Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 13-May-15 | |
Document And Entity Information | ||
Entity Registrant Name | First Federal of Northern Michigan Bancorp, Inc. | |
Entity Central Index Key | 1128227 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 3,727,014 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2015 |
Consolidated_Balance_Sheet_Una
Consolidated Balance Sheet (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Cash and cash equivalents: | ||
Cash on hand and due from banks | $19,205 | $11,205 |
Overnight deposits with FHLB | 307 | 267 |
Total cash and cash equivalents | 19,512 | 11,472 |
Deposits Held in other financial institutions | 8,429 | 8,429 |
Securities available for sale | 126,305 | 119,968 |
Securities held to maturity | 790 | 790 |
Loans held for sale | 413 | 88 |
Loans receivable, net of allowance for loan losses of $1,444 and $1,429 as of March 31, 2015 and December 31, 2014, respectively | 162,130 | 163,647 |
Foreclosed real estate and other repossessed assets | 3,087 | 2,823 |
Federal Home Loan Bank stock, at cost | 2,591 | 2,591 |
Premises and equipment | 6,294 | 6,336 |
Assets held for sale | 271 | 478 |
Accrued interest receivable | 1,090 | 986 |
Intangible assets | 1,226 | 1,286 |
Deferred tax asset | 658 | 851 |
Originated mortgage servicing rights | 671 | 710 |
Bank owned life insurance | 4,759 | 4,727 |
Other assets | 706 | 685 |
Total assets | 338,932 | 325,867 |
Liabilities: | ||
Deposits | 285,472 | 270,734 |
Advances from borrowers for taxes and insurance | 406 | 203 |
Advances from Federal Home Loan Bank | 20,827 | 22,885 |
Accrued expenses and other liabilities | 1,065 | 1,509 |
Total liabilities | 307,770 | 295,331 |
Stockholders' Equity | ||
Common stock ($0.01 par value 20,000,000 shares authorized 4,034,764 shares issued) | 40 | 40 |
Additional paid-in capital | 28,264 | 28,264 |
Retained earnings | 5,046 | 4,765 |
Treasury stock at cost (307,750 shares) | -2,964 | -2,964 |
Accumulated other comprehensive income (loss) | 776 | 431 |
Total stockholders' equity | 31,162 | 30,536 |
Total liabilities and stockholders' equity | $338,932 | $325,867 |
Consolidated_Balance_Sheet_Par
Consolidated Balance Sheet (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Allowance for loan losses | $1,444 | $1,429 |
Common stock, par value per share | $0.01 | $0.01 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 4,034,764 | 4,034,764 |
Treasury stock, shares | 307,750 | 307,750 |
Consolidated_Statement_of_Inco
Consolidated Statement of Income and Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Interest income: | ||
Interest and fees on loans | $2,004 | $1,710 |
Interest and dividends on investments | ||
Taxable | 294 | 151 |
Tax-exempt | 31 | 42 |
Interest on mortgage-backed securities | 288 | 142 |
Total interest income | 2,617 | 2,045 |
Interest expense: | ||
Interest on deposits | 235 | 186 |
Interest on borrowings | 66 | 63 |
Total interest expense | 301 | 249 |
Net interest income | 2,316 | 1,796 |
Provision for loan losses | 23 | 16 |
Net interest income after provision for loan losses | 2,293 | 1,780 |
Non-interest income: | ||
Service charges and other fees | 218 | 181 |
Mortgage banking activities | 101 | 96 |
Net income (loss) on sale of premises and equipment, real estate owned and other repossessed assets | 91 | -5 |
Other | 84 | 64 |
Total non-interest income | 494 | 336 |
Non-interest expense: | ||
Compensation and employee benefits | 1,419 | 1,109 |
FDIC Insurance Premiums | 64 | 46 |
Advertising | 44 | 28 |
Occupancy | 280 | 236 |
Amortization of intangible assets | 61 | 30 |
Service bureau charges | 103 | 62 |
Professional services | 110 | 129 |
Collection activity | 63 | 18 |
Real estate owned & other repossessed assets | 18 | 17 |
Other | 269 | 220 |
Total non-interest expense | 2,431 | 1,895 |
Income before income tax expense | 356 | 221 |
Income tax expense | ||
Net income | 356 | 221 |
Other Comprehensive Income (Loss): | ||
Unrealized (loss) gain on investment securities - available for sale securities - net of tax | 345 | 273 |
Reclassification adjustment for gains realized in earnings - net of tax | ||
Comprehensive Income (Loss) | $701 | $494 |
Net income per share | ||
Basic (in dollars per share) | $0.10 | $0.08 |
Diluted (in dollars per share) | $0.10 | $0.08 |
Weighted average number of shares outstanding | ||
Basic (in shares) | 3,727 | 2,884 |
Including dilutive stock options | 3,727 | 2,884 |
Dividends per common share (in dollars per share) | $0.02 | $0.02 |
Consolidated_Statement_of_Chan
Consolidated Statement of Changes in Stockholders' Equity (Unaudited) (USD $) | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings / Accumulated Deficit [Member] | Accumulated Other Comprehensive Income [Member] | Total |
In Thousands, unless otherwise specified | ||||||
Beginning Balance at Dec. 31, 2014 | $40 | ($2,964) | $28,264 | $4,765 | $431 | $30,536 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 356 | 356 | ||||
Change in unrealized gain on available-for-sale securities (net of tax of $177) | 345 | 345 | ||||
Dividends declared | -75 | -75 | ||||
Ending Balance at Mar. 31, 2015 | $40 | ($2,964) | $28,264 | $5,046 | $776 | $31,162 |
Consolidated_Statement_of_Chan1
Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Statement of Stockholders' Equity [Abstract] | |
Tax on change in unrealized gain on available-for-sale securities | $177 |
Consolidated_Statement_of_Cash
Consolidated Statement of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash Flows from Operating Activities: | ||
Net income | $356 | $221 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation and amortization | 155 | 102 |
Provision for loan loss | 23 | 16 |
Accretion of acquired loans | -5 | |
Amortization and accretion on securities | 227 | 98 |
Gain on sale of loans held for sale | -62 | -42 |
Gain on sale of property and equipment and asset held for sale | -81 | -2 |
(Gain) Loss on sale of real estate owned and other repossessed assets | -10 | 7 |
Originations of loans held for sale | -3,497 | -2,524 |
Proceeds from sale of loans held for sale | 3,234 | 2,506 |
Net change in: | ||
Accrued interest receivable | -104 | -83 |
Other assets | 33 | -17 |
Bank owned life insurance | -32 | -29 |
Accrued expenses and other liabilities | -444 | -107 |
Net cash (used in) provided by operating activities | -207 | 145 |
Cash Flows from Investing Activities: | ||
Net decrease in loans | 1,079 | 728 |
Proceeds from maturies and calls of available-for-sale securities | 5,287 | 2,336 |
Proceeds from sale of real estate owned and other repossessed assets | 165 | 80 |
Proceeds from sale of property and equipment | 288 | 2 |
Purchase of securities | -11,327 | -8,105 |
Purchase of premises and equipment | -53 | -28 |
Net cash used in investing activities | -4,561 | -4,987 |
Cash Flows from Financing Activities: | ||
Dividends paid on common stock | -75 | -58 |
Net increase in deposits | 14,738 | 5,691 |
Net increase in advances from borrowers | 203 | 170 |
Advances from Federal Home Loan Bank | 6,980 | |
Repayments of Federal Home Loan Bank advances | -2,058 | -7,561 |
Net cash provided by financing activities | 12,808 | 5,223 |
Net increase in cash and cash equivalents | 8,040 | 381 |
Cash and cash equivalents at beginning of period | 11,472 | 2,766 |
Cash and cash equivalents at end of period | 19,512 | 3,147 |
Supplemental disclosure of cash flow information: | ||
Cash refunded for taxes paid | 15 | |
Cash paid during the period for interest | 302 | 252 |
Transfer of loans to real estate owned & other repossessed assets | $419 | $245 |
BASIS_OF_FINANCIAL_STATEMENT_P
BASIS OF FINANCIAL STATEMENT PRESENTATION | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF FINANCIAL STATEMENT PRESENTATION | Note 1—BASIS OF FINANCIAL STATEMENT PRESENTATION |
The accompanying unaudited condensed consolidated interim financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America and with the instructions to Form 10-Q. Accordingly, certain information and disclosures required by accounting principles generally accepted in the United States of America for complete financial statements are not included herein. The interim financial statements should be read in conjunction with the financial statements of First Federal of Northern Michigan Bancorp, Inc. and Subsidiaries and the notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2014. | |
All adjustments, consisting only of normal recurring adjustments, which in the opinion of management are necessary for a fair presentation of financial position, results of operations and cash flows, have been made. The results of operations for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. |
PRINCIPLES_OF_CONSOLIDATION
PRINCIPLES OF CONSOLIDATION | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
PRINCIPLES OF CONSOLIDATION | Note 2— PRINCIPLES OF CONSOLIDATION |
The consolidated financial statements include the accounts of First Federal of Northern Michigan Bancorp, Inc., its wholly owned subsidiary First Federal of Northern Michigan (the “Bank”), and the Bank’s wholly owned subsidiaries, Financial Services & Mortgage Corporation (“FSMC”) and FFNM Financial Services, Inc. FSMC invested in real estate, which includes leasing, selling, developing, and maintaining real estate properties. As of March 31, 2015, FSMC has been dissolved since all real estate properties were sold in 2011. The main activity of FFNM Financial Services, Inc. is to collect commission from the sale of non-insured investment products in resulting from investment advisory services offered in our branch network. All significant intercompany balances and transactions have been eliminated in the consolidation. |
BUSINESS_COMBINATIONS
BUSINESS COMBINATIONS | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Business Combinations [Abstract] | |||||||||||||
Business Combinations | Note 3 - BUSINESS COMBINATIONS | ||||||||||||
As of August 8, 2014 (“Merger Date”), the Company completed its merger with Alpena Banking Corporation and its wholly owned subsidiary Bank of Alpena (“Alpena”). Alpena had one branch office and $102.9 million in assets as of August 8, 2014. The results of operations due to the merger have been included in the Company’s results since the Merger Date. The merger was effected by the issuance of shares of the Company’s common stock to Alpena Banking Corporation shareholders. Each share of Alpena’s common stock was converted into the right to receive 1.549 shares of the Company’s common stock, with cash paid in lieu of fractional shares. The conversion of Alpena’s shares resulted in the issuance of 842,965 shares of the Company’s common stock. | |||||||||||||
The merger transaction was recorded using the acquisition method of accounting and accordingly, assets acquired, liabilities assumed and consideration exchanged were recorded at estimated fair values on the Merger Date. The following table provides the purchase price calculation as of the Merger Date and the identifiable assets acquired and liabilities assumed at their estimated fair values. These fair value measurements are provisional based on third-party valuations that are currently under review and are subject to refinement for up to one year after the Merger Date based on additional information that may be obtained by us that existed on the Merger Date. | |||||||||||||
Purchase Price: | |||||||||||||
(000’s omitted) | |||||||||||||
First Federal of Northern Michigan Bancorp, Inc. common stock issued for Alpena Banking Corporation common shares | 843 | ||||||||||||
Price per share, based on First Federal of Northern Michigan Bancorp, Inc. closing price on August 8, 2014 | $ | 5.59 | |||||||||||
Total purchase price | $ | 4,712 | |||||||||||
Preliminary Statement of Net Assets Acquired at Fair Value: | |||||||||||||
Assets | |||||||||||||
Cash and cash equivalents | $ | 41,650 | |||||||||||
Securities | 24,008 | ||||||||||||
Loans | 33,051 | ||||||||||||
Premises and Equipment | 1,667 | ||||||||||||
Core Deposit Intangible | 1,392 | ||||||||||||
Deferred Tax Asset | 337 | ||||||||||||
Other Assets | 467 | ||||||||||||
Total Assets | $ | 102,572 | |||||||||||
Liabilities | |||||||||||||
Deposits | 95,787 | ||||||||||||
Other Liabilities | 91 | ||||||||||||
Total Liabilities | $ | 95,878 | |||||||||||
Net Identifiable Assets Acquired | $ | 6,694 | |||||||||||
Bargain Purchase Gain | $ | (1,982 | ) | ||||||||||
The following table provides the pro forma information for the results of operations for the three months ended March 31, 2015 and 2014, as if the merger had occurred on January 1 of each year. These adjustments reflect the impact of certain purchase accounting fair value measurements, primarily on the loan and deposit portfolios of Bank of Alpena. These pro forma results are presented for illustrative purposes only and are not intended to represent or be indicative of the actual results of operations of the combined banking organizations that would have been achieved had the merger occurred at the beginning of each period presented, nor are they intended to represent or be indicative of future results of the Company. | |||||||||||||
For the Three Months Ended | |||||||||||||
March 31, | |||||||||||||
2015 | 2014 | ||||||||||||
Net interest income | $ | 2,316 | $ | 2,375 | |||||||||
Non-interest income | 494 | 442 | |||||||||||
Non-interest expense | 2,431 | 2,543 | |||||||||||
Net income | 356 | 227 | |||||||||||
Net income per basic and diluted share | 0.1 | 0.06 | |||||||||||
Weighted average shares outstanding | 3,727 | 3,727 | |||||||||||
In most instances, determining the fair value of the acquired assets and assumed liabilities required the Company to estimate the cash flows expected to result from those assets and liabilities and to discount those cash flows at appropriate rates of interest. The most significant of those determinations related to the valuation of acquired loans. For such loans, the excess cash flows expected at merger over the estimated fair value is recognized as interest income over the remaining lives of the loans. The difference between contractually required payments at merger and the cash flows expected to be collected at merger reflects the impact of estimated credit losses and other factors, such as prepayments. In accordance with the applicable accounting guidance for business combinations, there was no carry-over of Alpena’s previously established allowance for loan losses. | |||||||||||||
The acquired loans were divided into loans with evidence of credit quality deterioration, which are accounted for under ASC 310-30 (“acquired impaired”), and loans that do not meet the criteria, which are accounted for under ASC 310-20 (“acquired non-impaired”). In addition, the loans are further categorized into different pools based primarily on the type and purpose of the loan. | |||||||||||||
Acquired | Acquired | Acquired | |||||||||||
Impaired | Non-Impaired | Total | |||||||||||
Real estate loans: | |||||||||||||
Residential mortgages | $ | 397 | $ | 6,992 | $ | 7,389 | |||||||
Commercial Loans: | |||||||||||||
— | 109 | 109 | |||||||||||
Secured by real estate | 3,070 | 14,721 | 17,791 | ||||||||||
Other | 1,201 | 4,213 | 5,414 | ||||||||||
Total commercial loans | 4,271 | 19,043 | 23,314 | ||||||||||
Consumer loans: | |||||||||||||
Secured by real state | 30 | 1,568 | 1,598 | ||||||||||
Other | — | 750 | 750 | ||||||||||
Total consumer loans | 30 | 2,318 | 2,348 | ||||||||||
Total loans at acquisition date | $ | 4,698 | $ | 28,353 | $ | 33,051 | |||||||
Acquired | Acquired | Acquired | |||||||||||
Impaired | Non-Impaired | Total | |||||||||||
Loans acquired- contractual required payments | $ | 5,930 | $ | 28,587 | $ | 34,517 | |||||||
Non accretable yield | (1,232 | ) | — | (1,232 | ) | ||||||||
Expected cash flows | 4,698 | 28,587 | 33,285 | ||||||||||
Accretable yield | — | (234 | ) | (234 | ) | ||||||||
Carrying balance at acquisition date | $ | 4,698 | $ | 28,353 | $ | 33,051 | |||||||
SECURITIES
SECURITIES | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Securities | |||||||||||||||||
Securities | Note 4—SECURITIES | ||||||||||||||||
Investment securities have been classified according to management’s intent. The carrying value and estimated fair value of securities are as follows: | |||||||||||||||||
31-Mar-15 | |||||||||||||||||
Amortized | Gross | Gross | Market | ||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Gains | (Losses) | ||||||||||||||||
(in thousands) | |||||||||||||||||
Securities Available for Sale | |||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 36,788 | $ | 270 | $ | (14 | ) | 37,044 | |||||||||
Municipal obligations | 24,473 | 464 | (20 | ) | 24,917 | ||||||||||||
Corporate bonds & other obligations | 1,532 | 8 | — | 1,540 | |||||||||||||
Mortgage-backed securities | 62,334 | 567 | (103 | ) | 62,798 | ||||||||||||
Equity securities | 3 | 3 | — | 6 | |||||||||||||
Total | $ | 125,130 | $ | 1,312 | $ | (137 | ) | $ | 126,305 | ||||||||
Securities Held to Maturity | |||||||||||||||||
Municipal obligations | $ | 790 | $ | 101 | $ | — | $ | 891 | |||||||||
31-Dec-14 | |||||||||||||||||
Amortized | Gross | Gross | Market | ||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Gains | (Losses) | ||||||||||||||||
(in thousands) | |||||||||||||||||
Securities Available for Sale | |||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 31,221 | $ | 58 | $ | (57 | ) | 31,222 | |||||||||
Municipal obligations | 22,894 | 369 | (129 | ) | 23,134 | ||||||||||||
Corporate bonds & other obligations | 1,549 | 12 | — | 1,561 | |||||||||||||
Mortgage-backed securities | 63,648 | 515 | (117 | ) | 64,046 | ||||||||||||
Equity securities | 3 | 2 | — | 5 | |||||||||||||
Total | $ | 119,315 | $ | 956 | $ | (303 | ) | $ | 119,968 | ||||||||
Securities Held to Maturity | |||||||||||||||||
Municipal obligations | $ | 790 | $ | 118 | $ | — | $ | 908 | |||||||||
The amortized cost and estimated market value of securities at March 31, 2015, by contract maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities with no specified maturity date are separately stated. | |||||||||||||||||
31-Mar-15 | |||||||||||||||||
Amortized | Market | ||||||||||||||||
Cost | Value | ||||||||||||||||
(in thousands) | |||||||||||||||||
Available For Sale: | |||||||||||||||||
Due in one year or less | $ | 6,213 | $ | 6,237 | |||||||||||||
Due after one year through five years | 38,741 | 39,055 | |||||||||||||||
Due in five year through ten years | 16,549 | 16,792 | |||||||||||||||
Due after ten years | 1,290 | 1,417 | |||||||||||||||
Subtotal | 62,793 | 63,501 | |||||||||||||||
Equity securities | 3 | 6 | |||||||||||||||
Mortgage-backed securities | 62,334 | 62,798 | |||||||||||||||
Total | $ | 125,130 | $ | 126,305 | |||||||||||||
Held To Maturity: | |||||||||||||||||
Due in one year or less | $ | 45 | $ | 45 | |||||||||||||
Due after one year through five years | 200 | 212 | |||||||||||||||
Due in five year through ten years | 315 | 360 | |||||||||||||||
Due after ten years | 230 | 274 | |||||||||||||||
Total | $ | 790 | $ | 891 | |||||||||||||
At March 31, 2015 and December, 31, 2014, securities with a carrying value and fair value of $34,000,000 and $35,000,000, respectively, were pledged to secure FHLB advances and our line of credit at the Federal Reserve. | |||||||||||||||||
There were no security sales in either the three months ended March 31, 2015 or 2014. | |||||||||||||||||
The following is a summary of temporarily impaired investments that have been impaired for less than and more than twelve months as of March 31, 2015 and December 31, 2014: | |||||||||||||||||
31-Mar-15 | |||||||||||||||||
Gross | Gross | ||||||||||||||||
Unrealized | Unrealized | ||||||||||||||||
Losses | Losses | ||||||||||||||||
Fair | <12 | Fair | > 12 | ||||||||||||||
Value | months | Value | months | ||||||||||||||
(in thousands) | |||||||||||||||||
Available For Sale: | |||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 2,486 | $ | (8 | ) | $ | 994 | $ | (6 | ) | |||||||
Municipal obligations | 15 | — | 2,204 | (20 | ) | ||||||||||||
Mortgage-backed securities | 6,230 | (24 | ) | 4,419 | (79 | ) | |||||||||||
Equity securities | — | — | — | — | |||||||||||||
Total | $ | 8,731 | $ | (32 | ) | $ | 7,617 | $ | (105 | ) | |||||||
Held to Maturity: | |||||||||||||||||
Municipal obligations | $ | — | $ | — | $ | — | $ | — | |||||||||
