Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended |
Dec. 31, 2013 | |
Document and Entity Information [Abstract] | ' |
Entity Registrant Name | 'First Federal of Northern Michigan Bancorp, Inc. |
Entity Central Index Key | '0001128227 |
Trading Symbol | 'FFNM |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Smaller Reporting Company |
Document Type | 'S-4 |
Document Period End Date | 31-Dec-13 |
Amendment Flag | 'false |
Consolidated_Balance_Sheet
Consolidated Balance Sheet (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $2,760 | $2,732 |
Overnight deposits with Federal Home Loan Bank | 6 | 20 |
Total cash and cash equivalents | 2,766 | 2,752 |
Securities available for sale (Note 2) | 50,358 | 50,764 |
Securities held to maturity (Note 2) | 2,255 | 2,345 |
Loans - net (Note 3) | 136,315 | 138,912 |
Loans - held for sale | 175 | 79 |
Federal Home Loan Bank stock | 3,266 | 3,266 |
Property and equipment (Note 4) | 5,203 | 5,394 |
Foreclosed real estate | 1,780 | 2,387 |
Accrued interest receivable | 745 | 970 |
Intangible assets (Note 6) | 40 | 158 |
Deferred tax asset (Note 9) | 799 | 331 |
Originated mortgage servicing rights - net (Note 5) | 860 | 1,016 |
Bank owned life insurance | 4,610 | 4,475 |
Other assets | 485 | 985 |
Total assets | 209,657 | 213,834 |
Liabilities: | ' | ' |
Non-interest bearing deposits | 21,047 | 21,067 |
Interest-bearing deposits (Note 7) | 138,982 | 137,283 |
Advances from Federal Home Loan Bank (Note 8) | 24,813 | 26,358 |
REPO sweep accounts | ' | 3,183 |
Accrued expenses and other liabilities (Note 5) | 1,290 | 1,508 |
Total liabilities | 186,132 | 189,399 |
Stockholders' equity: | ' | ' |
Common stock ($0.01 par value 20,000,000 shares authorized, 3,191,799 shares issued) - at December 31, 2013 and 2012, respectively | 32 | 32 |
Additional paid-in capital | 23,854 | 23,854 |
Retained earnings | 2,763 | 2,766 |
Treasury stock at cost (307,750 shares) - at December 31, 2013 and 2012, respectively | -2,964 | -2,964 |
Accumulated other comprehensive (loss) income | -160 | 747 |
Total stockholders' equity | 23,525 | 24,435 |
Total liabilities and stockholders' equity | $209,657 | $213,834 |
Consolidated_Balance_Sheet_Par
Consolidated Balance Sheet (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Financial Position [Abstract] | ' | ' |
Common stock, par value per share | $0.01 | $0.01 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 3,191,799 | 3,191,799 |
Treasury stock, shares | 307,750 | 307,750 |
Consolidated_Statement_of_Inco
Consolidated Statement of Income (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Interest income: | ' | ' |
Loans, including fees | $7,203 | $7,928 |
Investments | ' | ' |
Taxable | 484 | 540 |
Tax-exempt | 151 | 154 |
Interest on mortgage-backed securities | 481 | 621 |
Total interest income | 8,319 | 9,243 |
Interest expense: | ' | ' |
Deposits (Note 7) | 826 | 1,034 |
Borrowings | 324 | 620 |
Total interest expense | 1,150 | 1,654 |
Net Interest Income - Before provision for loan losses | 7,169 | 7,589 |
Provision for Loan Losses (Note 3) | 637 | 1,367 |
Net Interest Income after provision for loan losses | 6,532 | 6,222 |
Other Income | ' | ' |
Service charges and other fees | 857 | 760 |
Net gain on sale of investments | ' | 47 |
Net gain on sale of loans | 235 | 587 |
Net gain (loss) on sale of real estate owned and other repossessed assets | 3 | -83 |
Loan servicing fees | 350 | 656 |
Insurance and brokerage commissions | 126 | 149 |
Other | 194 | 160 |
Total other income | 1,765 | 2,276 |
Operating Expenses | ' | ' |
Compensation and employee benefits (Note 12) | 4,654 | 4,913 |
FDIC Insurance Premiums | 184 | 189 |
Amortization of intangible assets | 119 | 177 |
Advertising | 130 | 156 |
Occupancy and equipment | 911 | 959 |
Data processing service bureau | 301 | 306 |
Professional fees | 510 | 424 |
Collection activity | 153 | 206 |
Real estate owned & other repossessed assets | 245 | 409 |
Other | 1,035 | 973 |
Total operating expenses | 8,242 | 8,712 |
Income (Loss) - before income tax expense | 55 | -214 |
Income tax expense (Note 9) | ' | ' |
Net income (loss) | 55 | -214 |
Other Comprehensive Income (Loss): | ' | ' |
Unrealized (loss) gain on investment securities - available for sale securities - net of tax | -907 | 110 |
Reclassification adjustment for gains realized in earnings - net of tax | ' | -31 |
Comprehensive Loss | ($852) | ($135) |
Net income (loss) per share | ' | ' |
Basic | $0.02 | ($0.07) |
Diluted | $0.02 | ($0.07) |
Dividends per common share | $0.02 | ' |
Consolidated_Statement_of_Chan
Consolidated Statement of Changes in Stockholders' Equity (USD $) | Common Stock | Treasury Stock | Additional Paid-in Capital | Unearned Compensation | Retained Earnings | Accumulated Other Comprehensive Income | Total |
In Thousands, except Share data | |||||||
Balance, beginning at Dec. 31, 2011 | $32 | ($2,964) | $23,853 | ($1) | $2,980 | $668 | $24,568 |
Balance, beginning, shares at Dec. 31, 2011 | 3,191,799 | ' | ' | ' | ' | ' | ' |
Net income (loss) | ' | ' | ' | ' | -214 | ' | -214 |
Other comprehensive income (loss) | ' | ' | ' | ' | ' | 79 | 79 |
Stock options/MRP shares expensed | ' | ' | 1 | 1 | ' | ' | 2 |
Balance, ending at Dec. 31, 2012 | 32 | -2,964 | 23,854 | ' | 2,766 | 747 | 24,435 |
Balance, ending, shares at Dec. 31, 2012 | 3,191,799 | ' | ' | ' | ' | ' | 3,191,799 |
Net income (loss) | ' | ' | ' | ' | 55 | ' | 55 |
Other comprehensive income (loss) | ' | ' | ' | ' | ' | -907 | -907 |
Common dividend declared | ' | ' | ' | ' | -58 | ' | -58 |
Balance, ending at Dec. 31, 2013 | $32 | ($2,964) | $23,854 | ' | $2,763 | ($160) | $23,525 |
Balance, ending, shares at Dec. 31, 2013 | 3,191,799 | ' | ' | ' | ' | ' | ' |
Consolidated_Statement_of_Chan1
Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Statement of Stockholders' Equity [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common dividend declared (per share) | $0.02 | ' | ' | ' | ' | ' | ' | ' | $0.02 | ' |
Consolidated_Statement_of_Cash
Consolidated Statement of Cash Flows (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flows from Operating Activities: | ' | ' |
Net income (loss) | $55 | ($214) |
Adjustments to reconcile net income (loss) to net cash from operating activities: | ' | ' |
Depreciation and amortization | 401 | 480 |
Provision for loan loss | 637 | 1,367 |
Amortization and accretion on securities | 551 | 527 |
Gain on sale of investment securities | ' | -47 |
Stock options/awards | ' | 2 |
Gain on sale of loans held for sale | -235 | -587 |
(Gain) loss on sale of property and equipment | -12 | 4 |
(Gain) loss on sale of real estate owned and other repossessed assets | -3 | 83 |
Originations of loans held for sale | -17,383 | -35,559 |
Proceeds from sale of loans held for sale | 17,522 | 36,067 |
Net change in: | ' | ' |
Accrued interest receivable | 225 | 179 |
Prepaid FDIC insurance premiums | 583 | 176 |
Bank owned life insurance | -135 | -61 |
Other assets | 73 | -37 |
Accrued expenses and other liabilities | -218 | -227 |
Deferred income tax benefit - (Note 9) | ' | ' |
Net cash provided by operating activities | 2,061 | 2,153 |
Cash Flows from Investing Activities: | ' | ' |
Net decrease (increase) in loans | 474 | -1,219 |
Proceeds from maturity and sale of available-for-sale securities | 14,441 | 20,494 |
Proceeds from maturity and sale of available-for-sale securities | ' | 1,600 |
Proceeds from sale of property and equipment | 59 | 264 |
Proceeds from sale of real estate owned and other repossessed assets | 2,097 | 2,761 |
Purchase of securities | -15,872 | -20,080 |
Purchase of bank owned life insurance | ' | -3,000 |
Purchase of premises and equipment | -139 | -120 |
Net cash provided by investing activities | 1,060 | 700 |
Cash Flows from Financing Activities: | ' | ' |
Net increase in deposits | 1,679 | 7,701 |
Dividends paid on common stock | -58 | ' |
Net decrease in Repo Sweep accounts | -3,183 | -2,409 |
Advances from FHLB | 47,005 | 58,815 |
Repayments of advances from FHLB | -48,550 | -66,957 |
Net cash used in financing activities | -3,107 | -2,850 |
Net Increase in Cash and Cash Equivalents | 14 | 3 |
Cash and cash equivalents at beginning of period | 2,752 | 2,749 |
Cash and cash equivalents at end of period | 2,766 | 2,752 |
Supplemental disclosure of cash flow information: | ' | ' |
Net cash paid (refunded) for income taxes | ' | -15 |
Cash paid for interest on deposits and borrowings | 1,161 | 1,702 |
Transfer of loans to real estate owned & other repossessed assets | $1,486 | $1,823 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Summary Of Significant Accounting Policies | ' | |||||||
Summary of Significant Accounting Policies | ' | |||||||
Note 1 - Summary of Significant Accounting Policies | ||||||||
Nature of Operations – First Federal of Northern Michigan Bancorp, Inc. (the “Company”) and its subsidiary, First Federal of Northern Michigan (the “Bank”), conduct operations in the northeastern lower peninsula of Michigan. The Company’s primary services include accepting deposits, making commercial, consumer and mortgage loans, and engaging in mortgage banking activities. | ||||||||
Principles of Consolidation - The consolidated financial statements include the accounts of First Federal of Northern Michigan Bancorp, Inc., First Federal of Northern Michigan, and the Bank’s wholly owned subsidiaries, Financial Services & Mortgage Corporation (“FSMC”) and FFNM Agency. FSMC invested in real estate, which includes leasing, selling, developing, and maintaining real estate properties. The main activity of FFNM Agency is to collect the stream of income associated with the sale of the Blue Cross/Blue Shield override business to an outside party and, to a lesser extent, the collection of commissions for the sale of non-insured investment products. All significant intercompany balances and transactions have been eliminated in the consolidation. | ||||||||
Certain reclassifications of prior years’ amounts have been made to conform to current year presentation. Such reclassifications had no effect on prior year net income or shareholders’ equity. | ||||||||
Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of investment securities, intangible and deferred tax assets, and mortgage servicing rights. | ||||||||
Significant Group Concentrations of Credit Risk - Most of the Company’s activities are with customers located within the northeastern lower peninsula of Michigan. Note 2 discusses the types of securities in which the Company invests. Note 3 discusses the types of lending in which the Company engages. The Company does not have any significant concentrations to any one industry or customer. | ||||||||
Cash and Cash Equivalents - For the purpose of the consolidated statements of cash flows, cash and cash equivalents include cash and balances due from depository institutions and federal funds sold and interest bearing deposits in other depository institutions which mature within ninety days when purchased. | ||||||||
Securities – Debt securities that management has the positive intent and ability to hold to maturity are classified as “held to maturity” and recorded at amortized cost. Securities not classified as held to maturity, including equity securities with readily determinable fair values, are classified as “available for sale” and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income net of applicable income taxes. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. | ||||||||
Management evaluates securities for other-than-temporary impairment (“OTTI”) on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. When evaluating investment securities consideration is given to the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, whether the market decline was affected by macroeconomic conditions and whether the Company has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. In analyzing an issuer’s financial condition, the Company may consider whether the securities are issued by the federal government or its agencies, or U.S. Government sponsored enterprises, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition. The assessment of whether another-than-temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time. | ||||||||
When OTTI occurs, the amount of the OTTI recognized in earnings depends on whether an entity intends to sell the security or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis. If an entity intends to sell or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, the OTTI shall be recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date. The previous amortized cost basis less the OTTI recognized in earnings becomes the new amortized cost basis of the investment. If a security is determined to be other-than-temporarily impaired, but the entity does not intend to sell the security, only the credit portion of the estimated loss is recognized in earnings, with the other portion of the loss recognized in other comprehensive income. | ||||||||
Federal Home Loan Bank Stock – Federal Home Loan Bank (FHLB) Stock is carried at cost and is held to allow the Bank to conduct business with the entity. The Federal Home Loan Bank sells and purchases its stock at par; therefore cost approximates fair market value. | ||||||||
Mortgage Banking Activities – The Company routinely sells to investors its originated long-term residential fixed-rate mortgage loans. Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. | ||||||||
Mortgage loans held for sale are generally sold with the mortgage servicing rights retained by the Company. The carrying value of mortgage loans sold is reduced by the cost allocated to the associated mortgage servicing rights. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loans sold. | ||||||||
The Company enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding, also known as rate lock commitments. Rate lock commitments on residential mortgage loans that are intended to be sold are considered to be derivatives. Fair value is based on fees currently charged to enter into similar agreements. The fair value of rate lock commitments was insignificant at December 31, 2013 and 2012. | ||||||||
The Company uses forward contracts as part of its mortgage banking activities. Forward contracts provide for the delivery of financial instruments at a specified future date and at a specified price or yield. The fair value of forward contracts was insignificant at December 31, 2013 and 2012. | ||||||||
Loans - The Company grants mortgage, commercial, and consumer loans to customers. Loans are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses, and any deferred fees or costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield over the contractual life of the loan. | ||||||||
Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses, and any deferred fees or costs on originated loans. | ||||||||
The accrual of interest on loans is discontinued at the time the loan is 90 days delinquent unless the credit is well-secured and in process of collection. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. | ||||||||
