Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 31, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Registrant Name | 'FIDELITY D & D BANCORP INC | ' |
Entity Central Index Key | '0001098151 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 2,371,171 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Cash and due from banks | $13,951 | $12,657 |
Interest-bearing deposits with financial institutions | 21,934 | 9,189 |
Total cash and cash equivalents | 35,885 | 21,846 |
Available-for-sale securities | 102,921 | 100,441 |
Held-to-maturity securities | 190 | 289 |
Federal Home Loan Bank stock | 2,160 | 2,624 |
Loans and leases, net (allowance for loan losses of $8,405 in 2013; $8,972 in 2012) | 454,700 | 424,584 |
Loans held-for-sale (fair value $920 in 2013, $10,824 in 2012) | 903 | 10,545 |
Foreclosed assets held-for-sale | 2,966 | 1,607 |
Bank premises and equipment, net | 13,709 | 14,127 |
Cash surrender value of bank owned life insurance | 10,316 | 10,065 |
Accrued interest receivable | 1,973 | 1,985 |
Other assets | 14,571 | 13,412 |
Total assets | 640,294 | 601,525 |
Liabilities: | ' | ' |
Deposits: Interest-bearing | 410,716 | 388,625 |
Deposits: Non-interest-bearing | 134,114 | 126,035 |
Total deposits | 544,830 | 514,660 |
Accrued interest payable and other liabilities | 3,471 | 3,863 |
Short-term borrowings | 14,197 | 8,056 |
Long-term debt | 16,000 | 16,000 |
Total liabilities | 578,498 | 542,579 |
Shareholders' Equity: | ' | ' |
Preferred stock authorized 5,000,000 shares with no par value; none issued | 0 | 0 |
Capital stock, no par value (10,000,000 shares authorized; shares issued and outstanding; 2,371,171 in 2013 and 2,323,248 in 2012) | 24,805 | 23,711 |
Retained earnings | 37,644 | 34,999 |
Accumulated other comprehensive (loss) income | -653 | 236 |
Total shareholders' equity | 61,796 | 58,946 |
Total liabilities and shareholders' equity | $640,294 | $601,525 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Consolidated Balance Sheets [Abstract] | ' | ' |
Loans, Allowance for Loan Losses | $8,405 | $8,972 |
Loans Held-for-sale, Fair Value Disclosure | $920 | $10,824 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, No Par Value | $0 | $0 |
Preferred Stock, Shares Issued | 0 | 0 |
Common Stock, No Par Value | $0 | $0 |
Common Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Common Stock, Shares, Issued | 2,371,171 | 2,323,248 |
Common Stock, Shares, Outstanding | 2,371,171 | 2,323,248 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Interest income: | ' | ' | ' | ' |
Loans and leases: Taxable | $5,329 | $5,313 | $16,034 | $15,885 |
Loans and leases: Nontaxable | 126 | 107 | 346 | 359 |
Interest-bearing deposits with financial institutions | 5 | 12 | 19 | 55 |
Investment securities: | ' | ' | ' | ' |
U.S. government agency and corporations | 167 | 226 | 483 | 747 |
States and political subdivisions (nontaxable) | 303 | 298 | 893 | 917 |
Other securities | 24 | 18 | 59 | 54 |
Total interest income | 5,954 | 5,974 | 17,834 | 18,017 |
Interest expense: | ' | ' | ' | ' |
Deposits | 525 | 585 | 1,551 | 1,886 |
Securities sold under repurchase agreements | 5 | 4 | 18 | 27 |
Other short-term borrowings and other | 3 | ' | 8 | ' |
Long-term debt | 215 | 215 | 638 | 667 |
Total interest expense | 748 | 804 | 2,215 | 2,580 |
Net interest income | 5,206 | 5,170 | 15,619 | 15,437 |
Provision for loan losses | 450 | 700 | 1,600 | 2,000 |
Net interest income after provision for loan losses | 4,756 | 4,470 | 14,019 | 13,437 |
Other income: | ' | ' | ' | ' |
Service charges on deposit accounts | 492 | 470 | 1,403 | 1,313 |
Interchange fees | 319 | 276 | 899 | 798 |
Fees from trust fiduciary activities | 139 | 140 | 480 | 447 |
Fees from financial services | 148 | 155 | 444 | 441 |
Service charges on loans | 162 | 195 | 744 | 846 |
Fees and other revenue | 122 | 88 | 343 | 257 |
Earnings on bank-owned life insurance | 85 | 83 | 251 | 244 |
Gain (loss) on sale, recovery, or disposal of: | ' | ' | ' | ' |
Loans | 313 | 500 | 1,207 | 1,329 |
Investment securities | 138 | 3 | 266 | 264 |
Premises and equipment | -10 | -16 | -10 | -17 |
Impairment losses on investment securities: | ' | ' | ' | ' |
Other-than-temporary impairment on investment securities | ' | -1 | -61 | -242 |
Non-credit-related losses on investment securities not expected to be sold (recognized in other comprehensive income(loss)) | ' | 1 | 61 | 106 |
Net impairment losses on investment securities | ' | ' | ' | -136 |
Total other income | 1,908 | 1,894 | 6,027 | 5,786 |
Other expenses: | ' | ' | ' | ' |
Salaries and employee benefits | 2,248 | 2,116 | 7,145 | 6,767 |
Premises and equipment | 837 | 889 | 2,496 | 2,593 |
Advertising and marketing | 513 | 552 | 980 | 947 |
Professional services | 314 | 292 | 891 | 963 |
FDIC assessment | 105 | 130 | 353 | 379 |
Loan collection | 84 | 197 | 447 | 498 |
Other real estate owned | 40 | 67 | 224 | 226 |
Office supplies and postage | 116 | 103 | 332 | 315 |
Automated transaction processing | 186 | 105 | 426 | 286 |
Other | 201 | 28 | 837 | 965 |
Total other expenses | 4,644 | 4,479 | 14,131 | 13,939 |
Income before income taxes | 2,020 | 1,885 | 5,915 | 5,284 |
Provision for income taxes | 515 | 486 | 1,503 | 1,311 |
Net income | $1,505 | $1,399 | $4,412 | $3,973 |
Per share data: | ' | ' | ' | ' |
Net income - basic | $0.64 | $0.61 | $1.88 | $1.74 |
Net income - diluted | $0.64 | $0.61 | $1.88 | $1.74 |
Dividends | $0.25 | $0.25 | $0.75 | $0.75 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Consolidated Statements of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $1,505 | $1,399 | $4,412 | $3,973 |
Other comprehensive income (loss), before tax: | ' | ' | ' | ' |
Unrealized holding gain (loss) on available-for-sale securities | 925 | 1,182 | -1,302 | 2,195 |
Reclassification adjustment for net gains realized in income | -138 | -3 | -266 | -264 |
Net impairment losses on investment securities | ' | ' | ' | 136 |
Net unrealized gain (loss) | 787 | 1,179 | -1,568 | 2,067 |
Tax effect | -268 | -401 | 533 | -703 |
Unrealized gain (loss), net of tax | 519 | 778 | -1,035 | 1,364 |
Non-credit-related impairment gain on investment securities not expected to be sold | 168 | 76 | 221 | 358 |
Tax effect | -57 | -26 | -75 | -122 |
Net non-credit-related impairment gain on investment securities | 111 | 50 | 146 | 236 |
Other comprehensive income (loss), net of tax | 630 | 828 | -889 | 1,600 |
Total comprehensive income, net of tax | $2,135 | $2,227 | $3,523 | $5,573 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Shareholders' Equity (USD $) | Capital Units [Member] | Capital stock [Member] | Retained earnings [Member] | Accumulated other comprehensive income (loss) [Member] | Total |
In Thousands, except Share data | USD ($) | USD ($) | USD ($) | USD ($) | |
Balance (value) at Dec. 31, 2011 | ' | $22,354 | $32,380 | ($1,110) | $53,624 |
Balance (shares) at Dec. 31, 2011 | 2,254,542 | ' | ' | ' | ' |
Net income | ' | ' | 3,973 | ' | 3,973 |
Other comprehensive income (loss) | ' | ' | ' | 1,600 | 1,600 |
Issuance of common stock through Employee Stock Purchase Plan | ' | 67 | ' | ' | 67 |
Issuance of common stock, shares, through Employee Stock Purchase Plan | 3,874 | ' | ' | ' | ' |
Issuance of common stock through Dividend Reinvestment Plan | ' | 980 | ' | ' | 980 |
Issuance of common stock, shares, through Dividend Reinvestment Plan | 49,190 | ' | ' | ' | ' |
Stock-based compensation expense | ' | 15 | ' | ' | 15 |
Cash dividends declared | ' | ' | -1,706 | ' | -1,706 |
Balance (value) at Sep. 30, 2012 | ' | 23,416 | 34,647 | 490 | 58,553 |
Balance (shares) at Sep. 30, 2012 | 2,307,606 | ' | ' | ' | ' |
Balance (value) at Dec. 31, 2012 | ' | 23,711 | 34,999 | 236 | 58,946 |
Balance (shares) at Dec. 31, 2012 | 2,323,248 | ' | ' | ' | ' |
Net income | ' | ' | 4,412 | ' | 4,412 |
Other comprehensive income (loss) | ' | ' | ' | -889 | -889 |
Issuance of common stock through Employee Stock Purchase Plan | ' | 78 | ' | ' | 78 |
Issuance of common stock, shares, through Employee Stock Purchase Plan | 4,256 | ' | ' | ' | ' |
Issuance of common stock through Dividend Reinvestment Plan | ' | 928 | ' | ' | 928 |
Issuance of common stock, shares, through Dividend Reinvestment Plan | 43,533 | ' | ' | ' | ' |
Issuance of common stock from vested restricted share grants through stock compensation plans | 134 | ' | ' | ' | ' |
Stock-based compensation expense | ' | 88 | ' | ' | 88 |
Cash dividends declared | ' | ' | -1,767 | ' | -1,767 |
Balance (value) at Sep. 30, 2013 | ' | $24,805 | $37,644 | ($653) | $61,796 |
Balance (shares) at Sep. 30, 2013 | 2,371,171 | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net income | $4,412 | $3,973 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation, amortization, and accretion | 2,546 | 2,612 |
Provision for loan losses | 1,600 | 2,000 |
Deferred income tax expense (benefit) | 598 | -253 |
Stock-based compensation expense | 88 | 15 |
Proceeds from sale of loans held-for-sale | 72,449 | 64,605 |
Originations of loans held-for-sale | -59,848 | -58,395 |
Earnings on bank-owned life insurance | -251 | -244 |
Net gain from sales of loans | -1,207 | -1,329 |
Net gain from sales of investment securities | -104 | -251 |
Net loss on sale and write-down of foreclosed assets held-for-sale | 97 | 107 |
Loss on disposal of equipment | 10 | 17 |
Other-than-temporary impairment on securities | ' | 136 |
Change in: | ' | ' |
Accrued interest receivable | 7 | 90 |
Other assets | -731 | -249 |
Accrued interest payable and other liabilities | -351 | -4,086 |
Net cash provided by operating activities | 19,315 | 8,748 |
Cash flows from investing activities: | ' | ' |
Held-to-maturity securities: Proceeds from maturities, calls, and principal pay-downs | 100 | 88 |
Available-for-sale securities: Proceeds from sales | 8,461 | 3,571 |
Available-for-sale securities: Proceeds from maturities, calls and principal pay-downs | 21,771 | 24,029 |
Available-for-sale securities: Purchases | -35,098 | -20,891 |
Decrease in FHLB stock | 464 | 680 |
Net increase in loans and leases | -36,430 | -28,898 |
Acquisition of bank premises and equipment | -810 | -1,809 |
Proceeds from sale of foreclosed assets held-for-sale | 716 | 719 |
Net cash used by investing activities | -40,826 | -22,511 |
Cash flows from financing activities: | ' | ' |
Net increase in deposits | 30,170 | 8,318 |
Net increase in short-term borrowings | 6,141 | 4,561 |
Repayments of long-term debt | ' | -5,000 |
Proceeds from employee stock purchase plan participants | 78 | 67 |
Dividends paid, net of dividends reinvested | -1,090 | -1,124 |
Proceeds from dividend reinvestment plan participants | 251 | 398 |
Net cash provided by financing activities | 35,550 | 7,220 |
Net increase (decrease) in cash and cash equivalents | 14,039 | -6,543 |
Cash and cash equivalents, beginning | 21,846 | 52,165 |
Cash and cash equivalents, ending | $35,885 | $45,622 |
Nature_Of_Operations_And_Criti
Nature Of Operations And Critical Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Nature Of Operations And Critical Accounting Policies [Abstract] | ' |
Nature of operations and summary of critical accounting policies | ' |
1. Nature of operations and critical accounting policies | |
Nature of operations | |
Fidelity Deposit and Discount Bank (the Bank) is a commercial bank chartered in the Commonwealth of Pennsylvania and a wholly-owned subsidiary of Fidelity D & D Bancorp, Inc. (the Company or collectively, the Company). Having commenced operations in 1903, the Bank is committed to provide superior customer service, while offering a full range of banking products and financial and trust services to both our consumer and commercial customers from our main office located in Dunmore and other branches located throughout Lackawanna and Luzerne counties. | |
Principles of consolidation | |
The accompanying unaudited consolidated financial statements of the Company and the Bank have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and with the instructions to this Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnote disclosures required by GAAP for complete financial statements. In the opinion of management, all normal recurring adjustments necessary for a fair presentation of the financial condition and results of operations for the periods have been included. All significant inter-company balances and transactions have been eliminated in consolidation. | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported periods. Actual results could differ from those estimates. For additional information and disclosures required under GAAP, refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. | |
Management is responsible for the fairness, integrity and objectivity of the unaudited financial statements included in this report. Management prepared the unaudited financial statements in accordance with GAAP. In meeting its responsibility for the financial statements, management depends on the Company's accounting systems and related internal controls. These systems and controls are designed to provide reasonable but not absolute assurance that the financial records accurately reflect the transactions of the Company, the Company’s assets are safeguarded and that the financial statements present fairly the financial condition and results of operations of the Company. | |
In the opinion of management, the consolidated balance sheets as of September 30, 2013 and December 31, 2012 and the related consolidated statements of income and consolidated statements of comprehensive income for the three- and nine-months ended September 30, 2013 and 2012, and consolidated statements of changes in shareholders’ equity and consolidated statements of cash flows for the nine months ended September 30, 2013 and 2012 present fairly the financial condition and results of operations of the Company. All material adjustments required for a fair presentation have been made. These adjustments are of a normal recurring nature. Certain reclassifications have been made to the 2012 financial statements to conform to the 2013 presentation. | |
In preparing these consolidated financial statements, the Company evaluated the events and transactions that occurred after September 30, 2013 through the date these consolidated financials statements were issued. | |
This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2012, and the notes included therein, included within the Company’s Annual Report filed on Form 10-K. | |
Critical accounting policies | |
The presentation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect many of the reported amounts and disclosures. Actual results could differ from these estimates. | |
A material estimate that is particularly susceptible to significant change relates to the determination of the allowance for loan losses. Management believes that the allowance for loan losses at September 30, 2013 is adequate and reasonable. Given the subjective nature of identifying and valuing loan losses, it is likely that well-informed individuals could make different assumptions and could, therefore, calculate a materially different allowance value. While management uses available information to recognize losses on loans, changes in economic conditions may necessitate revisions in the future. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses. Such agencies may require the Company to recognize adjustments to the allowance based on their judgment of information available to them at the time of their examination. | |
Another material estimate is the calculation of fair values of the Company’s investment securities. Except for the Company’s investment in corporate bonds, consisting of pooled trust preferred securities, fair values of the other investment securities are determined by pricing provided by a third-party vendor, who is a provider of financial market data, analytics and related services to financial institutions. For the Company’s investment in pooled trust preferred securities, management is unable to obtain readily attainable and realistic pricing from market traders due to a lack of active market participants and therefore management has determined the market for these securities to be inactive. In order to determine the fair value of the pooled trust preferred securities, management relied on the use of an income valuation approach (present value technique) that maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs, the results of which are more representative of fair value than the market approach valuation technique used for the other investment securities. | |
Based on experience, management is aware that estimated fair values of investment securities tend to vary among valuation services. Accordingly, when selling investment securities, price quotes may be obtained from more than one source. The majority of the Company’s investment securities are classified as available-for-sale (AFS). AFS securities are carried at fair value on the consolidated balance sheets, with unrealized gains and losses, net of income tax, reported separately within shareholders’ equity as a component of accumulated other comprehensive income (loss) (OCI). | |
The fair value of residential mortgage loans, classified as held-for-sale (HFS), is obtained from the Federal National Mortgage Association (FNMA) or the Federal Home Loan Bank (FHLB). Generally, the market to which the Company sells residential mortgages it originates for sale is restricted and price quotes from other sources are not typically obtained. On occasion, the Company may transfer loans from the loan portfolio to loans HFS. Under these circumstances, pricing may be obtained from other entities and the loans are transferred at the lower of cost or market value and simultaneously sold. As of September 30, 2013 and December 31, 2012, loans classified as HFS consisted of residential mortgage loans. | |
During the first quarter of 2013, the Company commenced its automobile leasing operations, a component of auto loans and leases in the consumer segment of the loan portfolio. Financing of automobiles, provided to customers under lease arrangements of varying terms, are accounted for as direct finance leases. Interest on automobile direct finance leasing is determined using the interest method. Generally, the interest method is used to arrive at a level effective yield over the life of the lease. | |
Foreclosed assets held-for-sale includes other real estate acquired through foreclosure (ORE) and may, from time-to-time, include repossessed assets such as automobiles. ORE is carried at the lower of cost (principal balance at date of foreclosure) or fair value less estimated cost to sell. Any write-downs at the date of foreclosure or within a reasonable period of time after foreclosure are charged to the allowance for loan losses. Expenses incurred to maintain ORE properties, subsequent write downs to the asset’s fair value and gains or losses on disposal are included as components of other real estate owned expense in the consolidated statements of income. | |
For purposes of the consolidated statements of cash flows, cash and cash equivalents includes cash on hand, amounts due from banks and interest-bearing deposits with financial institutions. For the nine months ended September 30, 2013 and 2012, the Company paid interest of $2.2 million and $2.6 million, respectively. The Company was required to pay income taxes of $1.1 million and $1.8 million during the first nine months of 2013 and 2012, respectively. Transfers from loans to foreclosed assets held-for-sale amounted to $2.2 million and $1.4 million during the nine months ended September 30, 2013 and 2012. During the same respective periods, transfers from loans to loans HFS amounted to $2.9 million and $2.8 million. Expenditures for construction in process, a component of other assets in the consolidated balance sheets, are included in acquisition of bank premises and equipment. | |
New_Accounting_Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2013 | |
New Accounting Pronouncements [Abstract] | ' |
New Accounting Pronouncements | ' |
2. New Accounting Pronouncements | |
In February 2013, the Financial Accounting Standards Board (FASB) issued the accounting update related to; Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The update requires entities to present information about reclassification adjustments from accumulated other comprehensive income in their annual financial statements in a single note or on the face of the financial statements. The new requirement is effective prospectively for interim and annual reporting periods beginning after December 15, 2012. The provisions of this accounting update require expanded financial reporting disclosures. | |
Accumulated_other_comprehensiv
Accumulated other comprehensive income (loss) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Accumulated other comprehensive income (loss) [Abstract] | ' | ||||||||
Accumulated other comprehensive income (loss) | ' | ||||||||
3. Accumulated other comprehensive income (loss) | |||||||||
The following tables illustrate the changes in accumulated other comprehensive income (loss) by component and the details about the components of accumulated comprehensive income (loss) as of and for the periods indicated: | |||||||||
As of and for the nine months ended September 30, 2013 | |||||||||
Non-credit-related | |||||||||
Unrealized gains | impairment losses | ||||||||
on available-for- | on investment | ||||||||
(dollars in thousands) | sale securities | securities | Total | ||||||
Beginning balance | $ | 1,905 | $ | -1,669 | $ | 236 | |||
Other comprehensive (loss) income before reclassifications | -859 | 146 | -713 | ||||||
Amounts reclassified from accumulated other | |||||||||
comprehensive income | -176 | - | -176 | ||||||
Net current-period other comprehensive (loss) income | -1,035 | 146 | -889 | ||||||
Ending balance | $ | 870 | $ | -1,523 | $ | -653 | |||
As of and for the three months ended September 30, 2013 | |||||||||
Non-credit-related | |||||||||
Unrealized gains | impairment losses | ||||||||
on available-for- | on investment | ||||||||
(dollars in thousands) | sale securities | securities | Total | ||||||
Beginning balance | $ | 351 | $ | -1,634 | $ | -1,283 | |||
Other comprehensive income before reclassifications | 610 | 111 | 721 | ||||||
Amounts reclassified from accumulated other | |||||||||
comprehensive income | -91 | - | -91 | ||||||
Net current-period other comprehensive income | 519 | 111 | 630 | ||||||
Ending balance | $ | 870 | $ | -1,523 | $ | -653 | |||
In the tables above, all amounts are net of tax at 34%. Amounts in parentheses indicate debits. | |||||||||
Details about accumulated other | Amount reclassified from | ||||||||
comprehensive income components | accumulated other | Affected line item in the statement | |||||||
(dollars in thousands) | comprehensive income | where net income is presented | |||||||
For the nine months ended September 30, 2013 | |||||||||
Unrealized gains on AFS securities | $ | 266 | Gain on sale, recovery, or disposal of investment securities | ||||||
- | Net impairment losses on investment securities | ||||||||
266 | Income before income taxes | ||||||||
-90 | Provision for income taxes | ||||||||
Total reclassifications for the period | $ | 176 | Net income | ||||||
For the three months ended September 30, 2013 | |||||||||
Unrealized gains on AFS securities | $ | 138 | Gain on sale, recovery, or disposal of investment securities | ||||||
- | Net impairment losses on investment securities | ||||||||
138 | Income before income taxes | ||||||||
-47 | Provision for income taxes | ||||||||
Total reclassifications for the period | $ | 91 | Net income | ||||||
Investment_Securities
Investment Securities | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Investment Securities [Abstract] | ' | ||||||||||||||||||
Investment Securities | ' | ||||||||||||||||||
4. Investment securities | |||||||||||||||||||
The amortized cost and fair value of investment securities at September 30, 2013 and December 31, 2012 are summarized as follows: | |||||||||||||||||||
Gross | Gross | ||||||||||||||||||
Amortized | unrealized | unrealized | Fair | ||||||||||||||||
(dollars in thousands) | cost | gains | losses | value | |||||||||||||||
30-Sep-13 | |||||||||||||||||||
Held-to-maturity securities: | |||||||||||||||||||
MBS - GSE residential | $ | 190 | $ | 17 | $ | - | $ | 207 | |||||||||||
Available-for-sale securities: | |||||||||||||||||||
Agency - GSE | $ | 15,715 | $ | 34 | $ | 40 | $ | 15,709 | |||||||||||
Obligations of states and | |||||||||||||||||||
political subdivisions | 30,531 | 1,086 | 455 | 31,162 | |||||||||||||||
Corporate bonds: | |||||||||||||||||||
Pooled trust preferred securities | 6,115 | 267 | 3,439 | 2,943 | |||||||||||||||
MBS - GSE residential | 51,254 | 1,471 | 137 | 52,588 | |||||||||||||||
Total debt securities | 103,615 | 2,858 | 4,071 | 102,402 | |||||||||||||||
Equity securities - financial services | 295 | 224 | - | 519 | |||||||||||||||
Total available-for-sale securities | $ | 103,910 | $ | 3,082 | $ | 4,071 | $ | 102,921 | |||||||||||
Gross | Gross | ||||||||||||||||||
Amortized | unrealized | unrealized | Fair | ||||||||||||||||
(dollars in thousands) | cost | gains | losses | value | |||||||||||||||
31-Dec-12 | |||||||||||||||||||
Held-to-maturity securities: | |||||||||||||||||||
MBS - GSE residential | $ | 289 | $ | 31 | $ | - | $ | 320 | |||||||||||
Available-for-sale securities: | |||||||||||||||||||
Agency - GSE | $ | 17,651 | $ | 102 | $ | 13 | $ | 17,740 | |||||||||||
Obligations of states and | |||||||||||||||||||
political subdivisions | 26,979 | 2,879 | 1 | 29,857 | |||||||||||||||
Corporate bonds: | |||||||||||||||||||
Pooled trust preferred securities | 6,323 | 185 | 4,683 | 1,825 | |||||||||||||||
MBS - GSE residential | 48,836 | 1,761 | 44 | 50,553 | |||||||||||||||
Total debt securities | 99,789 | 4,927 | 4,741 | 99,975 | |||||||||||||||
Equity securities - financial services | 295 | 171 | - | 466 | |||||||||||||||
Total available-for-sale securities | $ | 100,084 | $ | 5,098 | $ | 4,741 | $ | 100,441 | |||||||||||
The amortized cost and fair value of debt securities at September 30, 2013 by contractual maturity are summarized below: | |||||||||||||||||||
Amortized | Fair | ||||||||||||||||||
(dollars in thousands) | cost | value | |||||||||||||||||
Held-to-maturity securities: | |||||||||||||||||||
MBS - GSE residential | $ | 190 | $ | 207 | |||||||||||||||
Available-for-sale securities: | |||||||||||||||||||
Debt securities: | |||||||||||||||||||
Due in one year or less | $ | 3,007 | $ | 3,020 | |||||||||||||||
Due after one year through five years | 5,127 | 5,111 | |||||||||||||||||
Due after five years through ten years | 9,579 | 9,683 | |||||||||||||||||
Due after ten years | 34,648 | 32,000 | |||||||||||||||||
