 16,807 | |
Collectively evaluated for impairment | 69,130 | 78,555 | |
Loans, net of unearned income and deferred fees | 85,455 | 95,362 | |
Residential Real Estate [Member] | |||
Ending balances: Allowance for loan losses | |||
Individually evaluated for impairment | 67 | 259 | |
Collectively evaluated for impairment | 343 | 426 | |
Allowances for loan losses | 410 | 685 | 493 |
Ending balances: Loans | |||
Individually evaluated for impairment | 2,579 | 4,450 | |
Collectively evaluated for impairment | 19,960 | 22,176 | |
Loans, net of unearned income and deferred fees | $ 22,539 | $ 26,626 | |
Consumer [Member] | |||
Ending balances: Allowance for loan losses | |||
Individually evaluated for impairment | |||
Collectively evaluated for impairment | $ 21 | $ 28 | |
Allowances for loan losses | $ 21 | $ 28 | 19 |
Ending balances: Loans | |||
Individually evaluated for impairment | |||
Collectively evaluated for impairment | $ 1,035 | $ 1,232 | |
Loans, net of unearned income and deferred fees | $ 1,035 | $ 1,232 | |
Other [Member] | |||
Ending balances: Allowance for loan losses | |||
Individually evaluated for impairment | |||
Collectively evaluated for impairment | $ 229 | $ 265 | |
Allowances for loan losses | $ 229 | $ 265 | $ 106 |
Ending balances: Loans | |||
Individually evaluated for impairment | |||
Collectively evaluated for impairment | $ 4,240 | $ 4,552 | |
Loans, net of unearned income and deferred fees | $ 4,240 | $ 4,552 | |
Unallocated [Member] | |||
Ending balances: Allowance for loan losses | |||
Individually evaluated for impairment | |||
Collectively evaluated for impairment | $ 378 | $ 296 | |
Allowances for loan losses | $ 378 | $ 296 | |
Ending balances: Loans | |||
Individually evaluated for impairment | |||
Collectively evaluated for impairment | |||
Loans, net of unearned income and deferred fees |
LOANS AND ALLL (Schedule of Rep
LOANS AND ALLL (Schedule of Reported Investment in Loans, Net of Deferred Fees and Costs, by Portfolio Segment and Based on Impairment Method) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Beginning balance | $ 3,440 | $ 3,493 |
Charge-offs | (30) | (134) |
Recoveries | $ 25 | 31 |
Provision for loan losses | 50 | |
Ending balance | $ 3,435 | 3,440 |
Commercial [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Beginning balance | 353 | $ 184 |
Charge-offs | $ (3) | |
Recoveries | ||
Provision for loan losses | $ (21) | $ 169 |
Ending balance | 329 | 353 |
Commercial Real Estate [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Beginning balance | $ 579 | $ 808 |
Charge-offs | ||
Recoveries | ||
Provision for loan losses | $ 260 | $ (229) |
Ending balance | 839 | 579 |
Faith Based Non-Profit [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Beginning balance | $ 1,234 | $ 1,883 |
Charge-offs | ||
Recoveries | ||
Provision for loan losses | $ (5) | $ (649) |
Ending balance | 1,229 | 1,234 |
Residential Real Estate [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Beginning balance | 685 | 493 |
Charge-offs | (7) | (78) |
Recoveries | 20 | 22 |
Provision for loan losses | (288) | 248 |
Ending balance | 410 | 685 |
Consumer [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Beginning balance | 28 | 19 |
Charge-offs | (2) | (35) |
Recoveries | 1 | 1 |
Provision for loan losses | (6) | 43 |
Ending balance | 21 | 28 |
Other [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Beginning balance | 265 | 106 |
Charge-offs | (18) | (21) |
Recoveries | 4 | 8 |
Provision for loan losses | (22) | 172 |
Ending balance | 229 | $ 265 |
Unallocated [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Beginning balance | $ 296 | |
Charge-offs | ||
Recoveries | ||
Provision for loan losses | $ 82 | $ 296 |
Ending balance | $ 378 | $ 296 |
LOANS AND ALLL (Schedule of Imp
LOANS AND ALLL (Schedule of Impaired Loans with and without Valuation Allowances) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Loans with no related allowance recorded: | ||
Impaired loans with no related allowance - Unpaid Principal Balance | $ 10,558 | $ 16,632 |
Impaired loans with no related allowance - Recorded Investment | 10,545 | 16,657 |
Imapired loans with no related allowance - Interest earned | 356 | 854 |
Impaired loans with related allowance - Average Recorded Investment | 11,430 | 18,793 |
Loans with an allowance recorded: | ||
Impaired loans with allowance - Unpaid Principal Balance | 15,892 | 13,672 |
Impaired loans with allowance - Recorded Investment | 16,003 | 14,012 |
Impaired loans with related allowance - Related Allowance | 631 | 276 |
Impaired loans with related allowance - Interest earned | 759 | 632 |
Impaired loans with related allowance - Average Recorded Investment | 17,300 | 10,611 |
Total impaired loans | ||
Impaired loans with allowance - Unpaid Principal Balance | 26,450 | 30,304 |
Impaired loans with allowance - Recorded Investment | 26,548 | 30,669 |
Impaired loans with related allowance - Interest earned | 1,115 | 1,486 |
Impaired loans with related allowance - Average Recorded Investment | $ 28,730 | $ 29,404 |
Commercial [Member] | ||
Loans with no related allowance recorded: | ||
Impaired loans with no related allowance - Unpaid Principal Balance | ||
Impaired loans with no related allowance - Recorded Investment | ||
Imapired loans with no related allowance - Interest earned | ||
Impaired loans with related allowance - Average Recorded Investment | ||
Loans with an allowance recorded: | ||
Impaired loans with allowance - Unpaid Principal Balance | ||
Impaired loans with allowance - Recorded Investment | ||
Impaired loans with related allowance - Related Allowance | ||
Impaired loans with related allowance - Interest earned | ||
Impaired loans with related allowance - Average Recorded Investment | $ 1 | |
Commercial Real Estate Construction [Member] | ||
Loans with no related allowance recorded: | ||
Impaired loans with no related allowance - Unpaid Principal Balance | $ 77 | |
Impaired loans with no related allowance - Recorded Investment | 78 | |
Imapired loans with no related allowance - Interest earned | 6 | |
Impaired loans with related allowance - Average Recorded Investment | $ 137 | 186 |
Loans with an allowance recorded: | ||
Impaired loans with allowance - Unpaid Principal Balance | 278 | |
Impaired loans with allowance - Recorded Investment | 279 | |
Impaired loans with related allowance - Related Allowance | 1 | |
Impaired loans with related allowance - Interest earned | 23 | |
Impaired loans with related allowance - Average Recorded Investment | $ 172 | 176 |
Commercial Real Estate Owner Occupied [Member] | ||
Loans with no related allowance recorded: | ||
Impaired loans with no related allowance - Unpaid Principal Balance | 68 | 42 |
Impaired loans with no related allowance - Recorded Investment | 68 | 42 |
Imapired loans with no related allowance - Interest earned | 7 | 16 |
Impaired loans with related allowance - Average Recorded Investment | 59 | 2,818 |
Loans with an allowance recorded: | ||
Impaired loans with allowance - Unpaid Principal Balance | 4,637 | 4,760 |
Impaired loans with allowance - Recorded Investment | 4,677 | 4,800 |
Impaired loans with related allowance - Related Allowance | 303 | 10 |
Impaired loans with related allowance - Interest earned | 190 | 200 |
Impaired loans with related allowance - Average Recorded Investment | 4,712 | 1,164 |
Commercial Real Estate Other [Member] | ||
Loans with no related allowance recorded: | ||
Impaired loans with no related allowance - Unpaid Principal Balance | 2,813 | 3,855 |
Impaired loans with no related allowance - Recorded Investment | 2,815 | 3,872 |
Imapired loans with no related allowance - Interest earned | 85 | 100 |
Impaired loans with related allowance - Average Recorded Investment | $ 3,685 | $ 3,017 |
Loans with an allowance recorded: | ||
Impaired loans with allowance - Unpaid Principal Balance | ||
Impaired loans with allowance - Recorded Investment | ||
Impaired loans with related allowance - Related Allowance | ||
Impaired loans with related allowance - Interest earned | ||
Impaired loans with related allowance - Average Recorded Investment | $ 18 | $ 1,714 |
Faith Based Non-Profit Construction [Member] | ||
Loans with no related allowance recorded: | ||
Impaired loans with no related allowance - Unpaid Principal Balance | ||
Impaired loans with no related allowance - Recorded Investment | ||
Imapired loans with no related allowance - Interest earned | ||
Impaired loans with related allowance - Average Recorded Investment | ||
Loans with an allowance recorded: | ||
Impaired loans with allowance - Unpaid Principal Balance | ||
Impaired loans with allowance - Recorded Investment | ||
Impaired loans with related allowance - Related Allowance | ||
Impaired loans with related allowance - Interest earned | ||
Impaired loans with related allowance - Average Recorded Investment | ||
Faith Based Non-Profit Owner Occupied [Member] | ||
Loans with no related allowance recorded: | ||
Impaired loans with no related allowance - Unpaid Principal Balance | $ 5,413 | $ 9,744 |
Impaired loans with no related allowance - Recorded Investment | 5,426 | 9,764 |
Imapired loans with no related allowance - Interest earned | 230 | 558 |
Impaired loans with related allowance - Average Recorded Investment | 5,197 | 9,937 |
Loans with an allowance recorded: | ||
Impaired loans with allowance - Unpaid Principal Balance | 10,912 | 7,063 |
Impaired loans with allowance - Recorded Investment | 10,983 | 7,361 |
