Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 13, 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 | |
Trading Symbol | FFNM | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity a Well-known Seasoned Issuer | No | |
Entity a Voluntary Filer | No | |
Entity's Reporting Status Current | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 3,727,014 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,015 |
Consolidated Balance Sheet (Una
Consolidated Balance Sheet (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Cash and cash equivalents: | ||
Cash on hand and due from banks | $ 8,040 | $ 11,205 |
Overnight deposits with FHLB | 478 | 267 |
Total cash and cash equivalents | 8,518 | 11,472 |
Deposits held in other financial institutions | 8,924 | 8,429 |
Securities available for sale | 130,923 | 119,968 |
Securities held to maturity | 745 | 790 |
Loans held for sale | 132 | 88 |
Loans receivable, net of allowance for loan losses of $1,514 and $1,429 as of September 30, 2015 and December 31, 2014, respectively | 168,063 | 163,647 |
Foreclosed real estate and other repossessed assets | 2,495 | 2,823 |
Federal Home Loan Bank stock, at cost | 1,636 | 2,591 |
Premises and equipment | 6,295 | 6,336 |
Assets held for sale | 271 | 478 |
Accrued interest receivable | 1,065 | 986 |
Intangible assets | 1,105 | 1,286 |
Deferred tax asset | 2,394 | 851 |
Mortgage servicing rights | 602 | 710 |
Bank owned life insurance | 4,824 | 4,727 |
Other assets | 831 | 685 |
Total assets | 338,823 | 325,867 |
Liabilities: | ||
Deposits | 279,297 | 270,734 |
Advances from borrowers for taxes and insurance | 270 | 203 |
Advances from Federal Home Loan Bank | 25,072 | 22,885 |
Accrued expenses and other liabilities | 1,107 | 1,509 |
Total liabilities | 305,746 | 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 | 7,127 | 4,765 |
Treasury stock at cost (307,750 shares) | (2,964) | (2,964) |
Accumulated other comprehensive income | 610 | 431 |
Total stockholders' equity | 33,077 | 30,536 |
Total liabilities and stockholders' equity | $ 338,823 | $ 325,867 |
Consolidated Balance Sheet (Un3
Consolidated Balance Sheet (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Allowance for loan losses | $ 1,514 | $ 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 | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Interest income: | ||||
Interest and fees on loans | $ 2,056 | $ 1,934 | $ 6,094 | $ 5,335 |
Interest and dividends on investments | ||||
Taxable | 317 | 217 | 938 | 518 |
Tax-exempt | 28 | 44 | 89 | 127 |
Interest on mortgage-backed securities | 259 | 192 | 811 | 477 |
Total interest income | 2,660 | 2,387 | 7,932 | 6,457 |
Interest expense: | ||||
Interest on deposits | 234 | 205 | 709 | 583 |
Interest on borrowings | 83 | 65 | 217 | 195 |
Total interest expense | 317 | 270 | 926 | 778 |
Net interest income | 2,343 | 2,117 | 7,006 | 5,679 |
(Recovery of) Provision for loan losses | (4) | 257 | (26) | 273 |
Net interest income after provision for loan losses | 2,347 | 1,860 | 7,032 | 5,406 |
Non-interest income: | ||||
Service charges and other fees | 242 | 206 | 696 | 576 |
Mortgage banking activities | 128 | 127 | 378 | 351 |
Net gain on sale of securities | 2 | 1 | 4 | 1 |
Net (loss) income on sale of premises and equipment, real estate owned and other repossessed assets | (8) | (1) | 82 | (27) |
Bargain purchase gain | 1,982 | 1,982 | ||
Other | 104 | 76 | 289 | 188 |
Total non-interest income | 468 | 2,391 | 1,449 | 3,071 |
Non-interest expense: | ||||
Compensation and employee benefits | 1,345 | 1,331 | 4,271 | 3,550 |
FDIC Insurance Premiums | 62 | 56 | 181 | 147 |
Advertising | 43 | 54 | 136 | 125 |
Occupancy | 286 | 274 | 833 | 730 |
Amortization of intangible assets | 61 | 42 | 182 | 82 |
Service bureau charges | 114 | 92 | 319 | 238 |
Professional services | 141 | 50 | 388 | 220 |
Collection activity | 25 | 5 | 82 | 34 |
Real estate owned & other repossessed assets | 251 | 91 | 297 | 120 |
Merger related expense | 140 | 264 | ||
Other | 250 | 336 | 819 | 871 |
Total non-interest expense | 2,578 | 2,471 | 7,508 | 6,381 |
Income before income tax recovery | 237 | 1,780 | 973 | 2,096 |
Income tax recovery | (1,650) | (1,650) | ||
Net Income | 1,887 | 1,780 | 2,623 | 2,096 |
Other Comprehensive Income: | ||||
Unrealized gain (loss) on investment securities - available for sale securities - net of tax | 234 | (161) | 182 | 272 |
Reclassification adjustment for gains realized in earnings - net of tax | (2) | (3) | ||
Comprehensive Income | $ 2,119 | $ 1,619 | $ 2,802 | $ 2,368 |
Net income per share | ||||
Basic (in dollars per share) | $ 0.51 | $ 0.53 | $ 0.70 | $ 0.69 |
Diluted (in dollars per share) | $ 0.51 | $ 0.53 | $ 0.70 | $ 0.69 |
Weighted average number of shares outstanding | ||||
Basic (in shares) | 3,727,014 | 3,369,670 | 3,727,014 | 3,047,702 |
Including dilutive stock options (in shares) | 3,727,014 | 3,369,670 | 3,727,014 | 3,047,702 |
Dividends per common share (in dollars per share) | $ 0.03 | $ 0.02 | $ 0.07 | $ 0.06 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash Flows from Operating Activities: | ||
Net income | $ 2,623 | $ 2,096 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation and amortization | 474 | 321 |
(Recovery of) provision for loan loss | (26) | 273 |
Accretion of acquired loans | (57) | (18) |
Amortization and accretion on securities | 680 | 345 |
Bargain purchase gain | (1,982) | |
Gain on sale of loans held for sale | (204) | (155) |
(Gain) loss on sale of property and equipment and asset held for sale | (81) | 23 |
Gain on sale of available for sale securities | (4) | (1) |
(Gain) loss on sale of real estate owned and other repossessed assets | (1) | 4 |
Originations of loans held for sale | (12,112) | (9,624) |
Proceeds from sale of loans held for sale | 12,272 | 8,726 |
Deferred income tax benefit | (1,650) | (20) |
Net change in: | ||
Accrued interest receivable | (80) | (98) |
Other assets | (23) | (152) |
Bank owned life insurance | (97) | (87) |
Accrued expenses and other liabilities | (403) | 191 |
Net cash provided by (used in) operating activities | 1,311 | (158) |
Cash Flows from Investing Activities: | ||
Net cash received in bank acquisition | 41,357 | |
Net (increase) decrease in loans | (4,910) | 4,049 |
Proceeds from maturies and calls of available-for-sale securities | 23,031 | 7,473 |
Proceeds from maturies and calls of held to maturity securities | 45 | 40 |
Proceeds from sale of real estate owned and other repossessed assets | 906 | 413 |
Proceeds from sale of available-for-sale securities | 1,831 | 218 |
Proceeds from sale of property and equipment | 288 | 3 |
Proceeds from sale of FHLB stock | 955 | |
Purchase of securities | (36,716) | (48,517) |
Purchase of premises and equipment | (251) | (180) |
Net cash (used in) provided by investing activities | (14,821) | 4,856 |
Cash Flows from Financing Activities: | ||
Dividends paid on common stock | (261) | (173) |
Net increase in deposits | 8,562 | 2,691 |
Net increase in advances from borrowers | 67 | 104 |
Advances from Federal Home Loan Bank | 14,000 | 12,555 |
Repayments of Federal Home Loan Bank advances | (11,812) | (15,600) |
Net cash provided by (used in) financing activities | 10,556 | (423) |
Net (decrease) increase in cash and cash equivalents | (2,954) | 4,275 |
Cash and cash equivalents at beginning of period | 11,472 | 2,766 |
Cash and cash equivalents at end of period | 8,518 | 7,041 |
Supplemental disclosure of cash flow information: | ||
Cash refunded for taxes paid | 1,665 | |
Cash paid during the period for interest | 927 | 788 |
Transfers of loans to foreclosed real estate and repossessed assets | $ 577 | $ 1,481 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance at Beginning at Dec. 31, 2013 | $ 32 | $ (2,964) | $ 23,854 | $ 2,763 | $ (160) | $ 23,525 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income for the period | 0 | 0 | 0 | 2,096 | 0 | 2,096 |
Changes in unrealized gain: on available-for-sale securities | 0 | 0 | 0 | 0 | 272 | 272 |
Exchange of Alpena Banking Corp Stock (842,965 shares issued) | 8 | 0 | 4,410 | 0 | 0 | 4,418 |
Dividends declared | 0 | 0 | 0 | (173) | 0 | (173) |
Balance at End at Sep. 30, 2014 | 40 | (2,964) | 28,264 | 4,686 | 112 | 30,138 |
Balance at Beginning at Dec. 31, 2014 | 40 | (2,964) | 28,264 | 4,765 | 431 | 30,536 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income for the period | 2,623 | 2,623 | ||||
Changes in unrealized gain: on available-for-sale securities | 179 | 182 | ||||
Dividends declared | (261) | (261) | ||||
Balance at End at Sep. 30, 2015 | $ 40 | $ (2,964) | $ 28,264 | $ 7,127 | $ 610 | $ 33,077 |
Consolidated Statement of Chan7
Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Stockholders' Equity [Abstract] | ||
Exchange of Alpena Banking Corp Stock (in shares) | 842,965 | |
Tax on changes in unrealized gain: on available-for-sale securities | $ 92 | $ 141 |
BASIS OF FINANCIAL STATEMENT PR
BASIS OF FINANCIAL STATEMENT PRESENTATION | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF FINANCIAL STATEMENT PRESENTATION | Note 1BASIS 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 Companys 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 nine months ended September 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 | 9 Months Ended |
Sep. 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 Banks 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 | 9 Months Ended |
Sep. 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 assets with a fair value of $102.6 million 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 fair value measurements, based on third-party valuations, have been retrospectively reflected and 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. 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 results of operations for the three and nine months ended September 30, 2014 include the operating results of the acquired assets and assumed liabilities for the 51 days subsequent to the Merger Date. Alpena’s results of operations prior to the Merger Date are not included in the Company’s consolidated statement of comprehensive income. The following table provides pro forma information for the results of operations for the three and nine months ended September 30, 2015 and 2014, as if the merger had occurred on January 1 of each year. These unaudited 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 organization 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. Three Months Ended Nine Months Ended 2015 2014 2015 2014 Net interest income $ 2,343 $ 2,413 $ 7,006 $ 7,217 Non-interest expense 2,578 2,852 7,508 7,921 Net income 1,887 1,709 2,623 1,997 Net income per diluted share 0.51 0.46 0.70 0.54 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. The fair value of loans as of the Merger Date is presented in the following table: Acquired Acquired Acquired Real estate loans: Residential mortgages $ 397 $ 6,992 $ 7,389 Commercial Loans: Construction — 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 The following table presents data on acquired impaired loans at the Merger Date: Acquired Acquired Acquired 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 | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | Note 4SECURITIES Investment securities have been classified according to managements intent. The carrying value and estimated fair value of securities are as follows: September 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 $ 34,339 $ 271 $ (9 ) $ 34,601 Municipal obligations 28,243 407 (31 ) 28,619 Corporate bonds & other obligations Mortgage-backed securities 67,415 408 (125 ) 67,698 Equity securities 2 3 5 Total $ 129,999 $ 1,089 $ (165 ) $ 130,923 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 September 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. September 30, 2015 Amortized Market (in thousands) Available For Sale: Due in one year or less $ 1,853 $ 1,864 Due after one year through five years 41,243 41,625 Due in five year through ten years 18,302 18,461 Due after ten years 1,184 1,270 Subtotal 62,582 63,220 Equity securities 2 5 Mortgage-backed securities 67,415 67,698 Total $ 130,000 $ 130,923 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 335 335 Due after ten years 155 155 Total $ 745 $ 746 At September 30, 2015 and December 31, 2014, securities with a carrying value and fair value of $26.3 million and $35.0 million, respectively, were pledged to certain deposit accounts, FHLB advances and our line of credit at the Federal Reserve. Gross proceeds from the sale of securities for the nine-months ended September 30, 2015 and 2014 were $1.8 million and $218,000, respectively, resulting in gross gains of $4,000 and $646 respectively and gross losses of $0 and $0, respectively. The following is a summary of temporarily impaired investments that have been impaired for less than and more than twelve months as of September 30, 2015 and December 31, 2014: September 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 $ 1,998 $ 0 $ 990 $ (9 ) Corporate bonds & other obligations Municipal obligations 2,603 (20 ) 1,963 (11 ) Mortgage-backed securities 13,891 (49 ) 3,854 (76 ) Equity securities Total $ 18,492 $ (69 ) $ 6,807 $ (96 ) 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 $ $ $ $ As of September 30, 2015, there were 27 securities with unrealized losses totaling $165,000 compared to 72 securities with unrealized losses totaling $303,000 at December 31, 2014. 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 Companys 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 | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