All interest accrued but not collected, for loans that are placed on nonaccrual or charged off, is reversed against interest income. The interest on these loans is accounted for on the cash basis or cost recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. | ||||||||
Allowance for Loan Losses - The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. | ||||||||
The allowance for loan losses is evaluated on a regular basis by management and is based on management’s periodic review of the collectibility of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. | ||||||||
The allowance consists of specific and general components. The specific component relates to loans that are classified as doubtful, substandard or special mention. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-classified loans and is based on historical loss experience adjusted for qualitative factors. | ||||||||
A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Large groups of homogeneous loans are collectively evaluated for impairment. The Company does not separately identify individual consumer and residential loans for impairment disclosures until a loss is imminent. | ||||||||
Troubled debt restructuring of loans is undertaken to improve the likelihood that the loan will be repaid in full under the modified terms in accordance with a reasonable repayment schedule. All modified loans are evaluated to determine whether the loans should be reported as a Troubled Debt Restructure (TDR). A loan is a TDR when the Company, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower by modifying or renewing a loan that the Company would not otherwise consider. To make this determination, the Company must determine whether (a) the borrower is experiencing financial difficulties and (b) the Company granted the borrower a concession. This determination requires consideration of all of the facts and circumstances surrounding the modification. An overall general decline in the economy or some deterioration in a borrower’s financial condition does not automatically mean the borrower is experiencing financial difficulties. | ||||||||
Loan Servicing – Servicing assets are recognized as separate assets when rights are acquired through the sale of originated residential mortgage loans. Capitalized servicing rights are reported in other assets and are amortized against non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights into tranches based on predominant characteristics, such as interest rate, loan type and investor type. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or on a valuation model that calculates the present value of estimated future net servicing income using market based assumptions. Temporary impairment is recognized through a valuation allowance for an individual stratum to the extent that fair value is less than the capitalized amount for the stratum. If it is later determined that all or a portion of the temporary impairment no longer exists, the valuation allowance is reduced through a recovery of income. An other-than-temporary impairment results in a permanent reduction to the carrying value of the servicing asset. Servicing income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal, or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. | ||||||||
Foreclosed Assets (Including Other Real Estate Owned) - Foreclosed real estate held for sale is carried at the lower of fair value minus estimated costs to sell, or cost. Costs of holding foreclosed real estate are charged to expense in the current period, except for significant property improvements, which are capitalized. Valuations are periodically performed by management and an allowance is established by a charge to non-interest expense if the carrying value exceeds the fair value minus estimated costs to sell. Foreclosed real estate is classified as other real estate owned. The net income from operations of foreclosed real estate held for sale is reported in non-interest income. | ||||||||
Property and Equipment - These assets are recorded at cost, less accumulated depreciation. The Bank uses the straight-line method of recording depreciation for financial reporting. The depreciable lives used by the Company are: land improvements 7-10 years, buildings 7-40 years and equipment 3-10 years. Maintenance and repairs are charged to expense and improvements are capitalized. | ||||||||
Bank Owned Life Insurance - The Bank has purchased life insurance policies on certain key officers. Bank-owned life insurance is recorded at its cash surrender value, or the amount that can be realized. | ||||||||
Intangible Assets – The Company has in the past purchased a branch or branches from other financial institutions. The analysis of these branch acquisitions led the Company to conclude that in each case, we acquired a business and therefore, the excess of purchase price over fair value of net assets acquired has been allocated to core deposit intangible assets. The conclusion was based on the fact that in each case we acquired employees, customers and branch facilities. The expected life for core deposit intangibles is based on the type of products acquired in an acquisition. The amortization periods range from 10 to 15 years and are based on the expected life of the products. The expected life was determined based on an analysis of the life of similar products within the Company and local competition in the markets where the branches were acquired. The core deposit intangibles are amortized on a straight line basis. The core deposit intangible is analyzed quarterly for impairment. | ||||||||
On June 12, 2003, First Federal of Northern Michigan acquired 100% of the stock of the InsuranCenter of Alpena (ICA). | ||||||||
On February 27, 2009 the Company announced that it had sold the majority of the assets of the InsuranCenter of Alpena. | ||||||||
At the time of the sale, goodwill of $600 continued to be recorded relating to certain assets of the Company that were not sold in the sale of ICA. The assets retained relate to a future stream of commissions. Under an agreement, the Company will receive a portion of the override commission through April, 2014. Management computed an estimated cash flow on this commission using a 6.0% discount rate and determined a fair value of $600. Since the $600 allocation of fair value relates to a finite life asset, the Company re-characterized the goodwill as an amortizable intangible and began amortizing the asset in March, 2009. | ||||||||
Income Taxes - Deferred income tax assets and liabilities are recognized for temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | ||||||||
The Company records a valuation allowance if it believes, based on available evidence, that it is “more likely than not” that the future tax assets recognized will not be realized before their expiration. Realization of the Company’s deferred tax assets is primarily dependent upon the generation of a sufficient level of future taxable income. | ||||||||
At December 31, 2013 and 2012, management did not believe it was more likely than not that all of the deferred tax assets would be realized. Accordingly, at December 31, 2013 and 2012 a valuation allowance of $3.2 million was recorded. | ||||||||
The net deferred tax asset recorded at December 31, 2013 and 2012 was $798 and $331. See Note 9 for additional information. | ||||||||
Off Balance Sheet Instruments - In the ordinary course of business, the Company has entered into commitments to extend credit, including commitments under credit card arrangements, commercial letters of credit and standby letters of credit. For letters of credit, a liability is recorded for the fair value of the obligation undertaken in issuing the guarantee. | ||||||||
Comprehensive Income - Accounting principles generally require that recognized revenue, expenses, gains, and losses be included in net income. Certain changes in assets and liabilities, however, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component in the equity section of the consolidated statement of financial condition. Such items, along with net income, are components of comprehensive income. | ||||||||
Stock-Based Compensation – The Company applies the recognition and measurement of stock-based compensation accounting rules for stock-based compensation which is referred to as the fair value method. Compensation cost is based on the fair value of the equity issued to employees. The Company recognizes compensation expense related to stock-based compensation over the period the services are performed. | ||||||||
The Company’s stock based compensation plans are described in detail in Note 12 (Employee Benefit Plans). Compensation expense is recognized for stock options and unvested (restricted) stock awards issued to employees, based on the fair value of these awards at the date of grant. A Black Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common shares at the date of grant is used to estimate the fair value of unvested (restricted) stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period for stock option awards and as the unvested period for nonvested (restricted) stock awards. Certain of the Company’s share-based awards contain terms that provide for a graded vesting schedule whereby portions of the award vest in increments over the requisite service period. | ||||||||
The Company granted no options in 2013 and 2012. Compensation costs related to stock options charged to earnings were $0 and $2 in 2013 and 2012, respectively. | ||||||||
Earnings Per Common Share - Earnings per common share are computed by dividing net income by the average number of common shares outstanding during the period. The Company uses the treasury stock method to compute diluted earnings per share, which assumes that proceeds from the assumed exercise of stock options would be used to purchase common stock at the average market price during the period. As of December 31, 2013, 150,030 options were not considered dilutive, due to the fact that the options are underwater. As of December 31, 2012 there was no dilution due to the net loss for the year. | ||||||||
Earnings per common share have been computed based on the following: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Net income (loss) | $ | 55 | $ | (214 | ) | |||
Average number of common shares outstanding | 2,884,049 | 2,884,049 | ||||||
Effect of dilutive options | — | — | ||||||
Average number of common shares outstanding used to calculate diluted earnings per common share | 2,884,049 | 2,884,049 | ||||||
Recent Accounting Pronouncements - In 2013 the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2013-02 The Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income. The Update does not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income (AOCI) by component. In addition, an entity is required to present, either on the face of the statement where net income is presented (or in the notes), significant amounts reclassified out of AOCI by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. This standard is effective for reporting periods beginning after December 15, 2013 (December 31, 2014). | ||||||||
In 2013 the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The update provides additional guidance related to the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists. An unrecognized tax benefit should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryfoward. Except for when a net operating loss carryforward, a similar tax loss or tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. The amendments in this update are effective for fiscal years and interim periods within those years, beginning after December 15, 2013. For nonpublic entities, the amendments are effective for fiscal years and interim periods within those years, beginning after December 15, 2014. Early adoption is permitted. We do not expect the update to have a material effect on our financial statements. | ||||||||
During 2014, the FASB issued ASU N. 2014-04 Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The amendments in this Update clarify that an in substance repossession or foreclosures occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendment requires interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. For entities other than public business entities, the amendments in this Update are effective for annual periods beginning after December 15, 2014 and interim periods within annual periods beginning after December 15, 2015. An entity can elect to adopt the amendments in this Update using either a modified retrospective transition method or a prospective method. We do not expect the update to have a material effect on our financial statements. |
Securities
Securities | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
SecuritiesAbstract | ' | |||||||||||||||||||||||||
Securities | ' | |||||||||||||||||||||||||
Note 2 - Securities | ||||||||||||||||||||||||||
Investment securities have been classified according to management’s intent. The carrying value and estimated fair value of securities are as follows: | ||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||
Amortized | Gross | Gross | Market | |||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||
Securities Available for Sale | ||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 7,111 | $ | 36 | $ | (105 | ) | $ | 7,042 | |||||||||||||||||
Municipal notes | 13,694 | 216 | (301 | ) | 13,609 | |||||||||||||||||||||
Corporate securities | 1,085 | 12 | — | 1,097 | ||||||||||||||||||||||
Mortgage-backed securities | 28,708 | 279 | (384 | ) | 28,603 | |||||||||||||||||||||
Equity securities | 3 | 4 | — | 7 | ||||||||||||||||||||||
Total | $ | 50,601 | $ | 547 | $ | (790 | ) | $ | 50,358 | |||||||||||||||||
Securities Held to Maturity | ||||||||||||||||||||||||||
Municipal notes | $ | 2,255 | $ | 145 | $ | — | $ | 2,400 | ||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||
Amortized | Gross | Gross | Market | |||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||
Securities Available for Sale | ||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 9,181 | $ | 66 | $ | — | $ | 9,247 | ||||||||||||||||||
Municipal notes | 10,413 | 368 | (23 | ) | 10,758 | |||||||||||||||||||||
Corporate securities | 1,135 | 15 | — | 1,150 | ||||||||||||||||||||||
Mortgage-backed securities | 28,901 | 736 | (29 | ) | 29,608 | |||||||||||||||||||||
Equity securities | 3 | — | (2 | ) | 1 | |||||||||||||||||||||
Total | $ | 49,633 | $ | 1,185 | $ | (54 | ) | $ | 50,764 | |||||||||||||||||
Securities Held to Maturity | ||||||||||||||||||||||||||
Municipal notes | $ | 2,345 | $ | 225 | $ | — | $ | 2,570 | ||||||||||||||||||
The amortized cost and estimated market value of securities at December 31, 2013, by contractual 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. | ||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||
Amortized | Market | |||||||||||||||||||||||||
Cost | Value | |||||||||||||||||||||||||
Available For Sale: | ||||||||||||||||||||||||||
Due in one year or less | $ | 3,414 | $ | 3,427 | ||||||||||||||||||||||
Due after one year through five years | 10,779 | 10,854 | ||||||||||||||||||||||||
Due in five year through ten years | 6,461 | 6,201 | ||||||||||||||||||||||||
Due after ten years | 1,236 | 1,266 | ||||||||||||||||||||||||