Impaired loans with related allowance - Related Allowance | 261 | 6 |
Impaired loans with related allowance - Interest earned | 567 | 327 |
Impaired loans with related allowance - Average Recorded Investment | $ 11,583 | $ 6,801 |
Faith Based Non-Profit Other [Member] | ||
Loans with no related allowance recorded: | ||
Impaired loans with no related allowance - Unpaid Principal Balance | ||
Impaired loans with no related allowance - Recorded Investment | ||
Imapired loans with no related allowance - Interest earned | ||
Impaired loans with related allowance - Average Recorded Investment | $ 40 | |
Loans with an allowance recorded: | ||
Impaired loans with allowance - Unpaid Principal Balance | ||
Impaired loans with allowance - Recorded Investment | ||
Impaired loans with related allowance - Related Allowance | ||
Impaired loans with related allowance - Interest earned | ||
Impaired loans with related allowance - Average Recorded Investment | ||
Residential Real Estate First Mortgage [Member] | ||
Loans with no related allowance recorded: | ||
Impaired loans with no related allowance - Unpaid Principal Balance | $ 1,926 | $ 2,894 |
Impaired loans with no related allowance - Recorded Investment | 1,898 | 2,881 |
Imapired loans with no related allowance - Interest earned | 24 | 172 |
Impaired loans with related allowance - Average Recorded Investment | 2,211 | 2,717 |
Loans with an allowance recorded: | ||
Impaired loans with allowance - Unpaid Principal Balance | 343 | 1,426 |
Impaired loans with allowance - Recorded Investment | 343 | 1,427 |
Impaired loans with related allowance - Related Allowance | 67 | 242 |
Impaired loans with related allowance - Interest earned | 2 | 76 |
Impaired loans with related allowance - Average Recorded Investment | $ 775 | $ 644 |
Residential Real Estate Multifamily [Member] | ||
Loans with no related allowance recorded: | ||
Impaired loans with no related allowance - Unpaid Principal Balance | ||
Impaired loans with no related allowance - Recorded Investment | ||
Imapired loans with no related allowance - Interest earned | ||
Impaired loans with related allowance - Average Recorded Investment | ||
Loans with an allowance recorded: | ||
Impaired loans with allowance - Unpaid Principal Balance | ||
Impaired loans with allowance - Recorded Investment | ||
Impaired loans with related allowance - Related Allowance | ||
Impaired loans with related allowance - Interest earned | ||
Impaired loans with related allowance - Average Recorded Investment | ||
Residential Real Estate Home Equity [Member] | ||
Loans with no related allowance recorded: | ||
Impaired loans with no related allowance - Unpaid Principal Balance | $ 338 | $ 20 |
Impaired loans with no related allowance - Recorded Investment | 338 | 20 |
Imapired loans with no related allowance - Interest earned | 10 | 2 |
Impaired loans with related allowance - Average Recorded Investment | $ 140 | 70 |
Loans with an allowance recorded: | ||
Impaired loans with allowance - Unpaid Principal Balance | 145 | |
Impaired loans with allowance - Recorded Investment | 145 | |
Impaired loans with related allowance - Related Allowance | 17 | |
Impaired loans with related allowance - Interest earned | 6 | |
Impaired loans with related allowance - Average Recorded Investment | $ 39 | $ 112 |
Residential Real Estate Construction [Member] | ||
Loans with no related allowance recorded: | ||
Impaired loans with no related allowance - Unpaid Principal Balance | ||
Impaired loans with no related allowance - Recorded Investment | ||
Imapired loans with no related allowance - Interest earned | ||
Impaired loans with related allowance - Average Recorded Investment | ||
Loans with an allowance recorded: | ||
Impaired loans with allowance - Unpaid Principal Balance | ||
Impaired loans with allowance - Recorded Investment | ||
Impaired loans with related allowance - Related Allowance | ||
Impaired loans with related allowance - Interest earned | ||
Impaired loans with related allowance - Average Recorded Investment | ||
Consumer [Member] | ||
Loans with no related allowance recorded: | ||
Impaired loans with no related allowance - Unpaid Principal Balance | ||
Impaired loans with no related allowance - Recorded Investment | ||
Imapired loans with no related allowance - Interest earned | ||
Impaired loans with related allowance - Average Recorded Investment | $ 1 | $ 8 |
Loans with an allowance recorded: | ||
Impaired loans with allowance - Unpaid Principal Balance | ||
Impaired loans with allowance - Recorded Investment | ||
Impaired loans with related allowance - Related Allowance | ||
Impaired loans with related allowance - Interest earned | ||
Impaired loans with related allowance - Average Recorded Investment |
LOANS AND ALLL (Schedule of Det
LOANS AND ALLL (Schedule of Details of TDR Loans that were Restructured and Loans Modified as TDRs) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)N | |
Total | |
Number of loans, TDRs | N | 3 |
Pre-modification Outstanding Recorded Investment | $ 258 |
Post-modification Outstanding Recorded Investment | $ 252 |
Subsequently defaulted | |
Number of TDRs subsequently defaulted - Below Market Interest Rate | N | 1 |
Subsequently defaulted Recorded Investment - Below Market Interest Rate | $ 66 |
Residential Real Estate First Mortgage [Member] | |
Below Market Interest Rate | |
Number of loans, TDRs | N | 2 |
Pre-modification Outstanding Recorded Investment | $ 129 |
Post-modification Outstanding Recorded Investment | $ 125 |
Extended Payment Terms | |
Number of loans, TDRs | N | 1 |
Pre-modification Outstanding Recorded Investment | $ 129 |
Post-modification Outstanding Recorded Investment | $ 127 |
LOANS AND ALLL (Schedule of Rec
LOANS AND ALLL (Schedule of Recorded Investment in Non-accrual and Loans Past Due Over 90 Days Still on Accrual by Class of Loans) (Details) $ in Thousands | Dec. 31, 2015USD ($)N | Dec. 31, 2014USD ($)N |
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Non-accrual Loans | $ | $ 5,020 | $ 5,920 |
Number of non-accrual loans | N | 44 | 46 |
Loans past due over 90 days still accruing | $ | $ 356 | $ 3,023 |
Number of loans past due over 90 days still accruing | N | 3 | 13 |
Commercial [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Non-accrual Loans | $ | ||
Number of non-accrual loans | N | ||
Loans past due over 90 days still accruing | $ | ||
Number of loans past due over 90 days still accruing | N | ||
Commercial Real Estate Construction [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Non-accrual Loans | $ | ||
Number of non-accrual loans | N | ||
Loans past due over 90 days still accruing | $ | ||
Number of loans past due over 90 days still accruing | N | ||
Commercial Real Estate Owner Occupied [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Non-accrual Loans | $ | $ 42 | |
Number of non-accrual loans | N | 1 | |
Loans past due over 90 days still accruing | $ | ||
Number of loans past due over 90 days still accruing | N | ||
Commercial Real Estate Other [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Non-accrual Loans | $ | $ 2,513 | $ 2,860 |
Number of non-accrual loans | N | 2 | 3 |
Loans past due over 90 days still accruing | $ | $ 771 | |
Number of loans past due over 90 days still accruing | N | 1 | |
Faith Based Non-Profit Construction [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Non-accrual Loans | $ | ||
Number of non-accrual loans | N | ||
Loans past due over 90 days still accruing | $ | ||
Number of loans past due over 90 days still accruing | N | ||
Faith Based Non-Profit Owner Occupied [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Non-accrual Loans | $ | $ 15 | $ 133 |
Number of non-accrual loans | N | 1 | 2 |
Loans past due over 90 days still accruing | $ | $ 356 | $ 541 |
Number of loans past due over 90 days still accruing | N | 3 | 2 |
Faith Based Non-Profit Other [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Non-accrual Loans | $ | ||
Number of non-accrual loans | N | ||
Loans past due over 90 days still accruing | $ | $ 15 | |
Number of loans past due over 90 days still accruing | N | 1 | |
Residential Real Estate First Mortgage [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Non-accrual Loans | $ | $ 2,154 | $ 2,720 |
Number of non-accrual loans | N | 36 | 33 |
Loans past due over 90 days still accruing | $ | $ 1,696 | |
Number of loans past due over 90 days still accruing | N | 8 | |
Residential Real Estate Multifamily [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Non-accrual Loans | $ | ||
Number of non-accrual loans | N | ||
Loans past due over 90 days still accruing | $ | ||
Number of loans past due over 90 days still accruing | N | ||
Residential Real Estate Home Equity [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Non-accrual Loans | $ | $ 338 | $ 165 |
Number of non-accrual loans | N | 5 | 7 |
Loans past due over 90 days still accruing | $ | ||
Number of loans past due over 90 days still accruing | N | ||
Residential Real Estate Construction [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Non-accrual Loans | $ | ||
Number of non-accrual loans | N | ||
Loans past due over 90 days still accruing | $ | ||
Number of loans past due over 90 days still accruing | N | ||
Consumer [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Non-accrual Loans | $ | ||
Number of non-accrual loans | N | ||
Loans past due over 90 days still accruing | $ | ||
Number of loans past due over 90 days still accruing | N | 1 | |
