Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 08, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'CENTRAL VALLEY COMMUNITY BANCORP | ' |
Entity Central Index Key | '0001127371 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 10,914,680 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | |||
Cash and due from banks | $32,190 | $22,405 | ' |
Interest-earning deposits in other banks | 49,854 | 30,123 | ' |
Federal funds sold | 154 | 428 | ' |
Total cash and cash equivalents | 82,198 | 52,956 | 76,919 |
Available-for-sale investment securities (Amortized cost of $419,270 at September 30, 2013 and $381,074 at December 31, 2012) | 417,833 | 393,965 | ' |
Loans, less allowance for credit losses of $9,732 at September 30, 2013 and $10,133 at December 31, 2012 | 505,501 | 385,185 | ' |
Bank premises and equipment, net | 10,565 | 6,252 | ' |
Other real estate owned | 124 | ' | 0 |
Bank owned life insurance | 19,290 | 12,163 | ' |
Federal Home Loan Bank stock | 4,499 | 3,850 | ' |
Goodwill | 29,776 | 23,577 | ' |
Core deposit intangibles | 1,764 | 583 | ' |
Accrued interest receivable and other assets | 20,237 | 11,697 | ' |
Total assets | 1,091,787 | 890,228 | ' |
Deposits: | ' | ' | ' |
Non-interest bearing | 327,099 | 240,169 | ' |
Interest bearing | 616,690 | 511,263 | ' |
Total deposits | 943,789 | 751,432 | ' |
Short-term borrowings | 0 | 4,000 | ' |
Junior subordinated deferrable interest debentures | 5,155 | 5,155 | ' |
Accrued interest payable and other liabilities | 15,970 | 11,976 | ' |
Total liabilities | 964,914 | 772,563 | ' |
Commitments and contingencies (Note 9) | ' | ' | ' |
Shareholders’ equity: | ' | ' | ' |
Preferred stock, no par value, $1,000 per share liquidation preference; 10,000,000 shares authorized, Series C, issued and outstanding: 7,000 shares at September 30, 2013 and December 31, 2012 | 7,000 | 7,000 | ' |
Common stock, no par value; 80,000,000 shares authorized; issued and outstanding: 10,913,550 at September 30, 2013 and 9,558,746 at December 31, 2012 | 53,948 | 40,583 | ' |
Retained earnings | 66,771 | 62,496 | ' |
Accumulated other comprehensive (loss) income, net of tax | -846 | 7,586 | ' |
Total shareholders’ equity | 126,873 | 117,665 | ' |
Total liabilities and shareholders’ equity | $1,091,787 | $890,228 | ' |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Available-for-sale investment securities, Amortized cost | $419,270 | $381,074 |
Loans, allowance for credit losses | $9,732 | $10,133 |
Preferred stock, liquidation preference | $1,000 | $1,000 |
Preferred stock, authorized | 10,000,000 | 10,000,000 |
Preferred stock, issued | 7,000 | 7,000 |
Preferred stock, outstanding | 7,000 | 7,000 |
Preferred stock, par value | $0 | $0 |
Common stock, authorized | 80,000,000 | 80,000,000 |
Common stock, issued | 10,913,550 | 9,558,746 |
Common stock, outstanding | 10,913,550 | 9,558,746 |
Common stock, par value | $0 | $0 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (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 |
INTEREST INCOME: | ' | ' | ' | ' |
Interest and fees on loans | $8,677 | $6,111 | $19,523 | $18,248 |
Interest on deposits in other banks | 45 | 36 | 104 | 70 |
Interest on Federal funds sold | 0 | 0 | 0 | 1 |
Interest and dividends on investment securities: | ' | ' | ' | ' |
Taxable | 588 | 741 | 1,341 | 2,694 |
Exempt from Federal income taxes | 1,593 | 1,118 | 4,329 | 3,233 |
Total interest income | 10,903 | 8,006 | 25,297 | 24,246 |
INTEREST EXPENSE: | ' | ' | ' | ' |
Interest on deposits | 342 | 371 | 947 | 1,307 |
Interest on junior subordinated deferrable interest debentures | 25 | 27 | 74 | 82 |
Other | 0 | 36 | 17 | 109 |
Total interest expense | 367 | 434 | 1,038 | 1,498 |
Net interest income before provision for credit losses | 10,536 | 7,572 | 24,259 | 22,748 |
PROVISION FOR CREDIT LOSSES | 0 | 0 | 0 | 500 |
Net interest income after provision for credit losses | 10,536 | 7,572 | 24,259 | 22,248 |
NON-INTEREST INCOME: | ' | ' | ' | ' |
Service charges | 911 | 690 | 2,282 | 2,055 |
Appreciation in cash surrender value of bank owned life insurance | 149 | 101 | 342 | 291 |
Loan placement fees | 128 | 181 | 507 | 408 |
Interchange fees | 268 | 198 | 678 | 570 |
Net realized gain on sale of assets | 0 | 0 | 1 | 4 |
Net gain on disposal of other real estate owned | 0 | 0 | 0 | 12 |
Net realized gains on sales of investment securities | 0 | 843 | 1,133 | 1,287 |
Federal Home Loan Bank dividends | 59 | 4 | 113 | 11 |
Other income | 298 | 267 | 811 | 775 |
Total non-interest income | 1,813 | 2,284 | 5,867 | 5,413 |
NON-INTEREST EXPENSES: | ' | ' | ' | ' |
Salaries and employee benefits | 5,048 | 3,773 | 12,916 | 11,859 |
Occupancy and equipment | 1,134 | 906 | 2,936 | 2,664 |
Regulatory assessments | 220 | 163 | 517 | 488 |
Data processing expense | 357 | 274 | 949 | 851 |
Advertising | 124 | 139 | 346 | 419 |
Audit and accounting fees | 135 | 126 | 406 | 379 |
Legal fees | -18 | 36 | 84 | 118 |
Acquisition and integration | 271 | 0 | 784 | 0 |
Other real estate owned, net | 5 | 6 | 5 | 78 |
Amortization of core deposit intangibles | 84 | 50 | 184 | 150 |
Other expense | 1,631 | 1,182 | 4,021 | 3,285 |
Total non-interest expenses | 8,991 | 6,655 | 23,148 | 20,291 |
Income before provision for income taxes | 3,358 | 3,201 | 6,978 | 7,370 |
Provision for income taxes | 389 | 745 | 939 | 1,492 |
Net income | 2,969 | 2,456 | 6,039 | 5,878 |
Preferred stock dividends and accretion | 87 | 87 | 262 | 262 |
Net income available to common shareholders | $2,882 | $2,369 | $5,777 | $5,616 |
Net income per common share: | ' | ' | ' | ' |
Basic earnings per common share (in dollars per share) | $0.26 | $0.25 | $0.58 | $0.59 |
Weighted average common shares used in basic computation (in shares) | 10,899,086 | 9,602,473 | 10,020,057 | 9,588,321 |
Diluted earnings per common share (in dollars per share) | $0.26 | $0.25 | $0.57 | $0.58 |
Weighted average common shares used in diluted computation (in shares) | 10,958,811 | 9,635,339 | 10,080,034 | 9,613,202 |
Cash dividend per common share | $0.05 | $0 | $0.15 | $0 |
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 |
Statement of Other Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $2,969 | $2,456 | $6,039 | $5,878 |
Unrealized gains on securities: | ' | ' | ' | ' |
Unrealized holdings gains (losses) | 797 | 3,858 | -13,195 | 8,050 |
Less: reclassification for net gains included in net income | 0 | 843 | 1,133 | 1,287 |
Other comprehensive income (loss), before tax | 797 | 3,015 | -14,328 | 6,763 |
Tax benefit (expense) related to items of other comprehensive income | -328 | -1,240 | 5,896 | -2,783 |
Total other comprehensive income (loss) | 469 | 1,775 | -8,432 | 3,980 |
Comprehensive income | $3,438 | $4,231 | ($2,393) | $9,858 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $6,039,000 | $5,878,000 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ' | ' |
Net decrease in deferred loan fees | -217,000 | -178,000 |
Depreciation | 801,000 | 717,000 |
Accretion | -614,000 | -530,000 |
Amortization | 7,031,000 | 5,240,000 |
Stock-based compensation | 73,000 | 83,000 |
Tax benefit from exercise of stock options | -16,000 | -25,000 |
Provision for credit losses | 0 | 500,000 |
Net realized gains on sales of available-for-sale investment securities | -1,133,000 | -1,287,000 |
Net gain on sale and disposal of equipment | -1,000 | -4,000 |
Net gain on sale of other real estate owned | 0 | -12,000 |
Increase in bank owned life insurance, net of expenses | -342,000 | -291,000 |
Net decrease in accrued interest receivable and other assets | 873,000 | 701,000 |
Net decrease in prepaid FDIC assessments | 1,542,000 | 384,000 |
Net (increase) decrease in accrued interest payable and other liabilities | -1,741,000 | 4,410,000 |
(Benefit from) provision for deferred income taxes | -1,191,000 | 514,000 |
Net cash provided by operating activities | 11,104,000 | 16,100,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Net cash and cash equivalents acquired in acquisition | 40,729,000 | 0 |
Purchases of available-for-sale investment securities | -129,572,000 | -136,392,000 |
Proceeds from sales or calls of available-for-sale investment securities | 37,428,000 | 38,554,000 |
Proceeds from maturity and principal repayments of available-for-sale investment securities | 63,666,000 | 64,933,000 |
Net (increase) decrease in loans | -6,633,000 | 24,418,000 |
Proceeds from sale of other real estate owned | 139,000 | 2,349,000 |
Purchases of premises and equipment | -852,000 | -1,142,000 |
Purchases of bank owned life insurance | 0 | -116,000 |
FHLB stock redeemed (purchased) | 48,000 | -957,000 |
Proceeds from sale of premises and equipment | 1,000 | 5,000 |
Net cash provided by (used in) investing activities | 4,954,000 | -8,348,000 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Net decrease in demand, interest bearing and savings deposits | 11,334,000 | 33,051,000 |
Net increase (decrease) in time deposits | 6,816,000 | -8,751,000 |
Repayments of short-term borrowings to Federal Home Loan Bank | -4,000,000 | 0 |
Purchase and retirement of common stock | 0 | 61,000 |
Proceeds from exercise of stock options | 782,000 | 361,000 |
Excess tax benefit from exercise of stock options | 16,000 | 25,000 |
Cash dividend payments on common stock | -1,502,000 | 0 |
Cash dividend payments on preferred stock | -262,000 | -262,000 |
Net cash provided by financing activities | 13,184,000 | 24,363,000 |
Increase in cash and cash equivalents | 29,242,000 | 32,115,000 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 52,956,000 | 44,804,000 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 82,198,000 | 76,919,000 |
Cash paid during the period for: | ' | ' |
Interest | 1,078,000 | 1,571,000 |
Income taxes | 1,340,000 | 760,000 |
Non-cash investing and financing activities: | ' | ' |
Transfer of loans to other real estate owned | 0 | 2,337,000 |
Accrued preferred stock dividends | 87,000 | 87,000 |
Common stock issued in Visalia Community Bank acquisition | $12,494,000 | $0 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The interim unaudited consolidated financial statements of Central Valley Community Bancorp and subsidiary have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC). These interim consolidated financial statements include the accounts of Central Valley Community Bancorp and its wholly owned subsidiary Central Valley Community Bank (the Bank) (collectively, the Company). All significant intercompany accounts and transactions have been eliminated in consolidation. As discussed in Note 12, on July 1, 2013, the Company completed an acquisition under which Visalia Community Bank merged with and into Central Valley Community Bancorp’s subsidiary, Central Valley Community Bank. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been omitted. The Company believes that the disclosures are adequate to make the information presented not misleading. These interim consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s 2012 Annual Report to Shareholders on Form 10-K. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the Company’s financial position at September 30, 2013, and the results of its operations and its cash flows for the three and nine month interim periods ended September 30, 2013 and 2012 have been included. Certain reclassifications have been made to prior year amounts to conform to the 2013 presentation. Reclassifications had no effect on prior period net income or shareholders’ equity. The results of operations for interim periods are not necessarily indicative of results for the full year. | |
The preparation of these consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Management has determined that since all of the banking products and services offered by the Company are available in each branch of the Bank, all branches are located within the same economic environment, and management does not allocate resources based on the performance of different lending or transaction activities, it is appropriate to aggregate the Bank branches and report them as a single operating segment. No customer accounts for more than 10 percent of revenues for the Company or the Bank. | |
Impact of New Financial Accounting Standards | |
Presentation of Comprehensive Income | |
In February 2013, the FASB issued ASU 2013-02, Comprehensive Income (“Topic 220”) - Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“ASU 2013-02”). This ASU requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under GAAP that provide additional detail about those amounts. ASU 2013-02 is effective prospectively for annual and interim periods beginning after December 15, 2012. The Company adopted this standard on January 1, 2013. The adoption of this ASU did not have a material impact on the Company’s financial position, results of operations, or cash flows. |
ShareBased_Compensation
Share-Based Compensation | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Share-Based Compensation | ' | |||||||||||||
Share-Based Compensation | ||||||||||||||
For the nine month periods ended September 30, 2013 and 2012, share-based compensation cost recognized was $73,000 and $83,000, respectively. For the three month periods ended September 30, 2013 and 2012, share-based compensation cost recognized was $23,000 and $19,000, respectively. The recognized tax benefits for stock option compensation expense were $13,000 and $14,000, respectively, for the nine month periods ended September 30, 2013 and 2012. For the quarter ended September 30, 2013 and 2012, the recognized tax benefits for stock option compensation expense were $4,000 and $3,000, respectively. | ||||||||||||||
The Company bases the fair value of the options granted on the date of grant using a Black-Scholes Merton option pricing model that uses assumptions based on expected option life and the level of estimated forfeitures, expected stock volatility, risk free interest rate, and dividend yield. The expected term and level of estimated forfeitures of the Company’s options are based on the Company’s own historical experience. Stock volatility is based on the historical volatility of the Company’s stock. The risk-free rate is based on the U. S. Treasury yield curve for the periods within the contractual life of the options in effect at the time of grant. The compensation cost for options granted is based on the weighted average grant date fair value per share. | ||||||||||||||
No options to purchase shares of the Company’s common stock were issued in the first nine months of 2013 from either of the Company’s stock based compensation plans. During the quarter ended September 30, 2012, options to purchase 91,150 shares of the Company’s common stock were issued from the Central Valley Community Bancorp 2005 Omnibus Plan (2005 Plan) at an exercise price of $8.02. | ||||||||||||||
A summary of the combined activity of the Company’s Stock Based Compensation Plans for the nine month period ended September 30, 2013 follows: | ||||||||||||||
Shares | Weighted | Weighted | Aggregate | |||||||||||
Average | Average | Intrinsic Value (In thousands) | ||||||||||||
Exercise Price | Remaining | |||||||||||||
Contractual | ||||||||||||||
Term (Years) | ||||||||||||||
Options outstanding at January 1, 2013 | 499,289 | $ | 8.78 | |||||||||||
Options exercised | (92,199 | ) | $ | 8.48 | ||||||||||
Options forfeited | (25,470 | ) | $ | 9.15 | ||||||||||
Options outstanding at September 30, 2013 | 381,620 | $ | 8.82 | 4.96 | $ | 889 | ||||||||
Options vested or expected to vest at September 30, 2013 | 376,118 | $ | 8.83 | 4.91 | $ | 874 | ||||||||
Options exercisable at September 30, 2013 | 278,820 | $ | 9.38 | 3.74 | $ | 597 | ||||||||
The total intrinsic value of 92,199 options exercised in the nine months ended September 30, 2013 was $77,000. Cash received from options exercised for the nine months ended September 30, 2013 and 2012 was $782,000 and $361,000, respectively. The actual tax benefit realized for the tax deductions from options exercised totaled $16,000 and $25,000 for the nine months ended September 30, 2013 and 2012, respectively. As of September 30, 2013, there was $292,000 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under both plans. The cost is expected to be recognized over a weighted average period of 3.35 years. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||
Earnings Per Share | |||||||||||||||||
Basic earnings per share (EPS), which excludes dilution, is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock, such as stock options, stock appreciation rights settled in stock or restricted stock awards, result in the issuance of common stock which shares in the earnings of the Company. A reconciliation of the numerators and denominators of the basic and diluted EPS computations is as follows: | |||||||||||||||||
Basic Earnings Per Share | For the Three Months | For the Nine Months Ended September 30, | |||||||||||||||
Ended September 30, | |||||||||||||||||
(In thousands, except share and per share amounts) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Net Income | $ | 2,969 | $ | 2,456 | $ | 6,039 | $ | 5,878 | |||||||||
Less: Preferred stock dividends and accretion | (87 | ) | (87 | ) | (262 | ) | (262 | ) | |||||||||
Income available to common shareholders | $ | 2,882 | $ | 2,369 | $ | 5,777 | $ | 5,616 | |||||||||
Weighted average shares outstanding | 10,899,086 | 9,602,473 | 10,020,057 | 9,588,321 | |||||||||||||
Basic earnings per share | $ | 0.26 | $ | 0.25 | $ | 0.58 | $ | 0.59 | |||||||||
Diluted Earnings Per Share | For the Three Months | For the Nine Months Ended September 30, | |||||||||||||||
Ended September 30, | |||||||||||||||||
(In thousands, except share and per share amounts) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Net Income | $ | 2,969 | $ | 2,456 | $ | 6,039 | $ | 5,878 | |||||||||
Less: Preferred stock dividends and accretion | (87 | ) | (87 | ) | (262 | ) | (262 | ) | |||||||||
Income available to common shareholders | $ | 2,882 | $ | 2,369 | $ | 5,777 | $ | 5,616 | |||||||||
Weighted average shares outstanding | 10,899,086 | 9,602,473 | 10,020,057 | 9,588,321 | |||||||||||||
Effect of dilutive stock options | 59,725 | 32,866 | 59,977 | 24,881 | |||||||||||||
Weighted average shares of common stock and common stock equivalents | 10,958,811 | 9,635,339 | 10,080,034 | 9,613,202 | |||||||||||||
Diluted earnings per share | $ | 0.26 | $ | 0.25 | $ | 0.57 | $ | 0.58 | |||||||||
During the nine month periods ended September 30, 2013 and 2012, options to purchase 202,355 and 364,209 shares of common stock, respectively, were not factored into the calculation of dilutive stock options because they were anti-dilutive. |
Investments
Investments | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||||||||||
Investments | ' | |||||||||||||||||||||||||||||||
Investments | ||||||||||||||||||||||||||||||||
The investment portfolio consists primarily of U.S. Government sponsored entity and agency securities collateralized by residential mortgage obligations, private label residential mortgage backed securities (PLRMBS), and obligations of states and political subdivisions securities, all of which are classified as available-for-sale. As of September 30, 2013, $109,500,000 of these securities were held as collateral for borrowing arrangements, public funds, and for other purposes. | ||||||||||||||||||||||||||||||||
The fair value of the available-for-sale investment portfolio reflected a net unrealized loss of $1,437,000 at September 30, 2013 compared to an unrealized gain of $12,891,000 at December 31, 2012. | ||||||||||||||||||||||||||||||||
The following table sets forth the carrying values and estimated fair values of our investment securities portfolio at the dates indicated (in thousands): | ||||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Available-for-Sale Securities | Amortized Cost | Gross | Gross | Estimated | ||||||||||||||||||||||||||||
Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||
U.S. Government agencies | $ | 16,410 | $ | 198 | $ | (29 | ) | $ | 16,579 | |||||||||||||||||||||||
Obligations of states and political subdivisions | 186,818 | 4,598 | (6,821 | ) | 184,595 | |||||||||||||||||||||||||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations | 203,728 | 1,295 | (1,662 | ) | 203,361 | |||||||||||||||||||||||||||
Private label residential mortgage backed securities | 4,718 | 954 | — | 5,672 | ||||||||||||||||||||||||||||
Other equity securities | 7,596 | 30 | — | 7,626 | ||||||||||||||||||||||||||||
$ | 419,270 | $ | 7,075 | $ | (8,512 | ) | $ | 417,833 | ||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
Available-for-Sale Securities | Amortized Cost | Gross | Gross | Estimated | ||||||||||||||||||||||||||||
Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||
U.S. Government agencies | $ | 9,443 | $ | 34 | $ | (23 | ) | $ | 9,454 | |||||||||||||||||||||||
Obligations of states and political subdivisions | 151,312 | 10,751 | (385 | ) | 161,678 | |||||||||||||||||||||||||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations | 206,465 | 3,152 | (1,107 | ) | 208,510 | |||||||||||||||||||||||||||
Private label residential mortgage backed securities | 6,258 | 323 | (206 | ) | 6,375 | |||||||||||||||||||||||||||
Other equity securities | 7,596 | 352 | — | 7,948 | ||||||||||||||||||||||||||||
$ | 381,074 | $ | 14,612 | $ | (1,721 | ) | $ | 393,965 | ||||||||||||||||||||||||
Proceeds and gross realized gains (losses) from the sales or calls of investment securities for the periods ended September 30, 2013 and 2012 are shown below (in thousands): | ||||||||||||||||||||||||||||||||
For the Three Months | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
Ended September 30, | ||||||||||||||||||||||||||||||||
Available-for-Sale Securities | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||
Proceeds from sales or calls | $ | 1,575 | $ | 31,055 | $ | 37,428 | $ | 38,554 | ||||||||||||||||||||||||
Gross realized gains from sales or calls | — | 1,128 | 1,401 | 1,694 | ||||||||||||||||||||||||||||
Gross realized losses from sales or calls | — | (285 | ) | (268 | ) | (407 | ) | |||||||||||||||||||||||||
The provision for income taxes includes $466,000 and $530,000 income tax impact from the reclassification of unrealized net gains on available-for-sale securities to realized net gains on available-for-sale securities for the nine months ended September 30, 2013 and 2012. The provision for income taxes includes $0 and $348,000 of income tax impact from the reclassification of unrealized net gains on available-for-sale securities to realized net gains on available-for-sale securities for the three months ended September 30, 2013 and 2012. respectively. | ||||||||||||||||||||||||||||||||
Investment securities with unrealized losses as of the dates indicated are summarized and classified according to the duration of the loss period as follows (in thousands): | ||||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||||
Available-for-Sale Securities | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||
U.S. Government agencies | $ | 3,039 | $ | (29 | ) | $ | — | $ | — | $ | 3,039 | $ | (29 | ) | ||||||||||||||||||
Obligations of states and political subdivisions | 101,937 | (6,510 | ) | 2,597 | (311 | ) | 104,534 | (6,821 | ) | |||||||||||||||||||||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations | 83,339 | (1,339 | ) | 21,806 | (323 | ) | 105,145 | (1,662 | ) | |||||||||||||||||||||||
$ | 188,315 | $ | (7,878 | ) | $ | 24,403 | $ | (634 | ) | $ | 212,718 | $ | (8,512 | ) | ||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||||
Available-for-Sale Securities | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||
U.S. Government agencies | $ | 3,590 | $ | (23 | ) | $ | — | $ | — | $ | 3,590 | $ | (23 | ) | ||||||||||||||||||
Obligations of states and political subdivisions | 30,572 | (385 | ) | — | — | 30,572 | (385 | ) | ||||||||||||||||||||||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations | 76,764 | (809 | ) | 18,024 | (298 | ) | 94,788 | (1,107 | ) | |||||||||||||||||||||||
Private label residential mortgage backed securities | — | — | 2,886 | (206 | ) | 2,886 | (206 | ) | ||||||||||||||||||||||||
$ | 110,926 | $ | (1,217 | ) | $ | 20,910 | $ | (504 | ) | $ | 131,836 | $ | (1,721 | ) | ||||||||||||||||||
We periodically evaluate each investment security for other-than-temporary impairment, relying primarily on industry analyst reports, observation of market conditions and interest rate fluctuations. Under ASC 320-10, the portion of the impairment that is attributable to a shortage in the present value of expected future cash flows relative to the amortized cost should be recorded as a current period charge to earnings. The discount rate in this analysis is the original yield expected at time of purchase. | ||||||||||||||||||||||||||||||||
As of September 30, 2013, the Company performed an analysis of the investment portfolio to determine whether any of the investments held in the portfolio had an other-than-temporary impairment (OTTI). Management evaluated all available-for-sale investment securities with an unrealized loss at September 30, 2013 and identified those that had an unrealized loss for at least a consecutive 12 month period, which had an unrealized loss at September 30, 2013 greater than 10% of the recorded book value on that date, or which had an unrealized loss of more than $10,000. Management also analyzed any securities that may have been downgraded by credit rating agencies. | ||||||||||||||||||||||||||||||||
For those bonds that met the evaluation criteria, management obtained and reviewed the most recently published national credit ratings for those bonds. For those bonds that were municipal debt securities with an investment grade rating by the rating agencies, management also evaluated the financial condition of the municipality and any applicable municipal bond insurance provider and concluded that no credit related impairment existed. | ||||||||||||||||||||||||||||||||
The evaluation for PLRMBS includes estimating projected cash flows that the Company is likely to collect based on an assessment of all available information about the applicable security on an individual basis, the structure of the security, and certain assumptions, such as the remaining payment terms for the security, prepayment speeds, default rates, loss severity on the collateral supporting the security based on underlying loan-level borrower and loan characteristics, expected housing price changes, and interest rate assumptions, to determine whether the Company will recover the entire amortized cost basis of the security. In performing a detailed cash flow analysis, the Company identified the best estimate of the cash flows expected to be collected. If this estimate results in a present value of expected cash flows (discounted at the security’s original yield) that is less than the amortized cost basis of the security, an OTTI is considered to have occurred. | ||||||||||||||||||||||||||||||||
To assess whether it expects to recover the entire amortized cost basis of its PLRMBS, the Company performed a cash flow analysis for all of its PLRMBS as of September 30, 2013. In performing the cash flow analysis for each security, the Company uses a third-party model. The model considers borrower characteristics and the particular attributes of the loans underlying the Company’s securities, in conjunction with assumptions about future changes in home prices and other assumptions, to project prepayments, default rates, and loss severities. | ||||||||||||||||||||||||||||||||