31-Dec-14 | |||||||||||||||||
Gross | Gross | ||||||||||||||||
Unrealized | Unrealized | ||||||||||||||||
Losses | Losses | ||||||||||||||||
Fair | <12 | Fair | > 12 | ||||||||||||||
Value | months | Value | months | ||||||||||||||
(in thousands) | |||||||||||||||||
Available For Sale: | |||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 13,672 | $ | (28 | ) | $ | 971 | $ | (29 | ) | |||||||
Municipal obligations | 9,506 | (54 | ) | 4,039 | (75 | ) | |||||||||||
Mortgage-backed securities | 9,923 | (31 | ) | 4,666 | (86 | ) | |||||||||||
Equity securities | — | — | — | — | |||||||||||||
Total | $ | 33,101 | $ | (113 | ) | $ | 9,676 | $ | (190 | ) | |||||||
Held to Maturity: | |||||||||||||||||
Municipal obligations | $ | — | $ | — | $ | — | $ | — | |||||||||
The Company held 19 securities with unrealized losses totaling $137,000 and 72 securities with unrealized losses totaling $303,000 at March 31, 2015 and December 31, 2014, respectively. The unrealized losses on the securities held in the portfolio are not considered other than temporary and have not been recognized into income. This decision is based on the Company’s ability and intent to hold any potentially impaired security until maturity. The performance of the security is based on the contractual terms of the agreement, the extent of the impairment and the financial condition and credit quality of the issuer. The decline in market value is considered temporary and a result of changes in interest rates and other market variables. |
LOANS_AND_ALLOWANCE_FOR_LOAN_L
LOANS AND ALLOWANCE FOR LOAN LOSSES | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||||||
LOANS AND ALLOWANCE FOR LOAN LOSSES | Note 5—LOANS AND ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||||||||||||||
The following table sets forth the composition of our loan portfolio by loan type at the dates indicated. | |||||||||||||||||||||||||||||||||
At March 31, | At December 31, | ||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||
Residential mortgage | $ | 73,314 | $ | 71,828 | |||||||||||||||||||||||||||||
Commercial loans: | |||||||||||||||||||||||||||||||||
Construction - real estate | 2,111 | 1,443 | |||||||||||||||||||||||||||||||
Secured by real estate | 60,703 | 62,163 | |||||||||||||||||||||||||||||||
Other | 17,067 | 19,000 | |||||||||||||||||||||||||||||||
Total commercial loans | 79,881 | 82,606 | |||||||||||||||||||||||||||||||
Consumer loans: | |||||||||||||||||||||||||||||||||
Secured by real estate | 9,241 | 9,502 | |||||||||||||||||||||||||||||||
Other | 1,390 | 1,403 | |||||||||||||||||||||||||||||||
Total consumer loans | 10,631 | 10,905 | |||||||||||||||||||||||||||||||
Total gross loans | $ | 163,826 | $ | 165,339 | |||||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||||||
Net deferred loan fees | (252 | ) | (263 | ) | |||||||||||||||||||||||||||||
Allowance for loan losses | (1,444 | ) | (1,429 | ) | |||||||||||||||||||||||||||||
Total loans, net | $ | 162,130 | $ | 163,647 | |||||||||||||||||||||||||||||
As of March 31, 2015 the total outstanding balance and carrying value of acquired impaired loans was $4.4 million and $3.3 million, respectively. Changes to the accretable and non-accretable yield for acquired loans as follows as of March 31, 2015: | |||||||||||||||||||||||||||||||||
Acquired | Acquired | ||||||||||||||||||||||||||||||||
Impaired | Non- | ||||||||||||||||||||||||||||||||
Non- | Imparied | Acquired | |||||||||||||||||||||||||||||||
Accreatable | Accreatable | Total | |||||||||||||||||||||||||||||||
December 31, 2014 balance | $ | (1,232 | ) | $ | (208 | ) | $ | (1,440 | ) | ||||||||||||||||||||||||
Net discount associated with acquired loans | — | — | — | ||||||||||||||||||||||||||||||
Accretion of discount for credit spread | — | 5 | 5 | ||||||||||||||||||||||||||||||
Loans paid off through March 31, 2015 | — | — | — | ||||||||||||||||||||||||||||||
Loans charged off through March 31, 2015 | 81 | — | 81 | ||||||||||||||||||||||||||||||
Total | $ | (1,151 | ) | $ | (203 | ) | $ | (1,354 | ) | ||||||||||||||||||||||||
The following table illustrates the contractual aging of the recorded investment in past due loans by class of loans as of March 31, 2015 and December 31, 2014: | |||||||||||||||||||||||||||||||||
As of March 31, 2015 | |||||||||||||||||||||||||||||||||
Recorded | |||||||||||||||||||||||||||||||||
Greater than | Investment > 90 | ||||||||||||||||||||||||||||||||
Originated Loans: | 30 - 59 Days | 60 - 89 Days | 90 Days | Total | Total | Days and | |||||||||||||||||||||||||||
Past Due | Past Due | Past Due | Past Due | Current | Loans | Accruing | |||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
Commercial Real Estate: | |||||||||||||||||||||||||||||||||
Commercial Real Estate - construction | $ | — | $ | — | $ | — | $ | — | $ | 2,111 | $ | 2,111 | $ | — | |||||||||||||||||||
Commercial Real Estate - other | 760 | — | 9 | 769 | 44,499 | 45,268 | — | ||||||||||||||||||||||||||
Commercial - non real estate | 400 | — | 15 | 415 | 12,613 | 13,028 | 15 | ||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Consumer - Real Estate | — | 17 | 24 | 41 | 7,562 | 7,603 | 17 | ||||||||||||||||||||||||||
Consumer - Other | 9 | — | 8 | 17 | 1,180 | 1,197 | 8 | ||||||||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||||||
Residential | 1,450 | — | 298 | 1,748 | 65,329 | 67,077 | 101 | ||||||||||||||||||||||||||
Total | $ | 2,619 | $ | 17 | $ | 354 | $ | 2,990 | $ | 133,294 | $ | 136,284 | $ | 141 | |||||||||||||||||||
As of March 31, 2015 | |||||||||||||||||||||||||||||||||
Recorded | |||||||||||||||||||||||||||||||||
Greater than | Investment > 90 | ||||||||||||||||||||||||||||||||
Acquired Loans: | 30 - 59 Days | 60 - 89 Days | 90 Days | Total | Total | Days and | |||||||||||||||||||||||||||
Past Due | Past Due | Past Due | Past Due | Current | Loans | Accruing | |||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
Commercial Real Estate: | |||||||||||||||||||||||||||||||||
Commercial Real Estate - construction | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Commercial Real Estate - other | 317 | 110 | 111 | 538 | 14,897 | 15,436 | — | ||||||||||||||||||||||||||
Commercial - non real estate | 88 | — | 105 | 193 | 3,846 | 4,039 | — | ||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Consumer - Real Estate | 5 | — | — | 5 | 1,633 | 1,638 | — | ||||||||||||||||||||||||||
Consumer - Other | 13 | — | — | 13 | 180 | 193 | — | ||||||||||||||||||||||||||
— | |||||||||||||||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||||||
Residential | 228 | — | 285 | 513 | 5,724 | 6,237 | — | ||||||||||||||||||||||||||
Total | $ | 651 | $ | 110 | $ | 501 | $ | 1,262 | $ | 26,280 | $ | 27,543 | $ | — | |||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||||||||||
Recorded | |||||||||||||||||||||||||||||||||
Greater than | Investment > 90 | ||||||||||||||||||||||||||||||||
Originated Loans: | 30 - 59 Days | 60 - 89 Days | 90 Days | Total | Total | Days and | |||||||||||||||||||||||||||
Past Due | Past Due | Past Due | Past Due | Current | Loans | Accruing | |||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
Commercial Real Estate: | |||||||||||||||||||||||||||||||||
Commercial Real Estate - construction | $ | — | $ | — | $ | — | $ | — | $ | 1,443 | $ | 1,443 | $ | — | |||||||||||||||||||
Commercial Real Estate - other | 10 | 195 | — | 205 | 46,103 | 46,308 | — | ||||||||||||||||||||||||||
Commercial - non real estate | — | — | — | — | 14,544 | 14,544 | — | ||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Consumer - Real Estate | 107 | 4 | 7 | 118 | 7,684 | 7,802 | — | ||||||||||||||||||||||||||
Consumer - Other | 3 | — | 3 | 6 | 1,152 | 1,158 | 3 | ||||||||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||||||
Residential | 1,484 | 746 | 386 | 2,616 | 62,326 | 64,942 | 87 | ||||||||||||||||||||||||||
Total | $ | 1,604 | $ | 945 | $ | 396 | $ | 2,945 | $ | 133,252 | $ | 136,197 | $ | 90 | |||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||||||||||
Recorded | |||||||||||||||||||||||||||||||||
Greater than | Investment > 90 | ||||||||||||||||||||||||||||||||
Acquired Loans: | 30 - 59 Days | 60 - 89 Days | 90 Days | Total | Total | Days and | |||||||||||||||||||||||||||
Past Due | Past Due | Past Due | Past Due | Current | Loans | Accruing | |||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
Commercial Real Estate - construction | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Commercial Real Estate - other | 125 | 128 | 93 | 346 | 15,604 | 15,950 | — | ||||||||||||||||||||||||||
Commercial - non real estate | — | 40 | 104 | 144 | 4,217 | 4,361 | — | ||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Consumer - Real Estate | 123 | — | — | 123 | 1,609 | 1,732 | — | ||||||||||||||||||||||||||
Consumer - Other | — | — | — | — | 213 | 213 | — | ||||||||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||||||
Residential | 147 | 56 | 461 | 664 | 6,222 | 6,886 | 225 | ||||||||||||||||||||||||||
Total | $ | 395 | $ | 224 | $ | 658 | $ | 1,277 | $ | 27,865 | $ | 29,142 | $ | 225 | |||||||||||||||||||
The Bank uses an eight tier risk rating system to grade its commercial loans. The grade of a loan may change during the life of the loans. The risk ratings are described as follows: | |||||||||||||||||||||||||||||||||
Risk Grade 1 (Excellent) - Prime loans based on liquid collateral, with adequate margin or supported by strong financial statements. Probability of serious financial deterioration is unlikely. High liquidity, minimum risk, strong ratios, and low handling costs are common to these loans. This classification also includes all loans secured by certificates of deposit or cash equivalents. | |||||||||||||||||||||||||||||||||
Risk Grade 2 (Good) - Desirable loans of somewhat less stature than Grade 1, but with strong financial statements. Probability of serious financial deterioration is unlikely. These loans possess a sound repayment source (and/or a secondary source). These loans represent less than the normal degree of risk associated with the type of financing contemplated. | |||||||||||||||||||||||||||||||||
Risk Grade 3 (Satisfactory) - Satisfactory loans of average risk – may have some minor deficiency or vulnerability to changing economic conditions, but still fully collectible. There may be some minor weakness but with offsetting features or other support readily available. These loans present a normal degree of risk associated with the type of financing. Actual and projected indicators and market conditions provide satisfactory assurance that the credit shall perform in accordance with agreed terms. | |||||||||||||||||||||||||||||||||
Risk Grade 4 (Acceptable) - Loans considered satisfactory, but which are of slightly “below average” credit risk due to financial weaknesses or uncertainty. The loans warrant a somewhat higher than average level of monitoring to insure that weaknesses do not advance. The level of risk is considered acceptable and within normal underwriting guidelines, so long as the loan is given the proper level of management supervision. | |||||||||||||||||||||||||||||||||
Risk Grade 4.5 (Monitored) - Loans are considered “below average” and monitored more closely due to some credit deficiency that poses additional risk but is not considered adverse to the point of being a “classified” credit. Possible reasons for additional monitoring may include characteristics such as temporary negative debt service coverage due to weak economic conditions; borrower may have experienced recent losses from operations, declining equity and/or increasing leverage, or marginal liquidity that may affect long-term sustainability. Loans of this grade have a higher degree of risk and warrant close monitoring to insure against further deterioration. | |||||||||||||||||||||||||||||||||
Risk Grade 5 (Other Assets Especially Mentioned) (OAEM) - Loans which possess some credit deficiency or potential weakness, which deserve close attention, but which do not yet warrant substandard classification. Such loans pose unwarranted financial risk that, if not corrected, could weaken the loan and increase risk in the future. | |||||||||||||||||||||||||||||||||
Risk Grade 6 (Substandard) - Loans are “substandard” whose full, final collectability does not appear to be a matter of serious doubt, but which nevertheless portray some form of well defined weakness that requires close supervision by Bank management. The noted weaknesses involve more than normal banking risk. One or more of the following characteristics may be exhibited in loans classified Substandard: (1) Loans possess a defined credit weakness and the likelihood that the loan shall be paid from the primary source of repayment is uncertain; (2) Loans are not adequately protected by the current net worth and/or paying capacity of the obligor; (3) primary source of repayment is gone, and the Bank is forced to rely on a secondary source of repayment such as collateral liquidation or guarantees; (4) distinct possibility that the Bank shall sustain some loss if deficiencies are not corrected; (5) unusual courses of action are needed to maintain a high probability of repayment; (6) the borrower is not generating enough cash flow to repay loan principal, however, continues to make interest payments; (7) the Bank is forced into a subordinated or unsecured position due to flaws in documentation; (8) loans have been restructured so that payment schedules, terms, and collateral represent concessions to the borrower when compared to normal loan terms; (9) the Bank is contemplating foreclosure or legal action due to the apparent deterioration in the loan; or (10) there is a significant deterioration in the market conditions and the borrower is highly vulnerable to these conditions. | |||||||||||||||||||||||||||||||||
Grade 7 (Doubtful) - Loans have all the weaknesses of those classified Substandard. Additionally, however, these weaknesses make collection or liquidation in full, based on existing conditions, improbable. Loans in this category are typically not performing in conformance with established terms and conditions. Full repayment is considered “Doubtful”, but extent of loss is not currently determinable. | |||||||||||||||||||||||||||||||||
Risk Grade 8 (Loss) - Loans are considered uncollectible and of such little value, that continuing to carry them as an asset on the Bank’s financial statements is not feasible. | |||||||||||||||||||||||||||||||||
The following table presents the risk category of loans by class of loans based on the most recent analysis performed and the contractual aging as of March 31, 2015 and December 31, 2014: | |||||||||||||||||||||||||||||||||
As of March 31, 2015 | |||||||||||||||||||||||||||||||||
Originated Loans: | |||||||||||||||||||||||||||||||||
Commercial Real Estate | Commercial Real Estate | ||||||||||||||||||||||||||||||||
Loan Grade | Construction | Other | Commercial | ||||||||||||||||||||||||||||||
2-Jan | $ | — | $ | — | $ | 29 | |||||||||||||||||||||||||||
3 | — | 14,912 | 5,296 | ||||||||||||||||||||||||||||||
4 | 2,111 | 19,574 | 5,208 | ||||||||||||||||||||||||||||||
4.5 | — | 3,513 | 1,769 | ||||||||||||||||||||||||||||||
5 | — | 5,506 | 288 | ||||||||||||||||||||||||||||||
6 | — | 1,763 | 438 | ||||||||||||||||||||||||||||||
7 | — | — | — | ||||||||||||||||||||||||||||||
8 | — | — | — | ||||||||||||||||||||||||||||||
Total | $ | 2,111 | $ | 45,268 | $ | 13,028 | |||||||||||||||||||||||||||
Acquired Loans: | |||||||||||||||||||||||||||||||||
Commercial Real Estate | Commercial Real Estate | ||||||||||||||||||||||||||||||||
Loan Grade | Construction | Other | Commercial | ||||||||||||||||||||||||||||||
2-Jan | $ | — | $ | 266 | $ | 1,130 | |||||||||||||||||||||||||||
3 | — | 2,579 | 805 | ||||||||||||||||||||||||||||||
4 | — | 10,644 | 900 | ||||||||||||||||||||||||||||||
4.5 | 330 | 18 | |||||||||||||||||||||||||||||||
5 | — | 1,008 | 1,034 | ||||||||||||||||||||||||||||||
6 | — | 608 | 152 | ||||||||||||||||||||||||||||||
7 | — | 0 | 0 | ||||||||||||||||||||||||||||||
8 | — | 0 | 0 | ||||||||||||||||||||||||||||||
Total | $ | — | $ | 15,435 | $ | 4,039 | |||||||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||||||||||
Originated Loans: | |||||||||||||||||||||||||||||||||
Commercial Real Estate | Commercial Real Estate | ||||||||||||||||||||||||||||||||
Loan Grade | Construction | Other | Commercial | ||||||||||||||||||||||||||||||
2-Jan | $ | — | $ | — | $ | 31 | |||||||||||||||||||||||||||
3 | — | 13,565 | 6,088 | ||||||||||||||||||||||||||||||
4 | 1,443 | 21,757 | 7,538 | ||||||||||||||||||||||||||||||
4.5 | — | 3,553 | 252 | ||||||||||||||||||||||||||||||
5 | — | 6,040 | 635 | ||||||||||||||||||||||||||||||
6 | — | 1,393 | — | ||||||||||||||||||||||||||||||
7 | — | — | — | ||||||||||||||||||||||||||||||
8 | — | — | — | ||||||||||||||||||||||||||||||
Total | $ | 1,443 | $ | 46,308 | $ | 14,544 | |||||||||||||||||||||||||||
Acquired Loans: | |||||||||||||||||||||||||||||||||
Commercial Real Estate | Commercial Real Estate | ||||||||||||||||||||||||||||||||
Loan Grade | Construction | Other | Commercial | ||||||||||||||||||||||||||||||
2-Jan | $ | — | $ | 280 | $ | 1,188 | |||||||||||||||||||||||||||
3 | — | 2,696 | 876 | ||||||||||||||||||||||||||||||
4 | — | 10,905 | 970 | ||||||||||||||||||||||||||||||
4.5 | 337 | 21 | |||||||||||||||||||||||||||||||
5 | — | 1,176 | 1,150 | ||||||||||||||||||||||||||||||
6 | — | 547 | 156 | ||||||||||||||||||||||||||||||
7 | — | 9 | 0 | ||||||||||||||||||||||||||||||
8 | — | — | 0 | ||||||||||||||||||||||||||||||
Total | $ | — | $ | 15,950 | $ | 4,361 | |||||||||||||||||||||||||||
For residential real estate and other consumer credit the Company evaluates credit quality based on the aging status of the loan and by payment activity. Loans 60 or more days past due are monitored by the collection committee. | |||||||||||||||||||||||||||||||||
The following tables present the risk category of loans by class based on the most recent analysis performed as of March 31, 2015 and December 31, 2014. | |||||||||||||||||||||||||||||||||
As of March 31, 2015 | |||||||||||||||||||||||||||||||||
Consumer - | |||||||||||||||||||||||||||||||||
Residential | Real Estate | Consumer - Other | |||||||||||||||||||||||||||||||
Originated Loans: | |||||||||||||||||||||||||||||||||
Loan Grade: | |||||||||||||||||||||||||||||||||
Pass | $ | 66,566 | $ | 7,545 | $ | 1,197 | |||||||||||||||||||||||||||
Special Mention | — | — | — | ||||||||||||||||||||||||||||||
Substandard | 511 | 58 | — | ||||||||||||||||||||||||||||||
Total | $ | 67,077 | $ | 7,603 | $ | 1,197 | |||||||||||||||||||||||||||
Consumer - | |||||||||||||||||||||||||||||||||
Residential | Real Estate | Consumer - Other | |||||||||||||||||||||||||||||||
Acquired Loans: | |||||||||||||||||||||||||||||||||
Loan Grade: | |||||||||||||||||||||||||||||||||
Pass | $ | 5,944 | $ | 1,628 | $ | 162 | |||||||||||||||||||||||||||
Special Mention | — | — | — | ||||||||||||||||||||||||||||||
Substandard | 293 | 10 | 31 | ||||||||||||||||||||||||||||||
Total | $ | 6,237 | $ | 1,638 | $ | 193 | |||||||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||||||||||
Consumer - | |||||||||||||||||||||||||||||||||
Residential | Real Estate | Consumer - Other | |||||||||||||||||||||||||||||||
Originated Loans: | |||||||||||||||||||||||||||||||||
Loan Grade: | |||||||||||||||||||||||||||||||||
Pass | $ | 64,397 | $ | 7,778 | $ | 1,155 | |||||||||||||||||||||||||||
Special Mention | — | — | — | ||||||||||||||||||||||||||||||
Substandard | 545 | 24 | 3 | ||||||||||||||||||||||||||||||
Total | $ | 64,942 | $ | 7,802 | $ | 1,158 | |||||||||||||||||||||||||||
Consumer - | |||||||||||||||||||||||||||||||||
Residential | Real Estate | Consumer - Other | |||||||||||||||||||||||||||||||
Acquired Loans: | |||||||||||||||||||||||||||||||||
Loan Grade: | |||||||||||||||||||||||||||||||||
Pass | $ | 6,335 | $ | 1,731 | $ | 213 | |||||||||||||||||||||||||||
Special Mention | — | — | — | ||||||||||||||||||||||||||||||
Substandard | 551 | 1 | — | ||||||||||||||||||||||||||||||
Total | $ | 6,886 | $ | 1,732 | $ | 213 | |||||||||||||||||||||||||||
The following table presents the recorded investment in non-accrual loans by class as of March 31, 2015 and December 31, 2014: | |||||||||||||||||||||||||||||||||
As of | |||||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Commercial Real Estate: | |||||||||||||||||||||||||||||||||