LOANS | Note 5LOANS Originated loans are reported at their principal amount outstanding adjusted for partial charge-offs, the allowance, and net deferred loan fees and costs. Interest income on loans is accrued over the term of the loans primarily using the simple interest method based on the principal balance outstanding. Interest is not accrued on loans where collectability is uncertain. Accrued interest is presented separately in the consolidated balance sheet. Loan origination fees and certain direct costs incurred to extend credit are deferred and amortized over the term of the loan or loan commitment period as an adjustment to the related loan yield. Acquired loans are those obtained in the Merger (See Note 3 Business Combination for further information). These loans were recorded at estimated fair value at the Acquisition Date with no carryover of the related allowance. The acquired loans were segregated between those considered to be performing (acquired non-impaired loans) and those with evidence of credit deterioration (acquired impaired loans). Acquired loans are considered impaired if there is evidence of credit deterioration and if it is probable, at acquisition, that all contractually required payments will not be collected. Acquired loans restructured after acquisition are not considered or reported as troubled debt restructurings if the loans evidenced credit deterioration as of the Acquisition Date and are accounted for in pools. As of September 30, 2015, no acquired loans were modified as troubled debt restructurings after the Acquisition Date. The fair value estimates for acquired loans are based on expected prepayments and the amount and timing of discounted expected principal, interest and other cash flows. Credit discounts representing the principal losses expected over the life of the loan are also a component of the initial fair value. In determining the Acquisition Date fair value of acquired impaired loans, and in subsequent accounting, we have generally aggregated acquired mortgage, commercial and consumer loans into pools of loans with common risk characteristics. The difference between the fair value of an acquired non-impaired loan and contractual amounts due at the Acquisition Date is accreted into income over the estimated life of the loan. Contractually required payments represent the total undiscounted amount of all uncollected principal and interest payments. Acquired non-impaired loans are placed on nonaccrual status and reported as nonperforming or past due using the same criteria applied to the originated loan portfolio. The excess of an acquired impaired loans contractually required payments over the amount of its undiscounted cash flows expected to be collected is referred to as the non-accretable difference. The non-accretable difference, which is neither accreted into income nor recorded on the consolidated balance sheet, reflects estimated future credit losses and uncollectible contractual interest expected to be incurred over the life of the acquired impaired loan. The excess cash flows expected to be collected over the carrying amount of the acquired loan is referred to as the accretable yield. This amount is accreted into interest income over the remaining life of the acquired loans or pools using the level yield method. The accretable yield is affected by changes in interest rate indices for variable rate loans, changes in prepayment speed assumptions and changes in expected principal and interest payments over the estimated lives of the acquired impaired loans. We evaluate quarterly the remaining contractual required payments receivable and estimate cash flows expected to be collected over the life of the impaired loans. Contractually required payments receivable may increase or decrease for a variety of reasons, for example, when the contractual terms of the loan agreement are modified, when interest rates on variable rate loans change, or when principal and/or interest payments are received. Cash flows expected to be collected on acquired impaired loans are estimated by incorporating several key assumptions similar to the initial estimate of fair value. These key assumptions include probability of default, loss given default, and the amount of actual prepayments after the Acquisition Date. Prepayments affect the estimated lives of loans and could change the amount of interest income, and possibly principal, expected to be collected. In re-forecasting future estimated cash flows, credit loss expectations are adjusted as necessary. The adjustments are based, in part, on actual loss severities recognized for each loan type, as well as changes in the probability of default. For periods in which estimated cash flows are not re-forecasted, the prior reporting periods estimated cash flows are adjusted to reflect the actual cash received and credit events that transpired during the current reporting period. Increases in expected cash flows of acquired impaired loans subsequent to the Acquisition Date are recognized prospectively through adjustments of the yield on the loans or pools over their remaining lives, while decreases in expected cash flows are recognized as impairment through a provision for loan losses and an increase in the allowance. The following table sets forth the composition of our loan portfolio by loan type at the dates indicated. At September 30, At December 31, (in thousands) Real estate loans: Residential mortgage $ 76,458 $ 71,828 Commercial loans: Construction - real estate 257 1,443 Secured by real estate 59,096 62,163 Other 23,387 19,000 Total commercial loans 82,740 82,606 Consumer loans: Secured by real estate 9,063 9,502 Other 1,557 1,403 Total consumer loans 10,620 10,905 Total gross loans $ 169,818 $ 165,339 Less: Net deferred loan fees (241 ) (263 ) Allowance for loan losses (1,514 ) (1,429 ) Total loans, net $ 168,063 $ 163,647 Total outstanding balance and carrying value of acquired impaired loans was $4.2 million and $3.1 million, respectively, as of September 30, 2015. Changes in the accretable yield for acquired impaired loans for the nine months ended September 30, 2015 were as follows: Acquired Acquired December 31, 2014 balance $ (1,232 ) $ (208 ) $ (1,440 ) Net discount associated with acquired loans Accretion of discount for credit spread 57 57 Transfer from non-accreatable to accreatable 25 (25 ) Loans paid off through September 30, 2015 6 6 Loans charged off through September 30, 2015 113 113 Total $ (1,088 ) $ (176 ) $ (1,264 ) The following table illustrates the contractual aging of the recorded investment in past due loans by class of loans as of September 30, 2015 and December 31, 2014: As of September 30, 2015 30 - 59 Days 60 - 89 Days Past Due Greater than Recorded (dollars in thousands) Originated Loans: Commercial Real Estate: Commercial Real Estate - construction $ $ $ $ $ 257 $ 257 $ Commercial Real Estate - other 640 640 44,577 45,217 Commercial - non real estate 29 11 40 20,887 20,927 Consumer: Consumer - Real Estate 137 137 7,353 7,490 Consumer - Other 4 4 1,433 1,437 Residential: Residential 1,273 481 231 1,985 68,906 70,891 125 Total $ 2,079 $ 492 $ 235 $ 2,806 $ 143,413 $ 146,219 $ 125 As of September 30, 2015 60 - 89 Days Greater than Recorded (dollars in thousands) Acquired Loans: Commercial Real Estate: Commercial Real Estate - construction $ $ $ $ $ $ $ Commercial Real Estate - other 222 176 259 657 13,222 13,879 97 Commercial - non real estate 17 359 451 827 1,633 2,460 300 Consumer: Consumer - Real Estate 4 4 1,569 1,573 Consumer - Other 120 120 Residential: Residential 306 265 571 4,996 5,567 Total $ 545 $ 535 $ 979 $ 2,059 $ 21,540 $ 23,599 $ 397 As of December 31, 2014 Originated Loans: 30 - 59 Days 60 - 89 Days Greater than Recorded (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 Acquired Loans: Greater than Total Recorded (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 loan. The risk ratings are described as follows: Risk Grade 1 ○ Demonstrates exceptional credit fundamentals, including stable and predictable profit margins and cash flows, strong liquidity, and a conservative balance sheet. ○ Significant cash flow coverage of existing and pro forma debt service. ○ Industry leader with a diversified product mix and broad geographical market distribution. ○ Obligations secured by cash (on us deposits) and U.S. Government securities within policy advance rates. Risk Grade 2 ○ The difference between this rating and Class 1 is generally in degree and size. Credit quality is slightly less dominant, with less predictability in earnings and cash flow. ○ Customer may be one of the stronger and larger privately held companies. Balance sheet is conservative with excellent liquidity. ○ Obligations secured by liquid financial instruments within policy advance rates. Risk Grade 3 ○ Obligor may also be a privately held, middle market company with a strong balance sheet, consistent earnings, and worthy of unsecured credit. ○ Leverage, liquidity and coverage average to slightly better than average within industry. Balance sheet may contain some intangibles. ○ History of profitable operations, but conditions exist that would suggest obligors earnings could temporarily decline due to market or economic conditions. ○ Cash flow is adequate and profit margins are slightly above average within the industry. ○ Obligors product mix may lack diversity or geographic distribution, but is usually not confined to a single product or service. ○ Bank borrowings will tend not to be constant; obligors debt instruments would be attractive to other lenders. Most likely would have access to alternative sources of funding (public or private). Risk Grade 4 ○ Subject to normal degree of risk. ○ Cash flow is adequate to service debt, but is susceptible to some deterioration due to cyclical, seasonal or economic fluctuations. ○ Balance sheet contains some leverage; liquidity could be temporarily tight. There could be some asset concentration. ○ Access to financial markets could be limited or expensive. ○ Management is experienced but may be concentrated in a few key people. ○ Some unfavorable characteristics may exist: - Reliance on single product or major customer concentration - Volatility of earnings or earnings weakness due to competition - Leverage is increasing, but is still within normal industry parameters - Management is capable but would be tested in an adverse business environment - High leverage offset by stable or predictable cash flow ○ Borrowings would usually be on a secured basis, with some inventory reliance and fairly steady outstandings. Borrowing base may be fully utilized from time to time. ● 4.5 - Acceptable Risk Monitored: This rating category is a subset of a Risk Grade 4-Acceptable and serves primarily as an early warning indicator to management to avoid surprises to Special Mention or worse credits. The loans in this category may have several characteristics of a Risk Grade 4 loan, but have negative results and trending that warrant monitoring. ○ More unpredictability in earnings and cash flow. Obligor may have experienced modest and presumably temporary losses; resulting in a temporary negative cash flow. ○ Current financial statements have not been provided by the borrower. ○ Leverage ratios and liquidity are below normal industry standards, but may be deliberate financial restructuring, testing the limits of acceptable capitalization. ○ Secondary source of repayment may be limited. Grade 4.5 risk rated credits are acceptable, but if the weakness is not checked or corrected the asset may further weaken or inadequately protect the Banks credit exposure at some future date. Risk Grade 5 A Special Mention asset is not considered criticized for regulatory purposes. A Special Mention obligor may exhibit a potential weakness that may result in the deterioration of the repayment prospects for the credit or in the Banks credit position in the future; however, there must also be a well-defined plan of corrective action that is believed to be credible. ○ The obligor will generally have exhibited a sudden but modest and temporary deterioration, often related to a specific event. ○ Protracted gradual deterioration that appears to represent a trend or sudden deterioration of a more significant magnitude would warrant a more severe risk rating. ○ The action plan may include certain kinds of bridging events (for example, a capital injection) that could resolve the issue. ○ Special Mention asset may also have a single event of uncertainty associated with it, which should generally be resolved within 120 days (for example, management succession, litigation or turnaround acquisition). Risk Grade 6 A Substandard asset has well defined weakness(es) where a payment default is possible and a loss is possible, but not yet probable. Assets so classified are inadequately protected by current net worth and repayment capacity or there is a likelihood that collateral will have to be liquidated to repay the debt. ○ Cash flow from operations may be insufficient to meet principal reductions as expected, with the prospect that this condition may not be temporary. ○ Restructure not in the ordinary course of business has occurred or is anticipated. ○ A payment default is possible (at least 20% probability but less than 50%) and there is a dependence upon favorable business, financial, and economic conditions to meet timely payment of interest and repayment of principal. ○ If deficiencies are not corrected, there is a possibility of loss (less than 25% probability) and a question regarding the companys ability to operate as a going concern. ○ Generally, the asset/loan is considered collectible as to both principal and interest, primarily because of collateral coverage or enterprise value. Loss of principal is not at question, unless current trends were to continue. Risk Grade 7 A Doubtful asset/loan has characteristics of Substandard, but available information suggests it is unlikely that the asset/loan will be repaid in its entirety. A loan/asset with a grade 7 is reported in the Banks financial records on a