Other [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Non-accrual Loans | $ | ||
Number of non-accrual loans | N | ||
Loans past due over 90 days still accruing | $ | ||
Number of loans past due over 90 days still accruing | N |
LOANS AND ALLL (Schedule of Loa
LOANS AND ALLL (Schedule of Loans Not Past Due, and Aging of Past Due Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Aging Schedule of Loans Receivable | ||
Total past due | $ 3,803 | $ 12,556 |
Current | 161,046 | 162,532 |
Loans, net of unearned income and deferred fees | 164,849 | 175,088 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | 1,633 | 2,823 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | 232 | 2,055 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | $ 1,938 | 7,678 |
Commercial [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | 3 | |
Current | $ 7,540 | 7,250 |
Loans, net of unearned income and deferred fees | $ 7,540 | 7,253 |
Commercial [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | $ 3 | |
Commercial [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | ||
Commercial [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | ||
Commercial Real Estate Construction [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | $ 40 | |
Current | 9,578 | $ 2,557 |
Loans, net of unearned income and deferred fees | 9,618 | $ 2,557 |
Commercial Real Estate Construction [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | $ 40 | |
Commercial Real Estate Construction [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | ||
Commercial Real Estate Construction [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | ||
Commercial Real Estate Owner Occupied [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | $ 397 | $ 432 |
Current | 18,544 | 17,581 |
Loans, net of unearned income and deferred fees | 18,941 | 18,013 |
Commercial Real Estate Owner Occupied [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | $ 397 | 69 |
Commercial Real Estate Owner Occupied [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | 321 | |
Commercial Real Estate Owner Occupied [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | 42 | |
Commercial Real Estate Other [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | $ 71 | 4,815 |
Current | 15,410 | 14,678 |
Loans, net of unearned income and deferred fees | $ 15,481 | 19,493 |
Commercial Real Estate Other [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | 25 | |
Commercial Real Estate Other [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | $ 71 | 1,188 |
Commercial Real Estate Other [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | $ 3,602 | |
Faith Based Non-Profit Construction [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | ||
Current | $ 4,800 | $ 6,156 |
Loans, net of unearned income and deferred fees | $ 4,800 | $ 6,156 |
Faith Based Non-Profit Construction [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | ||
Faith Based Non-Profit Construction [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | ||
Faith Based Non-Profit Construction [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | ||
Faith Based Non-Profit Owner Occupied [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | $ 592 | $ 3,032 |
Current | 77,636 | 81,467 |
Loans, net of unearned income and deferred fees | 78,228 | 84,499 |
Faith Based Non-Profit Owner Occupied [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | $ 237 | 1,923 |
Faith Based Non-Profit Owner Occupied [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | 435 | |
Faith Based Non-Profit Owner Occupied [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | $ 355 | 674 |
Faith Based Non-Profit Other [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | 15 | |
Current | $ 2,427 | 4,692 |
Loans, net of unearned income and deferred fees | $ 2,427 | $ 4,707 |
Faith Based Non-Profit Other [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | ||
Faith Based Non-Profit Other [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | ||
Faith Based Non-Profit Other [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | $ 15 | |
Residential Real Estate First Mortgage [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | $ 2,226 | 4,170 |
Current | 14,241 | 14,825 |
Loans, net of unearned income and deferred fees | 16,467 | 18,995 |
Residential Real Estate First Mortgage [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | 688 | 745 |
Residential Real Estate First Mortgage [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | 161 | 103 |
Residential Real Estate First Mortgage [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | 1,377 | $ 3,322 |
Residential Real Estate Multifamily [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | 17 | |
Current | 2,684 | $ 3,001 |
Loans, net of unearned income and deferred fees | 2,701 | $ 3,001 |
Residential Real Estate Multifamily [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | $ 17 | |
Residential Real Estate Multifamily [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | ||
Residential Real Estate Multifamily [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | ||
Residential Real Estate Home Equity [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | $ 335 | $ 70 |
Current | 2,914 | 4,054 |
Loans, net of unearned income and deferred fees | 3,249 | 4,124 |
Residential Real Estate Home Equity [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | $ 129 | $ 47 |
Residential Real Estate Home Equity [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | ||
Residential Real Estate Home Equity [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | $ 206 | $ 23 |
Residential Real Estate Construction [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | $ 122 | |
Current | $ 506 | |
Loans, net of unearned income and deferred fees | $ 122 | $ 506 |
Residential Real Estate Construction [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | $ 122 | |
Residential Real Estate Construction [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | ||
Residential Real Estate Construction [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | ||
Consumer [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | $ 11 | |
Current | $ 1,035 | 1,221 |
Loans, net of unearned income and deferred fees | $ 1,035 | 1,232 |
Consumer [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | $ 11 | |
Consumer [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | ||
Consumer [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | ||
Other [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | $ 3 | $ 8 |
Current | 4,237 | 4,544 |
Loans, net of unearned income and deferred fees | 4,240 | $ 4,552 |
Other [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | $ 3 | |
Other [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due | $ 8 | |
Other [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Aging Schedule of Loans Receivable | ||
Total past due |
LOANS AND ALLL (Schedule of All
LOANS AND ALLL (Schedule of All Non-accrual Loans and Loans 90 or More Days Past Due and Still on Accrual for Period) (Details) $ in Thousands | Dec. 31, 2015USD ($)N | Dec. 31, 2014USD ($)N |
LOANS AND ALLL [Abstract] | ||
Loans past due over 90 days still accruing | $ | $ 356 | $ 3,023 |
Number of loans past due over 90 days still accruing | N | 3 | 13 |
Non-accrual loans less than 30 days | $ | $ 3,082 | $ 721 |
Number of non-accrual loans less than 30 days | N | 11 | 11 |
Non-accrual loans 30-59 days | $ | $ 195 | $ 485 |
Number of non-accrual loans 30-59 days | N | 3 | 6 |
Non-accrual loans 60-89 days | $ | $ 161 | $ 59 |
Number of non-accrual loans 60-89 days | N | 3 | 1 |
Non-accrual loans 90+ days | $ | $ 1,582 | $ 4,655 |
Number of non-accrual loans 90+ days | N | 27 | 28 |
Non-accrual Loans | $ | $ 5,020 | $ 5,920 |
Number of non-accrual loans | N | 44 | 46 |
LOANS AND ALLL (Schedule of Ris
LOANS AND ALLL (Schedule of Risk Category of Loans by Class of Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | $ 164,849 | $ 175,088 |
Pass [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | 135,669 | 142,585 |
Special Mention [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | 8,205 | 10,215 |
Substandard [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | $ 20,975 | $ 22,288 |
Doubtful [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | ||
Commercial [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | $ 7,540 | $ 7,253 |
Commercial [Member] | Pass [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | $ 1,869 | 1,279 |
Commercial [Member] | Special Mention [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | 3,159 | |
Commercial [Member] | Substandard [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | $ 5,671 | $ 2,815 |
Commercial [Member] | Doubtful [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | ||
Commercial Real Estate Construction [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | $ 9,618 | $ 2,557 |
Commercial Real Estate Construction [Member] | Pass [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | $ 9,618 | $ 2,202 |
Commercial Real Estate Construction [Member] | Special Mention [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | ||
Commercial Real Estate Construction [Member] | Substandard [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | $ 355 | |
Commercial Real Estate Construction [Member] | Doubtful [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | ||
Commercial Real Estate Owner Occupied [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | $ 18,941 | $ 18,013 |