Commercial Real Estate - construction | $ | — | $ | — | |||||||||||||||||||||||||||||
Commercial Real Estate - other | 461 | 486 | |||||||||||||||||||||||||||||||
Commercial | 74 | 77 | |||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Consumer - real estate | 51 | 25 | |||||||||||||||||||||||||||||||
Consumer - other | — | — | |||||||||||||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||||||
Residential | 695 | 750 | |||||||||||||||||||||||||||||||
Total | $ | 1,281 | $ | 1,338 | |||||||||||||||||||||||||||||
The key features of the Company’s loan modifications are determined on a loan-by-loan basis. Generally, our restructurings have related to interest rate reductions and loan term extensions. In the past the Company has granted reductions in interest rates, payment extensions and short-term payment forbearances as a means to maximize collectability of troubled credits. The Company has not forgiven principal to date, although this would be considered if necessary to ensure the long-term collectability of the loan. The Company’s loan modifications are typically short-term in nature, although the Company would consider a long-term modification to ensure the long-term collectability of the credit. In general, a borrower must make at least six consecutive timely payments before the Company would consider a return of a restructured loan to accruing status in accordance with Federal Deposit Insurance Corporation guidelines regarding restoration of credits to accrual status. | |||||||||||||||||||||||||||||||||
The Bank has classified approximately $3.4 million of its impaired loans as troubled debt restructurings as of March 31, 2015. | |||||||||||||||||||||||||||||||||
Troubled Debt Restructurings that Subsequently | |||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | Defaulted | ||||||||||||||||||||||||||||||||
For the three months ended March 31, 2015 | For the three months ended March 31, 2015 | ||||||||||||||||||||||||||||||||
Pre-modification | Post-modification | ||||||||||||||||||||||||||||||||
Number of | outstanding recorded | outstanding recorded | |||||||||||||||||||||||||||||||
Loans | investment | investment | Number of Loans | Recorded Investment | |||||||||||||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | ||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | |||||||||||||||||||||||||||||||||
Commercial Real Estate - Construction | — | $ | — | $ | — | — | $ | — | |||||||||||||||||||||||||
Commercial Real Estate - Other | — | — | — | — | — | ||||||||||||||||||||||||||||
Commercial - non real estate | — | — | — | — | — | ||||||||||||||||||||||||||||
Residential | 1 | 110 | 110 | — | — | ||||||||||||||||||||||||||||
Total | 1 | $ | 110 | $ | 110 | — | $ | — | |||||||||||||||||||||||||
Troubled Debt Restructurings that Subsequently | |||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | Defaulted | ||||||||||||||||||||||||||||||||
For the three months ended March 31, 2014 | For the three months ended March 31, 2014 | ||||||||||||||||||||||||||||||||
Pre-modification | Post-modification | ||||||||||||||||||||||||||||||||
Number of | outstanding recorded | outstanding recorded | |||||||||||||||||||||||||||||||
Loans | investment | investment | Number of Loans | Recorded Investment | |||||||||||||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | ||||||||||||||||||||||||||||||||
Commerical Real Estate - Construction | — | $ | — | $ | — | — | $ | — | |||||||||||||||||||||||||
Commercial Real Estate - Other | — | — | — | — | — | ||||||||||||||||||||||||||||
Consumer - Other | — | — | — | — | — | ||||||||||||||||||||||||||||
Residential | — | — | — | — | — | ||||||||||||||||||||||||||||
Total | — | $ | — | $ | — | — | $ | — | |||||||||||||||||||||||||
For the majority of the Bank’s impaired loans, the Bank will apply the observable market price of collateral. However, the Bank may also utilize a measurement incorporating the present value of expected future cash flows discounted at the loan’s effective rate of interest. To determine observable market price, collateral asset values securing an impaired loan are periodically evaluated. Maximum time of re-evaluation is every 12 months. In this process, third party evaluations are obtained and heavily relied upon. Until such time that updated evaluations are received, the Bank may discount the collateral value used. | |||||||||||||||||||||||||||||||||
The Bank uses the following guidelines as stated in policy to determine when to realize a charge-off, whether a partial or full loan balance. A charge down in whole or in part is realized when unsecured consumer loans, credit card credits and overdraft lines of credit reach 90 days delinquency. At 120 days delinquent, secured consumer loans are charged down to the value of collateral, if repossession of the collateral is assured and/or in the process of repossession. Consumer mortgage loan deficiencies are charged down upon the sale of the collateral or sooner upon the recognition of collateral deficiency. Commercial credits are charged down at 90 days delinquency, unless an established and approved work-out plan is in place or litigation of the credit will likely result in recovery of the loan balance. Upon notification of bankruptcy, unsecured debt is charged off. Additional charge-off may be realized as further unsecured positions are recognized. | |||||||||||||||||||||||||||||||||
The following table presents the loans individually evaluated for impairment by class of loans as of March 31, 2015 and December 31, 2014: | |||||||||||||||||||||||||||||||||
As of March 31, 2015 | 2015 | ||||||||||||||||||||||||||||||||
Unpaid Principal | Recorded | Related | Average | Interest | |||||||||||||||||||||||||||||
Balance | Investment | Allowance | Recorded | Income | |||||||||||||||||||||||||||||
Investment | Recognized | ||||||||||||||||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | ||||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial | $ | 15 | $ | 15 | $ | — | $ | 15 | $ | — | |||||||||||||||||||||||
Commercial Real Estate - Construction | — | — | — | — | — | ||||||||||||||||||||||||||||
Commercial Real Estate - Other | 848 | 847 | — | 849 | 12 | ||||||||||||||||||||||||||||
Consumer - Real Estate | 43 | 40 | — | 41 | — | ||||||||||||||||||||||||||||
Consumer - Other | — | — | — | — | — | ||||||||||||||||||||||||||||
Residential | 639 | 554 | — | 492 | 3 | ||||||||||||||||||||||||||||
With a specific allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial | — | — | — | — | — | ||||||||||||||||||||||||||||
Commercial Real Estate - Construction | — | — | — | — | — | ||||||||||||||||||||||||||||
Commercial Real Estate - Other | 955 | 955 | 12 | 959 | 12 | ||||||||||||||||||||||||||||
Consumer - Real Estate | 19 | 19 | 19 | 19 | — | ||||||||||||||||||||||||||||
Consumer - Other | — | — | — | — | — | ||||||||||||||||||||||||||||
Residential | 142 | 140 | 27 | 142 | — | ||||||||||||||||||||||||||||
Totals: | |||||||||||||||||||||||||||||||||
Commercial | $ | 15 | $ | 15 | $ | — | $ | 15 | $ | — | |||||||||||||||||||||||
Commercial Real Estate - Construction | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||
Commercial Real Estate - Other | $ | 1,803 | $ | 1,802 | $ | 12 | $ | 1,808 | $ | 24 | |||||||||||||||||||||||
Consumer - Real Estate | $ | 62 | $ | 59 | $ | 19 | $ | 60 | $ | — | |||||||||||||||||||||||
Consumer - Other | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||
Residential | $ | 781 | $ | 694 | $ | 27 | $ | 634 | $ | 3 | |||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||||||||||
Impaired Loans | March 31, | ||||||||||||||||||||||||||||||||
As of December 31, 2014 | 2014 | ||||||||||||||||||||||||||||||||
Unpaid Principal | Recorded | Related | Average | Interest | |||||||||||||||||||||||||||||
Balance | Investment | Allowance | Recorded | Income | |||||||||||||||||||||||||||||
Investment | Recognized | ||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||
Commercial Real Estate - Construction | — | — | — | — | — | ||||||||||||||||||||||||||||
Commercial Real Estate - Other | 1,431 | 1,430 | — | 1,595 | 21 | ||||||||||||||||||||||||||||
Consumer - Real Estate | 26 | 24 | — | 6 | — | ||||||||||||||||||||||||||||
Consumer - Other | — | — | — | — | — | ||||||||||||||||||||||||||||
Residential | 781 | 618 | — | 382 | 1 | ||||||||||||||||||||||||||||
With a specific allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial | — | — | — | — | — | ||||||||||||||||||||||||||||
Commercial Real Estate - Construction | — | — | — | 173 | — | ||||||||||||||||||||||||||||
Commercial Real Estate - Other | 386 | 386 | 10 | 1,840 | 4 | ||||||||||||||||||||||||||||
Consumer - Real Estate | — | — | — | — | — | ||||||||||||||||||||||||||||
Consumer - Other | — | — | — | — | — | ||||||||||||||||||||||||||||
Residential | — | — | — | 30 | — | ||||||||||||||||||||||||||||
Totals: | |||||||||||||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||
Commercial Real Estate - Construction | $ | — | $ | — | $ | — | $ | 173 | $ | — | |||||||||||||||||||||||
Commercial Real Estate - Other | $ | 1,817 | $ | 1,816 | $ | 10 | $ | 3,435 | $ | 25 | |||||||||||||||||||||||
Consumer - Real Estate | $ | 26 | $ | 24 | $ | — | $ | 6 | $ | — | |||||||||||||||||||||||
Consumer - Other | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||
Residential | $ | 781 | $ | 618 | $ | — | $ | 412 | $ | 1 | |||||||||||||||||||||||
The Allowance for Loan and Lease Losses has a direct impact on the provision expense. An increase in the ALLL is funded through recoveries and provision expense. | |||||||||||||||||||||||||||||||||
Activity in the allowance for loan and lease losses was as follows for the quarters ended March 31, 2015 and 2014, respectively: | |||||||||||||||||||||||||||||||||
For the Three Months Ended March 31, 2015 | |||||||||||||||||||||||||||||||||
Commercial | Commercial | Consumer | |||||||||||||||||||||||||||||||
Construction | Real Estate | Commercial | Real Estate | Consumer | Residential | Unallocated | Total | ||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||||||
Beginning Balance | $ | 8 | $ | 307 | $ | 94 | $ | 33 | $ | 19 | $ | 869 | $ | 99 | $ | 1,429 | |||||||||||||||||
Charge-offs | — | (3 | ) | — | — | (5 | ) | (36 | ) | — | (44 | ) | |||||||||||||||||||||
Recoveries | 12 | 4 | 2 | 4 | — | 14 | — | 36 | |||||||||||||||||||||||||
Provision | (5 | ) | 62 | 9 | 11 | 7 | (34 | ) | (27 | ) | 23 | ||||||||||||||||||||||
Ending Balance | $ | 15 | $ | 370 | $ | 105 | $ | 48 | $ | 21 | $ | 813 | $ | 72 | $ | 1,444 | |||||||||||||||||
For the Three Months Ended March 31, 2014 | |||||||||||||||||||||||||||||||||
Commercial | Commercial | Consumer | |||||||||||||||||||||||||||||||
Construction | Real Estate | Commercial | Real Estate | Consumer | Residential | Unallocated | Total | ||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||||||
Beginning Balance | $ | 48 | $ | 444 | $ | 63 | $ | 62 | $ | 21 | $ | 784 | $ | 50 | $ | 1,472 | |||||||||||||||||
Charge-offs | — | (16 | ) | — | (11 | ) | (6 | ) | (35 | ) | — | (68 | ) | ||||||||||||||||||||
Recoveries | — | 19 | — | 9 | — | 10 | — | 38 | |||||||||||||||||||||||||
Provision | — | (55 | ) | (2 | ) | (11 | ) | 1 | 33 | 50 | 16 | ||||||||||||||||||||||
Ending Balance | $ | 48 | $ | 392 | $ | 61 | $ | 49 | $ | 16 | $ | 792 | $ | 100 | $ | 1,458 | |||||||||||||||||
Loan Balances Individually Evaluated for Impairment | |||||||||||||||||||||||||||||||||
As of March 31, 2015 | |||||||||||||||||||||||||||||||||
Commercial | Commercial | Consumer | |||||||||||||||||||||||||||||||
Construction | Real Estate | Commercial | Real Estate | Consumer | Residential | Unallocated | Total | ||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
Ending allowance balance: individually evaluated for impairment | $ | — | $ | 12 | $ | — | $ | 19 | $ | — | $ | 27 | $ | — | $ | 58 | |||||||||||||||||
Ending allowance balance: individually evaluated for impairment | $ | 15 | $ | 358 | $ | 105 | $ | 29 | $ | 21 | $ | 786 | $ | 72 | $ | 1,386 | |||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||
Ending Balance | $ | 2,111 | $ | 60,703 | $ | 17,067 | $ | 9,241 | $ | 1,390 | $ | 73,314 | $ | — | $ | 163,826 | |||||||||||||||||
Ending balance: individually evaluated for impairment | $ | — | $ | 1,802 | $ | 15 | $ | 59 | $ | — | $ | 694 | $ | — | $ | 2,570 | |||||||||||||||||
Ending balance: loans collectively evaluated for impairment | $ | 2,111 | $ | 43,466 | $ | 13,013 | $ | 7,544 | $ | 1,197 | $ | 66,383 | $ | — | $ | 133,714 | |||||||||||||||||
Acquired loans with deteriorated credit quality not subject to loan loss reserve | $ | — | $ | 1,988 | $ | 866 | $ | 9 | $ | — | $ | 422 | $ | — | $ | 3,285 | |||||||||||||||||
Other acquired loans not subject to loan loss reserve | $ | — | $ | 13,447 | $ | 3,173 | $ | 1,629 | $ | 193 | $ | 5,815 | $ | — | $ | 24,257 | |||||||||||||||||
Loan Balances Individually Evaluated for Impairment | |||||||||||||||||||||||||||||||||
As of March 31, 2014 | |||||||||||||||||||||||||||||||||
Commercial | Commercial | Consumer | |||||||||||||||||||||||||||||||
Construction | Real Estate | Commercial | Real Estate | Consumer | Residential | Unallocated | Total | ||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
Ending allowance balance: individually evaluated for impairment | $ | 48 | $ | 137 | $ | — | $ | — | $ | — | $ | 5 | $ | — | $ | 190 | |||||||||||||||||
Ending allowance balance: individually evaluated for impairment | $ | — | $ | 255 | $ | 61 | $ | 49 | $ | 16 | $ | 787 | $ | 100 | $ | 1,268 | |||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||
Ending Balance | $ | 173 | $ | 51,382 | $ | 12,252 | $ | 8,490 | $ | 1,171 | $ | 63,576 | $ | — | $ | 137,044 | |||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 173 | $ | 3,315 | $ | — | $ | 6 | $ | — | $ | 405 | $ | — | $ | 3,899 | |||||||||||||||||
Ending balance: loans collectively evaluated for impairment | $ | — | $ | 48,067 | $ | 12,252 | $ | 8,484 | $ | 1,171 | $ | 63,171 | $ | — | $ | 133,145 |
DIVIDENDS
DIVIDENDS | 3 Months Ended |
Mar. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
DIVIDENDS | Note 6—DIVIDENDS |
We are dependent primarily upon the Bank for our earnings and funds to pay dividends on our common stock. The payment of dividends also is subject to legal and regulatory restrictions. Any payment of dividends in the future will depend, in large part, on the Bank’s earnings, capital requirements, financial condition and other factors considered by our Board of Directors. |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
STOCK-BASED COMPENSATION | Note 7—STOCK-BASED COMPENSATION | ||||||||||||||||
Effective January 1, 2006, the Company adopted ASC 718-10, “Shareholder Based Payments”, which requires that the grant-date fair value of awarded stock options be expensed over the requisite service period. The Company’s 1996 Stock Option Plan (the “1996 Plan”), which was approved by shareholders, permits the grant of share options to its employees for up to 127,491 shares of common stock (retroactively adjusted for the exchange ratio applied in the Company’s 2005 stock offering and related second-step conversion). The Company’s 2006 Stock-Based Incentive Plan (the “2006 Plan”), which was approved by shareholders on May 17, 2006, permits the award of up to 242,740 shares of common stock of which the maximum number to be granted as Stock Options is 173,386 and the maximum that can be granted as Restricted Stock Awards is 69,354. Option awards are granted with an exercise price equal to the market price of the Company’s stock at the date of grant. Those option awards generally vest based on five years of continual service and have ten year contractual terms. Certain options provide for accelerated vesting if there is a change in control (as defined in the Plans). | |||||||||||||||||
During the three months ended March 31, 2015 no shares were awarded under either the 1996 Plan or the 2006 Plan. Shares issued under the plans and exercised pursuant to the exercise of the stock options awarded under the plans may be either authorized but unissued shares or reacquired shares held by the Company as treasury stock. | |||||||||||||||||
Stock Options - A summary of option activity under the Plans during the three months ended March 31, 2015 is presented below: | |||||||||||||||||
Weighted-Average | |||||||||||||||||
Weighted- | Remaining | ||||||||||||||||
Average | Contractual Term | Aggregate | |||||||||||||||
Options | Shares | Exercise Price | (Years) | Intrinsic Value | |||||||||||||
Outstanding at January 1, 2015 | 136,030 | $ | 9.54 | 1.4 | $ | 0 | |||||||||||
Granted | 0 | N/A | |||||||||||||||
Exercised | 0 | N/A | |||||||||||||||
Forfeited or expired | (250 | ) | $ | 9.65 | |||||||||||||
Oustanding at March 31, 2015 | 135,780 | $ | 9.54 | 1.1 | $ | 0 | |||||||||||
Options Exercisable at March 31, 2015 | 135,780 | $ | 9.54 | 1.1 | $ | 0 | |||||||||||
The aggregate intrinsic value of outstanding options shown in the table above represents the total pretax intrinsic value (i.e. the difference between the Company’s closing stock price of $5.95 on March 31, 2015 and the exercise price times the number of shares) that would have been received by the option holder had all option holders exercised their options on March 31, 2015. The amount changes based on the fair market value of the stock. | |||||||||||||||||
As of March 31, 2015 the Company had no unrecognized compensation cost related to nonvested options under the Plan. There were no shares which vested during the quarter ended March 31, 2015. In addition, there were no non-vested options as of March 31, 2015. | |||||||||||||||||
Restricted Stock Awards - As of March 31, 2015 all restricted stock awards have vested; therefore the Company had no unrecognized compensation cost under the Plans. |
COMMITMENTS_TO_EXTEND_CREDIT
COMMITMENTS TO EXTEND CREDIT | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Off Balance Sheet Risk Commitments And Contingencies | |||||
COMMITMENTS TO EXTEND CREDIT | Note 8— COMMITMENTS TO EXTEND CREDIT | ||||
The Company is a party to credit-related financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, stand by letters of credit, and commercial lines of credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated balance sheet. The Company’s exposure to credit loss is represented by the contracted amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance sheet instruments. | |||||
At March 31, 2015, the Company had outstanding commitments to originate loans of $22.2 million. These commitments included the following: | |||||
As of | |||||
31-Mar-15 | |||||
(in thousands) | |||||
Commitments to grant loans | $ | 7,586 | |||
Unfunded commitments under lines of credit | 14,493 | ||||
Commercial and standby letters of credit | 134 |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||
FAIR VALUE MEASUREMENTS | Note 9— FAIR VALUE MEASUREMENTS | ||||||||||||||||||||
The fair value of financial assets and liabilities recorded at fair value is categorized in three levels. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. These levels are as follows: | |||||||||||||||||||||
Level 1 — Valuations based on quoted prices in active markets, such as the New York Stock Exchange. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. | |||||||||||||||||||||
Level 2 — Valuations of assets and liabilities traded in less active dealer or broker markets. Valuations include quoted prices for similar assets and liabilities traded in the same market; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Valuations may be obtained from, or corroborated by, third-party pricing services. | |||||||||||||||||||||
Level 3 — Assets and liabilities with valuations that include methodologies and assumptions that may not be readily observable, including option pricing models, discounted cash flow models, yield curves and similar techniques. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities, but in all cases are corroborated by external data, which may include third-party pricing services. | |||||||||||||||||||||
The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of March 31, 2015 and December 31, 2014, and the valuation techniques used by the Company to determine those fair values. | |||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis at March 31, 2015 | |||||||||||||||||||||