The month-by-month projections of future loan performance are allocated to the various security classes in each securitization structure in accordance with the structure’s prescribed cash flow and loss allocation rules. When the credit enhancement for the senior securities in a securitization is derived from the presence of subordinated securities, losses are allocated first to the subordinated securities until their principal balance is reduced to zero. The projected cash flows are based on a number of assumptions and expectations, and the results of these models can vary significantly with changes in assumptions and expectations. The scenario of cash flows determined based on the model approach described above reflects a best-estimate scenario. | ||||||||||||||||||||||||||||||||
At each quarter end, the Company compares the present value of the cash flows expected to be collected on its PLRMBS to the amortized cost basis of the securities to determine whether a credit loss exists. | ||||||||||||||||||||||||||||||||
Based upon management’s assessment of the expected credit losses of these securities given the performance of the underlying collateral compared with our credit enhancement (which occurs as a result of credit loss protection provided by subordinated tranches), the Company expects to recover the entire amortized cost basis of these securities, with the exception of certain securities for which OTTI was previously recorded. | ||||||||||||||||||||||||||||||||
U.S. Government Agencies | ||||||||||||||||||||||||||||||||
At September 30, 2013, the Company held six U.S. Government agency securities, of which two were in a loss position for less than 12 months and none were in a loss position nor had been in a loss position for 12 months or more. The unrealized losses on the Company’s investments in direct obligations of U.S. government agencies were caused by interest rate changes. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized costs of the investment. Because the decline in market value is attributable to changes in interest rates and not credit quality, and because the Company has the ability and intent to hold those investments until a recovery of fair value, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at September 30, 2013. | ||||||||||||||||||||||||||||||||
Obligations of States and Political Subdivisions | ||||||||||||||||||||||||||||||||
At September 30, 2013, the Company held 213 obligations of states and political subdivision securities of which 76 were in a loss position for less than 12 months and two were in a loss position and had been in a loss position for 12 months or more. The unrealized losses on the Company’s investments in obligations of states and political subdivision securities were caused by interest rate changes. Because the decline in market value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell, and it is more likely than not that it will not be required to sell those investments until a recovery of fair value, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at September 30, 2013. | ||||||||||||||||||||||||||||||||
U.S. Government Sponsored Entities and Agencies Collateralized by Residential Mortgage Obligations | ||||||||||||||||||||||||||||||||
At September 30, 2013, the Company held 197 U.S. Government sponsored entity and agency securities collateralized by residential mortgage obligations of which 41 were in a loss position for less than 12 months and 21 have been in a loss position for more than 12 months. The unrealized losses on the Company’s investments in U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations were caused by interest rate changes. The contractual cash flows of those investments are guaranteed by an agency or sponsored entity of the U.S. Government. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost of the Company’s investment. Because the decline in market value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell, and it is more likely than not that it will not be required to sell those investments until a recovery of fair value, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at September 30, 2013. | ||||||||||||||||||||||||||||||||
Private Label Residential Mortgage Backed Securities | ||||||||||||||||||||||||||||||||
At September 30, 2013, the Company had a total of 21 PLRMBS with a remaining principal balance of $4,718,000 and a net unrealized gain of approximately $954,000. None of these securities were recorded with an unrealized loss at September 30, 2013. Eight of these PLRMBS with a remaining principal balance of $3,713,000 had credit ratings below investment grade. The Company continues to perform extensive analyses on these securities. | ||||||||||||||||||||||||||||||||
PLRMBS as of September 30, 2013 with credit ratings below investment grade are summarized in the table below (dollars in thousands): | ||||||||||||||||||||||||||||||||
Description | Book | Market Value | Unrealized | Rating | Agency | 12 Month | Projected | Projected | Original | Current | ||||||||||||||||||||||
Value | Gain | Historical | Default | Severity | Purchase | Credit | ||||||||||||||||||||||||||
(Loss) | Prepayment | Rates % | Rates % | Price % | Enhancement | |||||||||||||||||||||||||||
Rates % | % | |||||||||||||||||||||||||||||||
PHHAM | $ | 1,471 | 1,684 | $ | 213 | D | Fitch | 14.18 | 20.07 | 51 | 97.25 | — | ||||||||||||||||||||
CWALT 1 | 515 | 562 | 47 | D | Fitch | 15.68 | 22.85 | 46.29 | 100.73 | — | ||||||||||||||||||||||
CWALT 2 | 219 | 220 | 1 | D | Fitch | 17.67 | 22.34 | 46.93 | 101.38 | (1.55 | ) | |||||||||||||||||||||
FHAMS | 1,296 | 1,713 | 417 | D | Fitch | 15.84 | 20.18 | 40.88 | 95 | (1.16 | ) | |||||||||||||||||||||
BAALT | 2 | 20 | 18 | C | Fitch | 15.01 | 11.47 | 36.58 | 97.24 | 0.92 | ||||||||||||||||||||||
ABFS | 124 | 262 | 138 | D | S&P | 7.41 | 40.1 | 46.75 | 97.46 | — | ||||||||||||||||||||||
CWALT 3 | 50 | 52 | 2 | B1 | Moodys | 24.13 | 10.37 | 43.71 | 94.47 | 11.21 | ||||||||||||||||||||||
CONHE | 36 | 57 | 21 | B | S&P | 3.65 | 8.26 | 46.75 | 86.39 | — | ||||||||||||||||||||||
$ | 3,713 | $ | 4,570 | $ | 857 | |||||||||||||||||||||||||||
The following tables provide a roll forward for the three and nine month periods ended September 30, 2013 and 2012 of investment securities credit losses recorded in earnings. The beginning balance represents the credit loss component for which OTTI occurred on debt securities in prior periods. Additions represent the first time a debt security was credit impaired or when subsequent credit impairments have occurred on securities for which OTTI credit losses have been previously recognized. | ||||||||||||||||||||||||||||||||
For the Three Months | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
Ended September 30, | ||||||||||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||
Beginning balance | $ | 800 | $ | 783 | $ | 783 | $ | 783 | ||||||||||||||||||||||||
Amounts related to credit loss for which an OTTI charge was not previously recognized | — | — | 17 | — | ||||||||||||||||||||||||||||
Increases to the amount related to credit loss for which OTTI was previously recognized | — | — | — | — | ||||||||||||||||||||||||||||
Realized losses for securities sold | — | — | — | — | ||||||||||||||||||||||||||||
Ending balance | $ | 800 | $ | 783 | $ | 800 | $ | 783 | ||||||||||||||||||||||||
The amortized cost and estimated fair value of investment securities at September 30, 2013 by contractual maturity is shown below (in thousands). Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties. | ||||||||||||||||||||||||||||||||
September 30, 2013 | Amortized Cost | Estimated Fair | ||||||||||||||||||||||||||||||
Value | ||||||||||||||||||||||||||||||||
Within one year | $ | 115 | $ | 115 | ||||||||||||||||||||||||||||
After one year through five years | 12,804 | 13,658 | ||||||||||||||||||||||||||||||
After five years through ten years | 24,758 | 25,645 | ||||||||||||||||||||||||||||||
After ten years | 149,141 | 145,177 | ||||||||||||||||||||||||||||||
186,818 | 184,595 | |||||||||||||||||||||||||||||||
Investment securities not due at a single maturity date: | ||||||||||||||||||||||||||||||||
U.S. Government agencies | 16,410 | 16,579 | ||||||||||||||||||||||||||||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations | 203,728 | 203,361 | ||||||||||||||||||||||||||||||
Private label residential mortgage backed securities | 4,718 | 5,672 | ||||||||||||||||||||||||||||||
Other equity securities | 7,596 | 7,626 | ||||||||||||||||||||||||||||||
$ | 419,270 | $ | 417,833 | |||||||||||||||||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||
Fair Value Hierarchy | |||||||||||||||||||||
Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. In accordance with applicable guidance, the Company groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Valuations within these levels are based upon: | |||||||||||||||||||||
Level 1 — Quoted market prices (unadjusted) for identical instruments traded in active exchange markets that the Company has the ability to access as of the measurement date. | |||||||||||||||||||||
Level 2 — Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable or can be corroborated by observable market data. | |||||||||||||||||||||
Level 3 — Model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect the Company’s estimates of assumptions that market participants would use on pricing the asset or liability. Valuation techniques include management judgment and estimation which may be significant. | |||||||||||||||||||||
Management monitors the availability of observable market data to assess the appropriate classification of financial instruments within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, we report the transfer at the beginning of the reporting period. The estimated carrying and fair values of the Company’s financial instruments are as follows (in thousands): | |||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||
Carrying | Fair Value | ||||||||||||||||||||
(In thousands) | Amount | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and due from banks | $ | 32,190 | $ | 32,190 | $ | — | $ | — | $ | 32,190 | |||||||||||
Interest-earning deposits in other banks | 49,854 | 49,854 | — | — | 49,854 | ||||||||||||||||
Federal funds sold | 154 | 154 | — | — | 154 | ||||||||||||||||
Available-for-sale investment securities | 417,833 | 7,626 | 410,207 | — | 417,833 | ||||||||||||||||
Loans, net | 505,501 | — | — | 509,109 | 509,109 | ||||||||||||||||
Federal Home Loan Bank stock | 4,499 | N/A | N/A | N/A | N/A | ||||||||||||||||
Accrued interest receivable | 4,901 | 22 | 2,739 | 2,140 | 4,901 | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | 943,789 | 769,903 | 173,397 | — | 943,300 | ||||||||||||||||
Junior subordinated deferrable interest debentures | 5,155 | — | — | 2,603 | 2,603 | ||||||||||||||||
Accrued interest payable | 134 | — | 110 | 24 | 134 | ||||||||||||||||
31-Dec-12 | |||||||||||||||||||||
Carrying | Fair Value | ||||||||||||||||||||
(In thousands) | Amount | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and due from banks | $ | 22,405 | $ | 22,405 | $ | — | $ | — | $ | 22,405 | |||||||||||
Interest-earning deposits in other banks | 30,123 | 30,123 | — | — | 30,123 | ||||||||||||||||
Federal funds sold | 428 | 428 | — | — | 428 | ||||||||||||||||
Available-for-sale investment securities | 393,965 | 7,948 | 386,017 | — | 393,965 | ||||||||||||||||
Loans, net | 385,185 | — | — | 388,834 | 388,834 | ||||||||||||||||
Federal Home Loan Bank stock | 3,850 | N/A | N/A | N/A | N/A | ||||||||||||||||
Accrued interest receivable | 4,267 | 22 | 2,395 | 1,850 | 4,267 | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | 751,432 | 614,556 | 137,401 | — | 751,957 | ||||||||||||||||
Short-term borrowings | 4,000 | — | 4,016 | — | 4,016 | ||||||||||||||||
Junior subordinated deferrable interest debentures | 5,155 | — | — | 2,990 | 2,990 | ||||||||||||||||
Accrued interest payable | 174 | — | 149 | 25 | 174 | ||||||||||||||||
These estimates do not reflect any premium or discount that could result from offering the Company’s entire holdings of a particular financial instrument for sale at one time, nor do they attempt to estimate the value of anticipated future business related to the instruments. In addition, the tax ramifications related to the realization of unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of these estimates. | |||||||||||||||||||||
These estimates are made at a specific point in time based on relevant market data and information about the financial instruments. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the fair values presented. | |||||||||||||||||||||
The methods and assumptions used to estimate fair values are described as follows: | |||||||||||||||||||||
(a) Cash and Cash Equivalents — The carrying amounts of cash and due from banks, interest-earning deposits in other banks, and Federal funds sold approximate fair values and are classified as Level 1. | |||||||||||||||||||||
(b) Available-for-Sale Investment Securities — Available-for-sale investment securities in Level 1 are mutual funds and fair values are based on quoted market prices for identical instruments traded in active markets. Fair values for available-for-sale investment securities classified in Level 2 are based on quoted market prices for similar securities in active markets. For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators. | |||||||||||||||||||||
(c) Loans — Fair values of loans are estimated as follows: For variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values resulting in a Level 3 classification. Purchased credit impaired (PCI) loans are measured at estimated fair value on the date of acquisition. Carrying value is calculated as the present value of expected cash flows and approximates fair value. Fair values for other loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality resulting in a Level 3 classification. Impaired loans are initially valued at the lower of cost or fair value. Impaired loans carried at fair value generally receive specific allocations of the allowance for loan losses. For collateral dependent loans, fair value is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management's historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price. | |||||||||||||||||||||
(d) FHLB Stock — It is not practicable to determine the fair value of FHLB stock due to restrictions placed on its transferability. | |||||||||||||||||||||
(e) Other real estate owned — OREO is measured at fair value less estimated costs to sell when acquired, establishing a new cost basis. Fair value is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process to adjust for differences between the comparable sales and income data available. The Company records OREO as non-recurring with level 3 measurement inputs. | |||||||||||||||||||||
(f) Deposits — Fair value of demand deposit, savings, and money market accounts are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount), resulting resulting in a Level 1 classification. Fair value for fixed and variable rate certificates of deposit are estimated using discounted cash flow analyses using interest rates offered at each reporting date by the Company for certificates with similar remaining maturities resulting in a Level 2 classification. | |||||||||||||||||||||
(g) Short-Term Borrowings — The carrying amounts of federal funds purchased, borrowings under repurchase agreements, and other short-term borrowings, generally maturing within ninety days, approximate their fair values resulting in a Level 2 classification. | |||||||||||||||||||||
(h) Other Borrowings — The fair values of the Company’s long-term borrowings are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements resulting in a Level 2 classification. | |||||||||||||||||||||
The fair values of the Company’s Subordinated Debentures are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements resulting in a Level 3 classification. | |||||||||||||||||||||
(i) Accrued Interest Receivable/Payable — The fair value of accrued interest receivable and payable is based on the fair value hierarchy of the related asset or liability. | |||||||||||||||||||||
(j) Off-Balance Sheet Instruments — Fair values for off-balance sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The fair value of commitments is not material. | |||||||||||||||||||||
Assets Recorded at Fair Value | |||||||||||||||||||||
The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring and non-recurring basis as of September 30, 2013: | |||||||||||||||||||||
Recurring Basis | |||||||||||||||||||||
The Company is required or permitted to record the following assets at fair value on a recurring basis under other accounting pronouncements as of September 30, 2013 (in thousands). | |||||||||||||||||||||
Description | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||
Debt Securities: | |||||||||||||||||||||
U.S. Government agencies | $ | 16,579 | $ | — | $ | 16,579 | $ | — | |||||||||||||
Obligations of states and political subdivisions | 184,595 | — | 184,595 | — | |||||||||||||||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations | 203,361 | — | 203,361 | — | |||||||||||||||||
Private label residential mortgage backed securities | 5,672 | — | 5,672 | — | |||||||||||||||||
Other equity securities | 7,626 | 7,626 | — | — | |||||||||||||||||
Total assets measured at fair value on a recurring basis | $ | 417,833 | $ | 7,626 | $ | 410,207 | $ | — | |||||||||||||
Securities in Level 1 are mutual funds and fair values are based on quoted market prices for identical instruments traded in active markets. Fair values for available-for-sale investment securities in Level 2 are based on quoted market prices for similar securities in active markets. For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators. | |||||||||||||||||||||
Management evaluates the significance of transfers between levels based upon the nature of the financial instrument and size of the transfer relative to total assets, total liabilities or total earnings. During the nine months ended September 30, 2013, no transfers between levels occurred. | |||||||||||||||||||||
There were no Level 3 assets measured at fair value on a recurring basis at September 30, 2013. Also there were no liabilities measured at fair value on a recurring basis at September 30, 2013. | |||||||||||||||||||||
Non-recurring Basis | |||||||||||||||||||||
The Company may be required, from time to time, to measure certain assets and liabilities at fair value on a non-recurring basis. These include assets and liabilities that are measured at the lower of cost or fair value that were recognized at fair value which was below cost at September 30, 2013 (in thousands). | |||||||||||||||||||||
Description | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Assets: | |||||||||||||||||||||
Impaired loans: | |||||||||||||||||||||
Commercial: | |||||||||||||||||||||
Commercial and industrial | $ | 610 | $ | — | $ | — | $ | 610 | |||||||||||||
Agricultural production | — | — | — | — | |||||||||||||||||
Total commercial | 610 | — | — | 610 | |||||||||||||||||
Real estate: | |||||||||||||||||||||
Owner occupied | — | — | — | — | |||||||||||||||||
Real estate-construction and other land loans | — | — | — | — | |||||||||||||||||
Commercial real estate | — | — | — | — | |||||||||||||||||
Agricultural real estate | — | — | — | — | |||||||||||||||||
Other | — | — | — | — | |||||||||||||||||
Total real estate | — | — | — | — | |||||||||||||||||
Consumer: | |||||||||||||||||||||
Equity loans and lines of credit | 61 | — | — | 61 | |||||||||||||||||
Consumer and installment | — | — | — | — | |||||||||||||||||
Total consumer | 61 | — | — | 61 | |||||||||||||||||
Lease financing receivable | — | — | — | — | |||||||||||||||||
Total impaired loans | 671 | — | — | 671 | |||||||||||||||||
Other real estate owned | — | — | — | — | |||||||||||||||||
Total assets measured at fair value on a non-recurring basis | $ | 671 | $ | — | $ | — | $ | 671 | |||||||||||||
At the time a loan is considered impaired, it is valued at the lower of cost or fair value. Impaired loans carried at fair value generally receive specific allocations of the allowance for loan losses. For collateral dependent loans, fair value is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. The fair value of impaired loans is based on the fair value of the collateral. Impaired loans were determined to be collateral dependent and categorized as Level 3 due to ongoing real estate market conditions resulting in inactive market date, which in turn required the use of unobservable inputs and assumptions in fair value measurements. Impaired loans evaluated under the discounted cash flow method are excluded from the table above. The discounted cash flow methods as prescribed by topic 310 is not a fair value measurement since the discount rate utilized is the loan's effective interest rate which is not a market rate. There were no changes in valuation techniques used during the nine months period ended September 30, 2013. | |||||||||||||||||||||
Appraisals for collateral-dependent impaired loans are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value is compared with independent data sources such as recent market data or industry-wide statistics. | |||||||||||||||||||||
Impaired loans that are measured for impairment using the fair value of the collateral for collateral dependent loans, had a principal balance of $1,355,000 with a valuation allowance of $684,000 at September 30, 2013, resulting in $588,000 provision for credit losses for the period ended September 30, 2013, down to their fair value of $671,000. The valuation allowance represents specific allocations for the allowance for credit losses for impaired loans. | |||||||||||||||||||||
The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring and nonrecurring basis as of December 31, 2012: | |||||||||||||||||||||
Recurring Basis | |||||||||||||||||||||
The Company is required or permitted to record the following assets at fair value on a recurring basis under other accounting pronouncements (in thousands). | |||||||||||||||||||||
Description | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||
Debt Securities: | |||||||||||||||||||||
U.S. Government agencies | $ | 9,454 | $ | — | $ | 9,454 | $ | — | |||||||||||||
Obligations of states and political subdivisions | 161,678 | — | 161,678 | — | |||||||||||||||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations | 208,510 | — | 208,510 | — | |||||||||||||||||
Private label residential mortgage backed securities | 6,375 | — | 6,375 | — | |||||||||||||||||
Other equity securities | 7,948 | 7,948 | — | — | |||||||||||||||||
Total assets measured at fair value on a recurring basis | $ | 393,965 | $ | 7,948 | $ | 386,017 | $ | — | |||||||||||||
Securities in Level 1 are mutual funds and fair values are based on quoted market prices for identical instruments traded in active markets. Fair values for available-for-sale investment securities in Level 2 are based on quoted market prices for similar securities in active markets. For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators. | |||||||||||||||||||||
Management evaluates the significance of transfers between levels based upon the nature of the financial instrument and size of the transfer relative to total assets, total liabilities or total earnings. During the year ended December 31, 2012, no transfers between levels occurred. | |||||||||||||||||||||
There were no Level 3 assets measured at fair value on a recurring basis at December 31, 2012. Also there were no liabilities measured at fair value on a recurring basis at December 31, 2012. | |||||||||||||||||||||
Non-recurring Basis | |||||||||||||||||||||
The Company may be required, from time to time, to measure certain assets and liabilities at fair value on a non-recurring basis. These include assets and liabilities that are measured at the lower of cost or fair value that were recognized at fair value which was below cost at December 31, 2012 (in thousands). | |||||||||||||||||||||
Description | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Impaired loans: | |||||||||||||||||||||
Commercial: | |||||||||||||||||||||
Commercial and industrial | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Agricultural production | — | — | — | — | |||||||||||||||||
Total commercial | — | — | — | — | |||||||||||||||||
Real estate: | |||||||||||||||||||||
Owner occupied | 194 | — | — | 194 | |||||||||||||||||
Real estate-construction and other land loans | 4,863 | — | — | 4,863 | |||||||||||||||||
Commercial real estate | — | — | — | — | |||||||||||||||||
Agricultural real estate | — | — | — | — | |||||||||||||||||
Other | — | — | — | — | |||||||||||||||||
Total real estate | 5,057 | — | — | 5,057 | |||||||||||||||||
Consumer: | |||||||||||||||||||||
Equity loans and lines of credit | 233 | — | — | 233 | |||||||||||||||||
Consumer and installment | — | — | — | — | |||||||||||||||||
Total consumer | 233 | — | — | 233 | |||||||||||||||||
Lease financing receivable | — | — | — | — | |||||||||||||||||
Total impaired loans | 5,290 | — | — | 5,290 | |||||||||||||||||
Other real estate owned | — | — | — | — | |||||||||||||||||
Total assets measured at fair value on a non-recurring basis | $ | 5,290 | $ | — | $ | — | $ | 5,290 | |||||||||||||
At the time a loan is considered impaired, it is valued at the lower of cost or fair value. Impaired loans carried at fair value generally receive specific allocations of the allowance for loan losses. For collateral dependent loans, fair value is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. The fair value of impaired loans is based on the fair value of the collateral. Impaired loans were determined to be collateral dependent and categorized as Level 3 due to ongoing real estate market conditions resulting in inactive market data, which in turn required the use of unobservable inputs and assumptions in fair value measurements. Impaired loans were determined to be collateral dependent and categorized as Level 3 due to ongoing real estate market conditions resulting in inactive market data, which in turn required the use of unobservable inputs and assumptions in fair value measurements. Impaired loans evaluated under the discounted cash flow method are excluded from the table above. The discounted cash flow method as prescribed by topic 310 is not a fair value measurement since the discount rate utilized is the loan’s effective interest rate which is not a market rate. There were no changes in valuation techniques used during the year ended December 31, 2012 | |||||||||||||||||||||
Appraisals for collateral-dependent impaired loans are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value is compared with independent data sources such as recent market data or industry-wide statistics. | |||||||||||||||||||||
Impaired loans that are measured for impairment using the fair value of the collateral for collateral dependent loans, had a principal balance of $5,386,000 with a valuation allowance of $96,000 at December 31, 2012, resulting in an additional provision for credit losses of $19,000 for the year ended December 31, 2012 down to their fair value of $5,290,000. The valuation allowance represents specific allocations for the allowance for credit losses for impaired loans. |
Loans
Loans | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Loans and Leases Receivable Disclosure [Abstract] | ' | |||||||||||||||
Loans | ' | |||||||||||||||
Loans | ||||||||||||||||
Outstanding loans are summarized as follows: | ||||||||||||||||
Loan Type (Dollars in thousands) | September 30, 2013 | % of Total | December 31, 2012 | % of Total | ||||||||||||
Loans | Loans | |||||||||||||||
Commercial: | ||||||||||||||||
Commercial and industrial | $ | 89,991 | 17.5 | % | $ | 77,956 | 19.7 | % | ||||||||
Agricultural land and production | 43,670 | 8.5 | % | 26,599 | 6.7 | % | ||||||||||
Total commercial | 133,661 | 26 | % | 104,555 | 26.4 | % | ||||||||||
Real estate: | ||||||||||||||||
Owner occupied | 155,171 | 30 | % | 114,444 | 28.9 | % | ||||||||||