Total debt securities | 52,361 | 49,814 | |||||||||||||||||
MBS - GSE residential | 51,254 | 52,588 | |||||||||||||||||
Total available-for-sale debt securities | $ | 103,615 | $ | 102,402 | |||||||||||||||
Actual maturities will differ from contractual maturities because issuers and borrowers may have the right to call or repay obligations with or without call or prepayment penalty. Agency – GSE and municipal securities are included based on their original stated maturity. MBS – GSE residential, which are based on weighted-average lives and subject to monthly principal pay-downs, are listed in total. Most of the securities have fixed rates or have predetermined scheduled rate changes, and many have call features that allow the issuer to call the security at par before its stated maturity, without penalty. | |||||||||||||||||||
The following table presents the fair value and gross unrealized losses of investment securities aggregated by investment type, the length of time and the number of securities that have been in a continuous unrealized loss position as of September 30, 2013 and December 31, 2012: | |||||||||||||||||||
Less than 12 months | More than 12 months | Total | |||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||
(dollars in thousands) | value | losses | value | losses | value | losses | |||||||||||||
30-Sep-13 | |||||||||||||||||||
Agency - GSE | $ | 8,643 | $ | 40 | $ | - | $ | - | $ | 8,643 | $ | 40 | |||||||
Obligations of states and political subdivisions | 7,761 | 455 | - | - | 7,761 | 455 | |||||||||||||
Corporate bonds: | |||||||||||||||||||
Pooled trust preferred securities | - | - | 2,264 | 3,439 | 2,264 | 3,439 | |||||||||||||
MBS - GSE residential | 12,253 | 137 | - | - | 12,253 | 137 | |||||||||||||
Total temporarily impaired securities | $ | 28,657 | $ | 632 | $ | 2,264 | $ | 3,439 | $ | 30,921 | $ | 4,071 | |||||||
Number of securities | 31 | 7 | 38 | ||||||||||||||||
31-Dec-12 | |||||||||||||||||||
Agency - GSE | $ | 1,017 | $ | 13 | $ | - | $ | - | $ | 1,017 | $ | 13 | |||||||
Obligations of states and political subdivisions | 281 | 1 | - | - | 281 | 1 | |||||||||||||
Corporate bonds: | |||||||||||||||||||
Pooled trust preferred securities | - | - | 1,639 | 4,683 | 1,639 | 4,683 | |||||||||||||
MBS - GSE residential | 6,214 | 44 | - | - | 6,214 | 44 | |||||||||||||
Total temporarily impaired securities | $ | 7,512 | $ | 58 | $ | 1,639 | $ | 4,683 | $ | 9,151 | $ | 4,741 | |||||||
Number of securities | 5 | 8 | 13 | ||||||||||||||||
Management believes the cause of the unrealized losses is related to changes in interest rates, instability in the capital markets or the limited trading activity due to illiquid conditions in the debt market and is not directly related to credit quality. Quarterly, management conducts a formal review of investment securities for the presence of other-than-temporary impairment (OTTI). The accounting guidance related to OTTI requires the Company to assess whether OTTI is present when the fair value of a debt security is less than its amortized cost as of the balance sheet date. Under those circumstances, OTTI is considered to have occurred if: (1) the entity has intent to sell the security; (2) more likely than not the entity will be required to sell the security before recovery of its amortized cost basis; or (3) the present value of expected cash flows is not sufficient to recover the entire amortized cost. | |||||||||||||||||||
The accounting guidance requires that credit-related OTTI be recognized in earnings while non-credit-related OTTI on securities not expected to be sold be recognized in other comprehensive income (loss) (OCI). Non-credit-related OTTI is based on other factors affecting market value, including illiquidity. Presentation of OTTI is made in the consolidated statements of income on a gross basis with an offset for the amount of non-credit-related OTTI recognized in OCI. | |||||||||||||||||||
The Company’s OTTI evaluation process also follows the guidance set forth in topics related to debt and equity securities. The guidance set forth in the pronouncements require the Company to take into consideration current market conditions, fair value in relationship to cost, extent and nature of changes in fair value, issuer rating changes and trends, volatility of earnings, current analysts’ evaluations, all available information relevant to the collectability of debt securities, the ability and intent to hold investments until a recovery of fair value which may be to maturity and other factors when evaluating for the existence of OTTI. The guidance requires that credit-related OTTI be recognized as a realized loss through earnings when there has been an adverse change in the holder’s expected cash flows such that the full amount (principal and interest) will probably not be received. This requirement is consistent with the impairment model in the guidance for accounting for debt and equity securities. | |||||||||||||||||||
For all security types, as of September 30, 2013, the Company applied the criteria provided in the recognition and presentation guidance related to OTTI. That is, management has no intent to sell the securities and no conditions were identified by management that more likely than not would require the Company to sell the securities before recovery of their amortized cost basis. The results indicated there was no presence of OTTI in the Company’s portfolios of Agency – Government Sponsored Enterprise (GSE), Mortgage-backed securities (MBS) – GSE residential and Obligations of states and political subdivisions. Following is a description of the security types within the Company’s investment portfolio. | |||||||||||||||||||
Agency - GSE and MBS - GSE residential | |||||||||||||||||||
Agency – GSE and MBS – GSE residential securities consist of short- and medium-term notes issued by Federal Home Loan Mortgage Corporation (FHLMC), Federal National Mortgage Association (FNMA), Federal Home Loan Bank (FHLB), Federal Farm Credit Bank (FFCB) and Government National Mortgage Association (GNMA). These securities have interest rates that are fixed and adjustable, have varying short- to mid-term maturity dates and have contractual cash flows guaranteed by the U.S. government or agencies of the U.S. government. | |||||||||||||||||||
Obligations of states and political subdivisions | |||||||||||||||||||
The municipal securities are bank qualified or bank eligible, general obligation and revenue bonds rated as investment grade by various credit rating agencies and have fixed rates of interest with mid- to long-term maturities. Fair values of these securities are highly driven by interest rates. Management performs ongoing credit quality reviews on these issues. | |||||||||||||||||||
In the above security types, management believes the change in fair value is attributable to changes in interest rates and those instruments with unrealized losses were not caused by deterioration of credit quality. Accordingly, as of September 30, 2013, recognition of OTTI on these securities was unnecessary. Interest rates along the intermediate and long end of the treasury yield curve have increased from year-end 2012 and while the intermediate term rates have ebbed slightly from the prior quarter, until rates stabilize, values of banks’ investment securities will be somewhat volatile. | |||||||||||||||||||
Pooled trust preferred securities | |||||||||||||||||||
A Pooled Trust Preferred Collateralized Debt Obligation (CDO) is a type of investment security collateralized by trust preferred securities (TPS) issued by banks, insurance companies and real estate investment trusts. The primary collateral type is a TPS issued by a bank. A TPS is a hybrid security that consists of both debt and equity characteristics which includes the ability of the issuer to voluntarily defer interest payments for up to 20 consecutive quarters. A TPS is considered a junior security in the capital structure of the issuer. | |||||||||||||||||||
There are various investment classes or tranches issued by the CDO. The most senior tranche has the lowest yield but the most protection from credit losses. Conversely, the most junior tranche has the highest yield but the most exposure to risk of credit losses. Junior tranches are subordinate to senior tranches and losses are generally allocated from the lowest tranche with the equity component holding the most risk of credit loss and then subordinate tranches in reverse order up to the most senior tranche. The allocation of losses is defined in the indenture when the CDO was formed. | |||||||||||||||||||
Unrealized losses in the pooled trust preferred securities (PreTSLs) are caused mainly by: (1) collateral deterioration due to bank failures and credit concerns across the banking sector; (2) widening of credit spreads and (3) illiquidity in the market. The Company’s review of its portfolio of pooled trust preferred securities determined that in 2012 credit-related OTTI be recorded on two holdings, both of which are contained in the Company’s AFS securities portfolio. The losses were caused by credit quality downgrades on the underlying collateral, including the collateral of four banks deferring interest payments within these two securities and one bank fully redeeming which removes all future earnings cash flow. There was no credit related OTTI required to be recognized during the three- or nine-months ended September 30, 2013. | |||||||||||||||||||
The following table summarizes the amount of OTTI recognized in earnings, by security during the periods indicated: | |||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||
Pooled trust preferred securities: | |||||||||||||||||||
PreTSL IX, B1, B3 | $ | - | $ | - | $ | - | $ | 18 | |||||||||||
PreTSL XVIII, C | - | - | - | 118 | |||||||||||||||
Total | $ | - | $ | - | $ | - | $ | 136 | |||||||||||
The following is a tabular roll-forward of the cumulative amount of credit-related OTTI recognized in earnings: | |||||||||||||||||||
Nine months ended | |||||||||||||||||||
30-Sep-13 | |||||||||||||||||||
(dollars in thousands) | HTM | AFS | Total | ||||||||||||||||
Beginning balance of credit-related OTTI | $ | - | $ | -15,416 | $ | -15,416 | |||||||||||||
Additions for credit-related OTTI | |||||||||||||||||||
not previously recognized | - | - | - | ||||||||||||||||
Additional credit-related OTTI | |||||||||||||||||||
previously recognized when there | |||||||||||||||||||
is no intent to sell before recovery | |||||||||||||||||||
of amortized cost basis | - | - | - | ||||||||||||||||
Ending balance of credit-related OTTI | $ | - | $ | -15,416 | $ | -15,416 | |||||||||||||
To determine credit-related OTTI, the Company analyzes the collateral of each individual tranche within each of the individual pools in the Company’s portfolio of PreTSLs that has a remaining book value. The Company engaged a third party structured finance firm to: review the underlying collateral of each PreTSL; research trustee reports to update relevant data and credit ratings of the underlying collateral; project default rates and cash flows of the collateral and simulate 10,000 Monte Carlo time-to-default scenarios to arrive at the single best estimate of future cash flow for each tranche. This analysis is performed quarterly. | |||||||||||||||||||
The sub-topics of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 320 provide the scope, steps and accounting guidance for impairment: 1) determine whether an investment is impaired; 2) evaluate whether impairment is other-than-temporary; then 3) recognition of OTTI. The guidance in ASC 320 retains and emphasizes the objective of OTTI assessment and the related disclosure requirements by aligning the OTTI methodology for certain securitizations. ASC 325 provides a scope exception for investments that were considered of high credit quality (i.e. rated “AA” or higher) at the time of acquisition. The application of the guidance contained in ASC 320 is used for two investments considered of high credit quality and ASC 325 is used for the remaining securities. In summary, the quarterly evaluations indicated there was no significant adverse change in cash flows in the securities. As a result, there was no credit related OTTI recorded during the three- and nine- months ended September 30, 2013. | |||||||||||||||||||
The guidance prescribed in ASC 320 is used for investments that, upon purchase, were rated of high credit quality, “AA” or higher, by a nationally recognized statistical rating organization. The Company has two PreTSLs (XXIV and XXVII) that were of high credit quality, “AA” rated, upon acquisition. PreTSL XXVII evaluation proved a high probability that the Company will be able to collect all amounts due, both principal and interest, by maturity and thus, determined the impairment is temporary. PreTSL XXIV was evaluated under ASC 320 to determine if the Company expects to recover the remaining amortized cost basis and whether OTTI is deemed to have occurred. An adverse change or short-fall in the expected cash flows compared to the amortized cost would be recorded as credit-related OTTI. To assess the likelihood of recoverability, the present value of the best estimate of future cash flows is compared to the amortized cost. In this situation, the discount rate used was the interest rate implicit in the security at the date of acquisition. The application of the guidance on this security did not result in an adverse change in cash flows when compared to the previous measurement date and therefore, no credit related OTTI has been recorded during 2013. | |||||||||||||||||||
The remaining six PreTSLs were rated “A” by a nationally recognized statistical rating organization at the date of acquisition and as such are considered beneficial interests of securitized financial assets. For these securities, the Company applies the guidance of ASC 325. Under this and other relevant guidance, if the fair value is below amortized cost and the present value of the best estimate of future cash flows declines significantly, evidencing a probable material adverse change in cash flows since the previous measurement date, credit-related OTTI is deemed to exist and written down to the determined present value through a charge to current earnings. The discount rate used under ASC 325 is the yield to accrete beneficial interest, which is representative of the resulting interest from the total gross estimated future cash flows less the current amortized cost. In applying this guidance to the remaining securities, none of the securities measured an adverse change in cash flows and therefore no credit related OTTI has been recorded during 2013. | |||||||||||||||||||
The following table is the composition of the Company’s non-accrual PreTSL securities as of the period indicated: | |||||||||||||||||||
(dollars in thousands) | 30-Sep-13 | 31-Dec-12 | |||||||||||||||||
Book | Fair | Book | Fair | ||||||||||||||||
Deal | Class | value | value | value | value | ||||||||||||||
Pre TSL V | Mezzanine | $ | - | $ | 23 | $ | - | $ | 27 | ||||||||||
Pre TSL VII | Mezzanine | - | 59 | - | 125 | ||||||||||||||
Pre TSL IX | B-1,B-3 | 1,450 | 616 | 1,507 | 630 | ||||||||||||||
Pre TSL XI | B-3 | 974 | 390 | 1,053 | 305 | ||||||||||||||
Pre TSL XV | B-1 | - | 52 | - | 33 | ||||||||||||||
Pre TSL XVIII | C | 167 | - | 167 | - | ||||||||||||||
Pre TSL XIX | C | 316 | 6 | 316 | - | ||||||||||||||
Pre TSL XXIV | B-1 | 407 | 20 | 407 | 12 | ||||||||||||||
$ | 3,314 | $ | 1,166 | $ | 3,450 | $ | 1,132 | ||||||||||||
Non-accrual securities have experienced impairment of principal, and interest was “paid-in-kind”. When these two conditions exist, the security is placed on non-accrual status. Quarterly, each of the other PreTSL issues is evaluated for the presence of these two conditions and if necessary placed on non-accrual status. For the nine months ended September 30, 2013, the Company recovered $0.1 million of previously charged off PreTSLs compared to $13 thousand for the same period in 2012 which are included in the consolidated statements of income as a component of gain (loss) on sale, recovery, or disposal of investment securities . | |||||||||||||||||||
The following table provides additional information with respect to the Company’s pooled trust preferred securities as of September 30, 2013: | |||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||
Current | Actual | Excess | Effective | ||||||||||||||||
number | deferrals | subordination (2) | subordination (3) | ||||||||||||||||
of | and defaults | as a % of | as a % of | ||||||||||||||||
Moody's / | banks / | Actual | as a % of | current | current | ||||||||||||||
Book | Fair | Unrealized | Fitch | insurance | deferrals | current | Excess | performing | performing | ||||||||||
Deal | Class | value | value | gain (loss) | ratings (1) | companies | and defaults | collateral | subordination | collateral | collateral | ||||||||
Pre TSL IV | Mezzanine | $ | 412 | $ | 545 | $ | 133 | Caa2 / B | 6 / - | $ | 12,000 | 18 | $ | 16,467 | 28.4 | 38.7 | |||
Pre TSL V | Mezzanine | - | 23 | 23 | C / D | 3 / - | 28,950 | 100 | None | N/A | N/A | ||||||||
Pre TSL VII | Mezzanine | - | 59 | 59 | Ca / C | 14 / - | 85,000 | 54.1 | None | N/A | N/A | ||||||||
Pre TSL IX | B-1,B-3 | 1,450 | 616 | -834 | Caa1 / C | 45 / - | 101,280 | 27.5 | None | N/A | 3.6 | ||||||||
Pre TSL XI | B-3 | 974 | 390 | -584 | Caa3 / C | 60 / - | 180,250 | 32.1 | None | N/A | N/A | ||||||||
Pre TSL XV | B-1 | - | 52 | 52 | C / C | 62 / 7 | 185,200 | 32.9 | None | N/A | N/A | ||||||||
Pre TSL XVI | C | - | - | - | C / C | 48 / 7 | 217,390 | 39 | None | N/A | N/A | ||||||||
Pre TSL XVII | C | - | - | - | C / C | 49 / 6 | 149,890 | 33.3 | None | N/A | N/A | ||||||||
Pre TSL XVIII | C | 167 | - | -167 | Ca / C | 63 / 14 | 186,320 | 29.2 | None | N/A | N/A | ||||||||
Pre TSL XIX | C | 316 | 6 | -310 | C / C | 51 / 14 | 137,650 | 22.6 | None | N/A | 1.7 | ||||||||
Pre TSL XXIV | B-1 | 407 | 20 | -387 | Ca / CC | 77 / 11 | 347,500 | 34.8 | None | N/A | 14.2 | ||||||||
Pre TSL XXV | C-1 | - | - | - | C / C | 61 / 7 | 257,000 | 33.5 | None | N/A | 0.1 | ||||||||
Pre TSL XXVII | B | 2,389 | 1,232 | -1,157 | Caa3 / CCC | 40 / 7 | 81,800 | 26.1 | 10,519 | 4.5 | 29.5 | ||||||||
$ | 6,115 | $ | 2,943 | $ | -3,172 | ||||||||||||||
(1) All ratings have been updated through September 30, 2013. | |||||||||||||||||||
(2) Excess subordination represents the excess (if any) of the amount of performing collateral over the given class of bonds. | |||||||||||||||||||
(3) Effective subordination represents the estimated percentage of the performing collateral that would need to defer or default at the next payment in order to trigger a loss of principal or interest. This differs from excess subordination in that it considers the effect of excess interest earned on the performing collateral. | |||||||||||||||||||
For a further discussion on the fair value determination of the Company’s investment in PreTSLs and other financial instruments, see Note 8, “Fair value measurements”. | |||||||||||||||||||
Loans
Loans | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Loans [Abstract] | ' | |||||||||||||||||||||||
Loans | ' | |||||||||||||||||||||||
5. Loans and leases | ||||||||||||||||||||||||
The classifications of loans and leases at September 30, 2013 and December 31, 2012 are summarized as follows: | ||||||||||||||||||||||||
(dollars in thousands) | 30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||
Commercial and industrial | $ | 66,557 | $ | 65,110 | ||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||
Non-owner occupied | 89,268 | 81,998 | ||||||||||||||||||||||
Owner occupied | 84,411 | 80,509 | ||||||||||||||||||||||
Construction | 10,776 | 10,679 | ||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity installment | 33,666 | 32,828 | ||||||||||||||||||||||
Home equity line of credit | 35,305 | 34,169 | ||||||||||||||||||||||
Auto loans and leases | 20,838 | 17,411 | ||||||||||||||||||||||
Other | 5,587 | 6,139 | ||||||||||||||||||||||
Residential: | ||||||||||||||||||||||||
Real estate | 108,919 | 96,765 | ||||||||||||||||||||||
Construction | 7,833 | 7,948 | ||||||||||||||||||||||
Total | 463,160 | 433,556 | ||||||||||||||||||||||
Less: | ||||||||||||||||||||||||
Allowance for loan losses | -8,405 | -8,972 | ||||||||||||||||||||||
Unearned lease revenue | -55 | - | ||||||||||||||||||||||
Loans and leases, net | $ | 454,700 | $ | 424,584 | ||||||||||||||||||||
Net deferred loan costs of $1.1 million and $1.0 million have been added to the carrying values of loans at September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||||||||
The Company services real estate loans for investors in the secondary mortgage market which are not included in the accompanying consolidated balance sheets. The approximate amount of mortgages serviced amounted to $245.2 million as of September 30, 2013 and $214.7 million as of December 31, 2012. | ||||||||||||||||||||||||
The Company utilizes an external independent loan review firm that reviews and validates the credit risk program on at least an annual basis. Results of these reviews are presented to management and the board of directors. The loan review process complements and reinforces the risk identification and assessment decisions made by lenders and credit personnel, as well as the Company’s policies and procedures. | ||||||||||||||||||||||||
Non-accrual loans | ||||||||||||||||||||||||
The decision to place loans on non-accrual status is made on an individual basis after considering factors pertaining to each specific loan. Commercial and industrial and commercial real estate loans are placed on non-accrual status when management has determined that payment of all contractual principal and interest is in doubt or the loan is past due 90 days or more as to principal and interest, unless well-secured and in the process of collection. Consumer loans secured by real estate and residential mortgage loans are placed on non-accrual status at 120 days past due as to principal and interest and unsecured consumer loans are charged off when the loan is 90 days or more past due as to principal and interest. The Company considers all non-accrual loans to be impaired loans. | ||||||||||||||||||||||||
Non-accrual loans, segregated by class, at September 30, 2013 and December 31, 2012, were as follows: | ||||||||||||||||||||||||
(dollars in thousands) | 30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||
Commercial and industrial | $ | 99 | $ | 18 | ||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||
Non-owner occupied | 1,498 | 1,884 | ||||||||||||||||||||||
Owner occupied | 1,630 | 5,031 | ||||||||||||||||||||||
Construction | 779 | 1,123 | ||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity installment | 299 | 1,306 | ||||||||||||||||||||||
Home equity line of credit | 393 | 381 | ||||||||||||||||||||||
Auto loans and leases | 12 | - | ||||||||||||||||||||||
Other | - | 48 | ||||||||||||||||||||||
Residential: | ||||||||||||||||||||||||
Real estate | 1,438 | 2,330 | ||||||||||||||||||||||
Total | $ | 6,148 | $ | 12,121 | ||||||||||||||||||||
Troubled Debt Restructuring | ||||||||||||||||||||||||
A modification of a loan constitutes a troubled debt restructuring (TDR) when a borrower is experiencing financial difficulty and the modification constitutes a concession. The Company considers all TDRs to be impaired loans. The Company offers various types of concessions when modifying a loan, however, forgiveness of principal is rarely granted. Commercial and industrial loans modified in a TDR often involve temporary interest-only payments, term extensions, and converting revolving credit lines to term loans. Additional collateral, a co-borrower, or a guarantor is often requested. Commercial real estate loans modified in a TDR often involve reducing the interest rate for the remaining term of the loan, extending the maturity date at an interest rate lower than the current market rate for new debt with similar risk, or substituting or adding a new borrower or guarantor. Commercial real estate construction loans modified in a TDR may also involve extending the interest-only payment period. Residential mortgage loans modified in a TDR are primarily comprised of loans where monthly payments are lowered to accommodate the borrowers’ financial needs for an extended period of time. After the lowered monthly payment period ends, the borrower would revert back to paying principal and interest pursuant to the original terms with the maturity date adjusted accordingly. Consumer loan modifications are typically not granted and therefore standard modification terms do not exist for loans of this type. | ||||||||||||||||||||||||
Loans modified in a TDR may or may not be placed on non-accrual status. As of September 30, 2013, total TDRs amounted to $2.0 million, of which $1.0 million were on non-accrual status. This was a slight reduction from the December 31, 2012 total of $2.2 million of which $1.1 million were on non-accrual status. | ||||||||||||||||||||||||
Loans modified in a TDR are closely monitored for delinquency as an early indicator of possible future default. If loans modified in a TDR subsequently default, the Company evaluates the loan for possible further impairment. There were no loans modified in a TDR during the three- or nine- months ended September 30, 2013 and 2012. There were no loans modified in a TDR during the twelve months ended September 30, 2013 that subsequently defaulted during the three or nine months ended September 30, 2013. | ||||||||||||||||||||||||
The allowance for loan loss (allowance) may be increased, adjustments may be made in the allocation of the allowance or partial charge offs may be taken to further write-down the carrying value of the loan. An allowance for impaired loans that have been modified in a TDR is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the loan’s observable market price. If the loan is collateral dependent, the estimated fair value of the collateral, less any selling costs, is used to establish the allowance. | ||||||||||||||||||||||||
Past due loans | ||||||||||||||||||||||||
Loans are considered past due when the contractual principal and/or interest are not received by the due date. An aging analysis of past due loans, segregated by class of loans, as of the period indicated is as follows (dollars in thousands): | ||||||||||||||||||||||||
Recorded | ||||||||||||||||||||||||
Past due | Total | investment past | ||||||||||||||||||||||
30 - 59 Days | 60 - 89 Days | 90 days | Total | loans | due ≥ 90 days | |||||||||||||||||||
30-Sep-13 | past due | past due | or more * | past due | Current | receivables | and accruing | |||||||||||||||||
Commercial and industrial | $ | 160 | $ | 220 | $ | 106 | $ | 486 | $ | 66,071 | $ | 66,557 | $ | 7 | ||||||||||