Commercial Real Estate Owner Occupied [Member] | Pass [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | 18,601 | 17,596 |
Commercial Real Estate Owner Occupied [Member] | Special Mention [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | 272 | 306 |
Commercial Real Estate Owner Occupied [Member] | Substandard [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | $ 68 | $ 111 |
Commercial Real Estate Owner Occupied [Member] | Doubtful [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | ||
Commercial Real Estate Other [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | $ 15,481 | $ 19,493 |
Commercial Real Estate Other [Member] | Pass [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | 11,720 | 14,623 |
Commercial Real Estate Other [Member] | Special Mention [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | 394 | 457 |
Commercial Real Estate Other [Member] | Substandard [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | $ 3,367 | $ 4,773 |
Commercial Real Estate Other [Member] | Doubtful [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | ||
Faith Based Non-Profit Construction [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | $ 4,800 | $ 6,156 |
Faith Based Non-Profit Construction [Member] | Pass [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | $ 4,800 | $ 6,156 |
Faith Based Non-Profit Construction [Member] | Special Mention [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | ||
Faith Based Non-Profit Construction [Member] | Substandard [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | ||
Faith Based Non-Profit Construction [Member] | Doubtful [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | ||
Faith Based Non-Profit Owner Occupied [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | $ 78,228 | $ 84,499 |
Faith Based Non-Profit Owner Occupied [Member] | Pass [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | 61,836 | 68,963 |
Faith Based Non-Profit Owner Occupied [Member] | Special Mention [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | 7,243 | 6,160 |
Faith Based Non-Profit Owner Occupied [Member] | Substandard [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | $ 9,149 | $ 9,376 |
Faith Based Non-Profit Owner Occupied [Member] | Doubtful [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | ||
Faith Based Non-Profit Other [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | $ 2,427 | $ 4,707 |
Faith Based Non-Profit Other [Member] | Pass [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | $ 2,427 | $ 4,707 |
Faith Based Non-Profit Other [Member] | Special Mention [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | ||
Faith Based Non-Profit Other [Member] | Substandard [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | ||
Faith Based Non-Profit Other [Member] | Doubtful [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | ||
Residential Real Estate First Mortgage [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | $ 16,467 | $ 18,995 |
Residential Real Estate First Mortgage [Member] | Pass [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | 13,733 | 14,328 |
Residential Real Estate First Mortgage [Member] | Special Mention [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | 256 | 88 |
Residential Real Estate First Mortgage [Member] | Substandard [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | $ 2,478 | $ 4,579 |
Residential Real Estate First Mortgage [Member] | Doubtful [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | ||
Residential Real Estate Multifamily [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | $ 2,701 | $ 3,001 |
Residential Real Estate Multifamily [Member] | Pass [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | 2,613 | 2,910 |
Residential Real Estate Multifamily [Member] | Special Mention [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | 30 | 31 |
Residential Real Estate Multifamily [Member] | Substandard [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | $ 58 | $ 60 |
Residential Real Estate Multifamily [Member] | Doubtful [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | ||
Residential Real Estate Home Equity [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | $ 3,249 | $ 4,124 |
Residential Real Estate Home Equity [Member] | Pass [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | $ 3,070 | $ 3,910 |
Residential Real Estate Home Equity [Member] | Special Mention [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | ||
Residential Real Estate Home Equity [Member] | Substandard [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | $ 179 | $ 214 |
Residential Real Estate Home Equity [Member] | Doubtful [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | ||
Residential Real Estate Construction [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | $ 122 | $ 506 |
Residential Real Estate Construction [Member] | Pass [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | $ 122 | $ 506 |
Residential Real Estate Construction [Member] | Special Mention [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | ||
Residential Real Estate Construction [Member] | Substandard [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | ||
Residential Real Estate Construction [Member] | Doubtful [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | ||
Consumer [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | $ 1,035 | $ 1,232 |
Consumer [Member] | Pass [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | 1,020 | 1,213 |
Consumer [Member] | Special Mention [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | 10 | 14 |
Consumer [Member] | Substandard [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | $ 5 | $ 5 |
Consumer [Member] | Doubtful [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | ||
Other [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | $ 4,240 | $ 4,552 |
Other [Member] | Pass [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | $ 4,240 | $ 4,552 |
Other [Member] | Special Mention [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | ||
Other [Member] | Substandard [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees | ||
Other [Member] | Doubtful [Member] | ||
Loans and allowance for loan losses ("ALLL") [Line Items] | ||
Loans, net of unearned income and deferred fees |
LOANS AND ALLL (Narrative) (Det
LOANS AND ALLL (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Loans and allowance for loan losses ("ALLL") [Line Items] | |||
Increase Decrease in Loans and Allowance for Loan Losses Due to Change in Methodology | $ 425 | ||
Allowances for loan losses | $ 3,435 | $ 3,440 | $ 3,493 |
Allowance for loan losses, percentage of net loans | 2.08% | 1.96% | |
Change in loans | $ (10,200) | ||
Change in impaired loans balance | (3,800) | ||
Increase in reserve for impaired loans | 355 | ||
Loans collectively evaluated for impairment | 138,428 | $ 144,819 | |
Allowance for loan losses collectively evaluated for impairment | 2,804 | 3,164 | |
Net charge-offs | 5 | 103 | |
Non-accrual Loans | $ 5,020 | 5,920 | |
Non-accrual loans secured by faith-based non-profit real estate, percentage | 0.30% | ||
Non-accrual loans secured by real estate excluding faith-based non-profit, percentage | 99.70% | ||
TDRs in compliance with modified terms | $ 21,600 | ||
TDRs in compliance with modified terms, percentage | 88.57% | ||
Concentration risk - percentage of financing receivables in faith-based non-profit organizations | 51.84% | ||
Concentration risk - percentage of reserve allocated to faith-based non-profit organizations | 35.78% | ||
TDRs specific reserves | $ 600 | 900 | |
Unrecognized income on non-accrual loans | 100 | $ 300 | |
Change in unrecognized income on non-accrual loans | $ (200) | ||
Annualized Net Charge-offs, percentage | 0.00% | 0.06% | |
Faith Based Non-Profit Owner Occupied [Member] | |||
Loans and allowance for loan losses ("ALLL") [Line Items] | |||
Non-accrual Loans | $ 15 | $ 133 | |
Change in non-accrual loans | (900) | ||
Change in total loans past due | $ 8,800 | ||
Commercial Real Estate Owner Occupied [Member] | |||
Loans and allowance for loan losses ("ALLL") [Line Items] | |||
Non-accrual Loans | 42 | ||
Commercial Real Estate Other [Member] | |||
Loans and allowance for loan losses ("ALLL") [Line Items] | |||
Non-accrual Loans | $ 2,513 | 2,860 | |
Residential Real Estate First Mortgage [Member] | |||
Loans and allowance for loan losses ("ALLL") [Line Items] | |||
Non-accrual Loans | $ 2,154 | $ 2,720 |
BANK PREMISES AND EQUIPMENT (Su
BANK PREMISES AND EQUIPMENT (Summary of Bank Premises and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Bank premises and equipment [Line Items] | ||
Bank premises and equipment, gross | $ 11,429 | $ 10,890 |
Less: accumulated depreciation and amortization | 7,017 | 6,597 |
Bank premises and equipment, net | 4,412 | 4,293 |
Land [Member] | ||
Bank premises and equipment [Line Items] | ||
Bank premises and equipment, gross | 747 | 747 |
Buildings and leasehold improvements [Member] | ||
Bank premises and equipment [Line Items] | ||
Bank premises and equipment, gross | 7,411 | 7,263 |
Furniture and equipment [Member] | ||
Bank premises and equipment [Line Items] | ||
Bank premises and equipment, gross | 2,652 | 2,565 |
Capital Lease [Member] | ||
Bank premises and equipment [Line Items] | ||
Bank premises and equipment, gross | 597 | $ 315 |
Construction in Progress [Member] | ||
Bank premises and equipment [Line Items] | ||
