Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 14, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | First Federal of Northern Michigan Bancorp, Inc. | |
Entity Central Index Key | 1,128,227 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 3,727,014 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,015 |
Consolidated Balance Sheet (Una
Consolidated Balance Sheet (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Cash and cash equivalents: | ||
Cash on hand and due from banks | $ 5,332 | $ 11,205 |
Overnight deposits with FHLB | 59 | 267 |
Total cash and cash equivalents | 5,391 | 11,472 |
Deposits Held in other financial institutions | 8,428 | 8,429 |
Securities available for sale | 125,584 | 119,968 |
Securities held to maturity | 745 | 790 |
Loans held for sale | 121 | 88 |
Loans receivable, net of allowance for loan losses of $1,488 and $1,429 as of June 30, 2015 and December 31, 2014, respectively | 165,612 | 163,647 |
Foreclosed real estate and other repossessed assets | 2,857 | 2,823 |
Federal Home Loan Bank stock, at cost | 1,636 | 2,591 |
Premises and equipment | 6,250 | 6,336 |
Assets held for sale | 271 | 478 |
Accrued interest receivable | 1,041 | 986 |
Intangible assets | 1,165 | 1,286 |
Deferred tax asset | 863 | 851 |
Originated mortgage servicing rights | 641 | 710 |
Bank owned life insurance | 4,791 | 4,727 |
Other assets | 580 | 685 |
Total assets | 325,976 | 325,867 |
Liabilities: | ||
Deposits | 269,979 | 270,734 |
Advances from borrowers for taxes and insurance | 563 | 203 |
Advances from Federal Home Loan Bank | 23,217 | 22,885 |
Accrued expenses and other liabilities | 1,148 | 1,509 |
Total liabilities | 294,907 | 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 | 5,351 | 4,765 |
Treasury stock at cost (307,750 shares) | (2,964) | (2,964) |
Accumulated other comprehensive income | 378 | 431 |
Total stockholders' equity | 31,069 | 30,536 |
Total liabilities and stockholders' equity | $ 325,976 | $ 325,867 |
Consolidated Balance Sheet (Un3
Consolidated Balance Sheet (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Allowance for loan losses (in dollar) | $ 1,488 | $ 1,429 |
Common stock, par value (in dollars 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 Incom
Consolidated Statement of Income and Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Interest income: | ||||
Interest and fees on loans | $ 2,033 | $ 1,691 | $ 4,038 | $ 3,401 |
Interest and dividends on investments | ||||
Taxable | 327 | 150 | 621 | 300 |
Tax-exempt | 30 | 41 | 60 | 83 |
Interest on mortgage-backed securities | 265 | 143 | 553 | 286 |
Total interest income | 2,655 | 2,025 | 5,272 | 4,070 |
Interest expense: | ||||
Interest on deposits | 240 | 192 | 475 | 378 |
Interest on borrowings | 68 | 67 | 134 | 130 |
Total interest expense | 308 | 259 | 609 | 508 |
Net interest income | 2,347 | $ 1,766 | 4,663 | 3,562 |
(Recovery of) provision for loan losses | (45) | (22) | 16 | |
Net interest income after provision for loan losses | 2,392 | $ 1,766 | 4,685 | 3,546 |
Non-interest income: | ||||
Service charges and other fees | 236 | 188 | 454 | 369 |
Mortgage banking activities | 149 | $ 128 | 250 | $ 224 |
Net gain on sale of securities | 1 | 1 | ||
Net (loss) gain on sale of premises and equipment, real estate owned and other repossessed assets | (1) | $ (21) | 90 | $ (26) |
Other | 102 | 49 | 186 | 114 |
Total non-interest income | 487 | 344 | 981 | 681 |
Non-interest expense: | ||||
Compensation and employee benefits | 1,507 | 1,110 | 2,926 | 2,219 |
FDIC Insurance Premiums | 55 | 45 | 119 | 91 |
Advertising | 49 | 44 | 93 | 72 |
Occupancy | 267 | 219 | 547 | 456 |
Amortization of intangible assets | 61 | 10 | 121 | 40 |
Service bureau charges | 102 | 84 | 205 | 146 |
Professional services | 137 | 165 | 247 | 294 |
Collection activity | (6) | 11 | 57 | 29 |
Real estate owned & other repossessed assets | 28 | 12 | 46 | 29 |
Other | 299 | 316 | 570 | 535 |
Total non-interest expense | 2,499 | 2,016 | 4,931 | 3,911 |
Income before income tax expense | $ 380 | $ 94 | $ 735 | $ 316 |
Income tax expense | ||||
Net income | $ 380 | $ 94 | $ 735 | $ 316 |
Other Comprehensive Income: | ||||
Unrealized (loss) gain on investment securities - available for sale securities - net of tax | $ (293) | $ 161 | $ 53 | $ 434 |
Reclassification adjustment for gains realized in earnings - net of tax | ||||
Comprehensive Income | $ 87 | $ 255 | $ 788 | $ 750 |
Net income per share | ||||
Basic (in dollars per share) | $ 0.1 | $ 0.03 | $ 0.2 | $ 0.11 |
Diluted (in dollars per share) | $ 0.1 | $ 0.03 | $ 0.2 | $ 0.11 |
Weighted average number of shares outstanding | ||||
Basic (in shares) | 3,727,014 | 2,884,049 | 3,727,014 | 2,884,049 |
Including dilutive stock options | 3,727,014 | 2,884,049 | 3,727,014 | 2,884,049 |
Dividends per common share (in dollars per share) | $ 0.02 | $ 0.02 | $ 0.04 | $ 0.04 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - 6 months ended Jun. 30, 2015 - USD ($) $ in Thousands | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Total |
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 | $ 735 | 735 | ||||
Change in unrealized gain on available-for-sale securities (net of tax of $140) | $ (53) | (53) | ||||
Dividends declared | $ (149) | (149) | ||||
Ending Balance at Jun. 30, 2015 | $ 40 | $ (2,964) | $ 28,264 | $ 5,351 | $ 378 | $ 31,069 |
Consolidated Statement of Chan6
Consolidated Statement of Changes in Stockholders' Equity (Unaudited) (Parenthetical) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Change in unrealized gain on available-for-sale securities, tax | $ 140 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash Flows from Operating Activities: | ||
Net income | $ 735 | $ 316 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation and amortization | 313 | 184 |
(Recovery of) provision for loan loss | (22) | $ 16 |
Accretion of acquired loans | (5) | |
Amortization and accretion on securities | 457 | $ 204 |
Gain on sale of loans held for sale | (139) | (89) |
Gain on sale of property and equipment and asset held for sale | (81) | $ 21 |
Gain on sale of available for sale securities | (1) | |
(Gain) Loss on sale of real estate owned and other repossessed assets | (9) | $ 6 |
Originations of loans held for sale | (8,121) | (5,523) |
Proceeds from sale of loans held for sale | 8,227 | 5,406 |
Net change in: | ||
Accrued interest receivable | (55) | 31 |
Other assets | 190 | (9) |
Bank owned life insurance | (64) | (58) |
Accrued expenses and other liabilities | (362) | (47) |
Net cash provided by operating activities | 1,064 | 458 |
Cash Flows from Investing Activities: | ||
Net (increase) decrease in loans | (2,435) | 965 |
Proceeds from maturies and calls of available-for-sale securities | 14,463 | 5,570 |
Proceeds from sale of real estate owned and other repossessed assets | 472 | $ 317 |
Proceeds from sale of available-for-sale securities | 1,761 | |
Proceeds from sale of property and equipment | 288 | $ 2 |
Proceeds from sale of FHLB stock | 955 | |
Purchase of securities | (22,331) | $ (16,186) |
Purchase of premises and equipment | (106) | (86) |
Net cash used in investing activities | (6,933) | (9,418) |
Cash Flows from Financing Activities: | ||
Dividends paid on common stock | (149) | (115) |
Net (decrease) increase in deposits | (755) | 8,970 |
Net increase in advances from borrowers | 360 | 232 |
Advances from Federal Home Loan Bank | 8,000 | 12,055 |
Repayments of Federal Home Loan Bank advances | (7,668) | (11,711) |
Net cash (used in) provided by financing activities | (212) | 9,431 |
Net (decrease) increase in cash and cash equivalents | (6,081) | 471 |
Cash and cash equivalents at beginning of period | 11,472 | 2,766 |
Cash and cash equivalents at end of period | 5,391 | $ 3,237 |
Supplemental disclosure of cash flow information: | ||
Cash refunded for taxes paid | 15 | |
Cash paid during the period for interest | 533 | $ 509 |
Transfers of loans to foreclosed real estate and repossessed assets | $ 497 | $ 265 |
BASIS OF FINANCIAL STATEMENT PR
BASIS OF FINANCIAL STATEMENT PRESENTATION | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 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 | 6 Months Ended |
Jun. 30, 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. FSMC was dissolved in the first quarter of 2015 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 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 | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 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 For the Six Months Ended June 30, June 30, 2015 2014 2015 2014 Net interest income $ 2,347 $ 2,953 $ 4,663 $ 5,848 Non-interest income 487 632 981 1,232 Non-interest expense 2,499 3,069 4,931 6,089 Net income 380 476 735 897 Net income per basic and diluted share 0.10 0.17 0.20 0.31 Weighted average shares outstanding 3,727 2,884 3,727 2,884 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 | 6 Months Ended |
Jun. 30, 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: June 30, 2015 Amortized Gross Unrealized Gains Gross Unrealized (Losses) Market (in thousands) Securities Available for Sale U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 33,210 $ 157 $ (50 ) 33,317 Municipal obligations 27,660 330 (108 ) 27,882 Corporate bonds & other obligations 1,514 5 — 1,519 Mortgage-backed securities 62,625 374 (139 ) 62,860 Equity securities 3 3 — 6 Total $ 125,012 $ 869 $ (297 ) $ 125,584 Securities Held to Maturity Municipal obligations $ 745 $ 1 $ — $ 746 December 31, 2014 Amortized Gross Unrealized Gains Gross Unrealized (Losses) Market (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 June 30, 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. June 30, 2015 Amortized Market (in thousands) Available For Sale: Due in one year or less $ 2,866 $ 2,882 Due after one year through five years 41,333 41,520 Due in five year through ten years 16,953 16,995 Due after ten years 1,232 1,321 Subtotal 62,384 62,718 Equity securities 3 6 Mortgage-backed securities 62,625 62,860 Total $ 125,012 $ 125,584 Held To Maturity: Due in one year or less $ 45 $ 45 Due after one year through five years 210 210 Due in five year through ten years 335 336 Due after ten years 155 155 Total $ 745 $ 746 At June 30, 2015 and December 31, 2014, securities with a carrying value and fair value of $29.9 million and $35.0 million, respectively, were pledged to secure certain deposit accounts, FHLB advances and our line of credit at the Federal Reserve. For the six months ended June 30, 2015 there were 2 bonds sold with a carrying value of $1.8 million at a gain of $1,000 and there were no sales recorded for the six months ended June 30, 2014. The following is a summary of securities that had unrealized losses at June 30, 2015 and December 31, 2014. The information is presented for securities that have been in an unrealized loss position for less than 12 months and for more than 12 months. At June 30, 2015 there were 52 securities with unrealized losses totaling $297,000 and at December 31, 2014, the Company held 72 securities with unrealized losses totaling $303,000. June 30, 2015 Gross Unrealized Losses Gross Unrealized Losses Fair Value <12 months Fair Value > 12 months (in thousands) Available For Sale: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 6,344 $ (22 ) $ 972 $ (28 ) Municipal obligations 10,227 (80 ) 2,196 (28 ) Mortgage-backed securities 13,381 (52 ) 4,124 (87 ) Equity securities — — — — Total $ 29,952 $ (154 ) $ 7,292 $ (143 ) Held to Maturity: Municipal obligations $ — $ — $ — $ — December 31, 2014 Gross Unrealized Losses Gross Unrealized Losses Fair Value <12 months Fair Value > 12 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 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