non-accrual basis. The entire asset/loan should be rated Doubtful when any portion is considered Doubtful. Risk Grade 8 Assets/loans or portions of assets/loans classified as Loss are determined to be uncollectible and are of such little value that their continuing classification as bankable is unwarranted. Accordingly, that portion of an asset/loan with a 75% or greater probability of being uncollectible should be classified Loss and promptly charged off. The remaining portion of the asset/loan may be classified Doubtful, depending on the circumstances. This does not suggest, however, that there is no possibility of a recovery of a portion or all of the charged-off asset/loan at some future time. The following table presents the risk category of loans by class of loans based on the most recent analysis performed as of September 30, 2015 and December 31, 2014: As of September 30, 2015 Originated Loans: Loan Grade Commercial Real Estate Construction Commercial Real Estate Other Commercial 1-2 $ $ 658 $ 342 3 12,364 10,852 4 237 21,701 7,336 4.5 20 3,268 357 5 2,595 224 6 4,631 1,816 7 8 Total $ 257 $ 45,217 $ 20,927 Acquired Loans: Loan Grade Commercial Real Estate Construction Commercial Real Estate Other Commercial 1-2 $ $ 236 $ 690 3 2,128 392 4 9,598 545 4.5 461 7 5 694 375 6 761 451 7 0 0 8 0 0 Total $ $ 13,878 $ 2,460 As of December 31, 2014 Originated Loans: Loan Grade Commercial Real Estate Construction Commercial Real Estate 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: Loan Grade Commercial Real Estate Construction Commercial Real Estate 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 loans by class based on the most recent analysis performed as of September 30, 2015 and December 31, 2014: As of September 30, 2015 Residential Consumer - Consumer - Other Originated Loans: Loan Grade: Pass $ 70,350 $ 7,462 $ 1,432 Special Mention Substandard 541 28 4 Total $ 70,891 $ 7,490 $ 1,436 Residential Consumer - Consumer - Other Acquired Loans: Loan Grade: Pass $ 5,294 $ 1,565 $ 120 Special Mention Substandard 273 9 Total $ 5,567 $ 1,574 $ 120 As of December 31, 2014 Residential Consumer - Consumer - Other Originated Loans: Loan Grade: Pass $ 64,397 $ 7,778 $ 1,155 Special Mention Substandard 545 24 3 Total $ 64,942 $ 7,802 $ 1,158 Residential Consumer - Consumer - Other Acquired Loans: Loan Grade: Pass $ 6,335 $ 1,731 $ 213 Special Mention Substandard 551 1 Total $ 6,886 $ 1,732 $ 213 The following table presents the recorded investment in non-accrual loans by class as of September 30, 2015 and December 31, 2014: As of September 30, 2015 December 31, 2014 (in thousands) Commercial Real Estate: Commercial Real Estate - construction $ $ Commercial Real Estate - other 370 486 Commercial 151 77 Consumer: Consumer - real estate 35 25 Consumer - other 4 Residential: Residential 681 750 Total $ 1,241 $ 1,338 Acquired impaired loans are not subject to individual evaluation for impairment and are not reported as non-performing loans based on acquired impaired loan accounting. Acquired non-impaired loans are placed on non-accrual status and reported as past due or non-performing using the same criteria that is applied to the originated loan portfolio. The key features of the Companys 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 Companys 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. At a minimum, 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 $3.1 million of its impaired loans as troubled debt restructurings (TDRs) as of September 30, 2015. There were no commitments to extend credit to borrowers with loans classified as TDRs as of September 30, 2015 and December 31, 2014. TDR loans are classified as being in default on a case by case basis when they fail to be in compliance with the modified terms. For the three and nine months ended September 30, 2015 and 2014 the Company did not have any new TDRs or TDRs that subsequently defaulted. For the majority of the Banks 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 loans 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 tables present loans individually evaluated for impairment by class of loans as of September 30, 2015 and December 31, 2014: Impaired Loans For the Three For the Nine Unpaid Principal Balance Recorded Investment Related Allowance Average Interest Average Interest (dollars in thousands) With no specific allowance recorded: Commercial Real Estate - Construction $ $ $ $ $ $ $ Commercial Real Estate - Other 728 728 756 11 796 36 Commercial - Other Consumer - Real Estate 14 12 12 12 Consumer - Other 6 4 5 4 Residential 526 435 442 5 449 10 With a specific allowance recorded: Commercial Real Estate - Construction Commercial Real Estate - Other 935 935 11 940 12 949 36 Commercial - Other Consumer - Real Estate 18 16 16 17 17 Consumer - Other Residential 185 176 38 178 178 1 Totals: Commercial Real Estate - Construction $ $ $ $ $ $ $ Commercial Real Estate - Other $ 1,663 $ 1,663 $ 11 $ 1,696 $ 23 $ 1,745 $ 72 Commercial - Other $ $ $ $ $ $ $ Consumer - Real Estate $ 32 $ 28 $ 16 $ 29 $ $ 29 $ Consumer - Other $ 6 $ 4 $ $ 5 $ $ 4 $ Residential $ 711 $ 611 $ 38 $ 620 $ 5 $ 627 $ 11 Impaired Loans For the Three For the Nine Unpaid Principal Balance Recorded Investment Related Allowance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (dollars in thousands) With no related allowance recorded: Commercial Real Estate - Construction $ — $ — $ — $ — $ — $ — $ — Commercial Real Estate - Other — — — — — — — Commercial - Other 1,431 1,430 — 1,444 21 1,499 63 Consumer - Real Estate 26 24 — — — — — Consumer - Other — — — 27 — 27 — Residential 781 618 — — — — — 528 1 534 4 With a specific allowance recorded: Commercial Real Estate - Construction — — — 173 — 173 — Commercial Real Estate - Other — — — 392 5 396 13 Commercial - Other 386 386 10 — — — — Consumer - Real Estate — — — — — — — Consumer - Other — — — — — — — Residential — — — 179 — 179 1 Totals: Commercial Real Estate - Construction $ — $ — $ — $ 173 $ — $ 173 $ — Commercial Real Estate - Other $ — $ — $ — $ 1,836 $ 26 $ 1,895 $ 76 Commercial - Other $ 1,817 $ 1,816 $ 10 $ — $ — $ — $ — Consumer - Real Estate $ 26 $ 24 $ — $ 27 $ — $ 27 $ — Consumer - Other $ — $ — $ — $ — $ — $ — $ — Residential $ 781 $ 618 $ — $ 707 $ 1 $ 713 $ 5 Acquired loans are not subject to individual evaluation for impairment and are not reported as impaired loans based on acquired impaired loan accounting. Acquired non-impaired loans are placed on nonaccrual status and reported as impaired using the same criteria applied to the originated loan portfolio. In accordance with purchase accounting rules, acquired loans were recorded at fair value at the acquisition date and the prior allowance was eliminated. No allowance for loan loss has been established on these acquired loans through September 30, 2015. The 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 nine months ended September 30, 2015 and September 30, 2014, respectively: Allowance for Credit Losses For the Three Months Ended September 30, 2015 Commercial Construction Commercial Real Estate Commercial Consumer Real Estate Consumer Residential Unallocated Total (dollars in thousands) Allowance for credit losses: Beginning Balance $ $ 492 $ 140 $ 42 $ 18 $ 721 $ 75 $ 1,488 Charge-offs (7 ) (3 ) (5 ) (15 ) Recoveries 1 9 8 15 13 46 Provision (1 ) 55 (7 ) (15 ) (52 ) 15 (5 ) Ending Balance $ 1 $ 500 $ 195 $ 36 $ 15 $ 677 $ 90 $ 1,514 For the Nine Months Ended September 30, 2015 Commercial Construction Commercial Real Estate Commercial Consumer 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 ) (11 ) (15 ) (42 ) (71 ) Recoveries 13 74 5 28 16 46 182 Provision (20 ) 122 96 (14 ) (5 ) (196 ) (9 ) (26 ) Ending Balance $ 1 $ 500 $ 195 $ 36 $ 15 $ 677 $ 90 $ 1,514 Loan Balances Evaluated for Impairment As of September 30, 2015 Commercial Construction Commercial Real Estate Commercial Consumer Real Estate Consumer Residential Unallocated Total (dollars in thousands) Allowance for loan losses as of September 30, 2015 Ending balance: individually evaluated for impairment $ $ 11 $ $ 16 $ $ 38 $ $ 65 Ending balance: loans collectively evaluated for impairment $ 1 $ 489 $ 195 $ 20 $ 15 $ 639 $ 90 $ 1,449 Loans as of September 30, 2015 Loans: Ending Balance $ 257 $ 59,096 $ 23,387 $ 9,063 $ 1,557 $ 76,458 $ $ 169,818 Ending balance: individually evaluated for impairment $ $ 1,663 $ $ 28 $ 611 $ $ 2,302 Ending balance: loans collectively evaluated for impairment $ 257 $ 43,554 $ 20,927 $ 7,462 $ 1,436 $ 70,280 $ $ 143,916 Acquired loans with deteriorated credit quality not subject to loan loss reserve $ $ 1,892 $ 810 $ 11 $ $ 401 $ $ 3,114 Other acquired loans not subject to loan loss reserve $ $ 11,987 $ 1,650 $ 1,563 $ 120 $ 5,166 $ $ 20,486 Allowance for Credit Losses For the Three Months Ended September 30, 2014 Commercial Construction Commercial Real Estate Commercial Consumer Real Estate Consumer Residential Unallocated Total (dollars in thousands) Allowance for credit losses: Beginning Balance $ 48 $ 426 $ 72 $ 38 $ 16 $ 783 $ 104 $ 1,487 Charge-offs (225 ) (2 ) (17 ) (66 ) (310 ) Recoveries 14 1 3 12 30 Provision 2 18 (14 ) (1 ) 6 211 35 257 Ending Balance $ 50 $ 233 $ 59 $ 38 $ 5 $ 940 $ 139 $ 1,464 For the Nine Months Ended September 30, 2014 Commercial Construction Commercial Real Estate Commercial Consumer 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 (241 ) (15 ) (23 ) (111 ) (390 ) Recoveries 45 1 26 37 109 Provision 2 (15 ) (5 ) (35 ) 7 230 89 273 Ending Balance $ 50 $ 233 $ 59 $ 38 $ 5 $ 940 $ 139 $ 1,464 Loan Balances Individually Evaluated for Impairment As of September 30, 2014 Commercial Construction Commercial Real Estate Commercial Consumer Real Estate Consumer Residential Unallocated Total (dollars in thousands) Allowance for loan losses as of September 30, 2014 Ending balance: individually evaluated for impairment $ 48 $ 11 $ $ $ $ 39 $ $ 98 Ending balance: loans collectively evaluated for impairment $ 2 $ 222 $ 59 $ 38 $ 5 $ 901 $ 139 $ 1,366 Loans as of September 30, 2014 Loans: Ending Balance $ 634 $ 45,697 $ 12,578 $ 7,905 $ 1,098 $ 65,526 $ $ 133,438 Ending balance: individually evaluated for impairment $ 173 $ 1,620 $ 202 $ 39 $ $ 1,370 $ $ 3,404 Ending balance: loans collectively evaluated for impairment $ 461 $ 44,077 $ 12,376 $ 7,866 $ 1,098 $ 64,156 $ $ 130,034 |
DIVIDENDS
DIVIDENDS | 9 Months Ended |
Sep. 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 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 Banks earnings, capital requirements, financial condition and other factors considered by the Board of Directors. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 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 Companys 1996 Stock Option Plan (the 1996 Plan), which was approved by shareholders, permits the grant of options to purchase shares of common stock to its employees and directors for up to 127,491 shares of common stock (retroactively adjusted for the exchange ratio applied in the Companys 2005 stock offering and related second-step conversion). The Companys 2006 Stock-Based Incentive Plan (the 2006 Plan), which was approved by shareholders, 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 to be granted as restricted stock awards is 69,354. Option awards are granted with an exercise price equal to the market price of the Companys stock at the date of grant. These 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 nine months ended September 30, 2015 the Company awarded no shares under the either the 2006 Plan or the 1996 Plan. Shares issued under the plans and exercised pursuant to the exercise of stock options may be either authorized but unissued shares or reacquired shares held by the Company as treasury stock. Stock Options - Options Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at January 1, 2015 136,030 $ 9.54 1.4 $ Granted N/A Exercised N/A Forfeited or expired (14,400 ) $ 9.35 Outstanding at September 30, 2015 121,630 $ 9.57 0.6 $ Options Exercisable at September 30, 2015 121,630 $ 9.57 0.6 $ The aggregate intrinsic value of outstanding options shown in the table above represents the total pretax intrinsic value (i.e. the difference between the Companys closing stock price of $6.29 on September 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 September 30, 2015. This amount changes based on the fair market value of the stock. As of September 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 September 30, 2015. In addition, there were no non-vested options as of September 30, 2015. Restricted Stock Awards |
COMMITMENTS TO EXTEND CREDIT
COMMITMENTS TO EXTEND CREDIT | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
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, standby 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 Companys 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 September 30, 2015, the Company had outstanding commitments to originate loans of $23.5 million. These commitments include the following: As of (in thousands) Commitments to grant loans $ 6,373 Unfunded commitments under lines of credit 16,939 Commercial and standby letters of credit 130 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