Quoted | Significant | Significant Unobservable Inputs | Fair Value as | ||||||||||||||||||
Prices in | Other | (Level 3) | of | ||||||||||||||||||
Active | Observable | March 31, | |||||||||||||||||||
Markets for Identical | Inputs | 2015 | |||||||||||||||||||
(Level 2) | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Investment securities- available-for-sale: | |||||||||||||||||||||
US Treasury securities and obligations of U.S. government corporations and agencies | $ | 1,285 | $ | 35,759 | $ | — | $ | 37,044 | |||||||||||||
Municipal obligations | — | 22,664 | 2,253 | 24,917 | |||||||||||||||||
Corporate bonds & other obligations | — | 1,540 | — | 1,540 | |||||||||||||||||
Mortgage-backed securities | — | 62,798 | — | 62,798 | |||||||||||||||||
Equity securities | — | 6 | — | 6 | |||||||||||||||||
Total investment securities - available-for-sale | $ | 1,285 | $ | 122,767 | $ | 2,253 | $ | 126,305 | |||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis at December 31, 2014 | |||||||||||||||||||||
Quoted | Significant | Significant Unobservable Inputs | Fair Value as | ||||||||||||||||||
Prices in | Other | (Level 3) | of December | ||||||||||||||||||
Active | Observable | 31, 2014 | |||||||||||||||||||
Markets for Identical | Inputs | ||||||||||||||||||||
(Level 2) | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Investment securities - available-for-sale: | |||||||||||||||||||||
U.S. Treasury securities and obligations of U.S.government corporations and agencies | $ | 1,279 | $ | 5,763 | $ | — | $ | 7,042 | |||||||||||||
Municipal obligations | — | 11,317 | 2,292 | 13,609 | |||||||||||||||||
Corporate bonds & other obligations | — | 1,097 | — | 1,097 | |||||||||||||||||
Mortgage-backed securities | — | 28,603 | — | 28,603 | |||||||||||||||||
Equity securities | — | 7 | — | 7 | |||||||||||||||||
Total investment securities - available-for-sale | $ | 1,279 | $ | 46,787 | $ | 2,292 | $ | 50,358 | |||||||||||||
Fair value measurements of U.S. Government agencies and mortgage backed securities use pricing models that vary and may consider various assumptions, including time value, yield curves, volatility factors, prepayment speeds, default rates, loss severity, current market and contractual prices for the underlying financial instruments, as well as other relevant economic measures. | |||||||||||||||||||||
The Company has assets that, under certain conditions, are subject to measurement at fair value on a nonrecurring basis. At March 31, 2015 and December 31, 2014, such assets consist primarily of impaired loans and other real estate owned. The Company has estimated the fair values of these assets using Level 3 inputs, specifically discounted cash flow projections. | |||||||||||||||||||||
Assets Measured at Fair Value on a Nonrecurring Basis at March 31, 2015 | |||||||||||||||||||||
Balance at | Quoted Prices in | Significant | Significant | ||||||||||||||||||
31-Mar-15 | Active Markets | Other | Unobservable | ||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||
Assets (Level 1) | Inputs | (Level 3) | |||||||||||||||||||
(Level 2) | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Originated Assets: | |||||||||||||||||||||
Impaired loans accounted for under FASB ASC 310-10 | $ | 1,801 | $ | — | $ | — | $ | 1,801 | |||||||||||||
Other real estate owned -residential mortgages | 591 | — | — | 591 | |||||||||||||||||
Other Real estate owned - commercial | 1,636 | — | — | 1,636 | |||||||||||||||||
Other repossessed assets | 860 | — | — | 860 | |||||||||||||||||
Total assets at fair value on a non-recurring basis | $ | 4,888 | |||||||||||||||||||
Acquired Assets: | |||||||||||||||||||||
Impaired loans accounted for under FASB ASC 310-10 | $ | 525 | $ | — | $ | — | $ | 525 | |||||||||||||
Other real estate owned -residential mortgages | — | — | — | — | |||||||||||||||||
Other real estate owned - commercial | — | — | — | — | |||||||||||||||||
Other repossessed assets | — | — | — | — | |||||||||||||||||
Total assets at fair value on a non-recurring basis | $ | 525 | |||||||||||||||||||
Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2014 | |||||||||||||||||||||
Balance at | Quoted Prices in | Significant | Significant | ||||||||||||||||||
31-Dec-14 | Active Markets | Other | Unobservable | ||||||||||||||||||
for Identical | Observable | Inputs (Level 3) | |||||||||||||||||||
Assets (Level 1) | Inputs (Level 2) | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Originated Assets: | |||||||||||||||||||||
Impaired loans accounted for under FASB ASC 310-10 | $ | 1,806 | $ | — | $ | — | $ | 1,806 | |||||||||||||
Other real estate owned -residential mortgages | 336 | — | — | 336 | |||||||||||||||||
Other real estate owned - commercial | 1,628 | — | — | 1,628 | |||||||||||||||||
Other repossessed assets | 860 | — | — | 860 | |||||||||||||||||
Total assets at fair value on a non-recurring basis | $ | 4,630 | |||||||||||||||||||
Acquired Assets: | |||||||||||||||||||||
Impaired loans accounted for under FASB ASC 310-10 | $ | 396 | $ | — | $ | — | $ | 396 | |||||||||||||
Other real estate owned -residential mortgages | — | — | — | — | |||||||||||||||||
Other real estate owned - commercial | — | — | — | — | |||||||||||||||||
Other repossessed assets | — | — | — | — | |||||||||||||||||
Total assets at fair value on a non-recurring basis | $ | 396 | |||||||||||||||||||
A loan is considered impaired when, based on current information and events it is probable the Company will be unable to collect all amounts due (both principal and interest) according to the contractual terms of the original loan agreement. Loans identified as impaired are measured using one of three methods: the loan’s observable market price; the fair value of collateral; or the present value of expected future cash flows. For each period presented, no loans were measured using the loan’s observable market price. Collateral may be in the form of real estate and/or business assets such as accounts receivable, inventory or business equipment. | |||||||||||||||||||||
Real estate is the collateral for the vast majority of our secured lending. The real estate’s value is based on observable market prices and market values of collateral provided by independent, third-party licensed or certified appraisers, selected from a list of Company-approved appraisers. Appraisals for all types of collateral-dependent loans are typically requested within 30 days of a loan being deemed impaired. The fair value of impaired loans with specific allocations is essentially based on recent real estate appraisals less costs to sell. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Appraised collateral values may be further discounted based on management’s historical knowledge of the property and/or changes in market conditions from the time of valuation or management’s plan for disposal. Subsequent evaluations of collateral are performed on a loan by loan basis as additional facts and circumstances related to the individual credit require, but not less than annually. | |||||||||||||||||||||
The following methods and assumptions were used by the Company in estimating fair value disclosures for financial instruments: | |||||||||||||||||||||
Cash and Cash Equivalents - The carrying amounts of cash and short-term instruments approximate fair values. | |||||||||||||||||||||
Investment Securities - Fair value for the Bank’s investment securities was determined using the market value in active markets, where available. When not available, fair values are estimated using the fair value hierarchy. In the fair value hierarchy, Level 2 fair values are determined using observable inputs other than Level 1 market prices, such as quoted prices for similar assets. Level 3 values are determined using unobservable inputs, such as discounted cash flow projections. | |||||||||||||||||||||
Loans Receivable - For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. Fair values for certain mortgage loans (e.g., one- to four-family residential), credit card loans, and other consumer loans are based on quoted market prices of similar loans sold in conjunction with securitization transactions, adjusted for differences in loan characteristics. Fair values for other loans (e.g., commercial real estate and investment property mortgage loans, commercial, and industrial 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. Fair values for nonperforming loans are estimated using discounted cash flow analyses or underlying collateral values, where applicable. | |||||||||||||||||||||
Loans Held For Sale - Fair values of mortgage loans held for sale are based on commitments on hand from investors or prevailing market prices. | |||||||||||||||||||||
Federal Home Loan Bank Stock - The carrying value of Federal Home Loan Bank stock approximates fair value based on the redemption provisions of the Federal Home Loan Bank. | |||||||||||||||||||||
Deposit Liabilities - The fair values disclosed for demand deposits (e.g., interest and noninterest checking, savings, and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). The carrying amounts of variable-rate, fixed-term money market accounts and certificates of deposit approximate their fair values at the reporting date. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits. | |||||||||||||||||||||
Federal Home Loan Bank Advances - The estimated fair value of the fixed and variable rate Federal Home Loan Bank advances are estimated by discounting the related cash flows using the rates currently available for similarly structured borrowings with similar maturities. | |||||||||||||||||||||
Accrued Interest - The carrying amounts of accrued interest approximate fair value. | |||||||||||||||||||||
The estimated fair values and related carrying or notional amounts of the Company’s financial instruments are as follows: | |||||||||||||||||||||
31-Mar-15 | Carrying | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Value | Estimated Fair | ||||||||||||||||||||
Value | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 19,512 | $ | 19,512 | $ | — | $ | — | $ | 19,512 | |||||||||||
Deposits held at other financial institutions | 8,429 | — | 7,218 | 1,240 | 8,458 | ||||||||||||||||
Securities available for sale | 126,305 | 1,285 | 125,020 | — | 126,305 | ||||||||||||||||
Securities held to maturity | 790 | — | 891 | — | 891 | ||||||||||||||||
Loans held for sale | 413 | — | — | 427 | 427 | ||||||||||||||||
Loans receivable - net | 162,130 | — | — | 162,025 | 162,025 | ||||||||||||||||
Federal Home Loan Bank stock | 2,591 | — | 2,591 | — | 2,591 | ||||||||||||||||
Accrued interest receivable | 1,090 | — | — | 1,090 | 1,090 | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Customer deposits | 285,472 | — | 286,031 | — | 286,031 | ||||||||||||||||
Federal Home Loan Bank advances | 20,827 | — | 20,798 | — | 20,798 | ||||||||||||||||
Accrued interest payable | 100 | — | — | 100 | 100 | ||||||||||||||||
31-Dec-14 | Carrying | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Value | Estimated Fair | ||||||||||||||||||||
Value | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 11,472 | $ | 11,472 | $ | — | $ | — | $ | 11,472 | |||||||||||
Deposits held at other financial institutions | 8,429 | — | 8,424 | $ | — | 8,424 | |||||||||||||||
Securities available for sale | 119,968 | — | 119,968 | — | 119,968 | ||||||||||||||||
Securities held to maturity | 790 | — | 908 | — | 908 | ||||||||||||||||
Loans held for sale | 88 | — | — | 90 | 90 | ||||||||||||||||
Loans receivable - net | 163,647 | — | — | 163,690 | 163,690 | ||||||||||||||||
Federal Home Loan Bank stock | 2,591 | — | 2,591 | — | 2,591 | ||||||||||||||||
Accrued interest receivable | 986 | — | — | 986 | 986 | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Customer deposits | 270,734 | — | 271,200 | — | 271,200 | ||||||||||||||||
Federal Home Loan Bank advances | 22,885 | — | 22,696 | — | 22,696 | ||||||||||||||||
Accrued interest payable | 101 | — | — | 101 | 101 |
BUSINESS_COMBINATIONS_Tables
BUSINESS COMBINATIONS (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Business Combinations [Abstract] | |||||||||||||
Schedule of purchase price of acquisition | |||||||||||||
Purchase Price: | |||||||||||||
(000’s omitted) | |||||||||||||
First Federal of Northern Michigan Bancorp, Inc. common stock issued for Alpena Banking Corporation common shares | 843 | ||||||||||||
Price per share, based on First Federal of Northern Michigan Bancorp, Inc. closing price on August 8, 2014 | $ | 5.59 | |||||||||||
Total purchase price | $ | 4,712 | |||||||||||
Preliminary Statement of Net Assets Acquired at Fair Value: | |||||||||||||
Assets | |||||||||||||
Cash and cash equivalents | $ | 41,650 | |||||||||||
Securities | 24,008 | ||||||||||||
Loans | 33,051 | ||||||||||||
Premises and Equipment | 1,667 | ||||||||||||
Core Deposit Intangible | 1,392 | ||||||||||||
Deferred Tax Asset | 337 | ||||||||||||
Other Assets | 467 | ||||||||||||
Total Assets | $ | 102,572 | |||||||||||
Liabilities | |||||||||||||
Deposits | 95,787 | ||||||||||||
Other Liabilities | 91 | ||||||||||||
Total Liabilities | $ | 95,878 | |||||||||||
Net Identifiable Assets Acquired | $ | 6,694 | |||||||||||
Bargain Purchase Gain | $ | (1,982 | ) | ||||||||||
Schedule of the unaudited pro forma information for the results of operations | The following table provides the pro forma information for the results of operations for the three months ended March 31, 2015 and 2014, as if the merger had occurred on January 1 of each year. These adjustments reflect the impact of certain purchase accounting fair value measurements, primarily on the loan and deposit portfolios of Bank of Alpena. These pro forma results are presented for illustrative purposes only and are not intended to represent or be indicative of the actual results of operations of the combined banking organizations that would have been achieved had the merger occurred at the beginning of each period presented, nor are they intended to represent or be indicative of future results of the Company. | ||||||||||||
For the Three Months Ended | |||||||||||||
March 31, | |||||||||||||
2015 | 2014 | ||||||||||||
Net interest income | $ | 2,316 | $ | 2,375 | |||||||||
Non-interest income | 494 | 442 | |||||||||||
Non-interest expense | 2,431 | 2,543 | |||||||||||
Net income | 356 | 227 | |||||||||||
Net income per basic and diluted share | 0.1 | 0.06 | |||||||||||
Weighted average shares outstanding | 3,727 | 3,727 | |||||||||||
Schedule of acquired loans | |||||||||||||
Acquired | Acquired | Acquired | |||||||||||
Impaired | Non-Impaired | Total | |||||||||||
Real estate loans: | |||||||||||||
Residential mortgages | $ | 397 | $ | 6,992 | $ | 7,389 | |||||||
Commercial Loans: | |||||||||||||
— | 109 | 109 | |||||||||||
Secured by real estate | 3,070 | 14,721 | 17,791 | ||||||||||
Other | 1,201 | 4,213 | 5,414 | ||||||||||
Total commercial loans | 4,271 | 19,043 | 23,314 | ||||||||||
Consumer loans: | |||||||||||||
Secured by real state | 30 | 1,568 | 1,598 | ||||||||||
Other | — | 750 | 750 | ||||||||||
Total consumer loans | 30 | 2,318 | 2,348 | ||||||||||
Total loans at acquisition date | $ | 4,698 | $ | 28,353 | $ | 33,051 | |||||||
Acquired | Acquired | Acquired | |||||||||||
Impaired | Non-Impaired | Total | |||||||||||
Loans acquired- contractual required payments | $ | 5,930 | $ | 28,587 | $ | 34,517 | |||||||
Non accretable yield | (1,232 | ) | — | (1,232 | ) | ||||||||
Expected cash flows | 4,698 | 28,587 | 33,285 | ||||||||||
Accretable yield | — | (234 | ) | (234 | ) | ||||||||
Carrying balance at acquisition date | $ | 4,698 | $ | 28,353 | $ | 33,051 |
SECURITIES_Tables
SECURITIES (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Securities Tables | |||||||||||||||||
Schedule of carrying value and estimated fair value of securities | Investment securities have been classified according to management’s intent. The carrying value and estimated fair value of securities are as follows: | ||||||||||||||||
31-Mar-15 | |||||||||||||||||
Amortized | Gross | Gross | Market | ||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Gains | (Losses) | ||||||||||||||||
(in thousands) | |||||||||||||||||
Securities Available for Sale | |||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 36,788 | $ | 270 | $ | (14 | ) | 37,044 | |||||||||
Municipal obligations | 24,473 | 464 | (20 | ) | 24,917 | ||||||||||||
Corporate bonds & other obligations | 1,532 | 8 | — | 1,540 | |||||||||||||
Mortgage-backed securities | 62,334 | 567 | (103 | ) | 62,798 | ||||||||||||
Equity securities | 3 | 3 | — | 6 | |||||||||||||
Total | $ | 125,130 | $ | 1,312 | $ | (137 | ) | $ | 126,305 | ||||||||
Securities Held to Maturity | |||||||||||||||||
Municipal obligations | $ | 790 | $ | 101 | $ | — | $ | 891 | |||||||||
31-Dec-14 | |||||||||||||||||
Amortized | Gross | Gross | Market | ||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Gains | (Losses) | ||||||||||||||||
(in thousands) | |||||||||||||||||
Securities Available for Sale | |||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 31,221 | $ | 58 | $ | (57 | ) | 31,222 | |||||||||
Municipal obligations | 22,894 | 369 | (129 | ) | 23,134 | ||||||||||||
Corporate bonds & other obligations | 1,549 | 12 | — | 1,561 | |||||||||||||
Mortgage-backed securities | 63,648 | 515 | (117 | ) | 64,046 | ||||||||||||
Equity securities | 3 | 2 | — | 5 | |||||||||||||
Total | $ | 119,315 | $ | 956 | $ | (303 | ) | $ | 119,968 | ||||||||
Securities Held to Maturity | |||||||||||||||||
Municipal obligations | $ | 790 | $ | 118 | $ | — | $ | 908 | |||||||||
Schedule of amortized cost and market value of securities by maturity | The amortized cost and estimated market value of securities at March 31, 2015, by contract maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities with no specified maturity date are separately stated. | ||||||||||||||||
31-Mar-15 | |||||||||||||||||
Amortized | Market | ||||||||||||||||
Cost | Value | ||||||||||||||||
(in thousands) | |||||||||||||||||
Available For Sale: | |||||||||||||||||
Due in one year or less | $ | 6,213 | $ | 6,237 | |||||||||||||
Due after one year through five years | 38,741 | 39,055 | |||||||||||||||
Due in five year through ten years | 16,549 | 16,792 | |||||||||||||||
Due after ten years | 1,290 | 1,417 | |||||||||||||||
Subtotal | 62,793 | 63,501 | |||||||||||||||
Equity securities | 3 | 6 | |||||||||||||||
Mortgage-backed securities | 62,334 | 62,798 | |||||||||||||||
Total | $ | 125,130 | $ | 126,305 | |||||||||||||
Held To Maturity: | |||||||||||||||||
Due in one year or less | $ | 45 | $ | 45 | |||||||||||||
Due after one year through five years | 200 | 212 | |||||||||||||||
Due in five year through ten years | 315 | 360 | |||||||||||||||
Due after ten years | 230 | 274 | |||||||||||||||
Total | $ | 790 | $ | 891 | |||||||||||||
Summary of Temporily Impaired Investments Impaired | The following is a summary of temporarily impaired investments that have been impaired for less than and more than twelve months as of March 31, 2015 and December 31, 2014: | ||||||||||||||||
31-Mar-15 | |||||||||||||||||
Gross | Gross | ||||||||||||||||
Unrealized | Unrealized | ||||||||||||||||
Losses | Losses | ||||||||||||||||
Fair | <12 | Fair | > 12 | ||||||||||||||
Value | months | Value | months | ||||||||||||||
(in thousands) | |||||||||||||||||
Available For Sale: | |||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 2,486 | $ | (8 | ) | $ | 994 | $ | (6 | ) | |||||||
Municipal obligations | 15 | — | 2,204 | (20 | ) | ||||||||||||
Mortgage-backed securities | 6,230 | (24 | ) | 4,419 | (79 | ) | |||||||||||
Equity securities | — | — | — | — | |||||||||||||
Total | $ | 8,731 | $ | (32 | ) | $ | 7,617 | $ | (105 | ) | |||||||
Held to Maturity: | |||||||||||||||||
Municipal obligations | $ | — | $ | — | $ | — | $ | — | |||||||||
31-Dec-14 | |||||||||||||||||
Gross | Gross | ||||||||||||||||
Unrealized | Unrealized | ||||||||||||||||
Losses | Losses | ||||||||||||||||
Fair | <12 | Fair | > 12 | ||||||||||||||
Value | months | Value | months | ||||||||||||||
(in thousands) | |||||||||||||||||
Available For Sale: | |||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 13,672 | $ | (28 | ) | $ | 971 | $ | (29 | ) | |||||||
Municipal obligations | 9,506 | (54 | ) | 4,039 | (75 | ) | |||||||||||
Mortgage-backed securities | 9,923 | (31 | ) | 4,666 | (86 | ) | |||||||||||
Equity securities | — | — | — | — | |||||||||||||