Commercial real estate: | ||||||||||||||||||||||||
Non-owner occupied | 908 | - | 1,631 | 2,539 | 86,729 | 89,268 | 133 | |||||||||||||||||
Owner occupied | 238 | 408 | 1,630 | 2,276 | 82,135 | 84,411 | - | |||||||||||||||||
Construction | - | - | 779 | 779 | 9,997 | 10,776 | - | |||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity installment | 143 | 9 | 299 | 451 | 33,215 | 33,666 | - | |||||||||||||||||
Home equity line of credit | - | 4 | 415 | 419 | 34,886 | 35,305 | 22 | |||||||||||||||||
Auto loans and leases | 292 | 38 | 18 | 348 | 20,435 | 20,783 | 6 | |||||||||||||||||
Other | 20 | 33 | - | 53 | 5,534 | 5,587 | - | |||||||||||||||||
Residential: | ||||||||||||||||||||||||
Real estate | 257 | 546 | 1,615 | 2,418 | 106,501 | 108,919 | 177 | |||||||||||||||||
Construction | - | - | - | - | 7,833 | 7,833 | - | |||||||||||||||||
Total | $ | 2,018 | $ | 1,258 | $ | 6,493 | $ | 9,769 | $ | 453,336 | $ | 463,105 | $ | 345 | ||||||||||
* Includes $6.1 million of non-accrual loans. | ||||||||||||||||||||||||
Recorded | ||||||||||||||||||||||||
Past due | Total | investment past | ||||||||||||||||||||||
30 - 59 Days | 60 - 89 Days | 90 days | Total | loans | due ≥ 90 days | |||||||||||||||||||
31-Dec-12 | past due | past due | or more * | past due | Current | receivables | and accruing | |||||||||||||||||
Commercial and industrial | $ | 676 | $ | 15 | $ | 254 | $ | 945 | $ | 64,165 | $ | 65,110 | $ | 236 | ||||||||||
Commercial real estate: | ||||||||||||||||||||||||
Non-owner occupied | - | 141 | 1,884 | 2,025 | 79,973 | 81,998 | - | |||||||||||||||||
Owner occupied | 208 | 282 | 5,439 | 5,929 | 74,580 | 80,509 | 408 | |||||||||||||||||
Construction | - | - | 1,123 | 1,123 | 9,556 | 10,679 | - | |||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity installment | 216 | 132 | 1,325 | 1,673 | 31,155 | 32,828 | 19 | |||||||||||||||||
Home equity line of credit | - | 66 | 381 | 447 | 33,722 | 34,169 | - | |||||||||||||||||
Auto | 459 | 30 | 16 | 505 | 16,906 | 17,411 | 16 | |||||||||||||||||
Other | 48 | 4 | 65 | 117 | 6,022 | 6,139 | 17 | |||||||||||||||||
Residential: | ||||||||||||||||||||||||
Real estate | 99 | 544 | 3,357 | 4,000 | 92,765 | 96,765 | 1,027 | |||||||||||||||||
Construction | - | - | - | - | 7,948 | 7,948 | - | |||||||||||||||||
Total | $ | 1,706 | $ | 1,214 | $ | 13,844 | $ | 16,764 | $ | 416,792 | $ | 433,556 | $ | 1,723 | ||||||||||
* Includes $12.1 million of non-accrual loans. | ||||||||||||||||||||||||
Impaired loans | ||||||||||||||||||||||||
A loan is considered impaired when, based on current information and events; it is probable that the Company will be unable to collect the scheduled payments in accordance with the contractual terms of the loan. Factors considered in determining impairment include payment status, collateral value and the probability of collecting payments when due. The significance of payment delays and/or shortfalls is determined on a case-by-case basis. All circumstances surrounding the loan are taken into account. Such factors include the length of the delinquency, the underlying reasons and the borrower’s prior payment record. Impairment is measured on these loans on a loan-by-loan basis. Impaired loans include non-accrual loans, TDRs and other loans deemed to be impaired based on the aforementioned factors. As of September 30, 2013 and December 31, 2012, impaired loans consisted of non-accrual loans and TDRs. | ||||||||||||||||||||||||
At September 30, 2013, impaired loans consisted of accruing TDRs totaling $1.1 million and $6.1 million of non-accrual loans. At December 31, 2012, impaired loans consisted of accruing TDRs totaling $1.1 million and $12.1 million of non-accrual loans. As of September 30, 2013 and December 31, 2012, the non-accrual loans included non-accruing TDRs of $1.0 million and $1.1 million, respectively. Payments received from impaired loans are first applied against the outstanding principal balance, then to the recovery of any charged-off amounts. Any excess is treated as a recovery of interest income. | ||||||||||||||||||||||||
Impaired loans, segregated by class, as of the period indicated are detailed below: | ||||||||||||||||||||||||
Recorded | Recorded | Cash basis | ||||||||||||||||||||||
Unpaid | investment | investment | Total | Average | Interest | interest | ||||||||||||||||||
principal | with | with no | recorded | Related | recorded | income | income | |||||||||||||||||
(dollars in thousands) | balance | allowance | allowance | investment | allowance | investment | recognized | recognized | ||||||||||||||||
30-Sep-13 | ||||||||||||||||||||||||
Commercial & industrial | $ | 136 | $ | 102 | $ | 34 | $ | 136 | $ | 40 | $ | 81 | $ | 2 | $ | - | ||||||||
Commercial real estate: | ||||||||||||||||||||||||
Non-owner occupied | 1,962 | 410 | 1,572 | 1,982 | 37 | 2,319 | 25 | 59 | ||||||||||||||||
Owner occupied | 2,328 | 802 | 1,366 | 2,168 | 155 | 3,969 | 30 | - | ||||||||||||||||
Construction | 1,073 | 210 | 569 | 779 | 62 | 1,002 | - | - | ||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity installment | 370 | 99 | 200 | 299 | 14 | 825 | 37 | - | ||||||||||||||||
Home equity line of credit | 528 | 103 | 290 | 393 | 14 | 381 | - | - | ||||||||||||||||
Auto loans and leases | 12 | 12 | - | 12 | 1 | 3 | - | - | ||||||||||||||||
Other | - | - | - | - | - | 43 | - | - | ||||||||||||||||
Residential: | ||||||||||||||||||||||||
Real Estate | 1,593 | 582 | 856 | 1,438 | 73 | 1,903 | 54 | - | ||||||||||||||||
Construction | - | - | - | - | - | - | - | - | ||||||||||||||||
Total | $ | 8,002 | $ | 2,320 | $ | 4,887 | $ | 7,207 | $ | 396 | $ | 10,526 | $ | 148 | $ | 59 | ||||||||
Recorded | Recorded | Cash basis | ||||||||||||||||||||||
Unpaid | investment | investment | Total | Average | Interest | interest | ||||||||||||||||||
principal | with | with no | recorded | Related | recorded | income | income | |||||||||||||||||
(dollars in thousands) | balance | allowance | allowance | investment | allowance | investment | recognized | recognized | ||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||
Commercial & industrial | $ | 52 | $ | 8 | $ | 52 | $ | 60 | $ | 4 | $ | 275 | $ | 4 | $ | - | ||||||||
Commercial real estate: | ||||||||||||||||||||||||
Non-owner occupied | 2,431 | 957 | 1,420 | 2,377 | 233 | 4,172 | 152 | 20 | ||||||||||||||||
Owner occupied | 5,940 | 4,500 | 1,099 | 5,599 | 1,230 | 7,292 | 121 | - | ||||||||||||||||
Construction | 1,123 | 210 | 913 | 1,123 | 194 | 941 | - | - | ||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity installment | 1,480 | 524 | 782 | 1,306 | 38 | 1,023 | - | - | ||||||||||||||||
Home equity line of credit | 435 | 144 | 237 | 381 | 31 | 482 | - | - | ||||||||||||||||
Auto | - | - | - | - | - | 1 | - | - | ||||||||||||||||
Other | 102 | 16 | 32 | 48 | 8 | 36 | - | - | ||||||||||||||||
Residential: | ||||||||||||||||||||||||
Real Estate | 2,688 | 564 | 1,766 | 2,330 | 76 | 2,342 | 17 | - | ||||||||||||||||
Construction | - | - | - | - | - | 44 | - | - | ||||||||||||||||
Total | $ | 14,251 | $ | 6,923 | $ | 6,301 | $ | 13,224 | $ | 1,814 | $ | 16,608 | $ | 294 | $ | 20 | ||||||||
Credit Quality Indicators | ||||||||||||||||||||||||
Commercial and industrial and commercial real estate | ||||||||||||||||||||||||
The Company utilizes a loan grading system and assigns a credit risk grade to its loans in the commercial and industrial and commercial real estate portfolios. The grading system provides a means to measure portfolio quality and aids in the monitoring of the credit quality of the overall loan portfolio. The credit risk grades are arrived at using a risk rating matrix to assign a grade to each of the loans in the commercial and industrial and commercial real estate portfolios. | ||||||||||||||||||||||||
The following is a description of each risk rating category the Company uses to classify each of its commercial and industrial and commercial real estate loans: | ||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||
Loans in this category have an acceptable level of risk and are graded in a range of one to five. Secured loans generally have good collateral coverage. Current financial statements reflect acceptable balance sheet ratios, sales and earnings trends. Management is considered to be good, and there is some depth existing. Payment experience on the loans has been good with minor or no delinquency experience. Loans with a grade of one are of the highest quality in the range. Those graded five are of marginally acceptable quality. | ||||||||||||||||||||||||
Special Mention | ||||||||||||||||||||||||
Loans in this category are graded a six and may be protected but are potentially weak. They constitute a credit risk to the Company, but have not yet reached the point of adverse classification. Some of the following conditions may exist: little or no collateral coverage; lack of current financial information; delinquency problems; highly leveraged; available financial information reflects poor balance sheet ratios and profit and loss statements reflect uncertain trends; and document exceptions. Cash flow may not be sufficient to support total debt service requirements. Loans in this category should not remain on the list for an inordinate period of time (no more than one year) and then the loan should be passed or classified appropriately. | ||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||
Loans in this category are graded a seven and have a well-defined weakness which may jeopardize the ultimate collectability of the debt. The collateral pledged may be lacking in quality or quantity. Financial statements may indicate insufficient cash flow to service the debt; and/or do not reflect a sound net worth. The payment history indicates chronic delinquency problems. Management is considered to be weak. There is a distinct possibility that the Company may sustain a loss. All loans on non-accrual are rated substandard. Other loans that are included in the substandard category can be accruing, as well as loans that are current or past due. Some borrowers may also have claimed bankruptcy or plan to claim bankruptcy some-time in the near future. | ||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||
Loans in this category are graded an eight and have a better than 50% possibility of the Company sustaining a loss, but the loss cannot be determined because of specific reasonable factors which may strengthen credit in the near-term. Many of the weaknesses present in a substandard loan exist. Liquidation of collateral, if any, is likely. Any loan graded lower than an eight is considered to be uncollectible and charged-off. | ||||||||||||||||||||||||
Consumer and Residential | ||||||||||||||||||||||||
The consumer and residential loan segments are regarded as homogeneous loan pools and as such are not risk rated. For these portfolios, the Company utilizes payment activity, history and recency of payment. Non-performing loans are considered to be loans past due 90 days or more and accruing and non-accrual loans. All loans not classified as non-performing are considered performing. | ||||||||||||||||||||||||
The following table presents loans, segregated by class, categorized into the appropriate credit quality indicator category as of the period indicated: | ||||||||||||||||||||||||
Commercial credit exposure | ||||||||||||||||||||||||
Credit risk profile by creditworthiness category | ||||||||||||||||||||||||
Commercial real estate - | Commercial real estate - | Commercial real estate - | ||||||||||||||||||||||
Commercial and industrial | non-owner occupied | owner occupied | construction | |||||||||||||||||||||
(dollars in thousands) | 9/30/13 | 12/31/12 | 9/30/13 | 12/31/12 | 9/30/13 | 12/31/12 | 9/30/13 | 12/31/12 | ||||||||||||||||
Pass | $ | 63,568 | $ | 61,821 | $ | 80,246 | $ | 72,738 | $ | 80,900 | $ | 73,922 | $ | 8,361 | $ | 8,094 | ||||||||
Special mention | 2,322 | 2,221 | 4,071 | 3,520 | 200 | 222 | 1,575 | 1,422 | ||||||||||||||||
Substandard | 667 | 1,068 | 4,951 | 5,740 | 3,311 | 6,365 | 840 | 1,163 | ||||||||||||||||
Doubtful | - | - | - | - | - | - | - | - | ||||||||||||||||
Total | $ | 66,557 | $ | 65,110 | $ | 89,268 | $ | 81,998 | $ | 84,411 | $ | 80,509 | $ | 10,776 | $ | 10,679 | ||||||||
Consumer credit exposure | ||||||||||||||||||||||||
Credit risk profile based on payment activity | ||||||||||||||||||||||||
Home equity installment | Home equity line of credit | Auto loans and leases | Other | |||||||||||||||||||||
(dollars in thousands) | 9/30/13 | 12/31/12 | 9/30/13 | 12/31/12 | 9/30/13 | 12/31/12 | 9/30/13 | 12/31/12 | ||||||||||||||||
Performing | $ | 33,367 | $ | 31,503 | $ | 34,890 | $ | 33,788 | $ | 20,765 | $ | 17,395 | $ | 5,587 | $ | 6,074 | ||||||||
Non-performing | 299 | 1,325 | 415 | 381 | 18 | 16 | - | 65 | ||||||||||||||||
Total | $ | 33,666 | $ | 32,828 | $ | 35,305 | $ | 34,169 | $ | 20,783 | $ | 17,411 | $ | 5,587 | $ | 6,139 | ||||||||
Mortgage lending credit exposure | ||||||||||||||||||||||||
Credit risk profile based on payment activity | ||||||||||||||||||||||||
Residential real estate | Residential construction | |||||||||||||||||||||||
(dollars in thousands) | 9/30/13 | 12/31/12 | 9/30/13 | 12/31/12 | ||||||||||||||||||||
Performing | $ | 107,304 | $ | 93,408 | $ | 7,833 | $ | 7,948 | ||||||||||||||||
Non-performing | 1,615 | 3,357 | - | - | ||||||||||||||||||||
Total | $ | 108,919 | $ | 96,765 | $ | 7,833 | $ | 7,948 | ||||||||||||||||
Allowance for loan losses | ||||||||||||||||||||||||
Management continually evaluates the credit quality of the Company’s loan portfolio and performs a formal review of the adequacy of the allowance for loan losses (the allowance) on a quarterly basis. The allowance reflects management’s best estimate of the amount of credit losses in the loan portfolio. Management’s judgment is based on the evaluation of individual loans, past experience, the assessment of current economic conditions and other relevant factors including the amounts and timing of cash flows expected to be received on impaired loans. Those estimates may be susceptible to significant change. Loan losses are charged directly against the allowance when loans are deemed to be uncollectible. Recoveries from previously charged-off loans are added to the allowance when received. | ||||||||||||||||||||||||
Management applies two primary components during the loan review process to determine proper allowance levels. The two components are a specific loan loss allocation for loans that are deemed impaired and a general loan loss allocation for those loans not specifically allocated. The methodology to analyze the adequacy of the allowance for loan losses is as follows: | ||||||||||||||||||||||||
§ | identification of specific impaired loans by loan category; | |||||||||||||||||||||||
§ | specific loans that are not impaired, but have an identified potential for loss; | |||||||||||||||||||||||
§ | calculation of specific allowances where required for the impaired loans based on collateral and other objective and quantifiable evidence; | |||||||||||||||||||||||
§ | determination of loans with similar credit characteristics within each class of the loan portfolio segment and eliminating the impaired loans; | |||||||||||||||||||||||
§ | application of historical loss percentages (two-year average) to pools to determine the allowance allocation; | |||||||||||||||||||||||
§ | application of qualitative factor adjustment percentages to historical losses for trends or changes in the loan portfolio. | |||||||||||||||||||||||
§ | Qualitative factor adjustments include: | |||||||||||||||||||||||
o | levels of and trends in delinquencies and non-accrual loans; | |||||||||||||||||||||||
o | levels of and trends in charge-offs and recoveries; | |||||||||||||||||||||||
o | trends in volume and terms of loans; | |||||||||||||||||||||||
o | changes in risk selection and underwriting standards; | |||||||||||||||||||||||
o | changes in lending policies, procedures and practices; | |||||||||||||||||||||||
o | experience, ability and depth of lending management; | |||||||||||||||||||||||
o | national and local economic trends and conditions; and | |||||||||||||||||||||||
o | changes in credit concentrations. | |||||||||||||||||||||||
Allocation of the allowance for different categories of loans is based on the methodology as explained above. A key element of the methodology to determine the allowance is the Company’s credit risk evaluation process, which includes credit risk grading of individual commercial and industrial and commercial real estate loans. Commercial and industrial and commercial real estate loans are assigned credit risk grades based on the Company’s assessment of conditions that affect the borrower’s ability to meet its contractual obligations under the loan agreement. That process includes reviewing borrowers’ current financial information, historical payment experience, credit documentation, public information and other information specific to each individual borrower. Upon review, the commercial loan credit risk grade is revised or reaffirmed as the case may be. The credit risk grades may be changed at any time management feels an upgrade or downgrade may be warranted. The credit risk grades for the commercial and industrial and commercial real estate loan portfolios are taken into account in the reserve methodology and loss factors are applied based upon the credit risk grades. The loss factors applied are based upon the Company’s historical experience as well as what we believe to be best practices and common industry standards. Historical experience reveals there is a direct correlation between the credit risk grades and loan charge-offs. The changes in allocations in the commercial and industrial and commercial real estate loan portfolio from period to period are based upon the credit risk grading system and from periodic reviews of the loan portfolio. | ||||||||||||||||||||||||
Each quarter, management performs an assessment of the allowance for loan losses. The Company’s Special Assets Committee meets quarterly and the applicable lenders discuss each relationship under review and reach a consensus on the appropriate estimated loss amount based on current accounting guidance. The Special Assets Committee’s focus is on ensuring the pertinent facts are considered and the reserve amounts pursuant to the accounting principles are reasonable. The assessment process includes the review of all loans on a non-accruing basis as well as a review of certain loans to which the lenders or the Company’s Credit Administration function have assigned a criticized or classified risk rating. In 2013, the Company did not change its policy or methodology in calculating the allowance for loan losses from the policy or methodology used in 2012. | ||||||||||||||||||||||||
The Company’s policy is to charge off unsecured consumer loans when they become 90 days or more past due as to principal and interest. In the other portfolio segments, amounts are charged off at the point in time when the Company deems the balance, or a portion thereof, to be uncollectible. | ||||||||||||||||||||||||
Information related to the change in the allowance for loan losses and the Company’s recorded investment in loans by portfolio segment as of the period indicated is as follows: | ||||||||||||||||||||||||
As of and for the nine months ended September 30, 2013 | ||||||||||||||||||||||||
Commercial & | Commercial | Residential | ||||||||||||||||||||||
(dollars in thousands) | industrial | real estate | Consumer | real estate | Unallocated | Total | ||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||
Beginning balance | $ | 922 | $ | 4,908 | $ | 1,639 | $ | 1,503 | $ | - | $ | 8,972 | ||||||||||||
Charge-offs | 56 | 1,815 | 274 | 158 | - | 2,303 | ||||||||||||||||||
Recoveries | 8 | 28 | 99 | 1 | - | 136 | ||||||||||||||||||
Provision | 32 | 702 | 189 | 335 | 342 | 1,600 | ||||||||||||||||||
Ending balance | $ | 906 | $ | 3,823 | $ | 1,653 | $ | 1,681 | $ | 342 | $ | 8,405 | ||||||||||||
Ending balance: individually | ||||||||||||||||||||||||
evaluated for impairment | $ | 40 | $ | 254 | $ | 29 | $ | 73 | $ | 396 | ||||||||||||||
Ending balance: collectively | ||||||||||||||||||||||||
evaluated for impairment | $ | 866 | $ | 3,569 | $ | 1,624 | $ | 1,608 | $ | 7,667 | ||||||||||||||
Loans Receivables: | ||||||||||||||||||||||||
Ending balance | $ | 66,557 | $ | 184,455 | $ | 95,341 | $ | 116,752 | $ | 463,105 | ||||||||||||||
Ending balance: individually | ||||||||||||||||||||||||
evaluated for impairment | $ | 136 | $ | 4,929 | $ | 704 | $ | 1,438 | $ | 7,207 | ||||||||||||||
Ending balance: collectively | ||||||||||||||||||||||||
evaluated for impairment | $ | 66,421 | $ | 179,526 | $ | 94,637 | $ | 115,314 | $ | 455,898 | ||||||||||||||
As of and for the three months ended September 30, 2013 | ||||||||||||||||||||||||
Commercial & | Commercial | Residential | ||||||||||||||||||||||
(dollars in thousands) | industrial | real estate | Consumer | real estate | Unallocated | Total | ||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||
Beginning balance | $ | 919 | $ | 3,521 | $ | 1,647 | $ | 1,718 | $ | 491 | $ | 8,296 | ||||||||||||
Charge-offs | 8 | 188 | 94 | 94 | - | 384 | ||||||||||||||||||
Recoveries | 2 | 16 | 24 | 1 | - | 43 | ||||||||||||||||||
Provision | -7 | 474 | 76 | 56 | -149 | 450 | ||||||||||||||||||
Ending balance | $ | 906 | $ | 3,823 | $ | 1,653 | $ | 1,681 | $ | 342 | $ | 8,405 | ||||||||||||
As of and for the year ended December 31, 2012 | ||||||||||||||||||||||||
Commercial & | Commercial | Residential | ||||||||||||||||||||||
(dollars in thousands) | industrial | real estate | Consumer | real estate | Unallocated | Total | ||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||
Beginning balance | $ | 1,221 | $ | 3,979 | $ | 1,435 | $ | 1,051 | $ | 422 | $ | 8,108 | ||||||||||||
Charge-offs | 185 | 1,335 | 737 | 231 | - | 2,488 | ||||||||||||||||||
Recoveries | 26 | 46 | 30 | - | - | 102 | ||||||||||||||||||
Provision | -140 | 2,218 | 911 | 683 | -422 | 3,250 | ||||||||||||||||||
Ending balance | $ | 922 | $ | 4,908 | $ | 1,639 | $ | 1,503 | $ | - | $ | 8,972 | ||||||||||||
Ending balance: individually | ||||||||||||||||||||||||
evaluated for impairment | $ | 4 | $ | 1,657 | $ | 77 | $ | 76 | $ | 1,814 | ||||||||||||||
Ending balance: collectively | ||||||||||||||||||||||||
evaluated for impairment | $ | 918 | $ | 3,251 | $ | 1,562 | $ | 1,427 | $ | 7,158 | ||||||||||||||
Loans Receivables: | ||||||||||||||||||||||||
Ending balance | $ | 65,110 | $ | 173,186 | $ | 90,547 | $ | 104,713 | $ | 433,556 | ||||||||||||||
Ending balance: individually | ||||||||||||||||||||||||
evaluated for impairment | $ | 60 | $ | 9,099 | $ | 1,735 | $ | 2,330 | $ | 13,224 | ||||||||||||||
Ending balance: collectively | ||||||||||||||||||||||||
evaluated for impairment | $ | 65,050 | $ | 164,087 | $ | 88,812 | $ | 102,383 | $ | 420,332 | ||||||||||||||
Information related to the change in the allowance for loan losses as of and for the three- and nine- months ended September 30, 2012 is a follows: | ||||||||||||||||||||||||
As of and for the nine months ended September 30, 2012 | ||||||||||||||||||||||||
Commercial & | Commercial | Residential | ||||||||||||||||||||||
(dollars in thousands) | industrial | real estate | Consumer | real estate | Unallocated | Total | ||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||
Beginning balance | $ | 1,221 | $ | 3,979 | $ | 1,435 | $ | 1,051 | $ | 422 | $ | 8,108 | ||||||||||||
Charge-offs | 135 | 1,258 | 491 | 121 | - | 2,005 | ||||||||||||||||||
Recoveries | 23 | - | 16 | - | - | 39 | ||||||||||||||||||
Provision | 55 | 1,083 | 457 | 579 | -174 | 2,000 | ||||||||||||||||||
Ending balance | $ | 1,164 | $ | 3,804 | $ | 1,417 | $ | 1,509 | $ | 248 | $ | 8,142 | ||||||||||||
As of and for the three months ended September 30, 2012 | ||||||||||||||||||||||||
Commercial & | Commercial | Residential | ||||||||||||||||||||||
(dollars in thousands) | industrial | real estate | Consumer | real estate | Unallocated | Total | ||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||
Beginning balance | $ | 1,195 | $ | 4,143 | $ | 1,425 | $ | 1,333 | $ | 55 | $ | 8,151 | ||||||||||||
Charge-offs | 70 | 518 | 57 | 76 | - | 721 | ||||||||||||||||||
Recoveries | 11 | - | 1 | - | - | 12 | ||||||||||||||||||
Provision | 28 | 179 | 48 | 252 | 193 | 700 | ||||||||||||||||||
Ending balance | $ | 1,164 | $ | 3,804 | $ | 1,417 | $ | 1,509 | $ | 248 | $ | 8,142 | ||||||||||||
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Earnings per share | ' | |||||||||||
6. Earnings per share | ||||||||||||
Basic earnings per share (EPS) is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS is computed in the same manner as basic EPS but also reflects the potential dilution that could occur from the grant of stock-based compensation awards. The Company maintains two active share-based compensation plans that may generate additional potentially dilutive common shares. For granted and unexercised stock options, dilution would occur if Company-issued stock options were exercised and converted into common stock. Since the average share market prices of the Company’s common stock, during the three- and nine- months ended September 30, 2013 and 2012, were below the strike prices of all unexercised outstanding options, there were no potentially dilutive shares outstanding in any of the reportable periods related to stock options. For restricted stock, dilution would occur from the Company’s unvested shares. There were 14,000 and 151 unvested restricted share grants outstanding as of September 30, 2013 and 2012, respectively. | ||||||||||||
In the computation of diluted EPS, the Company uses the treasury stock method to determine the dilutive effect of its granted but unexercised stock options and unvested restricted stock. Under the treasury stock method, the assumed proceeds, as defined, received from shares issued in a hypothetical stock option exercise or restricted stock grant, are assumed to be used to purchase treasury stock. Proceeds include: amounts received from the exercise of outstanding stock options; compensation cost for future service that the Company has not yet recognized in earnings; and any windfall tax benefits that would be credited directly to shareholders’ equity when the grant generates a tax deduction (or a reduction in proceeds if there is a charge to equity). The Company does not consider awards from share-based grants in the computation of basic EPS. | ||||||||||||
The following table illustrates the data used in computing basic and diluted EPS for the periods indicated: | ||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
(dollars in thousands except per share data) | ||||||||||||
Basic EPS: | ||||||||||||