LOANS | 6 Months Ended |
Jun. 30, 2015 | |
Loans | |
LOANS | Note 5 — LOANS The following table sets forth the composition of our loan portfolio by loan type at the dates indicated. At June 30, At December 31, 2015 2014 (in thousands) Real estate loans: Residential mortgage $ 74,937 $ 71,828 Commercial loans: Construction - real estate 198 1,443 Secured by real estate 63,820 62,163 Other 17,685 19,000 Total commercial loans 81,703 82,606 Consumer loans: Secured by real estate 9,183 9,502 Other 1,531 1,403 Total consumer loans 10,714 10,905 Total gross loans $ 167,354 $ 165,339 Less: Net deferred loan fees (254 ) (263 ) Allowance for loan losses (1,488 ) (1,429 ) Total loans, net $ 165,612 $ 163,647 As of June 30, 2015 the total outstanding balance and carrying value of acquired impaired loans was $4.4 million and $3.2 million, respectively. Changes to the accretable and non-accretable yield for acquired loans were as follows as of June 30, 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 — 34 34 Transfer from non-accreatable to accreatable 25 (25 ) — Loans paid off through June 30, 2015 — — — Loans charged off through June 30, 2015 81 — 81 Total $ (1,126 ) $ (199 ) $ (1,325 ) The following table illustrates the contractual aging of the recorded investment in past due loans by class of loans as of June 30, 2015 and December 31, 2014: As of June 30, 2015 Recorded Greater Investment > 90 Originated Loans: 30 - 59 60 - 89 than 90 Days Total Total Days Past Due Past Due Past Due Past Due Current Loans Accruing (dollars in thousands) Commercial Real Estate: Commercial Real Estate - construction $ — $ — $ — $ — $ 198 $ 198 $ — Commercial Real Estate - other 595 82 — 677 48,462 49,139 — Commercial - non real estate 282 — — 282 13,794 14,076 — Consumer: Consumer - Real Estate 36 — 7 43 7,485 7,528 — Consumer - Other — — 6 6 1,361 1,367 6 Residential: Residential 1,783 231 87 2,101 67,041 69,142 87 Total $ 2,696 $ 313 $ 100 $ 3,109 $ 138,341 $ 141,450 $ 93 As of June 30, 2015 Recorded Greater Investment > 90 Acquired Loans: 30 - 59 60 - 89 than Total Total Days 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 209 224 187 620 14,061 14,681 51 Commercial - non real estate — 398 151 549 3,060 3,609 — Consumer: Consumer - Real Estate — — — — 1,655 1,655 — Consumer - Other — — — — 164 164 — — Residential: Residential — 223 321 544 5,251 5,795 42 Total $ 209 $ 845 $ 659 $ 1,713 $ 24,191 $ 25,904 $ 93 As of December 31, 2014 Recorded Greater Investment > 90 Originated Loans: 30 - 59 60 - 89 than Total Total Days 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 Investment > 90 Acquired Loans: 30 - 59 60 - 89 than Total Total Days 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 Risk Grade 2 Risk Grade 3 Risk Grade 4 Risk Grade 4.5 Risk Grade 5 Risk Grade 6 Grade 7 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 commercial loans by class of loans based on the most recent analysis performed and the contractual aging as of June 30, 2015 and December 31, 2014: As of June 30, 2015 Originated Loans: Commercial Real Estate Commercial Real Estate Loan Grade Construction Other Commercial 1-2 $ — $ 700 $ 27 3 — 15,118 5,753 4 178 22,449 5,837 4.5 20 3,328 1,670 5 — 2,811 135 6 — 4,732 654 7 — — — 8 — — — Total $ 198 $ 49,138 $ 14,076 Acquired Loans: Commercial Real Estate Commercial Real Estate Loan Grade Construction Other Commercial 1-2 $ — $ 251 $ 1,046 3 — 2,244 860 4 — 10,202 823 4.5 472 14 5 — 736 415 6 — 777 451 7 — 0 0 8 — 0 0 Total $ — $ 14,682 $ 3,609 As of December 31, 2014 Originated Loans: Commercial Real Estate Commercial Real Estate Loan Grade Construction Other Commercial 1-2 $ — $ — $ 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 1-2 $ — $ 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 also 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 these loans by class based on the most recent analysis performed as of June 30, 2015 and December 31, 2014: As of June 30, 2015 Consumer - Residential Real Consumer - Originated Loans: Loan Grade: Pass $ 68,661 $ 7,485 $ 1,367 Special Mention — — — Substandard 481 43 — Total $ 69,142 $ 7,528 $ 1,367 Consumer - Residential Real Consumer - Acquired Loans: Loan Grade: Pass $ 5,466 $ 1,646 $ 137 Special Mention — — — Substandard 329 9 27 Total $ 5,795 $ 1,655 $ 164 As of December 31, 2014 Consumer - Residential Real Consumer - 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 Consumer - 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 June 30, 2015 and December 31, 2014: As of June 30, 2015 December 31, 2014 (in thousands) Commercial Real Estate: Commercial Real Estate - construction $ — $ — Commercial Real Estate - other 437 486 Commercial 72 77 Consumer: Consumer - real estate 42 25 Consumer - other — — Residential: Residential 673 750 Total $ 1,224 $ 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 $3.2 million of its impaired loans as troubled debt restructurings as of June 30, 2015. There were no commitments to extend credit to borrowers with loans classified as troubled debt restructurings as of June 30, 2015 and December 31, 2014. Troubled Debt Restructurings that Troubled Debt Restructurings For the three months ended June 30, Number of Loans Pre-modification outstanding recorded investment Post-modification outstanding recorded 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 — — — — — Total — $ — $ — — $ — Troubled Debt Restructurings that Subsequently Defaulted Troubled Debt Restructurings For the three months ended June 30, Number of Loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Number of Loans Recorded Investment (dollars in thousands) (dollars in thousands) Commerical Real Estate - Construction — $ — $ — — $ — Commercial Real Estate - Other — — — — — Consumer - Other — — — — — Residential — — — — — Total — $ — $ — — $ — Troubled Debt Restructurings that Subsequently Defaulted Troubled Debt Restructurings For the six months ended June 30, Number of Pre-modification outstanding Post-modification outstanding Number of Recorded Investment (dollars in thousands) (dollars in thousands) Troubled Debt Restructurings Commerical Real Estate - Construction — $ — $ — — $ — Commercial Real Estate - Other — — — — — Consumer - Real Estate — — — — — Residential 1 110 110 — — Total 1 110 110 — — Troubled Debt Restructurings that Troubled Debt Restructurings For the six months ended June 30, Number of Loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Number of Loans Recorded Investment (dollars in thousands) (dollars in Commerical Real Estate - Construction — $ — $ — — $ — Commercial Real Estate - Other — — — — — Consumer - Real Estate — — — — — Residential — — — — — Total — — — — — For the majority of the Bank’s impaired loans, the Bank will apply the market value of collateral methodology. 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 delinquency, 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-offs may be realized as further unsecured positions are recognized. The following table presents loans individually evaluated for impairment by class of loans as of June 30, 2015 and December 31, 2014: For the Three For the Six Impaired Loans June 30, June 30, As of June 30, 2015 2015 2015 Unpaid Principal Recorded Related Average Interest Average Interest Balance Investment Allowance Recorded Income Recorded Income Investment Recognized Investment Recognized (dollars in thousands) (dollars in thousands) (dollars in thousands) With no related allowance recorded: Commercial $ — $ — $ — $ — $ — $ — $ — Commercial Real Estate - Construction — — — — — — — Commercial Real Estate - Other 793 791 — 801 13 824 25 Consumer - Real Estate 22 20 — 20 — 20 — Consumer - Other — — — — — — — Residential 419 332 — 339 2 341 5 With a specific allowance recorded: Commercial — — — — — — — Commercial Real Estate - Construction — — — — — — — Commercial Real Estate - Other 945 945 11 949 12 954 24 Consumer - Real Estate 18 17 17 18 — 18 — Consumer - Other 6 6 2 6 — 6 — Residential 227 221 39 223 — 222 — Totals: Commercial $ — $ — $ — $ — $ — $ — $ — Commercial Real Estate - Construction $ — $ — $ — $ — $ — $ — $ — Commercial Real Estate - Other $ 1,738 $ 1,736 $ 11 $ 1,750 $ 25 $ 1,778 $ 49 Consumer - Real Estate $ 40 $ 37 $ 17 $ 38 $ — $ 38 $ — Consumer - Other $ 6 $ 6 $ 2 $ 6 $ — $ 6 $ — Residential $ 646 $ 553 $ 39 $ 562 $ 2 $ 563 $ 5 For the Three For the Six June 30, June 30, Impaired Loans 2014 2014 As of December 31, 2014 Average Interest Average Interest Balance Investment Allowance Recorded Income Recorded Income Investment Recognized Investment Recognized (dollars in thousands) (dollars in thousands) (dollars in thousands) With no related allowance recorded: Commercial $ — $ — $ — $ — $ — $ — $ — Commercial Real Estate - Construction — — — — — — — Commercial Real Estate - Other 1,431 1,430 — 1,460 21 1,527 42 Consumer - Real Estate 26 24 — 16 — 16 — Consumer - Other — — — — — — — Residential 781 618 — 553 3 554 4 With a specific allowance recorded: Commercial — — — — — — — Commercial Real Estate - Construction — — — 173 — 173 — Commercial Real Estate - Other 386 386 10 1,837 4 1,838 9 Consumer - Real Estate — — — — — — — Consumer - Other — — — — — — — Residential — — — 90 1 90 1 Totals: Commercial 0 0 0 — — 0 — Commercial Real Estate - Construction $ — $ — $ — $ 173 $ — $ 173 $ — Commercial Real Estate - Other $ 1,817 $ 1,816 $ 10 $ 3,297 $ 25 $ 3,365 $ 51 Consumer - Real Estate $ 26 $ 24 $ — $ 16 $ — $ 16 $ — Consumer - Other $ — $ — $ — $ — $ — $ — $ — Residential $ 781 $ 618 $ — $ 643 $ 4 $ 644 $ 5 The allowance for loan and lease loss (“ALLL”) 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 three and six months ended June 30, 2015 and June 30, 2014, respectively: Allowance for Credit Losses and Recorded Investment in Financing Receivables For the Three Months Ended June 30, 2015 Commercial Commercial Consumer Construction Real Estate Commercial Real Estate Consumer Residential Unallocated Total (dollars in thousands) Allowance for credit losses: Beginning Balance $ 15 $ 370 $ 105 $ 48 $ 21 $ 813 $ 72 $ 1,444 Charge-offs — — — (4 ) (7 ) — — (11 ) Recoveries — 61 2 17 — 20 — 100 Provision (15 ) 61 33 (19 ) 4 (113 ) 4 (45 ) Ending Balance $ — $ 492 $ 140 $ 42 $ 18 $ 721 $ 75 $ 1,488 For the Six Months Ended June 30, 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 ) — (4 ) (12 ) (36 ) — (55 ) Recoveries 12 65 4 21 — 34 — 136 Provision (20 ) 123 42 (8 ) 12 (146 ) (25 ) (22 ) Ending Balance $ — $ 492 $ 140 $ 42 $ 18 $ 721 $ 75 $ 1,488 Loan Balances Evaluated for Impairment As of June 30, 2015 Commercial Commercial Consumer Construction Real Estate Commercial Real Estate Consumer Residential Unallocated Total (dollars in thousands) Allowance for loan losses as of June 30, 2015 Ending balance: individually evaluated for impairment $ — $ 11 $ — $ 17 $ 2 $ 39 $ — $ 69 Ending balance: loans collectively evaluated for impairment $ — $ 481 $ 140 $ 25 $ 16 $ 682 $ 75 $ 1,419 Loans as of June 30, 2015 Loans: Ending Balance $ 198 $ 63,820 $ 17,685 $ 9,183 $ 1,531 $ 74,937 $ — $ 167,354 Ending balance: individually evaluated for impairment $ — $ 1,736 $ — $ 37 $ 6 $ 553 $ — $ 2,332 Ending balance: loans collectively evaluated for impairment $ 198 $ 47,403 $ 14,076 $ 7,491 $ 1,361 $ 68,589 $ — $ 139,118 Acquired loans with deteriorated credit quality not subject to loan loss reserve $ — $ 2,015 $ 773 $ 4 $ — $ 416 $ — $ 3,208 Other acquired loans not subject to loan loss reserve $ — $ 12,666 $ 2,836 $ 1,651 $ 164 $ 5,379 $ — $ 22,696 Allowance for Credit Losses and Recorded Investment in Financing Receivables For the Three Months Ended June 30, 2014 Commercial Commercial Consumer Construction Real Estate Commercial Real Estate Consumer Residential Unallocated Total (dollars in thousands) Allowance for credit losses: Beginning Balance $ 48 $ 392 $ 61 $ 49 $ 16 $ 792 $ 100 $ 1,458 Charge-offs — — — — (1 ) (10 ) — (11 ) Recoveries — 12 — 14 — 14 — 40 Provision — 22 11 (25 ) 1 (13 ) 4 — Ending Balance $ 48 $ 426 $ 72 $ 38 $ 16 $ 783 $ 104 $ 1,487 For the Six Months Ended June 30, 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 ) — (13 ) (6 ) (45 ) — (80 ) Recoveries — 32 — 23 — 24 — 79 Provision — (34 ) 9 (34 ) 1 20 54 16 Ending Balance $ 48 $ 426 $ 72 $ 38 $ 16 $ 783 $ 104 $ 1,487 Loan Balances Evaluated for Impairment As of June 30, 2014 Commercial Commercial Consumer Construction Real Estate Commercial Real Estate Consumer Residential Unallocated Total (dollars in thousands) Allowance for loan losses as of June 30, 2014 Ending balance: individually evaluated for impairment $ 48 $ 136 $ — $ — $ — $ 25 $ — $ 209 Ending balance: loans collectively evaluated for impairment $ — $ 290 $ 72 $ 38 $ 16 $ 758 $ 104 $ 1,278 Loans as of June 30, 2014 Loans: Ending Balance $ 173 $ 50,197 $ 12,477 $ 8,282 $ 1,193 $ 64,498 $ — $ 136,820 Ending balance: individually evaluated for impairment $ 173 $ 3,284 $ — $ 16 $ — $ 633 $ — $ 4,106 Ending balance: loans collectively evaluated for impairment $ — $ 46,913 $ 12,477 $ 8,266 $ 1,193 $ 63,865 $ — $ 132,714 |
DIVIDENDS
DIVIDENDS | 6 Months Ended |
Jun. 30, 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. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 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 FASB 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 (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 the 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 and six months ended June 30, 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 - 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 (8,650 ) $ 9.52 Oustanding at June 30, 2015 127,380 $ 9.54 0.9 $ 0 Options Exercisable at June 30, 2015 127,380 $ 9.54 0.9 $ 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 $6.39 on June 30, 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 June 30, 2015. This amount changes based on the fair market value of the stock. As of June 30, 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 June 30, 2015. In addition, there were no non-vested options as of June 30, 2015. Restricted Stock Awards |
COMMITMENTS TO EXTEND CREDIT
COMMITMENTS TO EXTEND CREDIT | 6 Months Ended |
Jun. 30, 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 June 30, 2015, the Company had outstanding commitments to originate loans of $28.4 million. These commitments included the following: As of June 30, 2015 (in thousands) Commitments to grant loans $ 11,955 Unfunded commitments under lines of credit 16,264 Commercial and standby letters of credit 134 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 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 June 30, 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 June 30, 2015 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Balance at (dollars in thousands) Assets Investment securities- available-for-sale: US Treasury securities and obligations of U.S. government corporations and agencies $ 1,282 $ 32,035 $ — $ 33,317 Municipal obligations — 26,347 1,535 27,882 Corporate bonds & other obligations — 1,519 — 1,519 Mortgage-backed securities — 62,860 — 62,860 Equity securities 6 — — 6 Total investment securities - available-for-sale $ 1,288 $ 122,761 $ 1,535 $ 125,584 Assets and Liabilities Measured at Fair Value on a Recurring Basis at December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs Fair Value (dollars in thousands) Assets Investment securities - available-for-sale: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ — $ 31,222 $ — $ 31,222 Municipal obligations — 20,842 2,292 23,134 Corporate bonds & other obligations — 1,561 — 1,561 Mortgage-backed securities — 64,046 — 64,046 Equity securities 5 — — 5 Total investment securities - available-for-sale $ 5 $ 117,671 $ 2,292 $ 119,968 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. There were no transfers between Levels 1 and 2 of the fair value hierarchy from December 31, 2014 to June 30, 2015. For the available for sale securities, the Company obtains fair value measurements from an independent third-party service. The Company has assets that, under certain conditions, are subject to measurement at fair value on a nonrecurring basis. At June 30, 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 June 30, 2015 Balance at Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs (dollars in thousands) Originated Assets: Impaired loans accounted for under FASB ASC 310-10 $ 1,736 $ — $ — $ 1,736 Other real estate owned -residential mortgages 527 — — 527 Other Real estate owned - commercial 1,568 — — 1,568 Other repossessed assets 761 — — 761 Total assets at fair value on a non-recurring basis $ 4,592 Acquired Assets: Impaired loans accounted for under FASB ASC 310-10 $ 501 $ — $ — $ 501 Other real estate owned -residential mortgages — — — — Other real estate owned - commercial — — — — Other repossessed assets — — — — Total assets at fair value on a non-recurring basis $ 501 Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2014 Balance at Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (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 The following methods and assumptions were used by the Company in estimating fair value disclosures for financial instruments: Cash and Cash Equivalents Investment Securities Loans Receivable Loans Held For Sale Federal Home Loan Bank Stock Deposit Liabilities Federal Home Loan Bank Advances Accrued Interest The estimated fair values and related carrying or notional amounts of the Company’s financial instruments are as follows: June 30, 2015 Carrying Level 1 Level 2 Level 3 Total (in thousands) Financial assets: Cash and cash equivalents $ 5,391 $ 5,391 $ — $ — $ 5,391 Deposits held at other financial institutions 8,428 — 7,218 1,240 8,458 Securities available for sale 125,584 1,282 122,767 1,535 125,584 Securities held to maturity 745 — 746 — 746 Loans held for sale 121 — — 124 124 Loans receivable - net 165,612 — — 164,658 164,658 Federal Home Loan Bank stock 1,636 — 1,636 — 1,636 Accrued interest receivable 1,041 — — 1,041 1,041 Financial liabilities: Customer deposits 269,979 — 270,541 — 270,541 Federal Home Loan Bank advances 23,217 — 23,053 — 23,053 Accrued interest payable 101 — — 101 101 December 31, 2014 Carrying Level 1 Level 2 Level 3 Total (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) | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Schedule of purchase price of acquisition | Purchase Price: (000Â’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 | For the Three Months Ended For the Six Months Ended June 30, June 30, 2015 2014 2015 2014 Net interest income $ 2,347 $ 2,953 $ 4,663 $ 5,848 Non-interest income 487 632 981 1,232 Non-interest expense 2,499 3,069 4,931 6,089 Net income 380 476 735 897 Net income per basic and diluted share 0.10 0.17 0.20 0.31 Weighted average shares outstanding 3,727 2,884 3,727 2,884 |
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) | 6 Months Ended |
Jun. 30, 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: June 30, 2015 Amortized Gross Unrealized Gains Gross Unrealized (Losses) Market (in thousands) Securities Available for Sale U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 33,210 $ 157 $ (50 ) 33,317 Municipal obligations 27,660 330 (108 ) 27,882 Corporate bonds & other obligations 1,514 5 — 1,519 Mortgage-backed securities 62,625 374 (139 ) 62,860 Equity securities 3 3 — 6 Total $ 125,012 $ 869 $ (297 ) $ 125,584 Securities Held to Maturity Municipal obligations $ 745 $ 1 $ — $ 746 December 31, 2014 Amortized Gross Unrealized Gains Gross Unrealized (Losses) Market (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 June 30, 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. June 30, 2015 Amortized Market (in thousands) Available For Sale: Due in one year or less $ 2,866 $ 2,882 Due after one year through five years 41,333 41,520 Due in five year through ten years 16,953 16,995 Due after ten years 1,232 1,321 Subtotal 62,384 62,718 Equity securities 3 6 Mortgage-backed securities 62,625 62,860 Total $ 125,012 $ 125,584 Held To Maturity: Due in one year or less $ 45 $ 45 Due after one year through five years 210 210 Due in five year through ten years 335 336 Due after ten years 155 155 Total $ 745 $ 746 |
Summary of Temporily Impaired Investments Impaired | The following is a summary of securities that had unrealized losses at June 30, 2015 and December 31, 2014. The information is presented for securities that have been in an unrealized loss position for less than 12 months and for more than 12 months. At June 30, 2015 there were 52 securities with unrealized losses totaling $297,000 and at December 31, 2014, the Company held 72 securities with unrealized losses totaling $303,000. June 30, 2015 Gross Unrealized Losses Gross Unrealized Losses Fair Value <12 months Fair Value > 12 months (in thousands) Available For Sale: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 6,344 $ (22 ) $ 972 $ (28 ) Municipal obligations 10,227 (80 ) 2,196 (28 ) Mortgage-backed securities 13,381 (52 ) 4,124 (87 ) Equity securities — — — — Total $ 29,952 $ (154 ) $ 7,292 $ (143 ) Held to Maturity: Municipal obligations $ — $ — $ — $ — December 31, 2014 Gross Unrealized Losses Gross Unrealized Losses Fair Value <12 months Fair Value > 12 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 (Tables)