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 Companys assets and liabilities measured at fair value on a recurring basis as of September 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 September 30, 2015 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Balance at September 30, (dollars in thousands) Assets Investment securities- available-for-sale: US Treasury securities and obligations of U.S. government corporations and agencies $ 1,282 $ 33,319 $ $ 34,601 Municipal obligations 26,781 1,838 28,619 Corporate bonds & other obligations Mortgage-backed securities 67,698 67,698 Equity securities 5 5 Total investment securities - available-for-sale $ 1,287 $ 127,798 $ 1,838 $ 130,923 Assets and Liabilities Measured at Fair Value on a Recurring Basis at December 31, 2014 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Fair Value as of December 31, (dollars in thousands) Assets Investment securities - available-for-sale: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 1,279 $ 29,943 $ $ 31,222 Municipal obligations 20,872 2,262 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 $ 1,284 $ 116,422 $ 2,262 $ 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 September 30, 2015. For the available for sale securities, the Company obtains fair value measurements from an independent third-party service. The following table presents the changes in Level 3 assets measured at fair value on a recurring basis. Three Months Ended Nine Months Ended September 30, 2015 Available-for-Sale Securities Available-for-Sale Securities Balance, beginning of period $ 1,984 $ 2,292 Purchases Sales or maturities (117 ) (275 ) Unrealized gain (loss) (29 ) (179 ) Balance, end of period $ 1,838 $ 1,838 Three Months Ended September 30, 2014 Nine Months Ended September 30, 2014 Available-for-Sale Securities Available-for-Sale Securities Balance, beginning of period $ 1,905 $ 1,941 Purchases 360 360 Sales or maturities (122 ) (100 ) Unrealized gain (loss) 119 61 Balance, end of period $ 2,262 $ 2,262 The Company has assets that, under certain conditions, are subject to measurement at fair value on a nonrecurring basis. At September 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 September 30, 2015 Balance at Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (dollars in thousands) Originated Assets: Impaired loans accounted for under FASB ASC 310-10 $ 1,663 $ $ $ 1,663 Other real estate owned -residential mortgages 527 527 Other Real estate owned - commercial 1,721 1,721 Other repossessed assets 774 774 Total assets at fair value on a non-recurring basis $ 4,685 Acquired Assets: Impaired loans accounted for under FASB ASC 310-10 $ 540 $ $ $ 540 Other real estate owned -residential mortgages Other real estate owned - commercial Other repossessed assets Total assets at fair value on a non-recurring basis $ 540 Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2014 Balance at Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (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 - Deposits Held in Other Financial Institutions - 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, related carrying or notional amounts, and level of the Companys financial instruments are as follows: September 30, 2015 Carrying Level 1 Level 2 Level 3 Total Estimated Fair Value (in thousands) Financial assets: Cash and cash equivalents $ 8,518 $ 8,518 $ $ $ 8,518 Deposits held at other financial institutions 8,924 8,924 8,924 Securities available for sale 130,923 1,287 127,798 1,838 130,923 Securities held to maturity 745 746 746 Loans held for sale 132 147 147 Loans receivable - net 168,063 167,238 167,238 Federal Home Loan Bank stock 1,636 1,636 1,636 Accrued interest receivable 1,065 1,065 1,065 Financial liabilities: Customer deposits 279,297 279,851 279,851 Federal Home Loan Bank advances 25,072 25,036 25,036 Accrued interest payable 101 101 101 December 31, 2014 Carrying Level 1 Level 2 Level 3 Total Estimated Fair Value (in thousands) Financial assets: Cash and cash equivalents $ 11,472 $ 11,472 $ $ $ 11,472 Deposits held at other financial institutions 8,429 8,429 8,429 Securities available for sale 119,968 1,284 116,392 2,292 119,968 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 |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENT | 9 Months Ended |
Sep. 30, 2015 | |
Recent Accounting Pronouncement | |
RECENT ACCOUNTING PRONOUNCEMENT | Note 10 RECENT ACCOUNTING PRONOUNCEMENT The Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2014-09 (ASU 2014-09), Revenue from Contracts with Customers (Topic 606). ASU 2014-09 adopts a standardized approach for revenue recognition and was a joint effort with the International Accounting Standards Board (IASB). The new revenue recognition standard is based on a core principle of recognizing revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 does not apply to financial instruments. ASU 2014-09 is effective for public entities for reporting periods beginning after December 15, 2016 (therefore, for the year ending December 31, 2017 for the Corporation). Early implementation is not allowed for public companies. Management is currently assessing the impact to the Corporations consolidated financial statements. |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Schedule of purchase price of acquisition | The fair value measurements, based on third-party valuations, have been retrospectively reflected and 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. Purchase Price: (,000's omitted) First Federal of Northern Michigan Bancorp, Inc. common stock issued for Alpena Banking Corporation common shares 843 Price per share, based on First Federal of Northern Michigan Bancorp, Inc. closing price on August 8, 2014 $ 5.59 Total purchase price $ 4,712 Preliminary Statement of Net Assets Acquired at Fair Value: Assets Cash and cash equivalents $ 41,650 Securities 24,008 Loans 33,051 Premises and Equipment 1,667 Core Deposit Intangible 1,392 Deferred Tax Asset 337 Other Assets 467 Total Assets $ 102,572 Liabilities Deposits 95,787 Other Liabilities 91 Total Liabilities $ 95,878 Net Identifiable Assets Acquired $ 6,694 Bargain Purchase Gain $ (1,982 ) |
Schedule of the unaudited pro forma information for the results of operations | The following table provides pro forma information for the results of operations for the three and nine months ended September 30, 2015 and 2014, as if the merger had occurred on January 1 of each year. These unaudited 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 organization 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. Three Months Ended Nine Months Ended 2015 2014 2015 2014 Net interest income $ 2,343 $ 2,413 $ 7,006 $ 7,217 Non-interest expense 2,578 2,852 7,508 7,921 Net income 1,887 1,709 2,623 1,997 Net income per diluted share 0.51 0.46 0.70 0.54 |
Schedule of acquired loans | The fair value of loans as of the Merger Date is presented in the following table: Acquired Acquired Acquired Real estate loans: Residential mortgages $ 397 $ 6,992 $ 7,389 Commercial Loans: Construction 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 The following table presents data on acquired impaired loans at the Merger Date: Acquired Acquired Acquired 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) | 9 Months Ended |
Sep. 30, 2015 | |
Securities Tables | |
Schedule of carrying value and estimated fair value of securities | Investment securities have been classified according to managements intent. The carrying value and estimated fair value of securities are as follows: September 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 $ 34,339 $ 271 $ (9 ) $ 34,601 Municipal obligations 28,243 407 (31 ) 28,619 Corporate bonds & other obligations Mortgage-backed securities 67,415 408 (125 ) 67,698 Equity securities 2 3 5 Total $ 129,999 $ 1,089 $ (165 ) $ 130,923 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 September 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. September 30, 2015 Amortized Market (in thousands) Available For Sale: Due in one year or less $ 1,853 $ 1,864 Due after one year through five years 41,243 41,625 Due in five year through ten years 18,302 18,461 Due after ten years 1,184 1,270 Subtotal 62,582 63,220 Equity securities 2 5 Mortgage-backed securities 67,415 67,698 Total $ 130,000 $ 130,923 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 335 335 Due after ten years 155 155 Total $ 745 $ 746 |
Summary of Temporily Impaired Investments Impaired | The following is a summary of temporarily impaired investments that have been impaired for less than and more than twelve months as of September 30, 2015 and December 31, 2014: September 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 $ 1,998 $ 0 $ 990 $ (9 ) Corporate bonds & other obligations Municipal obligations 2,603 (20 ) 1,963 (11 ) Mortgage-backed securities 13,891 (49 ) 3,854 (76 ) Equity securities Total $ 18,492 $ (69 ) $ 6,807 $ (96 ) 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) | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
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 September 30, At December 31, (in thousands) Real estate loans: Residential mortgage $ 76,458 $ 71,828 Commercial loans: Construction - real estate 257 1,443 Secured by real estate 59,096 62,163 Other 23,387 19,000 Total commercial loans 82,740 82,606 Consumer loans: Secured by real estate 9,063 9,502 Other 1,557 1,403 Total consumer loans 10,620 10,905 Total gross loans $ 169,818 $ 165,339 Less: Net deferred loan fees (241 ) (263 ) Allowance for loan losses (1,514 ) (1,429 ) Total loans, net $ 168,063 $ 163,647 |
Schedule of the change in accretable and nonaccretable yields of acquired impaired loans | Total outstanding balance and carrying value of acquired impaired loans was $4.2 million and $3.1 million, respectively, as of September 30, 2015. Changes in the accretable yield for acquired impaired loans for the nine months ended September 30, 2015 were as follows: Acquired Acquired December 31, 2014 balance $ (1,232 ) $ (208 ) $ (1,440 ) Net discount associated with acquired loans Accretion of discount for credit spread 57 57 Transfer from non-accreatable to accreatable 25 (25 ) Loans paid off through September 30, 2015 6 6 Loans charged off through September 30, 2015 113 113 Total $ (1,088 ) $ (176 ) $ (1,264 ) |
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 September 30, 2015 and December 31, 2014: As of September 30, 2015 30 - 59 Days 60 - 89 Days Past Due Greater than Recorded (dollars in thousands) Originated Loans: Commercial Real Estate: Commercial Real Estate - construction $ $ $ $ $ 257 $ 257 $ Commercial Real Estate - other 640 640 44,577 45,217 Commercial - non real estate 29 11 40 20,887 20,927 Consumer: Consumer - Real Estate 137 137 7,353 7,490 Consumer - Other 4 4 1,433 1,437 Residential: Residential 1,273 481 231 1,985 68,906 70,891 125 Total $ 2,079 $ 492 $ 235 $ 2,806 $ 143,413 $ 146,219 $ 125 As of September 30, 2015 60 - 89 Days Greater than Recorded (dollars in thousands) Acquired Loans: Commercial Real Estate: Commercial Real Estate - construction $ $ $ $ $ $ $ Commercial Real Estate - other 222 176 259 657 13,222 13,879 97 Commercial - non real estate 17 359 451 827 1,633 2,460 300 Consumer: Consumer - Real Estate 4 4 1,569 1,573 Consumer - Other 120 120 Residential: Residential 306 265 571 4,996 5,567 Total $ 545 $ 535 $ 979 $ 2,059 $ 21,540 $ 23,599 $ 397 As of December 31, 2014 Originated Loans: 30 - 59 Days 60 - 89 Days Greater than Recorded (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 Acquired Loans: Greater than Total Recorded (dollars in thousands) Commercial Real Estate - construction $ $ $ $ $ $ $ Commercial Real Estate - other 125 128 93 346 15,604 15,950 Commercial - non real estate 40 104 144 4,217 4,361 Consumer: Consumer - Real Estate 123 123 1,609 1,732 Consumer - Other 213 213 Residential: Residential 147 56 461 664 6,222 6,886 225 Total $ 395 $ 224 $ 658 $ 1,277 $ 27,865 $ 29,142 $ 225 |
Schedule of loans by risk category | The following table presents the risk category of loans by class of loans based on the most recent analysis performed as of September 30, 2015 and December 31, 2014: As of September 30, 2015 Originated Loans: Loan Grade Commercial Real Estate Construction Commercial Real Estate Other Commercial 1-2 $ $ 658 $ 342 3 12,364 10,852 4 237 21,701 7,336 4.5 20 3,268 357 5 2,595 224 6 4,631 1,816 7 8 Total $ 257 $ 45,217 $ 20,927 Acquired Loans: Loan Grade Commercial Real Estate Construction Commercial Real Estate Other Commercial 1-2 $ $ 236 $ 690 3 2,128 392 4 9,598 545 4.5 461 7 5 694 375 6 761 451 7 0 0 8 0 0 Total $ $ 13,878 $ 2,460 As of December 31, 2014 Originated Loans: Loan Grade Commercial Real Estate Construction Commercial Real Estate 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: Loan Grade Commercial Real Estate Construction Commercial Real Estate 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 loans by class based on the most recent analysis performed as of September 30, 2015 and December 31, 2014: As of September 30, 2015 Residential Consumer - Consumer - Other Originated Loans: Loan Grade: Pass $ 70,350 $ 7,462 $ 1,432 Special Mention Substandard 541 28 4 Total $ 70,891 $ 7,490 $ 1,436 Residential Consumer - Consumer - Other Acquired Loans: Loan Grade: Pass $ 5,294 $ 1,565 $ 120 Special Mention Substandard 273 9 Total $ 5,567 $ 1,574 $ 120 As of December 31, 2014 Residential Consumer - Consumer - Other Originated Loans: Loan Grade: Pass $ 64,397 $ 7,778 $ 1,155 Special Mention Substandard 545 24 3 Total $ 64,942 $ 7,802 $ 1,158 Residential Consumer - Consumer - Other Acquired Loans: Loan Grade: Pass $ 6,335 $ 1,731 $ 213 Special Mention Substandard 551 1 Total $ 6,886 $ 1,732 $ 213 |
Schedule of recorded investment in non-accrual loans by class | The following table presents the recorded investment in non-accrual loans by class as of September 30, 2015 and December 31, 2014: As of September 30, 2015 December 31, 2014 (in thousands) Commercial Real Estate: Commercial Real Estate - construction $ $ Commercial Real Estate - other 370 486 Commercial 151 77 Consumer: Consumer - real estate 35 25 Consumer - other 4 Residential: Residential 681 750 Total $ 1,241 $ 1,338 |