Net income available to common shareholders | $ | 1,505 | $ | 1,399 | $ | 4,412 | $ | 3,973 | ||||
Weighted-average common shares outstanding | 2,359,947 | 2,294,416 | 2,345,453 | 2,277,801 | ||||||||
Basic EPS | $ | 0.64 | $ | 0.61 | $ | 1.88 | $ | 1.74 | ||||
Diluted EPS: | ||||||||||||
Net income available to common shareholders | $ | 1,505 | $ | 1,399 | $ | 4,412 | $ | 3,973 | ||||
Weighted-average common shares outstanding | 2,359,947 | 2,294,416 | 2,345,453 | 2,277,801 | ||||||||
Potentially dilutive common shares | 4,632 | 151 | 4,407 | 151 | ||||||||
Weighted-average common and potentially | ||||||||||||
dilutive shares outstanding | 2,364,579 | 2,294,567 | 2,349,860 | 2,277,952 | ||||||||
Diluted EPS | $ | 0.64 | $ | 0.61 | $ | 1.88 | $ | 1.74 | ||||
Stock_Plans
Stock Plans | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Stock Plans [Abstract] | ' | |||||||||||||
Stock plans | ' | |||||||||||||
7. Stock plans | ||||||||||||||
The Company has two stock-based compensation plans (the stock compensation plans) from which it can grant stock-based compensation awards, and applies the fair value method of accounting for stock-based compensation provided under current accounting guidance. The guidelines require the cost of share-based payment transactions (including those with employees and non-employees) be recognized in the financial statements. The Company’s stock compensation plans were shareholder-approved and permit the grant of share-based compensation awards to its employees and directors. The Company believes that the stock-based compensation plans will advance the development, growth and financial condition of the Company by providing incentives through participation in the appreciation in the value of the common stock of the Company to secure, retain and motivate the Company’s employees and directors who are responsible for the operation and the management of the affairs of the Company, thereby aligning the interest of its employees and directors with the interest of its shareholders. In the stock compensation plans, employees and directors are eligible to be awarded stock-based compensation grants which can consist of stock options (qualified and non-qualified), stock appreciation rights (SARs) and restricted stock. | ||||||||||||||
At the annual shareholders’ meeting held on May 1, 2012, the shareholders of the Company approved and the Company adopted the 2012 Omnibus Stock Incentive Plan and the 2012 Director Stock Incentive Plan (collectively, the 2012 stock incentive plans). The 2012 stock incentive plans replaced the 2000 Independent Directors Stock Option Plan and the 2000 Stock Incentive Plan (collectively, the 2000 stock incentive plans), both of which expired in 2011. Unless terminated by the Company’s board of directors, the 2012 stock incentive plans will expire on, and no options shall be granted after the tenth anniversary – or in the year 2022. Previously issued and currently outstanding options under the 2000 stock incentive plans may be exercised pursuant to the terms of the stock option plans existing at the time of grant. However, the outstanding options under the 2000 stock incentive plans may be cancelled and replaced with grants under the 2012 stock incentive plans. | ||||||||||||||
In the 2012 Omnibus Stock Incentive Plan, the Company has reserved 500,000 shares of its no-par common stock for future issuance. In the Omnibus Stock Incentive Plan, 6,000 and 151 restricted stock awards were granted to employees during the first quarter of 2013 and the second quarter of 2012, respectively. In the 2012 grant, 134 of the 151 shares became fully vested during the second quarter of 2013 with the remaining 17 grants forfeited. The 2013 stock grants will vest over a period of four years. The Company recognizes share-based compensation expense over the requisite service or vesting period. Due to immateriality however, the entire expense, or $2 thousand, from the 2012 grant was recognized on the date of grant. | ||||||||||||||
In the 2012 Director Stock Incentive Plan, the Company has reserved 500,000 shares of its no-par common stock for issuance under the plan. In the Director Stock Incentive Plan, 8,000 restricted stock awards were granted to the members of the board of directors during the first quarter of 2013. The grants will vest over a period of two years. Share-based compensation expense is included as a component of salaries and employee benefits in the consolidated statements of income. | ||||||||||||||
The following table summarizes the weighted-average fair value and vesting of restricted stock grants awarded during 2013 and 2012 under the 2012 stock incentive plans: | ||||||||||||||
2013 | 2012 | |||||||||||||
Weighted- | Weighted- | |||||||||||||
Shares | average grant | Vesting | Shares | average grant | Vesting | |||||||||
granted | date fair value | period | granted | date fair value | period | |||||||||
Director plan | 8,000 | $ | 21.20 | 2 yrs - 50% per year | - | $ | - | |||||||
Omnibus plan | 6,000 | 21.20 | 4 yrs - 25% per year | 151 | 21.50 | 1 year | ||||||||
Total | 14,000 | $ | 21.20 | 151 | $ | 21.50 | ||||||||
The following tables illustrate stock-based compensation expense recognized during the three- and nine- months ended September 30, 2013 and 2012 and the unrecognized stock-based compensation expense as of September 30, 2013. There was no unrecognized stock-based compensation expense as of December 31, 2012: | ||||||||||||||
Three months ended | Nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Stock-based compensation expense: | ||||||||||||||
Director plan | $ | 22 | $ | - | $ | 57 | $ | - | ||||||
Omnibus plan | 7 | 2 | 21 | 2 | ||||||||||
Total stock-based compensation expense | $ | 29 | $ | 2 | $ | 78 | $ | 2 | ||||||
As of | ||||||||||||||
(dollars in thousands) | 30-Sep-13 | |||||||||||||
Unrecognized stock-based compensation expense: | ||||||||||||||
Director plan | $ | 113 | ||||||||||||
Omnibus plan | 106 | |||||||||||||
Total unrecognized stock-based compensation expense | $ | 219 | ||||||||||||
The unrecognized stock-based compensation expense as of September 30, 2013 will be recognized ratably over the periods ended January 2015 and January 2017 for the Director Plan and the Omnibus Plan, respectively. | ||||||||||||||
For restricted stock, intrinsic value represents the closing price of the underlying stock at the end of the period. As of September 30, 2013, the intrinsic value of the Company’s restricted stock under the Director and Omnibus plans was $27.00 per share. | ||||||||||||||
In addition to the 2012 stock incentive plans, the Company established the 2002 Employee Stock Purchase Plan (the ESPP) and reserved 110,000 shares of its un-issued capital stock for issuance under the plan. The ESPP was designed to promote broad-based employee ownership of the Company’s stock and to motivate employees to improve job performance and enhance the financial results of the Company. Under the ESPP, participation is voluntary whereby employees use automatic payroll withholdings to purchase the Company’s capital stock at a discounted price based on the fair market value of the capital stock as measured on either the commencement or termination dates, as defined. As of September 30, 2013, 29,956 shares have been issued under the ESPP. The ESPP is considered a compensatory plan and is required to comply with the provisions of current accounting guidance. Therefore, the Company recognizes compensation expense on its ESPP on the date the shares are purchased. For the nine months ended September 30, 2013 and 2012, compensation expense related to the ESPP approximated $10 thousand and $12 thousand, respectively, and is included as a component of salaries and employee benefits in the consolidated statements of income. There was no compensation expense related to the ESPP for the three months ended September 30, 2013 and 2012. | ||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||||
Fair value measurements | ' | ||||||||||||||
8. Fair value measurements | |||||||||||||||
The accounting guidelines establish a framework for measuring and disclosing information about fair value measurements. The guidelines of fair value reporting instituted a valuation hierarchy for disclosure of the inputs used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows: | |||||||||||||||
Level 1 - inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; | |||||||||||||||
Level 2 - inputs are quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; | |||||||||||||||
Level 3 - inputs are unobservable and are based on the Company’s own assumptions to measure assets and liabilities at fair value. Level 3 pricing for securities may also include unobservable inputs based upon broker-traded transactions. | |||||||||||||||
A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. | |||||||||||||||
The Company uses fair value to measure certain assets and, if necessary, liabilities on a recurring basis when fair value is the primary measure for accounting. Thus, the Company uses fair value for AFS securities. Fair value is used on a non-recurring basis to measure certain assets when adjusting carrying values to market values, such as impaired loans and other real estate owned. | |||||||||||||||
The following table represents the carrying amount and estimated fair value of the Company’s financial instruments as of the periods indicated: | |||||||||||||||
30-Sep-13 | |||||||||||||||
Quoted prices | Significant | Significant | |||||||||||||
in active | other | other | |||||||||||||
Carrying | Estimated | markets | observable inputs | unobservable inputs | |||||||||||
(dollars in thousands) | amount | fair value | (Level 1) | (Level 2) | (Level 3) | ||||||||||
Financial assets: | |||||||||||||||
Cash and cash equivalents | $ | 35,885 | $ | 35,885 | $ | 35,885 | $ | - | $ | - | |||||
Held-to-maturity securities | 190 | 207 | - | 207 | - | ||||||||||
Available-for-sale securities | 102,921 | 102,921 | 519 | 99,459 | 2,943 | ||||||||||
FHLB Stock | 2,160 | 2,160 | - | 2,160 | - | ||||||||||
Loans and leases, net | 454,700 | 455,351 | - | - | 455,351 | ||||||||||
Loans held-for-sale | 903 | 920 | - | 920 | - | ||||||||||
Financial liabilities: | |||||||||||||||
Deposit liabilities | 544,830 | 545,242 | - | 545,242 | - | ||||||||||
Short-term borrowings | 14,197 | 14,197 | - | 14,197 | - | ||||||||||
Long-term debt | 16,000 | 18,092 | - | 18,092 | - | ||||||||||
31-Dec-12 | |||||||||||||||
Quoted prices | Significant | Significant | |||||||||||||
in active | other | other | |||||||||||||
Carrying | Estimated | markets | observable inputs | unobservable inputs | |||||||||||
(dollars in thousands) | amount | fair value | (Level 1) | (Level 2) | (Level 3) | ||||||||||
Financial assets: | |||||||||||||||
Cash and cash equivalents | $ | 21,846 | $ | 21,846 | $ | 21,846 | $ | - | $ | - | |||||
Held-to-maturity securities | 289 | 320 | - | 320 | - | ||||||||||
Available-for-sale securities | 100,441 | 100,441 | 466 | 98,150 | 1,825 | ||||||||||
FHLB Stock | 2,624 | 2,624 | - | 2,624 | - | ||||||||||
Loans, net | 424,584 | 430,861 | - | - | 430,861 | ||||||||||
Loans held-for-sale | 10,545 | 10,824 | - | 10,824 | - | ||||||||||
Financial liabilities: | |||||||||||||||
Deposit liabilities | 514,660 | 515,869 | - | 515,869 | - | ||||||||||
Short-term borrowings | 8,056 | 8,056 | - | 8,056 | - | ||||||||||
Long-term debt | 16,000 | 18,691 | - | 18,691 | - | ||||||||||
The carrying value of short-term financial instruments, as listed below, approximates their fair value. These instruments generally have limited credit exposure, no stated or short-term maturities, carry interest rates that approximate market and generally are recorded at amounts that are payable on demand : | |||||||||||||||
· | Cash and cash equivalents; | ||||||||||||||
· | Non-interest bearing deposit accounts; | ||||||||||||||
· | Savings, NOW and money market accounts and | ||||||||||||||
· | Short-term borrowings. | ||||||||||||||
Securities: With the exception of pooled trust preferred securities, fair values on investment securities are determined by prices provided by a third-party vendor, who is a provider of financial market data, analytics and related services to financial institutions. The fair values of pooled trust preferred securities are determined based on a present value technique (income valuation). | |||||||||||||||
FHLB stock: The Company considers the fair value of FHLB stock is equal to its carrying value or cost since there is no market value available and investments in and transactions for the stock are restricted and limited to the FHLB and its member-banks. | |||||||||||||||
Loans: The fair value of loans is estimated by the net present value of the future expected cash flows discounted at current offering rates for similar loans. Current offering rates consider, among other things, credit risk. The carrying value that fair value is compared to is net of the allowance for loan losses and since there is significant judgment included in evaluating credit quality, loans are classified within Level 3 of the fair value hierarchy. | |||||||||||||||
Loans held-for-sale: The fair value of loans held-for-sale is estimated using rates currently offered for similar loans and is typically obtained from FNMA or the FHLB. | |||||||||||||||
Certificates of deposit: The fair value of certificates of deposit is based on discounted cash flows using rates which approximate market rates for deposits of similar maturities. | |||||||||||||||
Long-term debt: Fair value is estimated using the rates currently offered for similar borrowings. | |||||||||||||||
The following tables illustrate the financial instruments measured at fair value on a recurring basis segregated by hierarchy fair value levels as of the period indicated: | |||||||||||||||
Quoted prices | |||||||||||||||
in active | Significant other | Significant other | |||||||||||||
Total carrying value | markets | observable inputs | unobservable inputs | ||||||||||||
(dollars in thousands) | 30-Sep-13 | (Level 1) | (Level 2) | (Level 3) | |||||||||||
Available-for-sale securities: | |||||||||||||||
Agency - GSE | $ | 15,709 | $ | - | $ | 15,709 | $ | - | |||||||
Obligations of states and political | |||||||||||||||
subdivisions | 31,162 | - | 31,162 | - | |||||||||||
Corporate bonds: | |||||||||||||||
Pooled trust preferred securities | 2,943 | - | - | 2,943 | |||||||||||
MBS - GSE residential | 52,588 | - | 52,588 | - | |||||||||||
Equity securities - financial services | 519 | 519 | - | - | |||||||||||
Total available-for-sale securities | $ | 102,921 | $ | 519 | $ | 99,459 | $ | 2,943 | |||||||
Quoted prices | |||||||||||||||
in active | Significant other | Significant other | |||||||||||||
Total carrying value | markets | observable inputs | unobservable inputs | ||||||||||||
(dollars in thousands) | 31-Dec-12 | (Level 1) | (Level 2) | (Level 3) | |||||||||||
Available-for-sale securities: | |||||||||||||||
Agency - GSE | $ | 17,740 | $ | - | $ | 17,740 | $ | - | |||||||
Obligations of states and political | |||||||||||||||
subdivisions | 29,857 | - | 29,857 | - | |||||||||||
Corporate bonds: | |||||||||||||||
Pooled trust preferred securities | 1,825 | - | - | 1,825 | |||||||||||
MBS - GSE residential | 50,553 | - | 50,553 | - | |||||||||||
Equity securities - financial services | 466 | 466 | - | - | |||||||||||
Total available-for-sale securities | $ | 100,441 | $ | 466 | $ | 98,150 | $ | 1,825 | |||||||
Equity securities in the AFS portfolio are measured at fair value using quoted market prices for identical assets and are classified within Level 1 of the valuation hierarchy. Other than the Company’s investment in corporate bonds, consisting of pooled trust preferred securities, other debt securities in the AFS portfolio are measured at fair value using market quotations provided by a third-party vendor, who is a provider of financial market data, analytics and related services to financial institutions. Assets classified as Level 2 use valuation techniques that are common to bond valuations. That is, in active markets whereby bonds of similar characteristics frequently trade, quotes for similar assets are obtained. For the nine months ended September 30, 2013, there were no transfers to or from Level 1 and Level 2 fair value measurements for financial assets measured on a recurring basis. | |||||||||||||||
The Company’s pooled trust preferred securities include both observable and unobservable inputs to determine fair value and, therefore, are considered Level 3 inputs. The accounting pronouncement related to fair value measurement provides guidance on estimating fair value when the volume and level of activity for an asset or liability have significantly decreased in relation to normal market activity such as is the case with the Company’s investment in pooled trust preferred securities. | |||||||||||||||
The following table presents and summarizes quantitative information about assets measured at fair value on a recurring basis whereby the Company uses Level 3 inputs to determine fair value: | |||||||||||||||
Quantitative information about Level 3 fair value measurements as of the periods indicated: | |||||||||||||||
30-Sep-13 | 31-Dec-12 | 30-Sep-13 | 31-Dec-12 | ||||||||||||
Valuation | Fair | Fair | Unobservable | Input | Input | ||||||||||
(dollars in thousands) | technique | value | value | input | utilized | utilized | |||||||||
Available-for-sale securities: | |||||||||||||||
Pooled trust preferred securities | |||||||||||||||
discounted | $ | 2,943 | $ | 1,825 | - | structural behavior | issuer specific | issuer specific | |||||||
cash flow | - | estimated probability of default | 2.19% - 2.76% | 4.11% - 4.17% | |||||||||||
- | correlation analysis among issuers | 50% - 30% | 50% - 30% | ||||||||||||
- | loss given default rate | 100% | 100% | ||||||||||||
- | prepayment rate | 0% | 0% | ||||||||||||
- | recovery rate | 0% | 0% | ||||||||||||
- | credit adjusted cash flow discount rate | 0% - 75.0% | 0% - 36.3% | ||||||||||||
The Company owns 13 issues of $22.3 million, original par value, pooled trust preferred securities. As of September 30, 2013, the amortized cost and fair values amounted to $6.1 million and $2.9 million, respectively. The market for these securities is inactive – no new issues since 2007, financial institutions with less than $10 billion in assets qualify for new issue Tier 1 capital treatment which further limits the already low probability of a new issue coming to market, trading is sparse and consummated mostly by speculative hedge funds. Observable pricing market inputs such as broker models, S&P pricing based on interpolated available market activity and Bloomberg fair value models for corporate issues are available, however, such inputs to be used as indicators of fair value would require significant adjustments. Therefore, management has determined that a fair value modeled income approach (discounted cash flow) is more representative of fair value than the market approach. This technique strives to maximize the use of observable inputs and minimizes the use of unobservable inputs. The Company uses the Moody’s Wall Street Analytics methodology of valuation and analysis of collateralized “TruPS”, and their proprietary software to help analyze and value the Company’s pooled trust preferred securities portfolio. The major unobservable input assumptions used in the cash flow analysis include: | |||||||||||||||
· | Credit quality estimated using issuer specific probability of default; | ||||||||||||||
· | Correlation analysis or the potential for the tendency of companies to default once other companies in the same industry default: 50% for same industry and 30% for across industries; | ||||||||||||||
· | Loss given default or cash lost to investor. Assumed to be 100% with no recovery; | ||||||||||||||
· | Cash flows were forecast for the underlying collateral and applied to each tranche to determine the resulting distribution among securities, capturing the credit risk element of the collateral, and to determine the estimated fundamental value of the security. No prepayments are assumed and the tranche coupon rate is used as the discount rate; and | ||||||||||||||
· | Finally, the orderly liquid exit values (OLEV) are calculated for valuation purposes. The OLEV estimates a new issuance spread as if the market was both liquid and active utilizing the current risk profile of the security and regression analysis across a large sample of tranches based on historical data. The discount rates determined on an overall basis ranged from 0% to 75% as of September 30, 2013 and are applied to the fundamental cash flow value (as determined above) of the security to determine fair value. | ||||||||||||||
The following table illustrates the changes in Level 3 financial instruments, consisting of the Company’s investment in pooled trust preferred securities, measured at fair value on a recurring basis for the periods indicated: | |||||||||||||||
As of and for the nine months ended September 30, | |||||||||||||||
(dollars in thousands) | 2013 | 2012 | |||||||||||||
Balance at beginning of period | $ | 1,825 | $ | 1,466 | |||||||||||
Realized losses in earnings | - | -136 | |||||||||||||
Unrealized gains (losses) in OCI: | |||||||||||||||
Gains | 1,519 | 518 | |||||||||||||
Losses | -193 | -113 | |||||||||||||
Pay down / settlement | -216 | -96 | |||||||||||||
Interest paid-in-kind | 6 | 21 | |||||||||||||
Accretion | 2 | 3 | |||||||||||||
Balance at end of period | $ | 2,943 | $ | 1,663 | |||||||||||
The following table illustrates the financial instruments measured at fair value on a non-recurring basis segregated by hierarchy fair value levels as of the periods indicated: | |||||||||||||||
Quoted prices in | Significant other | Significant other | |||||||||||||
Total carrying value | active markets | observable inputs | unobservable inputs | ||||||||||||
(dollars in thousands) | at September 30, 2013 | (Level 1) | (Level 2) | (Level 3) | |||||||||||
Impaired loans | $ | 1,924 | $ | - | $ | - | $ | 1,924 | |||||||
Other real estate owned | 1,987 | - | - | 1,987 | |||||||||||
Total | $ | 3,911 | $ | - | $ | - | $ | 3,911 | |||||||
Quoted prices in | Significant other | Significant other | |||||||||||||
Total carrying value | active markets | observable inputs | unobservable inputs | ||||||||||||
(dollars in thousands) | at December 31, 2012 | (Level 1) | (Level 2) | (Level 3) | |||||||||||
Impaired loans | $ | 5,109 | $ | - | $ | - | $ | 5,109 | |||||||
Other real estate owned | 1,448 | - | - | 1,448 | |||||||||||
Other repossessed assets | 6 | - | - | 6 | |||||||||||
Total | $ | 6,563 | $ | - | $ | - | $ | 6,563 | |||||||
From time-to-time, the Company may be required to record at fair value financial instruments on a non-recurring basis, such as impaired loans and other real estate owned (ORE) and other repossessed assets. These non-recurring fair value adjustments involve the application of lower-of-cost-or-market accounting on write downs of individual assets. The following describes valuation methodologies used for financial instruments measured at fair value on a non-recurring basis. | |||||||||||||||
A loan is considered impaired when, based upon current information and events; it is probable that the Company will be unable to collect all scheduled payments in accordance with the contractual terms of the loan. Impaired loans that are collateral dependent are written down to fair value through the establishment of specific reserves, a component of the allowance for loan losses, and as such are carried at the lower of net recorded investment or the estimated fair value. | |||||||||||||||
Estimates of fair value of the collateral are determined based on a variety of information, including available valuations from certified appraisers for similar assets, present value of discounted cash flows and inputs that are estimated based on commonly used and generally accepted industry liquidation advance rates and other estimates and assumptions developed by management. | |||||||||||||||
Valuation techniques for impaired loans are typically determined through independent appraisals of the underlying collateral or may be determined through present value of discounted cash flows. Both techniques include various Level 3 inputs which are not identifiable. The valuation technique may be adjusted by management for estimated liquidation expenses and qualitative factors such as economic conditions. If real estate is not the primary source of repayment, present value of discounted cash flows and estimates using generally accepted industry liquidation advance rates and other factors may be utilized to determine fair value. For example, from time-to-time, the Company may refer to the National Automobile Dealers Association (NADA) guide to estimate vehicle’s fair value for an impaired auto loan. At September 30, 2013, the range of liquidation expenses and other valuation adjustments applied to impaired loans ranged from -16.00% to -95.37% (weighted-average -39.48%). Due to the multitude of assumptions, many of which are subjective in nature, and the varying inputs and techniques used to determine fair value, the Company recognizes that valuations could differ across a wide spectrum of techniques employed. Accordingly, fair value estimates for impaired loans are classified as Level 3. | |||||||||||||||
For other real estate owned, fair value is generally determined through independent appraisals of the underlying properties which generally include various Level 3 inputs which are not identifiable. The appraisals may be adjusted by management for qualitative reasons and estimated liquidation expenses. Management’s assumptions may include consideration of the location and occupancy of the property, along with current economic conditions. Subsequently, as these properties are actively marketed, the estimated fair values may be periodically adjusted through incremental subsequent write-downs. These write-downs usually reflect decreases in estimated values resulting from sales price observations as well as changing economic and market conditions. At September 30, 2013, adjustments to the appraisal values for other real estate owned ranged from -1.72% to -60.90% (weighted average -26.76%). | |||||||||||||||
For repossessed assets, consisting of one automobile as of December 31, 2012, the Company refers to the NADA guide to determine a vehicle’s fair value. There were no other repossessed assets at September 30, 2013. | |||||||||||||||
Nature_Of_Operations_And_Criti1
Nature Of Operations And Critical Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 2013 | |
Nature Of Operations And Critical Accounting Policies [Abstract] | ' |
Principles of Consolidation [Policy Text Block] | ' |