Real estate construction and other land loans | 35,327 | 6.9 | % | 33,199 | 8.4 | % | ||||||||||
Commercial real estate | 85,457 | 16.6 | % | 53,797 | 13.6 | % | ||||||||||
Agricultural real estate | 39,857 | 7.7 | % | 28,400 | 7.2 | % | ||||||||||
Other real estate | 3,926 | 0.8 | % | 8,098 | 2 | % | ||||||||||
Total real estate | 319,738 | 62 | % | 237,938 | 60.1 | % | ||||||||||
Consumer: | ||||||||||||||||
Equity loans and lines of credit | 51,293 | 10 | % | 42,932 | 10.9 | % | ||||||||||
Consumer and installment | 10,777 | 2 | % | 10,346 | 2.6 | % | ||||||||||
Total consumer | 62,070 | 12 | % | 53,278 | 13.5 | % | ||||||||||
Deferred loan fees, net | (236 | ) | (453 | ) | ||||||||||||
Total gross loans | 515,233 | 100 | % | 395,318 | 100 | % | ||||||||||
Allowance for credit losses | (9,732 | ) | (10,133 | ) | ||||||||||||
Total loans | $ | 505,501 | $ | 385,185 | ||||||||||||
The table above includes loans acquired at fair value on July 1, 2013 with outstanding balances of $108 million as of September 30, 2013. | ||||||||||||||||
At September 30, 2013 and December 31, 2012, loans originated under Small Business Administration (SBA) programs totaling $6,315,000 and $5,586,000, respectively, were included in the real estate and commercial categories. | ||||||||||||||||
Purchased Credit Impaired Loans | ||||||||||||||||
The Company has loans that were acquired in an acquisition, for which there was, at acquisition, evidence of deterioration of credit quality since origination and for which it was probable, at acquisition, that all contractually required payments would not be collected. | ||||||||||||||||
These purchased credit impaired loans are recorded at the amount paid, such that there is no carryover of the seller’s allowance for loan losses. After acquisition, losses are recognized by an increase in the allowance for loan losses. The Company estimates the amount and timing of expected cash flows for each loan and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan (accretable yield). The excess of the loan’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. | ||||||||||||||||
The carrying amount of those loans is included in the balance sheet amounts of loans receivable at September 30, 2013 and December 31, 2012. The amounts of loans at September 30, 2013 and December 31, 2012 are as follows. | ||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||
Real estate | $ | 2,489,000 | $ | — | ||||||||||||
Outstanding balance | $ | 2,489,000 | $ | — | ||||||||||||
Carrying amount, net of allowance of $0 | $ | 2,489,000 | $ | — | ||||||||||||
Accretable yield, or income expected to be collected for the three and nine months ended September 30, 2013 and 2012 is as follows (in thousands): | ||||||||||||||||
For the Three Months | For the Nine Months Ended September 30, | |||||||||||||||
Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Balance at beginning of period | $ | — | $ | — | $ | — | $ | — | ||||||||
Additions | 105,000 | — | 105,000 | — | ||||||||||||
Accretion | (70,000 | ) | — | (70,000 | ) | — | ||||||||||
Reclassification from (to) non-accretable difference | 77,000 | — | 77,000 | — | ||||||||||||
Disposals | — | — | — | — | ||||||||||||
Balance at end of period | $ | 112,000 | $ | — | $ | 112,000 | $ | — | ||||||||
During the three and nine months ended September 30, 2013, the Company did not increase or decrease the allowance for loan losses with respect to these loans. | ||||||||||||||||
Loans acquired during each period or year for which it was probable at acquisition that all contractually required payments would not be collected are as follows: | ||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||
Contractually required payments receivable at acquisition: | ||||||||||||||||
Real estate | $ | 6,912,000 | $ | — | ||||||||||||
Total | $ | 6,912,000 | $ | — | ||||||||||||
Cash flows expected to be collected at acquisition | $ | 2,681,000 | $ | — | ||||||||||||
Fair value of in acquired loans at acquisition | $ | 2,576,000 | $ | — | ||||||||||||
Certain of the loans acquired by the Company that are within the scope of Topic ASC 310-30 are not accounted for using the income recognition model of the Topic because the Company cannot reliably estimate cash flows expected to be collected. The carrying amounts of such loans (which are included in the carrying amount, net of allowance, described above) are as follows. | ||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||
Loans acquired during the period | $ | 1,411,000 | $ | — | ||||||||||||
Loans at the end of the period | $ | 1,411,000 | $ | — | ||||||||||||
Allowance_for_Credit_Losses
Allowance for Credit Losses | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||||||||||
Allowance For Credit Losses | ' | ||||||||||||||||||||||||||||||||
Allowance for Credit Losses | |||||||||||||||||||||||||||||||||
The allowance for credit losses (the “allowance”) is an estimate of probable credit losses inherent in the Company’s loan portfolio that have been incurred as of the balance-sheet date. The allowance is established through a provision for credit losses which is charged to expense. Additions to the allowance are expected to maintain the adequacy of the total allowance after credit losses and loan growth. Credit exposures determined to be uncollectible are charged against the allowance. Cash received on previously charged off amounts is recorded as a recovery to the allowance. The allowance consists of two primary components, specific reserves related to impaired loans and general reserves for inherent losses related to loans that are not impaired. | |||||||||||||||||||||||||||||||||
For all portfolio segments, the determination of the general reserve for loans that are not impaired is based on estimates made by management, including but not limited to, consideration of historical losses by portfolio segment over the most recent 20 quarters, and qualitative factors including economic trends in the Company’s service areas, industry experience and trends, geographic concentrations, estimated collateral values, the Company’s underwriting policies, the character of the loan portfolio, and probable losses inherent in the portfolio taken as a whole. During the nine months ended September 30, 2013, management determined that the most recent 20 quarters was an appropriate look back period based on several factors including the current global economic uncertainty and various national and local economic indicators. Moving from a 16 quarter rolling average used at December 31, 2012 to a 20 quarter rolling average during the first quarter of 2013 did not have a material impact on the level of allowance required, but it did ensure that the significant historical loss years for the bank would continue to be factored into the general reserve analysis. Management determined that it was necessary to expand the look back period to capture enough data due to the size of the portfolio to produce statistically accurate historical loss calculations. We believe this period is an appropriate look back period. | |||||||||||||||||||||||||||||||||
The following table shows the summary of activities for the allowance for credit losses as of and for the three months ended September 30, 2013 and 2012 by portfolio segment (in thousands): | |||||||||||||||||||||||||||||||||
Commercial | Real Estate | Consumer | Unallocated | Total | |||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||||||
Beginning balance, July 1, 2013 | $ | 2,792 | $ | 5,057 | $ | 1,252 | $ | 500 | $ | 9,601 | |||||||||||||||||||||||
Provision charged to operations | (52 | ) | (331 | ) | 48 | 335 | — | ||||||||||||||||||||||||||
Losses charged to allowance | (5 | ) | — | (51 | ) | — | (56 | ) | |||||||||||||||||||||||||
Recoveries | 111 | 8 | 68 | — | 187 | ||||||||||||||||||||||||||||
Ending balance, September 30, 2013 | $ | 2,846 | $ | 4,734 | $ | 1,317 | $ | 835 | $ | 9,732 | |||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||||||
Beginning balance, July 1. 2012 | $ | 2,799 | $ | 5,474 | $ | 1,494 | $ | 373 | $ | 10,140 | |||||||||||||||||||||||
Provision charged to operations | (329 | ) | 532 | 151 | (354 | ) | — | ||||||||||||||||||||||||||
Losses charged to allowance | (1 | ) | — | (219 | ) | — | (220 | ) | |||||||||||||||||||||||||
Recoveries | 209 | — | 85 | — | 294 | ||||||||||||||||||||||||||||
Ending balance, September 30, 2012 | $ | 2,678 | $ | 6,006 | $ | 1,511 | $ | 19 | $ | 10,214 | |||||||||||||||||||||||
The following table shows the summary of activities for the allowance for credit losses as of and for the nine months ended September 30, 2013 and 2012 by portfolio segment of loans (in thousands): | |||||||||||||||||||||||||||||||||
Commercial | Real Estate | Consumer | Unallocated | Total | |||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||||||
Beginning balance, January 1, 2013 | $ | 2,676 | $ | 5,877 | $ | 1,541 | $ | 39 | $ | 10,133 | |||||||||||||||||||||||
Provision charged to operations | 622 | (1,151 | ) | (267 | ) | 796 | — | ||||||||||||||||||||||||||
Losses charged to allowance | (706 | ) | — | (86 | ) | — | (792 | ) | |||||||||||||||||||||||||
Recoveries | 254 | 8 | 129 | — | 391 | ||||||||||||||||||||||||||||
Ending balance, September 30, 2013 | $ | 2,846 | $ | 4,734 | $ | 1,317 | $ | 835 | $ | 9,732 | |||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||||||
Beginning balance, January 1, 2012 | $ | 2,266 | $ | 7,155 | $ | 1,836 | $ | 139 | $ | 11,396 | |||||||||||||||||||||||
Provision charged to operations | 33 | 643 | (56 | ) | (120 | ) | 500 | ||||||||||||||||||||||||||
Losses charged to allowance | (123 | ) | (1,792 | ) | (486 | ) | — | (2,401 | ) | ||||||||||||||||||||||||
Recoveries | 502 | — | 217 | — | 719 | ||||||||||||||||||||||||||||
Ending balance, September 30, 2012 | $ | 2,678 | $ | 6,006 | $ | 1,511 | $ | 19 | $ | 10,214 | |||||||||||||||||||||||
The following is a summary of the allowance for credit losses by impairment methodology and portfolio segment as of September 30, 2013 and December 31, 2012 (in thousands). | |||||||||||||||||||||||||||||||||
Commercial | Real Estate | Consumer | Unallocated | Total | |||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||||||
Ending balance, September 30, 2013 | $ | 2,846 | $ | 4,734 | 1,317 | $ | 835 | $ | 9,732 | ||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 632 | $ | 214 | 235 | $ | — | $ | 1,081 | ||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 2,214 | $ | 4,520 | 1,082 | $ | 835 | $ | 8,651 | ||||||||||||||||||||||||
Ending balance, December 31, 2012 | $ | 2,676 | $ | 5,877 | $ | 1,541 | $ | 39 | $ | 10,133 | |||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 40 | $ | 465 | $ | 5 | $ | — | $ | 510 | |||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 2,636 | $ | 5,412 | $ | 1,536 | $ | 39 | $ | 9,623 | |||||||||||||||||||||||
The table above excludes ending balance of loans acquired with deteriorated quality of $2,489,000 with no allowance at September 30, 2013. | |||||||||||||||||||||||||||||||||
The following table shows the ending balances of loans as of September 30, 2013 and December 31, 2012 by portfolio segment and by impairment methodology. These include loans acquired at fair value at July 1, 2013 with outstanding balances of $108 million as of September 30, 2013 (in thousands): | |||||||||||||||||||||||||||||||||
Commercial | Real Estate | Consumer | Total | ||||||||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||
Ending balance, September 30, 2013 | $ | 133,661 | $ | 319,738 | $ | 62,070 | $ | 515,469 | |||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 1,649 | $ | 9,858 | $ | 2,510 | $ | 14,017 | |||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 132,012 | $ | 309,880 | $ | 59,560 | $ | 501,452 | |||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||
Ending balance, December 31, 2012 | $ | 104,555 | $ | 237,938 | $ | 53,278 | $ | 395,771 | |||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 2,405 | $ | 12,868 | $ | 1,832 | $ | 17,105 | |||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 102,150 | $ | 225,070 | $ | 51,446 | $ | 378,666 | |||||||||||||||||||||||||
The following table shows the loan portfolio by class allocated by management’s internal risk ratings at September 30, 2013 (in thousands): | |||||||||||||||||||||||||||||||||
Pass | Special Mention | Sub-Standard | Doubtful | Total | |||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 83,958 | $ | 2,626 | $ | 3,407 | $ | — | $ | 89,991 | |||||||||||||||||||||||
Agricultural land and production | 43,670 | — | — | — | 43,670 | ||||||||||||||||||||||||||||
Real Estate: | |||||||||||||||||||||||||||||||||
Owner occupied | 142,344 | 5,294 | 7,533 | — | 155,171 | ||||||||||||||||||||||||||||
Real estate construction and other land loans | 25,642 | 2,405 | 7,280 | — | 35,327 | ||||||||||||||||||||||||||||
Commercial real estate | 76,661 | 3,745 | 5,051 | — | 85,457 | ||||||||||||||||||||||||||||
Agricultural real estate | 37,856 | 2,001 | — | — | 39,857 | ||||||||||||||||||||||||||||
Other real estate | 3,926 | — | — | — | 3,926 | ||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Equity loans and lines of credit | 44,508 | 2,465 | 4,320 | — | 51,293 | ||||||||||||||||||||||||||||
Consumer and installment | 10,698 | 52 | 27 | — | 10,777 | ||||||||||||||||||||||||||||
Total | $ | 469,263 | $ | 18,588 | $ | 27,618 | $ | — | $ | 515,469 | |||||||||||||||||||||||
The following table shows the loan portfolio by class allocated by management’s internally assigned risk grade ratings at December 31, 2012 (in thousands): | |||||||||||||||||||||||||||||||||
Pass | Special Mention | Sub-Standard | Doubtful | Total | |||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 71,125 | $ | 824 | $ | 6,007 | $ | — | $ | 77,956 | |||||||||||||||||||||||
Agricultural land and production | 26,599 | — | — | — | 26,599 | ||||||||||||||||||||||||||||
Real Estate: | |||||||||||||||||||||||||||||||||
Owner occupied | 107,281 | 1,831 | 5,332 | — | 114,444 | ||||||||||||||||||||||||||||
Real estate construction and other land loans | 18,517 | 3,377 | 11,305 | — | 33,199 | ||||||||||||||||||||||||||||
Commercial real estate | 44,880 | 3,952 | 4,965 | — | 53,797 | ||||||||||||||||||||||||||||
Agricultural real estate | 26,883 | 1,517 | — | — | 28,400 | ||||||||||||||||||||||||||||
Other real estate | 8,098 | — | — | — | 8,098 | ||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Equity loans and lines of credit | 40,527 | 258 | 2,147 | — | 42,932 | ||||||||||||||||||||||||||||
Consumer and installment | 10,259 | 77 | 10 | — | 10,346 | ||||||||||||||||||||||||||||
Total | $ | 354,169 | $ | 11,836 | $ | 29,766 | $ | — | $ | 395,771 | |||||||||||||||||||||||
The following table shows an aging analysis of the loan portfolio by class and the time past due at September 30, 2013 (in thousands): | |||||||||||||||||||||||||||||||||
30-59 Days | 60-89 | Greater | Total Past | Current | Total | Recorded | Non-accrual | ||||||||||||||||||||||||||
Past Due | Days Past | Than | Due | Loans | Investment | ||||||||||||||||||||||||||||
Due | 90 Days | > 90 Days | |||||||||||||||||||||||||||||||
Past Due | Accruing | ||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 1,497 | $ | — | $ | 78 | $ | 1,575 | $ | 88,416 | $ | 89,991 | $ | — | $ | 1,649 | |||||||||||||||||
Agricultural land and production | — | — | — | — | 43,670 | 43,670 | — | — | |||||||||||||||||||||||||
Real estate: | — | — | — | — | |||||||||||||||||||||||||||||
Owner occupied | 555 | — | 229 | 784 | 154,387 | 155,171 | — | 2,198 | |||||||||||||||||||||||||
Real estate construction and other land loans | — | — | — | — | 35,327 | 35,327 | — | 1,499 | |||||||||||||||||||||||||
Commercial real estate | — | — | — | — | 85,457 | 85,457 | — | 167 | |||||||||||||||||||||||||
Agricultural real estate | — | — | — | — | 39,857 | 39,857 | — | — | |||||||||||||||||||||||||
Other real estate | — | — | — | — | 3,926 | 3,926 | — | — | |||||||||||||||||||||||||
Consumer: | — | — | — | ||||||||||||||||||||||||||||||
Equity loans and lines of credit | 424 | 59 | 505 | 988 | 50,305 | 51,293 | — | 2,497 | |||||||||||||||||||||||||
Consumer and installment | 57 | — | — | 57 | 10,720 | 10,777 | — | 12 | |||||||||||||||||||||||||
Total | $ | 2,533 | $ | 59 | $ | 812 | $ | 3,404 | $ | 512,065 | $ | 515,469 | $ | — | $ | 8,022 | |||||||||||||||||
The following table shows an aging analysis of the loan portfolio by class and the time past due at December 31, 2012 (in thousands): | |||||||||||||||||||||||||||||||||
30-59 Days | 60-89 | Greater | Total Past | Current | Total | Recorded | Non- | ||||||||||||||||||||||||||
Past Due | Days Past | Than | Due | Loans | Investment | accrual | |||||||||||||||||||||||||||
Due | 90 Days | > 90 Days | |||||||||||||||||||||||||||||||
Past Due | Accruing | ||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial and industrial | $ | — | $ | — | $ | — | $ | — | $ | 77,956 | $ | 77,956 | $ | — | $ | — | |||||||||||||||||
Agricultural land and production | — | — | — | — | 26,599 | 26,599 | — | — | |||||||||||||||||||||||||
Real estate: | — | ||||||||||||||||||||||||||||||||
Owner occupied | — | 213 | — | 213 | 114,231 | 114,444 | — | 1,575 | |||||||||||||||||||||||||
Real estate construction and other land loans | — | — | — | — | 33,199 | 33,199 | — | 6,288 | |||||||||||||||||||||||||
Commercial real estate | — | — | — | — | 53,797 | 53,797 | — | — | |||||||||||||||||||||||||
Agricultural real estate | — | — | — | — | 28,400 | 28,400 | — | — | |||||||||||||||||||||||||
Other real estate | — | — | — | — | 8,098 | 8,098 | — | — | |||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Equity loans and lines of credit | — | — | — | — | 42,932 | 42,932 | — | 1,832 | |||||||||||||||||||||||||
Consumer and installment | 27 | — | — | 27 | 10,319 | 10,346 | — | — | |||||||||||||||||||||||||
Total | $ | 27 | $ | 213 | $ | — | $ | 240 | $ | 395,531 | $ | 395,771 | $ | — | $ | 9,695 | |||||||||||||||||
The following table shows information related to impaired loans by class at September 30, 2013 (in thousands): | |||||||||||||||||||||||||||||||||
Recorded | Unpaid | Related | |||||||||||||||||||||||||||||||
Investment | Principal | Allowance | |||||||||||||||||||||||||||||||
Balance | |||||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 393 | $ | 423 | $ | — | |||||||||||||||||||||||||||
Agricultural land and production | — | — | — | ||||||||||||||||||||||||||||||
Total commercial | 393 | 423 | — | ||||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||||
Owner occupied | 1,804 | 2,643 | — | ||||||||||||||||||||||||||||||
Real estate construction and other land loans | 5,227 | 5,431 | — | ||||||||||||||||||||||||||||||
Commercial real estate | 167 | 549 | — | ||||||||||||||||||||||||||||||
Agricultural real estate | — | — | — | ||||||||||||||||||||||||||||||
Other real estate | — | — | — | ||||||||||||||||||||||||||||||
Total real estate | 7,198 | 8,623 | — | ||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Equity loans and lines of credit | 1,926 | 2,691 | — | ||||||||||||||||||||||||||||||
Consumer and installment | 12 | 15 | — | ||||||||||||||||||||||||||||||
Total consumer | 1,938 | 2,706 | — | ||||||||||||||||||||||||||||||
Total with no related allowance recorded | 9,529 | 11,752 | — | ||||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial and industrial | 1,256 | 1,284 | 632 | ||||||||||||||||||||||||||||||
Agricultural land and production | — | — | — | ||||||||||||||||||||||||||||||
Total commercial | 1,256 | 1,284 | 632 | ||||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||||
Owner occupied | 1,790 | 1,963 | 49 | ||||||||||||||||||||||||||||||
Real estate construction and other land loans | 870 | 1,315 | 165 | ||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | ||||||||||||||||||||||||||||||
Agricultural real estate | — | — | — | ||||||||||||||||||||||||||||||
Other real estate | — | — | — | ||||||||||||||||||||||||||||||
Total real estate | 2,660 | 3,278 | 214 | ||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Equity loans and lines of credit | 572 | 578 | 235 | ||||||||||||||||||||||||||||||
Consumer and installment | — | — | — | ||||||||||||||||||||||||||||||
Total consumer | 572 | 578 | 235 | ||||||||||||||||||||||||||||||
Total with an allowance recorded | 4,488 | 5,140 | 1,081 | ||||||||||||||||||||||||||||||
Total | $ | 14,017 | $ | 16,892 | $ | 1,081 | |||||||||||||||||||||||||||
The recorded investment in loans excludes accrued interest receivable and net loan origination fees, due to immateriality. | |||||||||||||||||||||||||||||||||
The following table shows information related to impaired loans by class at December 31, 2012 (in thousands): | |||||||||||||||||||||||||||||||||
Recorded | Unpaid | Related | |||||||||||||||||||||||||||||||
Investment | Principal | Allowance | |||||||||||||||||||||||||||||||
Balance | |||||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial and industrial | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||
Agricultural land and production | — | — | — | ||||||||||||||||||||||||||||||
Total commercial | — | — | — | ||||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||||
Owner occupied | — | — | — | ||||||||||||||||||||||||||||||
Real estate construction and other land loans | 1,352 | 1,888 | — | ||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | ||||||||||||||||||||||||||||||
Agricultural real estate | — | — | — | ||||||||||||||||||||||||||||||
Other real estate | — | — | — | ||||||||||||||||||||||||||||||
Total real estate | 1,352 | 1,888 | — | ||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Equity loans and lines of credit | 1,523 | 1,834 | — | ||||||||||||||||||||||||||||||
Consumer and installment | — | — | — | ||||||||||||||||||||||||||||||
Total consumer | 1,523 | 1,834 | — | ||||||||||||||||||||||||||||||
Total with no related allowance recorded | 2,875 | 3,722 | — | ||||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial and industrial | 2,405 | 2,405 | 40 | ||||||||||||||||||||||||||||||
Agricultural land and production | — | — | — | ||||||||||||||||||||||||||||||
Total commercial | 2,405 | 2,405 | 40 | ||||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||||
Owner occupied | 1,575 | 1,733 | 165 | ||||||||||||||||||||||||||||||
Real estate construction and other land loans | 9,941 | 10,875 | 300 | ||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | ||||||||||||||||||||||||||||||
Agricultural real estate | — | — | — | ||||||||||||||||||||||||||||||
Other real estate | — | — | — | ||||||||||||||||||||||||||||||
Total real estate | 11,516 | 12,608 | 465 | ||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Equity loans and lines of credit | 309 | 323 | 5 | ||||||||||||||||||||||||||||||
Consumer and installment | — | — | — | ||||||||||||||||||||||||||||||
Total consumer | 309 | 323 | 5 | ||||||||||||||||||||||||||||||
Total with an allowance recorded | 14,230 | 15,336 | 510 | ||||||||||||||||||||||||||||||
Total | $ | 17,105 | $ | 19,058 | $ | 510 | |||||||||||||||||||||||||||
The recorded investment in loans excludes accrued interest receivable and net loan origination fees, due to immateriality. | |||||||||||||||||||||||||||||||||
The following presents by class, information related to the average recorded investment and interest income recognized on impaired loans for the three months ended September 30, 2013 and 2012. | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | Three Months Ended September 30, 2012 | ||||||||||||||||||||||||||||||||
Average | Interest | Average | Interest | ||||||||||||||||||||||||||||||
Recorded | Income | Recorded | Income | ||||||||||||||||||||||||||||||
Investment | Recognized | Investment | Recognized | ||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 412 | $ | — | $ | 600 | $ | — | |||||||||||||||||||||||||
Agricultural land and production | — | — | — | — | |||||||||||||||||||||||||||||
Total commercial | 412 | — | 600 | — | |||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||||
Owner occupied | 2,196 | — | 992 | — | |||||||||||||||||||||||||||||
Real estate construction and other land loans | 2,172 | — | 4,778 | — | |||||||||||||||||||||||||||||
Commercial real estate | 332 | — | — | — | |||||||||||||||||||||||||||||
Agricultural real estate | — | — | — | — | |||||||||||||||||||||||||||||
Other real estate | — | — | — | — | |||||||||||||||||||||||||||||
Total real estate | 4,700 | — | 5,770 | — | |||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Equity loans and lines of credit | 2,057 | — | 1,615 | — | |||||||||||||||||||||||||||||
Consumer and installment | 14 | — | — | — | |||||||||||||||||||||||||||||
Total consumer | 2,071 | — | 1,615 | — | |||||||||||||||||||||||||||||
Total with no related allowance recorded | 7,183 | — | 7,985 | — | |||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial and industrial | 1,271 | 15 | 1,849 | 50 | |||||||||||||||||||||||||||||
Agricultural land and production | — | — | — | — | |||||||||||||||||||||||||||||
Total commercial | 1,271 | 15 | 1,849 | 50 | |||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||||
Owner occupied | 1,471 | 35 | 646 | — | |||||||||||||||||||||||||||||
Real estate construction and other land loans | 4,049 | 85 | 6,833 | 92 | |||||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | |||||||||||||||||||||||||||||
Agricultural real estate | — | — | — | — | |||||||||||||||||||||||||||||
Other real estate | — | — | — | — | |||||||||||||||||||||||||||||
Total real estate | 5,520 | 120 | 7,479 | 92 | |||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Equity loans and lines of credit | 571 | — | 289 | — | |||||||||||||||||||||||||||||
Consumer and installment | — | — | 23 | — | |||||||||||||||||||||||||||||
Total consumer | 571 | — | 312 | — | |||||||||||||||||||||||||||||
Total with an allowance recorded | 7,362 | 135 | 9,640 | 142 | |||||||||||||||||||||||||||||
Total | $ | 14,545 | $ | 135 | $ | 17,625 | $ | 142 | |||||||||||||||||||||||||
The following presents by class, information related to the average recorded investment and interest income recognized on impaired loans for the nine months ended September 30, 2013 and 2012 (in thousands): | |||||||||||||||||||||||||||||||||
Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||||||||||||||||||||||
Average | Interest | Average | Interest | ||||||||||||||||||||||||||||||
Recorded | Income | Recorded | Income | ||||||||||||||||||||||||||||||
Investment | Recognized | Investment | Recognized | ||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 309 | $ | — | $ | 1,235 | $ | — | |||||||||||||||||||||||||
Agricultural land and production | — | — | — | — | |||||||||||||||||||||||||||||
Total commercial | 309 | — | 1,235 | — | |||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||||
Owner occupied | 1,681 | — | 747 | — | |||||||||||||||||||||||||||||
Real estate construction and other land loans | 3,001 | — | 5,551 | — | |||||||||||||||||||||||||||||
Commercial real estate | 282 | — | 200 | — | |||||||||||||||||||||||||||||
Agricultural real estate | — | — | — | — | |||||||||||||||||||||||||||||
Other real estate | — | — | — | — | |||||||||||||||||||||||||||||
Total real estate | 4,964 | — | 6,498 | — | |||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Equity loans and lines of credit | 1,966 | — | 1,566 | — | |||||||||||||||||||||||||||||
Consumer and installment | 10 | — | — | — | |||||||||||||||||||||||||||||
Total consumer | 1,976 | — | 1,566 | — | |||||||||||||||||||||||||||||
Total with no related allowance recorded | 7,249 | — | 9,299 | — | |||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial and industrial | 1,404 | 80 | 1,624 | 178 | |||||||||||||||||||||||||||||
Agricultural land and production | — | — | — | — | |||||||||||||||||||||||||||||
Total commercial | 1,404 | 80 | 1,624 | 178 | |||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||||