Subtotal | 21,890 | 21,748 | ||||||||||||||||||||||||
Equity securities | 3 | 7 | ||||||||||||||||||||||||
Mortgage-backed securities | 28,708 | 28,603 | ||||||||||||||||||||||||
Total | $ | 50,601 | $ | 50,358 | ||||||||||||||||||||||
Held To Maturity | ||||||||||||||||||||||||||
Due in one year or less | $ | 90 | $ | 92 | ||||||||||||||||||||||
Due after one year through five years | 490 | 516 | ||||||||||||||||||||||||
Due in five year through ten years | 700 | 750 | ||||||||||||||||||||||||
Due after ten years | 975 | 1,042 | ||||||||||||||||||||||||
Total | $ | 2,255 | $ | 2,400 | ||||||||||||||||||||||
At December 31, 2013 and 2012, securities with a fair value of $36.0 million and $44.1 million, respectively, were pledged to secure REPO Sweep accounts, FHLB advances and borrowings from the Federal Reserve discount window. | ||||||||||||||||||||||||||
Gross proceeds from the sale of available-for-sale securities for the years ended December 31, 2013 and 2012 were $0 and $1.6 million, respectively, resulting in gross gains of $0 and $54, respectively, and gross losses of $0 and $7, respectively. The tax provision applicable to these net realized gains amounted to $0 and $16, respectively. | ||||||||||||||||||||||||||
The following is a summary of securities that had unrealized losses at December 31, 2013 and 2012. The information is presented for securities that have been in an unrealized loss position for less than 12 months and for more than 12 months. At December 31, 2013, the Company held 39 securities with unrealized losses totaling $790. At December 31, 2012 there were 10 securities with unrealized losses totaling $54. There are temporary reasons why securities may be valued at less than amortized cost. | ||||||||||||||||||||||||||
Tmporary reasons are that the current levels of interest rates as compared to the coupons on the securities held by the Company are higher and impairment is not due to credit deterioration. The Company has the intent and the ability to hold these securities until their value recovers, which may be until maturity. | ||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||||
Gross | Gross | Gross | Gross | |||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | Unrealized | |||||||||||||||||||||||
Losses | Losses | Losses | Losses | |||||||||||||||||||||||
Fair Value | Less than | Fair Value | 12 months | Fair Value | Less than | Fair Value | 12 months | |||||||||||||||||||
12 months | or longer | 12 months | or longer | |||||||||||||||||||||||
Available For Sale: | ||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | — | $ | — | $ | 894 | $ | (105 | ) | $ | — | $ | — | $ | — | $ | — | |||||||||
Corporate and other securities | ||||||||||||||||||||||||||
Municipal notes | 7,902 | (243 | ) | 1,668 | (58 | ) | 1,537 | (23 | ) | — | — | |||||||||||||||
Mortgage-backed securities | 14,471 | (334 | ) | 2,052 | (50 | ) | 2,725 | (13 | ) | 1,687 | (16 | ) | ||||||||||||||
Equity securities | — | — | — | — | — | — | 1 | (2 | ) | |||||||||||||||||
Total Securities available for sale | $ | 22,373 | $ | (577 | ) | $ | 4,614 | $ | (213 | ) | $ | 4,262 | $ | (36 | ) | $ | 1,688 | $ | (18 | ) | ||||||
Held to Maturity: | ||||||||||||||||||||||||||
Municipal notes | — | — | — | — | — | — | — | — | ||||||||||||||||||
Total Securities held to maturity | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
On a quarterly basis, the Company performs a comprehensive security-level impairment assessment on all securities in an unrealized loss position to determine if other-than-temporary impairment (“OTTI”) exists. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. For debt securities, an OTTI loss must be recognized for a debt security in an unrealized loss position if the Company intends to sell the security or it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. In this situation, the amount of loss recognized in income is equal to the difference between the fair value and the amortized cost basis of the individual security. If the Company does not expect to sell the security, the Company must evaluate the expected cash flows to be received to determine if a credit loss has occurred. If a credit loss is present, only the amount of impairment associated with the credit loss is recognized in income. The portion of the unrealized loss relating to other factors, such as liquidity conditions in the market or changes in market interest rates, is recorded in other comprehensive income. | ||||||||||||||||||||||||||
The security-level assessment is performed on each security, regardless of the classification of the security as available for sale or held to maturity. The assessments are based on the nature of the securities, the financial condition of the issuer, the extent and duration of the securities, the extent and duration of the loss and the intent and whether Management intends to sell or it is more likely than not that it will be required to sell a security before recovery of its amortized cost basis, which may be maturity. For those securities for which the assessment shows the Company will recover the entire cost basis, Management does not intend to sell these securities and it is not more likely than not that the Company will be required to sell them before the anticipated recovery of the amortized cost basis, the gross unrealized losses are recognized in other comprehensive income, net of tax. | ||||||||||||||||||||||||||
Management does not believe that the investment securities that were in an unrealized loss position as of December 31, 2013 represent an other-than-temporary impairment. Total gross unrealized losses were primarily attributable to changes in interest rates, relative to when the investment securities were purchased, and not due to the credit quality of the investment securities. The Company does not intend to sell the investment securities that were in an unrealized loss position and it is not more likely than not that the Company will be required to sell the investment securities before recovery of their amortized cost bases, which may be at maturity. | ||||||||||||||||||||||||||
Loans
Loans | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Loans | ' | |||||||||||||||||||||||||
Loans | ' | |||||||||||||||||||||||||
Note 3 - Loans | ||||||||||||||||||||||||||
Loans at December 31, 2013 and 2012 are summarized as follows: | ||||||||||||||||||||||||||
31-Dec | ||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
Real estate loans - One- to four-family residential | $ | 63,839 | $ | 66,539 | ||||||||||||||||||||||
Commercial loans: | ||||||||||||||||||||||||||
Secured by real estate | 51,899 | 54,673 | ||||||||||||||||||||||||
Other | 12,451 | 8,102 | ||||||||||||||||||||||||
Total commercial loans | 64,350 | 62,775 | ||||||||||||||||||||||||
Consumer loans: | ||||||||||||||||||||||||||
Secured by real estate | 8,730 | 10,409 | ||||||||||||||||||||||||
Other | 1,165 | 1,259 | ||||||||||||||||||||||||
Total consumer loans | 9,895 | 11,668 | ||||||||||||||||||||||||
Total gross loans | 138,084 | 140,982 | ||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||
Net deferred loan fees | 297 | 320 | ||||||||||||||||||||||||
Allowance for loan losses | 1,472 | 1,750 | ||||||||||||||||||||||||
Total loans - net | $ | 136,315 | $ | 138,912 | ||||||||||||||||||||||
Final loan maturities and rate sensitivity of the loan portfolio are as follows: | ||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||
Less Than | One Year | After | Total | |||||||||||||||||||||||
One Year | to Five | Five | ||||||||||||||||||||||||
Years | Years | |||||||||||||||||||||||||
Loans at fixed interest rates | $ | 7,713 | $ | 28,673 | $ | 49,458 | $ | 85,844 | ||||||||||||||||||
Loans at variable interest rates | 6,357 | 12,280 | 33,603 | 52,240 | ||||||||||||||||||||||
Total | $ | 14,070 | $ | 40,953 | $ | 83,061 | $ | 138,084 | ||||||||||||||||||
Certain directors and executive officers of the Company were loan customers of the Bank during 2013 and 2012. Such loans were made in the ordinary course of business and do not involve more than a normal risk of collectability. An analysis of aggregate loans outstanding to directors and executive officers for the years ended December 31, 2013 and 2012 are as follows: | ||||||||||||||||||||||||||
31-Dec | ||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
Aggregate balance - Beginning of Period | $ | 3,340 | $ | 3,344 | ||||||||||||||||||||||
New loans | 2,524 | 1,166 | ||||||||||||||||||||||||
Repayments | (2,491 | ) | (1,170 | ) | ||||||||||||||||||||||
Net change in directors and officers | (205 | ) | — | |||||||||||||||||||||||
Aggregate balance - End of Period | $ | 3,168 | $ | 3,340 | ||||||||||||||||||||||
The following tables illustrate the contractual aging of the recorded investment in past due loans by class of loans as of December 31, 2013 and 2012: | ||||||||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||
30 - 59 Days | 60 - 89 Days | Greater than 90 | Total | Current | Total Loans | Recorded | ||||||||||||||||||||
Past Due | Past Due | Days | Past Due | Investment > 90 | ||||||||||||||||||||||
Days and | ||||||||||||||||||||||||||
Accruing | ||||||||||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||||||||
Commercial Real Estate - construction | $ | — | $ | — | $ | 173 | $ | 173 | $ | — | $ | 173 | $ | — | ||||||||||||
Commercial Real Estate - other | — | 521 | 1,441 | 1,962 | 49,764 | 51,726 | — | |||||||||||||||||||
Commercial - non real estate | 33 | 20 | — | 53 | 12,398 | 12,451 | — | |||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||
Consumer - Real Estate | 54 | 55 | — | 109 | 8,621 | 8,730 | — | |||||||||||||||||||
Consumer - Other | — | 4 | 2 | 6 | 1,159 | 1,165 | 2 | |||||||||||||||||||
Residential: | ||||||||||||||||||||||||||
Residential | 1,973 | 393 | 353 | 2,719 | 61,120 | 63,839 | 24 | |||||||||||||||||||
Total | $ | 2,060 | $ | 993 | $ | 1,969 | $ | 5,022 | $ | 133,062 | $ | 138,084 | $ | 26 | ||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||
30 - 59 Days | 60 - 89 Days | Greater than 90 | Total | Current | Total Loans | Recorded | ||||||||||||||||||||
Past Due | Past Due | Days | Past Due | Investment > 90 | ||||||||||||||||||||||
Days and | ||||||||||||||||||||||||||
Accruing | ||||||||||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||||||||
Commercial Real Estate - construction | $ | — | $ | — | $ | 173 | $ | 173 | $ | 2,073 | $ | 2,246 | $ | — | ||||||||||||
Commercial Real Estate - other | 3,210 | 540 | 282 | 4,032 | 48,395 | 52,427 | — | |||||||||||||||||||
Commercial - non real estate | 113 | — | — | 113 | 7,989 | 8,102 | — | |||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||
Consumer - Real Estate | 59 | — | 13 | 72 | 10,337 | 10,409 | — | |||||||||||||||||||
Consumer - Other | 11 | 5 | 6 | 22 | 1,237 | 1,259 | 6 | |||||||||||||||||||
Residential: | ||||||||||||||||||||||||||
Residential | 2,047 | 796 | 1,198 | 4,041 | 62,498 | 66,539 | 61 | |||||||||||||||||||
Total | $ | 5,440 | $ | 1,341 | $ | 1,672 | $ | 8,453 | $ | 132,529 | $ | 140,982 | $ | 67 | ||||||||||||
The Bank uses an eight tier risk rating system to grade its commercial loans. The grade of a loan may change during the life of the loans. The risk ratings are described as follows: | ||||||||||||||||||||||||||
Risk Grade 1 (Excellent) - Prime loans based on liquid collateral, with adequate margin or supported by strong financial statements. Probability of serious financial deterioration is unlikely. High liquidity, minimum risk, strong ratios, and low handling costs are common to these loans. This classification also includes all loans secured by certificates of deposit or cash equivalents. | ||||||||||||||||||||||||||
Risk Grade 2 (Good) - Desirable loans of somewhat less stature than Grade 1, but with strong financial statements. Probability of serious financial deterioration is unlikely. These loans possess a sound repayment source (and/or a secondary source). These loans represent less than the normal degree of risk associated with the type of financing contemplated. | ||||||||||||||||||||||||||
Risk Grade 3 (Satisfactory) - Satisfactory loans of average risk – may have some minor deficiency or vulnerability to changing economic conditions, but still fully collectible. There may be some minor weakness but with offsetting features or other support readily available. These loans present a normal degree of risk associated with the type of financing. Actual and projected indicators and market conditions provide satisfactory assurance that the credit shall perform in accordance with agreed terms. | ||||||||||||||||||||||||||
Risk Grade 4 (Acceptable) - Loans considered satisfactory, but which are of slightly “below average” credit risk due to financial weaknesses or uncertainty. The loans warrant a somewhat higher than average level of monitoring to insure that weaknesses do not advance. The level of risk is considered acceptable and within normal underwriting guidelines, so long as the loan is given the proper level of management supervision. | ||||||||||||||||||||||||||
Risk Grade 4.5 (Monitored) - Loans are considered “below average” and monitored more closely due to some credit deficiency that poses additional risk but is not considered adverse to the point of being a “classified” credit. Possible reasons for additional monitoring may include characteristics such as temporary negative debt service coverage due to weak economic conditions, borrower may have experienced recent losses from operations, declining equity and/or increasing leverage, or marginal liquidity that may affect long-term sustainability. Loans of this grade have a higher degree of risk and warrant close monitoring to insure against further deterioration. | ||||||||||||||||||||||||||
Risk Grade 5 (Other Assets Especially Mentioned) (OAEM) - Loans which possess some credit deficiency or potential weakness, which deserve close attention, but which do not yet warrant substandard classification. Such loans pose unwarranted financial risk that, if not corrected, could weaken the loan and increase risk in the future. | ||||||||||||||||||||||||||
Risk Grade 6 (Substandard) - Loans are “substandard” whose full, final collectability does not appear to be a matter of serious doubt, but which nevertheless portray some form of well defined weakness that requires close supervision by Bank management. The noted weaknesses involve more than normal banking risk. One or more of the following characteristics may be exhibited in loans classified Substandard: (1) Loans possess a defined credit weakness and the likelihood that the loan shall be paid from the primary source of repayment is uncertain; (2) Loans are not adequately protected by the current net worth and/or paying capacity of the obligor; (3) primary source of repayment is gone, and the Bank is forced to rely on a secondary source of repayment such as collateral liquidation or guarantees; (4) distinct possibility that the Bank shall sustain some loss if deficiencies are not corrected; (5) unusual courses of action are needed to maintain a high probability of repayment; (6) the borrower is not generating enough cash flow to repay loan principal, however, continues to make interest payments; (7) the Bank is forced into a subordinated or unsecured position due to flaws in documentation; (8) loans have been restructured so that payment schedules, terms, and collateral represent concessions to the borrower when compared to normal loan terms; (9) the Bank is contemplating foreclosure or legal action due to the apparent deterioration in the loan; or (10) there is a significant deterioration in the market conditions and the borrower is highly vulnerable to these conditions. | ||||||||||||||||||||||||||