The accompanying unaudited consolidated financial statements of the Company and the Bank have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and with the instructions to this Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnote disclosures required by GAAP for complete financial statements. In the opinion of management, all normal recurring adjustments necessary for a fair presentation of the financial condition and results of operations for the periods have been included. All significant inter-company balances and transactions have been eliminated in consolidation. | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported periods. Actual results could differ from those estimates. For additional information and disclosures required under GAAP, refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. | |
Management is responsible for the fairness, integrity and objectivity of the unaudited financial statements included in this report. Management prepared the unaudited financial statements in accordance with GAAP. In meeting its responsibility for the financial statements, management depends on the Company's accounting systems and related internal controls. These systems and controls are designed to provide reasonable but not absolute assurance that the financial records accurately reflect the transactions of the Company, the Company’s assets are safeguarded and that the financial statements present fairly the financial condition and results of operations of the Company. | |
In the opinion of management, the consolidated balance sheets as of September 30, 2013 and December 31, 2012 and the related consolidated statements of income and consolidated statements of comprehensive income for the three- and nine-months ended September 30, 2013 and 2012, and consolidated statements of changes in shareholders’ equity and consolidated statements of cash flows for the nine months ended September 30, 2013 and 2012 present fairly the financial condition and results of operations of the Company. All material adjustments required for a fair presentation have been made. These adjustments are of a normal recurring nature. Certain reclassifications have been made to the 2012 financial statements to conform to the 2013 presentation. | |
In preparing these consolidated financial statements, the Company evaluated the events and transactions that occurred after September 30, 2013 through the date these consolidated financials statements were issued. | |
This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2012, and the notes included therein, included within the Company’s Annual Report filed on Form 10-K. | |
Use Of Estimates [Policy Text Block] | ' |
The presentation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect many of the reported amounts and disclosures. Actual results could differ from these estimates. | |
A material estimate that is particularly susceptible to significant change relates to the determination of the allowance for loan losses. Management believes that the allowance for loan losses at September 30, 2013 is adequate and reasonable. Given the subjective nature of identifying and valuing loan losses, it is likely that well-informed individuals could make different assumptions and could, therefore, calculate a materially different allowance value. While management uses available information to recognize losses on loans, changes in economic conditions may necessitate revisions in the future. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses. Such agencies may require the Company to recognize adjustments to the allowance based on their judgment of information available to them at the time of their examination. | |
Another material estimate is the calculation of fair values of the Company’s investment securities. Except for the Company’s investment in corporate bonds, consisting of pooled trust preferred securities, fair values of the other investment securities are determined by pricing provided by a third-party vendor, who is a provider of financial market data, analytics and related services to financial institutions. For the Company’s investment in pooled trust preferred securities, management is unable to obtain readily attainable and realistic pricing from market traders due to a lack of active market participants and therefore management has determined the market for these securities to be inactive. In order to determine the fair value of the pooled trust preferred securities, management relied on the use of an income valuation approach (present value technique) that maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs, the results of which are more representative of fair value than the market approach valuation technique used for the other investment securities. | |
Investment Securities [Pollicy Text Block] | ' |
Based on experience, management is aware that estimated fair values of investment securities tend to vary among valuation services. Accordingly, when selling investment securities, price quotes may be obtained from more than one source. The majority of the Company’s investment securities are classified as available-for-sale (AFS). AFS securities are carried at fair value on the consolidated balance sheets, with unrealized gains and losses, net of income tax, reported separately within shareholders’ equity as a component of accumulated other comprehensive income (loss) (OCI). | |
Loans [Policy Text Block] | ' |
During the first quarter of 2013, the Company commenced its automobile leasing operations, a component of auto loans and leases in the consumer segment of the loan portfolio. Financing of automobiles, provided to customers under lease arrangements of varying terms, are accounted for as direct finance leases. Interest on automobile direct finance leasing is determined using the interest method. Generally, the interest method is used to arrive at a level effective yield over the life of the lease. | |
Loans Held-For-Sale [Policy Text Block] | ' |
The fair value of residential mortgage loans, classified as held-for-sale (HFS), is obtained from the Federal National Mortgage Association (FNMA) or the Federal Home Loan Bank (FHLB). Generally, the market to which the Company sells residential mortgages it originates for sale is restricted and price quotes from other sources are not typically obtained. On occasion, the Company may transfer loans from the loan portfolio to loans HFS. Under these circumstances, pricing may be obtained from other entities and the loans are transferred at the lower of cost or market value and simultaneously sold. As of September 30, 2013 and December 31, 2012, loans classified as HFS consisted of residential mortgage loans. | |
Foreclosed Assets Held-For-Sale [Policy Text Block] | ' |
Foreclosed assets held-for-sale includes other real estate acquired through foreclosure (ORE) and may, from time-to-time, include repossessed assets such as automobiles. ORE is carried at the lower of cost (principal balance at date of foreclosure) or fair value less estimated cost to sell. Any write-downs at the date of foreclosure or within a reasonable period of time after foreclosure are charged to the allowance for loan losses. Expenses incurred to maintain ORE properties, subsequent write downs to the asset’s fair value and gains or losses on disposal are included as components of other real estate owned expense in the consolidated statements of income. | |
Cash Flows [Policy Text Block] | ' |
For purposes of the consolidated statements of cash flows, cash and cash equivalents includes cash on hand, amounts due from banks and interest-bearing deposits with financial institutions. For the nine months ended September 30, 2013 and 2012, the Company paid interest of $2.2 million and $2.6 million, respectively. The Company was required to pay income taxes of $1.1 million and $1.8 million during the first nine months of 2013 and 2012, respectively. Transfers from loans to foreclosed assets held-for-sale amounted to $2.2 million and $1.4 million during the nine months ended September 30, 2013 and 2012. During the same respective periods, transfers from loans to loans HFS amounted to $2.9 million and $2.8 million. Expenditures for construction in process, a component of other assets in the consolidated balance sheets, are included in acquisition of bank premises and equipment. | |
Earnings_Per_Share_Policy
Earnings Per Share (Policy) | 9 Months Ended |
Sep. 30, 2013 | |
Earnings Per Share [Abstract] | ' |
Earnings Per Share, Policy [Policy Text Block] | ' |
Basic earnings per share (EPS) is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS is computed in the same manner as basic EPS but also reflects the potential dilution that could occur from the grant of stock-based compensation awards. The Company maintains two active share-based compensation plans that may generate additional potentially dilutive common shares. For granted and unexercised stock options, dilution would occur if Company-issued stock options were exercised and converted into common stock. Since the average share market prices of the Company’s common stock, during the three- and nine- months ended September 30, 2013 and 2012, were below the strike prices of all unexercised outstanding options, there were no potentially dilutive shares outstanding in any of the reportable periods related to stock options. For restricted stock, dilution would occur from the Company’s unvested shares. There were 14,000 and 151 unvested restricted share grants outstanding as of September 30, 2013 and 2012, respectively. | |
In the computation of diluted EPS, the Company uses the treasury stock method to determine the dilutive effect of its granted but unexercised stock options and unvested restricted stock. Under the treasury stock method, the assumed proceeds, as defined, received from shares issued in a hypothetical stock option exercise or restricted stock grant, are assumed to be used to purchase treasury stock. Proceeds include: amounts received from the exercise of outstanding stock options; compensation cost for future service that the Company has not yet recognized in earnings; and any windfall tax benefits that would be credited directly to shareholders’ equity when the grant generates a tax deduction (or a reduction in proceeds if there is a charge to equity). The Company does not consider awards from share-based grants in the computation of basic EPS. | |
Stock_Plans_Policy
Stock Plans (Policy) | 9 Months Ended |
Sep. 30, 2013 | |
Stock Plans [Abstract] | ' |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' |
The Company has two stock-based compensation plans (the stock compensation plans) from which it can grant stock-based compensation awards, and applies the fair value method of accounting for stock-based compensation provided under current accounting guidance. The guidelines require the cost of share-based payment transactions (including those with employees and non-employees) be recognized in the financial statements. The Company’s stock compensation plans were shareholder-approved and permit the grant of share-based compensation awards to its employees and directors. The Company believes that the stock-based compensation plans will advance the development, growth and financial condition of the Company by providing incentives through participation in the appreciation in the value of the common stock of the Company to secure, retain and motivate the Company’s employees and directors who are responsible for the operation and the management of the affairs of the Company, thereby aligning the interest of its employees and directors with the interest of its shareholders. In the stock compensation plans, employees and directors are eligible to be awarded stock-based compensation grants which can consist of stock options (qualified and non-qualified), stock appreciation rights (SARs) and restricted stock. | |
Accumulated_other_comprehensiv1
Accumulated other comprehensive income (loss) (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Accumulated other comprehensive income (loss) [Abstract] | ' | ||||||||
Schedule Of Accumulated Other Comprehensive Income Loss [Table Text Block] | ' | ||||||||
As of and for the nine months ended September 30, 2013 | |||||||||
Non-credit-related | |||||||||
Unrealized gains | impairment losses | ||||||||
on available-for- | on investment | ||||||||
(dollars in thousands) | sale securities | securities | Total | ||||||
Beginning balance | $ | 1,905 | $ | -1,669 | $ | 236 | |||
Other comprehensive (loss) income before reclassifications | -859 | 146 | -713 | ||||||
Amounts reclassified from accumulated other | |||||||||
comprehensive income | -176 | - | -176 | ||||||
Net current-period other comprehensive (loss) income | -1,035 | 146 | -889 | ||||||
Ending balance | $ | 870 | $ | -1,523 | $ | -653 | |||
As of and for the three months ended September 30, 2013 | |||||||||
Non-credit-related | |||||||||
Unrealized gains | impairment losses | ||||||||
on available-for- | on investment | ||||||||
(dollars in thousands) | sale securities | securities | Total | ||||||
Beginning balance | $ | 351 | $ | -1,634 | $ | -1,283 | |||
Other comprehensive income before reclassifications | 610 | 111 | 721 | ||||||
Amounts reclassified from accumulated other | |||||||||
comprehensive income | -91 | - | -91 | ||||||
Net current-period other comprehensive income | 519 | 111 | 630 | ||||||
Ending balance | $ | 870 | $ | -1,523 | $ | -653 | |||
In the tables above, all amounts are net of tax at 34%. Amounts in parentheses indicate debits. | |||||||||
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | ' | ||||||||
Details about accumulated other | Amount reclassified from | ||||||||
comprehensive income components | accumulated other | Affected line item in the statement | |||||||
(dollars in thousands) | comprehensive income | where net income is presented | |||||||
For the nine months ended September 30, 2013 | |||||||||
Unrealized gains on AFS securities | $ | 266 | Gain on sale, recovery, or disposal of investment securities | ||||||
- | Net impairment losses on investment securities | ||||||||
266 | Income before income taxes | ||||||||
-90 | Provision for income taxes | ||||||||
Total reclassifications for the period | $ | 176 | Net income | ||||||
For the three months ended September 30, 2013 | |||||||||
Unrealized gains on AFS securities | $ | 138 | Gain on sale, recovery, or disposal of investment securities | ||||||
- | Net impairment losses on investment securities | ||||||||
138 | Income before income taxes | ||||||||
-47 | Provision for income taxes | ||||||||
Total reclassifications for the period | $ | 91 | Net income | ||||||
Investment_Securities_Tables
Investment Securities (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Investment Securities [Abstract] | ' | ||||||||||||||||||
Unrealized Gain (Loss) on Investments [Table Text Block] | ' | ||||||||||||||||||
The amortized cost and fair value of investment securities at September 30, 2013 and December 31, 2012 are summarized as follows: | |||||||||||||||||||
Gross | Gross | ||||||||||||||||||
Amortized | unrealized | unrealized | Fair | ||||||||||||||||
(dollars in thousands) | cost | gains | losses | value | |||||||||||||||
30-Sep-13 | |||||||||||||||||||
Held-to-maturity securities: | |||||||||||||||||||
MBS - GSE residential | $ | 190 | $ | 17 | $ | - | $ | 207 | |||||||||||
Available-for-sale securities: | |||||||||||||||||||
Agency - GSE | $ | 15,715 | $ | 34 | $ | 40 | $ | 15,709 | |||||||||||
Obligations of states and | |||||||||||||||||||
political subdivisions | 30,531 | 1,086 | 455 | 31,162 | |||||||||||||||
Corporate bonds: | |||||||||||||||||||
Pooled trust preferred securities | 6,115 | 267 | 3,439 | 2,943 | |||||||||||||||
MBS - GSE residential | 51,254 | 1,471 | 137 | 52,588 | |||||||||||||||
Total debt securities | 103,615 | 2,858 | 4,071 | 102,402 | |||||||||||||||
Equity securities - financial services | 295 | 224 | - | 519 | |||||||||||||||
Total available-for-sale securities | $ | 103,910 | $ | 3,082 | $ | 4,071 | $ | 102,921 | |||||||||||
Gross | Gross | ||||||||||||||||||
Amortized | unrealized | unrealized | Fair | ||||||||||||||||
(dollars in thousands) | cost | gains | losses | value | |||||||||||||||
31-Dec-12 | |||||||||||||||||||
Held-to-maturity securities: | |||||||||||||||||||
MBS - GSE residential | $ | 289 | $ | 31 | $ | - | $ | 320 | |||||||||||
Available-for-sale securities: | |||||||||||||||||||
Agency - GSE | $ | 17,651 | $ | 102 | $ | 13 | $ | 17,740 | |||||||||||
Obligations of states and | |||||||||||||||||||
political subdivisions | 26,979 | 2,879 | 1 | 29,857 | |||||||||||||||
Corporate bonds: | |||||||||||||||||||
Pooled trust preferred securities | 6,323 | 185 | 4,683 | 1,825 | |||||||||||||||
MBS - GSE residential | 48,836 | 1,761 | 44 | 50,553 | |||||||||||||||
Total debt securities | 99,789 | 4,927 | 4,741 | 99,975 | |||||||||||||||
Equity securities - financial services | 295 | 171 | - | 466 | |||||||||||||||
Total available-for-sale securities | $ | 100,084 | $ | 5,098 | $ | 4,741 | $ | 100,441 | |||||||||||
Investments Classified by Contractual Maturity Date [Table Text Block] | ' | ||||||||||||||||||
Amortized | Fair | ||||||||||||||||||
(dollars in thousands) | cost | value | |||||||||||||||||
Held-to-maturity securities: | |||||||||||||||||||
MBS - GSE residential | $ | 190 | $ | 207 | |||||||||||||||
Available-for-sale securities: | |||||||||||||||||||
Debt securities: | |||||||||||||||||||
Due in one year or less | $ | 3,007 | $ | 3,020 | |||||||||||||||
Due after one year through five years | 5,127 | 5,111 | |||||||||||||||||
Due after five years through ten years | 9,579 | 9,683 | |||||||||||||||||
Due after ten years | 34,648 | 32,000 | |||||||||||||||||
Total debt securities | 52,361 | 49,814 | |||||||||||||||||
MBS - GSE residential | 51,254 | 52,588 | |||||||||||||||||
Total available-for-sale debt securities | $ | 103,615 | $ | 102,402 | |||||||||||||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Table Text Block] | ' | ||||||||||||||||||
Less than 12 months | More than 12 months | Total | |||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||
(dollars in thousands) | value | losses | value | losses | value | losses | |||||||||||||
30-Sep-13 | |||||||||||||||||||
Agency - GSE | $ | 8,643 | $ | 40 | $ | - | $ | - | $ | 8,643 | $ | 40 | |||||||
Obligations of states and political subdivisions | 7,761 | 455 | - | - | 7,761 | 455 | |||||||||||||
Corporate bonds: | |||||||||||||||||||
Pooled trust preferred securities | - | - | 2,264 | 3,439 | 2,264 | 3,439 | |||||||||||||
MBS - GSE residential | 12,253 | 137 | - | - | 12,253 | 137 | |||||||||||||
Total temporarily impaired securities | $ | 28,657 | $ | 632 | $ | 2,264 | $ | 3,439 | $ | 30,921 | $ | 4,071 | |||||||
Number of securities | 31 | 7 | 38 | ||||||||||||||||
31-Dec-12 | |||||||||||||||||||
Agency - GSE | $ | 1,017 | $ | 13 | $ | - | $ | - | $ | 1,017 | $ | 13 | |||||||
Obligations of states and political subdivisions | 281 | 1 | - | - | 281 | 1 | |||||||||||||
Corporate bonds: | |||||||||||||||||||
Pooled trust preferred securities | - | - | 1,639 | 4,683 | 1,639 | 4,683 | |||||||||||||
MBS - GSE residential | 6,214 | 44 | - | - | 6,214 | 44 | |||||||||||||
Total temporarily impaired securities | $ | 7,512 | $ | 58 | $ | 1,639 | $ | 4,683 | $ | 9,151 | $ | 4,741 | |||||||
Number of securities | 5 | 8 | 13 | ||||||||||||||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Table Text Block] | ' | ||||||||||||||||||
The following table summarizes the amount of OTTI recognized in earnings, by security during the periods indicated: | |||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||
Pooled trust preferred securities: | |||||||||||||||||||
PreTSL IX, B1, B3 | $ | - | $ | - | $ | - | $ | 18 | |||||||||||
PreTSL XVIII, C | - | - | - | 118 | |||||||||||||||
Total | $ | - | $ | - | $ | - | $ | 136 | |||||||||||
Roll-Forward Of Credit-Related OTTI [Table Text Block] | ' | ||||||||||||||||||
The following is a tabular roll-forward of the cumulative amount of credit-related OTTI recognized in earnings: | |||||||||||||||||||
Nine months ended | |||||||||||||||||||
30-Sep-13 | |||||||||||||||||||
(dollars in thousands) | HTM | AFS | Total | ||||||||||||||||
Beginning balance of credit-related OTTI | $ | - | $ | -15,416 | $ | -15,416 | |||||||||||||
Additions for credit-related OTTI | |||||||||||||||||||
not previously recognized | - | - | - | ||||||||||||||||
Additional credit-related OTTI | |||||||||||||||||||
previously recognized when there | |||||||||||||||||||
is no intent to sell before recovery | |||||||||||||||||||
of amortized cost basis | - | - | - | ||||||||||||||||
Ending balance of credit-related OTTI | $ | - | $ | -15,416 | $ | -15,416 | |||||||||||||
Non-Accrual Pooled Trust Preferred Securities [Table Text Block] | ' | ||||||||||||||||||
The following table is the composition of the Company’s non-accrual PreTSL securities as of the period indicated: | |||||||||||||||||||
Pooled Trust Preferred Securities [Table Text Block] | ' | ||||||||||||||||||
The following table provides additional information with respect to the Company’s pooled trust preferred securities as of September 30, 2013: | |||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||
Current | Actual | Excess | Effective | ||||||||||||||||
number | deferrals | subordination (2) | subordination (3) | ||||||||||||||||
of | and defaults | as a % of | as a % of | ||||||||||||||||
Moody's / | banks / | Actual | as a % of | current | current | ||||||||||||||
Book | Fair | Unrealized | Fitch | insurance | deferrals | current | Excess | performing | performing | ||||||||||
Deal | Class | value | value | gain (loss) | ratings (1) | companies | and defaults | collateral | subordination | collateral | collateral | ||||||||
Pre TSL IV | Mezzanine | $ | 412 | $ | 545 | $ | 133 | Caa2 / B | 6 / - | $ | 12,000 | 18 | $ | 16,467 | 28.4 | 38.7 | |||
Pre TSL V | Mezzanine | - | 23 | 23 | C / D | 3 / - | 28,950 | 100 | None | N/A | N/A | ||||||||
Pre TSL VII | Mezzanine | - | 59 | 59 | Ca / C | 14 / - | 85,000 | 54.1 | None | N/A | N/A | ||||||||
Pre TSL IX | B-1,B-3 | 1,450 | 616 | -834 | Caa1 / C | 45 / - | 101,280 | 27.5 | None | N/A | 3.6 | ||||||||
Pre TSL XI | B-3 | 974 | 390 | -584 | Caa3 / C | 60 / - | 180,250 | 32.1 | None | N/A | N/A | ||||||||
Pre TSL XV | B-1 | - | 52 | 52 | C / C | 62 / 7 | 185,200 | 32.9 | None | N/A | N/A | ||||||||
Pre TSL XVI | C | - | - | - | C / C | 48 / 7 | 217,390 | 39 | None | N/A | N/A | ||||||||
Pre TSL XVII | C | - | - | - | C / C | 49 / 6 | 149,890 | 33.3 | None | N/A | N/A | ||||||||
Pre TSL XVIII | C | 167 | - | -167 | Ca / C | 63 / 14 | 186,320 | 29.2 | None | N/A | N/A | ||||||||
Pre TSL XIX | C | 316 | 6 | -310 | C / C | 51 / 14 | 137,650 | 22.6 | None | N/A | 1.7 | ||||||||
Pre TSL XXIV | B-1 | 407 | 20 | -387 | Ca / CC | 77 / 11 | 347,500 | 34.8 | None | N/A | 14.2 | ||||||||
Pre TSL XXV | C-1 | - | - | - | C / C | 61 / 7 | 257,000 | 33.5 | None | N/A | 0.1 | ||||||||
Pre TSL XXVII | B | 2,389 | 1,232 | -1,157 | Caa3 / CCC | 40 / 7 | 81,800 | 26.1 | 10,519 | 4.5 | 29.5 | ||||||||
$ | 6,115 | $ | 2,943 | $ | -3,172 | ||||||||||||||
(1) All ratings have been updated through September 30, 2013. | |||||||||||||||||||
(2) Excess subordination represents the excess (if any) of the amount of performing collateral over the given class of bonds. | |||||||||||||||||||
(3) Effective subordination represents the estimated percentage of the performing collateral that would need to defer or default at the next payment in order to trigger a loss of principal or interest. This differs from excess subordination in that it considers the effect of excess interest earned on the performing collateral. | |||||||||||||||||||
Loans_Tables
Loans (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Loans [Abstract] | ' | |||||||||||||||||||||||
Loan Classifications [Table Text Block] | ' | |||||||||||||||||||||||
The classifications of loans and leases at September 30, 2013 and December 31, 2012 are summarized as follows: | ||||||||||||||||||||||||
Non-Accrual Loans [Table Text Block] | ' | |||||||||||||||||||||||
Non-accrual loans, segregated by class, at September 30, 2013 and December 31, 2012, were as follows: | ||||||||||||||||||||||||
(dollars in thousands) | 30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||
Commercial and industrial | $ | 99 | $ | 18 | ||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||
Non-owner occupied | 1,498 | 1,884 | ||||||||||||||||||||||
Owner occupied | 1,630 | 5,031 | ||||||||||||||||||||||
Construction | 779 | 1,123 | ||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity installment | 299 | 1,306 | ||||||||||||||||||||||
Home equity line of credit | 393 | 381 | ||||||||||||||||||||||
Auto loans and leases | 12 | - | ||||||||||||||||||||||
Other | - | 48 | ||||||||||||||||||||||
Residential: | ||||||||||||||||||||||||
Real estate | 1,438 | 2,330 | ||||||||||||||||||||||
Total | $ | 6,148 | $ | 12,121 | ||||||||||||||||||||
Past Due Loans [Table Text Block] | ' | |||||||||||||||||||||||
Recorded | ||||||||||||||||||||||||
Past due | Total | investment past | ||||||||||||||||||||||
30 - 59 Days | 60 - 89 Days | 90 days | Total | loans | due ≥ 90 days | |||||||||||||||||||
30-Sep-13 | past due | past due | or more * | past due | Current | receivables | and accruing | |||||||||||||||||
Commercial and industrial | $ | 160 | $ | 220 | $ | 106 | $ | 486 | $ | 66,071 | $ | 66,557 | $ | 7 | ||||||||||
Commercial real estate: | ||||||||||||||||||||||||
Non-owner occupied | 908 | - | 1,631 | 2,539 | 86,729 | 89,268 | 133 | |||||||||||||||||
Owner occupied | 238 | 408 | 1,630 | 2,276 | 82,135 | 84,411 | - | |||||||||||||||||
Construction | - | - | 779 | 779 | 9,997 | 10,776 | - | |||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity installment | 143 | 9 | 299 | 451 | 33,215 | 33,666 | - | |||||||||||||||||
Home equity line of credit | - | 4 | 415 | 419 | 34,886 | 35,305 | 22 | |||||||||||||||||
Auto loans and leases | 292 | 38 | 18 | 348 | 20,435 | 20,783 | 6 | |||||||||||||||||
Other | 20 | 33 | - | 53 | 5,534 | 5,587 | - | |||||||||||||||||
Residential: | ||||||||||||||||||||||||
Real estate | 257 | 546 | 1,615 | 2,418 | 106,501 | 108,919 | 177 | |||||||||||||||||
Construction | - | - | - | - | 7,833 | 7,833 | - | |||||||||||||||||
Total | $ | 2,018 | $ | 1,258 | $ | 6,493 | $ | 9,769 | $ | 453,336 | $ | 463,105 | $ | 345 | ||||||||||
* Includes $6.1 million of non-accrual loans. | ||||||||||||||||||||||||
Recorded | ||||||||||||||||||||||||
Past due | Total | investment past | ||||||||||||||||||||||
30 - 59 Days | 60 - 89 Days | 90 days | Total | loans | due ≥ 90 days | |||||||||||||||||||
31-Dec-12 | past due | past due | or more * | past due | Current | receivables | and accruing | |||||||||||||||||
Commercial and industrial | $ | 676 | $ | 15 | $ | 254 | $ | 945 | $ | 64,165 | $ | 65,110 | $ | 236 | ||||||||||