LOANS (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, At December 31, 2015 2014 (in thousands) Real estate loans: Residential mortgage $ 74,937 $ 71,828 Commercial loans: Construction - real estate 198 1,443 Secured by real estate 63,820 62,163 Other 17,685 19,000 Total commercial loans 81,703 82,606 Consumer loans: Secured by real estate 9,183 9,502 Other 1,531 1,403 Total consumer loans 10,714 10,905 Total gross loans $ 167,354 $ 165,339 Less: Net deferred loan fees (254 ) (263 ) Allowance for loan losses (1,488 ) (1,429 ) Total loans, net $ 165,612 $ 163,647 |
Schedule of the change in accretable and nonaccretable yields of acquired impaired loans | As of June 30, 2015 the total outstanding balance and carrying value of acquired impaired loans was $4.4 million and $3.2 million, respectively. Changes to the accretable and non-accretable yield for acquired loans were as follows as of June 30, 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 — 34 34 Transfer from non-accreatable to accreatable 25 (25 ) — Loans paid off through June 30, 2015 — — — Loans charged off through June 30, 2015 81 — 81 Total $ (1,126 ) $ (199 ) $ (1,325 ) |
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 June 30, 2015 and December 31, 2014: As of June 30, 2015 Recorded Greater Investment > 90 Originated Loans: 30 - 59 60 - 89 than 90 Days Total Total Days Past Due Past Due Past Due Past Due Current Loans Accruing (dollars in thousands) Commercial Real Estate: Commercial Real Estate - construction $ — $ — $ — $ — $ 198 $ 198 $ — Commercial Real Estate - other 595 82 — 677 48,462 49,139 — Commercial - non real estate 282 — — 282 13,794 14,076 — Consumer: Consumer - Real Estate 36 — 7 43 7,485 7,528 — Consumer - Other — — 6 6 1,361 1,367 6 Residential: Residential 1,783 231 87 2,101 67,041 69,142 87 Total $ 2,696 $ 313 $ 100 $ 3,109 $ 138,341 $ 141,450 $ 93 As of June 30, 2015 Recorded Greater Investment > 90 Acquired Loans: 30 - 59 60 - 89 than Total Total Days 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 209 224 187 620 14,061 14,681 51 Commercial - non real estate — 398 151 549 3,060 3,609 — Consumer: Consumer - Real Estate — — — — 1,655 1,655 — Consumer - Other — — — — 164 164 — — Residential: Residential — 223 321 544 5,251 5,795 42 Total $ 209 $ 845 $ 659 $ 1,713 $ 24,191 $ 25,904 $ 93 As of December 31, 2014 Recorded Greater Investment > 90 Originated Loans: 30 - 59 60 - 89 than Total Total Days 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 Investment > 90 Acquired Loans: 30 - 59 60 - 89 than Total Total Days 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 commercial loans by class of loans based on the most recent analysis performed and the contractual aging as of June 30, 2015 and December 31, 2014: As of June 30, 2015 Originated Loans: Commercial Real Estate Commercial Real Estate Loan Grade Construction Other Commercial 1-2 $ — $ 700 $ 27 3 — 15,118 5,753 4 178 22,449 5,837 4.5 20 3,328 1,670 5 — 2,811 135 6 — 4,732 654 7 — — — 8 — — — Total $ 198 $ 49,138 $ 14,076 Acquired Loans: Commercial Real Estate Commercial Real Estate Loan Grade Construction Other Commercial 1-2 $ — $ 251 $ 1,046 3 — 2,244 860 4 — 10,202 823 4.5 472 14 5 — 736 415 6 — 777 451 7 — 0 0 8 — 0 0 Total $ — $ 14,682 $ 3,609 As of December 31, 2014 Originated Loans: Commercial Real Estate Commercial Real Estate Loan Grade Construction Other Commercial 1-2 $ — $ — $ 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 1-2 $ — $ 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 also 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 these loans by class based on the most recent analysis performed as of June 30, 2015 and December 31, 2014: As of June 30, 2015 Consumer - Residential Real Consumer - Originated Loans: Loan Grade: Pass $ 68,661 $ 7,485 $ 1,367 Special Mention — — — Substandard 481 43 — Total $ 69,142 $ 7,528 $ 1,367 Consumer - Residential Real Consumer - Acquired Loans: Loan Grade: Pass $ 5,466 $ 1,646 $ 137 Special Mention — — — Substandard 329 9 27 Total $ 5,795 $ 1,655 $ 164 As of December 31, 2014 Consumer - Residential Real Consumer - 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 Consumer - 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 June 30, 2015 and December 31, 2014: As of June 30, 2015 December 31, 2014 (in thousands) Commercial Real Estate: Commercial Real Estate - construction $ — $ — Commercial Real Estate - other 437 486 Commercial 72 77 Consumer: Consumer - real estate 42 25 Consumer - other — — Residential: Residential 673 750 Total $ 1,224 $ 1,338 |
Schedule of loans modified as troubled debt restructurings | The Bank has classified approximately $3.2 million of its impaired loans as troubled debt restructurings as of June 30, 2015. There were no commitments to extend credit to borrowers with loans classified as troubled debt restructurings as of June 30, 2015 and December 31, 2014. Troubled Debt Restructurings that Troubled Debt Restructurings For the three months ended June 30, Number of Loans Pre-modification outstanding recorded investment Post-modification outstanding recorded 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 — — — — — Total — $ — $ — — $ — Troubled Debt Restructurings that Subsequently Defaulted Troubled Debt Restructurings For the three months ended June 30, Number of Loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Number of Loans Recorded Investment (dollars in thousands) (dollars in thousands) Commerical Real Estate - Construction — $ — $ — — $ — Commercial Real Estate - Other — — — — — Consumer - Other — — — — — Residential — — — — — Total — $ — $ — — $ — Troubled Debt Restructurings that Subsequently Defaulted Troubled Debt Restructurings For the six months ended June 30, Number of Pre-modification outstanding Post-modification outstanding Number of Recorded Investment (dollars in thousands) (dollars in thousands) Troubled Debt Restructurings Commerical Real Estate - Construction — $ — $ — — $ — Commercial Real Estate - Other — — — — — Consumer - Real Estate — — — — — Residential 1 110 110 — — Total 1 110 110 — — Troubled Debt Restructurings that Troubled Debt Restructurings For the six months ended June 30, Number of Loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Number of Loans Recorded Investment (dollars in thousands) (dollars in Commerical Real Estate - Construction — $ — $ — — $ — Commercial Real Estate - Other — — — — — Consumer - Real Estate — — — — — Residential — — — — — Total — — — — — |
Schedule of loans individually evaluated for impairment | The following table presents loans individually evaluated for impairment by class of loans as of June 30, 2015 and December 31, 2014: For the Three For the Six Impaired Loans June 30, June 30, As of June 30, 2015 2015 2015 Unpaid Principal Recorded Related Average Interest Average Interest Balance Investment Allowance Recorded Income Recorded Income Investment Recognized Investment Recognized (dollars in thousands) (dollars in thousands) (dollars in thousands) With no related allowance recorded: Commercial $ — $ — $ — $ — $ — $ — $ — Commercial Real Estate - Construction — — — — — — — Commercial Real Estate - Other 793 791 — 801 13 824 25 Consumer - Real Estate 22 20 — 20 — 20 — Consumer - Other — — — — — — — Residential 419 332 — 339 2 341 5 With a specific allowance recorded: Commercial — — — — — — — Commercial Real Estate - Construction — — — — — — — Commercial Real Estate - Other 945 945 11 949 12 954 24 Consumer - Real Estate 18 17 17 18 — 18 — Consumer - Other 6 6 2 6 — 6 — Residential 227 221 39 223 — 222 — Totals: Commercial $ — $ — $ — $ — $ — $ — $ — Commercial Real Estate - Construction $ — $ — $ — $ — $ — $ — $ — Commercial Real Estate - Other $ 1,738 $ 1,736 $ 11 $ 1,750 $ 25 $ 1,778 $ 49 Consumer - Real Estate $ 40 $ 37 $ 17 $ 38 $ — $ 38 $ — Consumer - Other $ 6 $ 6 $ 2 $ 6 $ — $ 6 $ — Residential $ 646 $ 553 $ 39 $ 562 $ 2 $ 563 $ 5 For the Three For the Six June 30, June 30, Impaired Loans 2014 2014 As of December 31, 2014 Average Interest Average Interest Balance Investment Allowance Recorded Income Recorded Income Investment Recognized Investment Recognized (dollars in thousands) (dollars in thousands) (dollars in thousands) With no related allowance recorded: Commercial $ — $ — $ — $ — $ — $ — $ — Commercial Real Estate - Construction — — — — — — — Commercial Real Estate - Other 1,431 1,430 — 1,460 21 1,527 42 Consumer - Real Estate 26 24 — 16 — 16 — Consumer - Other — — — — — — — Residential 781 618 — 553 3 554 4 With a specific allowance recorded: Commercial — — — — — — — Commercial Real Estate - Construction — — — 173 — 173 — Commercial Real Estate - Other 386 386 10 1,837 4 1,838 9 Consumer - Real Estate — — — — — — — Consumer - Other — — — — — — — Residential — — — 90 1 90 1 Totals: Commercial 0 0 0 — — 0 — Commercial Real Estate - Construction $ — $ — $ — $ 173 $ — $ 173 $ — Commercial Real Estate - Other $ 1,817 $ 1,816 $ 10 $ 3,297 $ 25 $ 3,365 $ 51 Consumer - Real Estate $ 26 $ 24 $ — $ 16 $ — $ 16 $ — Consumer - Other $ — $ — $ — $ — $ — $ — $ — Residential $ 781 $ 618 $ — $ 643 $ 4 $ 644 $ 5 |
Schedule of activity for allowance for loan losses | Activity in the allowance for loan and lease losses was as follows for the three and six months ended June 30, 2015 and June 30, 2014, respectively: Allowance for Credit Losses and Recorded Investment in Financing Receivables For the Three Months Ended June 30, 2015 Commercial Commercial Consumer Construction Real Estate Commercial Real Estate Consumer Residential Unallocated Total (dollars in thousands) Allowance for credit losses: Beginning Balance $ 15 $ 370 $ 105 $ 48 $ 21 $ 813 $ 72 $ 1,444 Charge-offs — — — (4 ) (7 ) — — (11 ) Recoveries — 61 2 17 — 20 — 100 Provision (15 ) 61 33 (19 ) 4 (113 ) 4 (45 ) Ending Balance $ — $ 492 $ 140 $ 42 $ 18 $ 721 $ 75 $ 1,488 For the Six Months Ended June 30, 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 ) — (4 ) (12 ) (36 ) — (55 ) Recoveries 12 65 4 21 — 34 — 136 Provision (20 ) 123 42 (8 ) 12 (146 ) (25 ) (22 ) Ending Balance $ — $ 492 $ 140 $ 42 $ 18 $ 721 $ 75 $ 1,488 Loan Balances Evaluated for Impairment As of June 30, 2015 Commercial Commercial Consumer Construction Real Estate Commercial Real Estate Consumer Residential Unallocated Total (dollars in thousands) Allowance for loan losses as of June 30, 2015 Ending balance: individually evaluated for impairment $ — $ 11 $ — $ 17 $ 2 $ 39 $ — $ 69 Ending balance: loans collectively evaluated for impairment $ — $ 481 $ 140 $ 25 $ 16 $ 682 $ 75 $ 1,419 Loans as of June 30, 2015 Loans: Ending Balance $ 198 $ 63,820 $ 17,685 $ 9,183 $ 1,531 $ 74,937 $ — $ 167,354 Ending balance: individually evaluated for impairment $ — $ 1,736 $ — $ 37 $ 6 $ 553 $ — $ 2,332 Ending balance: loans collectively evaluated for impairment $ 198 $ 47,403 $ 14,076 $ 7,491 $ 1,361 $ 68,589 $ — $ 139,118 Acquired loans with deteriorated credit quality not subject to loan loss reserve $ — $ 2,015 $ 773 $ 4 $ — $ 416 $ — $ 3,208 Other acquired loans not subject to loan loss reserve $ — $ 12,666 $ 2,836 $ 1,651 $ 164 $ 5,379 $ — $ 22,696 Allowance for Credit Losses and Recorded Investment in Financing Receivables For the Three Months Ended June 30, 2014 Commercial Commercial Consumer Construction Real Estate Commercial Real Estate Consumer Residential Unallocated Total (dollars in thousands) Allowance for credit losses: Beginning Balance $ 48 $ 392 $ 61 $ 49 $ 16 $ 792 $ 100 $ 1,458 Charge-offs — — — — (1 ) (10 ) — (11 ) Recoveries — 12 — 14 — 14 — 40 Provision — 22 11 (25 ) 1 (13 ) 4 — Ending Balance $ 48 $ 426 $ 72 $ 38 $ 16 $ 783 $ 104 $ 1,487 For the Six Months Ended June 30, 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 ) — (13 ) (6 ) (45 ) — (80 ) Recoveries — 32 — 23 — 24 — 79 Provision — (34 ) 9 (34 ) 1 20 54 16 Ending Balance $ 48 $ 426 $ 72 $ 38 $ 16 $ 783 $ 104 $ 1,487 Loan Balances Evaluated for Impairment As of June 30, 2014 Commercial Commercial Consumer Construction Real Estate Commercial Real Estate Consumer Residential Unallocated Total (dollars in thousands) Allowance for loan losses as of June 30, 2014 Ending balance: individually evaluated for impairment $ 48 $ 136 $ — $ — $ — $ 25 $ — $ 209 Ending balance: loans collectively evaluated for impairment $ — $ 290 $ 72 $ 38 $ 16 $ 758 $ 104 $ 1,278 Loans as of June 30, 2014 Loans: Ending Balance $ 173 $ 50,197 $ 12,477 $ 8,282 $ 1,193 $ 64,498 $ — $ 136,820 Ending balance: individually evaluated for impairment $ 173 $ 3,284 $ — $ 16 $ — $ 633 $ — $ 4,106 Ending balance: loans collectively evaluated for impairment $ — $ 46,913 $ 12,477 $ 8,266 $ 1,193 $ 63,865 $ — $ 132,714 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of option activity | A summary of option activity under the Plans during the six months ended June 30, 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 (8,650 ) $ 9.52 Oustanding at June 30, 2015 127,380 $ 9.54 0.9 $ 0 Options Exercisable at June 30, 2015 127,380 $ 9.54 0.9 $ 0 |