Grade 7 (Doubtful) - Loans have all the weaknesses of those classified Substandard. Additionally, however, these weaknesses make collection or liquidation in full, based on existing conditions, improbable. Loans in this category are typically not performing in conformance with established terms and conditions. Full repayment is considered “Doubtful”, but extent of loss is not currently determinable. | ||||||||||||||||||||||||||
Risk Grade 8 (Loss) - Loans are considered uncollectible and of such little value, that continuing to carry them as an asset on the Bank’s financial statements is not feasible. | ||||||||||||||||||||||||||
The following tables present the risk category of loans by class of loans based on the most recent analysis performed as of December 31, 2013 and 2012: | ||||||||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||
Loan Grade | Commercial Real Estate | Commercial Real Estate | Commercial | |||||||||||||||||||||||
Construction | Other | |||||||||||||||||||||||||
1-2 | $ | — | $ | — | $ | — | ||||||||||||||||||||
3 | — | 16,187 | 5,602 | |||||||||||||||||||||||
4 | — | 27,789 | 6,699 | |||||||||||||||||||||||
5 | — | 4,835 | 45 | |||||||||||||||||||||||
6 | 173 | 2,915 | 105 | |||||||||||||||||||||||
7 | — | — | — | |||||||||||||||||||||||
8 | — | — | — | |||||||||||||||||||||||
Total | $ | 173 | $ | 51,726 | $ | 12,451 | ||||||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||
Loan Grade | Commercial Real Estate | Commercial Real Estate | Commercial | |||||||||||||||||||||||
Construction | Other | |||||||||||||||||||||||||
1-2 | $ | — | $ | — | $ | — | ||||||||||||||||||||
3 | 615 | 13,895 | 2,376 | |||||||||||||||||||||||
4 | 1,458 | 27,488 | 5,489 | |||||||||||||||||||||||
5 | — | 2,712 | 37 | |||||||||||||||||||||||
6 | 173 | 8,332 | 200 | |||||||||||||||||||||||
7 | — | — | — | |||||||||||||||||||||||
8 | — | — | — | |||||||||||||||||||||||
Total | $ | 2,246 | $ | 52,427 | $ | 8,102 | ||||||||||||||||||||
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 December 31, 2013 and 2012. | ||||||||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||
Residential | ||||||||||||||||||||||||||
Loan Grade: | ||||||||||||||||||||||||||
Pass | $ | 63,164 | ||||||||||||||||||||||||
Special Mention | — | |||||||||||||||||||||||||
Substandard | 675 | |||||||||||||||||||||||||
Total | $ | 63,839 | ||||||||||||||||||||||||
Consumer - | Consumer - Other | |||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||
Performing | $ | 8,723 | $ | 1,163 | ||||||||||||||||||||||
Nonperforming | 7 | 2 | ||||||||||||||||||||||||
Total | $ | 8,730 | $ | 1,165 | ||||||||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||
Residential | ||||||||||||||||||||||||||
Loan Grade: | ||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||
Special Mention | $ | 64,668 | ||||||||||||||||||||||||
Substandard | — | |||||||||||||||||||||||||
Total | 1,871 | |||||||||||||||||||||||||
$ | 66,539 | |||||||||||||||||||||||||
Consumer - | Consumer - Other | |||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||
Performing | $ | 10,381 | $ | 1,253 | ||||||||||||||||||||||
Nonperforming | 28 | 6 | ||||||||||||||||||||||||
Total | $ | 10,409 | $ | 1,259 | ||||||||||||||||||||||
The following tables present the recorded investment in non-accrual loans by class as of December 31, 2013 and 2012: | ||||||||||||||||||||||||||
As of December 31 | ||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||||||||
Commercial Real Estate - construction | $ | 173 | $ | 173 | ||||||||||||||||||||||
Commercial Real Estate - other | 1,454 | 2,851 | ||||||||||||||||||||||||
Commercial | — | — | ||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||
Consumer - real estate | 7 | 28 | ||||||||||||||||||||||||
Consumer - other | — | 1 | ||||||||||||||||||||||||
Residential: | ||||||||||||||||||||||||||
Residential | 651 | 1,810 | ||||||||||||||||||||||||
Total | $ | 2,285 | $ | 4,863 | ||||||||||||||||||||||
The following tables present loans individually evaluated for impairment by class of loans as of December 31, 2013 and 2012: | ||||||||||||||||||||||||||
Impaired Loans | For the Twelve Months Ended | |||||||||||||||||||||||||
As of December 31, 2013 | December 31, | |||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||
Unpaid Principal | Recorded | Related | Average | Interest | ||||||||||||||||||||||
Balance | Investment | Allowance | Recorded | Income | ||||||||||||||||||||||
Investment | Recognized | |||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Commercial Real Estate - Construction | — | — | — | — | — | |||||||||||||||||||||
Commercial Real Estate - Other | 1,789 | 1,788 | — | 1,894 | 104 | |||||||||||||||||||||
Consumer - Real Estate | 8 | 7 | — | 7 | — | |||||||||||||||||||||
Consumer - Other | — | — | — | — | — | |||||||||||||||||||||
Residential | 954 | 722 | — | 727 | 6 | |||||||||||||||||||||
With a specific allowance recorded: | ||||||||||||||||||||||||||
Commercial | — | — | — | — | — | |||||||||||||||||||||
Commercial Real Estate - Construction | 1,589 | 173 | 48 | 173 | — | |||||||||||||||||||||
Commercial Real Estate - Other | 3,980 | 3,391 | 182 | 3,397 | 94 | |||||||||||||||||||||
Consumer - Real Estate | — | — | — | — | — | |||||||||||||||||||||
Consumer - Other | — | — | — | — | — | |||||||||||||||||||||
Residential | 53 | 30 | 5 | 30 | — | |||||||||||||||||||||
Totals: | ||||||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Commercial Real Estate - Construction | $ | 1,589 | $ | 173 | $ | 48 | $ | 173 | $ | — | ||||||||||||||||
Commercial Real Estate - Other | $ | 5,769 | $ | 5,179 | $ | 182 | $ | 5,291 | $ | 198 | ||||||||||||||||
Consumer - Real Estate | $ | 8 | $ | 7 | $ | — | $ | 7 | $ | — | ||||||||||||||||
Consumer - Other | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Residential | $ | 1,007 | $ | 752 | $ | 5 | $ | 757 | $ | 6 | ||||||||||||||||
For the Twelve Months Ended | ||||||||||||||||||||||||||
Impaired Loans | December 31, | |||||||||||||||||||||||||
As of December 31, 2012 | 2012 | |||||||||||||||||||||||||
Unpaid Principal | Recorded | Related | Average | Interest | ||||||||||||||||||||||
Balance | Investment | Allowance | Recorded | Income | ||||||||||||||||||||||
Investment | Recognized | |||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Commercial Real Estate - Construction | 1,589 | 173 | — | 173 | — | |||||||||||||||||||||
Commercial Real Estate - Other | 4,869 | 4,535 | — | 5,084 | 138 | |||||||||||||||||||||
Consumer - Real Estate | 33 | 28 | — | 34 | — | |||||||||||||||||||||
Consumer - Other | 1 | 1 | — | 3 | — | |||||||||||||||||||||
Residential | 1,365 | 1,194 | — | 1,359 | — | |||||||||||||||||||||
With a specific allowance recorded: | ||||||||||||||||||||||||||
Commercial | — | — | — | — | — | |||||||||||||||||||||
Commercial Real Estate - Construction | — | — | — | — | — | |||||||||||||||||||||
Commercial Real Estate - Other | 2,138 | 2,127 | 101 | 2,167 | 80 | |||||||||||||||||||||
Consumer - Real Estate | — | — | — | — | — | |||||||||||||||||||||
Consumer - Other | — | — | — | — | — | |||||||||||||||||||||
Residential | 616 | 616 | 141 | 642 | — | |||||||||||||||||||||
Totals: | ||||||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Commercial Real Estate - Construction | $ | 1,589 | $ | 173 | $ | — | $ | 173 | $ | — | ||||||||||||||||
Commercial Real Estate - Other | $ | 7,007 | $ | 6,662 | $ | 101 | $ | 7,251 | $ | 218 | ||||||||||||||||
Consumer - Real Estate | $ | 33 | $ | 28 | $ | — | $ | 34 | $ | — | ||||||||||||||||
Consumer - Other | $ | 1 | $ | 1 | $ | — | $ | 3 | $ | — | ||||||||||||||||
Residential | $ | 1,981 | $ | 1,810 | $ | 141 | $ | 2,001 | $ | — | ||||||||||||||||
As of December 31, 2013 no additional funds are committed to be advanced in connection with impaired loans. | ||||||||||||||||||||||||||
A restructuring of debt constitutes a troubled debt restructuring (“TDR”) if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. That concession either stems from an agreement between the creditor and the debtor or is imposed by law or a court. The Company adheres to ASC 310-40, Troubled Debt Restructurings by Creditors, to determine whether a TDR applies in a particular instance. Prior to loans being modified and classified as a TDR, specific reserves are generally assessed, as most these loans have been specifically allocated for as part of the Company’s normal loan loss provisioning methodology. The Company allocated $230 and $13 reserves for the TDR loans at December 31, 2013 and December 31, 2012, respectively. The Company classifies all TDR loans as impaired loans in the table above. | ||||||||||||||||||||||||||
The following table summarizes the loans that were modified as a TDR during the period ended December 31, 2013 and 2012. | ||||||||||||||||||||||||||
For the Twelve Months Ended | ||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||
Number | Pre-Modification | Post-Modification | Troubled Debt Restructurings | |||||||||||||||||||||||
of | Outstanding | Outstanding | That Subsequently Defaulted | |||||||||||||||||||||||
Contracts | Recorded | Recorded | ||||||||||||||||||||||||
Investments | Investment | Number | Recorded | |||||||||||||||||||||||
of | Investment | |||||||||||||||||||||||||
Contracts | ||||||||||||||||||||||||||
Troubled Debt Restructurings | ||||||||||||||||||||||||||
Commercial Real Estate - Construction | — | $ | — | $ | — | — | $ | — | ||||||||||||||||||
Commercial Real Estate - Other | 1 | 412 | 412 | — | — | |||||||||||||||||||||
Commercial - non real estate | — | — | — | — | — | |||||||||||||||||||||
Residential | 2 | 337 | 337 | — | — | |||||||||||||||||||||
Total | 3 | $ | 749 | $ | 749 | — | $ | — | ||||||||||||||||||
For the Twelve Months Ended | ||||||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||
Number | Pre-Modification | Post-Modification | Troubled Debt Restructurings | |||||||||||||||||||||||
of | Outstanding | Outstanding | That Subsequently Defaulted | |||||||||||||||||||||||
Contracts | Recorded | Recorded | ||||||||||||||||||||||||
Investments | Investment | Number | Recorded | |||||||||||||||||||||||
of | Investment | |||||||||||||||||||||||||
Contracts | ||||||||||||||||||||||||||
Troubled Debt Restructurings | ||||||||||||||||||||||||||
Commerical Real Estate - Construction | — | $ | — | $ | — | — | $ | — | ||||||||||||||||||
Commercial Real Estate - Other | — | — | — | 1 | 53 | |||||||||||||||||||||
Consumer - Real Estate | 4 | 3,542 | 2,737 | — | — | |||||||||||||||||||||
Residential | — | — | — | — | — | |||||||||||||||||||||
Total | 4 | $ | 3,542 | $ | 2,737 | 1 | $ | 53 | ||||||||||||||||||
A modification of a loan constitutes a TDR when a borrower is experiencing financial difficulty and the modification constitutes a concession. The Company offers various types of concessions when modifying a loan, however, forgiveness of principal is rarely granted. Commercial loans modified in a TDR often involve temporary interest-only payments, term extensions, and converting revolving credit lines to term loans. | ||||||||||||||||||||||||||
Additional collateral, a co-borrower, or a guarantor may be requested. Commercial mortgage and construction loans modified in a TDR often involve reducing the interest rate for the remaining term of the loan, extending the maturity date at an interest rate lower than the current market rate for new debt with similar risk, or substituting or adding a new borrower or guarantor. | ||||||||||||||||||||||||||
Loans modified in a TDR may be on non-accrual status and partial charge-offs have in some cases already been taken against the outstanding loan balance. As a result, loans modified in a TDR for the Company may have the financial effect of increasing the specific allowance associated with the loan. The allowance for impaired loans that have been modified in a TDR is measured based on the estimated fair value of the collateral, less any selling costs, if the loan is collateral dependent or on the present value of expected future cash flows discounted at the loan’s effective interest rate if the loan is performing in accordance with the modified terms. Management exercises significant judgment in developing these estimates. | ||||||||||||||||||||||||||
The regulatory guidance requires loans to be accounted for as collateral-dependent loans when borrowers have filed Chapter 7 bankruptcy, the debt has been discharged and the borrower has not reaffirmed the debt, regardless of the delinquency status of the loan. The filing of bankruptcy by the borrower is evidence of financial difficulty and the discharge of the obligation by the bankruptcy court is deemed to be a concession granted to the borrower. | ||||||||||||||||||||||||||
At December 31, 2013, there were no additional commitments to lend additional funds to the related debtors whose terms have been modified in a TDR. | ||||||||||||||||||||||||||
The Bank uses the following guidelines as stated in policy to determine when to realize a charge-off, whether a partial or full loan balance. A charge down in whole or in part is realized when unsecured consumer loans, credit card credits and overdraft lines of credit reach 90 days delinquency. At 120 days delinquent, secured consumer loans are charged down to the value of collateral, if repossession of the collateral is assured and/or in the process of repossession. Consumer mortgage loan deficiencies are charged down upon the sale of the collateral or sooner upon the recognition of collateral deficiency. Commercial credits are charged down at 90 days delinquency, unless an established and approved work-out plan is in place or litigation of the credit will likely result in recovery of the loan balance. Upon notification of bankruptcy, unsecured debt is charged off. Additional charge-off may be realized as further unsecured positions are recognized. | ||||||||||||||||||||||||||
The 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 years ended December 31, 2013 and 2012: | ||||||||||||||||||||||||||
For the Year Ended December 31, 2013 | ||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Consumer | Consumer | Residential | Unallocated | Total | |||||||||||||||||||
Construction | Real Estate | Real Estate | ||||||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||
Beginning Balance | $ | 64 | $ | 579 | $ | 69 | $ | 99 | $ | 33 | $ | 906 | $ | — | $ | 1,750 | ||||||||||
Charge-offs | — | (674 | ) | — | (40 | ) | (13 | ) | (464 | ) | — | (1,191 | ) | |||||||||||||
Recoveries | — | 114 | — | 36 | 6 | 120 | — | 276 | ||||||||||||||||||
Provision | (16 | ) | 425 | (6 | ) | (33 | ) | (5 | ) | 222 | 50 | 637 | ||||||||||||||