Schedule of loans individually evaluated for impairment | The following tables present loans individually evaluated for impairment by class of loans as of September 30, 2015 and December 31, 2014: Impaired Loans For the Three For the Nine Unpaid Principal Balance Recorded Investment Related Allowance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (dollars in thousands) With no specific allowance recorded: Commercial Real Estate - Construction $ $ $ $ $ $ $ Commercial Real Estate - Other 728 728 756 11 796 36 Commercial - Other Consumer - Real Estate 14 12 12 12 Consumer - Other 6 4 5 4 Residential 526 435 442 5 449 10 With a specific allowance recorded: Commercial Real Estate - Construction Commercial Real Estate - Other 935 935 11 940 12 949 36 Commercial - Other Consumer - Real Estate 18 16 16 17 17 Consumer - Other Residential 185 176 38 178 178 1 Totals: Commercial Real Estate - Construction $ $ $ $ $ $ $ Commercial Real Estate - Other $ 1,663 $ 1,663 $ 11 $ 1,696 $ 23 $ 1,745 $ 72 Commercial - Other $ $ $ $ $ $ $ Consumer - Real Estate $ 32 $ 28 $ 16 $ 29 $ $ 29 $ Consumer - Other $ 6 $ 4 $ $ 5 $ $ 4 $ Residential $ 711 $ 611 $ 38 $ 620 $ 5 $ 627 $ 11 Impaired Loans For the Three For the Nine Unpaid Principal Balance Recorded Investment Related Allowance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (dollars in thousands) With no related allowance recorded: Commercial Real Estate - Construction $ — $ — $ — $ — $ — $ — $ — Commercial Real Estate - Other — — — — — — — Commercial - Other 1,431 1,430 — 1,444 21 1,499 63 Consumer - Real Estate 26 24 — — — — — Consumer - Other — — — 27 — 27 — Residential 781 618 — — — — — 528 1 534 4 With a specific allowance recorded: Commercial Real Estate - Construction — — — 173 — 173 — Commercial Real Estate - Other — — — 392 5 396 13 Commercial - Other 386 386 10 — — — — Consumer - Real Estate — — — — — — — Consumer - Other — — — — — — — Residential — — — 179 — 179 1 Totals: Commercial Real Estate - Construction $ — $ — $ — $ 173 $ — $ 173 $ — Commercial Real Estate - Other $ — $ — $ — $ 1,836 $ 26 $ 1,895 $ 76 Commercial - Other $ 1,817 $ 1,816 $ 10 $ — $ — $ — $ — Consumer - Real Estate $ 26 $ 24 $ — $ 27 $ — $ 27 $ — Consumer - Other $ — $ — $ — $ — $ — $ — $ — Residential $ 781 $ 618 $ — $ 707 $ 1 $ 713 $ 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 nine months ended September 30, 2015 and September 30, 2014, respectively: Allowance for Credit Losses For the Three Months Ended September 30, 2015 Commercial Construction Commercial Real Estate Commercial Consumer Real Estate Consumer Residential Unallocated Total (dollars in thousands) Allowance for credit losses: Beginning Balance $ $ 492 $ 140 $ 42 $ 18 $ 721 $ 75 $ 1,488 Charge-offs (7 ) (3 ) (5 ) (15 ) Recoveries 1 9 8 15 13 46 Provision (1 ) 55 (7 ) (15 ) (52 ) 15 (5 ) Ending Balance $ 1 $ 500 $ 195 $ 36 $ 15 $ 677 $ 90 $ 1,514 For the Nine Months Ended September 30, 2015 Commercial Construction Commercial Real Estate Commercial Consumer 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 ) (11 ) (15 ) (42 ) (71 ) Recoveries 13 74 5 28 16 46 182 Provision (20 ) 122 96 (14 ) (5 ) (196 ) (9 ) (26 ) Ending Balance $ 1 $ 500 $ 195 $ 36 $ 15 $ 677 $ 90 $ 1,514 Loan Balances Evaluated for Impairment As of September 30, 2015 Commercial Construction Commercial Real Estate Commercial Consumer Real Estate Consumer Residential Unallocated Total (dollars in thousands) Allowance for loan losses as of September 30, 2015 Ending balance: individually evaluated for impairment $ $ 11 $ $ 16 $ $ 38 $ $ 65 Ending balance: loans collectively evaluated for impairment $ 1 $ 489 $ 195 $ 20 $ 15 $ 639 $ 90 $ 1,449 Loans as of September 30, 2015 Loans: Ending Balance $ 257 $ 59,096 $ 23,387 $ 9,063 $ 1,557 $ 76,458 $ $ 169,818 Ending balance: individually evaluated for impairment $ $ 1,663 $ $ 28 $ 611 $ $ 2,302 Ending balance: loans collectively evaluated for impairment $ 257 $ 43,554 $ 20,927 $ 7,462 $ 1,436 $ 70,280 $ $ 143,916 Acquired loans with deteriorated credit quality not subject to loan loss reserve $ $ 1,892 $ 810 $ 11 $ $ 401 $ $ 3,114 Other acquired loans not subject to loan loss reserve $ $ 11,987 $ 1,650 $ 1,563 $ 120 $ 5,166 $ $ 20,486 Allowance for Credit Losses For the Three Months Ended September 30, 2014 Commercial Construction Commercial Real Estate Commercial Consumer Real Estate Consumer Residential Unallocated Total (dollars in thousands) Allowance for credit losses: Beginning Balance $ 48 $ 426 $ 72 $ 38 $ 16 $ 783 $ 104 $ 1,487 Charge-offs (225 ) (2 ) (17 ) (66 ) (310 ) Recoveries 14 1 3 12 30 Provision 2 18 (14 ) (1 ) 6 211 35 257 Ending Balance $ 50 $ 233 $ 59 $ 38 $ 5 $ 940 $ 139 $ 1,464 For the Nine Months Ended September 30, 2014 Commercial Construction Commercial Real Estate Commercial Consumer 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 (241 ) (15 ) (23 ) (111 ) (390 ) Recoveries 45 1 26 37 109 Provision 2 (15 ) (5 ) (35 ) 7 230 89 273 Ending Balance $ 50 $ 233 $ 59 $ 38 $ 5 $ 940 $ 139 $ 1,464 Loan Balances Individually Evaluated for Impairment As of September 30, 2014 Commercial Construction Commercial Real Estate Commercial Consumer Real Estate Consumer Residential Unallocated Total (dollars in thousands) Allowance for loan losses as of September 30, 2014 Ending balance: individually evaluated for impairment $ 48 $ 11 $ $ $ $ 39 $ $ 98 Ending balance: loans collectively evaluated for impairment $ 2 $ 222 $ 59 $ 38 $ 5 $ 901 $ 139 $ 1,366 Loans as of September 30, 2014 Loans: Ending Balance $ 634 $ 45,697 $ 12,578 $ 7,905 $ 1,098 $ 65,526 $ $ 133,438 Ending balance: individually evaluated for impairment $ 173 $ 1,620 $ 202 $ 39 $ $ 1,370 $ $ 3,404 Ending balance: loans collectively evaluated for impairment $ 461 $ 44,077 $ 12,376 $ 7,866 $ 1,098 $ 64,156 $ $ 130,034 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of option activity | A summary of option activity under the Plan during the nine months ended September 30, 2015 is presented below: Options Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at January 1, 2015 136,030 $ 9.54 1.4 $ Granted N/A Exercised N/A Forfeited or expired (14,400 ) $ 9.35 Outstanding at September 30, 2015 121,630 $ 9.57 0.6 $ Options Exercisable at September 30, 2015 121,630 $ 9.57 0.6 $ |
COMMITMENTS TO EXTEND CREDIT (T
COMMITMENTS TO EXTEND CREDIT (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of outstanding commitments to originate loans | At September 30, 2015, the Company had outstanding commitments to originate loans of $23.5 million. These commitments include the following: As of (in thousands) Commitments to grant loans $ 6,373 Unfunded commitments under lines of credit 16,939 Commercial and standby letters of credit 130 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities measured at fair value on a recurring basis | The following table presents information about the Companys assets and liabilities measured at fair value on a recurring basis as of September 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 September 30, 2015 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Balance at September 30, (dollars in thousands) Assets Investment securities- available-for-sale: US Treasury securities and obligations of U.S. government corporations and agencies $ 1,282 $ 33,319 $ $ 34,601 Municipal obligations 26,781 1,838 28,619 Corporate bonds & other obligations Mortgage-backed securities 67,698 67,698 Equity securities 5 5 Total investment securities - available-for-sale $ 1,287 $ 127,798 $ 1,838 $ 130,923 Assets and Liabilities Measured at Fair Value on a Recurring Basis at December 31, 2014 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Fair Value as of December 31, (dollars in thousands) Assets Investment securities - available-for-sale: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 1,279 $ 29,943 $ $ 31,222 Municipal obligations 20,872 2,262 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 $ 1,284 $ 116,422 $ 2,262 $ 119,968 |
Schedule of assets measured at fair value on a nonrecurring basis | The following table presents the changes in Level 3 assets measured at fair value on a recurring basis. Three Months Ended Nine Months Ended September 30, 2015 Available-for-Sale Securities Available-for-Sale Securities Balance, beginning of period $ 1,984 $ 2,292 Purchases Sales or maturities (117 ) (275 ) Unrealized gain (loss) (29 ) (179 ) Balance, end of period $ 1,838 $ 1,838 Three Months Ended September 30, 2014 Nine Months Ended September 30, 2014 Available-for-Sale Securities Available-for-Sale Securities Balance, beginning of period $ 1,905 $ 1,941 Purchases 360 360 Sales or maturities (122 ) (100 ) Unrealized gain (loss) 119 61 Balance, end of period $ 2,262 $ 2,262 |
Schedule of carrying value and estimated fair values of Financial Instruments | The Company has assets that, under certain conditions, are subject to measurement at fair value on a nonrecurring basis. At September 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 September 30, 2015 Balance at Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (dollars in thousands) Originated Assets: Impaired loans accounted for under FASB ASC 310-10 $ 1,663 $ $ $ 1,663 Other real estate owned -residential mortgages 527 527 Other Real estate owned - commercial 1,721 1,721 Other repossessed assets 774 774 Total assets at fair value on a non-recurring basis $ 4,685 Acquired Assets: Impaired loans accounted for under FASB ASC 310-10 $ 540 $ $ $ 540 Other real estate owned -residential mortgages Other real estate owned - commercial Other repossessed assets Total assets at fair value on a non-recurring basis $ 540 Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2014 Balance at Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (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 |
BUSINESS COMBINATIONS (Details
BUSINESS COMBINATIONS (Details Narrative) $ / shares in Units, $ in Thousands | Aug. 08, 2014$ / sharesshares | Sep. 30, 2015USD ($)Number | Dec. 31, 2014USD ($) |
Total assets | $ 338,823 | $ 325,867 | |
Bank of Alpena [Member] | |||
Number of branch offices | Number | 1 | ||
Total assets | $ 102,600 | ||
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) - Bank of Alpena [Member] $ / shares in Units, $ in Thousands | Aug. 08, 2014USD ($)$ / sharesshares |
Shares issued for Alpena Banking corporation shares | 842,965 |
Price per share | $ / shares | $ 5.59 |
Total purchase price | $ | $ 4,712 |
BUSINESS COMBINATIONS (Detail26
BUSINESS COMBINATIONS (Details 1) - USD ($) $ in Thousands | Aug. 08, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
Liabilities | |||
Bargain Purchase Gain | $ (1,982) | $ (1,982) | |
Bank of Alpena [Member] | |||
Assets | |||
Cash and cash equivalents | $ 41,650 | ||
Securities | 24,008 | ||
Loans | 33,051 | ||
Premises and Equipment | 1,667 | ||
Core Deposit Intangible | 1,392 | ||
Deferred Tax Asset | 337 | ||
Other Assets | 467 | ||
Total Assets | 102,572 | ||
Liabilities | |||
Deposits | 95,787 | ||
Other Liabilities | 91 | ||
Total Liabilities | 95,878 | ||
Net Identifable Assets Acquired | 6,694 | ||
Bargain Purchase Gain | $ (1,982) |
BUSINESS COMBINATIONS (Detail27
BUSINESS COMBINATIONS (Details 2) - Bank of Alpena [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Pro-forma results | ||||
Net interest income | $ 2,343 | $ 2,413 | $ 7,006 | $ 7,217 |
Non-interest expense | 2,578 | 2,852 | 7,508 | 7,921 |
Net income | $ 1,887 | $ 1,709 | $ 2,623 | $ 1,997 |
Net income per diluted share | $ 0.51 | $ 0.46 | $ 0.70 | $ 0.54 |
BUSINESS COMBINATIONS (Detail28
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 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 Loan [Member] | |
Impaired acquired loans | 30 |
Non-impaired acquired loans | 2,318 |
Acquired loans | 2,348 |
Commercial Real Estate Construction [Member] | |
Non-impaired acquired loans | 109 |
Acquired loans | 109 |
Consumer Other [Member] | |
Non-impaired acquired loans | 750 |
Acquired loans | $ 750 |
BUSINESS COMBINATIONS (Detail29
BUSINESS COMBINATIONS (Details 4) - Bank of Alpena [Member] $ in Thousands | Aug. 08, 2014USD ($) |
Loans acquired - contractual required payments | $ 34,517 |
Non accretable yield | (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 yield | (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 | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015USD ($)Number | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)Number | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($)Number | |
Investments, Debt and Equity Securities [Abstract] | |||||
Securities pledged as collateral | $ 26,300 | $ 26,300 | $ 35,000 | ||
Number of securities with an unrealized loss | Number | 27 | 27 | 72 | ||
Fair value of securities with an unrealized loss | $ 165 | $ 165 | $ 303 | ||
Proceeds from sale of available-for-sale securities | 1,831 | $ 218 | |||
Net gain on sale of securities | $ 2 | $ 1 | $ 4 | $ 1 |
SECURITIES (Details)
SECURITIES (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Available for Sale | ||
Available for Sale, Amortized Cost | $ 129,999 | $ 119,315 |
Available for Sale, Gross Unrealized Gains | 1,089 | 956 |
Available for Sale, Gross Unrealized (Losses) | (165) | (303) |
Available for Sale, Market Value | 130,923 | 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 | 34,339 | 31,221 |
Available for Sale, Gross Unrealized Gains | 271 | 58 |
Available for Sale, Gross Unrealized (Losses) | (9) | (57) |
Available for Sale, Market Value | 34,601 | 31,222 |
Municipal Notes [Member] | ||
Available for Sale | ||
Available for Sale, Amortized Cost | 28,243 | 22,894 |
Available for Sale, Gross Unrealized Gains | 407 | 369 |
Available for Sale, Gross Unrealized (Losses) | (31) | (129) |
Available for Sale, Market Value | 28,619 | 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 |
Mortgage Backed Securities [Member] | ||
Available for Sale | ||
Available for Sale, Amortized Cost | 67,415 | 63,648 |
Available for Sale, Gross Unrealized Gains | 408 | 515 |
Available for Sale, Gross Unrealized (Losses) | (125) | (117) |
Available for Sale, Market Value | 67,698 | 64,046 |
Equity Securities [Member] | ||
Available for Sale | ||
Available for Sale, Amortized Cost | 2 | 3 |