COMMITMENTS TO EXTEND CREDIT (T
COMMITMENTS TO EXTEND CREDIT (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Off Balance Sheet Risk Commitments And Contingencies Tables | |
Schedule of Outstanding Commitments to Originate Loans | At June 30, 2015, the Company had outstanding commitments to originate loans of $28.4 million. These commitments included the following: As of June 30, 2015 (in thousands) Commitments to grant loans $ 11,955 Unfunded commitments under lines of credit 16,264 Commercial and standby letters of credit 134 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 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 June 30, 2015 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Balance at (dollars in thousands) Assets Investment securities- available-for-sale: US Treasury securities and obligations of U.S. government corporations and agencies $ 1,282 $ 32,035 $ — $ 33,317 Municipal obligations — 26,347 1,535 27,882 Corporate bonds & other obligations — 1,519 — 1,519 Mortgage-backed securities — 62,860 — 62,860 Equity securities 6 — — 6 Total investment securities - available-for-sale $ 1,288 $ 122,761 $ 1,535 $ 125,584 Assets and Liabilities Measured at Fair Value on a Recurring Basis at December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs Fair Value (dollars in thousands) Assets Investment securities - available-for-sale: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ — $ 31,222 $ — $ 31,222 Municipal obligations — 20,842 2,292 23,134 Corporate bonds & other obligations — 1,561 — 1,561 Mortgage-backed securities — 64,046 — 64,046 Equity securities 5 — — 5 Total investment securities - available-for-sale $ 5 $ 117,671 $ 2,292 $ 119,968 |
Schedule of assets measured at fair value on a nonrecurring basis | 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 June 30, 2015 Balance at Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs (dollars in thousands) Originated Assets: Impaired loans accounted for under FASB ASC 310-10 $ 1,736 $ — $ — $ 1,736 Other real estate owned -residential mortgages 527 — — 527 Other Real estate owned - commercial 1,568 — — 1,568 Other repossessed assets 761 — — 761 Total assets at fair value on a non-recurring basis $ 4,592 Acquired Assets: Impaired loans accounted for under FASB ASC 310-10 $ 501 $ — $ — $ 501 Other real estate owned -residential mortgages — — — — Other real estate owned - commercial — — — — Other repossessed assets — — — — Total assets at fair value on a non-recurring basis $ 501 Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2014 Balance at Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (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: June 30, 2015 Carrying Level 1 Level 2 Level 3 Total (in thousands) Financial assets: Cash and cash equivalents $ 5,391 $ 5,391 $ — $ — $ 5,391 Deposits held at other financial institutions 8,428 — 7,218 1,240 8,458 Securities available for sale 125,584 1,282 122,767 1,535 125,584 Securities held to maturity 745 — 746 — 746 Loans held for sale 121 — — 124 124 Loans receivable - net 165,612 — — 164,658 164,658 Federal Home Loan Bank stock 1,636 — 1,636 — 1,636 Accrued interest receivable 1,041 — — 1,041 1,041 Financial liabilities: Customer deposits 269,979 — 270,541 — 270,541 Federal Home Loan Bank advances 23,217 — 23,053 — 23,053 Accrued interest payable 101 — — 101 101 December 31, 2014 Carrying Level 1 Level 2 Level 3 Total (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) $ / shares in Units, $ in Thousands | Aug. 08, 2014$ / sharesshares | Jun. 30, 2015USD ($)Number | Dec. 31, 2014USD ($) |
Total assets | $ 325,976 | $ 325,867 | |
Bank of Alpena [Member] | |||
Number of branch offices | Number | 1 | ||
Total assets | $ 102,900 | ||
Shares converted in merger, share ratio | $ / shares | $ 1.549 | ||
Shares issued for Alpena Banking corporation shares | shares | 842,965 |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) - Aug. 08, 2014 - Bank of Alpena [Member] - USD ($) $ / shares in Units, $ in Thousands | Total |
Shares issued for Alpena Banking corporation shares | 842,965 |
Price per share | $ 5.59 |
Total purchase price | $ 4,712 |
BUSINESS COMBINATIONS (Detail25
BUSINESS COMBINATIONS (Details 1) - Aug. 08, 2014 - Bank of Alpena [Member] - USD ($) $ in Thousands | Total |
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 (Detail26
BUSINESS COMBINATIONS (Details 2) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Pro-forma results | ||||
Net interest income | $ 2,347 | $ 1,766 | $ 4,663 | $ 3,562 |
Bank of Alpena [Member] | ||||
Pro-forma results | ||||
Net interest income | 2,347 | 2,953 | 4,663 | 5,848 |
Net interest income | 487 | 632 | 981 | 1,232 |
Non-interest expense | 2,499 | 3,069 | 4,931 | 6,089 |
Net income | $ 380 | $ 476 | $ 735 | $ 897 |
Net income per basic and diluted share | $ 0.10 | $ 0.17 | $ 0.20 | $ 0.31 |
Weighted average shares outstanding | 3,727 | 2,884 | 3,727 | 2,884 |
BUSINESS COMBINATIONS (Detail27
BUSINESS COMBINATIONS (Details 3) - Bank of Alpena [Member] $ in Thousands | Aug. 08, 2014USD ($) |
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] | |
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] | |
Non-impaired acquired loans | 750 |
Acquired loans | 750 |
Consumer Other [Member] | |
Impaired acquired loans | 30 |
Non-impaired acquired loans | 2,318 |
Acquired loans | $ 2,348 |
BUSINESS COMBINATIONS (Detail28
BUSINESS COMBINATIONS (Details 4) - Bank of Alpena [Member] $ in Thousands | Aug. 08, 2014USD ($) |
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) $ in Thousands | Jun. 30, 2015USD ($)Number | Dec. 31, 2014USD ($)Number |
Securities Details Narrative | ||
Securities pledged as collateral | $ 29,900 | $ 35,000 |
Number of securities with an unrealized loss | Number | 52 | 72 |
Fair value of securities with an unrealized loss | $ 297 | $ 303 |
Number of bond sold | Number | 2 | |
Sale securitis with carrying value | $ 1,800 | |
Securities sold realized gain | $ 1 |
SECURITIES (Details)
SECURITIES (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Available for Sale | ||
Available for Sale, Amortized Cost | $ 125,012 | $ 119,315 |
Available for Sale, Gross Unrealized Gains | 869 | 956 |
Available for Sale, Gross Unrealized (Losses) | (297) | (303) |
Available for Sale, Market Value | 125,584 | 119,968 |
Held to Maturity | ||
Held to Maturity, Amortized Cost | 745 | 790 |
Held to Maturity, Market Value | 746 | |
US Treasury Securities and Obligations of US Government Corporations and Agencies [Member] | ||
Available for Sale | ||
Available for Sale, Amortized Cost | 33,210 | 31,221 |
Available for Sale, Gross Unrealized Gains | 157 | 58 |
Available for Sale, Gross Unrealized (Losses) | (50) | (57) |
Available for Sale, Market Value | 33,317 | 31,222 |
Municipal Notes [Member] | ||
Available for Sale | ||
Available for Sale, Amortized Cost | 27,660 | 22,894 |
Available for Sale, Gross Unrealized Gains | 330 | 369 |
Available for Sale, Gross Unrealized (Losses) | (108) | (129) |
Available for Sale, Market Value | 27,882 | 23,134 |
Held to Maturity | ||
Held to Maturity, Amortized Cost | 745 | 790 |
Held to Maturity Securities, Gross Unrealized Gains | 1 | 118 |
Held to Maturity, Market Value | 746 | 908 |
Corporate Securities [Member] | ||
Available for Sale | ||
Available for Sale, Amortized Cost | 1,514 | 1,549 |
Available for Sale, Gross Unrealized Gains | $ 5 | $ 12 |
Available for Sale, Gross Unrealized (Losses) | ||
Available for Sale, Market Value | $ 1,519 | $ 1,561 |
Mortgage Backed Securities [Member] | ||
Available for Sale | ||
Available for Sale, Amortized Cost | 62,625 | 63,648 |
Available for Sale, Gross Unrealized Gains | 374 | 515 |
Available for Sale, Gross Unrealized (Losses) | (139) | (117) |
Available for Sale, Market Value | 62,860 | 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) $ in Thousands | Jun. 30, 2015USD ($) |
Amortized cost: | |
Total | $ 125,012 |
Fair Value: | |
Total | 125,584 |
Amortized Cost: | |
Due in one year or less | 45 |
Due after one year through five years | 210 |
Due after five years through ten years | 335 |
Due after ten years | 155 |
Total | 745 |
Fair Value: | |
Due in one year or less | 45 |
Due after one year through five years | 210 |
Due after five years through ten years | 336 |
Due after ten years | 155 |
Total | 746 |
Equity Securities [Member] | |
Amortized cost: | |
Total | 3 |
Fair Value: | |
Total | 6 |
Mortgage Backed Securities [Member] | |
Amortized cost: | |
Total | 62,625 |
Fair Value: | |
Total | 62,860 |
Available-for-sale Securities | |
Amortized cost: | |
Due in one year or less | 2,866 |
Due after one year through five years | 41,333 |
Due after five years through ten years | 16,953 |
Due after ten years | 1,232 |
Total | 62,384 |
Fair Value: | |
Due in one year or less | 2,882 |
Due after one year through five years | 41,520 |
Due after five years through ten years | 16,995 |
Due after ten years | 1,321 |
Total | $ 62,718 |
SECURITIES (Details 2)
SECURITIES (Details 2) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Securities available for sale | ||
Fair Value Less Than 12 Months | $ 29,952 | $ 33,101 |
Unrealized Loss Less Than 12 Months | (154) | (113) |
Fair Value Less Than 12 Months or Longer | 7,292 | 9,676 |
Unrealized Loss Less Than 12 Months or Longer | (143) | (190) |
US Treasury Securities and Obligations of US Government Corporations and Agencies [Member] | ||
Securities available for sale | ||
Fair Value Less Than 12 Months | 6,344 | 13,672 |