Total | $ | 33,101 | $ | (113 | ) | $ | 9,676 | $ | (190 | ) | |||||||
Held to Maturity: | |||||||||||||||||
Municipal obligations | $ | — | $ | — | $ | — | $ | — | |||||||||
LOANS_AND_ALLOWANCE_FOR_LOAN_L1
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||
Loans Tables | |||||||||||||||||||||||||||||||||
Schedule of composition of loans categorized by the type of loan | The following table sets forth the composition of our loan portfolio by loan type at the dates indicated. | ||||||||||||||||||||||||||||||||
At March 31, | At December 31, | ||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||
Residential mortgage | $ | 73,314 | $ | 71,828 | |||||||||||||||||||||||||||||
Commercial loans: | |||||||||||||||||||||||||||||||||
Construction - real estate | 2,111 | 1,443 | |||||||||||||||||||||||||||||||
Secured by real estate | 60,703 | 62,163 | |||||||||||||||||||||||||||||||
Other | 17,067 | 19,000 | |||||||||||||||||||||||||||||||
Total commercial loans | 79,881 | 82,606 | |||||||||||||||||||||||||||||||
Consumer loans: | |||||||||||||||||||||||||||||||||
Secured by real estate | 9,241 | 9,502 | |||||||||||||||||||||||||||||||
Other | 1,390 | 1,403 | |||||||||||||||||||||||||||||||
Total consumer loans | 10,631 | 10,905 | |||||||||||||||||||||||||||||||
Total gross loans | $ | 163,826 | $ | 165,339 | |||||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||||||
Net deferred loan fees | (252 | ) | (263 | ) | |||||||||||||||||||||||||||||
Allowance for loan losses | (1,444 | ) | (1,429 | ) | |||||||||||||||||||||||||||||
Total loans, net | $ | 162,130 | $ | 163,647 | |||||||||||||||||||||||||||||
Schedule of the change in accretable and nonaccretable yields of acquired impaired loans | Changes to the accretable and non-accretable yield for acquired loans as follows as of March 31, 2015: | ||||||||||||||||||||||||||||||||
Acquired | Acquired | ||||||||||||||||||||||||||||||||
Impaired | Non- | ||||||||||||||||||||||||||||||||
Non- | Imparied | Acquired | |||||||||||||||||||||||||||||||
Accreatable | Accreatable | Total | |||||||||||||||||||||||||||||||
December 31, 2014 balance | $ | (1,232 | ) | $ | (208 | ) | $ | (1,440 | ) | ||||||||||||||||||||||||
Net discount associated with acquired loans | — | — | — | ||||||||||||||||||||||||||||||
Accretion of discount for credit spread | — | 5 | 5 | ||||||||||||||||||||||||||||||
Loans paid off through March 31, 2015 | — | — | — | ||||||||||||||||||||||||||||||
Loans charged off through March 31, 2015 | 81 | — | 81 | ||||||||||||||||||||||||||||||
Total | $ | (1,151 | ) | $ | (203 | ) | $ | (1,354 | ) | ||||||||||||||||||||||||
Schedule of aging of past due loans by class | The following table illustrates the contractual aging of the recorded investment in past due loans by class of loans as of March 31, 2015 and December 31, 2014: | ||||||||||||||||||||||||||||||||
As of March 31, 2015 | |||||||||||||||||||||||||||||||||
Recorded | |||||||||||||||||||||||||||||||||
Greater than | Investment > 90 | ||||||||||||||||||||||||||||||||
Originated Loans: | 30 - 59 Days | 60 - 89 Days | 90 Days | Total | Total | Days and | |||||||||||||||||||||||||||
Past Due | Past Due | Past Due | Past Due | Current | Loans | Accruing | |||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
Commercial Real Estate: | |||||||||||||||||||||||||||||||||
Commercial Real Estate - construction | $ | — | $ | — | $ | — | $ | — | $ | 2,111 | $ | 2,111 | $ | — | |||||||||||||||||||
Commercial Real Estate - other | 760 | — | 9 | 769 | 44,499 | 45,268 | — | ||||||||||||||||||||||||||
Commercial - non real estate | 400 | — | 15 | 415 | 12,613 | 13,028 | 15 | ||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Consumer - Real Estate | — | 17 | 24 | 41 | 7,562 | 7,603 | 17 | ||||||||||||||||||||||||||
Consumer - Other | 9 | — | 8 | 17 | 1,180 | 1,197 | 8 | ||||||||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||||||
Residential | 1,450 | — | 298 | 1,748 | 65,329 | 67,077 | 101 | ||||||||||||||||||||||||||
Total | $ | 2,619 | $ | 17 | $ | 354 | $ | 2,990 | $ | 133,294 | $ | 136,284 | $ | 141 | |||||||||||||||||||
As of March 31, 2015 | |||||||||||||||||||||||||||||||||
Recorded | |||||||||||||||||||||||||||||||||
Greater than | Investment > 90 | ||||||||||||||||||||||||||||||||
Acquired Loans: | 30 - 59 Days | 60 - 89 Days | 90 Days | Total | Total | Days and | |||||||||||||||||||||||||||
Past Due | Past Due | Past Due | Past Due | Current | Loans | Accruing | |||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
Commercial Real Estate: | |||||||||||||||||||||||||||||||||
Commercial Real Estate - construction | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Commercial Real Estate - other | 317 | 110 | 111 | 538 | 14,897 | 15,436 | — | ||||||||||||||||||||||||||
Commercial - non real estate | 88 | — | 105 | 193 | 3,846 | 4,039 | — | ||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Consumer - Real Estate | 5 | — | — | 5 | 1,633 | 1,638 | — | ||||||||||||||||||||||||||
Consumer - Other | 13 | — | — | 13 | 180 | 193 | — | ||||||||||||||||||||||||||
— | |||||||||||||||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||||||
Residential | 228 | — | 285 | 513 | 5,724 | 6,237 | — | ||||||||||||||||||||||||||
Total | $ | 651 | $ | 110 | $ | 501 | $ | 1,262 | $ | 26,280 | $ | 27,543 | $ | — | |||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||||||||||
Recorded | |||||||||||||||||||||||||||||||||
Greater than | Investment > 90 | ||||||||||||||||||||||||||||||||
Originated Loans: | 30 - 59 Days | 60 - 89 Days | 90 Days | Total | Total | Days and | |||||||||||||||||||||||||||
Past Due | Past Due | Past Due | Past Due | Current | Loans | Accruing | |||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
Commercial Real Estate: | |||||||||||||||||||||||||||||||||
Commercial Real Estate - construction | $ | — | $ | — | $ | — | $ | — | $ | 1,443 | $ | 1,443 | $ | — | |||||||||||||||||||
Commercial Real Estate - other | 10 | 195 | — | 205 | 46,103 | 46,308 | — | ||||||||||||||||||||||||||
Commercial - non real estate | — | — | — | — | 14,544 | 14,544 | — | ||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Consumer - Real Estate | 107 | 4 | 7 | 118 | 7,684 | 7,802 | — | ||||||||||||||||||||||||||
Consumer - Other | 3 | — | 3 | 6 | 1,152 | 1,158 | 3 | ||||||||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||||||
Residential | 1,484 | 746 | 386 | 2,616 | 62,326 | 64,942 | 87 | ||||||||||||||||||||||||||
Total | $ | 1,604 | $ | 945 | $ | 396 | $ | 2,945 | $ | 133,252 | $ | 136,197 | $ | 90 | |||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||||||||||
Recorded | |||||||||||||||||||||||||||||||||
Greater than | Investment > 90 | ||||||||||||||||||||||||||||||||
Acquired Loans: | 30 - 59 Days | 60 - 89 Days | 90 Days | Total | Total | Days and | |||||||||||||||||||||||||||
Past Due | Past Due | Past Due | Past Due | Current | Loans | Accruing | |||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
Commercial Real Estate - construction | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Commercial Real Estate - other | 125 | 128 | 93 | 346 | 15,604 | 15,950 | — | ||||||||||||||||||||||||||
Commercial - non real estate | — | 40 | 104 | 144 | 4,217 | 4,361 | — | ||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Consumer - Real Estate | 123 | — | — | 123 | 1,609 | 1,732 | — | ||||||||||||||||||||||||||
Consumer - Other | — | — | — | — | 213 | 213 | — | ||||||||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||||||
Residential | 147 | 56 | 461 | 664 | 6,222 | 6,886 | 225 | ||||||||||||||||||||||||||
Total | $ | 395 | $ | 224 | $ | 658 | $ | 1,277 | $ | 27,865 | $ | 29,142 | $ | 225 | |||||||||||||||||||
Schedule of loans by risk category | The following table presents the risk category of loans by class of loans based on the most recent analysis performed and the contractual aging as of March 31, 2015 and December 31, 2014: | ||||||||||||||||||||||||||||||||
As of March 31, 2015 | |||||||||||||||||||||||||||||||||
Originated Loans: | |||||||||||||||||||||||||||||||||
Commercial Real Estate | Commercial Real Estate | ||||||||||||||||||||||||||||||||
Loan Grade | Construction | Other | Commercial | ||||||||||||||||||||||||||||||
2-Jan | $ | — | $ | — | $ | 29 | |||||||||||||||||||||||||||
3 | — | 14,912 | 5,296 | ||||||||||||||||||||||||||||||
4 | 2,111 | 19,574 | 5,208 | ||||||||||||||||||||||||||||||
4.5 | — | 3,513 | 1,769 | ||||||||||||||||||||||||||||||
5 | — | 5,506 | 288 | ||||||||||||||||||||||||||||||
6 | — | 1,763 | 438 | ||||||||||||||||||||||||||||||
7 | — | — | — | ||||||||||||||||||||||||||||||
8 | — | — | — | ||||||||||||||||||||||||||||||
Total | $ | 2,111 | $ | 45,268 | $ | 13,028 | |||||||||||||||||||||||||||
Acquired Loans: | |||||||||||||||||||||||||||||||||
Commercial Real Estate | Commercial Real Estate | ||||||||||||||||||||||||||||||||
Loan Grade | Construction | Other | Commercial | ||||||||||||||||||||||||||||||
2-Jan | $ | — | $ | 266 | $ | 1,130 | |||||||||||||||||||||||||||
3 | — | 2,579 | 805 | ||||||||||||||||||||||||||||||
4 | — | 10,644 | 900 | ||||||||||||||||||||||||||||||
4.5 | 330 | 18 | |||||||||||||||||||||||||||||||
5 | — | 1,008 | 1,034 | ||||||||||||||||||||||||||||||
6 | — | 608 | 152 | ||||||||||||||||||||||||||||||
7 | — | 0 | 0 | ||||||||||||||||||||||||||||||
8 | — | 0 | 0 | ||||||||||||||||||||||||||||||
Total | $ | — | $ | 15,435 | $ | 4,039 | |||||||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||||||||||
Originated Loans: | |||||||||||||||||||||||||||||||||
Commercial Real Estate | Commercial Real Estate | ||||||||||||||||||||||||||||||||
Loan Grade | Construction | Other | Commercial | ||||||||||||||||||||||||||||||
2-Jan | $ | — | $ | — | $ | 31 | |||||||||||||||||||||||||||
3 | — | 13,565 | 6,088 | ||||||||||||||||||||||||||||||
4 | 1,443 | 21,757 | 7,538 | ||||||||||||||||||||||||||||||
4.5 | — | 3,553 | 252 | ||||||||||||||||||||||||||||||
5 | — | 6,040 | 635 | ||||||||||||||||||||||||||||||
6 | — | 1,393 | — | ||||||||||||||||||||||||||||||
7 | — | — | — | ||||||||||||||||||||||||||||||
8 | — | — | — | ||||||||||||||||||||||||||||||
Total | $ | 1,443 | $ | 46,308 | $ | 14,544 | |||||||||||||||||||||||||||
Acquired Loans: | |||||||||||||||||||||||||||||||||
Commercial Real Estate | Commercial Real Estate | ||||||||||||||||||||||||||||||||
Loan Grade | Construction | Other | Commercial | ||||||||||||||||||||||||||||||
2-Jan | $ | — | $ | 280 | $ | 1,188 | |||||||||||||||||||||||||||
3 | — | 2,696 | 876 | ||||||||||||||||||||||||||||||
4 | — | 10,905 | 970 | ||||||||||||||||||||||||||||||
4.5 | 337 | 21 | |||||||||||||||||||||||||||||||
5 | — | 1,176 | 1,150 | ||||||||||||||||||||||||||||||
6 | — | 547 | 156 | ||||||||||||||||||||||||||||||
7 | — | 9 | 0 | ||||||||||||||||||||||||||||||
8 | — | — | 0 | ||||||||||||||||||||||||||||||
Total | $ | — | $ | 15,950 | $ | 4,361 | |||||||||||||||||||||||||||
For residential real estate and other consumer credit the Company evaluates credit quality based on the aging status of the loan and by payment activity. Loans 60 or more days past due are monitored by the collection committee. | |||||||||||||||||||||||||||||||||
The following tables present the risk category of loans by class based on the most recent analysis performed as of March 31, 2015 and December 31, 2014. | |||||||||||||||||||||||||||||||||
As of March 31, 2015 | |||||||||||||||||||||||||||||||||
Consumer - | |||||||||||||||||||||||||||||||||
Residential | Real Estate | Consumer - Other | |||||||||||||||||||||||||||||||
Originated Loans: | |||||||||||||||||||||||||||||||||
Loan Grade: | |||||||||||||||||||||||||||||||||
Pass | $ | 66,566 | $ | 7,545 | $ | 1,197 | |||||||||||||||||||||||||||
Special Mention | — | — | — | ||||||||||||||||||||||||||||||
Substandard | 511 | 58 | — | ||||||||||||||||||||||||||||||
Total | $ | 67,077 | $ | 7,603 | $ | 1,197 | |||||||||||||||||||||||||||
Consumer - | |||||||||||||||||||||||||||||||||
Residential | Real Estate | Consumer - Other | |||||||||||||||||||||||||||||||
Acquired Loans: | |||||||||||||||||||||||||||||||||
Loan Grade: | |||||||||||||||||||||||||||||||||
Pass | $ | 5,944 | $ | 1,628 | $ | 162 | |||||||||||||||||||||||||||
Special Mention | — | — | — | ||||||||||||||||||||||||||||||
Substandard | 293 | 10 | 31 | ||||||||||||||||||||||||||||||
Total | $ | 6,237 | $ | 1,638 | $ | 193 | |||||||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||||||||||
Consumer - | |||||||||||||||||||||||||||||||||
Residential | Real Estate | Consumer - Other | |||||||||||||||||||||||||||||||
Originated Loans: | |||||||||||||||||||||||||||||||||
Loan Grade: | |||||||||||||||||||||||||||||||||
Pass | $ | 64,397 | $ | 7,778 | $ | 1,155 | |||||||||||||||||||||||||||
Special Mention | — | — | — | ||||||||||||||||||||||||||||||
Substandard | 545 | 24 | 3 | ||||||||||||||||||||||||||||||
Total | $ | 64,942 | $ | 7,802 | $ | 1,158 | |||||||||||||||||||||||||||
Consumer - | |||||||||||||||||||||||||||||||||
Residential | Real Estate | Consumer - Other | |||||||||||||||||||||||||||||||
Acquired Loans: | |||||||||||||||||||||||||||||||||
Loan Grade: | |||||||||||||||||||||||||||||||||
Pass | $ | 6,335 | $ | 1,731 | $ | 213 | |||||||||||||||||||||||||||
Special Mention | — | — | — | ||||||||||||||||||||||||||||||
Substandard | 551 | 1 | — | ||||||||||||||||||||||||||||||
Total | $ | 6,886 | $ | 1,732 | $ | 213 | |||||||||||||||||||||||||||
Schedule of recorded investment in non-accrual loans by class | The following table presents the recorded investment in non-accrual loans by class as of March 31, 2015 and December 31, 2014: | ||||||||||||||||||||||||||||||||
As of | |||||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Commercial Real Estate: | |||||||||||||||||||||||||||||||||
Commercial Real Estate - construction | $ | — | $ | — | |||||||||||||||||||||||||||||
Commercial Real Estate - other | 461 | 486 | |||||||||||||||||||||||||||||||
Commercial | 74 | 77 | |||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Consumer - real estate | 51 | 25 | |||||||||||||||||||||||||||||||
Consumer - other | — | — | |||||||||||||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||||||
Residential | 695 | 750 | |||||||||||||||||||||||||||||||
Total | $ | 1,281 | $ | 1,338 | |||||||||||||||||||||||||||||
Schedule of loans modified as troubled debt restructurings | The Bank has classified approximately $3.4 million of its impaired loans as troubled debt restructurings as of March 31, 2015. | ||||||||||||||||||||||||||||||||
Troubled Debt Restructurings that Subsequently | |||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | Defaulted | ||||||||||||||||||||||||||||||||
For the three months ended March 31, 2015 | For the three months ended March 31, 2015 | ||||||||||||||||||||||||||||||||
Pre-modification | Post-modification | ||||||||||||||||||||||||||||||||
Number of | outstanding recorded | outstanding recorded | |||||||||||||||||||||||||||||||
Loans | investment | investment | Number of Loans | Recorded Investment | |||||||||||||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | ||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | |||||||||||||||||||||||||||||||||
Commercial Real Estate - Construction | — | $ | — | $ | — | — | $ | — | |||||||||||||||||||||||||
Commercial Real Estate - Other | — | — | — | — | — | ||||||||||||||||||||||||||||
Commercial - non real estate | — | — | — | — | — | ||||||||||||||||||||||||||||
Residential | 1 | 110 | 110 | — | — | ||||||||||||||||||||||||||||
Total | 1 | $ | 110 | $ | 110 | — | $ | — | |||||||||||||||||||||||||
Troubled Debt Restructurings that Subsequently | |||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | Defaulted | ||||||||||||||||||||||||||||||||
For the three months ended March 31, 2014 | For the three months ended March 31, 2014 | ||||||||||||||||||||||||||||||||
Pre-modification | Post-modification | ||||||||||||||||||||||||||||||||
Number of | outstanding recorded | outstanding recorded | |||||||||||||||||||||||||||||||
Loans | investment | investment | Number of Loans | Recorded Investment | |||||||||||||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | ||||||||||||||||||||||||||||||||
Commerical Real Estate - Construction | — | $ | — | $ | — | — | $ | — | |||||||||||||||||||||||||
Commercial Real Estate - Other | — | — | — | — | — | ||||||||||||||||||||||||||||
Consumer - Other | — | — | — | — | — | ||||||||||||||||||||||||||||
Residential | — | — | — | — | — | ||||||||||||||||||||||||||||
Total | — | $ | — | $ | — | — | $ | — | |||||||||||||||||||||||||
Schedule of loans individually evaluated for impairment | The following table presents the loans individually evaluated for impairment by class of loans as of March 31, 2015 and December 31, 2014: | ||||||||||||||||||||||||||||||||
As of March 31, 2015 | 2015 | ||||||||||||||||||||||||||||||||
Unpaid Principal | Recorded | Related | Average | Interest | |||||||||||||||||||||||||||||
Balance | Investment | Allowance | Recorded | Income | |||||||||||||||||||||||||||||
Investment | Recognized | ||||||||||||||||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | ||||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial | $ | 15 | $ | 15 | $ | — | $ | 15 | $ | — | |||||||||||||||||||||||
Commercial Real Estate - Construction | — | — | — | — | — | ||||||||||||||||||||||||||||
Commercial Real Estate - Other | 848 | 847 | — | 849 | 12 | ||||||||||||||||||||||||||||
Consumer - Real Estate | 43 | 40 | — | 41 | — | ||||||||||||||||||||||||||||
Consumer - Other | — | — | — | — | — | ||||||||||||||||||||||||||||
Residential | 639 | 554 | — | 492 | 3 | ||||||||||||||||||||||||||||
With a specific allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial | — | — | — | — | — | ||||||||||||||||||||||||||||
Commercial Real Estate - Construction | — | — | — | — | — | ||||||||||||||||||||||||||||
Commercial Real Estate - Other | 955 | 955 | 12 | 959 | 12 | ||||||||||||||||||||||||||||
Consumer - Real Estate | 19 | 19 | 19 | 19 | — | ||||||||||||||||||||||||||||
Consumer - Other | — | — | — | — | — | ||||||||||||||||||||||||||||
Residential | 142 | 140 | 27 | 142 | — | ||||||||||||||||||||||||||||
Totals: | |||||||||||||||||||||||||||||||||
Commercial | $ | 15 | $ | 15 | $ | — | $ | 15 | $ | — | |||||||||||||||||||||||
Commercial Real Estate - Construction | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||
Commercial Real Estate - Other | $ | 1,803 | $ | 1,802 | $ | 12 | $ | 1,808 | $ | 24 | |||||||||||||||||||||||
Consumer - Real Estate | $ | 62 | $ | 59 | $ | 19 | $ | 60 | $ | — | |||||||||||||||||||||||
Consumer - Other | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||
Residential | $ | 781 | $ | 694 | $ | 27 | $ | 634 | $ | 3 | |||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||||||||||
Impaired Loans | March 31, | ||||||||||||||||||||||||||||||||
As of December 31, 2014 | 2014 | ||||||||||||||||||||||||||||||||
Unpaid Principal | Recorded | Related | Average | Interest | |||||||||||||||||||||||||||||
Balance | Investment | Allowance | Recorded | Income | |||||||||||||||||||||||||||||
Investment | Recognized | ||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||
Commercial Real Estate - Construction | — | — | — | — | — | ||||||||||||||||||||||||||||
Commercial Real Estate - Other | 1,431 | 1,430 | — | 1,595 | 21 | ||||||||||||||||||||||||||||
Consumer - Real Estate | 26 | 24 | — | 6 | — | ||||||||||||||||||||||||||||
Consumer - Other | — | — | — | — | — | ||||||||||||||||||||||||||||
Residential | 781 | 618 | — | 382 | 1 | ||||||||||||||||||||||||||||
With a specific allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial | — | — | — | — | — | ||||||||||||||||||||||||||||
Commercial Real Estate - Construction | — | — | — | 173 | — | ||||||||||||||||||||||||||||
Commercial Real Estate - Other | 386 | 386 | 10 | 1,840 | 4 | ||||||||||||||||||||||||||||
Consumer - Real Estate | — | — | — | — | — | ||||||||||||||||||||||||||||
Consumer - Other | — | — | — | — | — | ||||||||||||||||||||||||||||
Residential | — | — | — | 30 | — | ||||||||||||||||||||||||||||
Totals: | |||||||||||||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||
Commercial Real Estate - Construction | $ | — | $ | — | $ | — | $ | 173 | $ | — | |||||||||||||||||||||||
Commercial Real Estate - Other | $ | 1,817 | $ | 1,816 | $ | 10 | $ | 3,435 | $ | 25 | |||||||||||||||||||||||
Consumer - Real Estate | $ | 26 | $ | 24 | $ | — | $ | 6 | $ | — | |||||||||||||||||||||||