Owner occupied | 1,454 | 65 | 662 | — | |||||||||||||||||||||||||||||
Real estate construction and other land loans | 4,440 | 255 | 6,387 | 285 | |||||||||||||||||||||||||||||
Commercial real estate | — | — | 193 | — | |||||||||||||||||||||||||||||
Agricultural real estate | — | — | — | — | |||||||||||||||||||||||||||||
Other real estate | — | — | — | — | |||||||||||||||||||||||||||||
Total real estate | 5,894 | 320 | 7,242 | 285 | |||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Equity loans and lines of credit | 465 | — | 543 | — | |||||||||||||||||||||||||||||
Consumer and installment | — | — | 48 | — | |||||||||||||||||||||||||||||
Total consumer | 465 | — | 591 | — | |||||||||||||||||||||||||||||
Total with an allowance recorded | 7,763 | 400 | 9,457 | 463 | |||||||||||||||||||||||||||||
Total | $ | 15,012 | $ | 400 | $ | 18,756 | $ | 463 | |||||||||||||||||||||||||
Foregone interest on nonaccrual loans totaled $523,000 and $525,000 for the nine month periods ended September 30, 2013 and 2012, respectively. For the three month periods ended September 30, 2013 and 2012, foregone interest on nonaccrual loans totaled $145,000 and $181,000 respectively. | |||||||||||||||||||||||||||||||||
Troubled Debt Restructurings: | |||||||||||||||||||||||||||||||||
As of September 30, 2013 and 2012, the Company has a recorded investment in troubled debt restructurings of $10,766,000 and $17,036,000, respectively. The Company has allocated $865,000 of specific reserves to loans whose terms have been modified in troubled debt restructurings as of September 30, 2013. The Company has committed to lend no additional amounts as of September 30, 2013 to customers with outstanding loans that are classified as troubled debt restructurings. | |||||||||||||||||||||||||||||||||
During the three month periods ended September 30, 2013 and 2012 no loans were modified as troubled debt restructurings. | |||||||||||||||||||||||||||||||||
During the nine month period ended September 30, 2013 no loans were modified as troubled debt restructurings. The following table presents loans by class modified as troubled debt restructurings that occurred during the nine months ended September 30, 2012 (dollars in thousands): | |||||||||||||||||||||||||||||||||
Troubled Debt Restructurings: | Number of Loans | Pre-Modification Outstanding Recorded Investment (1) | Principal Modification (2) | Post Modification Outstanding Recorded Investment (3) | Outstanding Recorded Investment | ||||||||||||||||||||||||||||
Real Estate - Owner occupied | 2 | $ | 500 | $ | — | $ | 500 | $ | 493 | ||||||||||||||||||||||||
-1 | Amounts represent the recorded investment in loans before recognizing effects of the TDR, if any. | ||||||||||||||||||||||||||||||||
-2 | Principal Modification includes principal forgiveness at the time of modification, contingent principal forgiveness granted over the life of the loan based on borrower performance, and principal that has been legally separated and deferred to the end of the loan, with zero percent contractual interest rate. | ||||||||||||||||||||||||||||||||
-3 | Balance outstanding after principal modification, if any borrower reduction to recorded investment. | ||||||||||||||||||||||||||||||||
A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. There were no defaults on troubled debt restructurings, within twelve months following the modification, during the three and nine months ended September 30, 2013 and September 30, 2012. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||
Goodwill and Intangible Assets | ' | |||
Goodwill and Intangible Assets | ||||
Business combinations involving the Company’s acquisition of the equity interests or net assets of another enterprise give rise to goodwill. Total goodwill at September 30, 2013 was $29,776,000 consisting of $14,643,000, $8,934,000, and $6,199,000 representing the excess of the cost of Service 1st Bancorp, Bank of Madera County, and Visalia Community Bank, respectively, over the net amounts assigned to assets acquired and liabilities assumed in the transactions accounted for under the purchase method of accounting. The value of goodwill is ultimately derived from the Company’s ability to generate net earnings after the acquisitions and is not deductible for tax purposes. A decline in net earnings could be indicative of a decline in the fair value of goodwill and result in impairment. For that reason, goodwill is assessed at least annually for impairment. | ||||
The Company has selected September 30 as the date to perform the annual impairment test. Management assessed qualitative factors including performance trends and noted no factors indicating goodwill impairment. | ||||
Goodwill is also tested for impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the Company below its carrying amount. No such events or circumstances arose during the first nine months of 2013. | ||||
The intangible assets at September 30, 2013 represent the estimated fair value of the core deposit relationships acquired in the 2013 acquisition of Visalia Community Bank of $1,365,000, and Service 1st Bancorp in 2008 of $1,400,000. Core deposit intangibles are being amortized by the straight-line method (which approximates the effective interest method) over an estimated life of seven to ten years from the date of acquisition. The carrying value of intangible assets at September 30, 2013 was $1,764,000 net of $1,001,000 in accumulated amortization expense. Management evaluates the remaining useful lives quarterly to determine whether events or circumstances warrant a revision to the remaining periods of amortization. Based on the evaluation, no changes to the remaining useful lives was required in the third quarter of 2013. Management performed an annual impairment test on core deposit intangibles as of September 30, 2013 and determined no impairment was necessary. Amortization expense recognized was $184,000 and$150,000 for the nine month periods ended September 30, 2013 and 2012, respectively. Amortization expense recognized was $84,000 and $50,000 for the three month periods ended September 30, 2013 and 2012, respectively. | ||||
The following table summarizes the Company's estimated core deposit intangible amortization expense for each of the next five years: | ||||
Estimated Core Deposit | ||||
Years Ended | Intangible Amortization | |||
2013 | $ | 84,125 | ||
2014 | 336,500 | |||
2015 | 319,833 | |||
2016 | 136,500 | |||
2017 | 136,500 | |||
Thereafter | 750,750 | |||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
In the normal course of business, the Company is a party to financial instruments with off-balance sheet risk. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheets. The contract or notional amounts of these instruments reflect the extent of involvement the Company has in particular classes of financial instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for loans. | |
Commitments to extend credit amounting to $173,886,000 and $162,851,000 were outstanding at September 30, 2013 and December 31, 2012, respectively. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract unless waived by the bank. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. | |
Included in commitments to extend credit are undisbursed lines of credit totaling $172,291,000 and $162,261,000 at September 30, 2013 and December 31, 2012, respectively. Undisbursed lines of credit are revolving lines of credit whereby customers can repay principal and request principal advances during the term of the loan at their discretion and most expire between one and 12 months. | |
Included in undisbursed lines of credit are commitments for the undisbursed portions of construction loans totaling $20,738,000 and $6,834,000 as of September 30, 2013 and December 31, 2012, respectively. These commitments are agreements to lend to customers, subject to meeting certain construction progress requirements established in the contracts. The underlying construction loans have fixed expiration dates. | |
Standby letters of credit and financial guarantees amounting to $1,595,000 and $590,000 were outstanding at September 30, 2013 and December 31, 2012, respectively. Standby letters of credit and financial guarantees are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support private borrowing arrangements. Most standby letters of credit and guarantees carry a one year term or less. The fair value of the liability related to these standby letters of credit, which represents the fees received for their issuance, was not significant at September 30, 2013 and December 31, 2012. The Company recognizes these fees as revenue over the term of the commitment or when the commitment is used. | |
The Company generally requires collateral or other security to support financial instruments with credit risk. Management does not anticipate any material loss will result from the outstanding commitments to extend credit, standby letters of credit and financial guarantees. At September 30, 2013 and December 31, 2012, the balance of a contingent allocation for probable loan loss experience on unfunded obligations was $115,000. The contingent allocation for probable loan loss experience on unfunded obligations is calculated by management using an appropriate, systematic, and consistently applied process. While related to credit losses, this allocation is not a part of the allowance for credit losses and is considered separately as a liability for accounting and regulatory reporting purposes. | |
The Company is subject to legal proceedings and claims which arise in the ordinary course of business. In the opinion of management, the amount of ultimate liability with respect to such actions will not materially affect the consolidated financial position or consolidated results of operations of the Company. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
The Company files its income taxes on a consolidated basis with its subsidiary. The allocation of income tax expense (benefit) represents each entity’s proportionate share of the consolidated provision for income taxes. Deferred tax assets and liabilities are recognized for the tax consequences of temporary differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. On the consolidated balance sheets, net deferred tax assets are included in accrued interest receivable and other assets. The Company establishes a tax valuation allowance when it is more likely than not that a recorded tax benefit is not expected to be fully realized. The expense to create the tax valuation allowance is recorded as an additional income tax expense in the period the tax valuation allowance is created. Based on management’s analysis as of September 30, 2013, the Company maintained a deferred tax valuation allowance of $107,000 related to California capital loss carryforwards. | |
Accounting for uncertainty in income taxes - The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as a component of tax expense in the consolidated statements of income. During the nine months ended September 30, 2013 and 2012, the Company (decreased) increased its reserve by $(141,000) and $47,000, respectively, for uncertain tax positions attributable to tax credits and deductions related to enterprise zone activities in California. The Franchise Tax Board concluded the tax examination of Company's 2008, 2009, and 2010 tax filings during the quarter ending September 30, 2013. Upon completion of the examination, the Company accordingly reversed the reserve for those tax years The Company does not expect the total amount of unrecognized tax benefits to significantly increase or decrease in the next twelve months. |
Borrowing_Arrangements
Borrowing Arrangements | 9 Months Ended |
Sep. 30, 2013 | |
Banking and Thrift [Abstract] | ' |
Borrowing Arrangements | ' |
Borrowing Arrangements | |
As of September 30, 2013, the Company had no Federal Home Loan Bank (FHLB) of San Francisco advances. At December 31, 2012, the Company held $4,000,000 in short term FHLB advances with a rate of 3.59% and a maturity date of February 12, 2013. | |
FHLB advances are secured under the standard credit and securities-backed credit programs. Investment securities with amortized costs totaling $4,316,000 and $4,016,000, and market values totaling $4,443,000 and $4,225,000 at September 30, 2013 and December 31, 2012, respectively, were pledged under the securities-backed credit program. The Bank’s credit limit varies according to the amount and composition of the investment and loan portfolios pledged as collateral. | |
As of September 30, 2013 and December 31, 2012, the Company had no Federal funds purchased. |
Acquisition_of_Visalia_Communi
Acquisition of Visalia Community Bank | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Business Combinations [Abstract] | ' | |||||||||
Acquisition of Visalia Community Bank | ' | |||||||||
Acquisition of Visalia Community Bank | ||||||||||
Effective July 1, 2013, the Company acquired Visalia Community Bank, headquartered in Visalia, California, wherein Visalia Community Bank, with three full-service offices in Visalia and one in Exeter, merged with and into Central Valley Community Bancorp’s subsidiary, Central Valley Community Bank, in a combined cash and stock transaction. Visalia Community Bank’s assets (unaudited) as of July 1, 2013 totaled approximately $197 million. The acquired assets and liabilities were recorded at fair value at the date of acquisition and are reflected in the September 30, 2013 financial statements as such. | ||||||||||
Under the terms of the merger agreement, the Company issued an aggregate of approximately 1.263 million shares of its common stock and cash totaling approximately $11.05 million to the former shareholders of Visalia Community Bank. Each Visalia Community Bank common shareholder of record at the effective time of the merger became entitled to receive 2.971 shares of common stock of the Company for each of their former shares of Visalia Community Bank common stock. | ||||||||||
In accordance with GAAP guidance for business combinations, the Company recorded $6.2 million of goodwill and $1.4 million of other intangible assets during the quarter ending September 30, 2013. The other intangible assets are primarily related to core deposits and are being amortized using a straight-line method over a period of ten years with no significant residual value. For tax purposes purchase accounting adjustments, including goodwill are all non-taxable and/or non-deductible. | ||||||||||
The acquisition was consistent with the Company’s strategy to build a regional presence in Central California. The acquisition offers the Company the opportunity to increase profitability by introducing existing products and services to the acquired customer base as well as add new customers in the expanded region. | ||||||||||
The following table summarizes the consideration paid for Visalia Community Bank and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date: | ||||||||||
Merger consideration: | ||||||||||
Cash | $ | 11,050,000 | ||||||||
Common stock issued | 12,494,000 | |||||||||
Fair Value of Total Consideration Transferred | $ | 23,544,000 | ||||||||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||||||||
Cash and cash equivalents | $ | 51,779,000 | ||||||||
Loans, net | 113,467,000 | |||||||||
Investments | 14,818,000 | |||||||||
Core deposit intangible | 1,365,000 | |||||||||
Premises and equipment | 4,263,000 | |||||||||
Federal Home Loan Bank stock | 698,000 | |||||||||
Other real estate owned | 263,000 | |||||||||
Deferred taxes and taxes receivable | 3,051,000 | |||||||||
Bank owned life insurance | 6,786,000 | |||||||||
Other assets | 796,000 | |||||||||
Total assets acquired | 197,286,000 | |||||||||
Deposits | 174,206,000 | |||||||||
Other liabilities | 5,735,000 | |||||||||
Total liabilities assumed | 179,941,000 | |||||||||
Total identifiable net assets | 17,345,000 | |||||||||
Goodwill | $ | 6,199,000 | ||||||||
Prior to the end of the one year measurement period for finalizing the purchase price allocation, if information becomes available which would indicate adjustments are required to the purchase price allocation, such adjustments will be included in the purchase price allocation retrospectively. | ||||||||||
The fair value of net assets acquired includes fair value adjustments to certain receivables that were not considered impaired as of the acquisition date. The fair value adjustments were determined using discounted contractual cash flows. However, the Company believes that all contractual cash flows related to these financial instruments will be collected. As such, these receivables were not considered impaired at the acquisition date and were not subject to the guidance relating to purchased credit impaired loans, which have shown evidence of credit deterioration since origination. Receivables acquired that were not subject to these requirements include non-impaired loans and customer receivables with a fair value and gross contractual amounts receivable of $110,890,000 and $113,743,000, respectively, on the date of acquisition. | ||||||||||
Pro Forma Results of Operations | ||||||||||
The following table presents pro forma results of operations information for the periods presented as if the acquisition had occurred on January 1, 2012 after giving effect to certain adjustments. The pro forma results of operations for the nine months ended September 30, 2013 and 2012 include the historical accounts of the Company and Visalia Community Bank and pro forma adjustments as may be required, including the amortization of intangibles with definite lives and the amortization or accretion of any premiums or discounts arising from fair value adjustments for assets acquired and liabilities assumed. The pro forma information is intended for informational purposes only and is not necessarily indicative of the Company’s future operating results or operating results that would have occurred had the acquisition been completed at the beginning of 2012. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, expense efficiencies or asset dispositions. | ||||||||||
Pro Forma Results of Operations | For the Nine Months Ended September 30, | |||||||||
(In thousands, except per share amounts) | 2013 | 2012 | ||||||||
Net interest income | $ | 27,581 | $ | 28,027 | ||||||
Provision for credit losses | 298 | 1,185 | ||||||||
Non-interest income | 6,611 | 7,025 | ||||||||
Non-interest expense | 28,619 | 26,332 | ||||||||
Income before provision for income taxes | 5,275 | 7,535 | ||||||||
Provision for income taxes | 375 | 1,542 | ||||||||
Net income | $ | 4,900 | $ | 5,993 | ||||||
Basic earnings per share | $ | 0.46 | $ | 0.53 | ||||||
Diluted earnings per share | $ | 0.46 | $ | 0.53 | ||||||
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of Accounting, Policy | ' |
The interim unaudited consolidated financial statements of Central Valley Community Bancorp and subsidiary have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC). These interim consolidated financial statements include the accounts of Central Valley Community Bancorp and its wholly owned subsidiary Central Valley Community Bank (the Bank) (collectively, the Company). All significant intercompany accounts and transactions have been eliminated in consolidation. As discussed in Note 12, on July 1, 2013, the Company completed an acquisition under which Visalia Community Bank merged with and into Central Valley Community Bancorp’s subsidiary, Central Valley Community Bank. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been omitted. The Company believes that the disclosures are adequate to make the information presented not misleading. These interim consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s 2012 Annual Report to Shareholders on Form 10-K. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the Company’s financial position at September 30, 2013, and the results of its operations and its cash flows for the three and nine month interim periods ended September 30, 2013 and 2012 have been included. Certain reclassifications have been made to prior year amounts to conform to the 2013 presentation. Reclassifications had no effect on prior period net income or shareholders’ equity. The results of operations for interim periods are not necessarily indicative of results for the full year. | |
The preparation of these consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Segment Reporting, Policy | ' |
Management has determined that since all of the banking products and services offered by the Company are available in each branch of the Bank, all branches are located within the same economic environment, and management does not allocate resources based on the performance of different lending or transaction activities, it is appropriate to aggregate the Bank branches and report them as a single operating segment. | |
Concentration Risk, Credit Risk, Policy | ' |
No customer accounts for more than 10 percent of revenues for the Company or the Bank. | |
New Accounting Pronouncements, Policy | ' |
Presentation of Comprehensive Income | |
In February 2013, the FASB issued ASU 2013-02, Comprehensive Income (“Topic 220”) - Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“ASU 2013-02”). This ASU requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under GAAP that provide additional detail about those amounts. ASU 2013-02 is effective prospectively for annual and interim periods beginning after December 15, 2012. The Company adopted this standard on January 1, 2013. The adoption of this ASU did not have a material impact on the Company’s financial position, results of operations, or cash flows. |
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Stock option activity | ' | |||||||||||||
A summary of the combined activity of the Company’s Stock Based Compensation Plans for the nine month period ended September 30, 2013 follows: | ||||||||||||||
Shares | Weighted | Weighted | Aggregate | |||||||||||
Average | Average | Intrinsic Value (In thousands) | ||||||||||||
Exercise Price | Remaining | |||||||||||||
Contractual | ||||||||||||||
Term (Years) | ||||||||||||||
Options outstanding at January 1, 2013 | 499,289 | $ | 8.78 | |||||||||||
Options exercised | (92,199 | ) | $ | 8.48 | ||||||||||
Options forfeited | (25,470 | ) | $ | 9.15 | ||||||||||
Options outstanding at September 30, 2013 | 381,620 | $ | 8.82 | 4.96 | $ | 889 | ||||||||
Options vested or expected to vest at September 30, 2013 | 376,118 | $ | 8.83 | 4.91 | $ | 874 | ||||||||
Options exercisable at September 30, 2013 | 278,820 | $ | 9.38 | 3.74 | $ | 597 | ||||||||
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 | ' | ||||||||||||||||
A reconciliation of the numerators and denominators of the basic and diluted EPS computations is as follows: | |||||||||||||||||
Basic Earnings Per Share | For the Three Months | For the Nine Months Ended September 30, | |||||||||||||||
Ended September 30, | |||||||||||||||||
(In thousands, except share and per share amounts) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Net Income | $ | 2,969 | $ | 2,456 | $ | 6,039 | $ | 5,878 | |||||||||
Less: Preferred stock dividends and accretion | (87 | ) | (87 | ) | (262 | ) | (262 | ) | |||||||||
Income available to common shareholders | $ | 2,882 | $ | 2,369 | $ | 5,777 | $ | 5,616 | |||||||||
Weighted average shares outstanding | 10,899,086 | 9,602,473 | 10,020,057 | 9,588,321 | |||||||||||||
Basic earnings per share | $ | 0.26 | $ | 0.25 | $ | 0.58 | $ | 0.59 | |||||||||
Diluted Earnings Per Share | For the Three Months | For the Nine Months Ended September 30, | |||||||||||||||
Ended September 30, | |||||||||||||||||
(In thousands, except share and per share amounts) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Net Income | $ | 2,969 | $ | 2,456 | $ | 6,039 | $ | 5,878 | |||||||||
Less: Preferred stock dividends and accretion | (87 | ) | (87 | ) | (262 | ) | (262 | ) | |||||||||
Income available to common shareholders | $ | 2,882 | $ | 2,369 | $ | 5,777 | $ | 5,616 | |||||||||
Weighted average shares outstanding | 10,899,086 | 9,602,473 | 10,020,057 | 9,588,321 | |||||||||||||
Effect of dilutive stock options | 59,725 | 32,866 | 59,977 | 24,881 | |||||||||||||
Weighted average shares of common stock and common stock equivalents | 10,958,811 | 9,635,339 | 10,080,034 | 9,613,202 | |||||||||||||
Diluted earnings per share | $ | 0.26 | $ | 0.25 | $ | 0.57 | $ | 0.58 | |||||||||
Investments_Tables
Investments (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||||||||||
Available-for-sale securities reconciliation | ' | |||||||||||||||||||||||||||||||
The following table sets forth the carrying values and estimated fair values of our investment securities portfolio at the dates indicated (in thousands): | ||||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Available-for-Sale Securities | Amortized Cost | Gross | Gross | Estimated | ||||||||||||||||||||||||||||
Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||
U.S. Government agencies | $ | 16,410 | $ | 198 | $ | (29 | ) | $ | 16,579 | |||||||||||||||||||||||
Obligations of states and political subdivisions | 186,818 | 4,598 | (6,821 | ) | 184,595 | |||||||||||||||||||||||||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations | 203,728 | 1,295 | (1,662 | ) | 203,361 | |||||||||||||||||||||||||||
Private label residential mortgage backed securities | 4,718 | 954 | — | 5,672 | ||||||||||||||||||||||||||||
Other equity securities | 7,596 | 30 | — | 7,626 | ||||||||||||||||||||||||||||
$ | 419,270 | $ | 7,075 | $ | (8,512 | ) | $ | 417,833 | ||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
Available-for-Sale Securities | Amortized Cost | Gross | Gross | Estimated | ||||||||||||||||||||||||||||
Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||
U.S. Government agencies | $ | 9,443 | $ | 34 | $ | (23 | ) | $ | 9,454 | |||||||||||||||||||||||
Obligations of states and political subdivisions | 151,312 | 10,751 | (385 | ) | 161,678 | |||||||||||||||||||||||||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations | 206,465 | 3,152 | (1,107 | ) | 208,510 | |||||||||||||||||||||||||||
Private label residential mortgage backed securities | 6,258 | 323 | (206 | ) | 6,375 | |||||||||||||||||||||||||||
Other equity securities | 7,596 | 352 | — | 7,948 | ||||||||||||||||||||||||||||
$ | 381,074 | $ | 14,612 | $ | (1,721 | ) | $ | 393,965 | ||||||||||||||||||||||||
Realized gains and losses | ' | |||||||||||||||||||||||||||||||
Proceeds and gross realized gains (losses) from the sales or calls of investment securities for the periods ended September 30, 2013 and 2012 are shown below (in thousands): | ||||||||||||||||||||||||||||||||
For the Three Months | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
Ended September 30, | ||||||||||||||||||||||||||||||||
Available-for-Sale Securities | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||
Proceeds from sales or calls | $ | 1,575 | $ | 31,055 | $ | 37,428 | $ | 38,554 | ||||||||||||||||||||||||
Gross realized gains from sales or calls | — | 1,128 | 1,401 | 1,694 | ||||||||||||||||||||||||||||
Gross realized losses from sales or calls | — | (285 | ) | (268 | ) | (407 | ) | |||||||||||||||||||||||||
Securities in a continuous unrealized loss position | ' | |||||||||||||||||||||||||||||||
Investment securities with unrealized losses as of the dates indicated are summarized and classified according to the duration of the loss period as follows (in thousands): | ||||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||||
Available-for-Sale Securities | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||
U.S. Government agencies | $ | 3,039 | $ | (29 | ) | $ | — | $ | — | $ | 3,039 | $ | (29 | ) | ||||||||||||||||||