Bank premises and equipment, gross | $ 22 |
BANK PREMISES AND EQUIPMENT (Na
BANK PREMISES AND EQUIPMENT (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
BANK PREMISES AND EQUIPMENT [Abstract] | ||
Depreciation | $ 0.4 | $ 0.4 |
DEPOSITS (Summary of Maturities
DEPOSITS (Summary of Maturities of Time Deposits) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Maturities of certificates of deposits | |
2,016 | $ 119,454 |
2,017 | 5,235 |
2,018 | 8,183 |
2,019 | 193 |
2,020 | 320 |
Total | $ 133,385 |
DEPOSITS (Summary of Principal
DEPOSITS (Summary of Principal Maturities of Time Deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Maturities of time deposits over $250,000 | ||
Three months or less | $ 3,259 | $ 5,132 |
Over three months to six months | 513 | 1,238 |
Over six months to twelve months | 5,229 | 6,382 |
Over one year to five years | 8,718 | 1,509 |
Total | $ 17,719 | $ 14,261 |
Weighted Average Interest Rate on maturities of time deposits over $250,000 | ||
Three months or less | 0.38% | 0.35% |
Over three months to six months | 0.10% | 0.31% |
Over six months to twelve months | 0.38% | 0.55% |
Over one year to five years | 0.96% | 0.69% |
Total | 0.66% | 0.47% |
DEPOSITS (Narrative) (Details)
DEPOSITS (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
DEPOSITS [Abstract] | ||
Interest expense for time deposits greater than $250,000 | $ 83 | $ 65 |
Deposits from related parties | 1,100 | 1,200 |
Deposits over threshold | $ 55,000 | $ 55,000 |
LEASES (Schedule of Future Mini
LEASES (Schedule of Future Minimum Payments for Capital Leases) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Future minimum capital lease payments | |
2,016 | $ 110 |
2,017 | 57 |
2,018 | 56 |
2,019 | 53 |
2,020 | $ 28 |
Thereafter | |
Total | $ 304 |
LEASES (Schedule of Future Mi69
LEASES (Schedule of Future Minimum Payments for Operating Leases) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Future minimum operating lease payments | |
2,016 | $ 47 |
2,017 | 7 |
Total | $ 54 |
LEASES (Schedule of Future Subl
LEASES (Schedule of Future Sublease Rental Revenue) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Minimum sublease rentals | |
2,016 | $ 222 |
2,017 | 152 |
2,018 | 60 |
2,019 | 62 |
2,020 | 48 |
Total | $ 544 |
LEASES ( Narrative) (Details)
LEASES ( Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
LEASES [Abstract] | ||
Capital lease interest rate | 1.83% | |
Capital lease interest expense | $ 5 | |
Rent expense for operating leases | 100 | $ 100 |
Rental income from subleases | $ 200 | $ 200 |
BORROWINGS (Schedule of Maturit
BORROWINGS (Schedule of Maturities of FHLB Advances) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Maturities of Federal Home Loan Bank Advances | |
2,016 | $ 24 |
2,017 | 25 |
2,018 | 26 |
2,019 | 27 |
Thereafter | 532 |
FHLB advances | $ 634 |
Average Interest Rate | |
2,016 | 0.50% |
2,017 | 0.50% |
2,018 | 0.50% |
2,019 | 0.50% |
Thereafter | 0.50% |
Federal Home Loan Bank interest rate | 0.50% |
BORROWINGS (Narrative) (Details
BORROWINGS (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
BORROWINGS [Abstract] | ||
FHLB advances, maturing fully in 2020 | $ 634 | |
Federal Home Loan Bank interest rate | 0.50% | |
Capital leases | $ 300 | |
Capital leases, average interest rate | 1.83% | |
Interest expense on FHLB advances | $ 3 | $ 3 |
Federal funds unused funds | 6,100 | |
Federal funds lines of credit | 10,000 | |
Loans securing FHLB advances | $ 6,700 | $ 7,300 |
INCOME TAXES (Schedule of Compo
INCOME TAXES (Schedule of Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income tax expense (benefit) | ||
Current | $ (14) | $ 380 |
Deferred | 90 | 172 |
Income tax expense (benefit) | $ 76 | $ 552 |
INCOME TAXES (Schedule of Recon
INCOME TAXES (Schedule of Reconciliation of Reported Income Tax Expense Amount of Tax Expense Computed by Multiplying Income Before Income Taxes by Statutory Federal Income Tax Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
INCOME TAXES [Abstract] | ||
Statutory federal income tax rate | 34.00% | 34.00% |
Tax provision at statutory rate | $ 144 | $ 543 |
Increase (decrease) in income taxes resulting from: | ||
State income taxes net of federal benefit | 70 | 124 |
Tax exempt interest income | (34) | $ (8) |
Disallowed interest expense | 1 | |
Increase in deferred tax valuation allowance | (26) | $ (22) |
Cash surrender value of life insurance | (80) | (69) |
Other | 1 | (16) |
Income tax expense (benefit) | $ 76 | $ 552 |
INCOME TAXES (Schedule of Tax E
INCOME TAXES (Schedule of Tax Effect of Cumulative Temporary Differences and Carry Forwards that Gave Rise to Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Accrued pension expense | $ 225 | $ 282 |
Adjustments, defined benefit plans | 1,032 | 982 |
Deferred loan fees | 55 | 171 |
Excess book over tax provision for loan loss expense | 1,262 | 1,296 |
Federal net operating loss carryforward | 127 | 127 |
State net economic loss carryforward | 143 | 170 |
Impairment on investments | 72 | 72 |
OREO write-downs | 372 | 307 |
Deferred gain on other real estate owned | 4 | 4 |
Premises and equipment | 93 | 123 |
Alternative minimum tax | 511 | 485 |
Unrealized losses on securities available for sale, net | 203 | 11 |
Other, net | 96 | 77 |
Total deferred tax assets | 4,195 | 4,107 |
Valuation allowance for deferred tax assets | (174) | (200) |
Net of valuation allowance deferred tax asset | 4,021 | 3,907 |
Deferred tax liabilities: | ||
Other | (109) | (147) |
Total deferred tax liabilities | (109) | (147) |
Net deferred tax assets | 3,912 | 3,760 |
Tax Receivable, net | 352 | 354 |
Deferred tax assets and taxes receivable, net | $ 4,264 | $ 4,114 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) $ in Millions | Dec. 31, 2015USD ($) |
INCOME TAXES [Abstract] | |
Net operating loss carryforwards expiring in 2027 | $ 0.4 |
EMPLOYEE BENEFIT PLANS (Schedul
EMPLOYEE BENEFIT PLANS (Schedule of Actual Asset Allocation in Defined Benefit Plans) (Details) - Cash Balance Plan [Member] | Dec. 31, 2015 | Dec. 31, 2014 |
Employee benefit plans [Line Items] | ||
Asset Allocations | 100.00% | 100.00% |
Equity Securities [Member] | ||
Employee benefit plans [Line Items] | ||
Asset Allocations | 63.60% | 63.80% |
Debt Securities [Member] | ||
Employee benefit plans [Line Items] | ||
Asset Allocations | 33.40% | 35.00% |
All other assets [Member] | ||
Employee benefit plans [Line Items] | ||
Asset Allocations | 3.00% | 1.20% |
EMPLOYEE BENEFIT PLANS (Sched79
EMPLOYEE BENEFIT PLANS (Schedule of Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Components of Net Period Pension Cost | ||
Service cost | $ 172 | $ 156 |
Interest cost | 281 | 316 |
Expected return on plan assets | (365) | (349) |
Amortization of prior service cost and recognized net actuarial gain | 351 | 92 |
Net periodic benefit cost | 439 | 215 |
Cash Balance Plan [Member] | ||
Components of Net Period Pension Cost | ||
Service cost | 172 | 156 |
Interest cost | 210 | 236 |
Expected return on plan assets | (365) | (349) |
Amortization of prior service cost and recognized net actuarial gain | 331 | 87 |
Net periodic benefit cost | $ 348 | $ 130 |
SERP Plan [Member] | ||
Components of Net Period Pension Cost | ||
Service cost | ||
Interest cost | $ 71 | $ 80 |
Expected return on plan assets | ||
Amortization of prior service cost and recognized net actuarial gain | $ 20 | $ 5 |
Net periodic benefit cost | $ 91 | $ 85 |
EMPLOYEE BENEFIT PLANS (Sched80
EMPLOYEE BENEFIT PLANS (Schedule of Changes in Projected Benefit Obligations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Change in projected benefit obligation: | |||
Benefit obligation, beginning of year | $ 8,271 | $ 8,543 | $ 7,592 |
Service cost | 172 | 156 | |
Interest cost | 281 | 316 | |
Actuarial gain | 130 | 976 | |
Benefits and expenses paid | (855) | (497) | |
Benefit obligation, end of year | 8,271 | 8,543 | |
Change in plan assets: | |||
Fair value of plan assets | 5,094 | 5,484 | 5,233 |
Actual return on plan assets | (39) | 244 | |
Employer contributions | 504 | 504 | |
Fair value of plan assets | 5,094 | 5,484 | |
Underfunded status | (3,177) | (3,059) | |
Cash Balance Plan [Member] | |||
Change in projected benefit obligation: | |||
Benefit obligation, beginning of year | 6,142 | 6,432 | 5,637 |
Service cost | 172 | 156 | |
Interest cost | 210 | 236 | |
Actuarial gain | 29 | 746 | |
Benefits and expenses paid | (701) | (343) | |
Benefit obligation, end of year | 6,142 | 6,432 | |
Change in plan assets: | |||
Fair value of plan assets | 5,094 | 5,484 | 5,233 |
Actual return on plan assets | (39) | 244 | |
Employer contributions | 400 | 350 | 350 |
Fair value of plan assets | 5,094 | 5,484 | |
Underfunded status | (1,048) | (948) | |
SERP Plan [Member] | |||
Change in projected benefit obligation: | |||
Benefit obligation, beginning of year | 2,129 | $ 2,111 | $ 1,955 |
Service cost | |||
Interest cost | $ 71 | $ 80 | |
Actuarial gain | 101 | 230 | |
Benefits and expenses paid | $ (200) | (154) | (154) |
Benefit obligation, end of year | $ 2,129 | $ 2,111 | |
Change in plan assets: | |||
Fair value of plan assets | |||
Actual return on plan assets | |||
Employer contributions | $ 154 | $ 154 | |
Fair value of plan assets | |||
Underfunded status | $ (2,129) | $ (2,111) |
EMPLOYEE BENEFIT PLANS (Sched81
EMPLOYEE BENEFIT PLANS (Schedule of Pre-tax Amounts Included in Accumulated Other Comprehensive Income Expected to be Recognized in 2014) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Employee benefit plans [Line Items] | ||