Consumer - Other | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||
Residential | $ | 781 | $ | 618 | $ | — | $ | 412 | $ | 1 | |||||||||||||||||||||||
Schedule of activity for allowance for loan losses | Activity in the allowance for loan and lease losses was as follows for the quarters ended March 31, 2015 and 2014, respectively: | ||||||||||||||||||||||||||||||||
For the Three Months Ended March 31, 2015 | |||||||||||||||||||||||||||||||||
Commercial | Commercial | Consumer | |||||||||||||||||||||||||||||||
Construction | Real Estate | Commercial | Real Estate | Consumer | Residential | Unallocated | Total | ||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||||||
Beginning Balance | $ | 8 | $ | 307 | $ | 94 | $ | 33 | $ | 19 | $ | 869 | $ | 99 | $ | 1,429 | |||||||||||||||||
Charge-offs | — | (3 | ) | — | — | (5 | ) | (36 | ) | — | (44 | ) | |||||||||||||||||||||
Recoveries | 12 | 4 | 2 | 4 | — | 14 | — | 36 | |||||||||||||||||||||||||
Provision | (5 | ) | 62 | 9 | 11 | 7 | (34 | ) | (27 | ) | 23 | ||||||||||||||||||||||
Ending Balance | $ | 15 | $ | 370 | $ | 105 | $ | 48 | $ | 21 | $ | 813 | $ | 72 | $ | 1,444 | |||||||||||||||||
For the Three Months Ended March 31, 2014 | |||||||||||||||||||||||||||||||||
Commercial | Commercial | Consumer | |||||||||||||||||||||||||||||||
Construction | Real Estate | Commercial | Real Estate | Consumer | Residential | Unallocated | Total | ||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||||||
Beginning Balance | $ | 48 | $ | 444 | $ | 63 | $ | 62 | $ | 21 | $ | 784 | $ | 50 | $ | 1,472 | |||||||||||||||||
Charge-offs | — | (16 | ) | — | (11 | ) | (6 | ) | (35 | ) | — | (68 | ) | ||||||||||||||||||||
Recoveries | — | 19 | — | 9 | — | 10 | — | 38 | |||||||||||||||||||||||||
Provision | — | (55 | ) | (2 | ) | (11 | ) | 1 | 33 | 50 | 16 | ||||||||||||||||||||||
Ending Balance | $ | 48 | $ | 392 | $ | 61 | $ | 49 | $ | 16 | $ | 792 | $ | 100 | $ | 1,458 | |||||||||||||||||
Loan Balances Individually Evaluated for Impairment | |||||||||||||||||||||||||||||||||
As of March 31, 2015 | |||||||||||||||||||||||||||||||||
Commercial | Commercial | Consumer | |||||||||||||||||||||||||||||||
Construction | Real Estate | Commercial | Real Estate | Consumer | Residential | Unallocated | Total | ||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
Ending allowance balance: individually evaluated for impairment | $ | — | $ | 12 | $ | — | $ | 19 | $ | — | $ | 27 | $ | — | $ | 58 | |||||||||||||||||
Ending allowance balance: individually evaluated for impairment | $ | 15 | $ | 358 | $ | 105 | $ | 29 | $ | 21 | $ | 786 | $ | 72 | $ | 1,386 | |||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||
Ending Balance | $ | 2,111 | $ | 60,703 | $ | 17,067 | $ | 9,241 | $ | 1,390 | $ | 73,314 | $ | — | $ | 163,826 | |||||||||||||||||
Ending balance: individually evaluated for impairment | $ | — | $ | 1,802 | $ | 15 | $ | 59 | $ | — | $ | 694 | $ | — | $ | 2,570 | |||||||||||||||||
Ending balance: loans collectively evaluated for impairment | $ | 2,111 | $ | 43,466 | $ | 13,013 | $ | 7,544 | $ | 1,197 | $ | 66,383 | $ | — | $ | 133,714 | |||||||||||||||||
Acquired loans with deteriorated credit quality not subject to loan loss reserve | $ | — | $ | 1,988 | $ | 866 | $ | 9 | $ | — | $ | 422 | $ | — | $ | 3,285 | |||||||||||||||||
Other acquired loans not subject to loan loss reserve | $ | — | $ | 13,447 | $ | 3,173 | $ | 1,629 | $ | 193 | $ | 5,815 | $ | — | $ | 24,257 | |||||||||||||||||
Loan Balances Individually Evaluated for Impairment | |||||||||||||||||||||||||||||||||
As of March 31, 2014 | |||||||||||||||||||||||||||||||||
Commercial | Commercial | Consumer | |||||||||||||||||||||||||||||||
Construction | Real Estate | Commercial | Real Estate | Consumer | Residential | Unallocated | Total | ||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
Ending allowance balance: individually evaluated for impairment | $ | 48 | $ | 137 | $ | — | $ | — | $ | — | $ | 5 | $ | — | $ | 190 | |||||||||||||||||
Ending allowance balance: individually evaluated for impairment | $ | — | $ | 255 | $ | 61 | $ | 49 | $ | 16 | $ | 787 | $ | 100 | $ | 1,268 | |||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||
Ending Balance | $ | 173 | $ | 51,382 | $ | 12,252 | $ | 8,490 | $ | 1,171 | $ | 63,576 | $ | — | $ | 137,044 | |||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 173 | $ | 3,315 | $ | — | $ | 6 | $ | — | $ | 405 | $ | — | $ | 3,899 | |||||||||||||||||
Ending balance: loans collectively evaluated for impairment | $ | — | $ | 48,067 | $ | 12,252 | $ | 8,484 | $ | 1,171 | $ | 63,171 | $ | — | $ | 133,145 | |||||||||||||||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Schedule of option activity | A summary of option activity under the Plans during the three months ended March 31, 2015 is presented below: | ||||||||||||||||
Weighted-Average | |||||||||||||||||
Weighted- | Remaining | ||||||||||||||||
Average | Contractual Term | Aggregate | |||||||||||||||
Options | Shares | Exercise Price | (Years) | Intrinsic Value | |||||||||||||
Outstanding at January 1, 2015 | 136,030 | $ | 9.54 | 1.4 | $ | 0 | |||||||||||
Granted | 0 | N/A | |||||||||||||||
Exercised | 0 | N/A | |||||||||||||||
Forfeited or expired | (250 | ) | $ | 9.65 | |||||||||||||
Oustanding at March 31, 2015 | 135,780 | $ | 9.54 | 1.1 | $ | 0 | |||||||||||
Options Exercisable at March 31, 2015 | 135,780 | $ | 9.54 | 1.1 | $ | 0 |
COMMITMENTS_TO_EXTEND_CREDIT_T
COMMITMENTS TO EXTEND CREDIT (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Off Balance Sheet Risk Commitments And Contingencies Tables | |||||
Schedule of Outstanding Commitments to Originate Loans | At March 31, 2015, the Company had outstanding commitments to originate loans of $22.2 million. These commitments included the following: | ||||
As of | |||||
31-Mar-15 | |||||
(in thousands) | |||||
Commitments to grant loans | $ | 7,586 | |||
Unfunded commitments under lines of credit | 14,493 | ||||
Commercial and standby letters of credit | 134 |
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Fair Value Measurements Tables | |||||||||||||||||||||
Schedule of assets and liabilities measured at fair value on a recurring basis | The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of March 31, 2015 and December 31, 2014, and the valuation techniques used by the Company to determine those fair values. | ||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis at March 31, 2015 | |||||||||||||||||||||
Quoted | Significant | Significant Unobservable Inputs | Fair Value as | ||||||||||||||||||
Prices in | Other | (Level 3) | of | ||||||||||||||||||
Active | Observable | March 31, | |||||||||||||||||||
Markets for Identical | Inputs | 2015 | |||||||||||||||||||
(Level 2) | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Investment securities- available-for-sale: | |||||||||||||||||||||
US Treasury securities and obligations of U.S. government corporations and agencies | $ | 1,285 | $ | 35,759 | $ | — | $ | 37,044 | |||||||||||||
Municipal obligations | — | 22,664 | 2,253 | 24,917 | |||||||||||||||||
Corporate bonds & other obligations | — | 1,540 | — | 1,540 | |||||||||||||||||
Mortgage-backed securities | — | 62,798 | — | 62,798 | |||||||||||||||||
Equity securities | — | 6 | — | 6 | |||||||||||||||||
Total investment securities - available-for-sale | $ | 1,285 | $ | 122,767 | $ | 2,253 | $ | 126,305 | |||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis at December 31, 2014 | |||||||||||||||||||||
Quoted | Significant | Significant Unobservable Inputs | Fair Value as | ||||||||||||||||||
Prices in | Other | (Level 3) | of December | ||||||||||||||||||
Active | Observable | 31, 2014 | |||||||||||||||||||
Markets for Identical | Inputs | ||||||||||||||||||||
(Level 2) | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Investment securities - available-for-sale: | |||||||||||||||||||||
U.S. Treasury securities and obligations of U.S.government corporations and agencies | $ | 1,279 | $ | 5,763 | $ | — | $ | 7,042 | |||||||||||||
Municipal obligations | — | 11,317 | 2,292 | 13,609 | |||||||||||||||||
Corporate bonds & other obligations | — | 1,097 | — | 1,097 | |||||||||||||||||
Mortgage-backed securities | — | 28,603 | — | 28,603 | |||||||||||||||||
Equity securities | — | 7 | — | 7 | |||||||||||||||||
Total investment securities - available-for-sale | $ | 1,279 | $ | 46,787 | $ | 2,292 | $ | 50,358 | |||||||||||||
Schedule of assets measured at fair value on a nonrecurring basis | The Company has assets that, under certain conditions, are subject to measurement at fair value on a nonrecurring basis. At March 31, 2015 and December 31, 2014, such assets consist primarily of impaired loans and other real estate owned. The Company has estimated the fair values of these assets using Level 3 inputs, specifically discounted cash flow projections. | ||||||||||||||||||||
Assets Measured at Fair Value on a Nonrecurring Basis at March 31, 2015 | |||||||||||||||||||||
Balance at | Quoted Prices in | Significant | Significant | ||||||||||||||||||
31-Mar-15 | Active Markets | Other | Unobservable | ||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||
Assets (Level 1) | Inputs | (Level 3) | |||||||||||||||||||
(Level 2) | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Originated Assets: | |||||||||||||||||||||
Impaired loans accounted for under FASB ASC 310-10 | $ | 1,801 | $ | — | $ | — | $ | 1,801 | |||||||||||||
Other real estate owned -residential mortgages | 591 | — | — | 591 | |||||||||||||||||
Other Real estate owned - commercial | 1,636 | — | — | 1,636 | |||||||||||||||||
Other repossessed assets | 860 | — | — | 860 | |||||||||||||||||
Total assets at fair value on a non-recurring basis | $ | 4,888 | |||||||||||||||||||
Acquired Assets: | |||||||||||||||||||||
Impaired loans accounted for under FASB ASC 310-10 | $ | 525 | $ | — | $ | — | $ | 525 | |||||||||||||
Other real estate owned -residential mortgages | — | — | — | — | |||||||||||||||||
Other real estate owned - commercial | — | — | — | — | |||||||||||||||||
Other repossessed assets | — | — | — | — | |||||||||||||||||
Total assets at fair value on a non-recurring basis | $ | 525 | |||||||||||||||||||
Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2014 | |||||||||||||||||||||
Balance at | Quoted Prices in | Significant | Significant | ||||||||||||||||||
31-Dec-14 | Active Markets | Other | Unobservable | ||||||||||||||||||
for Identical | Observable | Inputs (Level 3) | |||||||||||||||||||
Assets (Level 1) | Inputs (Level 2) | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Originated Assets: | |||||||||||||||||||||
Impaired loans accounted for under FASB ASC 310-10 | $ | 1,806 | $ | — | $ | — | $ | 1,806 | |||||||||||||
Other real estate owned -residential mortgages | 336 | — | — | 336 | |||||||||||||||||
Other real estate owned - commercial | 1,628 | — | — | 1,628 | |||||||||||||||||
Other repossessed assets | 860 | — | — | 860 | |||||||||||||||||
Total assets at fair value on a non-recurring basis | $ | 4,630 | |||||||||||||||||||
Acquired Assets: | |||||||||||||||||||||
Impaired loans accounted for under FASB ASC 310-10 | $ | 396 | $ | — | $ | — | $ | 396 | |||||||||||||
Other real estate owned -residential mortgages | — | — | — | — | |||||||||||||||||
Other real estate owned - commercial | — | — | — | — | |||||||||||||||||
Other repossessed assets | — | — | — | — | |||||||||||||||||
Total assets at fair value on a non-recurring basis | $ | 396 | |||||||||||||||||||
Schedule of carrying value and estimated fair values of Financial Instruments | The estimated fair values and related carrying or notional amounts of the Company’s financial instruments are as follows: | ||||||||||||||||||||
31-Mar-15 | Carrying | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Value | Estimated Fair | ||||||||||||||||||||
Value | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 19,512 | $ | 19,512 | $ | — | $ | — | $ | 19,512 | |||||||||||
Deposits held at other financial institutions | 8,429 | — | 7,218 | 1,240 | 8,458 | ||||||||||||||||
Securities available for sale | 126,305 | 1,285 | 125,020 | — | 126,305 | ||||||||||||||||
Securities held to maturity | 790 | — | 891 | — | 891 | ||||||||||||||||
Loans held for sale | 413 | — | — | 427 | 427 | ||||||||||||||||
Loans receivable - net | 162,130 | — | — | 162,025 | 162,025 | ||||||||||||||||
Federal Home Loan Bank stock | 2,591 | — | 2,591 | — | 2,591 | ||||||||||||||||
Accrued interest receivable | 1,090 | — | — | 1,090 | 1,090 | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Customer deposits | 285,472 | — | 286,031 | — | 286,031 | ||||||||||||||||
Federal Home Loan Bank advances | 20,827 | — | 20,798 | — | 20,798 | ||||||||||||||||
Accrued interest payable | 100 | — | — | 100 | 100 | ||||||||||||||||
31-Dec-14 | Carrying | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Value | Estimated Fair | ||||||||||||||||||||
Value | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 11,472 | $ | 11,472 | $ | — | $ | — | $ | 11,472 | |||||||||||
Deposits held at other financial institutions | 8,429 | — | 8,424 | $ | — | 8,424 | |||||||||||||||
Securities available for sale | 119,968 | — | 119,968 | — | 119,968 | ||||||||||||||||
Securities held to maturity | 790 | — | 908 | — | 908 | ||||||||||||||||
Loans held for sale | 88 | — | — | 90 | 90 | ||||||||||||||||
Loans receivable - net | 163,647 | — | — | 163,690 | 163,690 | ||||||||||||||||
Federal Home Loan Bank stock | 2,591 | — | 2,591 | — | 2,591 | ||||||||||||||||
Accrued interest receivable | 986 | — | — | 986 | 986 | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Customer deposits | 270,734 | — | 271,200 | — | 271,200 | ||||||||||||||||
Federal Home Loan Bank advances | 22,885 | — | 22,696 | — | 22,696 | ||||||||||||||||
Accrued interest payable | 101 | — | — | 101 | 101 |
BUSINESS_COMBINATIONS_Details_
BUSINESS COMBINATIONS (Details Narrative) (USD $) | 0 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Aug. 08, 2014 | Mar. 31, 2015 | Dec. 31, 2014 |
Total assets | $338,932 | $325,867 | |
Bank of Alpena [Member] | |||
Number of branch offices | 1 | ||
Total assets | $102,900 | ||
Shares converted in merger, share ratio | $1.55 | ||
Shares issued for Alpena Banking corporation shares | 842,965 |
BUSINESS_COMBINATIONS_Details
BUSINESS COMBINATIONS (Details) (Bank of Alpena [Member], USD $) | 0 Months Ended |
In Thousands, except Share data, unless otherwise specified | Aug. 08, 2014 |
Bank of Alpena [Member] | |
Shares issued for Alpena Banking corporation shares | 842,965 |
Price per share | $5.59 |
Total purchase price | $4,712 |
BUSINESS_COMBINATIONS_Details_1
BUSINESS COMBINATIONS (Details 1) (Bank of Alpena [Member], USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | Aug. 08, 2014 |
Bank of Alpena [Member] | |
Assets | |
Cash and cash equivalents | $41,650 |
Securities | 24,008 |
Loans | 33,051 |
Premises and Equipment | 1,667 |
Core Deposit Intangible | 1,392 |
Deferred Tax Asset | 337 |
Other Assets | 467 |
Total Assets | 102,572 |
Liabilities | |
Deposits | 95,787 |
Other Liabilities | 91 |
Total Liabilities | 95,878 |
Net Identifable Assets Acquired | 6,694 |
Bargain Purchase Gain | ($1,982) |
BUSINESS_COMBINATIONS_Details_2
BUSINESS COMBINATIONS (Details 2) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Pro-forma results | ||
Net interest income | $2,316 | $1,796 |
Bank of Alpena [Member] | ||
Pro-forma results | ||
Net interest income | 2,316 | 2,375 |
Net interest income | 494 | 442 |
Non-interest expense | 2,431 | 2,543 |
Net income | $356 | $227 |
Net income per diluted shares | $0.10 | $0.06 |
Weighted average shares outstanding | 3,727 | 3,727 |
BUSINESS_COMBINATIONS_Details_3
BUSINESS COMBINATIONS (Details 3) (Bank of Alpena [Member], USD $) | Aug. 08, 2014 |
In Thousands, unless otherwise specified | |
Impaired acquired loans | $4,698 |
Non-impaired acquired loans | 28,353 |
Acquired loans | 33,051 |
Residential Mortgage [Member] | |
Impaired acquired loans | 397 |
Non-impaired acquired loans | 6,992 |
Acquired loans | 7,389 |
Commercial Real Estate Construction [Member] | |
Impaired acquired loans | |
Non-impaired acquired loans | 109 |
Acquired loans | 109 |
Commercial Secured by Real Estate [Member] | |
Impaired acquired loans | 3,070 |
Non-impaired acquired loans | 14,721 |
Acquired loans | 17,791 |
Commercial Real Estate Other [Member] | |
Impaired acquired loans | 1,201 |
Non-impaired acquired loans | 4,213 |
Acquired loans | 5,414 |
Commercial Loans [Member] | |
Impaired acquired loans | 4,271 |
Non-impaired acquired loans | 19,043 |
Acquired loans | 23,314 |
Consumer Loans Secured by Real Estate [Member] | |
Impaired acquired loans | 30 |
Non-impaired acquired loans | 1,568 |
Acquired loans | 1,598 |
Consumer Other [Member] | |
Impaired acquired loans | |
Non-impaired acquired loans | 750 |
Acquired loans | 750 |
Total Consumer Loans [Member] | |
Impaired acquired loans | 30 |
Non-impaired acquired loans | 2,318 |
Acquired loans | $2,348 |
BUSINESS_COMBINATIONS_Details_4
BUSINESS COMBINATIONS (Details 4) (Bank of Alpena [Member], USD $) | Aug. 08, 2014 |
In Thousands, unless otherwise specified | |
Loans acquired - contractual required payments | $34,517 |
Non accretable difference | -1,232 |
Expected cash flows | 33,285 |
Accretable yield | -234 |
Acquired loans | 33,051 |
Impaired Loans [Member] | |
Loans acquired - contractual required payments | 5,930 |
Non accretable difference | -1,232 |
Expected cash flows | 4,698 |
Acquired loans | 4,698 |
Non-Impaired Loans [Member] | |
Loans acquired - contractual required payments | 28,587 |
Expected cash flows | 28,587 |
Accretable yield | -234 |
Acquired loans | $28,353 |
SECURITIES_Details_Narrative
SECURITIES (Details Narrative) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | Number | Number |
Securities Details Narrative | ||
Securities pledged as collateral | $34,000 | $35,000 |
Number of securities with an unrealized loss | 19 | 72 |
Fair value of securities with an unrealized loss | $137 | $303 |
SECURITIES_Details
SECURITIES (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Available for Sale | ||
Available for Sale, Amortized Cost | $125,130 | $119,315 |
Available for Sale, Gross Unrealized Gains | 1,312 | 956 |
Available for Sale, Gross Unrealized (Losses) | -137 | -303 |
Available for Sale, Market Value | 126,305 | 119,968 |
Held to Maturity | ||
Held to Maturity, Amortized Cost | 790 | 790 |
Held to Maturity, Market Value | 891 | |
US Treasury Securities and Obligations of US Government Corporations and Agencies [Member] | ||
Available for Sale | ||
Available for Sale, Amortized Cost | 36,788 | 31,221 |
Available for Sale, Gross Unrealized Gains | 270 | 58 |
Available for Sale, Gross Unrealized (Losses) | -14 | -57 |
Available for Sale, Market Value | 37,044 | 31,222 |
Municipal Notes [Member] | ||
Available for Sale | ||
Available for Sale, Amortized Cost | 24,473 | 22,894 |
Available for Sale, Gross Unrealized Gains | 464 | 369 |
Available for Sale, Gross Unrealized (Losses) | -20 | -129 |
Available for Sale, Market Value | 24,917 | 23,134 |
Held to Maturity | ||
Held to Maturity, Amortized Cost | 790 | 790 |
Held to Maturity Securities, Gross Unrealized Gains | 101 | 118 |
Held to Maturity Securities, Gross Unrealized (Losses) | ||
Held to Maturity, Market Value | 891 | 908 |
Corporate Securities [Member] | ||
Available for Sale | ||
Available for Sale, Amortized Cost | 1,532 | 1,549 |
Available for Sale, Gross Unrealized Gains | 8 | 12 |
Available for Sale, Gross Unrealized (Losses) | ||
Available for Sale, Market Value | 1,540 | 1,561 |
Mortgage Backed Securities [Member] | ||
Available for Sale | ||
Available for Sale, Amortized Cost | 62,334 | 63,648 |
Available for Sale, Gross Unrealized Gains | 567 | 515 |
Available for Sale, Gross Unrealized (Losses) | -103 | -117 |
Available for Sale, Market Value | 62,798 | 64,046 |
Equity Securities [Member] | ||
Available for Sale | ||
Available for Sale, Amortized Cost | 3 | 3 |
Available for Sale, Gross Unrealized Gains | 3 | 2 |
Available for Sale, Gross Unrealized (Losses) | ||
Available for Sale, Market Value | $6 | $5 |
SECURITIES_Details_1
SECURITIES (Details 1) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Amortized cost: | |
Total | $125,130 |
Fair Value: | |
Total | 126,305 |
Amortized Cost: | |
Due in one year or less | 45 |