Obligations of states and political subdivisions | 101,937 | (6,510 | ) | 2,597 | (311 | ) | 104,534 | (6,821 | ) | |||||||||||||||||||||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations | 83,339 | (1,339 | ) | 21,806 | (323 | ) | 105,145 | (1,662 | ) | |||||||||||||||||||||||
$ | 188,315 | $ | (7,878 | ) | $ | 24,403 | $ | (634 | ) | $ | 212,718 | $ | (8,512 | ) | ||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||||
Available-for-Sale Securities | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||
U.S. Government agencies | $ | 3,590 | $ | (23 | ) | $ | — | $ | — | $ | 3,590 | $ | (23 | ) | ||||||||||||||||||
Obligations of states and political subdivisions | 30,572 | (385 | ) | — | — | 30,572 | (385 | ) | ||||||||||||||||||||||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations | 76,764 | (809 | ) | 18,024 | (298 | ) | 94,788 | (1,107 | ) | |||||||||||||||||||||||
Private label residential mortgage backed securities | — | — | 2,886 | (206 | ) | 2,886 | (206 | ) | ||||||||||||||||||||||||
$ | 110,926 | $ | (1,217 | ) | $ | 20,910 | $ | (504 | ) | $ | 131,836 | $ | (1,721 | ) | ||||||||||||||||||
Summary of credit ratings for below investment grade investments | ' | |||||||||||||||||||||||||||||||
PLRMBS as of September 30, 2013 with credit ratings below investment grade are summarized in the table below (dollars in thousands): | ||||||||||||||||||||||||||||||||
Description | Book | Market Value | Unrealized | Rating | Agency | 12 Month | Projected | Projected | Original | Current | ||||||||||||||||||||||
Value | Gain | Historical | Default | Severity | Purchase | Credit | ||||||||||||||||||||||||||
(Loss) | Prepayment | Rates % | Rates % | Price % | Enhancement | |||||||||||||||||||||||||||
Rates % | % | |||||||||||||||||||||||||||||||
PHHAM | $ | 1,471 | 1,684 | $ | 213 | D | Fitch | 14.18 | 20.07 | 51 | 97.25 | — | ||||||||||||||||||||
CWALT 1 | 515 | 562 | 47 | D | Fitch | 15.68 | 22.85 | 46.29 | 100.73 | — | ||||||||||||||||||||||
CWALT 2 | 219 | 220 | 1 | D | Fitch | 17.67 | 22.34 | 46.93 | 101.38 | (1.55 | ) | |||||||||||||||||||||
FHAMS | 1,296 | 1,713 | 417 | D | Fitch | 15.84 | 20.18 | 40.88 | 95 | (1.16 | ) | |||||||||||||||||||||
BAALT | 2 | 20 | 18 | C | Fitch | 15.01 | 11.47 | 36.58 | 97.24 | 0.92 | ||||||||||||||||||||||
ABFS | 124 | 262 | 138 | D | S&P | 7.41 | 40.1 | 46.75 | 97.46 | — | ||||||||||||||||||||||
CWALT 3 | 50 | 52 | 2 | B1 | Moodys | 24.13 | 10.37 | 43.71 | 94.47 | 11.21 | ||||||||||||||||||||||
CONHE | 36 | 57 | 21 | B | S&P | 3.65 | 8.26 | 46.75 | 86.39 | — | ||||||||||||||||||||||
$ | 3,713 | $ | 4,570 | $ | 857 | |||||||||||||||||||||||||||
Credit losses recorded in earnings | ' | |||||||||||||||||||||||||||||||
The following tables provide a roll forward for the three and nine month periods ended September 30, 2013 and 2012 of investment securities credit losses recorded in earnings. The beginning balance represents the credit loss component for which OTTI occurred on debt securities in prior periods. Additions represent the first time a debt security was credit impaired or when subsequent credit impairments have occurred on securities for which OTTI credit losses have been previously recognized. | ||||||||||||||||||||||||||||||||
For the Three Months | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
Ended September 30, | ||||||||||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||
Beginning balance | $ | 800 | $ | 783 | $ | 783 | $ | 783 | ||||||||||||||||||||||||
Amounts related to credit loss for which an OTTI charge was not previously recognized | — | — | 17 | — | ||||||||||||||||||||||||||||
Increases to the amount related to credit loss for which OTTI was previously recognized | — | — | — | — | ||||||||||||||||||||||||||||
Realized losses for securities sold | — | — | — | — | ||||||||||||||||||||||||||||
Ending balance | $ | 800 | $ | 783 | $ | 800 | $ | 783 | ||||||||||||||||||||||||
Investments by contractual maturity | ' | |||||||||||||||||||||||||||||||
September 30, 2013 | Amortized Cost | Estimated Fair | ||||||||||||||||||||||||||||||
Value | ||||||||||||||||||||||||||||||||
Within one year | $ | 115 | $ | 115 | ||||||||||||||||||||||||||||
After one year through five years | 12,804 | 13,658 | ||||||||||||||||||||||||||||||
After five years through ten years | 24,758 | 25,645 | ||||||||||||||||||||||||||||||
After ten years | 149,141 | 145,177 | ||||||||||||||||||||||||||||||
186,818 | 184,595 | |||||||||||||||||||||||||||||||
Investment securities not due at a single maturity date: | ||||||||||||||||||||||||||||||||
U.S. Government agencies | 16,410 | 16,579 | ||||||||||||||||||||||||||||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations | 203,728 | 203,361 | ||||||||||||||||||||||||||||||
Private label residential mortgage backed securities | 4,718 | 5,672 | ||||||||||||||||||||||||||||||
Other equity securities | 7,596 | 7,626 | ||||||||||||||||||||||||||||||
$ | 419,270 | $ | 417,833 | |||||||||||||||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
Estimated Fair Value of Financial Instruments | ' | ||||||||||||||||||||
The estimated carrying and fair values of the Company’s financial instruments are as follows (in thousands): | |||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||
Carrying | Fair Value | ||||||||||||||||||||
(In thousands) | Amount | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and due from banks | $ | 32,190 | $ | 32,190 | $ | — | $ | — | $ | 32,190 | |||||||||||
Interest-earning deposits in other banks | 49,854 | 49,854 | — | — | 49,854 | ||||||||||||||||
Federal funds sold | 154 | 154 | — | — | 154 | ||||||||||||||||
Available-for-sale investment securities | 417,833 | 7,626 | 410,207 | — | 417,833 | ||||||||||||||||
Loans, net | 505,501 | — | — | 509,109 | 509,109 | ||||||||||||||||
Federal Home Loan Bank stock | 4,499 | N/A | N/A | N/A | N/A | ||||||||||||||||
Accrued interest receivable | 4,901 | 22 | 2,739 | 2,140 | 4,901 | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | 943,789 | 769,903 | 173,397 | — | 943,300 | ||||||||||||||||
Junior subordinated deferrable interest debentures | 5,155 | — | — | 2,603 | 2,603 | ||||||||||||||||
Accrued interest payable | 134 | — | 110 | 24 | 134 | ||||||||||||||||
31-Dec-12 | |||||||||||||||||||||
Carrying | Fair Value | ||||||||||||||||||||
(In thousands) | Amount | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and due from banks | $ | 22,405 | $ | 22,405 | $ | — | $ | — | $ | 22,405 | |||||||||||
Interest-earning deposits in other banks | 30,123 | 30,123 | — | — | 30,123 | ||||||||||||||||
Federal funds sold | 428 | 428 | — | — | 428 | ||||||||||||||||
Available-for-sale investment securities | 393,965 | 7,948 | 386,017 | — | 393,965 | ||||||||||||||||
Loans, net | 385,185 | — | — | 388,834 | 388,834 | ||||||||||||||||
Federal Home Loan Bank stock | 3,850 | N/A | N/A | N/A | N/A | ||||||||||||||||
Accrued interest receivable | 4,267 | 22 | 2,395 | 1,850 | 4,267 | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | 751,432 | 614,556 | 137,401 | — | 751,957 | ||||||||||||||||
Short-term borrowings | 4,000 | — | 4,016 | — | 4,016 | ||||||||||||||||
Junior subordinated deferrable interest debentures | 5,155 | — | — | 2,990 | 2,990 | ||||||||||||||||
Accrued interest payable | 174 | — | 149 | 25 | 174 | ||||||||||||||||
Fair Value of Assets on a Recurring Basis | ' | ||||||||||||||||||||
The Company is required or permitted to record the following assets at fair value on a recurring basis under other accounting pronouncements as of September 30, 2013 (in thousands). | |||||||||||||||||||||
Description | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||
Debt Securities: | |||||||||||||||||||||
U.S. Government agencies | $ | 16,579 | $ | — | $ | 16,579 | $ | — | |||||||||||||
Obligations of states and political subdivisions | 184,595 | — | 184,595 | — | |||||||||||||||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations | 203,361 | — | 203,361 | — | |||||||||||||||||
Private label residential mortgage backed securities | 5,672 | — | 5,672 | — | |||||||||||||||||
Other equity securities | 7,626 | 7,626 | — | — | |||||||||||||||||
Total assets measured at fair value on a recurring basis | $ | 417,833 | $ | 7,626 | $ | 410,207 | $ | — | |||||||||||||
The Company is required or permitted to record the following assets at fair value on a recurring basis under other accounting pronouncements (in thousands). | |||||||||||||||||||||
Description | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||
Debt Securities: | |||||||||||||||||||||
U.S. Government agencies | $ | 9,454 | $ | — | $ | 9,454 | $ | — | |||||||||||||
Obligations of states and political subdivisions | 161,678 | — | 161,678 | — | |||||||||||||||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations | 208,510 | — | 208,510 | — | |||||||||||||||||
Private label residential mortgage backed securities | 6,375 | — | 6,375 | — | |||||||||||||||||
Other equity securities | 7,948 | 7,948 | — | — | |||||||||||||||||
Total assets measured at fair value on a recurring basis | $ | 393,965 | $ | 7,948 | $ | 386,017 | $ | — | |||||||||||||
Fair Value of Assets on a Non-recurring Basis | ' | ||||||||||||||||||||
The Company may be required, from time to time, to measure certain assets and liabilities at fair value on a non-recurring basis. These include assets and liabilities that are measured at the lower of cost or fair value that were recognized at fair value which was below cost at December 31, 2012 (in thousands). | |||||||||||||||||||||
Description | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Impaired loans: | |||||||||||||||||||||
Commercial: | |||||||||||||||||||||
Commercial and industrial | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Agricultural production | — | — | — | — | |||||||||||||||||
Total commercial | — | — | — | — | |||||||||||||||||
Real estate: | |||||||||||||||||||||
Owner occupied | 194 | — | — | 194 | |||||||||||||||||
Real estate-construction and other land loans | 4,863 | — | — | 4,863 | |||||||||||||||||
Commercial real estate | — | — | — | — | |||||||||||||||||
Agricultural real estate | — | — | — | — | |||||||||||||||||
Other | — | — | — | — | |||||||||||||||||
Total real estate | 5,057 | — | — | 5,057 | |||||||||||||||||
Consumer: | |||||||||||||||||||||
Equity loans and lines of credit | 233 | — | — | 233 | |||||||||||||||||
Consumer and installment | — | — | — | — | |||||||||||||||||
Total consumer | 233 | — | — | 233 | |||||||||||||||||
Lease financing receivable | — | — | — | — | |||||||||||||||||
Total impaired loans | 5,290 | — | — | 5,290 | |||||||||||||||||
Other real estate owned | — | — | — | — | |||||||||||||||||
Total assets measured at fair value on a non-recurring basis | $ | 5,290 | $ | — | $ | — | $ | 5,290 | |||||||||||||
The Company may be required, from time to time, to measure certain assets and liabilities at fair value on a non-recurring basis. These include assets and liabilities that are measured at the lower of cost or fair value that were recognized at fair value which was below cost at September 30, 2013 (in thousands). | |||||||||||||||||||||
Description | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Assets: | |||||||||||||||||||||
Impaired loans: | |||||||||||||||||||||
Commercial: | |||||||||||||||||||||
Commercial and industrial | $ | 610 | $ | — | $ | — | $ | 610 | |||||||||||||
Agricultural production | — | — | — | — | |||||||||||||||||
Total commercial | 610 | — | — | 610 | |||||||||||||||||
Real estate: | |||||||||||||||||||||
Owner occupied | — | — | — | — | |||||||||||||||||
Real estate-construction and other land loans | — | — | — | — | |||||||||||||||||
Commercial real estate | — | — | — | — | |||||||||||||||||
Agricultural real estate | — | — | — | — | |||||||||||||||||
Other | — | — | — | — | |||||||||||||||||
Total real estate | — | — | — | — | |||||||||||||||||
Consumer: | |||||||||||||||||||||
Equity loans and lines of credit | 61 | — | — | 61 | |||||||||||||||||
Consumer and installment | — | — | — | — | |||||||||||||||||
Total consumer | 61 | — | — | 61 | |||||||||||||||||
Lease financing receivable | — | — | — | — | |||||||||||||||||
Total impaired loans | 671 | — | — | 671 | |||||||||||||||||
Other real estate owned | — | — | — | — | |||||||||||||||||
Total assets measured at fair value on a non-recurring basis | $ | 671 | $ | — | $ | — | $ | 671 | |||||||||||||
Loans_Tables
Loans (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Loans and Leases Receivable Disclosure [Abstract] | ' | |||||||||||||||
Outstanding loans | ' | |||||||||||||||
Outstanding loans are summarized as follows: | ||||||||||||||||
Loan Type (Dollars in thousands) | September 30, 2013 | % of Total | December 31, 2012 | % of Total | ||||||||||||
Loans | Loans | |||||||||||||||
Commercial: | ||||||||||||||||
Commercial and industrial | $ | 89,991 | 17.5 | % | $ | 77,956 | 19.7 | % | ||||||||
Agricultural land and production | 43,670 | 8.5 | % | 26,599 | 6.7 | % | ||||||||||
Total commercial | 133,661 | 26 | % | 104,555 | 26.4 | % | ||||||||||
Real estate: | ||||||||||||||||
Owner occupied | 155,171 | 30 | % | 114,444 | 28.9 | % | ||||||||||
Real estate construction and other land loans | 35,327 | 6.9 | % | 33,199 | 8.4 | % | ||||||||||
Commercial real estate | 85,457 | 16.6 | % | 53,797 | 13.6 | % | ||||||||||
Agricultural real estate | 39,857 | 7.7 | % | 28,400 | 7.2 | % | ||||||||||
Other real estate | 3,926 | 0.8 | % | 8,098 | 2 | % | ||||||||||
Total real estate | 319,738 | 62 | % | 237,938 | 60.1 | % | ||||||||||
Consumer: | ||||||||||||||||
Equity loans and lines of credit | 51,293 | 10 | % | 42,932 | 10.9 | % | ||||||||||
Consumer and installment | 10,777 | 2 | % | 10,346 | 2.6 | % | ||||||||||
Total consumer | 62,070 | 12 | % | 53,278 | 13.5 | % | ||||||||||
Deferred loan fees, net | (236 | ) | (453 | ) | ||||||||||||
Total gross loans | 515,233 | 100 | % | 395,318 | 100 | % | ||||||||||
Allowance for credit losses | (9,732 | ) | (10,133 | ) | ||||||||||||
Total loans | $ | 505,501 | $ | 385,185 | ||||||||||||
The carrying amount of those loans is included in the balance sheet amounts of loans receivable at September 30, 2013 and December 31, 2012. The amounts of loans at September 30, 2013 and December 31, 2012 are as follows. | ||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||
Real estate | $ | 2,489,000 | $ | — | ||||||||||||
Outstanding balance | $ | 2,489,000 | $ | — | ||||||||||||
Carrying amount, net of allowance of $0 | $ | 2,489,000 | $ | — | ||||||||||||
The carrying amounts of such loans (which are included in the carrying amount, net of allowance, described above) are as follows. | ||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||
Loans acquired during the period | $ | 1,411,000 | $ | — | ||||||||||||
Loans at the end of the period | $ | 1,411,000 | $ | — | ||||||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Table [Table Text Block] | ' | |||||||||||||||
Accretable yield, or income expected to be collected for the three and nine months ended September 30, 2013 and 2012 is as follows (in thousands): | ||||||||||||||||
For the Three Months | For the Nine Months Ended September 30, | |||||||||||||||
Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Balance at beginning of period | $ | — | $ | — | $ | — | $ | — | ||||||||
Additions | 105,000 | — | 105,000 | — | ||||||||||||
Accretion | (70,000 | ) | — | (70,000 | ) | — | ||||||||||
Reclassification from (to) non-accretable difference | 77,000 | — | 77,000 | — | ||||||||||||
Disposals | — | — | — | — | ||||||||||||
Balance at end of period | $ | 112,000 | $ | — | $ | 112,000 | $ | — | ||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Table Text Block] | ' | |||||||||||||||
Loans acquired during each period or year for which it was probable at acquisition that all contractually required payments would not be collected are as follows: | ||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||
Contractually required payments receivable at acquisition: | ||||||||||||||||
Real estate | $ | 6,912,000 | $ | — | ||||||||||||
Total | $ | 6,912,000 | $ | — | ||||||||||||
Cash flows expected to be collected at acquisition | $ | 2,681,000 | $ | — | ||||||||||||
Fair value of in acquired loans at acquisition | $ | 2,576,000 | $ | — | ||||||||||||
Allowance_for_Credit_Losses_Ta
Allowance for Credit Losses (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||||||||||
Troubled Debt Restructurings on Financing Receivables [Table Text Block] | ' | ||||||||||||||||||||||||||||||||
The following table presents loans by class modified as troubled debt restructurings that occurred during the nine months ended September 30, 2012 (dollars in thousands): | |||||||||||||||||||||||||||||||||
Troubled Debt Restructurings: | Number of Loans | Pre-Modification Outstanding Recorded Investment (1) | Principal Modification (2) | Post Modification Outstanding Recorded Investment (3) | Outstanding Recorded Investment | ||||||||||||||||||||||||||||
Real Estate - Owner occupied | 2 | $ | 500 | $ | — | $ | 500 | $ | 493 | ||||||||||||||||||||||||
Allowance for credit losses | ' | ||||||||||||||||||||||||||||||||
The following table shows the summary of activities for the allowance for credit losses as of and for the three months ended September 30, 2013 and 2012 by portfolio segment (in thousands): | |||||||||||||||||||||||||||||||||
Commercial | Real Estate | Consumer | Unallocated | Total | |||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||||||
Beginning balance, July 1, 2013 | $ | 2,792 | $ | 5,057 | $ | 1,252 | $ | 500 | $ | 9,601 | |||||||||||||||||||||||
Provision charged to operations | (52 | ) | (331 | ) | 48 | 335 | — | ||||||||||||||||||||||||||
Losses charged to allowance | (5 | ) | — | (51 | ) | — | (56 | ) | |||||||||||||||||||||||||
Recoveries | 111 | 8 | 68 | — | 187 | ||||||||||||||||||||||||||||
Ending balance, September 30, 2013 | $ | 2,846 | $ | 4,734 | $ | 1,317 | $ | 835 | $ | 9,732 | |||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||||||
Beginning balance, July 1. 2012 | $ | 2,799 | $ | 5,474 | $ | 1,494 | $ | 373 | $ | 10,140 | |||||||||||||||||||||||
Provision charged to operations | (329 | ) | 532 | 151 | (354 | ) | — | ||||||||||||||||||||||||||
Losses charged to allowance | (1 | ) | — | (219 | ) | — | (220 | ) | |||||||||||||||||||||||||
Recoveries | 209 | — | 85 | — | 294 | ||||||||||||||||||||||||||||
Ending balance, September 30, 2012 | $ | 2,678 | $ | 6,006 | $ | 1,511 | $ | 19 | $ | 10,214 | |||||||||||||||||||||||
The following table shows the summary of activities for the allowance for credit losses as of and for the nine months ended September 30, 2013 and 2012 by portfolio segment of loans (in thousands): | |||||||||||||||||||||||||||||||||
Commercial | Real Estate | Consumer | Unallocated | Total | |||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||||||
Beginning balance, January 1, 2013 | $ | 2,676 | $ | 5,877 | $ | 1,541 | $ | 39 | $ | 10,133 | |||||||||||||||||||||||
Provision charged to operations | 622 | (1,151 | ) | (267 | ) | 796 | — | ||||||||||||||||||||||||||
Losses charged to allowance | (706 | ) | — | (86 | ) | — | (792 | ) | |||||||||||||||||||||||||
Recoveries | 254 | 8 | 129 | — | 391 | ||||||||||||||||||||||||||||
Ending balance, September 30, 2013 | $ | 2,846 | $ | 4,734 | $ | 1,317 | $ | 835 | $ | 9,732 | |||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||||||
Beginning balance, January 1, 2012 | $ | 2,266 | $ | 7,155 | $ | 1,836 | $ | 139 | $ | 11,396 | |||||||||||||||||||||||
Provision charged to operations | 33 | 643 | (56 | ) | (120 | ) | 500 | ||||||||||||||||||||||||||
Losses charged to allowance | (123 | ) | (1,792 | ) | (486 | ) | — | (2,401 | ) | ||||||||||||||||||||||||
Recoveries | 502 | — | 217 | — | 719 | ||||||||||||||||||||||||||||
Ending balance, September 30, 2012 | $ | 2,678 | $ | 6,006 | $ | 1,511 | $ | 19 | $ | 10,214 | |||||||||||||||||||||||
The following is a summary of the allowance for credit losses by impairment methodology and portfolio segment as of September 30, 2013 and December 31, 2012 (in thousands). | |||||||||||||||||||||||||||||||||
Commercial | Real Estate | Consumer | Unallocated | Total | |||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||||||
Ending balance, September 30, 2013 | $ | 2,846 | $ | 4,734 | 1,317 | $ | 835 | $ | 9,732 | ||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 632 | $ | 214 | 235 | $ | — | $ | 1,081 | ||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 2,214 | $ | 4,520 | 1,082 | $ | 835 | $ | 8,651 | ||||||||||||||||||||||||
Ending balance, December 31, 2012 | $ | 2,676 | $ | 5,877 | $ | 1,541 | $ | 39 | $ | 10,133 | |||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 40 | $ | 465 | $ | 5 | $ | — | $ | 510 | |||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 2,636 | $ | 5,412 | $ | 1,536 | $ | 39 | $ | 9,623 | |||||||||||||||||||||||
Loans by impairment methdology | ' | ||||||||||||||||||||||||||||||||
The following table shows the ending balances of loans as of September 30, 2013 and December 31, 2012 by portfolio segment and by impairment methodology. These include loans acquired at fair value at July 1, 2013 with outstanding balances of $108 million as of September 30, 2013 (in thousands): | |||||||||||||||||||||||||||||||||
Commercial | Real Estate | Consumer | Total | ||||||||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||
Ending balance, September 30, 2013 | $ | 133,661 | $ | 319,738 | $ | 62,070 | $ | 515,469 | |||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 1,649 | $ | 9,858 | $ | 2,510 | $ | 14,017 | |||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 132,012 | $ | 309,880 | $ | 59,560 | $ | 501,452 | |||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||
Ending balance, December 31, 2012 | $ | 104,555 | $ | 237,938 | $ | 53,278 | $ | 395,771 | |||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 2,405 | $ | 12,868 | $ | 1,832 | $ | 17,105 | |||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 102,150 | $ | 225,070 | $ | 51,446 | $ | 378,666 | |||||||||||||||||||||||||
Loan portfolio by internal risk rating | ' | ||||||||||||||||||||||||||||||||
The following table shows the loan portfolio by class allocated by management’s internal risk ratings at September 30, 2013 (in thousands): | |||||||||||||||||||||||||||||||||
Pass | Special Mention | Sub-Standard | Doubtful | Total | |||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 83,958 | $ | 2,626 | $ | 3,407 | $ | — | $ | 89,991 | |||||||||||||||||||||||
Agricultural land and production | 43,670 | — | — | — | 43,670 | ||||||||||||||||||||||||||||
Real Estate: | |||||||||||||||||||||||||||||||||
Owner occupied | 142,344 | 5,294 | 7,533 | — | 155,171 | ||||||||||||||||||||||||||||
Real estate construction and other land loans | 25,642 | 2,405 | 7,280 | — | 35,327 | ||||||||||||||||||||||||||||
Commercial real estate | 76,661 | 3,745 | 5,051 | — | 85,457 | ||||||||||||||||||||||||||||
Agricultural real estate | 37,856 | 2,001 | — | — | 39,857 | ||||||||||||||||||||||||||||
Other real estate | 3,926 | — | — | — | 3,926 | ||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Equity loans and lines of credit | 44,508 | 2,465 | 4,320 | — | 51,293 | ||||||||||||||||||||||||||||
Consumer and installment | 10,698 | 52 | 27 | — | 10,777 | ||||||||||||||||||||||||||||
Total | $ | 469,263 | $ | 18,588 | $ | 27,618 | $ | — | $ | 515,469 | |||||||||||||||||||||||
The following table shows the loan portfolio by class allocated by management’s internally assigned risk grade ratings at December 31, 2012 (in thousands): | |||||||||||||||||||||||||||||||||
Pass | Special Mention | Sub-Standard | Doubtful | Total | |||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 71,125 | $ | 824 | $ | 6,007 | $ | — | $ | 77,956 | |||||||||||||||||||||||
Agricultural land and production | 26,599 | — | — | — | 26,599 | ||||||||||||||||||||||||||||
Real Estate: | |||||||||||||||||||||||||||||||||
Owner occupied | 107,281 | 1,831 | 5,332 | — | 114,444 | ||||||||||||||||||||||||||||
Real estate construction and other land loans | 18,517 | 3,377 | 11,305 | — | 33,199 | ||||||||||||||||||||||||||||
Commercial real estate | 44,880 | 3,952 | 4,965 | — | 53,797 | ||||||||||||||||||||||||||||
Agricultural real estate | 26,883 | 1,517 | — | — | 28,400 | ||||||||||||||||||||||||||||
Other real estate | 8,098 | — | — | — | 8,098 | ||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Equity loans and lines of credit | 40,527 | 258 | 2,147 | — | 42,932 | ||||||||||||||||||||||||||||
Consumer and installment | 10,259 | 77 | 10 | — | 10,346 | ||||||||||||||||||||||||||||
Total | $ | 354,169 | $ | 11,836 | $ | 29,766 | $ | — | $ | 395,771 | |||||||||||||||||||||||
Loan portfolio by time past due | ' | ||||||||||||||||||||||||||||||||
The following table shows an aging analysis of the loan portfolio by class and the time past due at September 30, 2013 (in thousands): | |||||||||||||||||||||||||||||||||
30-59 Days | 60-89 | Greater | Total Past | Current | Total | Recorded | Non-accrual | ||||||||||||||||||||||||||
Past Due | Days Past | Than | Due | Loans | Investment | ||||||||||||||||||||||||||||
Due | 90 Days | > 90 Days | |||||||||||||||||||||||||||||||
Past Due | Accruing | ||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 1,497 | $ | — | $ | 78 | $ | 1,575 | $ | 88,416 | $ | 89,991 | $ | — | $ | 1,649 | |||||||||||||||||
Agricultural land and production | — | — | — | — | 43,670 | 43,670 | — | — | |||||||||||||||||||||||||
Real estate: | — | — | — | — | |||||||||||||||||||||||||||||
Owner occupied | 555 | — | 229 | 784 | 154,387 | 155,171 | — | 2,198 | |||||||||||||||||||||||||
Real estate construction and other land loans | — | — | — | — | 35,327 | 35,327 | — | 1,499 | |||||||||||||||||||||||||
Commercial real estate | — | — | — | — | 85,457 | 85,457 | — | 167 | |||||||||||||||||||||||||
Agricultural real estate | — | — | — | — | 39,857 | 39,857 | — | — | |||||||||||||||||||||||||
Other real estate | — | — | — | — | 3,926 | 3,926 | — | — | |||||||||||||||||||||||||
Consumer: | — | — | — | ||||||||||||||||||||||||||||||
Equity loans and lines of credit | 424 | 59 | 505 | 988 | 50,305 | 51,293 | — | 2,497 | |||||||||||||||||||||||||
Consumer and installment | 57 | — | — | 57 | 10,720 | 10,777 | — | 12 | |||||||||||||||||||||||||
Total | $ | 2,533 | $ | 59 | $ | 812 | $ | 3,404 | $ | 512,065 | $ | 515,469 | $ | — | $ | 8,022 | |||||||||||||||||
The following table shows an aging analysis of the loan portfolio by class and the time past due at December 31, 2012 (in thousands): | |||||||||||||||||||||||||||||||||
30-59 Days | 60-89 | Greater | Total Past | Current | Total | Recorded | Non- | ||||||||||||||||||||||||||
Past Due | Days Past | Than | Due | Loans | Investment | accrual | |||||||||||||||||||||||||||
Due | 90 Days | > 90 Days | |||||||||||||||||||||||||||||||
Past Due | Accruing | ||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial and industrial | $ | — | $ | — | $ | — | $ | — | $ | 77,956 | $ | 77,956 | $ | — | $ | — | |||||||||||||||||
Agricultural land and production | — | — | — | — | 26,599 | 26,599 | — | — | |||||||||||||||||||||||||
Real estate: | — | ||||||||||||||||||||||||||||||||
Owner occupied | — | 213 | — | 213 | 114,231 | 114,444 | — | 1,575 | |||||||||||||||||||||||||
Real estate construction and other land loans | — | — | — | — | 33,199 | 33,199 | — | 6,288 | |||||||||||||||||||||||||
Commercial real estate | — | — | — | — | 53,797 | 53,797 | — | — | |||||||||||||||||||||||||
Agricultural real estate | — | — | — | — | 28,400 | 28,400 | — | — | |||||||||||||||||||||||||
Other real estate | — | — | — | — | 8,098 | 8,098 | — | — | |||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Equity loans and lines of credit | — | — | — | — | 42,932 | 42,932 | — | 1,832 | |||||||||||||||||||||||||
Consumer and installment | 27 | — | — | 27 | 10,319 | 10,346 | — | — | |||||||||||||||||||||||||