Commercial real estate: | ||||||||||||||||||||||||
Non-owner occupied | - | 141 | 1,884 | 2,025 | 79,973 | 81,998 | - | |||||||||||||||||
Owner occupied | 208 | 282 | 5,439 | 5,929 | 74,580 | 80,509 | 408 | |||||||||||||||||
Construction | - | - | 1,123 | 1,123 | 9,556 | 10,679 | - | |||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity installment | 216 | 132 | 1,325 | 1,673 | 31,155 | 32,828 | 19 | |||||||||||||||||
Home equity line of credit | - | 66 | 381 | 447 | 33,722 | 34,169 | - | |||||||||||||||||
Auto | 459 | 30 | 16 | 505 | 16,906 | 17,411 | 16 | |||||||||||||||||
Other | 48 | 4 | 65 | 117 | 6,022 | 6,139 | 17 | |||||||||||||||||
Residential: | ||||||||||||||||||||||||
Real estate | 99 | 544 | 3,357 | 4,000 | 92,765 | 96,765 | 1,027 | |||||||||||||||||
Construction | - | - | - | - | 7,948 | 7,948 | - | |||||||||||||||||
Total | $ | 1,706 | $ | 1,214 | $ | 13,844 | $ | 16,764 | $ | 416,792 | $ | 433,556 | $ | 1,723 | ||||||||||
* Includes $12.1 million of non-accrual loans. | ||||||||||||||||||||||||
Impaired Loans [Table Text Block] | ' | |||||||||||||||||||||||
Impaired loans, segregated by class, as of the period indicated are detailed below: | ||||||||||||||||||||||||
Recorded | Recorded | Cash basis | ||||||||||||||||||||||
Unpaid | investment | investment | Total | Average | Interest | interest | ||||||||||||||||||
principal | with | with no | recorded | Related | recorded | income | income | |||||||||||||||||
(dollars in thousands) | balance | allowance | allowance | investment | allowance | investment | recognized | recognized | ||||||||||||||||
30-Sep-13 | ||||||||||||||||||||||||
Commercial & industrial | $ | 136 | $ | 102 | $ | 34 | $ | 136 | $ | 40 | $ | 81 | $ | 2 | $ | - | ||||||||
Commercial real estate: | ||||||||||||||||||||||||
Non-owner occupied | 1,962 | 410 | 1,572 | 1,982 | 37 | 2,319 | 25 | 59 | ||||||||||||||||
Owner occupied | 2,328 | 802 | 1,366 | 2,168 | 155 | 3,969 | 30 | - | ||||||||||||||||
Construction | 1,073 | 210 | 569 | 779 | 62 | 1,002 | - | - | ||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity installment | 370 | 99 | 200 | 299 | 14 | 825 | 37 | - | ||||||||||||||||
Home equity line of credit | 528 | 103 | 290 | 393 | 14 | 381 | - | - | ||||||||||||||||
Auto loans and leases | 12 | 12 | - | 12 | 1 | 3 | - | - | ||||||||||||||||
Other | - | - | - | - | - | 43 | - | - | ||||||||||||||||
Residential: | ||||||||||||||||||||||||
Real Estate | 1,593 | 582 | 856 | 1,438 | 73 | 1,903 | 54 | - | ||||||||||||||||
Construction | - | - | - | - | - | - | - | - | ||||||||||||||||
Total | $ | 8,002 | $ | 2,320 | $ | 4,887 | $ | 7,207 | $ | 396 | $ | 10,526 | $ | 148 | $ | 59 | ||||||||
Recorded | Recorded | Cash basis | ||||||||||||||||||||||
Unpaid | investment | investment | Total | Average | Interest | interest | ||||||||||||||||||
principal | with | with no | recorded | Related | recorded | income | income | |||||||||||||||||
(dollars in thousands) | balance | allowance | allowance | investment | allowance | investment | recognized | recognized | ||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||
Commercial & industrial | $ | 52 | $ | 8 | $ | 52 | $ | 60 | $ | 4 | $ | 275 | $ | 4 | $ | - | ||||||||
Commercial real estate: | ||||||||||||||||||||||||
Non-owner occupied | 2,431 | 957 | 1,420 | 2,377 | 233 | 4,172 | 152 | 20 | ||||||||||||||||
Owner occupied | 5,940 | 4,500 | 1,099 | 5,599 | 1,230 | 7,292 | 121 | - | ||||||||||||||||
Construction | 1,123 | 210 | 913 | 1,123 | 194 | 941 | - | - | ||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity installment | 1,480 | 524 | 782 | 1,306 | 38 | 1,023 | - | - | ||||||||||||||||
Home equity line of credit | 435 | 144 | 237 | 381 | 31 | 482 | - | - | ||||||||||||||||
Auto | - | - | - | - | - | 1 | - | - | ||||||||||||||||
Other | 102 | 16 | 32 | 48 | 8 | 36 | - | - | ||||||||||||||||
Residential: | ||||||||||||||||||||||||
Real Estate | 2,688 | 564 | 1,766 | 2,330 | 76 | 2,342 | 17 | - | ||||||||||||||||
Construction | - | - | - | - | - | 44 | - | - | ||||||||||||||||
Total | $ | 14,251 | $ | 6,923 | $ | 6,301 | $ | 13,224 | $ | 1,814 | $ | 16,608 | $ | 294 | $ | 20 | ||||||||
Credit Quality Indicator Loan Categories [Table Text Block] | ' | |||||||||||||||||||||||
Commercial credit exposure | ||||||||||||||||||||||||
Credit risk profile by creditworthiness category | ||||||||||||||||||||||||
Commercial real estate - | Commercial real estate - | Commercial real estate - | ||||||||||||||||||||||
Commercial and industrial | non-owner occupied | owner occupied | construction | |||||||||||||||||||||
(dollars in thousands) | 9/30/13 | 12/31/12 | 9/30/13 | 12/31/12 | 9/30/13 | 12/31/12 | 9/30/13 | 12/31/12 | ||||||||||||||||
Pass | $ | 63,568 | $ | 61,821 | $ | 80,246 | $ | 72,738 | $ | 80,900 | $ | 73,922 | $ | 8,361 | $ | 8,094 | ||||||||
Special mention | 2,322 | 2,221 | 4,071 | 3,520 | 200 | 222 | 1,575 | 1,422 | ||||||||||||||||
Substandard | 667 | 1,068 | 4,951 | 5,740 | 3,311 | 6,365 | 840 | 1,163 | ||||||||||||||||
Doubtful | - | - | - | - | - | - | - | - | ||||||||||||||||
Total | $ | 66,557 | $ | 65,110 | $ | 89,268 | $ | 81,998 | $ | 84,411 | $ | 80,509 | $ | 10,776 | $ | 10,679 | ||||||||
Consumer credit exposure | ||||||||||||||||||||||||
Credit risk profile based on payment activity | ||||||||||||||||||||||||
Home equity installment | Home equity line of credit | Auto loans and leases | Other | |||||||||||||||||||||
(dollars in thousands) | 9/30/13 | 12/31/12 | 9/30/13 | 12/31/12 | 9/30/13 | 12/31/12 | 9/30/13 | 12/31/12 | ||||||||||||||||
Performing | $ | 33,367 | $ | 31,503 | $ | 34,890 | $ | 33,788 | $ | 20,765 | $ | 17,395 | $ | 5,587 | $ | 6,074 | ||||||||
Non-performing | 299 | 1,325 | 415 | 381 | 18 | 16 | - | 65 | ||||||||||||||||
Total | $ | 33,666 | $ | 32,828 | $ | 35,305 | $ | 34,169 | $ | 20,783 | $ | 17,411 | $ | 5,587 | $ | 6,139 | ||||||||
Mortgage lending credit exposure | ||||||||||||||||||||||||
Credit risk profile based on payment activity | ||||||||||||||||||||||||
Allowance For Loan Losses [Table Text Block] | ' | |||||||||||||||||||||||
Information related to the change in the allowance for loan losses and the Company’s recorded investment in loans by portfolio segment as of the period indicated is as follows: | ||||||||||||||||||||||||
As of and for the nine months ended September 30, 2013 | ||||||||||||||||||||||||
Commercial & | Commercial | Residential | ||||||||||||||||||||||
(dollars in thousands) | industrial | real estate | Consumer | real estate | Unallocated | Total | ||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||
Beginning balance | $ | 922 | $ | 4,908 | $ | 1,639 | $ | 1,503 | $ | - | $ | 8,972 | ||||||||||||
Charge-offs | 56 | 1,815 | 274 | 158 | - | 2,303 | ||||||||||||||||||
Recoveries | 8 | 28 | 99 | 1 | - | 136 | ||||||||||||||||||
Provision | 32 | 702 | 189 | 335 | 342 | 1,600 | ||||||||||||||||||
Ending balance | $ | 906 | $ | 3,823 | $ | 1,653 | $ | 1,681 | $ | 342 | $ | 8,405 | ||||||||||||
Ending balance: individually | ||||||||||||||||||||||||
evaluated for impairment | $ | 40 | $ | 254 | $ | 29 | $ | 73 | $ | 396 | ||||||||||||||
Ending balance: collectively | ||||||||||||||||||||||||
evaluated for impairment | $ | 866 | $ | 3,569 | $ | 1,624 | $ | 1,608 | $ | 7,667 | ||||||||||||||
Loans Receivables: | ||||||||||||||||||||||||
Ending balance | $ | 66,557 | $ | 184,455 | $ | 95,341 | $ | 116,752 | $ | 463,105 | ||||||||||||||
Ending balance: individually | ||||||||||||||||||||||||
evaluated for impairment | $ | 136 | $ | 4,929 | $ | 704 | $ | 1,438 | $ | 7,207 | ||||||||||||||
Ending balance: collectively | ||||||||||||||||||||||||
evaluated for impairment | $ | 66,421 | $ | 179,526 | $ | 94,637 | $ | 115,314 | $ | 455,898 | ||||||||||||||
As of and for the three months ended September 30, 2013 | ||||||||||||||||||||||||
Commercial & | Commercial | Residential | ||||||||||||||||||||||
(dollars in thousands) | industrial | real estate | Consumer | real estate | Unallocated | Total | ||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||
Beginning balance | $ | 919 | $ | 3,521 | $ | 1,647 | $ | 1,718 | $ | 491 | $ | 8,296 | ||||||||||||
Charge-offs | 8 | 188 | 94 | 94 | - | 384 | ||||||||||||||||||
Recoveries | 2 | 16 | 24 | 1 | - | 43 | ||||||||||||||||||
Provision | -7 | 474 | 76 | 56 | -149 | 450 | ||||||||||||||||||
Ending balance | $ | 906 | $ | 3,823 | $ | 1,653 | $ | 1,681 | $ | 342 | $ | 8,405 | ||||||||||||
As of and for the year ended December 31, 2012 | ||||||||||||||||||||||||
Commercial & | Commercial | Residential | ||||||||||||||||||||||
(dollars in thousands) | industrial | real estate | Consumer | real estate | Unallocated | Total | ||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||
Beginning balance | $ | 1,221 | $ | 3,979 | $ | 1,435 | $ | 1,051 | $ | 422 | $ | 8,108 | ||||||||||||
Charge-offs | 185 | 1,335 | 737 | 231 | - | 2,488 | ||||||||||||||||||
Recoveries | 26 | 46 | 30 | - | - | 102 | ||||||||||||||||||
Provision | -140 | 2,218 | 911 | 683 | -422 | 3,250 | ||||||||||||||||||
Ending balance | $ | 922 | $ | 4,908 | $ | 1,639 | $ | 1,503 | $ | - | $ | 8,972 | ||||||||||||
Ending balance: individually | ||||||||||||||||||||||||
evaluated for impairment | $ | 4 | $ | 1,657 | $ | 77 | $ | 76 | $ | 1,814 | ||||||||||||||
Ending balance: collectively | ||||||||||||||||||||||||
evaluated for impairment | $ | 918 | $ | 3,251 | $ | 1,562 | $ | 1,427 | $ | 7,158 | ||||||||||||||
Loans Receivables: | ||||||||||||||||||||||||
Ending balance | $ | 65,110 | $ | 173,186 | $ | 90,547 | $ | 104,713 | $ | 433,556 | ||||||||||||||
Ending balance: individually | ||||||||||||||||||||||||
evaluated for impairment | $ | 60 | $ | 9,099 | $ | 1,735 | $ | 2,330 | $ | 13,224 | ||||||||||||||
Ending balance: collectively | ||||||||||||||||||||||||
evaluated for impairment | $ | 65,050 | $ | 164,087 | $ | 88,812 | $ | 102,383 | $ | 420,332 | ||||||||||||||
Information related to the change in the allowance for loan losses as of and for the three- and nine- months ended September 30, 2012 is a follows: | ||||||||||||||||||||||||
As of and for the nine months ended September 30, 2012 | ||||||||||||||||||||||||
Commercial & | Commercial | Residential | ||||||||||||||||||||||
(dollars in thousands) | industrial | real estate | Consumer | real estate | Unallocated | Total | ||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||
Beginning balance | $ | 1,221 | $ | 3,979 | $ | 1,435 | $ | 1,051 | $ | 422 | $ | 8,108 | ||||||||||||
Charge-offs | 135 | 1,258 | 491 | 121 | - | 2,005 | ||||||||||||||||||
Recoveries | 23 | - | 16 | - | - | 39 | ||||||||||||||||||
Provision | 55 | 1,083 | 457 | 579 | -174 | 2,000 | ||||||||||||||||||
Ending balance | $ | 1,164 | $ | 3,804 | $ | 1,417 | $ | 1,509 | $ | 248 | $ | 8,142 | ||||||||||||
As of and for the three months ended September 30, 2012 | ||||||||||||||||||||||||
Commercial & | Commercial | Residential | ||||||||||||||||||||||
(dollars in thousands) | industrial | real estate | Consumer | real estate | Unallocated | Total | ||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||
Beginning balance | $ | 1,195 | $ | 4,143 | $ | 1,425 | $ | 1,333 | $ | 55 | $ | 8,151 | ||||||||||||
Charge-offs | 70 | 518 | 57 | 76 | - | 721 | ||||||||||||||||||
Recoveries | 11 | - | 1 | - | - | 12 | ||||||||||||||||||
Provision | 28 | 179 | 48 | 252 | 193 | 700 | ||||||||||||||||||
Ending balance | $ | 1,164 | $ | 3,804 | $ | 1,417 | $ | 1,509 | $ | 248 | $ | 8,142 | ||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | |||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
(dollars in thousands except per share data) | ||||||||||||
Basic EPS: | ||||||||||||
Net income available to common shareholders | $ | 1,505 | $ | 1,399 | $ | 4,412 | $ | 3,973 | ||||
Weighted-average common shares outstanding | 2,359,947 | 2,294,416 | 2,345,453 | 2,277,801 | ||||||||
Basic EPS | $ | 0.64 | $ | 0.61 | $ | 1.88 | $ | 1.74 | ||||
Diluted EPS: | ||||||||||||
Net income available to common shareholders | $ | 1,505 | $ | 1,399 | $ | 4,412 | $ | 3,973 | ||||
Weighted-average common shares outstanding | 2,359,947 | 2,294,416 | 2,345,453 | 2,277,801 | ||||||||
Potentially dilutive common shares | 4,632 | 151 | 4,407 | 151 | ||||||||
Weighted-average common and potentially | ||||||||||||
dilutive shares outstanding | 2,364,579 | 2,294,567 | 2,349,860 | 2,277,952 | ||||||||
Diluted EPS | $ | 0.64 | $ | 0.61 | $ | 1.88 | $ | 1.74 | ||||
Stock_Plans_Tables
Stock Plans (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Stock Plans [Abstract] | ' | |||||||||||||
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | ' | |||||||||||||
2013 | 2012 | |||||||||||||
Weighted- | Weighted- | |||||||||||||
Shares | average grant | Vesting | Shares | average grant | Vesting | |||||||||
granted | date fair value | period | granted | date fair value | period | |||||||||
Director plan | 8,000 | $ | 21.20 | 2 yrs - 50% per year | - | $ | - | |||||||
Omnibus plan | 6,000 | 21.20 | 4 yrs - 25% per year | 151 | 21.50 | 1 year | ||||||||
Total | 14,000 | $ | 21.20 | 151 | $ | 21.50 | ||||||||
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block] | ' | |||||||||||||
Three months ended | Nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Stock-based compensation expense: | ||||||||||||||
Director plan | $ | 22 | $ | - | $ | 57 | $ | - | ||||||
Omnibus plan | 7 | 2 | 21 | 2 | ||||||||||
Total stock-based compensation expense | $ | 29 | $ | 2 | $ | 78 | $ | 2 | ||||||
As of | ||||||||||||||
(dollars in thousands) | 30-Sep-13 | |||||||||||||
Unrecognized stock-based compensation expense: | ||||||||||||||
Director plan | $ | 113 | ||||||||||||
Omnibus plan | 106 | |||||||||||||
Total unrecognized stock-based compensation expense | $ | 219 | ||||||||||||
The unrecognized stock-based compensation expense as of September 30, 2013 will be recognized ratably over the periods ended January 2015 and January 2017 for the Director Plan and the Omnibus Plan, respectively. | ||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||||
Carrying Amount and Estimated Fair Value by Balance Sheet Grouping [Table Text Block] | ' | ||||||||||||||
The following table represents the carrying amount and estimated fair value of the Company’s financial instruments as of the periods indicated: | |||||||||||||||
30-Sep-13 | |||||||||||||||
Quoted prices | Significant | Significant | |||||||||||||
in active | other | other | |||||||||||||
Carrying | Estimated | markets | observable inputs | unobservable inputs | |||||||||||
(dollars in thousands) | amount | fair value | (Level 1) | (Level 2) | (Level 3) | ||||||||||
Financial assets: | |||||||||||||||
Cash and cash equivalents | $ | 35,885 | $ | 35,885 | $ | 35,885 | $ | - | $ | - | |||||
Held-to-maturity securities | 190 | 207 | - | 207 | - | ||||||||||
Available-for-sale securities | 102,921 | 102,921 | 519 | 99,459 | 2,943 | ||||||||||
FHLB Stock | 2,160 | 2,160 | - | 2,160 | - | ||||||||||
Loans and leases, net | 454,700 | 455,351 | - | - | 455,351 | ||||||||||
Loans held-for-sale | 903 | 920 | - | 920 | - | ||||||||||
Financial liabilities: | |||||||||||||||
Deposit liabilities | 544,830 | 545,242 | - | 545,242 | - | ||||||||||
Short-term borrowings | 14,197 | 14,197 | - | 14,197 | - | ||||||||||
Long-term debt | 16,000 | 18,092 | - | 18,092 | - | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | ' | ||||||||||||||
The following tables illustrate the financial instruments measured at fair value on a recurring basis segregated by hierarchy fair value levels as of the period indicated: | |||||||||||||||
Quoted prices | |||||||||||||||
in active | Significant other | Significant other | |||||||||||||
Total carrying value | markets | observable inputs | unobservable inputs | ||||||||||||
(dollars in thousands) | 30-Sep-13 | (Level 1) | (Level 2) | (Level 3) | |||||||||||
Available-for-sale securities: | |||||||||||||||
Agency - GSE | $ | 15,709 | $ | - | $ | 15,709 | $ | - | |||||||
Obligations of states and political | |||||||||||||||
subdivisions | 31,162 | - | 31,162 | - | |||||||||||
Corporate bonds: | |||||||||||||||
Pooled trust preferred securities | 2,943 | - | - | 2,943 | |||||||||||
MBS - GSE residential | 52,588 | - | 52,588 | - | |||||||||||
Equity securities - financial services | 519 | 519 | - | - | |||||||||||
Total available-for-sale securities | $ | 102,921 | $ | 519 | $ | 99,459 | $ | 2,943 | |||||||
Quoted prices | |||||||||||||||
in active | Significant other | Significant other | |||||||||||||
Total carrying value | markets | observable inputs | unobservable inputs | ||||||||||||
(dollars in thousands) | 31-Dec-12 | (Level 1) | (Level 2) | (Level 3) | |||||||||||
Available-for-sale securities: | |||||||||||||||
Agency - GSE | $ | 17,740 | $ | - | $ | 17,740 | $ | - | |||||||
Obligations of states and political | |||||||||||||||
subdivisions | 29,857 | - | 29,857 | - | |||||||||||
Corporate bonds: | |||||||||||||||
Pooled trust preferred securities | 1,825 | - | - | 1,825 | |||||||||||
MBS - GSE residential | 50,553 | - | 50,553 | - | |||||||||||
Equity securities - financial services | 466 | 466 | - | - | |||||||||||
Total available-for-sale securities | $ | 100,441 | $ | 466 | $ | 98,150 | $ | 1,825 | |||||||
Assets Measured at Fair Value On a Recurring Basis Using Level 3 Inputs [Table Text Block] | ' | ||||||||||||||
Quantitative information about Level 3 fair value measurements as of the periods indicated: | |||||||||||||||
30-Sep-13 | 31-Dec-12 | 30-Sep-13 | 31-Dec-12 | ||||||||||||
Valuation | Fair | Fair | Unobservable | Input | Input | ||||||||||
(dollars in thousands) | technique | value | value | input | utilized | utilized | |||||||||
Available-for-sale securities: | |||||||||||||||
Pooled trust preferred securities | |||||||||||||||
discounted | $ | 2,943 | $ | 1,825 | - | structural behavior | issuer specific | issuer specific | |||||||
cash flow | - | estimated probability of default | 2.19% - 2.76% | 4.11% - 4.17% | |||||||||||
- | correlation analysis among issuers | 50% - 30% | 50% - 30% | ||||||||||||
- | loss given default rate | 100% | 100% | ||||||||||||
- | prepayment rate | 0% | 0% | ||||||||||||
- | recovery rate | 0% | 0% | ||||||||||||
- | credit adjusted cash flow discount rate | 0% - 75.0% | 0% - 36.3% | ||||||||||||
Changes in Level 3 Financial Instruments [Table Text Block] | ' | ||||||||||||||
As of and for the nine months ended September 30, | |||||||||||||||
(dollars in thousands) | 2013 | 2012 | |||||||||||||
Balance at beginning of period | $ | 1,825 | $ | 1,466 | |||||||||||
Realized losses in earnings | - | -136 | |||||||||||||
Unrealized gains (losses) in OCI: | |||||||||||||||
Gains | 1,519 | 518 | |||||||||||||
Losses | -193 | -113 | |||||||||||||
Pay down / settlement | -216 | -96 | |||||||||||||
Interest paid-in-kind | 6 | 21 | |||||||||||||
Accretion | 2 | 3 | |||||||||||||
Balance at end of period | $ | 2,943 | $ | 1,663 | |||||||||||
Fair Value Measurements at Fair Value Segregated by Hierarchy Fair Value Levels [Table Text Block] | ' | ||||||||||||||
The following table illustrates the financial instruments measured at fair value on a non-recurring basis segregated by hierarchy fair value levels as of the periods indicated: | |||||||||||||||
Quoted prices in | Significant other | Significant other | |||||||||||||
Total carrying value | active markets | observable inputs | unobservable inputs | ||||||||||||
(dollars in thousands) | at September 30, 2013 | (Level 1) | (Level 2) | (Level 3) | |||||||||||
Impaired loans | $ | 1,924 | $ | - | $ | - | $ | 1,924 | |||||||
Other real estate owned | 1,987 | - | - | 1,987 | |||||||||||
Total | $ | 3,911 | $ | - | $ | - | $ | 3,911 | |||||||
Quoted prices in | Significant other | Significant other | |||||||||||||
Total carrying value | active markets | observable inputs | unobservable inputs | ||||||||||||
(dollars in thousands) | at December 31, 2012 | (Level 1) | (Level 2) | (Level 3) | |||||||||||
Impaired loans | $ | 5,109 | $ | - | $ | - | $ | 5,109 | |||||||
Other real estate owned | 1,448 | - | - | 1,448 | |||||||||||
Other repossessed assets | 6 | - | - | 6 | |||||||||||
Total | $ | 6,563 | $ | - | $ | - | $ | 6,563 | |||||||
Nature_Of_Operations_And_Criti2
Nature Of Operations And Critical Accounting Policies (Narrative) (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Nature Of Operations And Critical Accounting Policies [Abstract] | ' | ' |
Year Founded | '1903 | ' |
Interest Paid | $2.20 | $2.60 |
Income Taxes Paid, Net | 1.1 | 1.8 |
Real Estate Owned, Transfer to Real Estate Owned | 2.2 | 1.4 |
Transfer of Portfolio Loans and Leases to Held-for-sale | $2.90 | $2.80 |
Accumulated_other_comprehensiv2
Accumulated other comprehensive income (loss) (Schedule of Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Beginning balance | ($1,283) | ' | $236 | ' |
Other comprehensive (loss) income before reclassifications | 721 | ' | -713 | ' |
Amounts reclassified from accumulated other comprehensive income | -91 | ' | -176 | ' |
Other comprehensive income (loss) | 630 | 828 | -889 | 1,600 |
Ending balance | -653 | ' | -653 | ' |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | ' | ' | 34.00% | ' |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Beginning balance | 351 | ' | 1,905 | ' |
Other comprehensive (loss) income before reclassifications | 610 | ' | -859 | ' |
Amounts reclassified from accumulated other comprehensive income | -91 | ' | -176 | ' |
Other comprehensive income (loss) | 519 | ' | -1,035 | ' |
Ending balance | 870 | ' | 870 | ' |
Accumulated Other-than-Temporary Impairment [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Beginning balance | -1,634 | ' | -1,669 | ' |
Other comprehensive (loss) income before reclassifications | 111 | ' | 146 | ' |
Other comprehensive income (loss) | 111 | ' | 146 | ' |
Ending balance | ($1,523) | ' | ($1,523) | ' |
Accumulated_other_comprehensiv3
Accumulated other comprehensive income (loss) (Schedule of Reclassifications from Accumulated other Comprehensive Income) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Gain (Loss) on Sale of Securities, Net | $138 | $3 | $266 | $264 |
Net impairment | ' | ' | ' | 136 |
Income before income taxes | 2,020 | 1,885 | 5,915 | 5,284 |
(Provision) credit for income taxes | -515 | -486 | -1,503 | -1,311 |
Net Income (Loss) Attributable to Parent | 1,505 | 1,399 | 4,412 | 3,973 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Gain (Loss) on Sale of Securities, Net | 138 | ' | 266 | ' |
Income before income taxes | 138 | ' | 266 | ' |
(Provision) credit for income taxes | -47 | ' | -90 | ' |
Net Income (Loss) Attributable to Parent | $91 | ' | $176 | ' |
Investment_Securities_Narrativ
Investment Securities (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Schedule of Investments [Line Items] | ' | ' | ' | ' |
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities, Portion Recognized in Earnings, Net, Qualitative Disclosures, Methodology | ' | ' | 'To determine credit-related OTTI, the Company analyzes the collateral of each individual tranche within each of the individual pools in the Company's portfolio of PreTSLs that has a remaining book value. The Company engaged a third party structured finance firm to: review the underlying collateral of each PreTSL; research trustee reports to update relevant data and credit ratings of the underlying collateral; project default rates and cash flows of the collateral and simulate 10,000 Monte Carlo time-to-default scenarios to arrive at the single best estimate of future cash flow for each tranche. This analysis is performed quarterly.The sub-topics of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 320 provide the scope, steps and accounting guidance for impairment: 1) determine whether an investment is impaired; 2) evaluate whether impairment is other-than-temporary; then 3) recognition of OTTI. The guidance in ASC 320 retains and emphasizes the objective of OTTI assessment and the related disclosure requirements by aligning the OTTI methodology for certain securitizations. ASC 325 provides a scope exception for investments that were considered of high credit quality (i.e. rated "AA" or higher) at the time of acquisition. The application of the guidance contained in ASC 320 is used for two investments considered of high credit quality and ASC 325 is used for the remaining securities. In summary, the quarterly evaluations indicated there was no significant adverse change in cash flows in the securities. As a result, there was no credit related OTTI recorded during the three- and nine- months ended September 30, 2013. The guidance prescribed in ASC 320 is used for investments that, upon purchase, were rated of high credit quality, "AA" or higher, by a nationally recognized statistical rating organization. The Company has two PreTSLs (XXIV and XXVII) that were of high credit quality, "AA" rated, upon acquisition. PreTSL XXVII evaluation proved a high probability that the Company will be able to collect all amounts due, both principal and interest, by maturity and thus, determined the impairment is temporary. PreTSL XXIV was evaluated under ASC 320 to determine if the Company expects to recover the remaining amortized cost basis and whether OTTI is deemed to have occurred. An adverse change or short-fall in the expected cash flows compared to the amortized cost would be recorded as credit-related OTTI. To assess the likelihood of recoverability, the present value of the best estimate of future cash flows is compared to the amortized cost. In this situation, the discount rate used was the interest rate implicit in the security at the date of acquisition. The application of the guidance on this security did not result in an adverse change in cash flows when compared to the previous measurement date and therefore, no credit related OTTI has been recorded during 2013. The remaining six PreTSLs were rated "A" by a nationally recognized statistical rating organization at the date of acquisition and as such are considered beneficial interests of securitized financial assets. For these securities, the Company applies the guidance of ASC 325. Under this and other relevant guidance, if the fair value is below amortized cost and the present value of the best estimate of future cash flows declines significantly, evidencing a probable material adverse change in cash flows since the previous measurement date, credit-related OTTI is deemed to exist and written down to the determined present value through a charge to current earnings. The discount rate used under ASC 325 is the yield to accrete beneficial interest, which is representative of the resulting interest from the total gross estimated future cash flows less the current amortized cost. In applying this guidance to the remaining securities, none of the securities measured an adverse change in cash flows and therefore no credit related OTTI has been recorded during 2013. | ' |