Due after one year through five years | 200 |
Due after five years through ten years | 315 |
Due after ten years | 230 |
Total | 790 |
Fair Value: | |
Due in one year or less | 45 |
Due after one year through five years | 212 |
Due after five years through ten years | 360 |
Due after ten years | 274 |
Total | 891 |
Equity Securities [Member] | |
Amortized cost: | |
Total | 3 |
Fair Value: | |
Total | 6 |
Mortgage Backed Securities [Member] | |
Amortized cost: | |
Total | 62,334 |
Fair Value: | |
Total | 62,798 |
Available-for-sale Securities | |
Amortized cost: | |
Due in one year or less | 6,213 |
Due after one year through five years | 38,741 |
Due after five years through ten years | 16,549 |
Due after ten years | 1,290 |
Total | 62,793 |
Fair Value: | |
Due in one year or less | 6,237 |
Due after one year through five years | 39,055 |
Due after five years through ten years | 16,792 |
Due after ten years | 1,417 |
Total | $63,501 |
SECURITIES_Details_2
SECURITIES (Details 2) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Securities available for sale | ||
Fair Value Less Than 12 Months | $8,731 | $33,101 |
Unrealized Loss Less Than 12 Months | -32 | -113 |
Fair Value Less Than 12 Months or Longer | 7,617 | 9,676 |
Unrealized Loss Less Than 12 Months or Longer | -105 | -190 |
US Treasury Securities and Obligations of US Government Corporations and Agencies [Member] | ||
Securities available for sale | ||
Fair Value Less Than 12 Months | 2,486 | 13,672 |
Unrealized Loss Less Than 12 Months | -8 | -28 |
Fair Value Less Than 12 Months or Longer | 994 | 971 |
Unrealized Loss Less Than 12 Months or Longer | -6 | -29 |
Municipal Notes [Member] | ||
Securities available for sale | ||
Fair Value Less Than 12 Months | 15 | 9,506 |
Unrealized Loss Less Than 12 Months | -54 | |
Fair Value Less Than 12 Months or Longer | 2,204 | 4,039 |
Unrealized Loss Less Than 12 Months or Longer | -20 | -75 |
Mortgage Backed Securities [Member] | ||
Securities available for sale | ||
Fair Value Less Than 12 Months | 6,230 | 9,923 |
Unrealized Loss Less Than 12 Months | -24 | -31 |
Fair Value Less Than 12 Months or Longer | 4,419 | 4,666 |
Unrealized Loss Less Than 12 Months or Longer | ($79) | ($86) |
LOANS_AND_ALLOWANCE_FOR_LOAN_L2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Gross loans | $163,826 | $165,339 | ||
Net deferred loan fees | -252 | -263 | ||
Allowance for loan losses | -1,444 | -1,429 | 1,458 | 1,472 |
Total loans, net | 162,130 | 163,647 | ||
One-to-Four Family Residential Real Estate [Member] | ||||
Gross loans | 73,314 | 71,828 | ||
Allowance for loan losses | 813 | 869 | 792 | 784 |
Commercial Real Estate Construction [Member] | ||||
Gross loans | 2,111 | 1,443 | ||
Allowance for loan losses | 15 | 8 | 48 | 48 |
Commercial Real Estate [Member] | ||||
Gross loans | 60,703 | 62,163 | ||
Allowance for loan losses | 370 | 307 | 392 | 444 |
Commercial Non Real Estate [Member] | ||||
Gross loans | 17,067 | 19,000 | ||
Commercial Loans [Member] | ||||
Gross loans | 79,881 | 82,606 | ||
Allowance for loan losses | 105 | 94 | 61 | 63 |
Consumer Real Estate [Member] | ||||
Gross loans | 9,241 | 9,502 | ||
Allowance for loan losses | 48 | 33 | 49 | 62 |
Consumer Other [Member] | ||||
Gross loans | 1,390 | 1,403 | ||
Consumer Loans Secured by Real Estate [Member] | ||||
Gross loans | 10,631 | 10,905 | ||
Allowance for loan losses | $21 | $19 | $16 | $21 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L3
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 1) (Acquired Loans [Member], USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Beginning of year | ($1,440) |
Net discount associated with accretable and non-accretable loans acquired during period | |
Accretion of discount for credit spread | 5 |
Loans paid off | |
Loans charged off | 81 |
End of year | -1,354 |
Impaired Loans Non-Accretable [Member] | |
Beginning of year | -1,232 |
Net discount associated with accretable and non-accretable loans acquired during period | |
Accretion of discount for credit spread | |
Loans paid off | |
Loans charged off | 81 |
End of year | -1,151 |
Non-Impaired Loans Accretable [Member] | |
Beginning of year | -208 |
Net discount associated with accretable and non-accretable loans acquired during period | |
Accretion of discount for credit spread | 5 |
Loans paid off | |
Loans charged off | |
End of year | ($203) |
LOANS_AND_ALLOWANCE_FOR_LOAN_L4
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 2) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Gross loans | $163,826 | $165,339 |
Commercial Real Estate Construction [Member] | ||
Gross loans | 2,111 | 1,443 |
Commercial Non Real Estate [Member] | ||
Gross loans | 17,067 | 19,000 |
Consumer Real Estate [Member] | ||
Gross loans | 9,241 | 9,502 |
Consumer Other [Member] | ||
Gross loans | 1,390 | 1,403 |
One-to-Four Family Residential Real Estate [Member] | ||
Gross loans | 73,314 | 71,828 |
Orginated Loans and Leases [Member] | ||
Total past due | 2,990 | 2,945 |
Current | 133,294 | 133,252 |
Gross loans | 136,284 | 136,197 |
Recorded investment > 90 days and accruing | 141 | 90 |
Orginated Loans and Leases [Member] | 30 - 59 Days Past Due [Member] | ||
Total past due | 2,619 | 1,604 |
Orginated Loans and Leases [Member] | 60 - 89 Days Past Due [Member] | ||
Total past due | 17 | 945 |
Orginated Loans and Leases [Member] | Greater than 90 Days Past Due [Member] | ||
Total past due | 354 | 396 |
Orginated Loans and Leases [Member] | Commercial Real Estate Construction [Member] | ||
Total past due | ||
Current | 2,111 | 1,443 |
Gross loans | 2,111 | 1,443 |
Recorded investment > 90 days and accruing | ||
Orginated Loans and Leases [Member] | Commercial Real Estate Other [Member] | ||
Total past due | 769 | 205 |
Current | 44,499 | 46,103 |
Gross loans | 45,268 | 46,308 |
Recorded investment > 90 days and accruing | ||
Orginated Loans and Leases [Member] | Commercial Real Estate Other [Member] | 30 - 59 Days Past Due [Member] | ||
Total past due | 760 | 10 |
Orginated Loans and Leases [Member] | Commercial Real Estate Other [Member] | 60 - 89 Days Past Due [Member] | ||
Total past due | 195 | |
Orginated Loans and Leases [Member] | Commercial Real Estate Other [Member] | Greater than 90 Days Past Due [Member] | ||
Total past due | 9 | |
Orginated Loans and Leases [Member] | Commercial Non Real Estate [Member] | ||
Total past due | 415 | |
Current | 12,613 | 14,544 |
Gross loans | 13,028 | 14,544 |
Recorded investment > 90 days and accruing | 15 | |
Orginated Loans and Leases [Member] | Commercial Non Real Estate [Member] | 30 - 59 Days Past Due [Member] | ||
Total past due | 400 | |
Orginated Loans and Leases [Member] | Commercial Non Real Estate [Member] | Greater than 90 Days Past Due [Member] | ||
Total past due | 15 | |
Orginated Loans and Leases [Member] | Consumer Real Estate [Member] | ||
Total past due | 41 | 118 |
Current | 7,562 | 7,684 |
Gross loans | 7,603 | 7,802 |
Recorded investment > 90 days and accruing | 17 | |
Orginated Loans and Leases [Member] | Consumer Real Estate [Member] | 30 - 59 Days Past Due [Member] | ||
Total past due | 107 | |
Orginated Loans and Leases [Member] | Consumer Real Estate [Member] | 60 - 89 Days Past Due [Member] | ||
Total past due | 17 | 4 |
Orginated Loans and Leases [Member] | Consumer Real Estate [Member] | Greater than 90 Days Past Due [Member] | ||
Total past due | 24 | 7 |
Orginated Loans and Leases [Member] | Consumer Other [Member] | ||
Total past due | 17 | 6 |
Current | 1,180 | 1,152 |
Gross loans | 1,197 | 1,158 |
Recorded investment > 90 days and accruing | 8 | 3 |
Orginated Loans and Leases [Member] | Consumer Other [Member] | 30 - 59 Days Past Due [Member] | ||
Total past due | 9 | 3 |
Orginated Loans and Leases [Member] | Consumer Other [Member] | Greater than 90 Days Past Due [Member] | ||
Total past due | 8 | 3 |
Orginated Loans and Leases [Member] | One-to-Four Family Residential Real Estate [Member] | ||
Total past due | 1,748 | 2,616 |
Current | 65,329 | 62,326 |
Gross loans | 67,077 | 64,942 |
Recorded investment > 90 days and accruing | 101 | 87 |
Orginated Loans and Leases [Member] | One-to-Four Family Residential Real Estate [Member] | 30 - 59 Days Past Due [Member] | ||
Total past due | 1,450 | 1,484 |
Orginated Loans and Leases [Member] | One-to-Four Family Residential Real Estate [Member] | 60 - 89 Days Past Due [Member] | ||
Total past due | 746 | |
Orginated Loans and Leases [Member] | One-to-Four Family Residential Real Estate [Member] | Greater than 90 Days Past Due [Member] | ||
Total past due | 298 | 386 |
Acquired Loans [Member] | ||
Total past due | 1,262 | 1,277 |
Current | 26,280 | 27,865 |
Gross loans | 27,543 | 29,142 |
Recorded investment > 90 days and accruing | 225 | |
Acquired Loans [Member] | 30 - 59 Days Past Due [Member] | ||
Total past due | 651 | 395 |
Acquired Loans [Member] | 60 - 89 Days Past Due [Member] | ||
Total past due | 110 | 224 |
Acquired Loans [Member] | Greater than 90 Days Past Due [Member] | ||
Total past due | 501 | 658 |
Acquired Loans [Member] | Commercial Real Estate Construction [Member] | ||
Total past due | ||
Current | ||
Gross loans | ||
Recorded investment > 90 days and accruing | ||
Acquired Loans [Member] | Commercial Real Estate Construction [Member] | 30 - 59 Days Past Due [Member] | ||
Total past due | 317 | |
Acquired Loans [Member] | Commercial Real Estate Construction [Member] | 60 - 89 Days Past Due [Member] | ||
Total past due | 110 | |
Acquired Loans [Member] | Commercial Real Estate Construction [Member] | Greater than 90 Days Past Due [Member] | ||
Total past due | 111 | |
Acquired Loans [Member] | Commercial Real Estate Other [Member] | ||
Total past due | 538 | 346 |
Current | 14,897 | 15,604 |
Gross loans | 15,435 | 15,950 |
Recorded investment > 90 days and accruing | ||
Acquired Loans [Member] | Commercial Real Estate Other [Member] | 30 - 59 Days Past Due [Member] | ||
Total past due | 88 | 125 |
Acquired Loans [Member] | Commercial Real Estate Other [Member] | 60 - 89 Days Past Due [Member] | ||
Total past due | 128 | |
Acquired Loans [Member] | Commercial Real Estate Other [Member] | Greater than 90 Days Past Due [Member] | ||
Total past due | 105 | 93 |
Acquired Loans [Member] | Commercial Non Real Estate [Member] | ||
Total past due | 193 | 144 |
Current | 3,846 | 4,217 |
Gross loans | 4,039 | 4,361 |
Recorded investment > 90 days and accruing | ||
Acquired Loans [Member] | Commercial Non Real Estate [Member] | 30 - 59 Days Past Due [Member] | ||
Total past due | 5 | |
Acquired Loans [Member] | Commercial Non Real Estate [Member] | 60 - 89 Days Past Due [Member] | ||
Total past due | 40 | |
Acquired Loans [Member] | Commercial Non Real Estate [Member] | Greater than 90 Days Past Due [Member] | ||
Total past due | 104 | |
Acquired Loans [Member] | Consumer Real Estate [Member] | ||
Total past due | 5 | 123 |
Current | 1,633 | 1,609 |
Gross loans | 1,638 | 1,732 |
Recorded investment > 90 days and accruing | ||
Acquired Loans [Member] | Consumer Real Estate [Member] | 30 - 59 Days Past Due [Member] | ||
Total past due | 13 | 123 |
Acquired Loans [Member] | Consumer Other [Member] | ||
Total past due | 13 | |
Current | 180 | 213 |
Gross loans | 193 | 213 |
Recorded investment > 90 days and accruing | ||
Acquired Loans [Member] | One-to-Four Family Residential Real Estate [Member] | ||
Total past due | 513 | 664 |
Current | 5,724 | 6,222 |
Gross loans | 6,237 | 6,886 |
Recorded investment > 90 days and accruing | 225 | |
Acquired Loans [Member] | One-to-Four Family Residential Real Estate [Member] | 30 - 59 Days Past Due [Member] | ||
Total past due | 228 | 147 |
Acquired Loans [Member] | One-to-Four Family Residential Real Estate [Member] | 60 - 89 Days Past Due [Member] | ||
Total past due | 56 | |
Acquired Loans [Member] | One-to-Four Family Residential Real Estate [Member] | Greater than 90 Days Past Due [Member] | ||
Total past due | $285 | $461 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L5
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 3) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Gross loans | $163,826 | $165,339 |
Commercial Real Estate Construction [Member] | ||
Gross loans | 2,111 | 1,443 |
Commercial Non Real Estate [Member] | ||
Gross loans | 17,067 | 19,000 |
Orginated Loans and Leases [Member] | ||
Gross loans | 136,284 | 136,197 |
Orginated Loans and Leases [Member] | Commercial Real Estate Construction [Member] | ||
Gross loans | 2,111 | 1,443 |
Orginated Loans and Leases [Member] | Commercial Real Estate Construction [Member] | Risk Grade 1 (Excellent) and Grade 2 (Good) [Member] | ||
Gross loans | ||
Orginated Loans and Leases [Member] | Commercial Real Estate Construction [Member] | Risk Grade 3 (Satisfactory) [Member] | ||
Gross loans | ||
Orginated Loans and Leases [Member] | Commercial Real Estate Construction [Member] | Risk Grade 4 (Acceptable) [Member] | ||
Gross loans | 2,111 | 1,443 |
Orginated Loans and Leases [Member] | Commercial Real Estate Construction [Member] | Risk Grade 4 (Acceptable) and Risk Grade 5 (Other Assets Especially Mentioned) [Member] | ||
Gross loans | ||
Orginated Loans and Leases [Member] | Commercial Real Estate Construction [Member] | Risk Grade 5 (Other Assets Especially Mentioned) [Member] | ||
Gross loans | ||
Orginated Loans and Leases [Member] | Commercial Real Estate Construction [Member] | Risk Grade 6 (Substandard) [Member] | ||
Gross loans | ||
Orginated Loans and Leases [Member] | Commercial Real Estate Construction [Member] | Risk Grade 7 (Doubtful) [Member] | ||
Gross loans | ||
Orginated Loans and Leases [Member] | Commercial Real Estate Construction [Member] | Risk Grade 8 (Loss) [Member] | ||
Gross loans | ||
Orginated Loans and Leases [Member] | Commercial Real Estate Other [Member] | ||
Gross loans | 45,268 | 46,308 |
Orginated Loans and Leases [Member] | Commercial Real Estate Other [Member] | Risk Grade 1 (Excellent) and Grade 2 (Good) [Member] | ||
Gross loans | ||
Orginated Loans and Leases [Member] | Commercial Real Estate Other [Member] | Risk Grade 3 (Satisfactory) [Member] | ||
Gross loans | 14,912 | 13,565 |
Orginated Loans and Leases [Member] | Commercial Real Estate Other [Member] | Risk Grade 4 (Acceptable) [Member] | ||
Gross loans | 19,574 | 21,757 |
Orginated Loans and Leases [Member] | Commercial Real Estate Other [Member] | Risk Grade 4 (Acceptable) and Risk Grade 5 (Other Assets Especially Mentioned) [Member] | ||
Gross loans | 3,513 | 3,553 |
Orginated Loans and Leases [Member] | Commercial Real Estate Other [Member] | Risk Grade 5 (Other Assets Especially Mentioned) [Member] | ||
Gross loans | 5,506 | 6,040 |
Orginated Loans and Leases [Member] | Commercial Real Estate Other [Member] | Risk Grade 6 (Substandard) [Member] | ||
Gross loans | 1,763 | 1,393 |
Orginated Loans and Leases [Member] | Commercial Real Estate Other [Member] | Risk Grade 7 (Doubtful) [Member] | ||
Gross loans | ||
Orginated Loans and Leases [Member] | Commercial Real Estate Other [Member] | Risk Grade 8 (Loss) [Member] | ||
Gross loans | ||
Orginated Loans and Leases [Member] | Commercial Non Real Estate [Member] | ||
Gross loans | 13,028 | 14,544 |
Orginated Loans and Leases [Member] | Commercial Non Real Estate [Member] | Risk Grade 1 (Excellent) and Grade 2 (Good) [Member] | ||
Gross loans | 29 | 31 |
Orginated Loans and Leases [Member] | Commercial Non Real Estate [Member] | Risk Grade 3 (Satisfactory) [Member] | ||
Gross loans | 5,296 | 6,088 |
Orginated Loans and Leases [Member] | Commercial Non Real Estate [Member] | Risk Grade 4 (Acceptable) [Member] | ||
Gross loans | 5,208 | 7,538 |
Orginated Loans and Leases [Member] | Commercial Non Real Estate [Member] | Risk Grade 4 (Acceptable) and Risk Grade 5 (Other Assets Especially Mentioned) [Member] | ||
Gross loans | 1,769 | 252 |
Orginated Loans and Leases [Member] | Commercial Non Real Estate [Member] | Risk Grade 5 (Other Assets Especially Mentioned) [Member] | ||
Gross loans | 288 | 635 |
Orginated Loans and Leases [Member] | Commercial Non Real Estate [Member] | Risk Grade 6 (Substandard) [Member] | ||
Gross loans | 438 | |
Orginated Loans and Leases [Member] | Commercial Non Real Estate [Member] | Risk Grade 7 (Doubtful) [Member] | ||
Gross loans | ||
Orginated Loans and Leases [Member] | Commercial Non Real Estate [Member] | Risk Grade 8 (Loss) [Member] | ||
Gross loans | ||
Acquired Loans [Member] | ||
Gross loans | 27,543 | 29,142 |
Acquired Loans [Member] | Commercial Real Estate Construction [Member] | ||
Gross loans | ||
Acquired Loans [Member] | Commercial Real Estate Construction [Member] | Risk Grade 1 (Excellent) and Grade 2 (Good) [Member] | ||
Gross loans | ||
Acquired Loans [Member] | Commercial Real Estate Construction [Member] | Risk Grade 3 (Satisfactory) [Member] | ||
Gross loans | ||
Acquired Loans [Member] | Commercial Real Estate Construction [Member] | Risk Grade 4 (Acceptable) [Member] | ||
Gross loans | ||
Acquired Loans [Member] | Commercial Real Estate Construction [Member] | Risk Grade 5 (Other Assets Especially Mentioned) [Member] | ||
Gross loans | ||
Acquired Loans [Member] | Commercial Real Estate Construction [Member] | Risk Grade 6 (Substandard) [Member] | ||
Gross loans | ||
Acquired Loans [Member] | Commercial Real Estate Construction [Member] | Risk Grade 7 (Doubtful) [Member] | ||
Gross loans | ||
Acquired Loans [Member] | Commercial Real Estate Construction [Member] | Risk Grade 8 (Loss) [Member] | ||
Gross loans | ||
Acquired Loans [Member] | Commercial Real Estate Other [Member] | ||
Gross loans | 15,435 | 15,950 |
Acquired Loans [Member] | Commercial Real Estate Other [Member] | Risk Grade 1 (Excellent) and Grade 2 (Good) [Member] | ||
Gross loans | 266 | 280 |
Acquired Loans [Member] | Commercial Real Estate Other [Member] | Risk Grade 3 (Satisfactory) [Member] | ||
Gross loans | 2,579 | 2,696 |
Acquired Loans [Member] | Commercial Real Estate Other [Member] | Risk Grade 4 (Acceptable) [Member] | ||
Gross loans | 10,644 | 10,905 |
Acquired Loans [Member] | Commercial Real Estate Other [Member] | Risk Grade 4 (Acceptable) and Risk Grade 5 (Other Assets Especially Mentioned) [Member] | ||
Gross loans | 330 | 337 |
Acquired Loans [Member] | Commercial Real Estate Other [Member] | Risk Grade 5 (Other Assets Especially Mentioned) [Member] | ||
Gross loans | 1,008 | 1,176 |
Acquired Loans [Member] | Commercial Real Estate Other [Member] | Risk Grade 6 (Substandard) [Member] | ||
Gross loans | 608 | 547 |
Acquired Loans [Member] | Commercial Real Estate Other [Member] | Risk Grade 7 (Doubtful) [Member] | ||
Gross loans | 0 | 9 |
Acquired Loans [Member] | Commercial Real Estate Other [Member] | Risk Grade 8 (Loss) [Member] | ||
Gross loans | 0 | |
Acquired Loans [Member] | Commercial Non Real Estate [Member] | ||
Gross loans | 4,039 | 4,361 |
Acquired Loans [Member] | Commercial Non Real Estate [Member] | Risk Grade 1 (Excellent) and Grade 2 (Good) [Member] | ||
Gross loans | 1,130 | 1,188 |
Acquired Loans [Member] | Commercial Non Real Estate [Member] | Risk Grade 3 (Satisfactory) [Member] | ||
Gross loans | 805 | 876 |
Acquired Loans [Member] | Commercial Non Real Estate [Member] | Risk Grade 4 (Acceptable) [Member] | ||
Gross loans | 900 | 970 |
Acquired Loans [Member] | Commercial Non Real Estate [Member] | Risk Grade 4 (Acceptable) and Risk Grade 5 (Other Assets Especially Mentioned) [Member] | ||
Gross loans | 18 | 21 |
Acquired Loans [Member] | Commercial Non Real Estate [Member] | Risk Grade 5 (Other Assets Especially Mentioned) [Member] | ||
Gross loans | 1,034 | 1,150 |
Acquired Loans [Member] | Commercial Non Real Estate [Member] | Risk Grade 6 (Substandard) [Member] | ||
Gross loans | 152 | 156 |
Acquired Loans [Member] | Commercial Non Real Estate [Member] | Risk Grade 7 (Doubtful) [Member] | ||
Gross loans | 0 | 0 |
Acquired Loans [Member] | Commercial Non Real Estate [Member] | Risk Grade 8 (Loss) [Member] | ||
Gross loans | $0 | $0 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L6
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 4) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Gross loans | $163,826 | $165,339 |
One-to-Four Family Residential Real Estate [Member] | ||
Gross loans | 73,314 | 71,828 |
Consumer Real Estate [Member] | ||
Gross loans | 9,241 | 9,502 |
Commercial Real Estate Construction [Member] | ||
Gross loans | 2,111 | 1,443 |
Consumer Other [Member] | ||
Gross loans | 1,390 | 1,403 |