Total | $ | 27 | $ | 213 | $ | — | $ | 240 | $ | 395,531 | $ | 395,771 | $ | — | $ | 9,695 | |||||||||||||||||
Impaired loans | ' | ||||||||||||||||||||||||||||||||
The following table shows information related to impaired loans by class at September 30, 2013 (in thousands): | |||||||||||||||||||||||||||||||||
Recorded | Unpaid | Related | |||||||||||||||||||||||||||||||
Investment | Principal | Allowance | |||||||||||||||||||||||||||||||
Balance | |||||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 393 | $ | 423 | $ | — | |||||||||||||||||||||||||||
Agricultural land and production | — | — | — | ||||||||||||||||||||||||||||||
Total commercial | 393 | 423 | — | ||||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||||
Owner occupied | 1,804 | 2,643 | — | ||||||||||||||||||||||||||||||
Real estate construction and other land loans | 5,227 | 5,431 | — | ||||||||||||||||||||||||||||||
Commercial real estate | 167 | 549 | — | ||||||||||||||||||||||||||||||
Agricultural real estate | — | — | — | ||||||||||||||||||||||||||||||
Other real estate | — | — | — | ||||||||||||||||||||||||||||||
Total real estate | 7,198 | 8,623 | — | ||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Equity loans and lines of credit | 1,926 | 2,691 | — | ||||||||||||||||||||||||||||||
Consumer and installment | 12 | 15 | — | ||||||||||||||||||||||||||||||
Total consumer | 1,938 | 2,706 | — | ||||||||||||||||||||||||||||||
Total with no related allowance recorded | 9,529 | 11,752 | — | ||||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial and industrial | 1,256 | 1,284 | 632 | ||||||||||||||||||||||||||||||
Agricultural land and production | — | — | — | ||||||||||||||||||||||||||||||
Total commercial | 1,256 | 1,284 | 632 | ||||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||||
Owner occupied | 1,790 | 1,963 | 49 | ||||||||||||||||||||||||||||||
Real estate construction and other land loans | 870 | 1,315 | 165 | ||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | ||||||||||||||||||||||||||||||
Agricultural real estate | — | — | — | ||||||||||||||||||||||||||||||
Other real estate | — | — | — | ||||||||||||||||||||||||||||||
Total real estate | 2,660 | 3,278 | 214 | ||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Equity loans and lines of credit | 572 | 578 | 235 | ||||||||||||||||||||||||||||||
Consumer and installment | — | — | — | ||||||||||||||||||||||||||||||
Total consumer | 572 | 578 | 235 | ||||||||||||||||||||||||||||||
Total with an allowance recorded | 4,488 | 5,140 | 1,081 | ||||||||||||||||||||||||||||||
Total | $ | 14,017 | $ | 16,892 | $ | 1,081 | |||||||||||||||||||||||||||
The recorded investment in loans excludes accrued interest receivable and net loan origination fees, due to immateriality. | |||||||||||||||||||||||||||||||||
The following table shows information related to impaired loans by class at December 31, 2012 (in thousands): | |||||||||||||||||||||||||||||||||
Recorded | Unpaid | Related | |||||||||||||||||||||||||||||||
Investment | Principal | Allowance | |||||||||||||||||||||||||||||||
Balance | |||||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial and industrial | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||
Agricultural land and production | — | — | — | ||||||||||||||||||||||||||||||
Total commercial | — | — | — | ||||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||||
Owner occupied | — | — | — | ||||||||||||||||||||||||||||||
Real estate construction and other land loans | 1,352 | 1,888 | — | ||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | ||||||||||||||||||||||||||||||
Agricultural real estate | — | — | — | ||||||||||||||||||||||||||||||
Other real estate | — | — | — | ||||||||||||||||||||||||||||||
Total real estate | 1,352 | 1,888 | — | ||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Equity loans and lines of credit | 1,523 | 1,834 | — | ||||||||||||||||||||||||||||||
Consumer and installment | — | — | — | ||||||||||||||||||||||||||||||
Total consumer | 1,523 | 1,834 | — | ||||||||||||||||||||||||||||||
Total with no related allowance recorded | 2,875 | 3,722 | — | ||||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial and industrial | 2,405 | 2,405 | 40 | ||||||||||||||||||||||||||||||
Agricultural land and production | — | — | — | ||||||||||||||||||||||||||||||
Total commercial | 2,405 | 2,405 | 40 | ||||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||||
Owner occupied | 1,575 | 1,733 | 165 | ||||||||||||||||||||||||||||||
Real estate construction and other land loans | 9,941 | 10,875 | 300 | ||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | ||||||||||||||||||||||||||||||
Agricultural real estate | — | — | — | ||||||||||||||||||||||||||||||
Other real estate | — | — | — | ||||||||||||||||||||||||||||||
Total real estate | 11,516 | 12,608 | 465 | ||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Equity loans and lines of credit | 309 | 323 | 5 | ||||||||||||||||||||||||||||||
Consumer and installment | — | — | — | ||||||||||||||||||||||||||||||
Total consumer | 309 | 323 | 5 | ||||||||||||||||||||||||||||||
Total with an allowance recorded | 14,230 | 15,336 | 510 | ||||||||||||||||||||||||||||||
Total | $ | 17,105 | $ | 19,058 | $ | 510 | |||||||||||||||||||||||||||
The recorded investment in loans excludes accrued interest receivable and net loan origination fees, due to immateriality. | |||||||||||||||||||||||||||||||||
The following presents by class, information related to the average recorded investment and interest income recognized on impaired loans for the three months ended September 30, 2013 and 2012. | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | Three Months Ended September 30, 2012 | ||||||||||||||||||||||||||||||||
Average | Interest | Average | Interest | ||||||||||||||||||||||||||||||
Recorded | Income | Recorded | Income | ||||||||||||||||||||||||||||||
Investment | Recognized | Investment | Recognized | ||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 412 | $ | — | $ | 600 | $ | — | |||||||||||||||||||||||||
Agricultural land and production | — | — | — | — | |||||||||||||||||||||||||||||
Total commercial | 412 | — | 600 | — | |||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||||
Owner occupied | 2,196 | — | 992 | — | |||||||||||||||||||||||||||||
Real estate construction and other land loans | 2,172 | — | 4,778 | — | |||||||||||||||||||||||||||||
Commercial real estate | 332 | — | — | — | |||||||||||||||||||||||||||||
Agricultural real estate | — | — | — | — | |||||||||||||||||||||||||||||
Other real estate | — | — | — | — | |||||||||||||||||||||||||||||
Total real estate | 4,700 | — | 5,770 | — | |||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Equity loans and lines of credit | 2,057 | — | 1,615 | — | |||||||||||||||||||||||||||||
Consumer and installment | 14 | — | — | — | |||||||||||||||||||||||||||||
Total consumer | 2,071 | — | 1,615 | — | |||||||||||||||||||||||||||||
Total with no related allowance recorded | 7,183 | — | 7,985 | — | |||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial and industrial | 1,271 | 15 | 1,849 | 50 | |||||||||||||||||||||||||||||
Agricultural land and production | — | — | — | — | |||||||||||||||||||||||||||||
Total commercial | 1,271 | 15 | 1,849 | 50 | |||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||||
Owner occupied | 1,471 | 35 | 646 | — | |||||||||||||||||||||||||||||
Real estate construction and other land loans | 4,049 | 85 | 6,833 | 92 | |||||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | |||||||||||||||||||||||||||||
Agricultural real estate | — | — | — | — | |||||||||||||||||||||||||||||
Other real estate | — | — | — | — | |||||||||||||||||||||||||||||
Total real estate | 5,520 | 120 | 7,479 | 92 | |||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Equity loans and lines of credit | 571 | — | 289 | — | |||||||||||||||||||||||||||||
Consumer and installment | — | — | 23 | — | |||||||||||||||||||||||||||||
Total consumer | 571 | — | 312 | — | |||||||||||||||||||||||||||||
Total with an allowance recorded | 7,362 | 135 | 9,640 | 142 | |||||||||||||||||||||||||||||
Total | $ | 14,545 | $ | 135 | $ | 17,625 | $ | 142 | |||||||||||||||||||||||||
The following presents by class, information related to the average recorded investment and interest income recognized on impaired loans for the nine months ended September 30, 2013 and 2012 (in thousands): | |||||||||||||||||||||||||||||||||
Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||||||||||||||||||||||
Average | Interest | Average | Interest | ||||||||||||||||||||||||||||||
Recorded | Income | Recorded | Income | ||||||||||||||||||||||||||||||
Investment | Recognized | Investment | Recognized | ||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 309 | $ | — | $ | 1,235 | $ | — | |||||||||||||||||||||||||
Agricultural land and production | — | — | — | — | |||||||||||||||||||||||||||||
Total commercial | 309 | — | 1,235 | — | |||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||||
Owner occupied | 1,681 | — | 747 | — | |||||||||||||||||||||||||||||
Real estate construction and other land loans | 3,001 | — | 5,551 | — | |||||||||||||||||||||||||||||
Commercial real estate | 282 | — | 200 | — | |||||||||||||||||||||||||||||
Agricultural real estate | — | — | — | — | |||||||||||||||||||||||||||||
Other real estate | — | — | — | — | |||||||||||||||||||||||||||||
Total real estate | 4,964 | — | 6,498 | — | |||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Equity loans and lines of credit | 1,966 | — | 1,566 | — | |||||||||||||||||||||||||||||
Consumer and installment | 10 | — | — | — | |||||||||||||||||||||||||||||
Total consumer | 1,976 | — | 1,566 | — | |||||||||||||||||||||||||||||
Total with no related allowance recorded | 7,249 | — | 9,299 | — | |||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial and industrial | 1,404 | 80 | 1,624 | 178 | |||||||||||||||||||||||||||||
Agricultural land and production | — | — | — | — | |||||||||||||||||||||||||||||
Total commercial | 1,404 | 80 | 1,624 | 178 | |||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||||
Owner occupied | 1,454 | 65 | 662 | — | |||||||||||||||||||||||||||||
Real estate construction and other land loans | 4,440 | 255 | 6,387 | 285 | |||||||||||||||||||||||||||||
Commercial real estate | — | — | 193 | — | |||||||||||||||||||||||||||||
Agricultural real estate | — | — | — | — | |||||||||||||||||||||||||||||
Other real estate | — | — | — | — | |||||||||||||||||||||||||||||
Total real estate | 5,894 | 320 | 7,242 | 285 | |||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Equity loans and lines of credit | 465 | — | 543 | — | |||||||||||||||||||||||||||||
Consumer and installment | — | — | 48 | — | |||||||||||||||||||||||||||||
Total consumer | 465 | — | 591 | — | |||||||||||||||||||||||||||||
Total with an allowance recorded | 7,763 | 400 | 9,457 | 463 | |||||||||||||||||||||||||||||
Total | $ | 15,012 | $ | 400 | $ | 18,756 | $ | 463 | |||||||||||||||||||||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||
Schedule of Expected Amortization Expense [Table Text Block] | ' | |||
The following table summarizes the Company's estimated core deposit intangible amortization expense for each of the next five years: | ||||
Estimated Core Deposit | ||||
Years Ended | Intangible Amortization | |||
2013 | $ | 84,125 | ||
2014 | 336,500 | |||
2015 | 319,833 | |||
2016 | 136,500 | |||
2017 | 136,500 | |||
Thereafter | 750,750 | |||
Acquisition_of_Visalia_Communi1
Acquisition of Visalia Community Bank (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Business Combinations [Abstract] | ' | |||||||||
Summary of consideration paid, assets acquired and liabilities assumed | ' | |||||||||
The following table summarizes the consideration paid for Visalia Community Bank and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date: | ||||||||||
Merger consideration: | ||||||||||
Cash | $ | 11,050,000 | ||||||||
Common stock issued | 12,494,000 | |||||||||
Fair Value of Total Consideration Transferred | $ | 23,544,000 | ||||||||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||||||||
Cash and cash equivalents | $ | 51,779,000 | ||||||||
Loans, net | 113,467,000 | |||||||||
Investments | 14,818,000 | |||||||||
Core deposit intangible | 1,365,000 | |||||||||
Premises and equipment | 4,263,000 | |||||||||
Federal Home Loan Bank stock | 698,000 | |||||||||
Other real estate owned | 263,000 | |||||||||
Deferred taxes and taxes receivable | 3,051,000 | |||||||||
Bank owned life insurance | 6,786,000 | |||||||||
Other assets | 796,000 | |||||||||
Total assets acquired | 197,286,000 | |||||||||
Deposits | 174,206,000 | |||||||||
Other liabilities | 5,735,000 | |||||||||
Total liabilities assumed | 179,941,000 | |||||||||
Total identifiable net assets | 17,345,000 | |||||||||
Goodwill | $ | 6,199,000 | ||||||||
Pro Forma Results of Operations | ' | |||||||||
Pro Forma Results of Operations | For the Nine Months Ended September 30, | |||||||||
(In thousands, except per share amounts) | 2013 | 2012 | ||||||||
Net interest income | $ | 27,581 | $ | 28,027 | ||||||
Provision for credit losses | 298 | 1,185 | ||||||||
Non-interest income | 6,611 | 7,025 | ||||||||
Non-interest expense | 28,619 | 26,332 | ||||||||
Income before provision for income taxes | 5,275 | 7,535 | ||||||||
Provision for income taxes | 375 | 1,542 | ||||||||
Net income | $ | 4,900 | $ | 5,993 | ||||||
Basic earnings per share | $ | 0.46 | $ | 0.53 | ||||||
Diluted earnings per share | $ | 0.46 | $ | 0.53 | ||||||
ShareBased_Compensation_Stock_
Share-Based Compensation - Stock Option Activity (Details) (USD $) | 9 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 |
Stock option activity | ' |
Options outstanding (in shares) | 499,289 |
Options exercised (in shares) | -92,199 |
Options cancelled (in shares) | -25,470 |
Options outstanding (in shares) | 381,620 |
Options vested or expected to vest (in shares) | 376,118 |
Options exercisable (in shares) | 278,820 |
Stock option activity, weighted average exercise price | ' |
Options Outstanding, weighted average exercise price (in dollars per share) | $8.78 |
Options exercised, weighted average exercise price (in dollars per share) | $8.48 |
Options canceled, weighted average exercise price (in dollars per share) | $9.15 |
Options Outstanding, weighted average exercise price (in dollars per share) | $8.82 |
Options vested or expected to vest, weighted average exercise price (in dollars per share) | $8.83 |
Options exercisable, weighted average exercise price (in dollars per share) | $9.38 |
Options outstanding, weighted average remaining contractual term | '4 years 11 months 14 days |
Options vested or expected to vest, weighted average remaining contractual term | '4 years 10 months 28 days |
Options exercisable, weighted average remaining contractual term | '3 years 8 months 25 days |
Options outstanding, aggregate intrinsic value | $889 |
Options vested or expected to vest, aggregate intrinsic value | 874 |
Options exercisable, aggregate intrinsic value | $597 |
ShareBased_Compensation_Textua
Share-Based Compensation - Textual (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | $23,000 | $19,000 | $73,000 | $83,000 |
Options exercised during period | ' | ' | 92,199 | ' |
Options exercised, total intrinsic value | ' | ' | 77,000 | ' |
Cash received from exercise of stock options | ' | ' | 782,000 | 361,000 |
Tax benefit realized from exercise of stock options | ' | ' | 16,000 | 25,000 |
Unrecognized compensation cost related to non-vested share-based compensation arrangements | 292,000 | ' | 292,000 | ' |
Weighted average period to recognize unrecognized share-based compensation cost | ' | ' | '3 years 4 months 6 days | ' |
Stock Options [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Tax benefit of stock option compensation expense | $4,000 | $3,000 | $13,000 | $14,000 |
Options granted during the period | 91,150 | ' | ' | ' |
Options granted, weighted average exercise price | $8.02 | ' | ' | ' |
Earnings_Per_Share_Basic_Detai
Earnings Per Share - Basic (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 |
Basic Earnings Per share | ' | ' | ' | ' |
Net Income | $2,969 | $2,456 | $6,039 | $5,878 |
Less: Preferred stock dividends and accretion | -87 | -87 | -262 | -262 |
Income available to common shareholders | $2,882 | $2,369 | $5,777 | $5,616 |
Weighted average shares outstanding (in shares) | 10,899,086 | 9,602,473 | 10,020,057 | 9,588,321 |
Basic earnings per share (in dollars per share) | $0.26 | $0.25 | $0.58 | $0.59 |
Earnings_Per_Share_Diluted_Det
Earnings Per Share - 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 |
Diluted Earnings Per share | ' | ' | ' | ' |
Net Income | $2,969 | $2,456 | $6,039 | $5,878 |
Less: Preferred stock dividends and accretion | -87 | -87 | -262 | -262 |
Income available to common shareholders | $2,882 | $2,369 | $5,777 | $5,616 |
Weighted average shares outstanding (in shares) | 10,899,086 | 9,602,473 | 10,020,057 | 9,588,321 |
Effect of dilutive stock options (in shares) | 59,725 | 32,866 | 59,977 | 24,881 |
Weighted average shares of common stock and common stock equivalents (in shares) | 10,958,811 | 9,635,339 | 10,080,034 | 9,613,202 |
Diluted earnings per share (in dollars per share) | $0.26 | $0.25 | $0.57 | $0.58 |
Anti-dilutive options and warrants (in shares) | ' | ' | 202,355 | 364,209 |
Investments_Carrying_value_and
Investments - Carrying value and estimated fair value (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Schedule of Available-for-sale Securities | ' | ' |
Available-for-sale investment securities, Amortized cost | $419,270,000 | $381,074,000 |
Gross Unrealized Gains | 7,075,000 | 14,612,000 |
Gross Unrealized Losses | -8,512,000 | -1,721,000 |
Available-for-sale Securities | 417,833,000 | 393,965,000 |
U.S. Government agencies | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Debt Securities, Amortized Cost | 16,410,000 | 9,443,000 |
Gross Unrealized Gains | 198,000 | 34,000 |
Gross Unrealized Losses | -29,000 | -23,000 |
Debt Securities, Estimated Fair Value | 16,579,000 | 9,454,000 |
Obligations of states and political subdivisions | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Debt Securities, Amortized Cost | 186,818,000 | 151,312,000 |
Gross Unrealized Gains | 4,598,000 | 10,751,000 |
Gross Unrealized Losses | -6,821,000 | -385,000 |
Debt Securities, Estimated Fair Value | 184,595,000 | 161,678,000 |
U.S. Government agencies collateralized by residential mortgage obligations | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Debt Securities, Amortized Cost | 203,728,000 | 206,465,000 |
Gross Unrealized Gains | 1,295,000 | 3,152,000 |
Gross Unrealized Losses | -1,662,000 | -1,107,000 |
Debt Securities, Estimated Fair Value | 203,361,000 | 208,510,000 |
Private label residential mortgage backed securities | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Debt Securities, Amortized Cost | 4,718,000 | 6,258,000 |
Gross Unrealized Gains | 954,000 | 323,000 |
Gross Unrealized Losses | 0 | -206,000 |
Debt Securities, Estimated Fair Value | 5,672,000 | 6,375,000 |
Other equity securities | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Equity Securities, Amortized Cost | 7,596,000 | 7,596,000 |
Gross Unrealized Gains | 30,000 | 352,000 |
Gross Unrealized Losses | 0 | 0 |
Equity Securities, Estimated Fair Value | $7,626,000 | $7,948,000 |
Investments_Realized_gains_and
Investments - Realized gains and losses (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 |
Investments, Debt and Equity Securities [Abstract] | ' | ' | ' | ' |
Proceeds from sales or calls | $1,575 | $31,055 | $37,428 | $38,554 |
Gross realized gains from sales or calls | 0 | 1,128 | 1,401 | 1,694 |
Gross realized losses from sales or calls | $0 | ($285) | ($268) | ($407) |
Investments_Unrealized_losses_
Investments - Unrealized losses (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities | ' | ' |
Less than 12 Months, Fair Value | $188,315 | $110,926 |
Less than 12 Months, Unrealized Losses | -7,878 | -1,217 |
12 Months or More, Fair Value | 24,403 | 20,910 |
12 Months or More, Unrealized Losses | -634 | -504 |
Total Fair Value | 212,718 | 131,836 |
Total Unrealized Losses | -8,512 | -1,721 |
U.S. Government agencies | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Less than 12 Months, Fair Value | 3,039 | 3,590 |
Less than 12 Months, Unrealized Losses | -29 | -23 |
12 Months or More, Fair Value | 0 | 0 |
12 Months or More, Unrealized Losses | 0 | 0 |
Total Fair Value | 3,039 | 3,590 |
Total Unrealized Losses | -29 | -23 |
Obligations of states and political subdivisions | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Less than 12 Months, Fair Value | 101,937 | 30,572 |
Less than 12 Months, Unrealized Losses | -6,510 | -385 |
12 Months or More, Fair Value | 2,597 | 0 |
12 Months or More, Unrealized Losses | -311 | 0 |
Total Fair Value | 104,534 | 30,572 |
Total Unrealized Losses | -6,821 | -385 |
U.S. Government agencies collateralized by residential mortgage obligations | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Less than 12 Months, Fair Value | 83,339 | 76,764 |
Less than 12 Months, Unrealized Losses | -1,339 | -809 |
12 Months or More, Fair Value | 21,806 | 18,024 |
12 Months or More, Unrealized Losses | -323 | -298 |
Total Fair Value | 105,145 | 94,788 |
Total Unrealized Losses | -1,662 | -1,107 |
Private label residential mortgage backed securities | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Less than 12 Months, Fair Value | ' | 0 |
Less than 12 Months, Unrealized Losses | ' | 0 |
12 Months or More, Fair Value | ' | 2,886 |
12 Months or More, Unrealized Losses | ' | -206 |
Total Fair Value | ' | 2,886 |
Total Unrealized Losses | ' | ($206) |
Investments_Textual_Details
Investments - Textual (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Schedule of Available-for-sale Securities | ' | ' | ' | ' | ' |
Available-for-sale Securities Pledged as Collateral | $109,500,000 | ' | $109,500,000 | ' | ' |
Available-for-sale Securities, Gross Unrealized Gain (Loss) | -1,437,000 | ' | -1,437,000 | ' | 12,891,000 |
Income tax impact from the reclassification of unrealized net gains on available-for-sale securities to realized net gains on available-for-sale securities | 0 | 348,000 | 466,000 | 530,000 | ' |
Gross Unrealized Gains | 7,075,000 | ' | 7,075,000 | ' | 14,612,000 |
U.S. Government agencies | ' | ' | ' | ' | ' |
Schedule of Available-for-sale Securities | ' | ' | ' | ' | ' |
Available-for-sale Securities, Number of Positions | 6 | ' | 6 | ' | ' |
Debt Securities, Amortized Cost | 16,410,000 | ' | 16,410,000 | ' | 9,443,000 |
Gross Unrealized Gains | 198,000 | ' | 198,000 | ' | 34,000 |
Obligations of states and political subdivisions | ' | ' | ' | ' | ' |
Schedule of Available-for-sale Securities | ' | ' | ' | ' | ' |
Available-for-sale Securities, Number of Positions | 213 | ' | 213 | ' | ' |
Debt Securities, Amortized Cost | 186,818,000 | ' | 186,818,000 | ' | 151,312,000 |
Gross Unrealized Gains | 4,598,000 | ' | 4,598,000 | ' | 10,751,000 |
U.S. Government agencies collateralized by residential mortgage obligations | ' | ' | ' | ' | ' |
Schedule of Available-for-sale Securities | ' | ' | ' | ' | ' |
Available-for-sale Securities, Number of Positions | 197 | ' | 197 | ' | ' |
Debt Securities, Amortized Cost | 203,728,000 | ' | 203,728,000 | ' | 206,465,000 |
Gross Unrealized Gains | 1,295,000 | ' | 1,295,000 | ' | 3,152,000 |
Private label residential mortgage backed securities | ' | ' | ' | ' | ' |
Schedule of Available-for-sale Securities | ' | ' | ' | ' | ' |
Available-for-sale Securities, Gross Unrealized Gain (Loss) | 954,000 | ' | 954,000 | ' | ' |
Available-for-sale Securities, Number of Positions | 21 | ' | 21 | ' | ' |
Available-for-sale, Securities in Unrealized Loss Positions, Number of Positions | 0 | ' | 0 | ' | ' |
Debt Securities, Amortized Cost | 4,718,000 | ' | 4,718,000 | ' | 6,258,000 |
Gross Unrealized Gains | 954,000 | ' | 954,000 | ' | 323,000 |
Other equity securities | ' | ' | ' | ' | ' |
Schedule of Available-for-sale Securities | ' | ' | ' | ' | ' |
Gross Unrealized Gains | 30,000 | ' | 30,000 | ' | 352,000 |
Less than 12 months | U.S. Government agencies | ' | ' | ' | ' | ' |
Schedule of Available-for-sale Securities | ' | ' | ' | ' | ' |
Available-for-sale, Securities in Unrealized Loss Positions, Number of Positions | 2 | ' | 2 | ' | ' |
Less than 12 months | Obligations of states and political subdivisions | ' | ' | ' | ' | ' |
Schedule of Available-for-sale Securities | ' | ' | ' | ' | ' |
Available-for-sale, Securities in Unrealized Loss Positions, Number of Positions | 76 | ' | 76 | ' | ' |
Less than 12 months | U.S. Government agencies collateralized by residential mortgage obligations | ' | ' | ' | ' | ' |
Schedule of Available-for-sale Securities | ' | ' | ' | ' | ' |
Available-for-sale, Securities in Unrealized Loss Positions, Number of Positions | 41 | ' | 41 | ' | ' |
Greater than 12 months | U.S. Government agencies | ' | ' | ' | ' | ' |
Schedule of Available-for-sale Securities | ' | ' | ' | ' | ' |
Available-for-sale, Securities in Unrealized Loss Positions, Number of Positions | 0 | ' | 0 | ' | ' |
Greater than 12 months | Obligations of states and political subdivisions | ' | ' | ' | ' | ' |
Schedule of Available-for-sale Securities | ' | ' | ' | ' | ' |
Available-for-sale, Securities in Unrealized Loss Positions, Number of Positions | 2 | ' | 2 | ' | ' |
Greater than 12 months | U.S. Government agencies collateralized by residential mortgage obligations | ' | ' | ' | ' | ' |
Schedule of Available-for-sale Securities | ' | ' | ' | ' | ' |
Available-for-sale, Securities in Unrealized Loss Positions, Number of Positions | 21 | ' | 21 | ' | ' |
Below investment grade | Private label residential mortgage backed securities | ' | ' | ' | ' | ' |
Schedule of Available-for-sale Securities | ' | ' | ' | ' | ' |
Available-for-sale Securities, Gross Unrealized Gain (Loss) | 857,000 | ' | 857,000 | ' | ' |
Available-for-sale Securities, Number of Positions | 8 | ' | 8 | ' | ' |
Debt Securities, Amortized Cost | $3,713,000 | ' | $3,713,000 | ' | ' |
Investments_Below_investment_g
Investments - Below investment grade securities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Private label residential mortgage backed securities | Private label residential mortgage backed securities | Below investment grade | PHHAM | CWALT ONE | CWALT TWO | FHAMS | BAALT | ABFS | CWALT THREE | CONHE | |||
Private label residential mortgage backed securities | Below investment grade | Below investment grade | Below investment grade | Below investment grade | Below investment grade | Below investment grade | Below investment grade | Below investment grade | |||||
Private label residential mortgage backed securities | Private label residential mortgage backed securities | Private label residential mortgage backed securities | Private label residential mortgage backed securities | Private label residential mortgage backed securities | Private label residential mortgage backed securities | Private label residential mortgage backed securities | Private label residential mortgage backed securities | ||||||
Schedule of Available-for-sale Securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Securities, Amortized Cost | ' | ' | $4,718,000 | $6,258,000 | $3,713,000 | $1,471,000 | $515,000 | $219,000 | $1,296,000 | $2,000 | $124,000 | $50,000 | $36,000 |
Available-for-sale Securities | 417,833,000 | 393,965,000 | ' | ' | 4,570,000 | 1,684,000 | 562,000 | 220,000 | 1,713,000 | 20,000 | 262,000 | 52,000 | 57,000 |
Unrealized Gain (Loss) | ($1,437,000) | $12,891,000 | $954,000 | ' | $857,000 | $213,000 | $47,000 | $1,000 | $417,000 | $18,000 | $138,000 | $2,000 | $21,000 |
12 Month Historical Prepayment Rates % | ' | ' | ' | ' | ' | 14.18% | 15.68% | 17.67% | 15.84% | 15.01% | 7.41% | 24.13% | 3.65% |