Available for Sale, Gross Unrealized Gains | 3 | 2 |
Available for Sale, Market Value | $ 5 | 5 |
Corporate bonds & other obligations [Member] | ||
Available for Sale | ||
Available for Sale, Amortized Cost | 1,549 | |
Available for Sale, Gross Unrealized Gains | 12 | |
Available for Sale, Market Value | $ 1,561 |
SECURITIES (Details 1)
SECURITIES (Details 1) $ in Thousands | Sep. 30, 2015USD ($) |
Amortized cost: | |
Total | $ 130,000 |
Fair Value: | |
Total | 130,923 |
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 | 335 |
Due after ten years | 155 |
Total | 746 |
Equity Securities [Member] | |
Amortized cost: | |
Total | 2 |
Fair Value: | |
Total | 5 |
Mortgage Backed Securities [Member] | |
Amortized cost: | |
Total | 67,415 |
Fair Value: | |
Total | 67,698 |
Available-for-sale Securities [Member] | |
Amortized cost: | |
Due in one year or less | 1,853 |
Due after one year through five years | 41,243 |
Due after five years through ten years | 18,302 |
Due after ten years | 1,184 |
Total | 62,582 |
Fair Value: | |
Due in one year or less | 1,864 |
Due after one year through five years | 41,625 |
Due after five years through ten years | 18,461 |
Due after ten years | 1,270 |
Total | $ 63,220 |
SECURITIES (Details 2)
SECURITIES (Details 2) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Securities available for sale | ||
Fair Value Less Than 12 Months | $ 18,492 | $ 33,101 |
Unrealized Loss Less Than 12 Months | (69) | (113) |
Fair Value Less Than 12 Months or Longer | 6,807 | 9,676 |
Unrealized Loss Less Than 12 Months or Longer | (96) | (190) |
US Treasury Securities and Obligations of US Government Corporations and Agencies [Member] | ||
Securities available for sale | ||
Fair Value Less Than 12 Months | 1,998 | 13,672 |
Unrealized Loss Less Than 12 Months | 0 | (28) |
Fair Value Less Than 12 Months or Longer | 990 | 971 |
Unrealized Loss Less Than 12 Months or Longer | (9) | (29) |
Municipal Notes [Member] | ||
Securities available for sale | ||
Fair Value Less Than 12 Months | 2,603 | 9,506 |
Unrealized Loss Less Than 12 Months | (20) | (54) |
Fair Value Less Than 12 Months or Longer | 1,963 | 4,039 |
Unrealized Loss Less Than 12 Months or Longer | (11) | (75) |
Mortgage Backed Securities [Member] | ||
Securities available for sale | ||
Fair Value Less Than 12 Months | 13,891 | 9,923 |
Unrealized Loss Less Than 12 Months | (49) | (31) |
Fair Value Less Than 12 Months or Longer | 3,854 | 4,666 |
Unrealized Loss Less Than 12 Months or Longer | $ (76) | $ (86) |
LOANS (Details)
LOANS (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Gross loans | $ 169,818 | $ 165,339 | ||||
Net deferred loan fees | (241) | (263) | ||||
Allowance for loan losses | (1,514) | $ 1,488 | (1,429) | $ 1,464 | $ 1,487 | $ 1,472 |
Total loans, net | 168,063 | 163,647 | ||||
Commercial Real Estate Construction [Member] | ||||||
Gross loans | 257 | 1,443 | ||||
Allowance for loan losses | 1 | 8 | 50 | 48 | 48 | |
Consumer Loans Secured by Real Estate [Member] | ||||||
Gross loans | 9,063 | 9,502 | ||||
Allowance for loan losses | 15 | 18 | 19 | 5 | 16 | 21 |
Consumer Other [Member] | ||||||
Gross loans | 1,557 | 1,403 | ||||
Consumer Real Estate [Member] | ||||||
Gross loans | 10,620 | 10,905 | ||||
Allowance for loan losses | 36 | 42 | 33 | 38 | 38 | 62 |
Commercial Loans [Member] | ||||||
Gross loans | 82,740 | 82,606 | ||||
Allowance for loan losses | 195 | 140 | 94 | 59 | 72 | 63 |
Commercial Non Real Estate [Member] | ||||||
Gross loans | 23,387 | 19,000 | ||||
Commercial Real Estate [Member] | ||||||
Gross loans | 59,096 | 62,163 | ||||
Allowance for loan losses | 500 | 492 | 307 | 233 | 426 | 444 |
One-to-Four Family Residential Real Estate [Member] | ||||||
Gross loans | 76,458 | 71,828 | ||||
Allowance for loan losses | $ 677 | $ 721 | $ 869 | $ 940 | $ 783 | $ 784 |
LOANS (Details 1)
LOANS (Details 1) - Acquired Loans [Member] $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Beginning of year | $ (1,440) |
Accretion of discount for credit spread | 57 |
Loans paid off | 6 |
Loans charged off | 113 |
End of year | (1,264) |
Impaired Loans Non-Accretable [Member] | |
Beginning of year | (1,232) |
Transfer from non-accreatable to accreatable | 25 |
Loans paid off | 6 |
Loans charged off | 113 |
End of year | (1,088) |
Non-Impaired Loans Accretable [Member] | |
Beginning of year | (208) |
Accretion of discount for credit spread | 57 |
Transfer from non-accreatable to accreatable | (25) |
End of year | $ (176) |
LOANS (Details 2)
LOANS (Details 2) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Gross loans | $ 169,818 | $ 165,339 |
Consumer Loans Secured by Real Estate [Member] | ||
Gross loans | 9,063 | 9,502 |
Commercial Loans [Member] | ||
Gross loans | 82,740 | 82,606 |
Commercial Non Real Estate [Member] | ||
Gross loans | 23,387 | 19,000 |
Commercial Real Estate [Member] | ||
Gross loans | 59,096 | 62,163 |
Commercial Real Estate Construction [Member] | ||
Gross loans | 257 | 1,443 |
One-to-Four Family Residential Real Estate [Member] | ||
Gross loans | 76,458 | 71,828 |
Consumer Other [Member] | ||
Gross loans | 1,557 | 1,403 |
Consumer Real Estate [Member] | ||
Gross loans | 10,620 | 10,905 |
Acquired Loans [Member] | ||
Total past due | 2,059 | 1,277 |
Current | 21,540 | 27,865 |
Gross loans | 23,599 | 29,142 |
Recorded investment > 90 days and accruing | 397 | 225 |
Acquired Loans [Member] | Greater than 90 Days Past Due [Member] | ||
Total past due | 979 | 658 |
Acquired Loans [Member] | 30 - 59 Days Past Due [Member] | ||
Total past due | 545 | 395 |
Acquired Loans [Member] | 60 - 89 Days Past Due [Member] | ||
Total past due | 535 | 224 |
Acquired Loans [Member] | Commercial Non Real Estate [Member] | ||
Total past due | 827 | 144 |
Current | 1,633 | 4,217 |
Gross loans | 2,460 | 4,361 |
Recorded investment > 90 days and accruing | 300 | |
Acquired Loans [Member] | Commercial Non Real Estate [Member] | Greater than 90 Days Past Due [Member] | ||
Total past due | 451 | 104 |
Acquired Loans [Member] | Commercial Non Real Estate [Member] | 30 - 59 Days Past Due [Member] | ||
Total past due | 17 | |
Acquired Loans [Member] | Commercial Non Real Estate [Member] | 60 - 89 Days Past Due [Member] | ||
Total past due | 359 | 40 |
Acquired Loans [Member] | One-to-Four Family Residential Real Estate [Member] | ||
Total past due | 571 | 664 |
Current | 4,996 | 6,222 |
Gross loans | 5,567 | 6,886 |
Recorded investment > 90 days and accruing | 225 | |
Acquired Loans [Member] | One-to-Four Family Residential Real Estate [Member] | Greater than 90 Days Past Due [Member] | ||
Total past due | 265 | 461 |
Acquired Loans [Member] | One-to-Four Family Residential Real Estate [Member] | 30 - 59 Days Past Due [Member] | ||
Total past due | 306 | 147 |
Acquired Loans [Member] | One-to-Four Family Residential Real Estate [Member] | 60 - 89 Days Past Due [Member] | ||
Total past due | 56 | |
Acquired Loans [Member] | Consumer Other [Member] | ||
Current | 120 | 213 |
Gross loans | 120 | 213 |
Acquired Loans [Member] | Commercial Real Estate Other [Member] | ||
Total past due | 657 | 346 |
Current | 13,222 | 15,604 |
Gross loans | 13,878 | 15,950 |
Recorded investment > 90 days and accruing | 97 | |
Acquired Loans [Member] | Commercial Real Estate Other [Member] | Greater than 90 Days Past Due [Member] | ||
Total past due | 259 | 93 |
Acquired Loans [Member] | Commercial Real Estate Other [Member] | 30 - 59 Days Past Due [Member] | ||
Total past due | 222 | 125 |
Acquired Loans [Member] | Commercial Real Estate Other [Member] | 60 - 89 Days Past Due [Member] | ||
Total past due | 176 | 128 |
Acquired Loans [Member] | Consumer Real Estate [Member] | ||
Total past due | 4 | 123 |
Current | 1,569 | 1,609 |
Gross loans | 1,574 | 1,732 |
Acquired Loans [Member] | Consumer Real Estate [Member] | Greater than 90 Days Past Due [Member] | ||
Total past due | 4 | |
Acquired Loans [Member] | Consumer Real Estate [Member] | 30 - 59 Days Past Due [Member] | ||
Total past due | 123 | |
Orginated Loans and Leases [Member] | ||
Total past due | 2,806 | 2,945 |
Current | 143,413 | 133,252 |
Gross loans | 146,219 | 136,197 |
Recorded investment > 90 days and accruing | 125 | 90 |
Orginated Loans and Leases [Member] | Greater than 90 Days Past Due [Member] | ||
Total past due | 235 | 396 |
Orginated Loans and Leases [Member] | 30 - 59 Days Past Due [Member] | ||
Total past due | 2,079 | 1,604 |
Orginated Loans and Leases [Member] | 60 - 89 Days Past Due [Member] | ||
Total past due | 492 | 945 |
Orginated Loans and Leases [Member] | Commercial Non Real Estate [Member] | ||
Total past due | 40 | |
Current | 20,887 | 14,544 |
Gross loans | 20,927 | 14,544 |
Orginated Loans and Leases [Member] | Commercial Non Real Estate [Member] | 30 - 59 Days Past Due [Member] | ||
Total past due | 29 | |
Orginated Loans and Leases [Member] | Commercial Non Real Estate [Member] | 60 - 89 Days Past Due [Member] | ||
Total past due | 11 | |
Orginated Loans and Leases [Member] | Commercial Real Estate Construction [Member] | ||
Current | 257 | 1,443 |
Gross loans | 257 | 1,443 |
Orginated Loans and Leases [Member] | One-to-Four Family Residential Real Estate [Member] | ||
Total past due | 1,985 | 2,616 |
Current | 68,906 | 62,326 |
Gross loans | 70,891 | 64,942 |
Recorded investment > 90 days and accruing | 125 | 87 |
Orginated Loans and Leases [Member] | One-to-Four Family Residential Real Estate [Member] | Greater than 90 Days Past Due [Member] | ||
Total past due | 231 | 386 |
Orginated Loans and Leases [Member] | One-to-Four Family Residential Real Estate [Member] | 30 - 59 Days Past Due [Member] | ||
Total past due | 1,273 | 1,484 |
Orginated Loans and Leases [Member] | One-to-Four Family Residential Real Estate [Member] | 60 - 89 Days Past Due [Member] | ||
Total past due | 481 | 746 |
Orginated Loans and Leases [Member] | Consumer Other [Member] | ||
Total past due | 4 | 6 |
Current | 1,433 | 1,152 |
Gross loans | 1,436 | 1,158 |
Recorded investment > 90 days and accruing | 3 | |
Orginated Loans and Leases [Member] | Consumer Other [Member] | Greater than 90 Days Past Due [Member] | ||
Total past due | 4 | 3 |
Orginated Loans and Leases [Member] | Consumer Other [Member] | 30 - 59 Days Past Due [Member] | ||
Total past due | 3 | |
Orginated Loans and Leases [Member] | Commercial Real Estate Other [Member] | ||
Total past due | 640 | 205 |
Current | 44,577 | 46,103 |
Gross loans | 45,217 | 46,308 |
Orginated Loans and Leases [Member] | Commercial Real Estate Other [Member] | 30 - 59 Days Past Due [Member] | ||
Total past due | 640 | 10 |
Orginated Loans and Leases [Member] | Commercial Real Estate Other [Member] | 60 - 89 Days Past Due [Member] | ||
Total past due | 195 | |
Orginated Loans and Leases [Member] | Consumer Real Estate [Member] | ||
Total past due | 137 | 118 |
Current | 7,353 | 7,684 |
Gross loans | 7,490 | 7,802 |
Orginated Loans and Leases [Member] | Consumer Real Estate [Member] | Greater than 90 Days Past Due [Member] | ||
Total past due | 7 | |
Orginated Loans and Leases [Member] | Consumer Real Estate [Member] | 30 - 59 Days Past Due [Member] | ||
Total past due | $ 137 | 107 |
Orginated Loans and Leases [Member] | Consumer Real Estate [Member] | 60 - 89 Days Past Due [Member] | ||
Total past due | $ 4 |
LOANS (Details 3)
LOANS (Details 3) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Gross loans | $ 169,818 | $ 165,339 |
Consumer Real Estate [Member] | ||
Gross loans | 10,620 | 10,905 |
Commercial Real Estate Construction [Member] | ||
Gross loans | 257 | 1,443 |
One-to-Four Family Residential Real Estate [Member] | ||
Gross loans | 76,458 | 71,828 |
Commercial Real Estate [Member] | ||
Gross loans | 59,096 | 62,163 |
Commercial Non Real Estate [Member] | ||
Gross loans | 23,387 | 19,000 |
Commercial Loans [Member] | ||
Gross loans | 82,740 | 82,606 |
Consumer Other [Member] | ||
Gross loans | 1,557 | 1,403 |
Consumer Loans Secured by Real Estate [Member] | ||
Gross loans | 9,063 | 9,502 |
Acquired Loans [Member] | ||
Gross loans | 23,599 | 29,142 |
Acquired Loans [Member] | Consumer Loan [Member] | Pass [Member] | ||
Gross loans | 120 | 213 |
Acquired Loans [Member] | Consumer Real Estate [Member] | ||
Gross loans | 1,574 | 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 | 1,565 | 1,731 |
Acquired Loans [Member] | One-to-Four Family Residential Real Estate [Member] | ||
Gross loans | 5,567 | 6,886 |
Acquired Loans [Member] | One-to-Four Family Residential Real Estate [Member] | Pass [Member] | ||
Gross loans | 5,294 | 6,335 |
Acquired Loans [Member] | One-to-Four Family Residential Real Estate [Member] | Risk Grade 6 (Substandard) [Member] | ||
Gross loans | 273 | 551 |
Acquired Loans [Member] | Commercial Non Real Estate [Member] | ||
Gross loans | 2,460 | 4,361 |
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 8 (Loss) [Member] | ||
Gross loans | 0 | 0 |
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 5 (Other Assets Especially Mentioned) [Member] | ||
Gross loans | 375 | 1,150 |
Acquired Loans [Member] | Commercial Non Real Estate [Member] | Risk Grade 4 (Acceptable) and Risk Grade 5 (Other Assets Especially Mentioned) [Member] | ||
Gross loans | 7 | 21 |
Acquired Loans [Member] | Commercial Non Real Estate [Member] | Risk Grade 4 (Acceptable) [Member] | ||
Gross loans | 545 | 970 |
Acquired Loans [Member] | Commercial Non Real Estate [Member] | Risk Grade 3 (Satisfactory) [Member] | ||
Gross loans | 392 | 876 |
Acquired Loans [Member] | Commercial Non Real Estate [Member] | Risk Grade 1 (Excellent) and Grade 2 (Good) [Member] | ||
Gross loans | 690 | 1,188 |
Acquired Loans [Member] | Consumer Other [Member] | ||
Gross loans | 120 | 213 |
Acquired Loans [Member] | Commercial Real Estate Other [Member] | ||
Gross loans | 13,878 | 15,950 |
Acquired Loans [Member] | Commercial Real Estate Other [Member] | Risk Grade 6 (Substandard) [Member] | ||