Orginated Loans and Leases [Member] | ||
Gross loans | 136,284 | 136,197 |
Orginated Loans and Leases [Member] | One-to-Four Family Residential Real Estate [Member] | ||
Gross loans | 67,077 | 64,942 |
Orginated Loans and Leases [Member] | One-to-Four Family Residential Real Estate [Member] | Pass [Member] | ||
Gross loans | 66,566 | 64,397 |
Orginated Loans and Leases [Member] | One-to-Four Family Residential Real Estate [Member] | Risk Grade 6 (Substandard) [Member] | ||
Gross loans | 511 | 545 |
Orginated Loans and Leases [Member] | Consumer Real Estate [Member] | ||
Gross loans | 7,603 | 7,802 |
Orginated Loans and Leases [Member] | Consumer Real Estate [Member] | Pass [Member] | ||
Gross loans | 7,545 | 7,778 |
Orginated Loans and Leases [Member] | Consumer Real Estate [Member] | Risk Grade 6 (Substandard) [Member] | ||
Gross loans | 58 | 24 |
Orginated Loans and Leases [Member] | Commercial Real Estate Construction [Member] | ||
Gross loans | 2,111 | 1,443 |
Orginated Loans and Leases [Member] | Commercial Real Estate Construction [Member] | Risk Grade 5 (Other Assets Especially Mentioned) [Member] | ||
Gross loans | ||
Orginated Loans and Leases [Member] | Commercial Real Estate Construction [Member] | Risk Grade 6 (Substandard) [Member] | ||
Gross loans | ||
Orginated Loans and Leases [Member] | Consumer Other [Member] | ||
Gross loans | 1,197 | 1,158 |
Orginated Loans and Leases [Member] | Consumer Other [Member] | Pass [Member] | ||
Gross loans | 1,197 | 1,155 |
Orginated Loans and Leases [Member] | Consumer Other [Member] | Risk Grade 6 (Substandard) [Member] | ||
Gross loans | 3 | |
Acquired Loans [Member] | ||
Gross loans | 27,543 | 29,142 |
Acquired Loans [Member] | One-to-Four Family Residential Real Estate [Member] | ||
Gross loans | 6,237 | 6,886 |
Acquired Loans [Member] | One-to-Four Family Residential Real Estate [Member] | Pass [Member] | ||
Gross loans | 5,944 | 6,335 |
Acquired Loans [Member] | One-to-Four Family Residential Real Estate [Member] | Risk Grade 6 (Substandard) [Member] | ||
Gross loans | 293 | 551 |
Acquired Loans [Member] | Consumer Real Estate [Member] | ||
Gross loans | 1,638 | 1,732 |
Acquired Loans [Member] | Consumer Real Estate [Member] | Risk Grade 6 (Substandard) [Member] | ||
Gross loans | 10 | 1 |
Acquired Loans [Member] | Commercial Real Estate Construction [Member] | ||
Gross loans | ||
Acquired Loans [Member] | Commercial Real Estate Construction [Member] | Pass [Member] | ||
Gross loans | 1,628 | 1,731 |
Acquired Loans [Member] | Commercial Real Estate Construction [Member] | Risk Grade 5 (Other Assets Especially Mentioned) [Member] | ||
Gross loans | ||
Acquired Loans [Member] | Commercial Real Estate Construction [Member] | Risk Grade 6 (Substandard) [Member] | ||
Gross loans | ||
Acquired Loans [Member] | Consumer Other [Member] | ||
Gross loans | 193 | 213 |
Acquired Loans [Member] | Consumer Other [Member] | Pass [Member] | ||
Gross loans | 162 | 213 |
Acquired Loans [Member] | Consumer Other [Member] | Risk Grade 6 (Substandard) [Member] | ||
Gross loans | $31 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L7
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 5) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Recorded investment in non-accrual loans | $1,281 | $1,338 |
Commercial Real Estate Construction [Member] | ||
Recorded investment in non-accrual loans | ||
Commercial Real Estate Other [Member] | ||
Recorded investment in non-accrual loans | 461 | 486 |
Commercial Loans [Member] | ||
Recorded investment in non-accrual loans | 74 | 77 |
Consumer Real Estate [Member] | ||
Recorded investment in non-accrual loans | 51 | 25 |
Consumer Other [Member] | ||
Recorded investment in non-accrual loans | ||
One-to-Four Family Residential Real Estate [Member] | ||
Recorded investment in non-accrual loans | $695 | $750 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L8
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 6) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Number | |
Troubled Debt Restructuring | |
Number of contracts | 1 |
Pre-modification outstanding recorded investment | $110 |
Post-modification outstanding recorded investment | 110 |
One-to-Four Family Residential Real Estate [Member] | |
Troubled Debt Restructuring | |
Number of contracts | 1 |
Pre-modification outstanding recorded investment | 110 |
Post-modification outstanding recorded investment | $110 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L9
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 7) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Commercial Loans [Member] | |||
With no related allowance recorded: | |||
Unpaid Principal | $15 | ||
Recorded Investment | 15 | ||
Average Recorded Investment | 15 | ||
Total | |||
Unpaid Principal | 15 | ||
Recorded Investment | 15 | ||
Average Recorded Investment | 15 | ||
Commercial Real Estate Construction [Member] | |||
With an allowance recorded: | |||
Average Recorded Investment | 173 | ||
Total | |||
Average Recorded Investment | 173 | ||
Commercial Real Estate Other [Member] | |||
With no related allowance recorded: | |||
Unpaid Principal | 848 | 1,431 | |
Recorded Investment | 847 | 1,430 | |
Average Recorded Investment | 849 | 1,595 | |
Interest income recognized | 12 | 21 | |
With an allowance recorded: | |||
Unpaid Principal | 955 | 386 | |
Related allowance | 955 | 386 | |
Recorded Investment | 12 | 10 | |
Average Recorded Investment | 959 | 1,840 | |
Interest income recognized | 12 | 4 | |
Total | |||
Unpaid Principal | 1,803 | 1,817 | |
Recorded Investment | 1,802 | 1,816 | |
Average Recorded Investment | 1,808 | 3,435 | |
Interest income recognized | 24 | 25 | |
Consumer Real Estate [Member] | |||
With no related allowance recorded: | |||
Unpaid Principal | 43 | 26 | |
Recorded Investment | 40 | 24 | |
Average Recorded Investment | 41 | 6 | |
With an allowance recorded: | |||
Unpaid Principal | 19 | ||
Related allowance | 19 | ||
Recorded Investment | 19 | ||
Average Recorded Investment | 19 | ||
Total | |||
Unpaid Principal | 62 | 26 | |
Recorded Investment | 59 | 24 | |
Average Recorded Investment | 60 | 6 | |
One-to-Four Family Residential Real Estate [Member] | |||
With no related allowance recorded: | |||
Unpaid Principal | 639 | 781 | |
Recorded Investment | 554 | 618 | |
Average Recorded Investment | 492 | 382 | |
Interest income recognized | 3 | 1 | |
With an allowance recorded: | |||
Unpaid Principal | 142 | ||
Related allowance | 140 | ||
Recorded Investment | 27 | ||
Average Recorded Investment | 142 | 30 | |
Interest income recognized | |||
Total | |||
Unpaid Principal | 781 | 781 | |
Recorded Investment | 694 | 618 | |
Average Recorded Investment | 634 | 412 | |
Interest income recognized | $3 | $1 |
Recovered_Sheet1
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 8) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2013 |
Allowance for loan losses: | |||
Beginning Balance | ($1,429) | $1,472 | |
Charge offs | -44 | -68 | |
Recoveries | 36 | 38 | |
Provision | 23 | 16 | |
Ending balance | -1,444 | 1,458 | |
Individually evaluated for impairment | 58 | 190 | |
Collectively evaluated for impairment | 1,386 | 1,268 | |
Loans receivable (gross): | |||
Gross loans | 163,826 | 137,044 | |
Individually evaluated for impairment | 2,570 | 3,899 | |
Collectively evaluated for impairment | 133,714 | 133,145 | |
Acquired loans not subject to loan loss reserve | 3,285 | ||
Other acquired loans not subject to loan loss reserve | 24,257 | ||
Commercial Real Estate Construction [Member] | |||
Allowance for loan losses: | |||
Beginning Balance | 8 | 48 | |
Recoveries | 12 | ||
Provision | -5 | ||
Ending balance | 15 | 48 | 48 |
Individually evaluated for impairment | 48 | ||
Collectively evaluated for impairment | 15 | ||
Loans receivable (gross): | |||
Gross loans | 2,111 | 173 | |
Individually evaluated for impairment | 173 | ||
Collectively evaluated for impairment | 2,111 | ||
Commercial Real Estate [Member] | |||
Allowance for loan losses: | |||
Beginning Balance | 307 | 444 | |
Charge offs | -3 | -16 | |
Recoveries | 4 | 19 | |
Provision | 62 | -55 | |
Ending balance | 370 | 392 | |
Individually evaluated for impairment | 12 | 137 | |
Collectively evaluated for impairment | 358 | 255 | |
Loans receivable (gross): | |||
Gross loans | 60,703 | 51,382 | |
Individually evaluated for impairment | 1,802 | 3,315 | |
Collectively evaluated for impairment | 43,466 | 48,067 | |
Acquired loans not subject to loan loss reserve | 1,988 | ||
Other acquired loans not subject to loan loss reserve | 13,447 | ||
Commercial Loans [Member] | |||
Allowance for loan losses: | |||
Beginning Balance | 94 | 63 | |
Recoveries | 2 | ||
Provision | 9 | -2 | |
Ending balance | 105 | 61 | |
Collectively evaluated for impairment | 105 | 61 | |
Loans receivable (gross): | |||
Gross loans | 17,067 | 12,252 | |
Individually evaluated for impairment | 15 | ||
Collectively evaluated for impairment | 13,013 | 12,252 | |
Acquired loans not subject to loan loss reserve | 866 | ||
Other acquired loans not subject to loan loss reserve | 3,173 | ||
Consumer Real Estate [Member] | |||
Allowance for loan losses: | |||
Beginning Balance | 33 | 62 | |
Charge offs | -11 | ||
Recoveries | 4 | 9 | |
Provision | 11 | -11 | |
Ending balance | 48 | 49 | |
Individually evaluated for impairment | 19 | ||
Collectively evaluated for impairment | 29 | 49 | |
Loans receivable (gross): | |||
Gross loans | 9,241 | 8,490 | |
Individually evaluated for impairment | 59 | 6 | |
Collectively evaluated for impairment | 7,544 | 8,484 | |
Acquired loans not subject to loan loss reserve | 9 | ||
Other acquired loans not subject to loan loss reserve | 1,629 | ||
Consumer Loans Secured by Real Estate [Member] | |||
Allowance for loan losses: | |||
Beginning Balance | 19 | 21 | |
Charge offs | -5 | -6 | |
Provision | 7 | 1 | |
Ending balance | 21 | 16 | |
Collectively evaluated for impairment | 21 | 16 | |
Loans receivable (gross): | |||
Gross loans | 1,390 | 1,171 | |
Collectively evaluated for impairment | 1,197 | 1,171 | |
Other acquired loans not subject to loan loss reserve | 193 | ||
One-to-Four Family Residential Real Estate [Member] | |||
Allowance for loan losses: | |||
Beginning Balance | 869 | 784 | |
Charge offs | -36 | -35 | |
Recoveries | 14 | 10 | |
Provision | -34 | 33 | |
Ending balance | 813 | 792 | |
Individually evaluated for impairment | 27 | 5 | |
Collectively evaluated for impairment | 786 | 787 | |
Loans receivable (gross): | |||
Gross loans | 73,314 | 63,576 | |
Individually evaluated for impairment | 694 | 405 | |
Collectively evaluated for impairment | 66,383 | 63,171 | |
Acquired loans not subject to loan loss reserve | 422 | ||
Other acquired loans not subject to loan loss reserve | 5,815 | ||
Unallocated Financing Receivables [Member] | |||
Allowance for loan losses: | |||
Beginning Balance | 99 | 50 | |
Provision | -27 | 50 | |
Ending balance | 72 | 100 | |
Collectively evaluated for impairment | $72 | $100 |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details Narrative) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Closing stock price | 5.95 |
2006 Stock-Based Incentive Plan [Member] | |
Number of awards authorized | 242,740 |
Stock Options [Member] | |
Vesting term | 5 years |
Contractual term | 10 years |
Stock Options [Member] | 2006 Stock-Based Incentive Plan [Member] | |
Number of awards authorized | 173,386 |
Stock Options [Member] | 1996 Stock-Based Incentive Plan [Member] | |
Number of awards authorized | 127,491 |
Restricted Stock [Member] | 2006 Stock-Based Incentive Plan [Member] | |
Number of awards authorized | 69,354 |
STOCKBASED_COMPENSATION_Detail1
STOCK-BASED COMPENSATION (Details) (USD $) | 3 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 |
Number of Options | |
Outstanding, Beginning balance | 136,030 |
Forfeited or expired | -250 |
Outstanding, Ending balance | 135,780 |
Options Exercisable | 135,780 |
Weighted Average Exercise Price | |
Outstanding, Beginning Balance | $9.54 |
Forfeited or expired | $9.65 |
Outstanding, Ending Balance | $9.54 |
Options Exercisable | $9.54 |
Weighted Average Remaining Contractual Term | |
Outstanding, Beginning | 1 year 4 months 24 days |
Outstanding, ending | 1 year 1 month 6 days |
Options exercisable | 1 year 1 month 6 days |
Aggregate Intrinsic Value | |
Outstanding, Beginning Balance | $0 |
Outstanding, Ending Balance | 0 |
Options Exercisable | $0 |
COMMITMENTS_TO_EXTEND_CREDIT_D
COMMITMENTS TO EXTEND CREDIT (Details Narrative) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Commitments To Extend Credit Details Narrative | |
Obligations to extend credit for loan commitments | $22,200 |
COMMITMENTS_TO_EXTEND_CREDIT_D1
COMMITMENTS TO EXTEND CREDIT (Details) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Unfunded commitments under lines of credit [Member] | |
Commitments | $14,493 |
Commercial and standby letters of credit [Member] | |
Commitments | 134 |
Commitments to grant loans [Member] | |
Commitments | $7,586 |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Securities available for sale | $126,305 | $119,968 |
US Treasury Securities and Obligations of US Government Corporations and Agencies [Member] | ||
Securities available for sale | 37,044 | 31,222 |
Municipal Notes [Member] | ||
Securities available for sale | 24,917 | 23,134 |
Corporate Securities [Member] | ||
Securities available for sale | 1,540 | 1,561 |
Equity Securities [Member] | ||
Securities available for sale | 6 | 5 |
Mortgage Backed Securities [Member] | ||
Securities available for sale | 62,798 | 64,046 |
Carrying Value [Member] | ||
Securities available for sale | 126,305 | 119,968 |
Fair Value [Member] | ||
Securities available for sale | 126,305 | 119,968 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Securities available for sale | 1,285 | |
Significant Other Observable Inputs (Level 2) [Member] | ||
Securities available for sale | 125,020 | 119,968 |
Recurring [Member] | Fair Value [Member] | ||
Securities available for sale | 126,305 | 50,358 |
Recurring [Member] | Fair Value [Member] | US Treasury Securities and Obligations of US Government Corporations and Agencies [Member] | ||
Securities available for sale | 37,044 | 7,042 |
Recurring [Member] | Fair Value [Member] | Municipal Notes [Member] | ||
Securities available for sale | 24,917 | 13,609 |
Recurring [Member] | Fair Value [Member] | Corporate Securities [Member] | ||
Securities available for sale | 1,540 | 1,097 |
Recurring [Member] | Fair Value [Member] | Equity Securities [Member] | ||
Securities available for sale | 6 | 7 |
Recurring [Member] | Fair Value [Member] | Mortgage Backed Securities [Member] | ||
Securities available for sale | 62,798 | 28,603 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Securities available for sale | 1,285 | 1,279 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | US Treasury Securities and Obligations of US Government Corporations and Agencies [Member] | ||
Securities available for sale | 1,285 | 1,279 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Municipal Notes [Member] | ||
Securities available for sale | ||
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate Securities [Member] | ||
Securities available for sale | ||
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Securities [Member] | ||
Securities available for sale | ||
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Mortgage Backed Securities [Member] | ||
Securities available for sale | ||
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Securities available for sale | 122,767 | 46,787 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | US Treasury Securities and Obligations of US Government Corporations and Agencies [Member] | ||
Securities available for sale | 35,759 | 5,763 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Municipal Notes [Member] | ||
Securities available for sale | 22,664 | 11,317 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate Securities [Member] | ||
Securities available for sale | 1,540 | 1,097 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Equity Securities [Member] | ||
Securities available for sale | 6 | 7 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Mortgage Backed Securities [Member] | ||
Securities available for sale | 62,798 | 28,603 |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Securities available for sale | 2,253 | 2,292 |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | US Treasury Securities and Obligations of US Government Corporations and Agencies [Member] | ||
Securities available for sale | ||
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Municipal Notes [Member] | ||
Securities available for sale | 2,253 | 2,292 |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Corporate Securities [Member] | ||
Securities available for sale | ||
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Equity Securities [Member] | ||
Securities available for sale | ||
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Mortgage Backed Securities [Member] | ||
Securities available for sale |
FAIR_VALUE_MEASUREMENTS_Detail1
FAIR VALUE MEASUREMENTS (Details 1) (Nonrecurring [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Originated Assets [Member] | Fair Value [Member] | ||
Fair Value Assets Measured on a Nonrecurring Basis | ||
Impaired loans | $1,801 | $1,806 |
Other real estate owned - residential mortgages | 591 | 336 |
Other real estate owned - commercial | 1,636 | 1,628 |
Other repossessed assets | 860 | 860 |
Originated Assets [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 1,801 | 1,806 |
Other real estate owned - residential mortgages | 591 | 336 |
Other real estate owned - commercial | 1,636 | 1,628 |
Other repossessed assets | 860 | 860 |
Total assets measured at fair value on a non-recurring basis | 4,888 | 4,630 |
Acquired Assets [Member] | Fair Value [Member] | ||
Fair Value Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 525 | 396 |
Acquired Assets [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 525 | 396 |
Total assets measured at fair value on a non-recurring basis | $525 | $396 |
FAIR_VALUE_MEASUREMENTS_Detail2
FAIR VALUE MEASUREMENTS (Details 2) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Financial assets: | ||
Deposits held at other financial institutions | $8,429 | $8,429 |
Securities available for sale | 126,305 | 119,968 |
Securities held to maturity | 891 | |
Carrying Value [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 19,512 | 11,472 |
Deposits held at other financial institutions | 8,429 | 8,429 |
Securities available for sale | 126,305 | 119,968 |
Securities held to maturity | 790 | 790 |
Loans held for sale | 413 | 88 |
Loans receivable - net | 162,130 | 163,647 |
Federal Home Loan Bank stock | 2,591 | 2,591 |
Accrued interest receivable | 1,090 | 986 |
Financial liabilities: | ||
Customer deposits | 285,472 | 270,734 |
Federal Home Loan Bank advances | 20,827 | 22,885 |
Accrued interest payable | 100 | 101 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 19,512 | 11,472 |
Securities available for sale | 1,285 | |
Significant Other Observable Inputs (Level 2) [Member] | ||
Financial assets: | ||
Deposits held at other financial institutions | 7,218 | 8,424 |
Securities available for sale | 125,020 | 119,968 |
Securities held to maturity | 891 | 908 |
Federal Home Loan Bank stock | 2,591 | 2,591 |
Financial liabilities: | ||
Customer deposits | 286,031 | 271,200 |
Federal Home Loan Bank advances | 20,798 | 22,696 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Financial assets: | ||
Deposits held at other financial institutions | 1,240 | |
Loans held for sale | 427 | 90 |
Loans receivable - net | 162,025 | 163,690 |
Accrued interest receivable | 1,090 | 986 |
Financial liabilities: | ||
Accrued interest payable | 100 | 101 |
Fair Value [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 19,512 | 11,472 |
Deposits held at other financial institutions | 8,458 | 8,424 |
Securities available for sale | 126,305 | 119,968 |
Securities held to maturity | 891 | 908 |
Loans held for sale | 427 | 90 |
Loans receivable - net | 162,025 | 163,690 |
Federal Home Loan Bank stock | 2,591 | 2,591 |
Accrued interest receivable | 1,090 | 986 |
Financial liabilities: | ||
Customer deposits | 286,031 | 271,200 |
Federal Home Loan Bank advances | 20,798 | 22,696 |
Accrued interest payable | $100 | $101 |