Unrecoginzed net actuarial loss | $ 2,816 | $ 2,632 |
Amortization of defined benefit pension, before tax | ||
Total amount included in accumulated other comprehensive loss | $ 2,816 | $ 2,632 |
Cash Balance Plan [Member] | ||
Employee benefit plans [Line Items] | ||
Unrecoginzed net actuarial loss | $ 2,229 | $ 2,126 |
Amortization of defined benefit pension, before tax | ||
Total amount included in accumulated other comprehensive loss | $ 2,229 | $ 2,126 |
SERP Plan [Member] | ||
Employee benefit plans [Line Items] | ||
Unrecoginzed net actuarial loss | $ 587 | $ 506 |
Amortization of defined benefit pension, before tax | ||
Total amount included in accumulated other comprehensive loss | $ 587 | $ 506 |
EMPLOYEE BENEFIT PLANS (Sched82
EMPLOYEE BENEFIT PLANS (Schedule of Weighted Average Assumptions) (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Balance Plan [Member] | ||
Employee benefit plans [Line Items] | ||
Discount Rate | 3.75% | 3.50% |
Expected long-term return on plan assets | 7.00% | 7.00% |
Rate of Compensation Increase | 3.00% | 3.00% |
SERP Plan [Member] | ||
Employee benefit plans [Line Items] | ||
Discount Rate | 3.75% | 3.50% |
Rate of Compensation Increase | 3.00% | 3.00% |
EMPLOYEE BENEFIT PLANS (Sched83
EMPLOYEE BENEFIT PLANS (Schedule of Amounts in Accumulated Other Comprehensive Loss Expected to be Recognized in Net Periodic Costs) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
To be recognized in following period: | |
Net actuarial loss | $ 200 |
Prior service cost | |
Total expected to be recognized | $ 200 |
Assets expected to be returned to the Company in 2016 | |
Cash Balance Plan [Member] | |
To be recognized in following period: | |
Net actuarial loss | $ 175 |
Prior service cost | |
Total expected to be recognized | $ 175 |
Assets expected to be returned to the Company in 2016 | |
SERP Plan [Member] | |
To be recognized in following period: | |
Net actuarial loss | $ 25 |
Prior service cost | |
Total expected to be recognized | $ 25 |
Assets expected to be returned to the Company in 2016 |
EMPLOYEE BENEFIT PLANS (Sched84
EMPLOYEE BENEFIT PLANS (Schedule of Estimated Expected Benefits Payments for Cash Balance Plan and SERP) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Future Benefit Payments | |
2,016 | $ 808 |
2,017 | 588 |
2,018 | 602 |
2,019 | 614 |
2,020 | 548 |
2021-2025 | 2,741 |
Total | 5,901 |
Cash Balance Plan [Member] | |
Future Benefit Payments | |
2,016 | 654 |
2,017 | 436 |
2,018 | 452 |
2,019 | 466 |
2,020 | 402 |
2021-2025 | 2,053 |
Total | 4,463 |
SERP Plan [Member] | |
Future Benefit Payments | |
2,016 | 154 |
2,017 | 152 |
2,018 | 150 |
2,019 | 148 |
2,020 | 146 |
2021-2025 | 688 |
Total | $ 1,438 |
EMPLOYEE BENEFIT PLANS (Sched85
EMPLOYEE BENEFIT PLANS (Schedule of Target Range of Allocation Percentages for Each Major Category of Plan Assets) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Cash [Member] | |
Target Asset Allocations | |
Target asset allocations | 0.00% |
Cash [Member] | Lower Range [Member] | |
Target Asset Allocations | |
Target asset allocations | 0.00% |
Cash [Member] | Upper Range [Member] | |
Target Asset Allocations | |
Target asset allocations | 10.00% |
Securities - US [Member] | |
Target Asset Allocations | |
Target asset allocations | 66.00% |
Securities - US [Member] | Lower Range [Member] | |
Target Asset Allocations | |
Target asset allocations | 56.00% |
Securities - US [Member] | Upper Range [Member] | |
Target Asset Allocations | |
Target asset allocations | 76.00% |
Securities - Non-US [Member] | |
Target Asset Allocations | |
Target asset allocations | 7.00% |
Securities - Non-US [Member] | Lower Range [Member] | |
Target Asset Allocations | |
Target asset allocations | 0.00% |
Securities - Non-US [Member] | Upper Range [Member] | |
Target Asset Allocations | |
Target asset allocations | 14.00% |
Fixed Income Bonds [Member] | |
Target Asset Allocations | |
Target asset allocations | 27.00% |
Fixed Income Bonds [Member] | Lower Range [Member] | |
Target Asset Allocations | |
Target asset allocations | 20.00% |
Fixed Income Bonds [Member] | Upper Range [Member] | |
Target Asset Allocations | |
Target asset allocations | 37.00% |
EMPLOYEE BENEFIT PLANS (Sched86
EMPLOYEE BENEFIT PLANS (Schedule of Company Groups Assets and Liabilities at Fair Value in Three Levels, Based on Markets in Which Assets and Liabilities are Traded and Reliability of Assumptions Used to Determine Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Employee benefit plans [Line Items] | ||
Fair value of plan assets | $ 5,094 | $ 5,484 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Employee benefit plans [Line Items] | ||
Fair value of plan assets | 1,309 | 1,720 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Employee benefit plans [Line Items] | ||
Fair value of plan assets | $ 3,785 | $ 3,764 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Employee benefit plans [Line Items] | ||
Fair value of plan assets | ||
Cash [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Employee benefit plans [Line Items] | ||
Fair value of plan assets | $ 150 | $ 66 |
Cash [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Employee benefit plans [Line Items] | ||
Fair value of plan assets | ||
Cash [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Employee benefit plans [Line Items] | ||
Fair value of plan assets | ||
Large-Cap Equity Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Employee benefit plans [Line Items] | ||
Fair value of plan assets | $ 106 | $ 19 |
Large-Cap Equity Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Employee benefit plans [Line Items] | ||
Fair value of plan assets | $ 1,333 | $ 1,610 |
Large-Cap Equity Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Employee benefit plans [Line Items] | ||
Fair value of plan assets | ||
Mid-Cap Equity Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Employee benefit plans [Line Items] | ||
Fair value of plan assets | $ 373 | $ 469 |
Mid-Cap Equity Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Employee benefit plans [Line Items] | ||
Fair value of plan assets | $ 463 | $ 500 |
Mid-Cap Equity Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Employee benefit plans [Line Items] | ||
Fair value of plan assets | ||
Small-Cap Equity Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Employee benefit plans [Line Items] | ||
Fair value of plan assets | $ 100 | $ 509 |
Small-Cap Equity Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Employee benefit plans [Line Items] | ||
Fair value of plan assets | $ 457 | |
Small-Cap Equity Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Employee benefit plans [Line Items] | ||
Fair value of plan assets | ||
Global and International Equity Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Employee benefit plans [Line Items] | ||
Fair value of plan assets | $ 7 | $ 21 |
Global and International Equity Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Employee benefit plans [Line Items] | ||
Fair value of plan assets | $ 404 | $ 371 |
Global and International Equity Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Employee benefit plans [Line Items] | ||
Fair value of plan assets | ||
Emerging Market Equity Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Employee benefit plans [Line Items] | ||
Fair value of plan assets | ||
Emerging Market Equity Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Employee benefit plans [Line Items] | ||
Fair value of plan assets | ||
Emerging Market Equity Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Employee benefit plans [Line Items] | ||
Fair value of plan assets | ||
Fixed Income Bonds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Employee benefit plans [Line Items] | ||
Fair value of plan assets | $ 573 | $ 636 |
Fixed Income Bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Employee benefit plans [Line Items] | ||
Fair value of plan assets | $ 480 | $ 578 |
Fixed Income Bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Employee benefit plans [Line Items] | ||
Fair value of plan assets | ||
Other [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Employee benefit plans [Line Items] | ||
Fair value of plan assets | ||
Other [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Employee benefit plans [Line Items] | ||
Fair value of plan assets | $ 648 | $ 705 |
Other [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Employee benefit plans [Line Items] | ||
Fair value of plan assets |
EMPLOYEE BENEFIT PLANS ( Narrat
EMPLOYEE BENEFIT PLANS ( Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2002 | |
Employee benefit plans [Line Items] | ||||
Contributions to plan | $ 504 | $ 504 | ||
Purchase of Bank Owned Life Insurance | 300 | 1,500 | ||
Increase in cash surrender value of bank owned life insurance | 233 | 205 | ||
Cash surrender value of bank-owned life insurance | $ 8,228 | 7,695 | ||
Proceeds from death benefit of bank-owned life insurance policies | 201 | |||
Benefits paid | $ 855 | 497 | ||
Underfunded Status | $ (3,177) | (3,059) | ||
Required Rate of return | 103.00% | |||
Cash Balance Plan [Member] | ||||
Employee benefit plans [Line Items] | ||||
Contributions to plan | $ 400 | $ 350 | 350 | |
Benefits paid | 701 | 343 | ||
Underfunded Status | (1,048) | (948) | ||
SERP Plan [Member] | ||||
Employee benefit plans [Line Items] | ||||
Contributions to plan | 154 | 154 | ||