Credit-related OTTI recognized in earnings | ' | ' | ' | $136 |
Gain (Loss) on Sale of Securities, Net | 138 | 3 | 266 | 264 |
Agency - GSE [Member] | ' | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' | ' |
Available-for-sale securities, Qualitative Disclosure, Nature | ' | ' | 'Agency - GSE and MBS - GSE residential Agency b GSE and MBS b GSE residential securities consist of short- and medium-term notes issued by Federal Home Loan Mortgage Corporation (FHLMC), Federal National Mortgage Association (FNMA), Federal Home Loan Bank (FHLB), Federal Farm Credit Bank (FFCB) and Government National Mortgage Association (GNMA). These securities have interest rates that are fixed and adjustable, have varying short- to mid-term maturity dates and have contractual cash flows guaranteed by the U.S. government or agencies of the U.S. government. | ' |
Obligations of states and political subdivisions [Member] | ' | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' | ' |
Available-for-sale securities, Qualitative Disclosure, Nature | ' | ' | 'Obligations of states and political subdivisions The municipal securities are bank qualified or bank eligible, general obligation and revenue bonds rated as investment grade by various credit rating agencies and have fixed rates of interest with mid- to long-term maturities. Fair values of these securities are highly driven by interest rates. Management performs ongoing credit quality reviews on these issues.In the above security types, management believes the change in fair value is attributable to changes in interest rates and those instruments with unrealized losses were not caused by deterioration of credit quality. Accordingly, as of September 30, 2013, recognition of OTTI on these securities was unnecessary. Interest rates along the intermediate and long end of the treasury yield curve have increased from year-end 2012 and while the intermediate term rates have ebbed slightly from the prior quarter, until rates stabilize, values of banks' investment securities will be somewhat volatile. | ' |
Pooled trust preferred securities [Member] | ' | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' | ' |
Available-for-sale securities, Qualitative Disclosure, Nature | ' | ' | 'Pooled trust preferred securitiesA Pooled Trust Preferred Collateralized Debt Obligation (CDO) is a type of investment security collateralized by trust preferred securities (TPS) issued by banks, insurance companies and real estate investment trusts. The primary collateral type is a TPS issued by a bank. A TPSB is a hybrid security that consists of both debt and equity characteristics which includes the ability of the issuer to voluntarily defer interest payments for up to 20 consecutive quarters. A TPSB is considered a junior security in the capital structure of the issuer.There are variousB investment classes or tranches issued by theB CDO. The most senior tranche has the lowestB yield but the mostB protection fromB credit losses. Conversely, the most junior tranche has the highest yield but the most exposure to risk of credit losses. Junior tranches are subordinate to senior tranches and losses are generally allocatedB from the lowest tranche with the equity component holding the most risk of credit loss and then subordinate tranches in reverse order up to the most senior tranche. The allocation of losses is defined in the indenture when the CDO was formed.Unrealized losses in the pooled trust preferred securities (PreTSLs) are caused mainly by: (1)B collateral deterioration due to bank failures and credit concerns across the banking sector; (2)B widening of credit spreads and (3)B illiquidity in the market. The Company's review of its portfolio of pooled trust preferred securities determined that in 2012 credit-related OTTI be recorded on two holdings, both of which are contained in the Company's AFS securities portfolio. The losses were caused by credit quality downgrades on the underlying collateral, including the collateral of four banks deferring interest payments within these two securities and one bank fully redeeming which removes all future earnings cash flow. There was no credit related OTTI required to be recognized during the three- or nine-months ended September 30, 2013. | ' |
Gain (Loss) on Sale of Securities, Net | ' | ' | 100 | 13 |
Pre TSL IX, B1, B3 [Member] | ' | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' | ' |
Credit-related OTTI recognized in earnings | ' | ' | ' | 18 |
Pre TSL XVIII, C [Member] | ' | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' | ' |
Credit-related OTTI recognized in earnings | ' | ' | ' | $118 |
Investment_Securities_Unrealiz
Investment Securities (Unrealized Gain/Loss On Investments Table) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Schedule of Investments [Line Items] | ' | ' |
Held-to-maturity securities, Amortized cost | $190 | $289 |
Held-To-Maturity Securities Fair Value | 207 | 320 |
Total available-for-sale securities, Amortized cost | 103,910 | 100,084 |
Available-for-sale securities, Gross unrealized gains | 3,082 | 5,098 |
Available-for-sale securities, Gross unrealized losses | 4,071 | 4,741 |
Total available-for-sale securities, Fair value | 102,921 | 100,441 |
Agency - GSE [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Total available-for-sale securities, Amortized cost | 15,715 | 17,651 |
Available-for-sale securities, Gross unrealized gains | 34 | 102 |
Available-for-sale securities, Gross unrealized losses | 40 | 13 |
Total available-for-sale securities, Fair value | 15,709 | 17,740 |
Obligations of states and political subdivisions [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Total available-for-sale securities, Amortized cost | 30,531 | 26,979 |
Available-for-sale securities, Gross unrealized gains | 1,086 | 2,879 |
Available-for-sale securities, Gross unrealized losses | 455 | 1 |
Total available-for-sale securities, Fair value | 31,162 | 29,857 |
Pooled trust preferred securities [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Total available-for-sale securities, Amortized cost | 6,115 | 6,323 |
Available-for-sale securities, Gross unrealized gains | 267 | 185 |
Available-for-sale securities, Gross unrealized losses | 3,439 | 4,683 |
Total available-for-sale securities, Fair value | 2,943 | 1,825 |
MBS - GSE residential [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Held-to-maturity securities, Amortized cost | 190 | 289 |
Held-to-maturity securities, Gross unrealized gains | 17 | 31 |
Held-To-Maturity Securities Fair Value | 207 | 320 |
Total available-for-sale securities, Amortized cost | 51,254 | 48,836 |
Available-for-sale securities, Gross unrealized gains | 1,471 | 1,761 |
Available-for-sale securities, Gross unrealized losses | 137 | 44 |
Total available-for-sale securities, Fair value | 52,588 | 50,553 |
Total debt securities [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Total available-for-sale securities, Amortized cost | 103,615 | 99,789 |
Available-for-sale securities, Gross unrealized gains | 2,858 | 4,927 |
Available-for-sale securities, Gross unrealized losses | 4,071 | 4,741 |
Total available-for-sale securities, Fair value | 102,402 | 99,975 |
Equity securities - financial services [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Total available-for-sale securities, Amortized cost | 295 | 295 |
Available-for-sale securities, Gross unrealized gains | 224 | 171 |
Total available-for-sale securities, Fair value | $519 | $466 |
Investment_Securities_Investme
Investment Securities (Investment Classified By Contractual Maturity Date Table) (Details) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Schedule of Investments [Line Items] | ' |
Amortized cost: Due in one year or less | $3,007 |
Amortized cost: Due after one year through five years | 5,127 |
Amortized cost: Due after five years through ten years | 9,579 |
Amortized cost: Due after ten years | 34,648 |
Total debt securities, Amortized Cost | 52,361 |
MBS - GSE residental, Amortized cost | 51,254 |
Total available-for-sale debt securities, Amortized Cost | 103,615 |
Fair value: Due in one year or less | 3,020 |
Fair value: Due after one year through five years | 5,111 |
Fair value: Due after five years through ten years | 9,683 |
Fair value: Due after ten years | 32,000 |
Total debt securities, Fair value | 49,814 |
MBS - GSE residental, Fair value | 52,588 |
Total debt securities, Fair value | 102,402 |
MBS - GSE residential [Member] | ' |
Schedule of Investments [Line Items] | ' |
MBS - GSE residental, Amortized cost | 190 |
MBS - GSE residental, Fair value | $207 |
Investment_Securities_Availabl
Investment Securities (Available-For-Sale Securities, Continuous Unrealized Loss Position, Fair Value Table) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
security | security | |
Schedule of Investments [Line Items] | ' | ' |
Less than 12 months: Fair value | $28,657 | $7,512 |
Less than 12 months: Unrealized losses | 632 | 58 |
More than 12 months: Fair value | 2,264 | 1,639 |
More than 12 months: Unrealized losses | 3,439 | 4,683 |
Total: Fair value | 30,921 | 9,151 |
Total: Unrealized losses | 4,071 | 4,741 |
Less than 12 months: Number of securities | 31 | 5 |
More than 12 months: Number of securities | 7 | 8 |
Total: Number of securities | 38 | 13 |
Agency - GSE [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Less than 12 months: Fair value | 8,643 | 1,017 |
Less than 12 months: Unrealized losses | 40 | 13 |
Total: Fair value | 8,643 | 1,017 |
Total: Unrealized losses | 40 | 13 |
Obligations of states and political subdivisions [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Less than 12 months: Fair value | 7,761 | 281 |
Less than 12 months: Unrealized losses | 455 | 1 |
Total: Fair value | 7,761 | 281 |
Total: Unrealized losses | 455 | 1 |
Pooled trust preferred securities [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
More than 12 months: Fair value | 2,264 | 1,639 |
More than 12 months: Unrealized losses | 3,439 | 4,683 |
Total: Fair value | 2,264 | 1,639 |
Total: Unrealized losses | 3,439 | 4,683 |
MBS - GSE residential [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Less than 12 months: Fair value | 12,253 | 6,214 |
Less than 12 months: Unrealized losses | 137 | 44 |
Total: Fair value | 12,253 | 6,214 |
Total: Unrealized losses | $137 | $44 |
Investment_Securities_Other_Th
Investment Securities (Other Than Temporary Impairment, Credit Losses Recognized In Earnings Table) (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2012 |
Schedule of Investments [Line Items] | ' |
Credit-related OTTI recognized in earnings | $136 |
Pre TSL IX, B1, B3 [Member] | ' |
Schedule of Investments [Line Items] | ' |
Credit-related OTTI recognized in earnings | 18 |
Pre TSL XVIII, C [Member] | ' |
Schedule of Investments [Line Items] | ' |
Credit-related OTTI recognized in earnings | $118 |
Investment_Securities_RollForw
Investment Securities (Roll-Forward Of Credit-Related OTTI Table) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Investments [Line Items] | ' | ' |
Beginning balance of credit-related OTTI | ($15,416) | ($15,416) |
Ending balance of credit-related OTTI | -15,416 | -15,416 |
Available-for-sale Securities [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Beginning balance of credit-related OTTI | -15,416 | -15,416 |
Ending balance of credit-related OTTI | ($15,416) | ($15,416) |
Investment_Securities_NonAccru
Investment Securities (Non-Accrual Pooled Trust Preferred Securities Tables) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Pre TSL V - Mezzanine Class [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Non-accrual pooled trust preferred securities, Fair value | $23 | $27 |
Pre TSL VII - Mezzanine Class [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Non-accrual pooled trust preferred securities, Fair value | 59 | 125 |
Pre TSL IX, B1, B3 [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Non-accrual pooled trust preferred securities, Book value | 1,450 | 1,507 |
Non-accrual pooled trust preferred securities, Fair value | 616 | 630 |
Pre TSL XI - B-3 Class [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Non-accrual pooled trust preferred securities, Book value | 974 | 1,053 |
Non-accrual pooled trust preferred securities, Fair value | 390 | 305 |
Pre TSL XV - B-1 Class [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Non-accrual pooled trust preferred securities, Fair value | 52 | 33 |
Pre TSL XVIII, C [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Non-accrual pooled trust preferred securities, Book value | 167 | 167 |
Pre TSL XIX - C Class [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Non-accrual pooled trust preferred securities, Book value | 316 | 316 |
Non-accrual pooled trust preferred securities, Fair value | 6 | ' |
Pre TSL XXIV, B1 [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Non-accrual pooled trust preferred securities, Book value | 407 | 407 |
Non-accrual pooled trust preferred securities, Fair value | 20 | 12 |
Pooled trust preferred securities [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Non-accrual pooled trust preferred securities, Book value | 3,314 | 3,450 |
Non-accrual pooled trust preferred securities, Fair value | $1,166 | $1,132 |
Investment_Securities_Pooled_T
Investment Securities (Pooled Trust Preferred Securities Table) (Details) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | |
Schedule of Investments [Line Items] | ' | ' | |
Book value | $103,910 | $100,084 | |
Total available-for-sale securities, Fair value | 102,921 | 100,441 | |
Pre TSL IV, Mezzanine [Member] | ' | ' | |
Schedule of Investments [Line Items] | ' | ' | |
Book value | 412 | ' | |
Total available-for-sale securities, Fair value | 545 | ' | |
Unrealized gain (loss) | 133 | ' | |
Moody's / Fitch ratings | 'Caa2 / B | [1] | ' |
Current number of banks / insurance companies | '6 / - | ' | |
Actual deferrals and defaults | 12,000 | ' | |
Actual deferrals and defaults as a % of current collateral | 18.00% | ' | |
Excess subordination | 16,467 | ' | |
Excess Subordination as a % of Current Performing Collateral | 28.40% | [2] | ' |
Effective Subordination as a % of Current Performing Collateral | 38.70% | [3] | ' |
Pre TSL V - Mezzanine Class [Member] | ' | ' | |
Schedule of Investments [Line Items] | ' | ' | |
Total available-for-sale securities, Fair value | 23 | ' | |
Unrealized gain (loss) | 23 | ' | |
Moody's / Fitch ratings | 'C / D | [1] | ' |
Current number of banks / insurance companies | '3 / - | ' | |
Actual deferrals and defaults | 28,950 | ' | |
Actual deferrals and defaults as a % of current collateral | 100.00% | ' | |
Pre TSL VII - Mezzanine Class [Member] | ' | ' | |
Schedule of Investments [Line Items] | ' | ' | |
Total available-for-sale securities, Fair value | 59 | ' | |
Unrealized gain (loss) | 59 | ' | |
Moody's / Fitch ratings | 'Ca / C | [1] | ' |
Current number of banks / insurance companies | '14 / - | ' | |
Actual deferrals and defaults | 85,000 | ' | |
Actual deferrals and defaults as a % of current collateral | 54.10% | ' | |
Pre TSL IX, B1, B3 [Member] | ' | ' | |
Schedule of Investments [Line Items] | ' | ' | |
Book value | 1,450 | ' | |
Total available-for-sale securities, Fair value | 616 | ' | |
Unrealized gain (loss) | -834 | ' | |
Moody's / Fitch ratings | 'Caa1 / C | [1] | ' |
Current number of banks / insurance companies | '45 / - | ' | |
Actual deferrals and defaults | 101,280 | ' | |
Actual deferrals and defaults as a % of current collateral | 27.50% | ' | |
Effective Subordination as a % of Current Performing Collateral | 3.60% | [3] | ' |
Pre TSL XI - B-3 Class [Member] | ' | ' | |
Schedule of Investments [Line Items] | ' | ' | |
Book value | 974 | ' | |
Total available-for-sale securities, Fair value | 390 | ' | |
Unrealized gain (loss) | -584 | ' | |
Moody's / Fitch ratings | 'Caa3 / C | [1] | ' |
Current number of banks / insurance companies | '60 / - | ' | |
Actual deferrals and defaults | 180,250 | ' | |
Actual deferrals and defaults as a % of current collateral | 32.10% | ' | |
Pre TSL XV - B-1 Class [Member] | ' | ' | |
Schedule of Investments [Line Items] | ' | ' | |
Total available-for-sale securities, Fair value | 52 | ' | |
Unrealized gain (loss) | 52 | ' | |
Moody's / Fitch ratings | 'C / C | [1] | ' |
Current number of banks / insurance companies | '62 / 7 | ' | |
Actual deferrals and defaults | 185,200 | ' | |
Actual deferrals and defaults as a % of current collateral | 32.90% | ' | |
Pre TSL XVI - C Class [Member] | ' | ' | |
Schedule of Investments [Line Items] | ' | ' | |
Moody's / Fitch ratings | 'C / C | [1] | ' |
Current number of banks / insurance companies | '48 / 7 | ' | |
Actual deferrals and defaults | 217,390 | ' | |
Actual deferrals and defaults as a % of current collateral | 39.00% | ' | |
Pre TSL XVII - C Class [Member] | ' | ' | |
Schedule of Investments [Line Items] | ' | ' | |
Moody's / Fitch ratings | 'C / C | [1] | ' |
Current number of banks / insurance companies | '49 / 6 | ' | |
Actual deferrals and defaults | 149,890 | ' | |
Actual deferrals and defaults as a % of current collateral | 33.30% | ' | |
Pre TSL XVIII, C [Member] | ' | ' | |
Schedule of Investments [Line Items] | ' | ' | |
Book value | 167 | ' | |
Unrealized gain (loss) | -167 | ' | |
Moody's / Fitch ratings | 'Ca / C | [1] | ' |
Current number of banks / insurance companies | '63 / 14 | ' | |
Actual deferrals and defaults | 186,320 | ' | |
Actual deferrals and defaults as a % of current collateral | 29.20% | ' | |
Pre TSL XIX - C Class [Member] | ' | ' | |
Schedule of Investments [Line Items] | ' | ' | |
Book value | 316 | ' | |
Total available-for-sale securities, Fair value | 6 | ' | |
Unrealized gain (loss) | -310 | ' | |
Moody's / Fitch ratings | 'C / C | [1] | ' |
Current number of banks / insurance companies | '51 / 14 | ' | |
Actual deferrals and defaults | 137,650 | ' | |
Actual deferrals and defaults as a % of current collateral | 22.60% | ' | |
Effective Subordination as a % of Current Performing Collateral | 1.70% | [3] | ' |
Pre TSL XXIV, B1 [Member] | ' | ' | |
Schedule of Investments [Line Items] | ' | ' | |
Book value | 407 | ' | |
Total available-for-sale securities, Fair value | 20 | ' | |
Unrealized gain (loss) | -387 | ' | |
Moody's / Fitch ratings | 'Ca / CC | [1] | ' |
Current number of banks / insurance companies | '77 / 11 | ' | |
Actual deferrals and defaults | 347,500 | ' | |
Actual deferrals and defaults as a % of current collateral | 34.80% | ' | |
Effective Subordination as a % of Current Performing Collateral | 14.20% | [3] | ' |
Pre TSL XXV - C-1 Class [Member] | ' | ' | |
Schedule of Investments [Line Items] | ' | ' | |
Moody's / Fitch ratings | 'C / C | [1] | ' |
Current number of banks / insurance companies | '61 / 7 | ' | |
Actual deferrals and defaults | 257,000 | ' | |
Actual deferrals and defaults as a % of current collateral | 33.50% | ' | |
Effective Subordination as a % of Current Performing Collateral | 0.10% | [3] | ' |
Pre TSL XXVII - B Class [Member] | ' | ' | |
Schedule of Investments [Line Items] | ' | ' | |
Book value | 2,389 | ' | |
Total available-for-sale securities, Fair value | 1,232 | ' | |
Unrealized gain (loss) | -1,157 | ' | |
Moody's / Fitch ratings | 'Caa3 / CCC | [1] | ' |
Current number of banks / insurance companies | '40 / 7 | ' | |
Actual deferrals and defaults | 81,800 | ' | |
Actual deferrals and defaults as a % of current collateral | 26.10% | ' | |
Excess subordination | 10,519 | ' | |
Excess Subordination as a % of Current Performing Collateral | 4.50% | [2] | ' |
Effective Subordination as a % of Current Performing Collateral | 29.50% | [3] | ' |
Pooled trust preferred securities [Member] | ' | ' | |
Schedule of Investments [Line Items] | ' | ' | |
Book value | 6,115 | 6,323 | |
Total available-for-sale securities, Fair value | 2,943 | 1,825 | |
Unrealized gain (loss) | ($3,172) | ' | |
[1] | All ratings have been updated through September 30, 2013. | ||
[2] | Excess subordination represents the excess (if any) of the amount of performing collateral over the given class of bonds. | ||
[3] | Effective subordination represents the estimated percentage of the performing collateral that would need to defer or default at the next payment in order to trigger a loss of principal or interest. This differs from excess subordination in that it considers the effect of excess interest earned on the performing collateral. |
Loans_Narrative_Details
Loans (Narrative) (Details) (USD $) | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums | $1,100,000 | ' | $1,000,000 |
Mortgages Serviced | 245,200,000 | ' | 214,700,000 |
Non-Accrual Balance | 6,148,000 | ' | 12,121,000 |
Payments for (Proceeds from) Loans and Leases | 36,430,000 | 28,898,000 | ' |
Troubled Debt Status [Member] | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Troubled Debt Restructuring Balance | 2,000,000 | ' | 2,200,000 |
Nonaccrual Status [Member] | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Troubled Debt Restructuring Balance | $1,000,000 | ' | $1,100,000 |
Loans_Loan_Classifications_Det
Loans (Loan Classifications) (Details) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' |
Total | $463,160 | ' | $433,556 | ' | ' | ' |
Allowance for loan losses | -8,405 | -8,296 | -8,972 | -8,142 | -8,151 | -8,108 |
Unearned lease revenue | -55 | ' | ' | ' | ' | ' |
Loans, net | 454,700 | ' | 424,584 | ' | ' | ' |
Commercial & industrial [Member] | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' |
Total | 66,557 | ' | 65,110 | ' | ' | ' |
Allowance for loan losses | -906 | -919 | -922 | -1,164 | -1,195 | -1,221 |
Commercial real estate: Non-owner occupied [Member] | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' |
Total | 89,268 | ' | 81,998 | ' | ' | ' |
Commercial real estate: Owner occupied [Member] | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' |
Total | 84,411 | ' | 80,509 | ' | ' | ' |
Commercial real estate: Construction [Member] | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' |
Total | 10,776 | ' | 10,679 | ' | ' | ' |
Consumer: Home equity installment [Member] | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' |
Total | 33,666 | ' | 32,828 | ' | ' | ' |
Consumer: Home equity line of credit [Member] | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' |
Total | 35,305 | ' | 34,169 | ' | ' | ' |
Consumer: Auto [Member] | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' |
Total | 20,838 | ' | 17,411 | ' | ' | ' |
Consumer: Other [Member] | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' |
Total | 5,587 | ' | 6,139 | ' | ' | ' |
Residential: Real estate [Member] | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' |
Total | 108,919 | ' | 96,765 | ' | ' | ' |
Residential: Construction [Member] | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' |
Total | $7,833 | ' | $7,948 | ' | ' | ' |
Loans_NonAccrual_Loans_Details
Loans (Non-Accrual Loans) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Non-accrual loans | $6,148 | $12,121 |
Commercial & industrial [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Non-accrual loans | 99 | 18 |
Commercial real estate: Non-owner occupied [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Non-accrual loans | 1,498 | 1,884 |
Commercial real estate: Owner occupied [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Non-accrual loans | 1,630 | 5,031 |
Commercial real estate: Construction [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Non-accrual loans | 779 | 1,123 |
Consumer: Home equity installment [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Non-accrual loans | 299 | 1,306 |
Consumer: Home equity line of credit [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Non-accrual loans | 393 | 381 |
Consumer: Auto [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Non-accrual loans | 12 | ' |
Consumer: Other [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Non-accrual loans | ' | 48 |
Residential: Real estate [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Non-accrual loans | $1,438 | $2,330 |
Loans_Past_Due_Loans_Details
Loans (Past Due Loans) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
30 - 59 Days past due | $2,018 | $1,706 | ||
60 - 89 Days past due | 1,258 | 1,214 | ||
Past due 90 days or more | 6,493 | [1] | 13,844 | [2] |
Total past due | 9,769 | 16,764 | ||
Current | 453,336 | 416,792 | ||
Total loans receivables | 463,105 | 433,556 | ||
Recorded investment past due > days and accruing | 345 | 1,723 | ||
Commercial & industrial [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
30 - 59 Days past due | 160 | 676 | ||
60 - 89 Days past due | 220 | 15 | ||
Past due 90 days or more | 106 | [1] | 254 | [2] |
Total past due | 486 | 945 | ||
Current | 66,071 | 64,165 | ||
Total loans receivables | 66,557 | 65,110 | ||
Recorded investment past due > days and accruing | 7 | 236 | ||
Commercial real estate: Non-owner occupied [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
30 - 59 Days past due | 908 | ' | ||
60 - 89 Days past due | ' | 141 | ||
Past due 90 days or more | 1,631 | [1] | 1,884 | [2] |
Total past due | 2,539 | 2,025 | ||
Current | 86,729 | 79,973 | ||
Total loans receivables | 89,268 | 81,998 | ||
Recorded investment past due > days and accruing | 133 | ' | ||
Commercial real estate: Owner occupied [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
30 - 59 Days past due | 238 | 208 | ||
60 - 89 Days past due | 408 | 282 | ||
Past due 90 days or more | 1,630 | [1] | 5,439 | [2] |
Total past due | 2,276 | 5,929 | ||
Current | 82,135 | 74,580 | ||
Total loans receivables | 84,411 | 80,509 | ||
Recorded investment past due > days and accruing | ' | 408 | ||
Commercial real estate: Construction [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Past due 90 days or more | 779 | [1] | 1,123 | [2] |
Total past due | 779 | 1,123 | ||
Current | 9,997 | 9,556 | ||
Total loans receivables | 10,776 | 10,679 | ||
Consumer: Home equity installment [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
30 - 59 Days past due | 143 | 216 | ||
60 - 89 Days past due | 9 | 132 | ||
Past due 90 days or more | 299 | [1] | 1,325 | [2] |
Total past due | 451 | 1,673 | ||
Current | 33,215 | 31,155 | ||
Total loans receivables | 33,666 | 32,828 | ||
Recorded investment past due > days and accruing | ' | 19 | ||
Consumer: Home equity line of credit [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
60 - 89 Days past due | 4 | 66 | ||
Past due 90 days or more | 415 | [1] | 381 | [2] |
Total past due | 419 | 447 | ||
Current | 34,886 | 33,722 | ||
Total loans receivables | 35,305 | 34,169 | ||
Recorded investment past due > days and accruing | 22 | ' | ||
Consumer: Auto [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
30 - 59 Days past due | 292 | 459 | ||
60 - 89 Days past due | 38 | 30 | ||