Projected Default Rates % | ' | ' | ' | ' | ' | 20.07% | 22.85% | 22.34% | 20.18% | 11.47% | 40.10% | 10.37% | 8.26% |
Projected Severity Rates % | ' | ' | ' | ' | ' | 51.00% | 46.29% | 46.93% | 40.88% | 36.58% | 46.75% | 43.71% | 46.75% |
Original Purchase Price % | ' | ' | ' | ' | ' | 97.25% | 100.73% | 101.38% | 95.00% | 97.24% | 97.46% | 94.47% | 86.39% |
Current Credit Enhancement % | ' | ' | ' | ' | ' | 0.00% | 0.00% | -1.55% | -1.16% | 0.92% | 0.00% | 11.21% | 0.00% |
Investments_Credit_loss_rollfo
Investments - Credit loss rollforward (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 | Mar. 31, 2013 | Mar. 31, 2012 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ' | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | $783 | $783 | $800 | $783 |
Amounts related to credit loss for which an OTTI charge was not previously recognized | 0 | 0 | 17 | 0 | ' | ' |
Increases to the amount related to credit loss for which OTTI was previously recognized | 0 | 0 | 0 | 0 | ' | ' |
Realized losses for securities sold | 0 | 0 | 0 | 0 | ' | ' |
Ending balance | $800 | $783 | $800 | $783 | $800 | $783 |
Investments_Investments_by_con
Investments - Investments by contractual maturity (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities | ' | ' |
Within one year, amortized cost | $115 | ' |
Within one year, estimated fair value | 115 | ' |
After one year through five years, amortized cost | 12,804 | ' |
After one year through five years, estimated fair value | 13,658 | ' |
After five years through ten years, amortized cost | 24,758 | ' |
After five years through ten years, estimated fair value | 25,645 | ' |
After ten years, amortized cost | 149,141 | ' |
After ten years, estimated fair value | 145,177 | ' |
Total securities with single maturity date, amortized cost | 186,818 | ' |
Total securities with single maturity date, estimated fair value | 184,595 | ' |
Debt securities, amortized cost | 419,270 | ' |
Available-for-sale Securities | 417,833 | 393,965 |
U.S. Government agencies | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Investment securities not due at a single maturity date, amortized cost | 16,410 | ' |
Investment securities not due at a single maturity date, estimated fair value | 16,579 | ' |
U.S. Government agencies collateralized by residential mortgage obligations | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Investment securities not due at a single maturity date, amortized cost | 203,728 | ' |
Investment securities not due at a single maturity date, estimated fair value | 203,361 | ' |
Private label residential mortgage backed securities | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Investment securities not due at a single maturity date, amortized cost | 4,718 | ' |
Investment securities not due at a single maturity date, estimated fair value | 5,672 | ' |
Other equity securities | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Investment securities not due at a single maturity date, amortized cost | 7,596 | ' |
Investment securities not due at a single maturity date, estimated fair value | $7,626 | ' |
Fair_Value_Measurements_Fair_V
Fair Value Measurements - Fair Value by Balance Sheet Grouping (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Carrying Value | ' | ' |
Financial assets: | ' | ' |
Cash and due from banks | $32,190,000 | $22,405,000 |
Interest-earning deposits in other banks | 49,854,000 | 30,123,000 |
Federal funds sold | 154,000 | 428,000 |
Available-for-sale investment securities | 417,833,000 | 393,965,000 |
Loans, net | 505,501,000 | 385,185,000 |
Federal Home Loan Bank stock | 4,499,000 | 3,850,000 |
Accrued interest receivable | 4,901,000 | 4,267,000 |
Financial liabilities: | ' | ' |
Deposits | 943,789,000 | 751,432,000 |
Debt | ' | 4,000,000 |
Junior subordinated deferrable interest debentures | 5,155,000 | 5,155,000 |
Accrued interest payable | 134,000 | 174,000 |
Level 1 | ' | ' |
Financial assets: | ' | ' |
Cash and due from banks | 32,190,000 | 22,405,000 |
Interest-earning deposits in other banks | 49,854,000 | 30,123,000 |
Federal funds sold | 154,000 | 428,000 |
Available-for-sale investment securities | 7,626,000 | 7,948,000 |
Loans, net | 0 | 0 |
Accrued interest receivable | 22,000 | 22,000 |
Financial liabilities: | ' | ' |
Deposits | 769,903,000 | 614,556,000 |
Debt | ' | 0 |
Junior subordinated deferrable interest debentures | 0 | 0 |
Accrued interest payable | 0 | 0 |
Level 2 | ' | ' |
Financial assets: | ' | ' |
Cash and due from banks | 0 | 0 |
Interest-earning deposits in other banks | 0 | 0 |
Federal funds sold | 0 | 0 |
Available-for-sale investment securities | 410,207,000 | 386,017,000 |
Loans, net | 0 | 0 |
Accrued interest receivable | 2,739,000 | 2,395,000 |
Financial liabilities: | ' | ' |
Deposits | 173,397,000 | 137,401,000 |
Debt | ' | 4,016,000 |
Junior subordinated deferrable interest debentures | 0 | 0 |
Accrued interest payable | 110,000 | 149,000 |
Level 3 | ' | ' |
Financial assets: | ' | ' |
Cash and due from banks | 0 | 0 |
Interest-earning deposits in other banks | 0 | 0 |
Federal funds sold | 0 | 0 |
Available-for-sale investment securities | 0 | 0 |
Loans, net | 509,109,000 | 388,834,000 |
Accrued interest receivable | 2,140,000 | 1,850,000 |
Financial liabilities: | ' | ' |
Deposits | 0 | 0 |
Debt | ' | 0 |
Junior subordinated deferrable interest debentures | 2,603,000 | 2,990,000 |
Accrued interest payable | 24,000 | 25,000 |
Fair Value | ' | ' |
Financial assets: | ' | ' |
Cash and due from banks | 32,190,000 | 22,405,000 |
Interest-earning deposits in other banks | 49,854,000 | 30,123,000 |
Federal funds sold | 154,000 | 428,000 |
Available-for-sale investment securities | 417,833,000 | 393,965,000 |
Loans, net | 509,109,000 | 388,834,000 |
Accrued interest receivable | 4,901,000 | 4,267,000 |
Financial liabilities: | ' | ' |
Deposits | 943,300,000 | 751,957,000 |
Debt | ' | 4,016,000 |
Junior subordinated deferrable interest debentures | 2,603,000 | 2,990,000 |
Accrued interest payable | $134,000 | $174,000 |
Fair_Value_Measurements_Recurr
Fair Value Measurements - Recurring and Nonrecurring (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |
Carrying Value | Carrying Value | Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | Fair Value | Fair Value | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | U.S. Government agencies | U.S. Government agencies | U.S. Government agencies | U.S. Government agencies | U.S. Government agencies | U.S. Government agencies | U.S. Government agencies | U.S. Government agencies | Obligations of states and political subdivisions | Obligations of states and political subdivisions | Obligations of states and political subdivisions | Obligations of states and political subdivisions | Obligations of states and political subdivisions | Obligations of states and political subdivisions | Obligations of states and political subdivisions | Obligations of states and political subdivisions | U.S. Government agencies collateralized by residential mortgage obligations | U.S. Government agencies collateralized by residential mortgage obligations | U.S. Government agencies collateralized by residential mortgage obligations | U.S. Government agencies collateralized by residential mortgage obligations | U.S. Government agencies collateralized by residential mortgage obligations | U.S. Government agencies collateralized by residential mortgage obligations | U.S. Government agencies collateralized by residential mortgage obligations | U.S. Government agencies collateralized by residential mortgage obligations | Private label residential mortgage backed securities | Private label residential mortgage backed securities | Private label residential mortgage backed securities | Private label residential mortgage backed securities | Private label residential mortgage backed securities | Private label residential mortgage backed securities | Private label residential mortgage backed securities | Private label residential mortgage backed securities | Other equity securities | Other equity securities | Other equity securities | Other equity securities | Other equity securities | Other equity securities | Other equity securities | Other equity securities | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Real Estate Portfolio Segment | Consumer | Consumer | Consumer | Consumer | Consumer | Consumer | Consumer | Consumer | Consumer | Consumer | Consumer | Consumer | Consumer | Consumer | Consumer | Consumer | Consumer | Consumer | Consumer | Consumer | Consumer | Consumer | Consumer | Consumer | Consumer | Consumer | Lease financing receivable | Lease financing receivable | Lease financing receivable | Lease financing receivable | Lease financing receivable | Lease financing receivable | Lease financing receivable | Lease financing receivable | |||||||||
Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | Fair Value | Fair Value | Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | Fair Value | Fair Value | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | |||||||||||||||||||||||||||||||||||||
Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | Fair Value | Fair Value | Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | Fair Value | Fair Value | Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | Fair Value | Fair Value | Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | Fair Value | Fair Value | Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | Fair Value | Fair Value | Carrying Value | Carrying Value | Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | Fair Value | Fair Value | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Commercial and industrial | Commercial and industrial | Commercial and industrial | Commercial and industrial | Commercial and industrial | Commercial and industrial | Commercial and industrial | Commercial and industrial | Agricultural land and production | Agricultural land and production | Agricultural land and production | Agricultural land and production | Agricultural land and production | Agricultural land and production | Agricultural land and production | Agricultural land and production | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Owner occupied | Owner occupied | Owner occupied | Owner occupied | Owner occupied | Owner occupied | Owner occupied | Owner occupied | Real estate construction and other land loans | Real estate construction and other land loans | Real estate construction and other land loans | Real estate construction and other land loans | Real estate construction and other land loans | Real estate construction and other land loans | Real estate construction and other land loans | Real estate construction and other land loans | Commercial real estate | Commercial real estate | Commercial real estate | Commercial real estate | Commercial real estate | Commercial real estate | Commercial real estate | Commercial real estate | Agricultural real estate | Agricultural real estate | Agricultural real estate | Agricultural real estate | Agricultural real estate | Agricultural real estate | Agricultural real estate | Agricultural real estate | Other real estate | Other real estate | Other real estate | Other real estate | Other real estate | Other real estate | Other real estate | Other real estate | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Equity loans and lines of credit | Equity loans and lines of credit | Equity loans and lines of credit | Equity loans and lines of credit | Equity loans and lines of credit | Equity loans and lines of credit | Equity loans and lines of credit | Equity loans and lines of credit | Consumer and installment | Consumer and installment | Consumer and installment | Consumer and installment | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | Fair Value | Fair Value | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | Fair Value | Fair Value | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | Fair Value | Fair Value | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | Fair Value | Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | Fair Value | Fair Value | Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | Fair Value | Fair Value | Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | Fair Value | Fair Value | Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | Fair Value | Fair Value | Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | Fair Value | Fair Value | Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | Fair Value | Fair Value | Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | Fair Value | Fair Value | Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | Fair Value | Fair Value | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available-for-sale investment securities | ' | ' | ' | ' | ' | ' | ' | ' | $417,833,000 | $393,965,000 | $7,626,000 | $7,948,000 | $410,207,000 | $386,017,000 | $0 | $0 | $417,833,000 | $393,965,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $16,579,000 | $9,454,000 | $0 | $0 | $16,579,000 | $9,454,000 | $0 | $0 | $184,595,000 | $161,678,000 | $0 | $0 | $184,595,000 | $161,678,000 | $0 | $0 | $203,361,000 | $208,510,000 | $0 | $0 | $203,361,000 | $208,510,000 | $0 | $0 | $5,672,000 | $6,375,000 | $0 | $0 | $5,672,000 | $6,375,000 | $7,626,000 | $7,948,000 | $0 | $0 | $0 | $0 | $7,626,000 | $7,948,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans receivable | ' | ' | ' | ' | ' | ' | ' | ' | 505,501,000 | 385,185,000 | 0 | 0 | 0 | 0 | 509,109,000 | 388,834,000 | 509,109,000 | 388,834,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,355,000 | 5,386,000 | 0 | 0 | 0 | 0 | 671,000 | 5,290,000 | 671,000 | 5,290,000 | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | 0 | 610,000 | 0 | 610,000 | 0 | 0 | 0 | 0 | 0 | 610,000 | 0 | 610,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | 0 | 0 | 5,057,000 | 0 | 5,057,000 | 0 | 0 | 0 | 0 | 0 | 194,000 | 0 | 194,000 | 0 | 0 | 0 | 0 | 0 | 4,863,000 | 0 | 4,863,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | 0 | 61,000 | 233,000 | 61,000 | 233,000 | 0 | 0 | 0 | 0 | 61,000 | 233,000 | 61,000 | 233,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Other real estate owned | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets, fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | 0 | 671,000 | 5,290,000 | 671,000 | 5,290,000 | 7,626,000 | 7,948,000 | 410,207,000 | 386,017,000 | 0 | 0 | 417,833,000 | 393,965,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Valuation allowance | 9,732,000 | 10,214,000 | 9,732,000 | 10,214,000 | 9,601,000 | 10,133,000 | 10,140,000 | 11,396,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 684,000 | 96,000 | ' | ' | ' | ' | ' | ' | ' | ' | 2,846,000 | 2,792,000 | 2,676,000 | 2,678,000 | 2,799,000 | 2,266,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,734,000 | 5,057,000 | 5,877,000 | 6,006,000 | 5,474,000 | 7,155,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,317,000 | 1,252,000 | 1,541,000 | 1,511,000 | 1,494,000 | 1,836,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Provision for credit losses | $0 | $0 | $0 | $500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $588,000 | $19,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_Value_Measurements_Level_
Fair Value Measurements - Level 3 Inputs (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Level 3 | Level 3 | Fair Value | Fair Value | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Minimum | Maximum | Weighted Average | Weighted Average | Weighted Average | |
Impaired loans | Impaired loans | Impaired loans | Impaired loans | Real estate construction and other land loans | Real estate construction and other land loans | Commercial and industrial | Real estate construction and other land loans | Equity loans and lines of credit | |||||
Level 3 | Level 3 | Fair Value | Fair Value | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | |||||
Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | |||||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans receivable | $509,109,000 | $388,834,000 | $509,109,000 | $388,834,000 | $671,000 | $5,290,000 | $671,000 | $5,290,000 | ' | ' | ' | ' | ' |
Adjustments for lack of sales activity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -40.00% | ' | ' |
Adjustments for absorption rate, discount rate and lot value appreciation/depreciation | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | -30.00% | ' | -25.00% | ' |
Fair Value Inputs, Discount for Adjustments in Home Values and Selling Costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -15.00% |
Loans_Summary_of_outstanding_l
Loans - Summary of outstanding loans (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Loans | ' | ' |
Loans | $515,469,000 | $395,771,000 |
% of Total Loans | 100.00% | 100.00% |
Deferred loan fees, net | -236,000 | -453,000 |
Total gross loans | 515,233,000 | 395,318,000 |
Allowance for credit losses | -9,732,000 | -10,133,000 |
Total loans | 505,501,000 | 385,185,000 |
Acquired | ' | ' |
Loans | ' | ' |
Total loans | 108,000,000 | ' |
Small Business Administration programs | ' | ' |
Loans | ' | ' |
Real estate and commercial loans | 6,315,000 | 5,586,000 |
Commercial | ' | ' |
Loans | ' | ' |
Loans | 133,661,000 | 104,555,000 |
% of Total Loans | 26.00% | 26.40% |
Commercial | Commercial and industrial | ' | ' |
Loans | ' | ' |
Loans | 89,991,000 | 77,956,000 |
% of Total Loans | 17.50% | 19.70% |
Commercial | Agricultural land and production | ' | ' |
Loans | ' | ' |
Loans | 43,670,000 | 26,599,000 |
% of Total Loans | 8.50% | 6.70% |
Real Estate Portfolio Segment | ' | ' |
Loans | ' | ' |
Loans | 319,738,000 | 237,938,000 |
% of Total Loans | 62.00% | 60.10% |
Real Estate Portfolio Segment | Owner occupied | ' | ' |
Loans | ' | ' |
Loans | 155,171,000 | 114,444,000 |
% of Total Loans | 30.00% | 28.90% |
Real Estate Portfolio Segment | Real estate construction and other land loans | ' | ' |
Loans | ' | ' |
Loans | 35,327,000 | 33,199,000 |
% of Total Loans | 6.90% | 8.40% |
Real Estate Portfolio Segment | Commercial real estate | ' | ' |
Loans | ' | ' |
Loans | 85,457,000 | 53,797,000 |
% of Total Loans | 16.60% | 13.60% |
Real Estate Portfolio Segment | Agricultural real estate | ' | ' |
Loans | ' | ' |
Loans | 39,857,000 | 28,400,000 |
% of Total Loans | 7.70% | 7.20% |
Real Estate Portfolio Segment | Other real estate | ' | ' |
Loans | ' | ' |
Loans | 3,926,000 | 8,098,000 |
% of Total Loans | 0.80% | 2.00% |
Consumer | ' | ' |
Loans | ' | ' |
Loans | 62,070,000 | 53,278,000 |
% of Total Loans | 12.00% | 13.50% |
Consumer | Equity loans and lines of credit | ' | ' |
Loans | ' | ' |
Loans | 51,293,000 | 42,932,000 |
% of Total Loans | 10.00% | 10.90% |
Consumer | Consumer and installment | ' | ' |
Loans | ' | ' |
Loans | $10,777,000 | $10,346,000 |
% of Total Loans | 2.00% | 2.60% |
Loans_Purchased_creditimpaired
Loans - Purchased credit-impaired loans (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Loans | ' | ' |
Outstanding balance | $2,489,000 | $0 |
Carrying amount, net of allowance of $0 | 2,489,000 | 0 |
Allowance for loan losses | 0 | 0 |
Real estate | ' | ' |
Loans | ' | ' |
Outstanding balance | $2,489,000 | $0 |
Loans_Accretable_yield_movemen
Loans - Accretable yield movement schedule (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Loans and Leases Receivable Disclosure [Abstract] | ' | ' | ' | ' |
Balance at beginning of period | $0 | $0 | $0 | $0 |
Additions | 105,000 | 0 | 105,000 | 0 |
Accretion | -70,000 | 0 | -70,000 | 0 |
Reclassification from (to) non-accretable difference | 77,000 | 0 | 77,000 | 0 |
Disposals | 0 | 0 | 0 | 0 |
Balance at end of period | $112,000 | $0 | $112,000 | $0 |
Loans_Credit_impaired_loans_aq
Loans - Credit impaired loans aquired during the period (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ' | ' |
Contractually required payments receivable at acquisition | $6,912,000 | $0 |
Cash flows expected to be collected at acquisition | 2,681,000 | 0 |
Fair value of in acquired loans at acquisition | 2,576,000 | 0 |
Loans acquired during the period | 1,411,000 | 0 |
Loans at the end of the period | 1,411,000 | 0 |
Real estate | ' | ' |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ' | ' |
Contractually required payments receivable at acquisition | $6,912,000 | $0 |
Allowance_for_Credit_Losses_Al
Allowance for Credit Losses - Allowance for Credit Losses (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2012 | |
quarter | quarter | quarter | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Lookback period used in reserve analysis | 20 | ' | 20 | ' | ' | 16 | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Allowance for credit losses, beginning balance | ' | ' | $10,133,000 | $11,396,000 | $9,601,000 | ' | $10,140,000 |
Provision charged to operations | 0 | 0 | 0 | 500,000 | ' | ' | ' |
Losses charged to allowance | -56,000 | -220,000 | -792,000 | -2,401,000 | ' | ' | ' |
Recoveries | 187,000 | 294,000 | 391,000 | 719,000 | ' | ' | ' |
Allowance for credit losses, ending balance | 9,732,000 | 10,214,000 | 9,732,000 | 10,214,000 | 9,601,000 | ' | 10,140,000 |
Ending balance: individually evaluated for impairment | 1,081,000 | ' | 1,081,000 | ' | ' | 510,000 | ' |
Ending balance: collectively evaluated for impairment | 8,651,000 | ' | 8,651,000 | ' | ' | 9,623,000 | ' |
Commercial | ' | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Allowance for credit losses, beginning balance | ' | ' | 2,676,000 | 2,266,000 | 2,792,000 | ' | 2,799,000 |
Provision charged to operations | -52,000 | -329,000 | 622,000 | 33,000 | ' | ' | ' |
Losses charged to allowance | -5,000 | -1,000 | -706,000 | -123,000 | ' | ' | ' |
Recoveries | 111,000 | 209,000 | 254,000 | 502,000 | ' | ' | ' |
Allowance for credit losses, ending balance | 2,846,000 | 2,678,000 | 2,846,000 | 2,678,000 | 2,792,000 | ' | 2,799,000 |
Ending balance: individually evaluated for impairment | 632,000 | ' | 632,000 | ' | ' | 40,000 | ' |
Ending balance: collectively evaluated for impairment | 2,214,000 | ' | 2,214,000 | ' | ' | 2,636,000 | ' |
Real Estate Portfolio Segment | ' | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Allowance for credit losses, beginning balance | ' | ' | 5,877,000 | 7,155,000 | 5,057,000 | ' | 5,474,000 |
Provision charged to operations | -331,000 | 532,000 | -1,151,000 | 643,000 | ' | ' | ' |
Losses charged to allowance | 0 | 0 | 0 | -1,792,000 | ' | ' | ' |
Recoveries | 8,000 | 0 | 8,000 | 0 | ' | ' | ' |
Allowance for credit losses, ending balance | 4,734,000 | 6,006,000 | 4,734,000 | 6,006,000 | 5,057,000 | ' | 5,474,000 |
Ending balance: individually evaluated for impairment | 214,000 | ' | 214,000 | ' | ' | 465,000 | ' |
Ending balance: collectively evaluated for impairment | 4,520,000 | ' | 4,520,000 | ' | ' | 5,412,000 | ' |
Consumer | ' | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Allowance for credit losses, beginning balance | ' | ' | 1,541,000 | 1,836,000 | 1,252,000 | ' | 1,494,000 |
Provision charged to operations | 48,000 | 151,000 | -267,000 | -56,000 | ' | ' | ' |
Losses charged to allowance | -51,000 | -219,000 | -86,000 | -486,000 | ' | ' | ' |
Recoveries | 68,000 | 85,000 | 129,000 | 217,000 | ' | ' | ' |
Allowance for credit losses, ending balance | 1,317,000 | 1,511,000 | 1,317,000 | 1,511,000 | 1,252,000 | ' | 1,494,000 |
Ending balance: individually evaluated for impairment | 235,000 | ' | 235,000 | ' | ' | 5,000 | ' |
Ending balance: collectively evaluated for impairment | 1,082,000 | ' | 1,082,000 | ' | ' | 1,536,000 | ' |
Unallocated | ' | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Allowance for credit losses, beginning balance | ' | ' | 39,000 | 139,000 | 500,000 | ' | 373,000 |
Provision charged to operations | 335,000 | -354,000 | 796,000 | -120,000 | ' | ' | ' |
Losses charged to allowance | 0 | 0 | 0 | 0 | ' | ' | ' |
Recoveries | 0 | 0 | 0 | 0 | ' | ' | ' |
Allowance for credit losses, ending balance | 835,000 | 19,000 | 835,000 | 19,000 | 500,000 | ' | 373,000 |
Ending balance: individually evaluated for impairment | 0 | ' | 0 | ' | ' | 0 | ' |
Ending balance: collectively evaluated for impairment | $835,000 | ' | $835,000 | ' | ' | $39,000 | ' |
Allowance_for_Credit_Losses_Lo
Allowance for Credit Losses - Loan Portfolio by Impairment Methodology (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Loans | $515,469 | $395,771 |
Ending balance: individually evaluated for impairment | 14,017 | 17,105 |
Ending balance: collectively evaluated for impairment | 501,452 | 378,666 |
Commercial | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Loans | 133,661 | 104,555 |
Ending balance: individually evaluated for impairment | 1,649 | 2,405 |
Ending balance: collectively evaluated for impairment | 132,012 | 102,150 |
Real estate | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Loans | 319,738 | 237,938 |
Ending balance: individually evaluated for impairment | 9,858 | 12,868 |
Ending balance: collectively evaluated for impairment | 309,880 | 225,070 |
Consumer | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Loans | 62,070 | 53,278 |
Ending balance: individually evaluated for impairment | 2,510 | 1,832 |
Ending balance: collectively evaluated for impairment | $59,560 | $51,446 |
Allowance_for_Credit_Losses_Lo1
Allowance for Credit Losses - Loan Portfolio by Risk Rating (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment | ' | ' |
Loans | $515,469 | $395,771 |
Pass | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 469,263 | 354,169 |
Special Mention | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 18,588 | 11,836 |
Substandard | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 27,618 | 29,766 |
Doubtful | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 0 | 0 |
Commercial | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 133,661 | 104,555 |
Commercial | Commercial and industrial | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 89,991 | 77,956 |
Commercial | Agricultural land and production | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 43,670 | 26,599 |
Commercial | Pass | Commercial and industrial | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 83,958 | 71,125 |
Commercial | Pass | Agricultural land and production | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 43,670 | 26,599 |
Commercial | Special Mention | Commercial and industrial | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 2,626 | 824 |
Commercial | Special Mention | Agricultural land and production | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 0 | 0 |
Commercial | Substandard | Commercial and industrial | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 3,407 | 6,007 |
Commercial | Substandard | Agricultural land and production | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 0 | 0 |
Commercial | Doubtful | Commercial and industrial | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 0 | 0 |
Commercial | Doubtful | Agricultural land and production | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 0 | 0 |
Real Estate Portfolio Segment | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 319,738 | 237,938 |
Real Estate Portfolio Segment | Owner occupied | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 155,171 | 114,444 |
Real Estate Portfolio Segment | Real estate construction and other land loans | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 35,327 | 33,199 |
Real Estate Portfolio Segment | Commercial real estate | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 85,457 | 53,797 |
Real Estate Portfolio Segment | Agricultural real estate | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 39,857 | 28,400 |
Real Estate Portfolio Segment | Other real estate | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 3,926 | 8,098 |
Real Estate Portfolio Segment | Pass | Owner occupied | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 142,344 | 107,281 |