Ending Balance | $ | 48 | $ | 444 | $ | 63 | $ | 62 | $ | 21 | $ | 784 | $ | 50 | $ | 1,472 | ||||||||||
Ending balance: individually evaluated for impairment | $ | 48 | $ | 182 | $ | — | $ | — | $ | — | $ | 5 | $ | — | $ | 235 | ||||||||||
Ending balance: loans collectively evaluated for impairment | $ | — | $ | 262 | $ | 63 | $ | 62 | $ | 21 | $ | 779 | $ | 50 | $ | 1,237 | ||||||||||
Loans: | ||||||||||||||||||||||||||
Ending Balance | $ | 173 | $ | 51,726 | $ | 12,451 | $ | 8,730 | $ | 1,165 | $ | 63,839 | $ | — | $ | 138,084 | ||||||||||
Ending balance: individually evaluated for impairment | $ | 173 | $ | 5,179 | $ | — | $ | 7 | $ | — | $ | 752 | $ | — | $ | 6,111 | ||||||||||
Ending balance: loans collectively evaluated for impairment | $ | — | $ | 46,547 | $ | 12,451 | $ | 8,723 | $ | 1,165 | $ | 63,087 | $ | — | $ | 131,973 | ||||||||||
For the Year Ended December 31, 2012 | ||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Consumer | Consumer | Residential | Unallocated | Total | |||||||||||||||||||
Construction | Real Estate | Real Estate | ||||||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||
Beginning Balance | $ | 10 | $ | 393 | $ | 53 | $ | 146 | $ | 46 | $ | 870 | $ | — | $ | 1,518 | ||||||||||
Charge-offs | — | (265 | ) | — | (87 | ) | (44 | ) | (840 | ) | — | (1,236 | ) | |||||||||||||
Recoveries | — | 10 | — | 16 | 10 | 65 | — | 101 | ||||||||||||||||||
Provision | 54 | 441 | 16 | 24 | 21 | 811 | — | 1,367 | ||||||||||||||||||
Ending Balance | $ | 64 | $ | 579 | $ | 69 | $ | 99 | $ | 33 | $ | 906 | $ | — | $ | 1,750 | ||||||||||
Ending balance: individually evaluated for impairment | $ | — | $ | 101 | $ | — | $ | — | $ | — | $ | 141 | $ | — | $ | 242 | ||||||||||
Ending balance: loans collectively evaluated for impairment | $ | 64 | $ | 478 | $ | 69 | $ | 99 | $ | 33 | $ | 765 | $ | — | $ | 1,508 | ||||||||||
Loans: | ||||||||||||||||||||||||||
Ending Balance | $ | 2,246 | $ | 52,427 | $ | 8,102 | $ | 10,409 | $ | 1,259 | $ | 66,539 | $ | — | $ | 140,982 | ||||||||||
Ending balance: individually evaluated for impairment | $ | 173 | $ | 6,662 | $ | — | $ | 28 | $ | 1 | $ | 1,810 | $ | — | $ | 8,674 | ||||||||||
Ending balance: loans collectively evaluated for impairment | $ | 2,073 | $ | 45,765 | $ | 8,102 | $ | 10,381 | $ | 1,258 | $ | 64,729 | $ | — | $ | 132,308 |
Property_and_Equipment
Property and Equipment | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property And Equipment | ' | |||||||
Property and Equipment | ' | |||||||
Note 4 - Property and Equipment | ||||||||
A summary of property and equipment is as follows: | ||||||||
31-Dec | ||||||||
2013 | 2012 | |||||||
Land | $ | 1,071 | $ | 1,112 | ||||
Land improvements | 182 | 184 | ||||||
Buildings | 6,237 | 6,249 | ||||||
Equipment | 3,523 | 3,682 | ||||||
Total property and equipment | 11,013 | 11,227 | ||||||
Accumulated depreciation | 5,810 | 5,833 | ||||||
Net property and equipment | $ | 5,203 | $ | 5,394 | ||||
Depreciation expense was $283 and $303 for the periods ended December 31, 2013 and 2012, respectively. |
Servicing
Servicing | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Servicing | ' | |||||||
Servicing | ' | |||||||
Note 5 - Servicing | ||||||||
Loans serviced for others are not included in the accompanying consolidated balance sheet. The unpaid principal balances of mortgage and other loans serviced for others were approximately $131.7 million and $140.7 million at December 31, 2013 and 2012, respectively. | ||||||||
The key economic assumptions used in determining the fair value of the mortgage servicing rights are as follows: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Annual constant prepayment speed (CPR) | 10.27% | 17.86% | ||||||
Weighted average life (in months) | 244 | 246 | ||||||
Discount rate | 9.26% | 8.11% | ||||||
The fair value of our mortgage servicing rights was estimated to be $1.1 million and $1.0 million at December 31, 2013 and December 31, 2012, respectively. At December 31, 2012 a valuation allowance of $19 was established against the mortgage servicing rights associated with our 20-year fixed-rate sold loans. Based on decreased prepayment speeds within the 20-year fixed rate tranche, the valuation allowance was removed in 2013. | ||||||||
The following table summarizes mortgage servicing rights capitalized and amortized, along with the aggregate activity in related valuation allowances: | ||||||||
31-Dec | ||||||||
2013 | 2012 | |||||||
Balance - beginning of period: | $ | 1,035 | $ | 993 | ||||
Originated mortgage servicing rights capitalized | 151 | 426 | ||||||
Amortization of mortgage servicing rights | (326 | ) | (384 | ) | ||||
Balance - end of period | 860 | 1,035 | ||||||
Valuation allowances: | ||||||||
Balance - beginning of period | (19 | ) | — | |||||
Additions | — | (19 | ) | |||||
Reductions | 19 | — | ||||||
Write-downs | — | — | ||||||
Balance - end of period (net of allowances) | $ | 860 | $ | 1,016 |
Intangible_Assets
Intangible Assets | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Intangible Assets | ' | ||||||||||
Intangible Assets | ' | ||||||||||
Note 6 - Intangible Assets | |||||||||||
Intangible assets of the Company are summarized as follows: | |||||||||||
31-Dec-13 | |||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||
Amortized intangible assets: | |||||||||||
Core deposit | $ | 25 | $ | 24 | $ | 1 | |||||
Commission residual | 600 | 561 | 39 | ||||||||
Total | $ | 625 | $ | 585 | $ | 40 | |||||
31-Dec-12 | |||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||
Amortized intangible assets: | |||||||||||
Core deposit | $ | 3,081 | $ | 3,078 | $ | 3 | |||||
Commission residual | 600 | 445 | 155 | ||||||||
Total | $ | 3,681 | $ | 3,523 | $ | 158 | |||||
Amortization expense was $118 and $177 for the periods ended December 31, 2013 and 2012, respectively. | |||||||||||
As discussed in Note 1, on February 27, 2009 the Company announced that it had sold the majority of the assets of the InsuranCenter of Alpena. The Company allocated the goodwill between the assets sold and the assets retained. | |||||||||||
The assets retained relate to a future stream of commissions related to the override commission discussed earlier. Under an agreement, the Company will receive a portion of the override commission through April, 2014. Management computed an estimated cash flow on this commission and using a 6.0% discount rate determined a fair value of $600. Since the $600 allocation of fair value relates to a finite life asset, the Company re-characterized the goodwill as an amortizable intangible and began amortizing the asset in March, 2009. | |||||||||||
The following table sets forth the amount of remaining amortization for intangibles assets: | |||||||||||
For the year | |||||||||||
ended | |||||||||||
December 31, | |||||||||||
2014 | |||||||||||
Core deposit | 1 | ||||||||||
Commission residual | 39 | ||||||||||
Total | 40 |
Deposits
Deposits | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Deposits [Abstract] | ' | |||||||||||||||||||
Deposits | ' | |||||||||||||||||||
Note 7 - Deposits | ||||||||||||||||||||
Deposit accounts, by type and range of rates, consist of the following: | ||||||||||||||||||||
31-Dec | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Account Type | ||||||||||||||||||||
NOW accounts and MMDA | $ | 50,222 | $ | 44,218 | ||||||||||||||||
Regular savings accounts | 22,037 | 19,867 | ||||||||||||||||||
Total | 72,259 | 64,085 | ||||||||||||||||||
Certificate of Deposit Rates | ||||||||||||||||||||
0.50 percent to 0.99 percent | 40,259 | 42,698 | ||||||||||||||||||
1.00 percent to 1.99 percent | 17,715 | 15,962 | ||||||||||||||||||
2.00 percent to 2.99 percent | 7,130 | 10,746 | ||||||||||||||||||
3.00 percent to 3.99 percent | 1,486 | 3,398 | ||||||||||||||||||
4.00 percent to 4.99 percent | 133 | 394 | ||||||||||||||||||
Total certificate of deposits | 66,723 | 73,198 | ||||||||||||||||||
Total interest-bearing deposits | $ | 138,982 | $ | 137,283 | ||||||||||||||||
Certificates of deposit $100 or greater at December 31, 2013 and 2012 were $22.9 million and $26.0 million, respectively. | ||||||||||||||||||||
The following table sets forth the amount and maturities of certificates of deposit: | ||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||
Amount Due | ||||||||||||||||||||
Rate | Less than | 2-Jan | 3-Feb | 5-Mar | Greater | Total | ||||||||||||||
1 Year | Years | Years | Years | than | ||||||||||||||||
5 Years | ||||||||||||||||||||
0.50 percent to 0.99 percent | $ | 27,892 | $ | 11,193 | $ | 877 | $ | 297 | $ | — | $ | 40,259 | ||||||||
1.00 percent to 1.99 percent | 3,324 | 953 | 6,408 | 3,315 | 3,715 | 17,715 | ||||||||||||||
2.00 percent to 2.99 percent | 1,313 | 3,861 | 409 | 51 | 1,496 | 7,130 | ||||||||||||||
3.00 percent to 3.99 percent | 422 | 494 | — | 12 | 558 | 1,486 | ||||||||||||||
4.00 percent to 4.99 percent | — | 46 | 33 | 54 | — | 133 | ||||||||||||||
Total | $ | 32,951 | $ | 16,547 | $ | 7,727 | $ | 3,729 | $ | 5,769 | $ | 66,723 | ||||||||
Interest expense on deposits is summarized as follows: | ||||||||||||||||||||
Year Ended December 31 | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
NOW and MMDAs | $ | 98 | $ | 95 | ||||||||||||||||
Regular savings | 11 | 10 | ||||||||||||||||||
Certificates of deposit | 717 | 929 | ||||||||||||||||||
Total | $ | 826 | $ | 1,034 | ||||||||||||||||
Deposits from related parties held by the Bank at December 31, 2013 and 2012 amounted to $632 and $1.3 million, respectively. |
Federal_Home_Loan_Bank_and_Fed
Federal Home Loan Bank and Federal Reserve Advances | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Federal Home Loan Bank And Federal Reserve Advances | ' | |||||||
Federal Home Loan Bank and Federal Reserve Advances | ' | |||||||
Note 8 - Federal Home Loan Bank and Federal Reserve Advances | ||||||||
The Bank has advances from the Federal Home Loan Bank of Indianapolis. Interest rates range from 0.30% to 2.21% with a weighted average interest rate of 1.00%. These advances contain varying maturity dates through January 3, 2023 with a weighted average maturity of approximately 32 months. The advances are collateralized by approximately $49.6 million and $50.0 million of mortgage loans as of December 31, 2013 and 2012, respectively. In addition, at December 31, 2013 and 2012, securities with a carrying value of $20.4 million and $31.7 million, respectively, were pledged as collateral for Federal Home Loan Bank advances. | ||||||||
Available borrowings with the Federal Home Loan Bank at December 31, 2013 totaled $52.0 million, of which $24.8 million was outstanding. | ||||||||
The advances are subject to prepayment penalties subject to the provisions and conditions of the credit policy of the Federal Home Loan Bank. Future maturities of the advances are as follows: | ||||||||
31-Dec-13 | ||||||||
Years Ending | Amount | Weighted Average | ||||||
31-Dec | Interest Rate | |||||||
2014 | $ | 7,715 | 0.44 | |||||
2015 | 2,526 | 0.81 | ||||||
2016 | 6,938 | 1.15 | ||||||
2017 | 5,729 | 1.49 | ||||||
2018 | 661 | 1.17 | ||||||
Thereafter | 1,244 | 1.61 | ||||||
Total | $ | 24,813 | 1 | |||||
The Bank had $1.5 million and $0 of variable rate advances outstanding as of December 31, 2013 and 2012, respectively. | ||||||||
In 2009, the Bank entered into a discount window loan agreement with the Federal Reserve Bank that allows for advances up to seventy-five percent of the collateral balance. As of December 31, 2013, these advances are secured by investment securities with a fair value of approximately $7.9 million and are generally due within 28 days from the date of the advance. The interest rate on the advances is based on the quoted Federal Reserve discount window rate (effective rate of 0.75 percent as of December 31, 2013). At December 31, 2013 and 2012, the Bank had no outstanding advances. |
Federal_Income_Tax
Federal Income Tax | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Federal Income Tax | ' | |||||||
Federal Income Tax | ' | |||||||
Note 9 - Federal Income Tax | ||||||||
Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be reversed. The Company and the Bank file a consolidated Federal income tax return. | ||||||||
The analysis of the consolidated provision for federal income tax is as follows: | ||||||||
Year Ended December 31 | ||||||||
2013 | 2012 | |||||||
Current provision | $ | — | $ | — | ||||
Deferred benefit | (57 | ) | (138 | ) | ||||
Change in valuation allowance | 57 | 138 | ||||||
Total | $ | — | $ | — | ||||
A reconciliation of the federal income tax expense and the amount computed by applying the statutory federal income tax rate (34 percent) to income before federal income tax is as follows: | ||||||||
Year Ended December 31 | ||||||||
2013 | 2012 | |||||||
Tax (benefit) expense at statutory rate | $ | 19 | $ | (73 | ) | |||
Increase (decrease) from: | ||||||||
Change in valuation allowance | 57 | 138 | ||||||
Tax-exempt interest | (52 | ) | (52 | ) | ||||
Other | (24 | ) | (13 | ) | ||||
Total income tax expense | $ | — | $ | — | ||||
The net deferred tax asset was comprised of the following temporary differences: | ||||||||
31-Dec | ||||||||
2013 | 2012 | |||||||
Deferred tax assets: | ||||||||
Other real estate owned | $ | 92 | $ | 96 | ||||
Non-accrual loan interest | 49 | 65 | ||||||
Directors’ benefit plan | 272 | 274 | ||||||
Net operating loss carryforward | 3,684 | 3,536 | ||||||
Investment in subsidiary | 784 | 784 | ||||||
Net deferred loan origination fees | 101 | 109 | ||||||
Unrealized loss on available-for-sale securities | 83 | — | ||||||
Other | 246 | 192 | ||||||
Total deferred tax assets | 5,311 | 5,056 | ||||||
Less: valuation allowance | 3,223 | 3,166 | ||||||
Deferred tax liabilities: | ||||||||
Allowance for loan losses | 322 | 158 | ||||||
Mortgage servicing rights | 292 | 345 | ||||||
Partnership losses | 124 | 117 | ||||||
Unrealized gain on available-for-sale securities | — | 385 | ||||||
Depreciation | 344 | 343 | ||||||
Other | 207 | 211 | ||||||
Total deferred tax liabilities | 1,289 | 1,559 | ||||||
Net deferred tax asset | $ | 799 | $ | 331 | ||||
The Company has net operating loss carryforwards of approximately $10.8 million generated from December 31, 2007 through December 31, 2013 that are available to reduce total taxable income through the years ending December 31, 2033. | ||||||||
For tax years beginning prior to January 1, 1996, a qualified thrift institution was allowed a bad debt deduction for tax purposes based on a percentage of taxable income or on actual experience. The Bank used the percentage of taxable income method through December 31, 1995. | ||||||||
A deferred tax liability has not been recognized for the tax bad debt base year reserves of the Bank. The base year reserves are the balance of reserves as of December 31, 1987. At December 31, 2013 and 2012, the amount of those reserves was approximately $60. The amount of the unrecognized deferred tax liability at December 31, 2013 and 2012 was approximately $20. | ||||||||
Off_Balance_Sheet_Risk_Commitm
Off Balance Sheet Risk Commitments and Contingencies | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Off Balance Sheet Risk Commitments And Contingencies | ' | |||||||
Off Balance Sheet Risk Commitments and Contingencies | ' | |||||||