Past due 90 days or more | 18 | [1] | 16 | [2] |
Total past due | 348 | 505 | ||
Current | 20,435 | 16,906 | ||
Total loans receivables | 20,783 | 17,411 | ||
Recorded investment past due > days and accruing | 6 | 16 | ||
Consumer: Other [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
30 - 59 Days past due | 20 | 48 | ||
60 - 89 Days past due | 33 | 4 | ||
Past due 90 days or more | ' | 65 | [2] | |
Total past due | 53 | 117 | ||
Current | 5,534 | 6,022 | ||
Total loans receivables | 5,587 | 6,139 | ||
Recorded investment past due > days and accruing | ' | 17 | ||
Residential: Real estate [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
30 - 59 Days past due | 257 | 99 | ||
60 - 89 Days past due | 546 | 544 | ||
Past due 90 days or more | 1,615 | [1] | 3,357 | [2] |
Total past due | 2,418 | 4,000 | ||
Current | 106,501 | 92,765 | ||
Total loans receivables | 108,919 | 96,765 | ||
Recorded investment past due > days and accruing | 177 | 1,027 | ||
Residential: Construction [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Current | 7,833 | 7,948 | ||
Total loans receivables | $7,833 | $7,948 | ||
[1] | Includes $6.1 million of non-accrual loans. | |||
[2] | Includes $12.1 million of non-accrual loans. |
Loans_Impaired_Loans_Details
Loans (Impaired Loans) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid principal balance | $8,002 | $14,251 |
Recorded investment with allowance | 2,320 | 6,923 |
Recorded investment with no allowance | 4,887 | 6,301 |
Total recorded investment | 7,207 | 13,224 |
Related allowance | 396 | 1,814 |
Average recorded investment | 10,526 | 16,608 |
Interest income recognized | 148 | 294 |
Cash basis interest income recognized | 59 | 20 |
Commercial & industrial [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid principal balance | 136 | 52 |
Recorded investment with allowance | 102 | 8 |
Recorded investment with no allowance | 34 | 52 |
Total recorded investment | 136 | 60 |
Related allowance | 40 | 4 |
Average recorded investment | 81 | 275 |
Interest income recognized | 2 | 4 |
Commercial real estate: Non-owner occupied [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid principal balance | 1,962 | 2,431 |
Recorded investment with allowance | 410 | 957 |
Recorded investment with no allowance | 1,572 | 1,420 |
Total recorded investment | 1,982 | 2,377 |
Related allowance | 37 | 233 |
Average recorded investment | 2,319 | 4,172 |
Interest income recognized | 25 | 152 |
Cash basis interest income recognized | 59 | 20 |
Commercial real estate: Owner occupied [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid principal balance | 2,328 | 5,940 |
Recorded investment with allowance | 802 | 4,500 |
Recorded investment with no allowance | 1,366 | 1,099 |
Total recorded investment | 2,168 | 5,599 |
Related allowance | 155 | 1,230 |
Average recorded investment | 3,969 | 7,292 |
Interest income recognized | 30 | 121 |
Commercial real estate: Construction [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid principal balance | 1,073 | 1,123 |
Recorded investment with allowance | 210 | 210 |
Recorded investment with no allowance | 569 | 913 |
Total recorded investment | 779 | 1,123 |
Related allowance | 62 | 194 |
Average recorded investment | 1,002 | 941 |
Consumer: Home equity installment [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid principal balance | 370 | 1,480 |
Recorded investment with allowance | 99 | 524 |
Recorded investment with no allowance | 200 | 782 |
Total recorded investment | 299 | 1,306 |
Related allowance | 14 | 38 |
Average recorded investment | 825 | 1,023 |
Interest income recognized | 37 | ' |
Consumer: Home equity line of credit [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid principal balance | 528 | 435 |
Recorded investment with allowance | 103 | 144 |
Recorded investment with no allowance | 290 | 237 |
Total recorded investment | 393 | 381 |
Related allowance | 14 | 31 |
Average recorded investment | 381 | 482 |
Consumer: Auto [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid principal balance | 12 | ' |
Recorded investment with allowance | 12 | ' |
Total recorded investment | 12 | ' |
Related allowance | 1 | ' |
Average recorded investment | 3 | 1 |
Consumer: Other [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid principal balance | ' | 102 |
Recorded investment with allowance | ' | 16 |
Recorded investment with no allowance | ' | 32 |
Total recorded investment | ' | 48 |
Related allowance | ' | 8 |
Average recorded investment | 43 | 36 |
Residential: Real estate [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid principal balance | 1,593 | 2,688 |
Recorded investment with allowance | 582 | 564 |
Recorded investment with no allowance | 856 | 1,766 |
Total recorded investment | 1,438 | 2,330 |
Related allowance | 73 | 76 |
Average recorded investment | 1,903 | 2,342 |
Interest income recognized | 54 | 17 |
Residential: Construction [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Average recorded investment | ' | $44 |
Loans_Credit_Quality_Indicator
Loans (Credit Quality Indicator Loan Categories) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Commercial & industrial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivable, Net | $66,557 | $65,110 |
Commercial real estate: Non-owner occupied [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivable, Net | 89,268 | 81,998 |
Commercial real estate: Owner occupied [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivable, Net | 84,411 | 80,509 |
Commercial real estate: Construction [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivable, Net | 10,776 | 10,679 |
Consumer: Home equity installment [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivable, Net | 33,666 | 32,828 |
Consumer: Home equity line of credit [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivable, Net | 35,305 | 34,169 |
Consumer: Auto [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivable, Net | 20,783 | 17,411 |
Consumer: Other [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivable, Net | 5,587 | 6,139 |
Residential: Real estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivable, Net | 108,919 | 96,765 |
Residential: Construction [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivable, Net | 7,833 | 7,948 |
Pass [Member] | Commercial & industrial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivable, Net | 63,568 | 61,821 |
Pass [Member] | Commercial real estate: Non-owner occupied [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivable, Net | 80,246 | 72,738 |
Pass [Member] | Commercial real estate: Owner occupied [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivable, Net | 80,900 | 73,922 |
Pass [Member] | Commercial real estate: Construction [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivable, Net | 8,361 | 8,094 |
Special mention [Member] | Commercial & industrial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivable, Net | 2,322 | 2,221 |
Special mention [Member] | Commercial real estate: Non-owner occupied [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivable, Net | 4,071 | 3,520 |
Special mention [Member] | Commercial real estate: Owner occupied [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivable, Net | 200 | 222 |
Special mention [Member] | Commercial real estate: Construction [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivable, Net | 1,575 | 1,422 |
Substandard [Member] | Commercial & industrial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivable, Net | 667 | 1,068 |
Substandard [Member] | Commercial real estate: Non-owner occupied [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivable, Net | 4,951 | 5,740 |
Substandard [Member] | Commercial real estate: Owner occupied [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivable, Net | 3,311 | 6,365 |
Substandard [Member] | Commercial real estate: Construction [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivable, Net | 840 | 1,163 |
Performing [Member] | Consumer: Home equity installment [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivable, Net | 33,367 | 31,503 |
Performing [Member] | Consumer: Home equity line of credit [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivable, Net | 34,890 | 33,788 |
Performing [Member] | Consumer: Auto [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivable, Net | 20,765 | 17,395 |
Performing [Member] | Consumer: Other [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivable, Net | 5,587 | 6,074 |
Performing [Member] | Residential: Real estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivable, Net | 107,304 | 93,408 |
Performing [Member] | Residential: Construction [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivable, Net | 7,833 | 7,948 |
Non-performing [Member] | Consumer: Home equity installment [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivable, Net | 299 | 1,325 |
Non-performing [Member] | Consumer: Home equity line of credit [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivable, Net | 415 | 381 |
Non-performing [Member] | Consumer: Auto [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivable, Net | 18 | 16 |
Non-performing [Member] | Consumer: Other [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivable, Net | ' | 65 |
Non-performing [Member] | Residential: Real estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivable, Net | $1,615 | $3,357 |
Loans_Allowance_For_Loan_Losse
Loans (Allowance For Loan Losses) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' |
Allowance for Loan Losses: Beginning balance | $8,296 | $8,151 | $8,972 | $8,108 | $8,108 |
Charge-offs | 384 | 721 | 2,303 | 2,005 | 2,488 |
Recoveries | 43 | 12 | 136 | 39 | 102 |
Provisions | 450 | 700 | 1,600 | 2,000 | 3,250 |
Allowance for Loan Losses: Ending balance | 8,405 | 8,142 | 8,405 | 8,142 | 8,972 |
Allowance for Loan Losses: Ending balance: individually evaluated for impairment | 396 | ' | 396 | ' | 1,814 |
Allowance for Loan Losses: Ending balance: collectively evaluated for impairment | 7,667 | ' | 7,667 | ' | 7,158 |
Loan Receivables: Ending balance | 463,105 | ' | 463,105 | ' | 433,556 |
Loans Receivable: Ending balance: individually evaluated for impairment | 7,207 | ' | 7,207 | ' | 13,224 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 455,898 | ' | 455,898 | ' | 420,332 |
Commercial & industrial [Member] | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' |
Allowance for Loan Losses: Beginning balance | 919 | 1,195 | 922 | 1,221 | 1,221 |
Charge-offs | 8 | 70 | 56 | 135 | 185 |
Recoveries | 2 | 11 | 8 | 23 | 26 |
Provisions | -7 | 28 | 32 | 55 | -140 |
Allowance for Loan Losses: Ending balance | 906 | 1,164 | 906 | 1,164 | 922 |
Allowance for Loan Losses: Ending balance: individually evaluated for impairment | 40 | ' | 40 | ' | 4 |
Allowance for Loan Losses: Ending balance: collectively evaluated for impairment | 866 | ' | 866 | ' | 918 |
Loan Receivables: Ending balance | 66,557 | ' | 66,557 | ' | 65,110 |
Loans Receivable: Ending balance: individually evaluated for impairment | 136 | ' | 136 | ' | 60 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 66,421 | ' | 66,421 | ' | 65,050 |
Commercial real estate [Member] | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' |
Allowance for Loan Losses: Beginning balance | 3,521 | 4,143 | 4,908 | 3,979 | 3,979 |
Charge-offs | 188 | 518 | 1,815 | 1,258 | 1,335 |
Recoveries | 16 | ' | 28 | ' | 46 |
Provisions | 474 | 179 | 702 | 1,083 | 2,218 |
Allowance for Loan Losses: Ending balance | 3,823 | 3,804 | 3,823 | 3,804 | 4,908 |
Allowance for Loan Losses: Ending balance: individually evaluated for impairment | 254 | ' | 254 | ' | 1,657 |
Allowance for Loan Losses: Ending balance: collectively evaluated for impairment | 3,569 | ' | 3,569 | ' | 3,251 |
Loan Receivables: Ending balance | 184,455 | ' | 184,455 | ' | 173,186 |
Loans Receivable: Ending balance: individually evaluated for impairment | 4,929 | ' | 4,929 | ' | 9,099 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 179,526 | ' | 179,526 | ' | 164,087 |
Consumer [Member] | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' |
Allowance for Loan Losses: Beginning balance | 1,647 | 1,425 | 1,639 | 1,435 | 1,435 |
Charge-offs | 94 | 57 | 274 | 491 | 737 |
Recoveries | 24 | 1 | 99 | 16 | 30 |
Provisions | 76 | 48 | 189 | 457 | 911 |
Allowance for Loan Losses: Ending balance | 1,653 | 1,417 | 1,653 | 1,417 | 1,639 |
Allowance for Loan Losses: Ending balance: individually evaluated for impairment | 29 | ' | 29 | ' | 77 |
Allowance for Loan Losses: Ending balance: collectively evaluated for impairment | 1,624 | ' | 1,624 | ' | 1,562 |
Loan Receivables: Ending balance | 95,341 | ' | 95,341 | ' | 90,547 |
Loans Receivable: Ending balance: individually evaluated for impairment | 704 | ' | 704 | ' | 1,735 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 94,637 | ' | 94,637 | ' | 88,812 |
Residential real estate [Member] | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' |
Allowance for Loan Losses: Beginning balance | 1,718 | 1,333 | 1,503 | 1,051 | 1,051 |
Charge-offs | 94 | 76 | 158 | 121 | 231 |
Recoveries | 1 | ' | 1 | ' | ' |
Provisions | 56 | 252 | 335 | 579 | 683 |
Allowance for Loan Losses: Ending balance | 1,681 | 1,509 | 1,681 | 1,509 | 1,503 |
Allowance for Loan Losses: Ending balance: individually evaluated for impairment | 73 | ' | 73 | ' | 76 |
Allowance for Loan Losses: Ending balance: collectively evaluated for impairment | 1,608 | ' | 1,608 | ' | 1,427 |
Loan Receivables: Ending balance | 116,752 | ' | 116,752 | ' | 104,713 |
Loans Receivable: Ending balance: individually evaluated for impairment | 1,438 | ' | 1,438 | ' | 2,330 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 115,314 | ' | 115,314 | ' | 102,383 |
Unallocated [Member] | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' |
Allowance for Loan Losses: Beginning balance | 491 | 55 | ' | 422 | 422 |
Provisions | -149 | 193 | 342 | -174 | -422 |
Allowance for Loan Losses: Ending balance | $342 | $248 | $342 | $248 | ' |
Earnings_Per_Share_Narrative_D
Earnings Per Share (Narrative) (Details) (Restricted Stock [Member]) | Sep. 30, 2013 | Sep. 30, 2012 |
Restricted Stock [Member] | ' | ' |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ' | ' |
Shares, Outstanding | 14,000 | 151 |
Earnings_Per_Share_Schedule_of
Earnings Per Share (Schedule of Earnings Per Share, Basic and Diluted) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net income (loss) available to common shareholders | $1,505 | $1,399 | $4,412 | $3,973 |
Weighted-average common shares outstanding | 2,359,947 | 2,294,416 | 2,345,453 | 2,277,801 |
Basic EPS | $0.64 | $0.61 | $1.88 | $1.74 |
Potentially dilutive common shares | 4,632 | 151 | 4,407 | 151 |
Weighted-average common and potentially dilutive shares outstanding | 2,364,579 | 2,294,567 | 2,349,860 | 2,277,952 |
Diluted EPS | $0.64 | $0.61 | $1.88 | $1.74 |
Stock_Plans_Narrative_Details
Stock Plans (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Director Stock Incentive Plan - 2012 [Member] | Director Stock Incentive Plan - 2012 [Member] | Director Stock Incentive Plan - 2012 [Member] | The 2012 Omnibus Stock Incentive Plan [Member] | The 2012 Omnibus Stock Incentive Plan [Member] | The 2012 Omnibus Stock Incentive Plan [Member] | The 2012 Omnibus Stock Incentive Plan [Member] | The 2012 Omnibus Stock Incentive Plan [Member] | The 2012 Omnibus Stock Incentive Plan [Member] | The 2012 Omnibus Stock Incentive Plan [Member] | Employee Stock Purchase Plan [Member] | Employee Stock Purchase Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number Of Shares Authorized | ' | ' | ' | ' | ' | 500,000 | ' | 500,000 | 500,000 | ' | ' | ' | ' | 500,000 | ' | 110,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | ' | ' | ' | ' | ' | ' | 8,000 | ' | ' | ' | 6,000 | ' | 151 | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | 134 | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17 | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | '4 years | '1 year | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value, Amount Per Share | $27 | ' | $27 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Shares, Issued | 2,371,171 | ' | 2,371,171 | ' | 2,323,248 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 29,956 | ' |
Allocated Share-based Compensation Expense | $29 | $2 | $78 | $2 | ' | $22 | ' | $57 | $7 | ' | ' | $2 | ' | $21 | $2 | $10 | $12 |
Stock_Plans_Disclosure_of_Shar
Stock Plans (Disclosure of Share-based Compensation Arrangements by Share-based Payment Award) (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Shares granted | 14,000 | 151 |
Weighted-average grant date fair value | $21.20 | $21.50 |
Director Stock Incentive Plan - 2012 [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Shares granted | 8,000 | ' |
Weighted-average grant date fair value | $21.20 | ' |
Vesting period | '2 yrs - 50% per year | ' |
The 2012 Omnibus Stock Incentive Plan [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Shares granted | 6,000 | 151 |
Weighted-average grant date fair value | $21.20 | $21.50 |
Vesting period | '4 yrs - 25% per year | '1 year |
Stock_Plans_Schedule_of_Compen
Stock Plans (Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | $29 | $2 | $78 | $2 |
Director Stock Incentive Plan - 2012 [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 22 | ' | 57 | ' |
The 2012 Omnibus Stock Incentive Plan [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | $7 | $2 | $21 | $2 |
Stock_Plans_Schedule_of_Unreco
Stock Plans (Schedule of Unrecognized Compensation Cost, Nonvested Awards) (Details) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $219 |
Director Stock Incentive Plan - 2012 [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 113 |
The 2012 Omnibus Stock Incentive Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $106 |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
security | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | $0 | ' |
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | 0 | ' |
Owned Pooled Trust Preferred Securities | 13 | ' |
Available-for-sale Securities, Original Par Value | 22,300,000 | ' |
Available-for-sale Securities, Amortized Cost Basis | 103,910,000 | 100,084,000 |
Available-for-sale Securities | 102,921,000 | 100,441,000 |
Fair Value Inputs, Loss Severity | 100.00% | 100.00% |
Pooled trust preferred securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | 6,115,000 | 6,323,000 |
Available-for-sale Securities | $2,943,000 | $1,825,000 |
Maximum [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair Value Inputs, Discount Rate | 75.00% | 36.30% |
Maximum [Member] | Impaired loans [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair Value Inputs, Comparability Adjustments | -95.37% | ' |
Maximum [Member] | Other real estate owned [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair Value Inputs, Comparability Adjustments | -60.90% | ' |
Minimum [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair Value Inputs, Discount Rate | 0.00% | 0.00% |
Minimum [Member] | Impaired loans [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair Value Inputs, Comparability Adjustments | -16.00% | ' |
Minimum [Member] | Other real estate owned [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair Value Inputs, Comparability Adjustments | -1.72% | ' |
Weighted Average [Member] | Impaired loans [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair Value Inputs, Comparability Adjustments | -39.48% | ' |
Weighted Average [Member] | Other real estate owned [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair Value Inputs, Comparability Adjustments | -26.76% | ' |
Fair_Value_Measurements_Carryi
Fair Value Measurements (Carrying Amount and Estimated Fair Value by Balance Sheet Grouping) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | $35,885 | $21,846 | $45,622 | $52,165 |
Held-to-maturity Securities | 190 | 289 | ' | ' |
Federal Home Loan Bank Stock | 2,160 | 2,624 | ' | ' |
Total Loans Receivables | 454,700 | 424,584 | ' | ' |
Loans held-for-sale | 903 | 10,545 | ' | ' |
Accrued interest receivable | 1,973 | 1,985 | ' | ' |
Deposit Liabilities | 544,830 | 514,660 | ' | ' |
Short-term borrowings | 14,197 | 8,056 | ' | ' |
Long-term debt | 16,000 | 16,000 | ' | ' |
Cash and cash equivalents, fair value | 35,885 | 21,846 | ' | ' |
Held-To-Maturity Securities Fair Value | 207 | 320 | ' | ' |
Available-for-sale securities | 102,921 | 100,441 | ' | ' |
FHLB stock, fair value | 2,160 | 2,624 | ' | ' |
Loans, net, fair value | 455,351 | 430,861 | ' | ' |
Loans held-for-sale, fair value | 920 | 10,824 | ' | ' |
Deposit liabilities, fair value | 545,242 | 515,869 | ' | ' |
Short-term borrowings, fair value | 14,197 | 8,056 | ' | ' |
Long-term debt, fair value | 18,092 | 18,691 | ' | ' |
Quoted prices in active markets (Level 1) [Member] | ' | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents, fair value | 35,885 | 21,846 | ' | ' |
Available-for-sale securities | 519 | 466 | ' | ' |
Significant other observable inputs (Level 2) [Member] | ' | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Held-To-Maturity Securities Fair Value | 207 | 320 | ' | ' |
Available-for-sale securities | 99,459 | 98,150 | ' | ' |
FHLB stock, fair value | 2,160 | 2,624 | ' | ' |
Loans held-for-sale, fair value | 920 | 10,824 | ' | ' |
Deposit liabilities, fair value | 545,242 | 515,869 | ' | ' |
Short-term borrowings, fair value | 14,197 | 8,056 | ' | ' |
Long-term debt, fair value | 18,092 | 18,691 | ' | ' |
Significant other unobservable inputs (Level 3) [Member] | ' | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Available-for-sale securities | 2,943 | 1,825 | ' | ' |
Loans, net, fair value | $455,351 | $430,861 | ' | ' |
Fair_Value_Measurements_Fair_V
Fair Value Measurements (Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Total available-for-sale securities, Fair value | $102,921 | $100,441 |
Agency - GSE [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Total available-for-sale securities, Fair value | 15,709 | 17,740 |
Obligations of states and political subdivisions [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Total available-for-sale securities, Fair value | 31,162 | 29,857 |
Pooled trust preferred securities [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Total available-for-sale securities, Fair value | 2,943 | 1,825 |
MBS - GSE residential [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Total available-for-sale securities, Fair value | 52,588 | 50,553 |
Equity securities - financial services [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Total available-for-sale securities, Fair value | 519 | 466 |
Quoted prices in active markets (Level 1) [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Total available-for-sale securities, Fair value | 519 | 466 |
Quoted prices in active markets (Level 1) [Member] | Equity securities - financial services [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Total available-for-sale securities, Fair value | 519 | 466 |
Significant other observable inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Total available-for-sale securities, Fair value | 99,459 | 98,150 |
Significant other observable inputs (Level 2) [Member] | Agency - GSE [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Total available-for-sale securities, Fair value | 15,709 | 17,740 |
Significant other observable inputs (Level 2) [Member] | Obligations of states and political subdivisions [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Total available-for-sale securities, Fair value | 31,162 | 29,857 |
Significant other observable inputs (Level 2) [Member] | MBS - GSE residential [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Total available-for-sale securities, Fair value | 52,588 | 50,553 |
Significant other unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Total available-for-sale securities, Fair value | 2,943 | 1,825 |
Significant other unobservable inputs (Level 3) [Member] | Pooled trust preferred securities [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Total available-for-sale securities, Fair value | $2,943 | $1,825 |
Fair_Value_Measurements_Assets
Fair Value Measurements (Assets Measured at Fair Value On a Recurring Basis Using Level 3 Inputs) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Available-for-sale Securities | $102,921 | $100,441 |
structural behavior | 'issuer specific | 'issuer specific |
loss given default rate | 100.00% | 100.00% |
prepayment rate | 0.00% | 0.00% |
recovery rate | 0.00% | 0.00% |
Pooled trust preferred securities [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Available-for-sale Securities | $2,943 | $1,825 |
Fair Value Measurements, Valuation Processes, Description | 'Discounted cash flow | ' |
Maximum [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Fair Value Inputs, Probability of Default | 2.76% | 4.17% |
correlation analysis among issuers | 50.00% | 50.00% |
Fair Value Inputs, Discount Rate | 75.00% | 36.30% |
Minimum [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Fair Value Inputs, Probability of Default | 2.19% | 4.11% |
correlation analysis among issuers | 30.00% | 30.00% |
Fair Value Inputs, Discount Rate | 0.00% | 0.00% |
Fair_Value_Measurements_Change
Fair Value Measurements (Changes In Level 3 Financial Instruments) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Net impairment losses on investment securities | ' | ($136) |
Pooled trust preferred securities [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Balance at beginning of period | 1,825 | 1,466 |
Net impairment losses on investment securities | ' | -136 |
Gains | 1,519 | 518 |
Losses | -193 | -113 |
Pay down / settlement | -216 | -96 |
Interest paid in kind | 6 | 21 |
Accretion | 2 | 3 |
Balance at end of period | $2,943 | $1,663 |
Fair_Value_Measurements_Fair_V1
Fair Value Measurements (Fair Value Measurements at Fair Value Segregated by Hierarchy Fair Value Levels) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | $3,911 | $6,563 |
Impaired loans [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 1,924 | 5,109 |
Other real estate owned [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 1,987 | 1,448 |
Other repossessed assets [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | ' | 6 |
Significant other unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 3,911 | 6,563 |
Significant other unobservable inputs (Level 3) [Member] | Impaired loans [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 1,924 | 5,109 |
Significant other unobservable inputs (Level 3) [Member] | Other real estate owned [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 1,987 | 1,448 |
Significant other unobservable inputs (Level 3) [Member] | Other repossessed assets [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | ' | $6 |