Purchase of Bank Owned Life Insurance | $ 12,900 | |||
Increase in cash surrender value of bank owned life insurance | 500 | 1,500 | ||
Proceeds from death benefit of bank-owned life insurance policies | 201 | |||
Benefits paid | $ 200 | 154 | 154 | |
Underfunded Status | (2,129) | (2,111) | ||
SERP Plan [Member] | Executive officers | ||||
Employee benefit plans [Line Items] | ||||
Increase in cash surrender value of bank owned life insurance | 300 | 1,500 | ||
401(k) Plan [Member] | ||||
Employee benefit plans [Line Items] | ||||
Contributions to plan | $ 200 | |||
Maximum percentage of compensation employee may contribute | 12.00% | |||
Maximum percent of compensation for employer's match | 6.00% | |||
Benefit liability | $ 100 | 200 | ||
Post-retirement Plan [Member] | ||||
Employee benefit plans [Line Items] | ||||
Benefit liability | 200 | 200 | ||
Split-Dollar Benefits [Member] | ||||
Employee benefit plans [Line Items] | ||||
Benefit liability | $ 200 | $ 200 |
RELATED PARTY TRANSACTIONS (Sch
RELATED PARTY TRANSACTIONS (Schedule of Loans to Related Parties) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Loans from related parties | ||
Beginning Balance | $ 1,944 | $ 1,994 |
Draws/Advances | 132 | 229 |
Repayments | (212) | (279) |
Ending Balance | $ 1,864 | $ 1,944 |
RELATED PARTY TRANSACTIONS (Nar
RELATED PARTY TRANSACTIONS (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Receivables [Member] | ||
Related party transactions [Line Items] | ||
Unused loans receivable | $ 0.3 | $ 0.3 |
REGULATORY MATTERS AND RESTRI90
REGULATORY MATTERS AND RESTRICTIONS (Schedule of Regulatory Capital Requirements) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Holding Company [Member] | ||
Total Capital | ||
Total Capital | $ 40,252 | $ 38,101 |
Total Capital (to risk-weighted assets) ratio | 20.39% | 19.03% |
Amount of capital for adequacy purposes | $ 15,790 | $ 16,014 |
Amount of capital for adequacy purposes, ratio | 8.00% | 8.00% |
To be well-capitalized | ||
To be well-capitalized, ratio | 0.00% | 0.00% |
Tier 1 Capital (to risk-weighted assets) | ||
Tier 1 Capital | $ 37,768 | $ 35,587 |
Tier 1 Capital (to risk-weighted assets) ratio | 19.13% | 17.78% |
Amount of Tier 1 Capital for adequacy purposes | $ 11,843 | $ 8,007 |
Amount of Tier 1 Capital for adequacy purposes, ratio | 6.00% | 4.00% |
Tier 1 Capital to be well-capitalized | ||
Tier 1 Capital to be well-capitalized, ratio | 0.00% | 0.00% |
Common Equity Tier 1 Capital (to risk weighted assets) | ||
Common Equity Tier 1 Capital | $ 26,391 | |
Common Equity Tier I Capital (to risk-weighted assets) ratio | 13.37% | |
Amount of Common equity Tier 1 Capital for adequacy purposes | $ 8,882 | |
Amount of Common equity Tier 1 Capital for adequacy purposes, ratio | 4.50% | |
Common Equity Tier 1 Capital to be well-capitalized | ||
Common Equity Tier 1 Capital to be well-capitalized, ratio | 0.00% | |
Tier 1 Capital (to average assets) | ||
Tier 1 Capital | $ 37,768 | $ 35,587 |
Tier 1 Capital (to average assets) ratio | 12.55% | 11.90% |
Amount of Tier 1 Capital for adequacy purposes | $ 12,037 | $ 11,959 |
Amount of Tier 1 Capital for adequacy purposes, ratio | 4.00% | 4.00% |
Tier 1 Capital to be well-capitalized | ||
Tier 1 Capital to be well-capitalized, ratio | 0.00% | 0.00% |
Bank [Member] | ||
Total Capital | ||
Total Capital | $ 39,629 | $ 36,991 |
Total Capital (to risk-weighted assets) ratio | 20.10% | 18.50% |
Amount of capital for adequacy purposes | $ 15,769 | $ 15,997 |
Amount of capital for adequacy purposes, ratio | 8.00% | 8.00% |
To be well-capitalized | $ 19,712 | $ 19,996 |
To be well-capitalized, ratio | 10.00% | 10.00% |
Tier 1 Capital (to risk-weighted assets) | ||
Tier 1 Capital | $ 37,149 | $ 34,479 |
Tier 1 Capital (to risk-weighted assets) ratio | 18.85% | 17.24% |
Amount of Tier 1 Capital for adequacy purposes | $ 11,827 | $ 7,999 |
Amount of Tier 1 Capital for adequacy purposes, ratio | 6.00% | 4.00% |
Tier 1 Capital to be well-capitalized | $ 15,769 | $ 11,998 |
Tier 1 Capital to be well-capitalized, ratio | 8.00% | 6.00% |
Common Equity Tier 1 Capital (to risk weighted assets) | ||
Common Equity Tier 1 Capital | $ 37,149 | |
Common Equity Tier I Capital (to risk-weighted assets) ratio | 18.85% | |
Amount of Common equity Tier 1 Capital for adequacy purposes | $ 8,870 | |
Amount of Common equity Tier 1 Capital for adequacy purposes, ratio | 4.50% | |
Common Equity Tier 1 Capital to be well-capitalized | $ 12,812 | |
Common Equity Tier 1 Capital to be well-capitalized, ratio | 6.50% | |
Tier 1 Capital (to average assets) | ||
Tier 1 Capital | $ 37,149 | $ 34,479 |
Tier 1 Capital (to average assets) ratio | 12.35% | 11.54% |
Amount of Tier 1 Capital for adequacy purposes | $ 12,028 | $ 11,953 |
Amount of Tier 1 Capital for adequacy purposes, ratio | 4.00% | 4.00% |
Tier 1 Capital to be well-capitalized | $ 15,035 | $ 14,941 |
Tier 1 Capital to be well-capitalized, ratio | 5.00% | 5.00% |
Bank [Member] | Minimum [Member] | ||
Tier 1 Capital (to risk-weighted assets) | ||
Tier 1 Capital (to risk-weighted assets) ratio | 8.00% |
HOLDING COMPANY CONDENSED FIN91
HOLDING COMPANY CONDENSED FINANCIAL INFORMATION (Schedule of Condensed Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets: | |||
Cash and cash equivalents | $ 28,273 | $ 33,104 | $ 28,583 |
Other assets | 1,206 | 1,172 | |
TOTAL ASSETS | 298,250 | 298,385 | |
Liabilities and Stockholders' Equity: | |||
Total liabilities | 262,026 | 261,807 | |
Stockholders' equity | 36,224 | 36,578 | 36,137 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 298,250 | 298,385 | |
Holding Company [Member] | |||
Assets: | |||
Cash and cash equivalents | 224 | 605 | $ 930 |
Investment in subsidiary Bank | 35,603 | 35,528 | |
Other assets | 435 | 486 | |
TOTAL ASSETS | 36,262 | 36,619 | |
Liabilities and Stockholders' Equity: | |||
Total liabilities | 38 | 41 | |
Stockholders' equity | 36,224 | 36,578 | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 36,262 | $ 36,619 |
HOLDING COMPANY CONDENSED FIN92
HOLDING COMPANY CONDENSED FINANCIAL INFORMATION (Schedule of Condensed Income Statement) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Holding company condensed financial information [Line Items] | ||
Net income | $ 347 | $ 1,047 |
Holding Company [Member] | ||
Holding company condensed financial information [Line Items] | ||
Undistributed net earnings of subsidiary bank | 541 | 1,290 |
Expenses, net | (194) | (243) |
Net income | $ 347 | $ 1,047 |
HOLDING COMPANY CONDENSED FIN93
HOLDING COMPANY CONDENSED FINANCIAL INFORMATION (Schedule of Condensed Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flows from operating activities: | ||
Net income | $ 347 | $ 1,047 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Decrease in other liabilities | 1,041 | (402) |
Net cash provided by operating activities | 2,498 | 1,578 |
Investing Activities: | ||
Net cash provided by (used in) investing activities | (6,088) | 7,436 |
Financing activities: | ||
Dividends paid | (235) | (363) |
Net cash used in financing activities | (1,241) | (4,493) |
Net increase (decrease) in cash and cash equivalents | (4,831) | 4,521 |
Cash and cash equivalents as of the beginning of the period | 33,104 | 28,583 |
Cash and cash equivalents as of the end of the period | 28,273 | 33,104 |
Holding Company [Member] | ||
Cash Flows from operating activities: | ||
Net income | 347 | 1,047 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Undistributed net earnings of subsidiary | (541) | (1,290) |
(Increase) decrease in other assets | 51 | (43) |
Decrease in other liabilities | (3) | (1) |
Net cash provided by operating activities | $ (146) | (287) |
Investing Activities: | ||
Dividends from subsidiary | 325 | |
Net cash provided by (used in) investing activities | 325 | |
Financing activities: | ||
Dividends paid | $ (235) | (363) |
Net cash used in financing activities | (235) | (363) |
Net increase (decrease) in cash and cash equivalents | (381) | (325) |
Cash and cash equivalents as of the beginning of the period | 605 | 930 |
Cash and cash equivalents as of the end of the period | $ 224 | $ 605 |
COMMITMENTS AND CONTINGENCIES94
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments and contingencies [LineItems] | |
Guarantee Obligations less than 1 year | $ 12,394 |
Guarantee Obligations 1 to 3 years | 5,737 |
Guarantee Obligations 3 to 5 years | 114 |
Guarantee Obligations more than 5 years | 4,548 |
Obligations to extend credit | 22,793 |
Commerical Letters of Credit [Member] | |
Commitments and contingencies [LineItems] | |
Guarantee Obligations less than 1 year | 19 |
Guarantee Obligations 1 to 3 years | $ 250 |
Guarantee Obligations 3 to 5 years | |
Guarantee Obligations more than 5 years | $ 93 |
Obligations to extend credit | 362 |
Other Commercial Loan Commitments [Member] | |
Commitments and contingencies [LineItems] | |
Guarantee Obligations less than 1 year | 12,375 |
Guarantee Obligations 1 to 3 years | 5,487 |
Guarantee Obligations 3 to 5 years | 114 |
Guarantee Obligations more than 5 years | 4,455 |
Obligations to extend credit | $ 22,431 |
FAIR VALUE MEASUREMENT (Schedul
FAIR VALUE MEASUREMENT (Schedule of Assets Measured at Fair Value on Recurring Basis) (Details) - Fair Value Measured on a Recurring Basis [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair value measurement [Line Items] | ||
Fair value of assets | $ 79,955 | $ 69,725 |
Mortgage Servicing Rights [Member] | ||
Fair value measurement [Line Items] | ||