Note 10 – Off-Balance Sheet Risk Commitments and Contingencies | ||||||||
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 letters of credit. These financial instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated statement of financial condition. | ||||||||
The Bank’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance-sheet instruments. | ||||||||
The following financial instruments were outstanding whose contract amounts represent credit risk: | ||||||||
31-Dec | ||||||||
2013 | 2012 | |||||||
Commitments to grant loans | $ | 5,936 | $ | 9,498 | ||||
Unfunded commitments under lines of credit | 12,940 | 13,074 | ||||||
Commercial and standby letters of credit | 59 | 4 | ||||||
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The commitments for equity lines of credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if it is deemed necessary by the Company, is based on management’s credit evaluation of the customer. | ||||||||
Unfunded commitments under commercial lines of credit, revolving credit lines, and overdraft protection agreements are commitments for possible future extensions of credit to existing customers. In most cases, these lines of credit are collateralized and usually do not contain a specified maturity date and may not be drawn upon to the total extent to which the Company is committed. | ||||||||
Commercial and standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those letters of credit are primarily used to support public and private borrowing arrangements. Essentially all letters of credit issued have expiration dates within one year. Fees earned on commercial and standby letters of credit are required to be deferred over the contractual life of the letter of credit. The Company determined that the fair value of guarantees on standby letters of credit has an immaterial effect on the financial results at December 31, 2013 and 2012. | ||||||||
To reduce credit risk related to the use of credit-related financial instruments, the Company generally holds collateral supporting those commitments if deemed necessary. The amount and nature of the collateral obtained is based on the Company’s credit evaluation of the customer. Collateral held varies, but may include cash, securities, accounts receivable, inventory, property, plant, equipment, and real estate. | ||||||||
If the counterparty does not have the right and ability to redeem the collateral or the Company is permitted to sell or repledge the collateral on short notice, the Company records the collateral in its balance sheet at fair value with a corresponding obligation to return it. | ||||||||
Various legal claims also arise from time to time in the normal course of business, which, in the opinion of management, will have no material effect on the Company’s financial statements. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Stockholders' equity: | ' | |||||||||||||||||||
Stockholders' Equity | ' | |||||||||||||||||||
Note 11 - Stockholders’ Equity | ||||||||||||||||||||
Payment of dividends on the common stock is subject to determination and declaration by the Board of Directors and depends on a number of factors, including capital requirements, regulatory limitation on payment of dividends, the Bank’s results of operations and financial condition, tax considerations, and general economic conditions. | ||||||||||||||||||||
The Bank is subject to various regulatory capital requirements which were administered by the Office of Thrift Supervision (OTS) until July 21, 2011. Effective that date, supervisory responsibility for federal savings associations was transferred to the Office of the Comptroller of the Currency (OCC). Failure to meet certain capital requirements can initiate certain mandatory and possibly additional discretionary action by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators regarding components, risk-weightings, and other factors. | ||||||||||||||||||||
During the most recent regulatory examination, the OCC categorized the Bank as “well-capitalized” per definition of 12 CFR Section 565.4(b)(1). To be categorized as well-capitalized, the Bank must maintain minimum total risk-based, tier 1 risk based, and tangible equity ratios as set forth in the table below. There are no conditions or events since that notification that management believes have changed the Bank’s categorization. Consolidated data has not been disclosed as the amounts and ratios are not significantly different. | ||||||||||||||||||||
Actual | For Capital | To be Categorized as | ||||||||||||||||||
Adequacy Purposes | Well-Capitalized Under | |||||||||||||||||||
Prompt Corrective | ||||||||||||||||||||
Action Provisions | ||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||
Total capital (to risk-weighted assets) | $ | 24,033 | 17.9 | % | $ | 10,748 | 8 | % | $ | 13,436 | 10 | % | ||||||||
Tier 1 capital (to risk-weighted assets) | $ | 22,563 | 16.8 | % | $ | 5,374 | 4 | % | $ | 8,061 | 6 | % | ||||||||
Tangible capital (to tangible assets) | $ | 22,563 | 10.8 | % | $ | 3,137 | 1.5 | % | $ | 4,183 | 2 | % | ||||||||
31-Dec-12 | ||||||||||||||||||||
Total capital (to risk-weighted assets) | $ | 23,723 | 17.4 | % | $ | 10,930 | 8 | % | $ | 13,663 | 10 | % | ||||||||
Tier 1 capital (to risk-weighted assets) | $ | 22,015 | 16.1 | % | $ | 5,465 | 4 | % | $ | 8,198 | 6 | % | ||||||||
Tangible capital (to tangible assets) | $ | 22,015 | 10.3 | % | $ | 3,197 | 1.5 | % | $ | 4,263 | 2 | % |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Employee Benefit Plans | ' | |||||||||||||
Employee Benefit Plans | ' | |||||||||||||
Note 12 - Employee Benefit Plans | ||||||||||||||
Defined Benefit Pension Plan | ||||||||||||||
The Bank is a participant in the multiemployer Financial Institutions Retirement Fund (FIRF or the “Plan”), which covers substantially all of its officers and employees. The defined benefit plan covers all employees who have completed one year of service, attained age 21, and worked at least 1,000 hours during the year. Normal retirement age is 65, with reduced benefits available at age 55. The Bank’s contributions are determined by FIRF and generally represent the normal cost of the Plan. Specific Plan assets and accumulated benefit information for the Bank’s portion of the Plan are not available. Under the Employee Retirement Income Security Act of 1974 (ERISA), a contributor to a multiemployer pension plan may be liable in the event of complete or partial withdrawal for the benefit payments guaranteed under ERISA. Effective July 1, 2005 the plan was frozen as to current participants and any new employees hired after July 1, 2004 were excluded from the plan. The expense of the Plan allocated to the Bank was $72 and $87 for the years ended December 31, 2013 and 2012, respectively. | ||||||||||||||
401(k) Savings Plan | ||||||||||||||
The Bank has a 401(k) savings plan covering substantially all of its employees who meet certain age and service requirements. Contributions to the plan by the Bank are discretionary in nature in such amounts determined by the Board of Directors. The expense under the plan for the years ended December 31, 2013 and 2012 was $89 and $94, respectively. | ||||||||||||||
Nonqualified Deferred Compensation Plan | ||||||||||||||
The Bank has a nonqualified deferred compensation plan for certain of its directors. Through 1998, each eligible director could voluntarily defer all or part of his or her director’s fees to participate in the program. The plan is currently unfunded and amounts deferred are unsecured and remain subject to claims of the Bank’s general creditors. | ||||||||||||||
Directors are paid once they reach normal retirement age or sooner for reason of death, total disability, or termination. The Bank may terminate the plan at any time. The amount recorded under the plan totaled approximately $801 and $807 at December 31, 2013 and 2012, respectively. The expense under the plan for the years ended December 31, 2013 and 2012 was $78 and $71, respectively. | ||||||||||||||
Employee Stock Ownership Plan | ||||||||||||||
Effective January 1, 1994, the Bank implemented an employee stock ownership plan (ESOP). The ESOP covers substantially all employees who have completed one year of service, attained age 21, and worked at least 1,000 hours during the year. To fund the ESOP, the Bank borrowed $480 from an outside party to purchase 48,000 shares of the Company’s common stock at $10 per share. The ESOP note was payable quarterly with interest at the prime rate and was retired in 1999. All of the 1994 shares were allocated as of December 31, 1999. Compensation expense is measured by the fair value of ESOP shares allocated to participants during a fiscal year. | ||||||||||||||
Pursuant to the 2005 second-step conversion and stock offering, the shareholders of the Company approved the purchase of 8% of shares sold in the stock offering by the ESOP. | ||||||||||||||
The Company provided a loan to the ESOP, which was used to purchase 138,709 shares of the Company’s common stock in the stock offering at $10 per share. The loan bore interest at a rate equal to the current prime rate, adjustable on January 1 of each year and provided for repayment of principal over the 15 year term of the loan. Since the Company provided the loan to the ESOP, the note receivable was not included in the Company’s balance sheet. Accordingly, the Company did not recognize interest income on the loan. | ||||||||||||||
The Company made annual contributions to the ESOP sufficient to support the debt service of the loan. The loan was secured by the shares purchased, which were held in a suspense account for allocation among the participants as the loan is paid. Dividends paid on unallocated shares were not considered dividends for financial reporting purposes and were used to pay principal and interest on the ESOP loan. Dividends on allocated shares are charged to retained earnings. | ||||||||||||||
The loan was paid in full as of December 31, 2009. | ||||||||||||||
Compensation expense is recognized for the ESOP equal to the average fair value of shares committed to be released for allocation to participant accounts. Any difference between the average fair value of shares committed to be released for allocation and the ESOP’s original acquisition cost is charged or credited to stockholders’ equity (additional paid-in capital). During the years ended December 31, 2013 and 2012, respectively, 2,793 and 13,687 shares were sold into the open market and 0 and 15 shares were purchased from the open market. Total compensation expense was $0 for both the years ended December 31, 2013 and 2012. | ||||||||||||||
Shares held by the ESOP include the following: | ||||||||||||||
31-Dec | ||||||||||||||
2013 | 2012 | |||||||||||||
Allocated | 116,465 | 121,608 | ||||||||||||
Unallocated | — | — | ||||||||||||
Total | 116,465 | 121,608 | ||||||||||||
There were 1,.350 and 3,065 shares distributed to ESOP participants in 2013 and 2012, respectively. | ||||||||||||||
Stock-Based Compensation Plans | ||||||||||||||
The Company’s 1996 Stock Option Plan (the “1996 Plan”), which was approved by shareholders, permits the grant of stock options to its directors and employees for up to 127,491 shares of common stock (retroactively adjusted for the exchange ratio applied in the Company’s 2005 stock offering and related second-step conversion). The Company’s 2006 Stock-Based Incentive Plan (the “2006 Plan”), which was approved by the shareholders on May 17, 2006, permits the award of up to 242,740 shares of common stock of which the maximum number to be granted as Stock Options is 173,386 and the maximum that can be granted as Restricted Stock Awards is 69,354. Option awards are granted with an exercise price equal to the market price of the Company’s stock at the date of grant; those option awards generally vest based on five years of continual service and have ten year contractual terms. Certain options provide for accelerated vesting if there is a change in control (as defined in the Plans). Shares issued under the Plan and exercised pursuant to the exercise of the stock option plan may be either authorized but unissued shares or reacquired shares held by the Company as treasury stock. | ||||||||||||||
Stock Options - A summary of option activity under the Plans during the years ended December 31, 2013 and 2012 is presented below: | ||||||||||||||
Options | Shares | Weighted- | Weighted-Average | Aggregate | ||||||||||
Average | Remaining | Intrinsic Value | ||||||||||||
Exercise Price | Contractual Term | |||||||||||||
(Years) | ||||||||||||||
Outstanding at January 1, 2012 | 182,682 | $ | 9.47 | 4.3 | — | |||||||||
Granted | — | $ | 0 | |||||||||||
Exercised | — | $ | 0 | |||||||||||
Forfeited or Expired | (15,062 | ) | $ | 8.81 | ||||||||||
Outstanding at December 31, 2012 | 167,620 | $ | 9.53 | 3.38 | — | |||||||||
Granted | — | $ | 0 | |||||||||||
Exercised | — | $ | 0 | |||||||||||
Forfeited or expired | (17,590 | ) | $ | 9.6 | ||||||||||
Oustanding at December 31, 2013 | 150,030 | $ | 9.52 | 2.4 | — | |||||||||
Options Exercisable at December 31, 2013 | 150,030 | $ | 9.52 | 2.4 | — | |||||||||
There were 54,656 shares available for future granting of options as of December 31, 2013. | ||||||||||||||
The aggregate intrinsic value of outstanding options shown in the table above represents the total pretax intrinsic value (i.e. the difference between the Company’s closing stock price of $5.40 on December 31, 2013 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 December 31, 2013. The amount changes based on the fair market value of the stock. This value was $0.00 at both December 31, 2013 and 2012. The exercise prices for the stock options range from $7.60 to $9.65 per share. | ||||||||||||||
As of December 31, 2013, the total compensation cost of the Plans were fully recognized. The total fair value of shares vested during the year ended December 31, 2013 and 2012 was $0 and $4, respectively. Compensation expense for 2013 and 2012 related to options granted under this plan was $0 and $1, respectively. | ||||||||||||||
All stock options were fully vested at December 31, 2013 and 2012, respectively. | ||||||||||||||
Restricted Stock Awards – The Company did not grant any award shares during the years ended December 31, 2013 and 2012. Compensation expense for 2013 and 2012 related to awards granted under this plan was $0 and $1, respectively. | ||||||||||||||
The shares vest over a five year service period. As of December 31, 2013, the total compensation cost of the Plan was fully recognized. In addition, there were no restricted stock awards under the plan that were unvested at December 31, 2013 and 2012, respectively. | ||||||||||||||
There were 5,304 shares available for future grants of award shares at December 31, 2013. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
FAIR VALUE MEASUREMENTS | ' | ||||||||||||||||
Note 13 - Fair Value Measurements | |||||||||||||||||
Accounting standards require certain assets and liabilities be reported at fair value in the financial statements and provide a framework for establishing that fair value. The framework for determining fair value is based on a hierarchy that prioritizes the inputs and valuation techniques used to measure fair value. | |||||||||||||||||