Unrealized Loss Less Than 12 Months | (22) | (28) |
Fair Value Less Than 12 Months or Longer | 972 | 971 |
Unrealized Loss Less Than 12 Months or Longer | (28) | (29) |
Municipal Notes [Member] | ||
Securities available for sale | ||
Fair Value Less Than 12 Months | 10,227 | 9,506 |
Unrealized Loss Less Than 12 Months | (80) | (54) |
Fair Value Less Than 12 Months or Longer | 2,196 | 4,039 |
Unrealized Loss Less Than 12 Months or Longer | (28) | (75) |
Mortgage Backed Securities [Member] | ||
Securities available for sale | ||
Fair Value Less Than 12 Months | 13,381 | 9,923 |
Unrealized Loss Less Than 12 Months | (52) | (31) |
Fair Value Less Than 12 Months or Longer | 4,124 | 4,666 |
Unrealized Loss Less Than 12 Months or Longer | $ (87) | $ (86) |
LOANS (Details)
LOANS (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
Gross loans | $ 167,354 | $ 165,339 | ||||
Net deferred loan fees | (254) | (263) | ||||
Allowance for loan losses | (1,488) | $ 1,444 | (1,429) | $ 1,487 | $ 1,458 | $ 1,472 |
Total loans, net | 165,612 | 163,647 | ||||
One-to-Four Family Residential Real Estate [Member] | ||||||
Gross loans | 74,937 | 71,828 | ||||
Allowance for loan losses | 721 | 813 | 869 | 783 | 792 | 784 |
Commercial Real Estate Construction [Member] | ||||||
Gross loans | 198 | 1,443 | ||||
Allowance for loan losses | 15 | 8 | 48 | 48 | 48 | |
Commercial Real Estate [Member] | ||||||
Gross loans | 63,820 | 62,163 | ||||
Allowance for loan losses | 492 | 370 | 307 | 426 | 392 | 444 |
Commercial Non Real Estate [Member] | ||||||
Gross loans | 17,685 | 19,000 | ||||
Commercial Loans [Member] | ||||||
Gross loans | 81,703 | 82,606 | ||||
Allowance for loan losses | 140 | 105 | 94 | 72 | 61 | 63 |
Consumer Real Estate [Member] | ||||||
Gross loans | 9,183 | 9,502 | ||||
Allowance for loan losses | 42 | 48 | 33 | 38 | 49 | 62 |
Consumer Other [Member] | ||||||
Gross loans | 1,531 | 1,403 | ||||
Consumer Loans Secured by Real Estate [Member] | ||||||
Gross loans | 10,714 | 10,905 | ||||
Allowance for loan losses | $ 18 | $ 21 | $ 19 | $ 16 | $ 16 | $ 21 |
LOANS (Details 1)
LOANS (Details 1) - Acquired Loans [Member] $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Beginning of year | $ (1,440) |
Accretion of discount for credit spread | 34 |
Loans charged off | 81 |
End of year | (1,325) |
Impaired Loans Non-Accretable [Member] | |
Beginning of year | (1,232) |
Transfer from non-accreatable to accreatable | 25 |
Loans charged off | 81 |
End of year | (1,126) |
Non-Impaired Loans Accretable [Member] | |
Beginning of year | (208) |
Accretion of discount for credit spread | 34 |
Transfer from non-accreatable to accreatable | (25) |
End of year | $ (199) |
LOANS (Details 2)
LOANS (Details 2) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Gross loans | $ 167,354 | $ 165,339 |
Commercial Real Estate Construction [Member] | ||
Gross loans | 198 | 1,443 |
Commercial Non Real Estate [Member] | ||
Gross loans | 17,685 | 19,000 |
Consumer Real Estate [Member] | ||
Gross loans | 9,183 | 9,502 |
Consumer Other [Member] | ||
Gross loans | 1,531 | 1,403 |
One-to-Four Family Residential Real Estate [Member] | ||
Gross loans | 74,937 | 71,828 |
Orginated Loans and Leases [Member] | ||
Total past due | 3,109 | 2,945 |
Current | 138,341 | 133,252 |
Gross loans | 141,450 | 136,197 |
Recorded investment > 90 days and accruing | 93 | 90 |
Orginated Loans and Leases [Member] | 30 - 59 Days Past Due [Member] | ||
Total past due | 2,696 | 1,604 |
Orginated Loans and Leases [Member] | 60 - 89 Days Past Due [Member] | ||
Total past due | 313 | 945 |
Orginated Loans and Leases [Member] | Greater than 90 Days Past Due [Member] | ||
Total past due | 100 | 396 |
Orginated Loans and Leases [Member] | Commercial Real Estate Construction [Member] | ||
Current | 198 | 1,443 |
Gross loans | 198 | 1,443 |
Orginated Loans and Leases [Member] | Commercial Real Estate Other [Member] | ||
Total past due | 677 | 205 |
Current | 48,462 | 46,103 |
Gross loans | 49,139 | 46,308 |
Orginated Loans and Leases [Member] | Commercial Real Estate Other [Member] | 30 - 59 Days Past Due [Member] | ||
Total past due | 595 | 10 |
Orginated Loans and Leases [Member] | Commercial Real Estate Other [Member] | 60 - 89 Days Past Due [Member] | ||
Total past due | 82 | 195 |
Orginated Loans and Leases [Member] | Commercial Non Real Estate [Member] | ||
Total past due | 282 | |
Current | 13,794 | 14,544 |
Gross loans | 14,076 | 14,544 |
Orginated Loans and Leases [Member] | Commercial Non Real Estate [Member] | 30 - 59 Days Past Due [Member] | ||
Total past due | 282 | |
Orginated Loans and Leases [Member] | Consumer Real Estate [Member] | ||
Total past due | 43 | 118 |
Current | 7,485 | 7,684 |
Gross loans | 7,528 | 7,802 |
Orginated Loans and Leases [Member] | Consumer Real Estate [Member] | 30 - 59 Days Past Due [Member] | ||
Total past due | 36 | 107 |
Orginated Loans and Leases [Member] | Consumer Real Estate [Member] | 60 - 89 Days Past Due [Member] | ||
Total past due | 4 | |
Orginated Loans and Leases [Member] | Consumer Real Estate [Member] | Greater than 90 Days Past Due [Member] | ||
Total past due | 7 | 7 |
Orginated Loans and Leases [Member] | Consumer Other [Member] | ||
Total past due | 6 | 6 |
Current | 1,361 | 1,152 |
Gross loans | 1,367 | 1,158 |
Recorded investment > 90 days and accruing | 6 | 3 |
Orginated Loans and Leases [Member] | Consumer Other [Member] | 30 - 59 Days Past Due [Member] | ||
Total past due | 3 | |
Orginated Loans and Leases [Member] | Consumer Other [Member] | Greater than 90 Days Past Due [Member] | ||
Total past due | 6 | 3 |
Orginated Loans and Leases [Member] | One-to-Four Family Residential Real Estate [Member] | ||
Total past due | 2,101 | 2,616 |
Current | 67,041 | 62,326 |
Gross loans | 69,142 | 64,942 |
Recorded investment > 90 days and accruing | 87 | 87 |
Orginated Loans and Leases [Member] | One-to-Four Family Residential Real Estate [Member] | 30 - 59 Days Past Due [Member] | ||
Total past due | 1,783 | 1,484 |
Orginated Loans and Leases [Member] | One-to-Four Family Residential Real Estate [Member] | 60 - 89 Days Past Due [Member] | ||
Total past due | 231 | 746 |
Orginated Loans and Leases [Member] | One-to-Four Family Residential Real Estate [Member] | Greater than 90 Days Past Due [Member] | ||
Total past due | 87 | 386 |
Acquired Loans [Member] | ||
Total past due | 1,713 | 1,277 |
Current | 24,191 | 27,865 |
Gross loans | 25,904 | 29,142 |
Recorded investment > 90 days and accruing | 93 | 225 |
Acquired Loans [Member] | 30 - 59 Days Past Due [Member] | ||
Total past due | 209 | 395 |
Acquired Loans [Member] | 60 - 89 Days Past Due [Member] | ||
Total past due | 845 | 224 |
Acquired Loans [Member] | Greater than 90 Days Past Due [Member] | ||
Total past due | 659 | 658 |
Acquired Loans [Member] | Commercial Real Estate Other [Member] | ||
Total past due | 620 | 346 |
Current | 14,061 | 15,604 |
Gross loans | 14,681 | 15,950 |
Recorded investment > 90 days and accruing | 51 | |
Acquired Loans [Member] | Commercial Real Estate Other [Member] | 30 - 59 Days Past Due [Member] | ||
Total past due | 209 | 125 |
Acquired Loans [Member] | Commercial Real Estate Other [Member] | 60 - 89 Days Past Due [Member] | ||
Total past due | 224 | 128 |
Acquired Loans [Member] | Commercial Real Estate Other [Member] | Greater than 90 Days Past Due [Member] | ||
Total past due | 187 | 93 |
Acquired Loans [Member] | Commercial Non Real Estate [Member] | ||
Total past due | 549 | 144 |
Current | 3,060 | 4,217 |
Gross loans | 3,609 | 4,361 |
Acquired Loans [Member] | Commercial Non Real Estate [Member] | 60 - 89 Days Past Due [Member] | ||
Total past due | 398 | 40 |
Acquired Loans [Member] | Commercial Non Real Estate [Member] | Greater than 90 Days Past Due [Member] | ||
Total past due | 151 | 104 |
Acquired Loans [Member] | Consumer Real Estate [Member] | ||
Total past due | 123 | |
Current | 1,655 | 1,609 |
Gross loans | 1,655 | 1,732 |
Acquired Loans [Member] | Consumer Real Estate [Member] | 30 - 59 Days Past Due [Member] | ||
Total past due | 123 | |
Acquired Loans [Member] | Consumer Other [Member] | ||
Current | 164 | 213 |
Gross loans | 164 | 213 |
Acquired Loans [Member] | One-to-Four Family Residential Real Estate [Member] | ||
Total past due | 544 | 664 |
Current | 5,251 | 6,222 |
Gross loans | 5,795 | 6,886 |
Recorded investment > 90 days and accruing | 42 | 225 |
Acquired Loans [Member] | One-to-Four Family Residential Real Estate [Member] | 30 - 59 Days Past Due [Member] | ||
Total past due | 147 | |
Acquired Loans [Member] | One-to-Four Family Residential Real Estate [Member] | 60 - 89 Days Past Due [Member] | ||
Total past due | 223 | 56 |
Acquired Loans [Member] | One-to-Four Family Residential Real Estate [Member] | Greater than 90 Days Past Due [Member] | ||
Total past due | $ 321 | $ 461 |
LOANS (Details 3)
LOANS (Details 3) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Gross loans | $ 167,354 | $ 165,339 |
Commercial Real Estate Construction [Member] | ||
Gross loans | 198 | 1,443 |
Commercial Non Real Estate [Member] | ||
Gross loans | 17,685 | 19,000 |
Orginated Loans and Leases [Member] | ||
Gross loans | 141,450 | 136,197 |
Orginated Loans and Leases [Member] | Commercial Real Estate Construction [Member] | ||
Gross loans | 198 | 1,443 |
Orginated Loans and Leases [Member] | Commercial Real Estate Construction [Member] | Risk Grade 4 (Acceptable) [Member] | ||
Gross loans | 178 | 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 | 20 | |
Orginated Loans and Leases [Member] | Commercial Real Estate Other [Member] | ||
Gross loans | 49,139 | 46,308 |
Orginated Loans and Leases [Member] | Commercial Real Estate Other [Member] | Risk Grade 1 (Excellent) and Grade 2 (Good) [Member] | ||
Gross loans | 700 | |
Orginated Loans and Leases [Member] | Commercial Real Estate Other [Member] | Risk Grade 3 (Satisfactory) [Member] | ||
Gross loans | 15,118 | 13,565 |
Orginated Loans and Leases [Member] | Commercial Real Estate Other [Member] | Risk Grade 4 (Acceptable) [Member] | ||
Gross loans | 22,449 | 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 | 3,328 | 3,553 |
Orginated Loans and Leases [Member] | Commercial Real Estate Other [Member] | Risk Grade 5 (Other Assets Especially Mentioned) [Member] | ||
Gross loans | 2,811 | 6,040 |
Orginated Loans and Leases [Member] | Commercial Real Estate Other [Member] | Risk Grade 6 (Substandard) [Member] | ||
Gross loans | 4,732 | 1,393 |
Orginated Loans and Leases [Member] | Commercial Non Real Estate [Member] | ||
Gross loans | 14,076 | 14,544 |
Orginated Loans and Leases [Member] | Commercial Non Real Estate [Member] | Risk Grade 1 (Excellent) and Grade 2 (Good) [Member] | ||
Gross loans | 27 | 31 |
Orginated Loans and Leases [Member] | Commercial Non Real Estate [Member] | Risk Grade 3 (Satisfactory) [Member] | ||
Gross loans | 5,753 | 6,088 |
Orginated Loans and Leases [Member] | Commercial Non Real Estate [Member] | Risk Grade 4 (Acceptable) [Member] | ||
Gross loans | 5,837 | 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 | 1,670 | 252 |