Gross loans | 761 | 547 |
Acquired Loans [Member] | Commercial Real Estate Other [Member] | Risk Grade 8 (Loss) [Member] | ||
Gross loans | 0 | |
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 5 (Other Assets Especially Mentioned) [Member] | ||
Gross loans | 694 | 1,176 |
Acquired Loans [Member] | Commercial Real Estate Other [Member] | Risk Grade 4 (Acceptable) and Risk Grade 5 (Other Assets Especially Mentioned) [Member] | ||
Gross loans | 461 | 337 |
Acquired Loans [Member] | Commercial Real Estate Other [Member] | Risk Grade 4 (Acceptable) [Member] | ||
Gross loans | 9,598 | 10,905 |
Acquired Loans [Member] | Commercial Real Estate Other [Member] | Risk Grade 3 (Satisfactory) [Member] | ||
Gross loans | 2,128 | 2,696 |
Acquired Loans [Member] | Commercial Real Estate Other [Member] | Risk Grade 1 (Excellent) and Grade 2 (Good) [Member] | ||
Gross loans | 236 | 280 |
Orginated Loans and Leases [Member] | ||
Gross loans | 146,219 | 136,197 |
Orginated Loans and Leases [Member] | Consumer Loan [Member] | Pass [Member] | ||
Gross loans | 1,432 | 1,155 |
Orginated Loans and Leases [Member] | Consumer Loan [Member] | Risk Grade 6 (Substandard) [Member] | ||
Gross loans | 4 | 3 |
Orginated Loans and Leases [Member] | Consumer Real Estate [Member] | ||
Gross loans | 7,490 | 7,802 |
Orginated Loans and Leases [Member] | Consumer Real Estate [Member] | Pass [Member] | ||
Gross loans | 7,462 | 7,778 |
Orginated Loans and Leases [Member] | Consumer Real Estate [Member] | Risk Grade 6 (Substandard) [Member] | ||
Gross loans | 28 | 24 |
Orginated Loans and Leases [Member] | Commercial Real Estate Construction [Member] | ||
Gross loans | 257 | 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 Construction [Member] | Risk Grade 4 (Acceptable) [Member] | ||
Gross loans | 237 | 1,443 |
Orginated Loans and Leases [Member] | One-to-Four Family Residential Real Estate [Member] | ||
Gross loans | 70,891 | 64,942 |
Orginated Loans and Leases [Member] | One-to-Four Family Residential Real Estate [Member] | Pass [Member] | ||
Gross loans | 70,350 | 64,397 |
Orginated Loans and Leases [Member] | One-to-Four Family Residential Real Estate [Member] | Risk Grade 6 (Substandard) [Member] | ||
Gross loans | 541 | 545 |
Orginated Loans and Leases [Member] | Commercial Non Real Estate [Member] | ||
Gross loans | 20,927 | 14,544 |
Orginated Loans and Leases [Member] | Commercial Non Real Estate [Member] | Risk Grade 6 (Substandard) [Member] | ||
Gross loans | 1,816 | |
Orginated Loans and Leases [Member] | Commercial Non Real Estate [Member] | Risk Grade 5 (Other Assets Especially Mentioned) [Member] | ||
Gross loans | 224 | 635 |
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 | 357 | 252 |
Orginated Loans and Leases [Member] | Commercial Non Real Estate [Member] | Risk Grade 4 (Acceptable) [Member] | ||
Gross loans | 7,336 | 7,538 |
Orginated Loans and Leases [Member] | Commercial Non Real Estate [Member] | Risk Grade 3 (Satisfactory) [Member] | ||
Gross loans | 10,852 | 6,088 |
Orginated Loans and Leases [Member] | Commercial Non Real Estate [Member] | Risk Grade 1 (Excellent) and Grade 2 (Good) [Member] | ||
Gross loans | 342 | 31 |
Orginated Loans and Leases [Member] | Consumer Other [Member] | ||
Gross loans | 1,436 | 1,158 |
Orginated Loans and Leases [Member] | Commercial Real Estate Other [Member] | ||
Gross loans | 45,217 | 46,308 |
Orginated Loans and Leases [Member] | Commercial Real Estate Other [Member] | Risk Grade 6 (Substandard) [Member] | ||
Gross loans | 4,631 | 1,393 |
Orginated Loans and Leases [Member] | Commercial Real Estate Other [Member] | Risk Grade 5 (Other Assets Especially Mentioned) [Member] | ||
Gross loans | 2,595 | 6,040 |
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 | 3,268 | 3,553 |
Orginated Loans and Leases [Member] | Commercial Real Estate Other [Member] | Risk Grade 4 (Acceptable) [Member] | ||
Gross loans | 21,701 | 21,757 |
Orginated Loans and Leases [Member] | Commercial Real Estate Other [Member] | Risk Grade 3 (Satisfactory) [Member] | ||
Gross loans | 12,364 | $ 13,565 |
Orginated Loans and Leases [Member] | Commercial Real Estate Other [Member] | Risk Grade 1 (Excellent) and Grade 2 (Good) [Member] | ||
Gross loans | $ 658 |
LOANS (Details 4)
LOANS (Details 4) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Gross loans | $ 169,818 | $ 165,339 |
Consumer Real Estate [Member] | ||
Gross loans | 10,620 | 10,905 |
Commercial Real Estate Construction [Member] | ||
Gross loans | 257 | 1,443 |
One-to-Four Family Residential Real Estate [Member] | ||
Gross loans | 76,458 | 71,828 |
Commercial Real Estate [Member] | ||
Gross loans | 59,096 | 62,163 |
Commercial Non Real Estate [Member] | ||
Gross loans | 23,387 | 19,000 |
Commercial Loans [Member] | ||
Gross loans | 82,740 | 82,606 |
Consumer Other [Member] | ||
Gross loans | 1,557 | 1,403 |
Consumer Loans Secured by Real Estate [Member] | ||
Gross loans | 9,063 | 9,502 |
Acquired Loans [Member] | ||
Gross loans | 23,599 | 29,142 |
Acquired Loans [Member] | Consumer Loan [Member] | Pass [Member] | ||
Gross loans | 120 | 213 |
Acquired Loans [Member] | Consumer Real Estate [Member] | ||
Gross loans | 1,574 | 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 | 1,565 | 1,731 |
Acquired Loans [Member] | One-to-Four Family Residential Real Estate [Member] | ||
Gross loans | 5,567 | 6,886 |
Acquired Loans [Member] | One-to-Four Family Residential Real Estate [Member] | Pass [Member] | ||
Gross loans | 5,294 | 6,335 |
Acquired Loans [Member] | One-to-Four Family Residential Real Estate [Member] | Risk Grade 6 (Substandard) [Member] | ||
Gross loans | 273 | 551 |
Acquired Loans [Member] | Commercial Non Real Estate [Member] | ||
Gross loans | 2,460 | 4,361 |
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 8 (Loss) [Member] | ||
Gross loans | 0 | 0 |
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 5 (Other Assets Especially Mentioned) [Member] | ||
Gross loans | 375 | 1,150 |
Acquired Loans [Member] | Commercial Non Real Estate [Member] | Risk Grade 4 (Acceptable) and Risk Grade 5 (Other Assets Especially Mentioned) [Member] | ||
Gross loans | 7 | 21 |
Acquired Loans [Member] | Commercial Non Real Estate [Member] | Risk Grade 4 (Acceptable) [Member] | ||
Gross loans | 545 | 970 |
Acquired Loans [Member] | Commercial Non Real Estate [Member] | Risk Grade 3 (Satisfactory) [Member] | ||
Gross loans | 392 | 876 |
Acquired Loans [Member] | Commercial Non Real Estate [Member] | Risk Grade 1 (Excellent) and Grade 2 (Good) [Member] | ||
Gross loans | 690 | 1,188 |
Acquired Loans [Member] | Consumer Other [Member] | ||
Gross loans | 120 | 213 |
Acquired Loans [Member] | Commercial Real Estate Other [Member] | ||
Gross loans | 13,878 | 15,950 |
Acquired Loans [Member] | Commercial Real Estate Other [Member] | Risk Grade 6 (Substandard) [Member] | ||
Gross loans | 761 | 547 |
Acquired Loans [Member] | Commercial Real Estate Other [Member] | Risk Grade 8 (Loss) [Member] | ||
Gross loans | 0 | |
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 5 (Other Assets Especially Mentioned) [Member] | ||
Gross loans | 694 | 1,176 |
Acquired Loans [Member] | Commercial Real Estate Other [Member] | Risk Grade 4 (Acceptable) and Risk Grade 5 (Other Assets Especially Mentioned) [Member] | ||
Gross loans | 461 | 337 |
Acquired Loans [Member] | Commercial Real Estate Other [Member] | Risk Grade 4 (Acceptable) [Member] | ||
Gross loans | 9,598 | 10,905 |
Acquired Loans [Member] | Commercial Real Estate Other [Member] | Risk Grade 3 (Satisfactory) [Member] | ||
Gross loans | 2,128 | 2,696 |
Acquired Loans [Member] | Commercial Real Estate Other [Member] | Risk Grade 1 (Excellent) and Grade 2 (Good) [Member] | ||
Gross loans | 236 | 280 |
Orginated Loans and Leases [Member] | ||
Gross loans | 146,219 | 136,197 |
Orginated Loans and Leases [Member] | Consumer Loan [Member] | Pass [Member] | ||
Gross loans | 1,432 | 1,155 |
Orginated Loans and Leases [Member] | Consumer Loan [Member] | Risk Grade 6 (Substandard) [Member] | ||
Gross loans | 4 | 3 |
Orginated Loans and Leases [Member] | Consumer Real Estate [Member] | ||
Gross loans | 7,490 | 7,802 |
Orginated Loans and Leases [Member] | Consumer Real Estate [Member] | Pass [Member] | ||
Gross loans | 7,462 | 7,778 |
Orginated Loans and Leases [Member] | Consumer Real Estate [Member] | Risk Grade 6 (Substandard) [Member] | ||
Gross loans | 28 | 24 |
Orginated Loans and Leases [Member] | Commercial Real Estate Construction [Member] | ||
Gross loans | 257 | 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 Construction [Member] | Risk Grade 4 (Acceptable) [Member] | ||
Gross loans | 237 | 1,443 |
Orginated Loans and Leases [Member] | One-to-Four Family Residential Real Estate [Member] | ||
Gross loans | 70,891 | 64,942 |
Orginated Loans and Leases [Member] | One-to-Four Family Residential Real Estate [Member] | Pass [Member] | ||
Gross loans | 70,350 | 64,397 |
Orginated Loans and Leases [Member] | One-to-Four Family Residential Real Estate [Member] | Risk Grade 6 (Substandard) [Member] | ||
Gross loans | 541 | 545 |
Orginated Loans and Leases [Member] | Commercial Non Real Estate [Member] | ||
Gross loans | 20,927 | 14,544 |
Orginated Loans and Leases [Member] | Commercial Non Real Estate [Member] | Risk Grade 6 (Substandard) [Member] | ||
Gross loans | 1,816 | |
Orginated Loans and Leases [Member] | Commercial Non Real Estate [Member] | Risk Grade 5 (Other Assets Especially Mentioned) [Member] | ||
Gross loans | 224 | 635 |
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 | 357 | 252 |
Orginated Loans and Leases [Member] | Commercial Non Real Estate [Member] | Risk Grade 4 (Acceptable) [Member] | ||
Gross loans | 7,336 | 7,538 |
Orginated Loans and Leases [Member] | Commercial Non Real Estate [Member] | Risk Grade 3 (Satisfactory) [Member] | ||
Gross loans | 10,852 | 6,088 |
Orginated Loans and Leases [Member] | Commercial Non Real Estate [Member] | Risk Grade 1 (Excellent) and Grade 2 (Good) [Member] | ||
Gross loans | 342 | 31 |
Orginated Loans and Leases [Member] | Consumer Other [Member] | ||
Gross loans | 1,436 | 1,158 |
Orginated Loans and Leases [Member] | Commercial Real Estate Other [Member] | ||
Gross loans | 45,217 | 46,308 |
Orginated Loans and Leases [Member] | Commercial Real Estate Other [Member] | Risk Grade 6 (Substandard) [Member] | ||
Gross loans | 4,631 | 1,393 |
Orginated Loans and Leases [Member] | Commercial Real Estate Other [Member] | Risk Grade 5 (Other Assets Especially Mentioned) [Member] | ||
Gross loans | 2,595 | 6,040 |
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 | 3,268 | 3,553 |
Orginated Loans and Leases [Member] | Commercial Real Estate Other [Member] | Risk Grade 4 (Acceptable) [Member] | ||
Gross loans | 21,701 | 21,757 |
Orginated Loans and Leases [Member] | Commercial Real Estate Other [Member] | Risk Grade 3 (Satisfactory) [Member] | ||
Gross loans | 12,364 | $ 13,565 |
Orginated Loans and Leases [Member] | Commercial Real Estate Other [Member] | Risk Grade 1 (Excellent) and Grade 2 (Good) [Member] | ||
Gross loans | $ 658 |
LOANS (Details 5)
LOANS (Details 5) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Recorded investment in non-accrual loans | $ 1,241 | $ 1,338 |
Commercial Real Estate Other [Member] | ||
Recorded investment in non-accrual loans | 370 | 486 |
Consumer Other [Member] | ||
Recorded investment in non-accrual loans | 4 | |
Consumer Real Estate [Member] | ||
Recorded investment in non-accrual loans | 35 | 25 |
Commercial Loans [Member] | ||
Recorded investment in non-accrual loans | 151 | 77 |
One-to-Four Family Residential Real Estate [Member] | ||
Recorded investment in non-accrual loans | $ 681 | $ 750 |
LOANS (Details 6)
LOANS (Details 6) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
One-to-Four Family Residential Real Estate [Member] | |||||
With no related allowance recorded: | |||||
Unpaid Principal | $ 526 | $ 526 | $ 781 | ||
Recorded Investment | 435 | 435 | 618 | ||
Average Recorded Investment | 442 | $ 528 | 449 | $ 534 | |
Interest Income Recognized | 5 | 1 | 10 | 4 | |
With an allowance recorded: | |||||
Unpaid Principal | 185 | 185 | |||
Recorded Investment | 176 | 176 | |||
Related allowance | 38 | 38 | |||
Average Recorded Investment | 178 | 179 | 178 | 179 | |
Interest Income Recognized | 1 | 1 | |||
Total | |||||
Unpaid Principal | 711 | 711 | 781 | ||
Recorded Investment | 611 | 611 | 618 | ||
Average Recorded Investment | 620 | 707 | 627 | 713 | |
Interest income recognized | 5 | 1 | 11 | 5 | |
Consumer Real Estate [Member] | |||||
With no related allowance recorded: | |||||
Unpaid Principal | 14 | 14 | 26 | ||
Recorded Investment | 12 | 12 | 24 | ||
Average Recorded Investment | 12 | 27 | 12 | 27 | |
With an allowance recorded: | |||||
Unpaid Principal | 18 | 18 | |||
Recorded Investment | 16 | 16 | |||
Related allowance | 16 | 16 | |||
Average Recorded Investment | 17 | 17 | |||
Total | |||||
Unpaid Principal | 32 | 32 | 26 | ||
Recorded Investment | 28 | 28 | 24 | ||
Average Recorded Investment | 29 | 27 | 29 | 27 | |
Consumer Other [Member] | |||||
With no related allowance recorded: | |||||
Unpaid Principal | 6 | 6 | |||
Recorded Investment | 4 | 4 | |||
Average Recorded Investment | 5 | 4 | |||
Total | |||||
Unpaid Principal | 6 | 6 | |||
Recorded Investment | 4 | 4 | |||
Average Recorded Investment | 5 | 4 | |||
Commercial Real Estate Other [Member] | |||||
With no related allowance recorded: | |||||
Unpaid Principal | 728 | 728 | |||
Recorded Investment | 728 | 728 | |||
Average Recorded Investment | 756 | 1,444 | 796 | 1,499 | |
Interest Income Recognized | 11 | 21 | 36 | 63 | |
With an allowance recorded: | |||||
Unpaid Principal | 935 | 935 | |||
Recorded Investment | 935 | 935 | |||
Related allowance | 11 | 11 | |||
Average Recorded Investment | 940 | 392 | 949 | 396 | |
Interest Income Recognized | 12 | 5 | 36 | 13 | |
Total | |||||