The following tables present information about the Company’s assets measured at fair value on a recurring basis at December 31, 2013 and 2012 and the valuation techniques used by the Company to determine those fair values. | |||||||||||||||||
In general, fair values determined by Level 1 inputs use quoted prices in active markets for identical assets that the Company has the ability to access. | |||||||||||||||||
Fair values determined by Level 2 inputs use other inputs that are observable, either directly or indirectly. These Level 2 inputs include quoted prices for similar assets in active markets and other inputs such as interest rates and yield curves that are observable at commonly quoted intervals. | |||||||||||||||||
Level 3 inputs are unobservable inputs, including inputs that are available in situations where there is little, if any, market activity for the related asset. These Level 3 fair value measurements are based primarily on management’s own estimates using pricing models, discounted cash flow methodologies, or similar techniques taking into account the characteristics of the asset. | |||||||||||||||||
In instances whereby inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. The Company’s assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset. | |||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis at December 31, 2013 | |||||||||||||||||
Quoted Prices | Significant | Significant | Balance at | ||||||||||||||
in Active | Other | Unobservable | December 31, | ||||||||||||||
Markets for | Observable | Inputs | 2013 | ||||||||||||||
Identical Assets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
Investment securities - available-for-sale: | |||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | — | $ | 7,042 | $ | — | $ | 7,042 | |||||||||
Municipal notes | — | 13,609 | — | 13,609 | |||||||||||||
Corporate securities | — | 1,097 | 1,097 | ||||||||||||||
Mortgage-backed securities | — | 28,603 | — | 28,603 | |||||||||||||
Equity securities | — | 7 | — | 7 | |||||||||||||
Total investment securities - available-for-sale | $ | — | $ | 50,358 | $ | — | $ | 50,358 | |||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis at December 31, 2012 | |||||||||||||||||
Quoted Prices | Significant | Significant | Balance at | ||||||||||||||
in Active | Other | Unobservable | December 31, | ||||||||||||||
Markets for | Observable | Inputs | 2012 | ||||||||||||||
Identical Assets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
Investment securities - available-for-sale: | |||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | — | $ | 9,247 | $ | — | $ | 9,247 | |||||||||
Municipal notes | — | 10,758 | — | 10,758 | |||||||||||||
Corporate securities | — | 1,150 | 1,150 | ||||||||||||||
Mortgage-backed securities | — | 29,608 | — | 29,608 | |||||||||||||
Equity securities | — | 1 | — | 1 | |||||||||||||
Total investment securities - available-for-sale | $ | — | $ | 50,764 | $ | — | $ | 50,764 | |||||||||
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 during the years ended December 31, 2013 and 2012. For the available for sale securities, the Company obtains fair value measurements from an independent third-party service. | |||||||||||||||||
The Company also has assets that under certain conditions are subject to measurement at fair value on a nonrecurring basis. These assets include impaired loans (see Note 3) and other real estate owned. | |||||||||||||||||
The change in fair value of impaired loans is recorded through the allowance for loan losses. The Company estimates the fair value of impaired loans based on Level 3 inputs which include the present value of expected future cash flows using management’s best estimate of key assumptions. These assumptions include future payment ability, timing of payment streams, and estimated realizable values of available collateral (typically based on outside appraisals). | |||||||||||||||||
Other real estate owned assets are reported in the following table at initial recognition of impairment and on an ongoing basis until recovery or charge-off. At the time of foreclosure or repossession, real estate owned and repossessed assets are adjusted to fair value less estimated costs to sell, establishing a new cost basis. At that time, they are reported in the Company’s fair value disclosures in the following nonrecurring tables: | |||||||||||||||||
Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2013 | |||||||||||||||||
Balance at December 31, 2013 | Quoted Prices in | Significant Other | Significant | ||||||||||||||
Active Markets | Observable | Unobservable Inputs | |||||||||||||||
for Identical | Inputs (Level 2) | (Level 3) | |||||||||||||||
Assets (Level 1) | |||||||||||||||||
Impaired loans accounted for under FASB ASC 310-10 | $ | 5,352 | $ | — | $ | — | $ | 5,352 | |||||||||
Other real estate owned - residential mortgages | $ | 285 | $ | — | $ | — | $ | 285 | |||||||||
Other real estate owned - commercial | $ | 472 | $ | — | $ | — | $ | 472 | |||||||||
Other repossessed assets | $ | 1,023 | $ | — | $ | — | $ | 1,023 | |||||||||
Total assets at fair value on a non-recurring basis | $ | 7,132 | |||||||||||||||
Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2012 | |||||||||||||||||
Balance at | Quoted Prices in | Significant Other | Significant | ||||||||||||||
31-Dec-12 | Active Markets | Observable | Unobservable Inputs | ||||||||||||||
for Identical | Inputs (Level 2) | (Level 3) | |||||||||||||||
Assets (Level 1) | |||||||||||||||||
Impaired loans accounted for under FASB ASC 310-10 | $ | 6,835 | $ | — | $ | — | $ | 6,835 | |||||||||
Other real estate owned - residential mortgages | $ | 947 | $ | — | $ | — | $ | 947 | |||||||||
Other real estate owned - commercial | $ | 319 | $ | — | $ | — | $ | 319 | |||||||||
Other repossessed assets | $ | 1,121 | $ | — | $ | — | $ | 1,121 | |||||||||
Total assets at fair value on a non-recurring basis | $ | 9,222 | |||||||||||||||
The following methods and assumptions were used by the Company in estimating fair value disclosures for financial instruments: | |||||||||||||||||
Cash and Cash Equivalents - The carrying amounts of cash and short-term instruments approximate fair values. | |||||||||||||||||
Securities - Fair values of securities are based on quoted market prices. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. | |||||||||||||||||
Loans Receivable - For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. Fair values for other loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Fair values of nonperforming loans are estimated using discounted cash flow analyses or underlying collateral values, where applicable. | |||||||||||||||||
Federal Home Loan Bank Stock - The carrying value of Federal Home Loan Bank stock approximates fair value based on the redemption provisions of the Federal Home Loan Bank. | |||||||||||||||||
Deposit Liabilities - The fair values disclosed for demand deposits are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). The carrying amounts of variable-rate, fixed-term money market accounts and certificates of deposit approximate their fair values at the reporting date. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits. | |||||||||||||||||
Federal Home Loan Bank Advances - The estimated fair value of the fixed and variable rate Federal Home Loan Bank advances are estimated by discounting the related cash flows using the rates currently available for similarly structured borrowings with similar maturities. | |||||||||||||||||
REPO Sweep Accounts - The fair values disclosed for REPO Sweeps are equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). | |||||||||||||||||
Accrued Interest - The carrying amounts of accrued interest approximate fair value. | |||||||||||||||||
Other Financial Instruments - The fair value of other financial instruments, including loan commitments and unfunded letters of credit, based on discounted cash flow analyses, is not material. | |||||||||||||||||
The estimated fair values and related carrying amounts of the Company’s financial instruments as of December 31, 2013 and 2012 are as follows: | |||||||||||||||||
31-Dec-13 | Carrying | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Value | Estimated | ||||||||||||||||
Fair Value | |||||||||||||||||
(dollars in thousands) | |||||||||||||||||
Financial assets: | |||||||||||||||||
Cash and cash equivalents | $ | 2,766 | $ | 2,766 | $ | — | $ | — | $ | 2,766 | |||||||
Securities available for sale | 50,358 | — | 50,358 | — | 50,358 | ||||||||||||
Securities held to maturity | 2,255 | — | 2,400 | — | 2,400 | ||||||||||||
Loans held for sale | 175 | 178 | 178 | ||||||||||||||
Loans receivable - net | 136,315 | — | — | 135,172 | 135,172 | ||||||||||||
Federal Home Loan Bank stock | 3,266 | — | 3,266 | — | 3,266 | ||||||||||||
Accrued interest receivable | 745 | — | — | 745 | 745 | ||||||||||||
Financial liabilities: | |||||||||||||||||
Customer deposits | 160,029 | — | 160,784 | — | 160,784 | ||||||||||||
Federal Home Loan Bank advances | 24,813 | — | 24,458 | — | 24,458 | ||||||||||||
Accrued interest payable | 89 | — | — | 89 | 89 | ||||||||||||
31-Dec-12 | Carrying | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Value | Estimated | ||||||||||||||||
Fair Value | |||||||||||||||||
(dollars in thousands) | |||||||||||||||||
Financial assets: | |||||||||||||||||
Cash and cash equivalents | $ | 2,752 | $ | 2,752 | $ | — | $ | — | $ | 2,752 | |||||||
Securities available for sale | 50,764 | — | $ | 50,764 | — | 50,764 | |||||||||||
Securities held to maturity | 2,345 | — | 2,570 | — | 2,570 | ||||||||||||
Loans held for sale | 79 | — | — | 84 | 84 | ||||||||||||
Loans receivable - net | 138,912 | — | — | 140,877 | 140,877 | ||||||||||||
Federal Home Loan Bank stock | 3,266 | — | 3,266 | — | 3,266 | ||||||||||||
Accrued interest receivable | 970 | — | 970 | 970 | |||||||||||||
Financial liabilities: | |||||||||||||||||
Customer deposits | 158,350 | — | 159,335 | — | 159,335 | ||||||||||||
Federal Home Loan Bank advances | 26,358 | — | 26,493 | — | 26,493 | ||||||||||||
REPO sweep accounts | 3,183 | — | 3,183 | — | 3,183 | ||||||||||||
Accrued interest payable | 100 | — | — | 100 | 100 |
Restrictions_on_Dividends
Restrictions on Dividends | 12 Months Ended |
Dec. 31, 2013 | |
Restrictions On Dividends | ' |
Restrictions on Dividends | ' |
Note 14 - Restrictions on Dividends | |
Dividends paid by the Bank are the primary source of funds available to the Company for payment of dividends to shareholders and for other working capital needs. The payment of dividends by the Bank to the Company is subject to restrictions by the Office of the Comptroller of Currency (OCC). These restrictions generally limit dividends to the current and prior two years’ retained earnings. In addition to these restrictions, as a practical matter, dividend payments cannot reduce regulatory capital levels below the Bank’s regulatory capital requirements and minimum regulatory guidelines. Future dividend payments by the Company will be based on future earnings and the approval of the OCC. | |
ParentOnly_Financial_Statement
Parent-Only Financial Statements | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Parent-Only Financial Statements | ' | |||||||
Parent-Only Financial Statements | ' | |||||||
Note 15 - Parent-Only Financial Statements | ||||||||
The following represents the condensed financial statements of First Federal of Northern Michigan Bancorp, Inc. (“Parent”) only. The Parent-only financial information should be read in conjunction with the Company’s consolidated financial statements. | ||||||||
Condensed parent company financial statements, which include transactions with the subsidiary, are as follows: | ||||||||
Balance Sheets: | ||||||||
31-Dec | ||||||||
2013 | 2012 | |||||||
Assets | ||||||||
Cash at subsidiary bank | $ | 510 | $ | 817 | ||||
Investment in subsidiary | 22,701 | 23,304 | ||||||
Deferred tax asset | 318 | 318 | ||||||
Other assets | 1 | — | ||||||
Total assets | $ | 23,530 | $ | 24,439 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Liabilities | $ | 5 | $ | 4 | ||||
Stockholders’ equity | 23,525 | 24,435 | ||||||
Total liabilities and stockholders’ equity | $ | 23,530 | $ | 24,439 | ||||
Statements of Operations: | ||||||||
31-Dec | ||||||||
2013 | 2012 | |||||||
Operating income | $ | — | $ | — | ||||
Dividend income | — | 500 | ||||||
Operating expense | (249 | ) | (205 | ) | ||||
Income (Loss) before income taxes and equity in undistributed net income of subsidiary bank | (249 | ) | 295 | |||||
Income tax benefit | — | — | ||||||
Income (Loss) before equity in undistributed loss of subsidiary bank | (249 | ) | 295 | |||||
Equity in undistributed net income (loss) of subsidiary bank | 304 | (509 | ) | |||||
Net income (loss) | $ | 55 | $ | (214 | ) | |||
Statements of Cash Flows: | ||||||||
31-Dec | ||||||||
2013 | 2012 | |||||||
Cash Flows from Operating Activities | ||||||||
Net income (loss) | $ | 55 | $ | (214 | ) | |||
Adjustments to reconcile net income (loss) to net cash from operating activities: | ||||||||
Stock options/awards | — | 2 | ||||||
Equity in undistributed net (income) loss of subsidiary bank | (304 | ) | 509 | |||||
Net change in other liabilities | 1 | 4 | ||||||
Net change in other assets | (1 | ) | — | |||||
Cash Flows from Financing Activities | ||||||||
Dividends paid | (58 | ) | — | |||||
Net cash provided by (used in) operating activities | (362 | ) | 515 | |||||
Net (Decrease) Increase in Cash | (307 | ) | 301 | |||||
Cash - Beginning of year | 817 | 516 | ||||||
Cash - End of year | $ | 510 | $ | 817 |
Quarterly_Results_of_Operation
Quarterly Results of Operations (Unaudited) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Quarterly Results Of Operations | ' | |||||||||||||
Quarterly Results of Operations (Unaudited) | ' | |||||||||||||
Note 16 - Quarterly Results of Operations (Unaudited) | ||||||||||||||
The following tables summarize the Company’s quarterly results for the fiscal years ended December 31, 2013 and 2012: | ||||||||||||||
For the Three-Month Period Ending | ||||||||||||||
March 31, | June 30, | September 30, | December 31, | |||||||||||
2013 | 2013 | 2013 | 2013 | |||||||||||
Interest income | $ | 2,085 | $ | 2,095 | $ | 2,065 | $ | 2,074 | ||||||
Interest expense | 321 | 285 | 274 | 270 | ||||||||||
Net interest income | 1,764 | 1,810 | 1,791 | 1,804 | ||||||||||
Provision for loan losses | 144 | 196 | 32 | 265 | ||||||||||
Other income | 440 | 465 | 459 | 401 | ||||||||||
Other expenses | 1,992 | 2,082 | 2,036 | 2,132 | ||||||||||
Income (Loss) - before income tax expense (benefit) | 68 | (3 | ) | 182 | (192 | ) | ||||||||
Income tax (benefit) expense | — | — | — | — | ||||||||||
Net income (loss) | $ | 68 | $ | (3 | ) | $ | 182 | $ | (192 | ) | ||||
Net income (loss) per share | ||||||||||||||
Basic | $ | 0.02 | $ | (0.00 | ) | $ | 0.06 | $ | (0.07 | ) | ||||
Diluted | $ | 0.02 | $ | (0.00 | ) | $ | 0.06 | $ | (0.07 | ) | ||||
Weighted average number of shares outstanding - basic and dilutive | 2,884 | 2,884 | 2,884 | 2,884 | ||||||||||