Orginated Loans and Leases [Member] | Commercial Non Real Estate [Member] | Risk Grade 5 (Other Assets Especially Mentioned) [Member] | ||
Gross loans | 135 | 635 |
Orginated Loans and Leases [Member] | Commercial Non Real Estate [Member] | Risk Grade 6 (Substandard) [Member] | ||
Gross loans | 654 | |
Acquired Loans [Member] | ||
Gross loans | 25,904 | 29,142 |
Acquired Loans [Member] | Commercial Real Estate Other [Member] | ||
Gross loans | 14,681 | 15,950 |
Acquired Loans [Member] | Commercial Real Estate Other [Member] | Risk Grade 1 (Excellent) and Grade 2 (Good) [Member] | ||
Gross loans | 251 | 280 |
Acquired Loans [Member] | Commercial Real Estate Other [Member] | Risk Grade 3 (Satisfactory) [Member] | ||
Gross loans | 2,244 | 2,696 |
Acquired Loans [Member] | Commercial Real Estate Other [Member] | Risk Grade 4 (Acceptable) [Member] | ||
Gross loans | 10,202 | 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 | 472 | 337 |
Acquired Loans [Member] | Commercial Real Estate Other [Member] | Risk Grade 5 (Other Assets Especially Mentioned) [Member] | ||
Gross loans | 736 | 1,176 |
Acquired Loans [Member] | Commercial Real Estate Other [Member] | Risk Grade 6 (Substandard) [Member] | ||
Gross loans | 777 | 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 | 3,609 | 4,361 |
Acquired Loans [Member] | Commercial Non Real Estate [Member] | Risk Grade 1 (Excellent) and Grade 2 (Good) [Member] | ||
Gross loans | 1,046 | 1,188 |
Acquired Loans [Member] | Commercial Non Real Estate [Member] | Risk Grade 3 (Satisfactory) [Member] | ||
Gross loans | 860 | 876 |
Acquired Loans [Member] | Commercial Non Real Estate [Member] | Risk Grade 4 (Acceptable) [Member] | ||
Gross loans | 823 | 970 |
Acquired Loans [Member] | Commercial Non Real Estate [Member] | Risk Grade 4 (Acceptable) and Risk Grade 5 (Other Assets Especially Mentioned) [Member] | ||
Gross loans | 14 | 21 |
Acquired Loans [Member] | Commercial Non Real Estate [Member] | Risk Grade 5 (Other Assets Especially Mentioned) [Member] | ||
Gross loans | 415 | 1,150 |
Acquired Loans [Member] | Commercial Non Real Estate [Member] | Risk Grade 6 (Substandard) [Member] | ||
Gross loans | 451 | 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 (Details 4)
LOANS (Details 4) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Gross loans | $ 167,354 | $ 165,339 |
One-to-Four Family Residential Real Estate [Member] | ||
Gross loans | 74,937 | 71,828 |
Consumer Real Estate [Member] | ||
Gross loans | 9,183 | 9,502 |
Commercial Real Estate Construction [Member] | ||
Gross loans | 198 | 1,443 |
Consumer Other [Member] | ||
Gross loans | 1,531 | 1,403 |
Orginated Loans and Leases [Member] | ||
Gross loans | 141,450 | 136,197 |
Orginated Loans and Leases [Member] | One-to-Four Family Residential Real Estate [Member] | ||
Gross loans | 69,142 | 64,942 |
Orginated Loans and Leases [Member] | One-to-Four Family Residential Real Estate [Member] | Pass [Member] | ||
Gross loans | 68,661 | 64,397 |
Orginated Loans and Leases [Member] | One-to-Four Family Residential Real Estate [Member] | Risk Grade 6 (Substandard) [Member] | ||
Gross loans | 481 | 545 |
Orginated Loans and Leases [Member] | Consumer Real Estate [Member] | ||
Gross loans | 7,528 | 7,802 |
Orginated Loans and Leases [Member] | Consumer Real Estate [Member] | Pass [Member] | ||
Gross loans | 7,485 | 7,778 |
Orginated Loans and Leases [Member] | Consumer Real Estate [Member] | Risk Grade 6 (Substandard) [Member] | ||
Gross loans | 43 | 24 |
Orginated Loans and Leases [Member] | Commercial Real Estate Construction [Member] | ||
Gross loans | 198 | 1,443 |
Orginated Loans and Leases [Member] | Consumer Other [Member] | ||
Gross loans | 1,367 | 1,158 |
Orginated Loans and Leases [Member] | Consumer Other [Member] | Pass [Member] | ||
Gross loans | 1,367 | 1,155 |
Orginated Loans and Leases [Member] | Consumer Other [Member] | Risk Grade 6 (Substandard) [Member] | ||
Gross loans | 3 | |
Acquired Loans [Member] | ||
Gross loans | 25,904 | 29,142 |
Acquired Loans [Member] | One-to-Four Family Residential Real Estate [Member] | ||
Gross loans | 5,795 | 6,886 |
Acquired Loans [Member] | One-to-Four Family Residential Real Estate [Member] | Pass [Member] | ||
Gross loans | 5,466 | 6,335 |
Acquired Loans [Member] | One-to-Four Family Residential Real Estate [Member] | Risk Grade 6 (Substandard) [Member] | ||
Gross loans | 329 | 551 |
Acquired Loans [Member] | Consumer Real Estate [Member] | ||
Gross loans | 1,655 | 1,732 |
Acquired Loans [Member] | Consumer Real Estate [Member] | Risk Grade 6 (Substandard) [Member] | ||
Gross loans | 9 | 1 |
Acquired Loans [Member] | Commercial Real Estate Construction [Member] | Pass [Member] | ||
Gross loans | 1,646 | 1,731 |
Acquired Loans [Member] | Consumer Other [Member] | ||
Gross loans | 164 | 213 |
Acquired Loans [Member] | Consumer Other [Member] | Pass [Member] | ||
Gross loans | 137 | $ 213 |
Acquired Loans [Member] | Consumer Other [Member] | Risk Grade 6 (Substandard) [Member] | ||
Gross loans | $ 27 |
LOANS (Details 5)
LOANS (Details 5) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Recorded investment in non-accrual loans | $ 1,224 | $ 1,338 |
Commercial Real Estate Other [Member] | ||
Recorded investment in non-accrual loans | 437 | 486 |
Commercial Loans [Member] | ||
Recorded investment in non-accrual loans | 72 | 77 |
Consumer Real Estate [Member] | ||
Recorded investment in non-accrual loans | 42 | 25 |
One-to-Four Family Residential Real Estate [Member] | ||
Recorded investment in non-accrual loans | $ 673 | $ 750 |
LOANS (Details 6)
LOANS (Details 6) - 6 months ended Jun. 30, 2015 $ in Thousands | USD ($)Number |
Troubled Debt Restructuring | |
Number of contracts | Number | 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 | Number | 1 |
Pre-modification outstanding recorded investment | $ 110 |
Post-modification outstanding recorded investment | $ 110 |
LOANS (Details 7)
LOANS (Details 7) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Commercial Loans [Member] | |||||
Total | |||||
Unpaid Principal | $ 0 | ||||
Recorded Investment | 0 | ||||
Average Recorded Investment | $ 0 | ||||
Commercial Real Estate Construction [Member] | |||||
With an allowance recorded: | |||||
Average Recorded Investment | $ 173 | 173 | |||
Total | |||||
Average Recorded Investment | 173 | 173 | |||
Commercial Real Estate Other [Member] | |||||
With no related allowance recorded: | |||||
Unpaid Principal | $ 793 | $ 793 | 1,431 | ||
Recorded Investment | 791 | 791 | 1,430 | ||
Average Recorded Investment | 801 | 1,460 | 824 | 1,527 | |
Interest income recognized | 13 | 21 | 25 | 42 | |
With an allowance recorded: | |||||
Unpaid Principal | 945 | 945 | 386 | ||
Recorded Investment | 945 | 945 | 386 | ||
Related allowance | 11 | 11 | 10 | ||
Average Recorded Investment | 949 | 1,837 | 954 | 1,838 | |
Interest income recognized | 12 | 4 | 24 | 9 | |
Total | |||||
Unpaid Principal | 1,738 | 1,738 | 1,817 | ||
Recorded Investment | 1,736 | 1,736 | 1,816 | ||
Average Recorded Investment | 1,750 | 3,297 | 1,778 | 3,365 | |
Interest income recognized | 25 | 25 | 49 | 51 | |
Consumer Real Estate [Member] | |||||
With no related allowance recorded: | |||||
Unpaid Principal | 22 | 22 | 26 | ||
Recorded Investment | 20 | 20 | 24 | ||
Average Recorded Investment | 20 | 16 | 20 | 16 | |
With an allowance recorded: | |||||
Unpaid Principal | 18 | 18 | |||
Recorded Investment | 17 | 17 | |||
Related allowance | 17 | 17 | |||
Average Recorded Investment | 18 | 18 | |||
Total | |||||
Unpaid Principal | 40 | 40 | 26 | ||
Recorded Investment | 37 | 37 | 24 | ||
Average Recorded Investment | 38 | 16 | 38 | 16 | |
Consumer Other [Member] | |||||
With an allowance recorded: | |||||
Unpaid Principal | 6 | 6 | |||
Recorded Investment | 6 | 6 | |||
Related allowance | 2 | 2 | |||
Average Recorded Investment | 6 | 6 | |||
Total | |||||
Unpaid Principal | 6 | 6 | |||
Recorded Investment | 6 | 6 | |||
Average Recorded Investment | 6 | 6 | |||
One-to-Four Family Residential Real Estate [Member] | |||||
With no related allowance recorded: | |||||
Unpaid Principal | 419 | 419 | 781 | ||
Recorded Investment | 332 | 332 | 618 | ||
Average Recorded Investment | 339 | 553 | 341 | 554 | |
Interest income recognized | 2 | 3 | 5 | 4 | |
With an allowance recorded: | |||||
Unpaid Principal | 227 | 227 | |||
Recorded Investment | 221 | 221 | |||
Related allowance | 39 | 39 | |||
Average Recorded Investment | 223 | 90 | 222 | 90 | |
Interest income recognized | 1 | 1 | |||
Total | |||||
Unpaid Principal | 646 | 646 | 781 | ||
Recorded Investment | 553 | 553 | $ 618 | ||
Average Recorded Investment | 562 | 643 | 563 | 644 | |
Interest income recognized | $ 2 | $ 4 | $ 5 | $ 5 |
LOANS (Details 8)
LOANS (Details 8) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Allowance for loan losses: | ||||
Beginning Balance | $ 1,444 | $ 1,458 | $ (1,429) | $ 1,472 |
Charge offs | (11) | (11) | (55) | (80) |
Recoveries | 100 | $ 40 | 136 | 79 |
Provision | (45) | (22) | 16 | |
Ending Balance | (1,488) | $ 1,487 | (1,488) | 1,487 |
Individually evaluated for impairment | 69 | 209 | 69 | 209 |
Collectively evaluated for impairment | 1,419 | 1,278 | 1,419 | 1,278 |
Loans receivable (gross): | ||||
Gross loans | 167,354 | 136,820 | 167,354 | 136,820 |
Individually evaluated for impairment | 2,332 | 4,106 | 2,332 | 4,106 |
Collectively evaluated for impairment | 139,118 | 132,714 | 139,118 | 132,714 |
Acquired loans not subject to loan loss reserve | 3,208 | 3,208 | ||
Other acquired loans not subject to loan loss reserve | 22,696 | |||
Commercial Real Estate Construction [Member] | ||||
Allowance for loan losses: | ||||
Beginning Balance | 15 | $ 48 | 8 | $ 48 |
Charge offs | ||||
Recoveries | 12 | |||
Provision | (15) | (20) | ||
Ending Balance | $ 48 | $ 48 | ||
Individually evaluated for impairment | $ 48 | $ 48 | ||
Collectively evaluated for impairment | ||||
Loans receivable (gross): | ||||
Gross loans | 198 | $ 173 | 198 | $ 173 |
Individually evaluated for impairment | $ 173 | $ 173 | ||
Collectively evaluated for impairment | $ 198 | $ 198 | ||
Acquired loans not subject to loan loss reserve | ||||
Commercial Real Estate [Member] | ||||
Allowance for loan losses: | ||||
Beginning Balance | $ 370 | $ 392 | $ 307 | $ 444 |
Charge offs | (3) | (16) | ||
Recoveries | 61 | $ 12 | 65 | 32 |
Provision | 61 | 22 | 123 | (34) |
Ending Balance | 492 | 426 | 492 | 426 |
Individually evaluated for impairment | 11 | 136 | 11 | 136 |
Collectively evaluated for impairment | 481 | 290 | 481 | 290 |
Loans receivable (gross): | ||||
Gross loans | 63,820 | 50,197 | 63,820 | 50,197 |
Individually evaluated for impairment | 1,736 | 3,284 | 1,736 | 3,284 |
Collectively evaluated for impairment | 47,403 | 46,913 | 47,403 | 46,913 |
Acquired loans not subject to loan loss reserve | 2,015 | 2,015 | ||
Other acquired loans not subject to loan loss reserve | 12,666 | |||
Commercial Loans [Member] | ||||
Allowance for loan losses: | ||||
Beginning Balance | 105 | $ 61 | 94 | $ 63 |
Charge offs | ||||
Recoveries | 2 | 4 | ||
Provision | 33 | $ 11 | 42 | $ 9 |
Ending Balance | 140 | $ 72 | 140 | $ 72 |