Real Estate Portfolio Segment | Pass | Real estate construction and other land loans | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 25,642 | 18,517 |
Real Estate Portfolio Segment | Pass | Commercial real estate | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 76,661 | 44,880 |
Real Estate Portfolio Segment | Pass | Agricultural real estate | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 37,856 | 26,883 |
Real Estate Portfolio Segment | Pass | Other real estate | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 3,926 | 8,098 |
Real Estate Portfolio Segment | Special Mention | Owner occupied | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 5,294 | 1,831 |
Real Estate Portfolio Segment | Special Mention | Real estate construction and other land loans | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 2,405 | 3,377 |
Real Estate Portfolio Segment | Special Mention | Commercial real estate | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 3,745 | 3,952 |
Real Estate Portfolio Segment | Special Mention | Agricultural real estate | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 2,001 | 1,517 |
Real Estate Portfolio Segment | Special Mention | Other real estate | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 0 | 0 |
Real Estate Portfolio Segment | Substandard | Owner occupied | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 7,533 | 5,332 |
Real Estate Portfolio Segment | Substandard | Real estate construction and other land loans | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 7,280 | 11,305 |
Real Estate Portfolio Segment | Substandard | Commercial real estate | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 5,051 | 4,965 |
Real Estate Portfolio Segment | Substandard | Agricultural real estate | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 0 | 0 |
Real Estate Portfolio Segment | Substandard | Other real estate | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 0 | 0 |
Real Estate Portfolio Segment | Doubtful | Owner occupied | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 0 | 0 |
Real Estate Portfolio Segment | Doubtful | Real estate construction and other land loans | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 0 | 0 |
Real Estate Portfolio Segment | Doubtful | Commercial real estate | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 0 | 0 |
Real Estate Portfolio Segment | Doubtful | Agricultural real estate | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 0 | 0 |
Real Estate Portfolio Segment | Doubtful | Other real estate | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 0 | 0 |
Consumer | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 62,070 | 53,278 |
Consumer | Equity loans and lines of credit | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 51,293 | 42,932 |
Consumer | Consumer and installment | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 10,777 | 10,346 |
Consumer | Pass | Equity loans and lines of credit | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 44,508 | 40,527 |
Consumer | Pass | Consumer and installment | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 10,698 | 10,259 |
Consumer | Special Mention | Equity loans and lines of credit | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 2,465 | 258 |
Consumer | Special Mention | Consumer and installment | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 52 | 77 |
Consumer | Substandard | Equity loans and lines of credit | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 4,320 | 2,147 |
Consumer | Substandard | Consumer and installment | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 27 | 10 |
Consumer | Doubtful | Equity loans and lines of credit | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | 0 | 0 |
Consumer | Doubtful | Consumer and installment | ' | ' |
Financing Receivable, Recorded Investment | ' | ' |
Loans | $0 | $0 |
Allowance_for_Credit_Losses_Lo2
Allowance for Credit Losses - Loan Portfolio Aging (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days Past Due | $2,533,000 | $27,000 |
60-89 Days Past Due | 59,000 | 213,000 |
Greater Than 90 Days Past Due | 812,000 | 0 |
Total Past Due | 3,404,000 | 240,000 |
Current | 512,065,000 | 395,531,000 |
Recorded Investment Greater Than 90 Days Accruing | 0 | 0 |
Non-accrual | 8,022,000 | 9,695,000 |
Loans | 515,469,000 | 395,771,000 |
Commercial | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Loans | 133,661,000 | 104,555,000 |
Commercial | Commercial and industrial | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days Past Due | 1,497,000 | 0 |
60-89 Days Past Due | 0 | 0 |
Greater Than 90 Days Past Due | 78,000 | 0 |
Total Past Due | 1,575,000 | 0 |
Current | 88,416,000 | 77,956,000 |
Recorded Investment Greater Than 90 Days Accruing | 0 | 0 |
Non-accrual | 1,649,000 | 0 |
Loans | 89,991,000 | 77,956,000 |
Commercial | Agricultural land and production | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days Past Due | 0 | 0 |
60-89 Days Past Due | 0 | 0 |
Greater Than 90 Days Past Due | 0 | 0 |
Total Past Due | 0 | 0 |
Current | 43,670,000 | 26,599,000 |
Recorded Investment Greater Than 90 Days Accruing | 0 | 0 |
Non-accrual | 0 | 0 |
Loans | 43,670,000 | 26,599,000 |
Real Estate Portfolio Segment | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Loans | 319,738,000 | 237,938,000 |
Real Estate Portfolio Segment | Owner occupied | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days Past Due | 555,000 | 0 |
60-89 Days Past Due | 0 | 213,000 |
Greater Than 90 Days Past Due | 229,000 | 0 |
Total Past Due | 784,000 | 213,000 |
Current | 154,387,000 | 114,231,000 |
Recorded Investment Greater Than 90 Days Accruing | 0 | 0 |
Non-accrual | 2,198,000 | 1,575,000 |
Loans | 155,171,000 | 114,444,000 |
Real Estate Portfolio Segment | Real estate construction and other land loans | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days Past Due | 0 | 0 |
60-89 Days Past Due | 0 | 0 |
Greater Than 90 Days Past Due | 0 | 0 |
Total Past Due | 0 | 0 |
Current | 35,327,000 | 33,199,000 |
Recorded Investment Greater Than 90 Days Accruing | 0 | 0 |
Non-accrual | 1,499,000 | 6,288,000 |
Loans | 35,327,000 | 33,199,000 |
Real Estate Portfolio Segment | Commercial real estate | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days Past Due | 0 | 0 |
60-89 Days Past Due | 0 | 0 |
Greater Than 90 Days Past Due | 0 | 0 |
Total Past Due | 0 | 0 |
Current | 85,457,000 | 53,797,000 |
Recorded Investment Greater Than 90 Days Accruing | 0 | 0 |
Non-accrual | 167,000 | 0 |
Loans | 85,457,000 | 53,797,000 |
Real Estate Portfolio Segment | Agricultural real estate | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days Past Due | 0 | 0 |
60-89 Days Past Due | 0 | 0 |
Greater Than 90 Days Past Due | 0 | 0 |
Total Past Due | 0 | 0 |
Current | 39,857,000 | 28,400,000 |
Recorded Investment Greater Than 90 Days Accruing | 0 | 0 |
Non-accrual | 0 | 0 |
Loans | 39,857,000 | 28,400,000 |
Real Estate Portfolio Segment | Other real estate | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days Past Due | 0 | 0 |
60-89 Days Past Due | 0 | 0 |
Greater Than 90 Days Past Due | 0 | 0 |
Total Past Due | 0 | 0 |
Current | 3,926,000 | 8,098,000 |
Recorded Investment Greater Than 90 Days Accruing | 0 | 0 |
Non-accrual | 0 | 0 |
Loans | 3,926,000 | 8,098,000 |
Consumer | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Loans | 62,070,000 | 53,278,000 |
Consumer | Equity loans and lines of credit | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days Past Due | 424,000 | 0 |
60-89 Days Past Due | 59,000 | 0 |
Greater Than 90 Days Past Due | 505,000 | 0 |
Total Past Due | 988,000 | 0 |
Current | 50,305,000 | 42,932,000 |
Recorded Investment Greater Than 90 Days Accruing | 0 | 0 |
Non-accrual | 2,497,000 | 1,832,000 |
Loans | 51,293,000 | 42,932,000 |
Consumer | Consumer and installment | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days Past Due | 57,000 | 27,000 |
60-89 Days Past Due | 0 | 0 |
Greater Than 90 Days Past Due | 0 | 0 |
Total Past Due | 57,000 | 27,000 |
Current | 10,720,000 | 10,319,000 |
Recorded Investment Greater Than 90 Days Accruing | 0 | 0 |
Non-accrual | 12,000 | 0 |
Loans | $10,777,000 | $10,346,000 |
Allowance_for_Credit_Losses_Im
Allowance for Credit Losses - Impaired Loans (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Recorded Investment, With no related allowance recorded | $9,529,000 | ' | $9,529,000 | ' | $2,875,000 |
Upaid Principal Balance, With no related allowance recorded | 11,752,000 | ' | 11,752,000 | ' | 3,722,000 |
Recorded Investment, With an allowance recorded | 4,488,000 | ' | 4,488,000 | ' | 14,230,000 |
Unpaid Principal Balance, With an allowance recorded | 5,140,000 | ' | 5,140,000 | ' | 15,336,000 |
Related Allowance | 1,081,000 | ' | 1,081,000 | ' | 510,000 |
Total Recorded Investment | 14,017,000 | ' | 14,017,000 | ' | 17,105,000 |
Total Unpaid Principal Balance | 16,892,000 | ' | 16,892,000 | ' | 19,058,000 |
Average Recorded Investment, With no related allowance recorded | 7,183,000 | 7,985,000 | 7,249,000 | 9,299,000 | ' |
Interest Income Recognized, With no related allowance recorded | 0 | 0 | 0 | 0 | ' |
Average Recorded Investment, With an allowance recorded | 7,362,000 | 9,640,000 | 7,763,000 | 9,457,000 | ' |
Interest Income Recognized, With an allowance recorded | 135,000 | 142,000 | 400,000 | 463,000 | ' |
Average Recorded Investment, Total | 14,545,000 | 17,625,000 | 15,012,000 | 18,756,000 | ' |
Interest Income Recognized, Total | 135,000 | 142,000 | 400,000 | 463,000 | ' |
Forgone interest on nonaccrual loans | 145,000 | 181,000 | 523,000 | 525,000 | ' |
Commercial | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Recorded Investment, With no related allowance recorded | 393,000 | ' | 393,000 | ' | 0 |
Upaid Principal Balance, With no related allowance recorded | 423,000 | ' | 423,000 | ' | 0 |
Recorded Investment, With an allowance recorded | 1,256,000 | ' | 1,256,000 | ' | 2,405,000 |
Unpaid Principal Balance, With an allowance recorded | 1,284,000 | ' | 1,284,000 | ' | 2,405,000 |
Related Allowance | 632,000 | ' | 632,000 | ' | 40,000 |
Average Recorded Investment, With no related allowance recorded | 412,000 | 600,000 | 309,000 | 1,235,000 | ' |
Interest Income Recognized, With no related allowance recorded | 0 | 0 | 0 | 0 | ' |
Average Recorded Investment, With an allowance recorded | 1,271,000 | 1,849,000 | 1,404,000 | 1,624,000 | ' |
Interest Income Recognized, With an allowance recorded | 15,000 | 50,000 | 80,000 | 178,000 | ' |
Commercial and industrial | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Recorded Investment, With no related allowance recorded | 393,000 | ' | 393,000 | ' | 0 |
Upaid Principal Balance, With no related allowance recorded | 423,000 | ' | 423,000 | ' | 0 |
Recorded Investment, With an allowance recorded | 1,256,000 | ' | 1,256,000 | ' | 2,405,000 |
Unpaid Principal Balance, With an allowance recorded | 1,284,000 | ' | 1,284,000 | ' | 2,405,000 |
Related Allowance | 632,000 | ' | 632,000 | ' | 40,000 |
Average Recorded Investment, With no related allowance recorded | 412,000 | 600,000 | 309,000 | 1,235,000 | ' |
Interest Income Recognized, With no related allowance recorded | 0 | 0 | 0 | 0 | ' |
Average Recorded Investment, With an allowance recorded | 1,271,000 | 1,849,000 | 1,404,000 | 1,624,000 | ' |
Interest Income Recognized, With an allowance recorded | 15,000 | 50,000 | 80,000 | 178,000 | ' |
Agricultural land and production | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Recorded Investment, With no related allowance recorded | 0 | ' | 0 | ' | 0 |
Upaid Principal Balance, With no related allowance recorded | 0 | ' | 0 | ' | 0 |
Recorded Investment, With an allowance recorded | 0 | ' | 0 | ' | 0 |
Unpaid Principal Balance, With an allowance recorded | 0 | ' | 0 | ' | 0 |
Related Allowance | 0 | ' | 0 | ' | 0 |
Average Recorded Investment, With no related allowance recorded | 0 | 0 | 0 | 0 | ' |
Interest Income Recognized, With no related allowance recorded | 0 | 0 | 0 | 0 | ' |
Average Recorded Investment, With an allowance recorded | 0 | 0 | 0 | 0 | ' |
Interest Income Recognized, With an allowance recorded | 0 | 0 | 0 | 0 | ' |
Real estate | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Recorded Investment, With no related allowance recorded | 7,198,000 | ' | 7,198,000 | ' | 1,352,000 |
Upaid Principal Balance, With no related allowance recorded | 8,623,000 | ' | 8,623,000 | ' | 1,888,000 |
Recorded Investment, With an allowance recorded | 2,660,000 | ' | 2,660,000 | ' | 11,516,000 |
Unpaid Principal Balance, With an allowance recorded | 3,278,000 | ' | 3,278,000 | ' | 12,608,000 |
Related Allowance | 214,000 | ' | 214,000 | ' | 465,000 |
Average Recorded Investment, With no related allowance recorded | 4,700,000 | 5,770,000 | 4,964,000 | 6,498,000 | ' |
Interest Income Recognized, With no related allowance recorded | 0 | 0 | 0 | 0 | ' |
Average Recorded Investment, With an allowance recorded | 5,520,000 | 7,479,000 | 5,894,000 | 7,242,000 | ' |
Interest Income Recognized, With an allowance recorded | 120,000 | 92,000 | 320,000 | 285,000 | ' |
Owner occupied | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Recorded Investment, With no related allowance recorded | 1,804,000 | ' | 1,804,000 | ' | 0 |
Upaid Principal Balance, With no related allowance recorded | 2,643,000 | ' | 2,643,000 | ' | 0 |
Recorded Investment, With an allowance recorded | 1,790,000 | ' | 1,790,000 | ' | 1,575,000 |
Unpaid Principal Balance, With an allowance recorded | 1,963,000 | ' | 1,963,000 | ' | 1,733,000 |
Related Allowance | 49,000 | ' | 49,000 | ' | 165,000 |
Average Recorded Investment, With no related allowance recorded | 2,196,000 | 992,000 | 1,681,000 | 747,000 | ' |
Interest Income Recognized, With no related allowance recorded | 0 | 0 | 0 | 0 | ' |
Average Recorded Investment, With an allowance recorded | 1,471,000 | 646,000 | 1,454,000 | 662,000 | ' |
Interest Income Recognized, With an allowance recorded | 35,000 | 0 | 65,000 | 0 | ' |
Real estate construction and other land loans | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Recorded Investment, With no related allowance recorded | 5,227,000 | ' | 5,227,000 | ' | 1,352,000 |
Upaid Principal Balance, With no related allowance recorded | 5,431,000 | ' | 5,431,000 | ' | 1,888,000 |
Recorded Investment, With an allowance recorded | 870,000 | ' | 870,000 | ' | 9,941,000 |
Unpaid Principal Balance, With an allowance recorded | 1,315,000 | ' | 1,315,000 | ' | 10,875,000 |
Related Allowance | 165,000 | ' | 165,000 | ' | 300,000 |
Average Recorded Investment, With no related allowance recorded | 2,172,000 | 4,778,000 | 3,001,000 | 5,551,000 | ' |
Interest Income Recognized, With no related allowance recorded | 0 | 0 | 0 | 0 | ' |
Average Recorded Investment, With an allowance recorded | 4,049,000 | 6,833,000 | 4,440,000 | 6,387,000 | ' |
Interest Income Recognized, With an allowance recorded | 85,000 | 92,000 | 255,000 | 285,000 | ' |
Commercial real estate | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Recorded Investment, With no related allowance recorded | 167,000 | ' | 167,000 | ' | 0 |
Upaid Principal Balance, With no related allowance recorded | 549,000 | ' | 549,000 | ' | 0 |
Recorded Investment, With an allowance recorded | 0 | ' | 0 | ' | 0 |
Unpaid Principal Balance, With an allowance recorded | 0 | ' | 0 | ' | 0 |
Related Allowance | 0 | ' | 0 | ' | 0 |
Average Recorded Investment, With no related allowance recorded | 332,000 | 0 | 282,000 | 200,000 | ' |
Interest Income Recognized, With no related allowance recorded | 0 | 0 | 0 | 0 | ' |
Average Recorded Investment, With an allowance recorded | 0 | 0 | 0 | 193,000 | ' |
Interest Income Recognized, With an allowance recorded | 0 | 0 | 0 | 0 | ' |
Agricultural real estate | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Recorded Investment, With no related allowance recorded | 0 | ' | 0 | ' | 0 |
Upaid Principal Balance, With no related allowance recorded | 0 | ' | 0 | ' | 0 |
Recorded Investment, With an allowance recorded | 0 | ' | 0 | ' | 0 |
Unpaid Principal Balance, With an allowance recorded | 0 | ' | 0 | ' | 0 |
Related Allowance | 0 | ' | 0 | ' | 0 |
Average Recorded Investment, With no related allowance recorded | 0 | 0 | 0 | 0 | ' |
Interest Income Recognized, With no related allowance recorded | 0 | 0 | 0 | 0 | ' |
Average Recorded Investment, With an allowance recorded | 0 | 0 | 0 | 0 | ' |
Interest Income Recognized, With an allowance recorded | 0 | 0 | 0 | 0 | ' |
Other real estate | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Recorded Investment, With no related allowance recorded | 0 | ' | 0 | ' | 0 |
Upaid Principal Balance, With no related allowance recorded | 0 | ' | 0 | ' | 0 |
Recorded Investment, With an allowance recorded | 0 | ' | 0 | ' | 0 |
Unpaid Principal Balance, With an allowance recorded | 0 | ' | 0 | ' | 0 |
Related Allowance | 0 | ' | 0 | ' | 0 |
Average Recorded Investment, With no related allowance recorded | 0 | 0 | 0 | 0 | ' |
Interest Income Recognized, With no related allowance recorded | 0 | 0 | 0 | 0 | ' |
Average Recorded Investment, With an allowance recorded | 0 | 0 | 0 | 0 | ' |
Interest Income Recognized, With an allowance recorded | 0 | 0 | 0 | 0 | ' |
Consumer | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Recorded Investment, With no related allowance recorded | 1,938,000 | ' | 1,938,000 | ' | 1,523,000 |
Upaid Principal Balance, With no related allowance recorded | 2,706,000 | ' | 2,706,000 | ' | 1,834,000 |
Recorded Investment, With an allowance recorded | 572,000 | ' | 572,000 | ' | 309,000 |
Unpaid Principal Balance, With an allowance recorded | 578,000 | ' | 578,000 | ' | 323,000 |
Related Allowance | 235,000 | ' | 235,000 | ' | 5,000 |
Average Recorded Investment, With no related allowance recorded | 2,071,000 | 1,615,000 | 1,976,000 | 1,566,000 | ' |
Interest Income Recognized, With no related allowance recorded | 0 | 0 | 0 | 0 | ' |
Average Recorded Investment, With an allowance recorded | 571,000 | 312,000 | 465,000 | 591,000 | ' |
Interest Income Recognized, With an allowance recorded | 0 | 0 | 0 | 0 | ' |
Equity loans and lines of credit | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Recorded Investment, With no related allowance recorded | 1,926,000 | ' | 1,926,000 | ' | 1,523,000 |
Upaid Principal Balance, With no related allowance recorded | 2,691,000 | ' | 2,691,000 | ' | 1,834,000 |
Recorded Investment, With an allowance recorded | 572,000 | ' | 572,000 | ' | 309,000 |
Unpaid Principal Balance, With an allowance recorded | 578,000 | ' | 578,000 | ' | 323,000 |
Related Allowance | 235,000 | ' | 235,000 | ' | 5,000 |
Average Recorded Investment, With no related allowance recorded | 2,057,000 | 1,615,000 | 1,966,000 | 1,566,000 | ' |
Interest Income Recognized, With no related allowance recorded | 0 | 0 | 0 | 0 | ' |
Average Recorded Investment, With an allowance recorded | 571,000 | 289,000 | 465,000 | 543,000 | ' |
Interest Income Recognized, With an allowance recorded | 0 | 0 | 0 | 0 | ' |
Consumer and installment | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Recorded Investment, With no related allowance recorded | 12,000 | ' | 12,000 | ' | 0 |
Upaid Principal Balance, With no related allowance recorded | 15,000 | ' | 15,000 | ' | 0 |
Recorded Investment, With an allowance recorded | 0 | ' | 0 | ' | 0 |
Unpaid Principal Balance, With an allowance recorded | 0 | ' | 0 | ' | 0 |
Related Allowance | 0 | ' | 0 | ' | 0 |
Average Recorded Investment, With no related allowance recorded | 14,000 | 0 | 10,000 | 0 | ' |
Interest Income Recognized, With no related allowance recorded | 0 | 0 | 0 | 0 | ' |
Average Recorded Investment, With an allowance recorded | 0 | 23,000 | 0 | 48,000 | ' |
Interest Income Recognized, With an allowance recorded | $0 | $0 | $0 | $0 | ' |
Allowance_for_Credit_Losses_Tr
Allowance for Credit Losses - Troubled Debt Restructurings (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' |
Carrying amount, net of allowance of $0 | $2,489,000 | ' | $2,489,000 | ' | $0 |
Troubled debt restructurings included in impaired and nonaccrual loans | 10,766,000 | 17,036,000 | 10,766,000 | 17,036,000 | ' |
Reserves specific to modified loans | 865,000 | ' | 865,000 | ' | ' |
Defaults on troubled debt restructurings | 0 | 0 | 0 | 0 | ' |
Increase in allowance related to TDR's with subsequent defaults | ' | ' | 6,000 | 427,000 | ' |
Loans and Leases Receivable, Impaired, Commitment to Lend | 0 | ' | 0 | ' | ' |
Real Estate Portfolio Segment | Owner occupied | ' | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' |
Financing Receivable, Modifications, Numer of Contracts Modified During Period | ' | ' | ' | 2 | ' |
Financing Receivable, Modifications, Pre-Modification Recorded Investment of Loans Modified During Period | ' | ' | ' | 500,000 | ' |
Financing Receivable, Modifications, Amount of Principal Modifications Made During Period | ' | ' | ' | 0 | ' |
Financing Receivable, Modifications, Post-Modification Recorded Investment of Loans Modified During Period | ' | ' | ' | 500,000 | ' |
Financing Receivable, Modifications, Outstanding Recorded Investment of Loans Modified During Period | ' | ' | ' | $493,000 | ' |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2008 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Core Deposits | Service 1st Bank | Service 1st Bank | Bank of Madera County | Visalia Community Bank | Visalia Community Bank | ||||||
Core Deposits | Core Deposits | ||||||||||
Goodwill and Intangible Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | $29,776,000 | ' | $29,776,000 | ' | $23,577,000 | ' | $14,643,000 | ' | $8,934,000 | $6,199,000 | ' |
Core deposit relationships acquired | ' | ' | ' | ' | ' | ' | ' | 1,400,000 | ' | ' | 1,365,000 |
Finite-Lived Intangible Asset, Useful Life | ' | ' | ' | ' | ' | '7 years | ' | ' | ' | ' | ' |
Intangible assets, net | 1,764,000 | ' | 1,764,000 | ' | 583,000 | ' | ' | ' | ' | ' | ' |
Intangible assets, accumulated amortization | 1,001,000 | ' | 1,001,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of intangible assets | $84,000 | $50,000 | $184,000 | $150,000 | ' | ' | ' | ' | ' | ' | ' |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets - Future Amortization Expense (Details) (USD $) | Sep. 30, 2013 |
Finite-Lived Intangible Assets [Line Items] | ' |
2013 | $84,125 |
2014 | 336,500 |
2015 | 319,833 |
2016 | 136,500 |
2017 | 136,500 |
Thereafter | $750,750 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Commitments to extend credit | Commitments to extend credit | Undisbursed lines of credit | Undisbursed lines of credit | Undisbursed portions of construction loans | Undisbursed portions of construction loans | Standby letters of credit and financial guarantees | Standby letters of credit and financial guarantees | Minimum | Maximum | Maximum | Probable loan loss experience on unfunded obligations [Member] | Probable loan loss experience on unfunded obligations [Member] | |
Undisbursed lines of credit | Undisbursed lines of credit | Standby letters of credit and financial guarantees | |||||||||||
Commitments and Contingencies | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments to extend credit | $173,886,000 | $162,851,000 | $172,291,000 | $162,261,000 | $20,738,000 | $6,834,000 | $1,595,000 | $590,000 | ' | ' | ' | ' | ' |
Commitments to extend credit, term of agreement | ' | ' | ' | ' | ' | ' | ' | ' | '1 month | '12 months | '1 year | ' | ' |
Loss Contingency, Estimate of Possible Loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $115,000 | $55,000 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Income Taxes | ' | ' |
Increase in reserve for uncertain tax positions | ($141,000) | $47,000 |
Capital Loss Carryforward | CALIFORNIA | ' | ' |
Income Taxes | ' | ' |
Deferred tax valuation allowance | $107,000 | ' |
Borrowing_Arrangements_Details
Borrowing Arrangements (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Borrowing Arrangements | ' | ' |
FHLB Advances, short-term | $0 | $4,000,000 |
San Fransisco Branch | ' | ' |
Borrowing Arrangements | ' | ' |
Advances from FHLB | 0 | 4,000,000 |
Interest rate of FHLB advances | ' | 3.59% |
Federal Home Loan Bank Advances [Member] | Securities Pledged as Collateral | ' | ' |
Borrowing Arrangements | ' | ' |
Investments securing FHLB advances, amortized cost | 4,316,000 | 4,016,000 |
Investments securing FHLB advances, market value | $4,443,000 | $4,225,000 |
Acquisition_of_Visalia_Communi2
Acquisition of Visalia Community Bank - Summary of consideration paid, assets acquired and liabilities assumed (Details) (USD $) | 9 Months Ended | 1 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Jul. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2013 | |
Visalia Community Bank | |||||
Merger consideration: | ' | ' | ' | ' | ' |
Cash | ' | ' | ' | ' | $11,050,000 |
Common stock issued in Visalia Community Bank acquisition | 12,494,000 | 0 | ' | ' | 12,494,000 |
Total consideration transferred on business acquisition | ' | ' | ' | ' | 23,544,000 |
Recognized amounts of identifiable assets acquired and liabilities assumed | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | ' | ' | 51,779,000 |
Loans, net | ' | ' | ' | ' | 113,467,000 |
Investments | ' | ' | ' | ' | 14,818,000 |
Core deposit intangible | ' | ' | ' | ' | 1,365,000 |
Premises and equipment | ' | ' | ' | ' | 4,263,000 |
Federal Home Loan Bank stock | ' | ' | ' | ' | 698,000 |
Other real estate owned | ' | ' | ' | ' | 263,000 |
Deferred taxes and taxes receivable | ' | ' | ' | ' | 3,051,000 |
Bank owned life insurance | ' | ' | ' | ' | 6,786,000 |
Other assets | ' | ' | ' | ' | 796,000 |
Total assets acquired | ' | ' | ' | ' | 197,286,000 |
Deposits | ' | ' | ' | ' | 174,206,000 |
Other liabilities | ' | ' | ' | ' | 5,735,000 |
Total liabilities assumed | ' | ' | ' | ' | 179,941,000 |
Total identifiable net assets | ' | ' | ' | ' | 17,345,000 |
Goodwill | 29,776,000 | ' | ' | 23,577,000 | 6,199,000 |
Non Impaired Loans And Customer Receivables Acquired Fair Value | ' | ' | 110,890,000 | ' | ' |
Non Impaired Loans And Customer Receivables Acquired Contractual Amount | ' | ' | $113,743,000 | ' | ' |
Acquisition_of_Visalia_Communi3
Acquisition of Visalia Community Bank - Proforma Results of Operations (Details) (Visalia Community Bank, USD $) | 9 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Visalia Community Bank | ' | ' |
Business Acquisition, Pro Forma Information [Abstract] | ' | ' |
Net interest income | $27,581 | $28,027 |
Provision for credit losses | 298 | 1,185 |
Non-interest income | 6,611 | 7,025 |
Non-interest expense | 28,619 | 26,332 |
Income before provision for income taxes | 5,275 | 7,535 |
Provision for income taxes | 375 | 1,542 |
Net income | $4,900 | $5,993 |
Basic earnings per share | $0.46 | $0.53 |
Diluted earnings per share | $0.46 | $0.53 |
Acquisition_of_Visalia_Communi4
Acquisition of Visalia Community Bank - Narrative (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Jul. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2013 |
Visalia Community Bank | Visalia, California | Exeter, California | Visalia Community Bank Common Shareholder [Member] | |||
Visalia Community Bank | Visalia Community Bank | Visalia Community Bank | ||||
branches | branches | |||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' |
Number of Branches Acquired | ' | ' | ' | 3 | 1 | ' |
Assets of acquiree | ' | ' | $197,286,000 | ' | ' | ' |
Number of shares issued in business acquisition | ' | ' | 1,263,000 | ' | ' | ' |
Cash consideration transferred on business acquisition | ' | ' | 11,050,000 | ' | ' | ' |
Business Acquisition, Share For Share Exchange, Number of Shares Issuable | ' | ' | ' | ' | ' | 2.971 |
Goodwill | 29,776,000 | 23,577,000 | 6,199,000 | ' | ' | ' |
Core deposit intangible | ' | ' | $1,365,000 | ' | ' | ' |