Fair value of assets | $ 14 | $ 22 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair value measurement [Line Items] | ||
Fair value of assets | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Mortgage Servicing Rights [Member] | ||
Fair value measurement [Line Items] | ||
Fair value of assets | ||
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair value measurement [Line Items] | ||
Fair value of assets | $ 79,941 | $ 69,703 |
Significant Other Observable Inputs (Level 2) [Member] | Mortgage Servicing Rights [Member] | ||
Fair value measurement [Line Items] | ||
Fair value of assets | ||
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair value measurement [Line Items] | ||
Fair value of assets | $ 14 | $ 22 |
Significant Unobservable Inputs (Level 3) [Member] | Mortgage Servicing Rights [Member] | ||
Fair value measurement [Line Items] | ||
Fair value of assets | 14 | 22 |
U.S Agencies [Member] | ||
Fair value measurement [Line Items] | ||
Fair value of assets | $ 30,433 | $ 12,339 |
U.S Agencies [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair value measurement [Line Items] | ||
Fair value of assets | ||
U.S Agencies [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair value measurement [Line Items] | ||
Fair value of assets | $ 30,433 | $ 12,339 |
U.S Agencies [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair value measurement [Line Items] | ||
Fair value of assets | ||
MBS - Residential [Member] | ||
Fair value measurement [Line Items] | ||
Fair value of assets | $ 40,934 | $ 56,355 |
MBS - Residential [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair value measurement [Line Items] | ||
Fair value of assets | ||
MBS - Residential [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair value measurement [Line Items] | ||
Fair value of assets | $ 40,934 | $ 56,355 |
MBS - Residential [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair value measurement [Line Items] | ||
Fair value of assets | ||
Municipal [Member] | ||
Fair value measurement [Line Items] | ||
Fair value of assets | $ 8,574 | $ 1,009 |
Municipal [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair value measurement [Line Items] | ||
Fair value of assets | ||
Municipal [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair value measurement [Line Items] | ||
Fair value of assets | $ 8,574 | $ 1,009 |
Municipal [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair value measurement [Line Items] | ||
Fair value of assets |
FAIR VALUE MEASUREMENT (Sched96
FAIR VALUE MEASUREMENT (Schedule of Change in All Recurring Level 3 Assets) (Details) - Fair Value Measured on a Recurring Basis [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Fair value measurement [Line Items] | |
Balance beginning | $ 69,725 |
Balance ending | 79,955 |
Significant Unobservable Inputs (Level 3) [Member] | |
Fair value measurement [Line Items] | |
Balance beginning | 22 |
Balance ending | 14 |
Mortgage Servicing Rights [Member] | |
Fair value measurement [Line Items] | |
Balance beginning | 22 |
Balance ending | 14 |
Mortgage Servicing Rights [Member] | Significant Unobservable Inputs (Level 3) [Member] | |
Fair value measurement [Line Items] | |
Balance beginning | 22 |
Amortization | 8 |
Balance ending | $ 14 |
FAIR VALUE MEASUREMENT (Sched97
FAIR VALUE MEASUREMENT (Schedule of Assets Measured at Fair Value on Nonrecurring Basis and Quantitative Information about Level 3 Fair Value Measurements) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Non-Recurring Fair Value Measurements | ||
OREO | $ 2,764 | $ 3,069 |
Other Real Estate Owned- Fair Value [Member] | ||
Non-Recurring Fair Value Measurements | ||
Valuation technique | discounted appraisals | discounted appraisals |
Significant Unobservable Inputs | collateral discounts | collateral discounts |
General range of significant input values, minimum | 6.00% | 6.00% |
General range of significant input values, maximum | 20.00% | 20.00% |
Impaired Loans [Member] | ||
Non-Recurring Fair Value Measurements | ||
Valuation technique | discounted appraisals | discounted appraisals |
Significant Unobservable Inputs | collateral discounts | collateral discounts |
General range of significant input values, minimum | 6.00% | 6.00% |
General range of significant input values, maximum | 20.00% | 20.00% |
Fair Value Measured on a Non-Recurring Basis [Member] | ||
Non-Recurring Fair Value Measurements | ||
OREO | $ 2,764 | $ 3,069 |
Impaired Loans - Commercial Real Estate | 7,257 | 9,060 |
Impaired Loans - Faith-based non-profit | 16,148 | 17,119 |
Impaired Loans - Residential real estate | $ 2,512 | $ 4,214 |
Impaired Loans - Consumer | ||
Total Fair Value, non-recurring | $ 28,681 | $ 33,462 |
Fair Value Measured on a Non-Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Non-Recurring Fair Value Measurements | ||
OREO | ||
Impaired Loans - Commercial Real Estate | ||
Impaired Loans - Faith-based non-profit | ||
Impaired Loans - Residential real estate | ||
Impaired Loans - Consumer | ||
Total Fair Value, non-recurring | ||
Fair Value Measured on a Non-Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Non-Recurring Fair Value Measurements | ||
OREO | ||
Impaired Loans - Commercial Real Estate | ||
Impaired Loans - Faith-based non-profit | ||
Impaired Loans - Residential real estate | ||
Impaired Loans - Consumer | ||
Total Fair Value, non-recurring | ||
Fair Value Measured on a Non-Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Non-Recurring Fair Value Measurements | ||
OREO | $ 2,764 | $ 3,069 |
Impaired Loans - Commercial Real Estate | 7,257 | 9,060 |
Impaired Loans - Faith-based non-profit | 16,148 | 17,119 |
Impaired Loans - Residential real estate | $ 2,512 | $ 4,214 |
Impaired Loans - Consumer | ||
Total Fair Value, non-recurring | $ 28,681 | $ 33,462 |
FAIR VALUE MEASUREMENT (Sched98
FAIR VALUE MEASUREMENT (Schedule of Carrying Amounts and Associated Estimated Fair Value of Financial Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets: | |||
Cash, cash equivalents and interest-bearing time deposits | $ 28,273 | $ 33,104 | $ 28,583 |
Investment securities available for sale, at fair value | 79,941 | 69,703 | |
Loans, net of allowances for loan losses | 161,414 | 171,648 | |
Accrued interest receivable | 785 | 816 | |
Liabilities: | |||
Other borrowings | 938 | 784 | |
Carrying Amount [Member] | |||
Assets: | |||
Cash, cash equivalents and interest-bearing time deposits | 34,938 | 35,574 | |
Investment securities available for sale, at fair value | 79,941 | 69,703 | |
Loans, net of allowances for loan losses | 161,414 | 171,648 | |
Accrued interest receivable | 785 | 816 | |
Liabilities: | |||
Non-maturity deposits | 121,315 | 119,383 | |
Maturity deposits | 133,385 | 136,477 | |
Other borrowings | 938 | 784 | |
Accrued interest payable | 95 | 76 | |
Fair Value [Member] | |||
Assets: | |||
Cash, cash equivalents and interest-bearing time deposits | 34,938 | 35,574 | |
Investment securities available for sale, at fair value | 79,941 | 69,703 | |
Loans, net of allowances for loan losses | 165,105 | 175,165 | |
Accrued interest receivable | 785 | 816 | |
Liabilities: | |||
Non-maturity deposits | 121,315 | 119,383 | |
Maturity deposits | 132,687 | 135,965 | |
Other borrowings | 889 | 734 | |
Accrued interest payable | 95 | 76 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Assets: | |||
Cash, cash equivalents and interest-bearing time deposits | $ 34,938 | $ 35,574 | |
Investment securities available for sale, at fair value | |||
Loans, net of allowances for loan losses | |||
Accrued interest receivable | $ 785 | $ 816 | |
Liabilities: | |||
Non-maturity deposits | $ 121,315 | $ 119,383 | |
Maturity deposits | |||
Other borrowings | |||
Accrued interest payable | $ 95 | $ 76 | |
Significant Other Observable Inputs (Level 2) [Member] | |||
Assets: | |||
Cash, cash equivalents and interest-bearing time deposits | |||
Investment securities available for sale, at fair value | $ 79,941 | $ 69,703 | |
Loans, net of allowances for loan losses | |||
Accrued interest receivable | |||
Liabilities: | |||
Non-maturity deposits | |||
Maturity deposits | $ 132,687 | $ 135,965 | |
Other borrowings | |||
Accrued interest payable | |||
Significant Unobservable Inputs (Level 3) [Member] | |||
Assets: | |||
Cash, cash equivalents and interest-bearing time deposits | |||
Investment securities available for sale, at fair value | |||
Loans, net of allowances for loan losses | $ 165,105 | $ 175,165 | |
Accrued interest receivable | |||
Liabilities: | |||
Non-maturity deposits | |||
Maturity deposits | |||
Other borrowings | $ 889 | $ 734 | |
Accrued interest payable |
PREFERRED STOCK (Narrative) (De
PREFERRED STOCK (Narrative) (Details) | Sep. 23, 2014USD ($)$ / shares | Jun. 26, 2009USD ($)shares | Dec. 31, 2015$ / shares | Dec. 31, 2014$ / shares |
Series A Fixed Rate Cumulative Perpetual Preferred Stock [Member] | ||||
Preferred stock - U.S. treasury department's capital purchase program and CDCI [Line Items] | ||||
Shares of stock issued | shares | 11,735 | |||
Value of stock issued | $ | $ 11,735,000 | |||
Series C Junior Participating Preferred Stock [Member] | ||||
Preferred stock - U.S. treasury department's capital purchase program and CDCI [Line Items] | ||||
Dividend share purchase right | $ | $ 1 | |||
Dividend preferred stock conversion ratio | 100 | |||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |
Common stock price (in dollars per share) | $ / shares | $ 10 |