Individually evaluated for impairment | ||||
Collectively evaluated for impairment | 140 | $ 72 | 140 | $ 72 |
Loans receivable (gross): | ||||
Gross loans | 17,685 | $ 12,477 | 17,685 | $ 12,477 |
Individually evaluated for impairment | ||||
Collectively evaluated for impairment | 14,076 | $ 12,477 | 14,076 | $ 12,477 |
Acquired loans not subject to loan loss reserve | 773 | 773 | ||
Other acquired loans not subject to loan loss reserve | 2,836 | |||
Consumer Real Estate [Member] | ||||
Allowance for loan losses: | ||||
Beginning Balance | 48 | $ 49 | 33 | 62 |
Charge offs | (4) | (4) | (13) | |
Recoveries | 17 | $ 14 | 21 | 23 |
Provision | (19) | (25) | (8) | (34) |
Ending Balance | 42 | $ 38 | 42 | $ 38 |
Individually evaluated for impairment | 17 | 17 | ||
Collectively evaluated for impairment | 25 | $ 38 | 25 | $ 38 |
Loans receivable (gross): | ||||
Gross loans | 9,183 | 8,282 | 9,183 | 8,282 |
Individually evaluated for impairment | 37 | 16 | 37 | 16 |
Collectively evaluated for impairment | 7,491 | 8,266 | 7,491 | 8,266 |
Acquired loans not subject to loan loss reserve | 4 | 4 | ||
Other acquired loans not subject to loan loss reserve | 1,651 | |||
Consumer Loans Secured by Real Estate [Member] | ||||
Allowance for loan losses: | ||||
Beginning Balance | 21 | 16 | 19 | 21 |
Charge offs | (7) | $ (1) | (12) | $ (6) |
Recoveries | ||||
Provision | 4 | $ 1 | 12 | $ 1 |
Ending Balance | 18 | $ 16 | 18 | $ 16 |
Individually evaluated for impairment | 2 | 2 | ||
Collectively evaluated for impairment | 16 | $ 16 | 16 | $ 16 |
Loans receivable (gross): | ||||
Gross loans | 1,531 | $ 1,193 | 1,531 | $ 1,193 |
Individually evaluated for impairment | 6 | 6 | ||
Collectively evaluated for impairment | $ 1,361 | $ 1,193 | $ 1,361 | $ 1,193 |
Acquired loans not subject to loan loss reserve | ||||
Other acquired loans not subject to loan loss reserve | $ 164 | |||
One-to-Four Family Residential Real Estate [Member] | ||||
Allowance for loan losses: | ||||
Beginning Balance | $ 813 | 792 | 869 | 784 |
Charge offs | (10) | (36) | (45) | |
Recoveries | 20 | 14 | 34 | 24 |
Provision | (113) | (13) | (146) | 20 |
Ending Balance | 721 | 783 | 721 | 783 |
Individually evaluated for impairment | 39 | 25 | 39 | 25 |
Collectively evaluated for impairment | 682 | 758 | 682 | 758 |
Loans receivable (gross): | ||||
Gross loans | 74,937 | 64,498 | 74,937 | 64,498 |
Individually evaluated for impairment | 553 | 633 | 553 | 633 |
Collectively evaluated for impairment | 68,589 | 63,865 | 68,589 | 63,865 |
Acquired loans not subject to loan loss reserve | 416 | 416 | ||
Other acquired loans not subject to loan loss reserve | 5,379 | |||
Unallocated Financing Receivables [Member] | ||||
Allowance for loan losses: | ||||
Beginning Balance | 72 | $ 100 | 99 | $ 50 |
Charge offs | ||||
Recoveries | ||||
Provision | 4 | $ 4 | (25) | $ 54 |
Ending Balance | 75 | $ 104 | 75 | $ 104 |
Individually evaluated for impairment | ||||
Collectively evaluated for impairment | $ 75 | $ 104 | $ 75 | $ 104 |
Loans receivable (gross): | ||||
Gross loans | ||||
Individually evaluated for impairment | ||||
Collectively evaluated for impairment | ||||
Acquired loans not subject to loan loss reserve |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details Narrative) - Jun. 30, 2015 - $ / shares | Total |
Closing stock price | $ 6.39 |
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] | |
Shares available for grant | 5,304 |
Restricted Stock [Member] | 2006 Stock-Based Incentive Plan [Member] | |
Number of awards authorized | 69,354 |
STOCK-BASED COMPENSATION (Det43
STOCK-BASED COMPENSATION (Details) - 6 months ended Jun. 30, 2015 - USD ($) $ / shares in Units, $ in Thousands | Total |
Number of Options | |
Outstanding, Beginning balance | 136,030 |
Granted | 0 |
Exercised | 0 |
Forfeited or expired | (8,650) |
Outstanding, Ending balance | 127,380 |
Options Exercisable | 127,380 |
Weighted Average Exercise Price | |
Outstanding, Beginning Balance | $ 9.54 |
Forfeited or expired | 9.52 |
Outstanding, Ending Balance | 9.54 |
Options Exercisable | $ 9.54 |
Weighted Average Remaining Contractual Term | |
Outstanding, Beginning | 1 year 4 months 24 days |
Outstanding, ending | 10 months 24 days |
Options exercisable | 10 months 24 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) $ in Thousands | Jun. 30, 2015USD ($) |
Commitments To Extend Credit Details Narrative | |
Obligations to extend credit for loan commitments | $ 28,400 |
COMMITMENTS TO EXTEND CREDIT 45
COMMITMENTS TO EXTEND CREDIT (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Commitments to grant loans [Member] | |
Commitments | $ 11,955 |
Unfunded commitments under lines of credit [Member] | |
Commitments | 16,264 |
Commercial and standby letters of credit [Member] | |
Commitments | $ 134 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Securities available for sale | $ 125,584 | $ 119,968 |
US Treasury Securities and Obligations of US Government Corporations and Agencies [Member] | ||
Securities available for sale | 33,317 | 31,222 |
Municipal Notes [Member] | ||
Securities available for sale | 27,882 | 23,134 |
Corporate Securities [Member] | ||
Securities available for sale | 1,519 | 1,561 |
Equity Securities [Member] | ||
Securities available for sale | 6 | 5 |
Mortgage Backed Securities [Member] | ||
Securities available for sale | 62,860 | 64,046 |
Carrying Value [Member] | ||
Securities available for sale | 125,584 | 119,968 |
Fair Value [Member] | ||
Securities available for sale | 125,584 | 119,968 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Securities available for sale | 1,282 | |
Significant Other Observable Inputs (Level 2) [Member] | ||
Securities available for sale | 122,767 | 119,968 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Securities available for sale | 1,535 | |
Recurring [Member] | Fair Value [Member] | ||
Securities available for sale | 125,584 | 119,968 |
Recurring [Member] | Fair Value [Member] | US Treasury Securities and Obligations of US Government Corporations and Agencies [Member] | ||
Securities available for sale | 33,317 | 31,222 |
Recurring [Member] | Fair Value [Member] | Municipal Notes [Member] | ||
Securities available for sale | 27,882 | 23,134 |
Recurring [Member] | Fair Value [Member] | Corporate Securities [Member] | ||
Securities available for sale | 1,519 | 1,561 |
Recurring [Member] | Fair Value [Member] | Equity Securities [Member] | ||
Securities available for sale | 6 | 5 |
Recurring [Member] | Fair Value [Member] | Mortgage Backed Securities [Member] | ||
Securities available for sale | 62,860 | 64,046 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Securities available for sale | 1,288 | $ 5 |
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 | $ 1,282 | |
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 | $ 6 | $ 5 |
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 | $ 122,761 | $ 117,671 |
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 | 32,035 | 31,222 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Municipal Notes [Member] | ||
Securities available for sale | 26,347 | 20,842 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate Securities [Member] | ||
Securities available for sale | $ 1,519 | $ 1,561 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Equity Securities [Member] | ||
Securities available for sale | ||
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Mortgage Backed Securities [Member] | ||
Securities available for sale | $ 62,860 | $ 64,046 |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Securities available for sale | $ 1,535 | $ 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 | $ 1,535 | $ 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 (Deta47
FAIR VALUE MEASUREMENTS (Details 1) - Nonrecurring [Member] - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Originated Assets [Member] | Fair Value [Member] | ||
Fair Value Assets Measured on a Nonrecurring Basis | ||
Impaired loans | $ 1,736 | $ 1,806 |
Other real estate owned - residential mortgages | 527 | 336 |
Other real estate owned - commercial | 1,568 | 1,628 |
Other repossessed assets | 761 | 860 |
Originated Assets [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 1,736 | 1,806 |
Other real estate owned - residential mortgages | 527 | 336 |
Other real estate owned - commercial | 1,568 | 1,628 |
Other repossessed assets | 761 | 860 |
Total assets measured at fair value on a non-recurring basis | 4,592 | 4,630 |
Acquired Assets [Member] | Fair Value [Member] | ||
Fair Value Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 501 | 396 |
Acquired Assets [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 501 | 396 |
Total assets measured at fair value on a non-recurring basis | $ 501 | $ 396 |
FAIR VALUE MEASUREMENTS (Deta48
FAIR VALUE MEASUREMENTS (Details 2) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Financial assets: | ||
Deposits held at other financial institutions | $ 8,428 | $ 8,429 |
Securities available for sale | 125,584 | 119,968 |
Securities held to maturity | 746 | |
Carrying Value [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 5,391 | 11,472 |
Deposits held at other financial institutions | 8,428 | 8,429 |
Securities available for sale | 125,584 | 119,968 |
Securities held to maturity | 745 | 790 |
Loans held for sale | 121 | 88 |
Loans receivable - net | 165,612 | 163,647 |
Federal Home Loan Bank stock | 1,636 | 2,591 |
Accrued interest receivable | 1,041 | 986 |
Financial liabilities: | ||
Customer deposits | 269,979 | 270,734 |
Federal Home Loan Bank advances | 23,217 | 22,885 |
Accrued interest payable | 101 | 101 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 5,391 | 11,472 |
Securities available for sale | 1,282 | |
Significant Other Observable Inputs (Level 2) [Member] | ||
Financial assets: | ||
Deposits held at other financial institutions | 7,218 | 8,424 |
Securities available for sale | 122,767 | 119,968 |
Securities held to maturity | 746 | 908 |
Federal Home Loan Bank stock | 1,636 | 2,591 |
Financial liabilities: | ||
Customer deposits | 270,541 | 271,200 |
Federal Home Loan Bank advances | 23,053 | 22,696 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Financial assets: | ||
Deposits held at other financial institutions | 1,240 | |
Securities available for sale | 1,535 | |
Loans held for sale | 124 | 90 |
Loans receivable - net | 164,658 | 163,690 |
Accrued interest receivable | 1,041 | 986 |
Financial liabilities: | ||
Accrued interest payable | 101 | 101 |
Fair Value [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 5,391 | 11,472 |
Deposits held at other financial institutions | 8,458 | 8,424 |
Securities available for sale | 125,584 | 119,968 |
Securities held to maturity | 746 | 908 |
Loans held for sale | 124 | 90 |
Loans receivable - net | 164,658 | 163,690 |
Federal Home Loan Bank stock | 1,636 | 2,591 |
Accrued interest receivable | 1,041 | 986 |
Financial liabilities: | ||
Customer deposits | 270,541 | 271,200 |
Federal Home Loan Bank advances | 23,053 | 22,696 |
Accrued interest payable | $ 101 | $ 101 |