Unpaid Principal | 1,663 | 1,663 | |||
Recorded Investment | 1,663 | 1,663 | |||
Average Recorded Investment | 1,696 | 1,836 | 1,745 | 1,895 | |
Interest income recognized | $ 23 | 26 | $ 72 | 76 | |
Commercial Real Estate Construction [Member] | |||||
With an allowance recorded: | |||||
Average Recorded Investment | 173 | 173 | |||
Total | |||||
Average Recorded Investment | 173 | 173 | |||
Interest income recognized | $ 0 | $ 0 | |||
Commercial Non Real Estate [Member] | |||||
With no related allowance recorded: | |||||
Unpaid Principal | 1,431 | ||||
Recorded Investment | 1,430 | ||||
With an allowance recorded: | |||||
Unpaid Principal | 386 | ||||
Recorded Investment | 386 | ||||
Related allowance | 10 | ||||
Total | |||||
Unpaid Principal | 1,817 | ||||
Recorded Investment | $ 1,816 |
LOANS (Details 7)
LOANS (Details 7) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Allowance for loan losses: | ||||
Beginning Balance | $ 1,488 | $ 1,487 | $ (1,429) | $ 1,472 |
Charge offs | (15) | (310) | (71) | (390) |
Recoveries | 46 | 30 | 182 | 109 |
Provision | (4) | 257 | (26) | 273 |
Ending Balance | (1,514) | 1,464 | (1,514) | 1,464 |
Individually evaluated for impairment | 65 | 98 | 65 | 98 |
Collectively evaluated for impairment | 1,449 | 1,366 | 1,449 | 1,366 |
Loans receivable (gross): | ||||
Gross loans | 169,818 | 133,438 | 169,818 | 133,438 |
Individually evaluated for impairment | 2,302 | 3,404 | 2,302 | 3,404 |
Collectively evaluated for impairment | 143,916 | 130,034 | 143,916 | 130,034 |
Acquired loans not subject to loan loss reserve | 3,114 | 3,114 | ||
Other acquired loans not subject to loan loss reserve | 20,486 | |||
Commercial Real Estate Construction [Member] | ||||
Allowance for loan losses: | ||||
Beginning Balance | 48 | 8 | 48 | |
Recoveries | 1 | 13 | ||
Provision | 2 | (20) | 2 | |
Ending Balance | 1 | 50 | 1 | 50 |
Individually evaluated for impairment | 48 | 48 | ||
Collectively evaluated for impairment | 1 | 2 | 1 | 2 |
Loans receivable (gross): | ||||
Gross loans | 257 | 634 | 257 | 634 |
Individually evaluated for impairment | 173 | 173 | ||
Collectively evaluated for impairment | 257 | 461 | 257 | 461 |
Consumer Real Estate [Member] | ||||
Allowance for loan losses: | ||||
Beginning Balance | 42 | 38 | 33 | 62 |
Charge offs | (7) | (2) | (11) | (15) |
Recoveries | 8 | 3 | 28 | 26 |
Provision | (7) | (1) | (14) | (35) |
Ending Balance | 36 | 38 | 36 | 38 |
Individually evaluated for impairment | 16 | 16 | ||
Collectively evaluated for impairment | 20 | 38 | 20 | 38 |
Loans receivable (gross): | ||||
Gross loans | 9,063 | 7,905 | 9,063 | 7,905 |
Individually evaluated for impairment | 28 | 39 | 28 | 39 |
Collectively evaluated for impairment | 7,462 | 7,866 | 7,462 | 7,866 |
Acquired loans not subject to loan loss reserve | 11 | 11 | ||
Other acquired loans not subject to loan loss reserve | 1,563 | |||
Commercial Real Estate [Member] | ||||
Allowance for loan losses: | ||||
Beginning Balance | 492 | 426 | 307 | 444 |
Charge offs | (225) | (3) | (241) | |
Recoveries | 9 | 14 | 74 | 45 |
Provision | (1) | 18 | 122 | (15) |
Ending Balance | 500 | 233 | 500 | 233 |
Individually evaluated for impairment | 11 | 11 | 11 | 11 |
Collectively evaluated for impairment | 489 | 222 | 489 | 222 |
Loans receivable (gross): | ||||
Gross loans | 59,096 | 45,697 | 59,096 | 45,697 |
Individually evaluated for impairment | 1,663 | 1,620 | 1,663 | 1,620 |
Collectively evaluated for impairment | 43,554 | 44,077 | 43,554 | 44,077 |
Acquired loans not subject to loan loss reserve | 1,892 | 1,892 | ||
Other acquired loans not subject to loan loss reserve | 11,987 | |||
One-to-Four Family Residential Real Estate [Member] | ||||
Allowance for loan losses: | ||||
Beginning Balance | 721 | 783 | 869 | 784 |
Charge offs | (5) | (66) | (42) | (111) |
Recoveries | 13 | 12 | 46 | 37 |
Provision | (52) | 211 | (196) | 230 |
Ending Balance | 677 | 940 | 677 | 940 |
Individually evaluated for impairment | 38 | 39 | 38 | 39 |
Collectively evaluated for impairment | 639 | 901 | 639 | 901 |
Loans receivable (gross): | ||||
Gross loans | 76,458 | 65,526 | 76,458 | 65,526 |
Individually evaluated for impairment | 611 | 1,370 | 611 | 1,370 |
Collectively evaluated for impairment | 70,280 | 64,156 | 70,280 | 64,156 |
Acquired loans not subject to loan loss reserve | 401 | 401 | ||
Other acquired loans not subject to loan loss reserve | 5,166 | |||
Unallocated Financing Receivables [Member] | ||||
Allowance for loan losses: | ||||
Beginning Balance | 75 | 104 | 99 | 50 |
Provision | 15 | 35 | (9) | 89 |
Ending Balance | 90 | 139 | 90 | 139 |
Collectively evaluated for impairment | 90 | 139 | 90 | 139 |
Commercial Loans [Member] | ||||
Allowance for loan losses: | ||||
Beginning Balance | 140 | 72 | 94 | 63 |
Recoveries | 1 | 5 | 1 | |
Provision | 55 | (14) | 96 | (5) |
Ending Balance | 195 | 59 | 195 | 59 |
Collectively evaluated for impairment | 195 | 59 | 195 | 59 |
Loans receivable (gross): | ||||
Gross loans | 23,387 | 12,578 | 23,387 | 12,578 |
Individually evaluated for impairment | 202 | 202 | ||
Collectively evaluated for impairment | 20,927 | 12,376 | 20,927 | 12,376 |
Acquired loans not subject to loan loss reserve | 810 | 810 | ||
Other acquired loans not subject to loan loss reserve | 1,650 | |||
Consumer Loans Secured by Real Estate [Member] | ||||
Allowance for loan losses: | ||||
Beginning Balance | 18 | 16 | 19 | 21 |
Charge offs | (3) | (17) | (15) | (23) |
Recoveries | 15 | 16 | ||
Provision | (15) | 6 | (5) | 7 |
Ending Balance | 15 | 5 | 15 | 5 |
Collectively evaluated for impairment | 15 | 5 | 15 | 5 |
Loans receivable (gross): | ||||
Gross loans | 1,557 | 1,098 | 1,557 | 1,098 |
Collectively evaluated for impairment | $ 1,436 | $ 1,098 | 1,436 | $ 1,098 |
Other acquired loans not subject to loan loss reserve | $ 120 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details Narrative) | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Closing stock price (in dollars per share) | $ / shares | $ 6.29 |
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) | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Number of Options | |
Outstanding, Beginning balance | 136,030 |
Forfeited or expired | (14,400) |
Outstanding, Ending balance | 121,630 |
Options Exercisable | 121,630 |
Weighted Average Exercise Price | |
Outstanding, Beginning Balance | $ / shares | $ 9.54 |
Forfeited or expired | $ / shares | 9.35 |
Outstanding, Ending Balance | $ / shares | 9.57 |
Options Exercisable | $ / shares | $ 9.57 |
Weighted Average Remaining Contractual Term | |
Outstanding, Beginning | 1 year 4 months 24 days |
Outstanding, ending | 7 months 6 days |
Options exercisable | 7 months 6 days |
COMMITMENTS TO EXTEND CREDIT (D
COMMITMENTS TO EXTEND CREDIT (Details Narrative) $ in Thousands | Sep. 30, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Obligations to extend credit for loan commitments | $ 23,500 |
COMMITMENTS TO EXTEND CREDIT 45
COMMITMENTS TO EXTEND CREDIT (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Commercial and standby letters of credit [Member] | |
Commitments | $ 130 |
Commitments to grant loans [Member] | |
Commitments | 6,373 |
Unfunded commitments under lines of credit [Member] | |
Commitments | $ 16,939 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Securities available for sale | $ 130,923 | $ 119,968 |
Equity Securities [Member] | ||
Securities available for sale | 5 | 5 |
Mortgage Backed Securities [Member] | ||
Securities available for sale | 67,698 | 64,046 |
US Treasury Securities and Obligations of US Government Corporations and Agencies [Member] | ||
Securities available for sale | 34,601 | 31,222 |
Municipal Notes [Member] | ||
Securities available for sale | 28,619 | 23,134 |
Corporate bonds & other obligations [Member] | ||
Securities available for sale | 1,561 | |
Fair Value [Member] | ||
Securities available for sale | 130,923 | 119,968 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Securities available for sale | 1,838 | 2,292 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Securities available for sale | 127,798 | 116,392 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Securities available for sale | 1,287 | 1,284 |
Carrying Value [Member] | ||
Securities available for sale | 130,923 | 119,968 |
Recurring [Member] | Fair Value [Member] | ||
Securities available for sale | 130,923 | 119,968 |
Recurring [Member] | Fair Value [Member] | Equity Securities [Member] | ||
Securities available for sale | 5 | 5 |
Recurring [Member] | Fair Value [Member] | Mortgage Backed Securities [Member] | ||
Securities available for sale | 67,698 | 64,046 |
Recurring [Member] | Fair Value [Member] | US Treasury Securities and Obligations of US Government Corporations and Agencies [Member] | ||
Securities available for sale | 34,601 | 31,222 |
Recurring [Member] | Fair Value [Member] | Municipal Notes [Member] | ||
Securities available for sale | 28,619 | 23,134 |
Recurring [Member] | Fair Value [Member] | Corporate bonds & other obligations [Member] | ||
Securities available for sale | 1,561 | |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Securities available for sale | 1,838 | 2,262 |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Municipal Notes [Member] | ||
Securities available for sale | 1,838 | 2,262 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Securities available for sale | 127,798 | 116,422 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Mortgage Backed Securities [Member] | ||
Securities available for sale | 67,698 | 64,046 |
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 | 33,319 | 29,943 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Municipal Notes [Member] | ||
Securities available for sale | 26,781 | 20,872 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate bonds & other obligations [Member] | ||
Securities available for sale | 1,561 | |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Securities available for sale | 1,287 | 1,284 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Securities [Member] | ||
Securities available for sale | 5 | 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 | $ 1,279 |
FAIR VALUE MEASUREMENTS (Deta47
FAIR VALUE MEASUREMENTS (Details 1) - Available-for-sale Securities [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | $ 1,984 | $ 1,905 | $ 2,292 | $ 1,941 |
Purchases | 360 | 360 | ||
Sales or maturities | (117) | (122) | (275) | (100) |
Unrealized gain (loss) | (29) | 119 | (179) | 61 |
Balance, end of period | $ 1,838 | $ 2,262 | $ 1,838 | $ 2,262 |
FAIR VALUE MEASUREMENTS (Deta48
FAIR VALUE MEASUREMENTS (Details 2) - Nonrecurring [Member] - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Acquired Assets [Member] | Fair Value [Member] | ||
Fair Value Assets Measured on a Nonrecurring Basis | ||
Impaired loans | $ 540 | $ 396 |
Acquired Assets [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 540 | 396 |
Total assets measured at fair value on a non-recurring basis | 540 | 396 |
Originated Assets [Member] | Fair Value [Member] | ||
Fair Value Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 1,663 | 1,806 |
Other real estate owned - residential mortgages | 527 | 336 |
Other real estate owned - commercial | 1,721 | 1,628 |
Other repossessed assets | 774 | 860 |
Originated Assets [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 1,663 | 1,806 |
Other real estate owned - residential mortgages | 527 | 336 |
Other real estate owned - commercial | 1,721 | 1,628 |
Other repossessed assets | 774 | 860 |
Total assets measured at fair value on a non-recurring basis | $ 4,685 | $ 4,630 |
FAIR VALUE MEASUREMENTS (Deta49
FAIR VALUE MEASUREMENTS (Details 3) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financial assets: | ||
Deposits held at other financial institutions | $ 8,924 | $ 8,429 |
Securities available for sale | 130,923 | 119,968 |
Securities held to maturity | 746 | |
Significant Other Observable Inputs (Level 2) [Member] | ||
Financial assets: | ||
Deposits held at other financial institutions | 8,924 | 8,429 |
Securities available for sale | 127,798 | 116,392 |
Securities held to maturity | 746 | 908 |
Federal Home Loan Bank stock | 1,636 | 2,591 |
Financial liabilities: | ||
Customer deposits | 279,851 | 271,200 |
Federal Home Loan Bank advances | 25,036 | 22,696 |
Carrying Value [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 8,518 | 11,472 |
Deposits held at other financial institutions | 8,924 | 8,429 |
Securities available for sale | 130,923 | 119,968 |
Securities held to maturity | 745 | 790 |
Loans held for sale | 132 | 88 |
Loans receivable - net | 168,063 | 163,647 |
Federal Home Loan Bank stock | 1,636 | 2,591 |
Accrued interest receivable | 1,065 | 986 |
Financial liabilities: | ||
Customer deposits | 279,297 | 270,734 |
Federal Home Loan Bank advances | 25,072 | 22,885 |
Accrued interest payable | 101 | 101 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 8,518 | 11,472 |
Securities available for sale | 1,287 | 1,284 |
Fair Value [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 8,518 | 11,472 |
Deposits held at other financial institutions | 8,924 | 8,429 |
Securities available for sale | 130,923 | 119,968 |
Securities held to maturity | 746 | 908 |
Loans held for sale | 147 | 90 |
Loans receivable - net | 167,238 | 163,690 |
Federal Home Loan Bank stock | 1,636 | 2,591 |
Accrued interest receivable | 1,065 | 986 |
Financial liabilities: | ||
Customer deposits | 279,851 | 271,200 |
Federal Home Loan Bank advances | 25,036 | 22,696 |
Accrued interest payable | 101 | 101 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Financial assets: | ||
Securities available for sale | 1,838 | 2,292 |
Loans held for sale | 147 | 90 |
Loans receivable - net | 167,238 | 163,690 |
Accrued interest receivable | 1,065 | 986 |
Financial liabilities: | ||
Accrued interest payable | $ 101 | $ 101 |