Cash dividends declared per common share | $ | — | $ | — | $ | — | $ | 0.02 | ||||||
For the Three-Month Period Ending | ||||||||||||||
March 31, | June 30, | September 30, | December 31, | |||||||||||
2012 | 2012 | 2012 | 2012 | |||||||||||
Interest income | $ | 2,409 | $ | 2,352 | $ | 2,313 | $ | 2,169 | ||||||
Interest expense | 464 | 427 | 394 | 369 | ||||||||||
Net interest income | 1,945 | 1,925 | 1,919 | 1,800 | ||||||||||
Provision for loan losses | 376 | 578 | 234 | 179 | ||||||||||
Other income | 447 | 390 | 802 | 637 | ||||||||||
Other expenses | 2,301 | 2,143 | 2,077 | 2,191 | ||||||||||
Income - before income tax expense (benefit) | (285 | ) | (406 | ) | 410 | 67 | ||||||||
Income tax expense | (886 | ) | (136 | ) | 137 | 885 | ||||||||
Net income | $ | 601 | $ | (270 | ) | $ | 273 | $ | (818 | ) | ||||
Net income per share | ||||||||||||||
Basic | $ | 0.21 | $ | (0.09 | ) | $ | 0.09 | $ | (0.28 | ) | ||||
Diluted | $ | 0.21 | $ | (0.09 | ) | $ | 0.09 | $ | (0.28 | ) | ||||
Weighted average number of shares outstanding - basic and dilutive | 2,884 | 2,884 | 2,884 | 2,884 | ||||||||||
Cash dividends declared per common share | $ | — | $ | — | $ | — | $ | — |
Subsequent_Events
Subsequent Events | 12 Months Ended | |
Dec. 31, 2013 | ||
Subsequent Events [Abstract] | ' | |
Subsequent Events | ' | |
Note 17 – Subsequent Events | ||
On January 23, 2014, First Federal of Northern Michigan Bancorp, Inc. (“First Federal Bancorp”) and Alpena Banking Corporation, jointly announced the execution of an agreement and plan of merger that provides for the integration of the two companies and their subsidiary community banking institutions. In connection with the all-stock transaction, which is based upon the pro rata tangible equity contribution of each company as of September 30, 2013, each share of common stock of Alpena Banking Corporation will be converted into the right to receive 1.549 shares of First Federal Bancorp common stock. The merger is subject to customary closing conditions, including approval by the shareholders of First Federal Bancorp and the shareholders of Alpena Banking Corporation and applicable banking regulatory authorities. It is anticipated the transaction will close late in the second quarter of 2014 or in the third quarter of 2014. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Summary Of Significant Accounting Policies Policies | ' | |||||||
Principles of Consolidation | ' | |||||||
Principles of Consolidation - The consolidated financial statements include the accounts of First Federal of Northern Michigan Bancorp, Inc., First Federal of Northern Michigan, and the Bank’s wholly owned subsidiaries, Financial Services & Mortgage Corporation (“FSMC”) and FFNM Agency. FSMC invested in real estate, which includes leasing, selling, developing, and maintaining real estate properties. The main activity of FFNM Agency is to collect the stream of income associated with the sale of the Blue Cross/Blue Shield override business to an outside party and, to a lesser extent, the collection of commissions for the sale of non-insured investment products. All significant intercompany balances and transactions have been eliminated in the consolidation. | ||||||||
Certain reclassifications of prior years’ amounts have been made to conform to current year presentation. Such reclassifications had no effect on prior year net income or shareholders’ equity | ||||||||
Use of Estimates | ' | |||||||
Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of investment securities, intangible and deferred tax assets, and mortgage servicing rights. | ||||||||
Significant Group Concentrations of Credit Risk | ' | |||||||
Significant Group Concentrations of Credit Risk - Most of the Company’s activities are with customers located within the northeastern lower peninsula of Michigan. Note 2 discusses the types of securities in which the Company invests. Note 3 discusses the types of lending in which the Company engages. The Company does not have any significant concentrations to any one industry or customer. | ||||||||
Cash and Cash Equivalents | ' | |||||||
Cash and Cash Equivalents - For the purpose of the consolidated statements of cash flows, cash and cash equivalents include cash and balances due from depository institutions and federal funds sold and interest bearing deposits in other depository institutions which mature within ninety days when purchased. | ||||||||
Securities | ' | |||||||
Securities – Debt securities that management has the positive intent and ability to hold to maturity are classified as “held to maturity” and recorded at amortized cost. Securities not classified as held to maturity, including equity securities with readily determinable fair values, are classified as “available for sale” and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income net of applicable income taxes. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. | ||||||||
Management evaluates securities for other-than-temporary impairment (“OTTI”) on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. When evaluating investment securities consideration is given to the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, whether the market decline was affected by macroeconomic conditions and whether the Company has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. In analyzing an issuer’s financial condition, the Company may consider whether the securities are issued by the federal government or its agencies, or U.S. Government sponsored enterprises, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition. The assessment of whether another-than-temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time. | ||||||||
When OTTI occurs, the amount of the OTTI recognized in earnings depends on whether an entity intends to sell the security or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis. If an entity intends to sell or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, the OTTI shall be recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date. The previous amortized cost basis less the OTTI recognized in earnings becomes the new amortized cost basis of the investment. If a security is determined to be other-than-temporarily impaired, but the entity does not intend to sell the security, only the credit portion of the estimated loss is recognized in earnings, with the other portion of the loss recognized in other comprehensive income. | ||||||||
Federal Home Loan Bank Stock | ' | |||||||
Federal Home Loan Bank Stock – Federal Home Loan Bank (FHLB) Stock is carried at cost and is held to allow the Bank to conduct business with the entity. The Federal Home Loan Bank sells and purchases its stock at par; therefore cost approximates fair market value. | ||||||||
Mortgage Banking Activities | ' | |||||||
Mortgage Banking Activities – The Company routinely sells to investors its originated long-term residential fixed-rate mortgage loans. Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. | ||||||||
Mortgage loans held for sale are generally sold with the mortgage servicing rights retained by the Company. The carrying value of mortgage loans sold is reduced by the cost allocated to the associated mortgage servicing rights. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loans sold. | ||||||||
The Company enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding, also known as rate lock commitments. Rate lock commitments on residential mortgage loans that are intended to be sold are considered to be derivatives. Fair value is based on fees currently charged to enter into similar agreements. The fair value of rate lock commitments was insignificant at December 31, 2013 and 2012. | ||||||||
The Company uses forward contracts as part of its mortgage banking activities. Forward contracts provide for the delivery of financial instruments at a specified future date and at a specified price or yield. The fair value of forward contracts was insignificant at December 31, 2013 and 2012. | ||||||||
Loans | ' | |||||||
Loans - The Company grants mortgage, commercial, and consumer loans to customers. Loans are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses, and any deferred fees or costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield over the contractual life of the loan. | ||||||||
Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses, and any deferred fees or costs on originated loans. | ||||||||
The accrual of interest on loans is discontinued at the time the loan is 90 days delinquent unless the credit is well-secured and in process of collection. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. | ||||||||
All interest accrued but not collected, for loans that are placed on nonaccrual or charged off, is reversed against interest income. The interest on these loans is accounted for on the cash basis or cost recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. | ||||||||
Allowance for Loan Losses | ' | |||||||
Allowance for Loan Losses - The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. | ||||||||
The allowance for loan losses is evaluated on a regular basis by management and is based on management’s periodic review of the collectibility of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. | ||||||||
The allowance consists of specific and general components. The specific component relates to loans that are classified as doubtful, substandard or special mention. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-classified loans and is based on historical loss experience adjusted for qualitative factors. | ||||||||
A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Large groups of homogeneous loans are collectively evaluated for impairment. The Company does not separately identify individual consumer and residential loans for impairment disclosures until a loss is imminent. | ||||||||
Troubled debt restructuring of loans is undertaken to improve the likelihood that the loan will be repaid in full under the modified terms in accordance with a reasonable repayment schedule. All modified loans are evaluated to determine whether the loans should be reported as a Troubled Debt Restructure (TDR). A loan is a TDR when the Company, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower by modifying or renewing a loan that the Company would not otherwise consider. To make this determination, the Company must determine whether (a) the borrower is experiencing financial difficulties and (b) the Company granted the borrower a concession. This determination requires consideration of all of the facts and circumstances surrounding the modification. An overall general decline in the economy or some deterioration in a borrower’s financial condition does not automatically mean the borrower is experiencing financial difficulties. | ||||||||
Loan Servicing | ' | |||||||
Loan Servicing – Servicing assets are recognized as separate assets when rights are acquired through the sale of originated residential mortgage loans. Capitalized servicing rights are reported in other assets and are amortized against non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights into tranches based on predominant characteristics, such as interest rate, loan type and investor type. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or on a valuation model that calculates the present value of estimated future net servicing income using market based assumptions. Temporary impairment is recognized through a valuation allowance for an individual stratum to the extent that fair value is less than the capitalized amount for the stratum. If it is later determined that all or a portion of the temporary impairment no longer exists, the valuation allowance is reduced through a recovery of income. An other-than-temporary impairment results in a permanent reduction to the carrying value of the servicing asset. Servicing income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal, or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. | ||||||||
Foreclosed Assets (Including Other Real Estate Owned) | ' | |||||||
Foreclosed Assets (Including Other Real Estate Owned) - Foreclosed real estate held for sale is carried at the lower of fair value minus estimated costs to sell, or cost. Costs of holding foreclosed real estate are charged to expense in the current period, except for significant property improvements, which are capitalized. Valuations are periodically performed by management and an allowance is established by a charge to non-interest expense if the carrying value exceeds the fair value minus estimated costs to sell. Foreclosed real estate is classified as other real estate owned. The net income from operations of foreclosed real estate held for sale is reported in non-interest income. | ||||||||
Property and Equipment | ' | |||||||
Property and Equipment - These assets are recorded at cost, less accumulated depreciation. The Bank uses the straight-line method of recording depreciation for financial reporting. The depreciable lives used by the Company are: land improvements 7-10 years, buildings 7-40 years and equipment 3-10 years. Maintenance and repairs are charged to expense and improvements are capitalized. | ||||||||
Bank Owned Life Insurance | ' | |||||||
Bank Owned Life Insurance - The Bank has purchased life insurance policies on certain key officers. Bank-owned life insurance is recorded at its cash surrender value, or the amount that can be realized. | ||||||||
Intangible Assets | ' | |||||||
Intangible Assets – The Company has in the past purchased a branch or branches from other financial institutions. The analysis of these branch acquisitions led the Company to conclude that in each case, we acquired a business and therefore, the excess of purchase price over fair value of net assets acquired has been allocated to core deposit intangible assets. The conclusion was based on the fact that in each case we acquired employees, customers and branch facilities. The expected life for core deposit intangibles is based on the type of products acquired in an acquisition. The amortization periods range from 10 to 15 years and are based on the expected life of the products. The expected life was determined based on an analysis of the life of similar products within the Company and local competition in the markets where the branches were acquired. The core deposit intangibles are amortized on a straight line basis. The core deposit intangible is analyzed quarterly for impairment. | ||||||||
On June 12, 2003, First Federal of Northern Michigan acquired 100% of the stock of the InsuranCenter of Alpena (ICA). | ||||||||
On February 27, 2009 the Company announced that it had sold the majority of the assets of the InsuranCenter of Alpena. | ||||||||
At the time of the sale, goodwill of $600 continued to be recorded relating to certain assets of the Company that were not sold in the sale of ICA. The assets retained relate to a future stream of commissions. Under an agreement, the Company will receive a portion of the override commission through April, 2014. Management computed an estimated cash flow on this commission using a 6.0% discount rate and determined a fair value of $600. Since the $600 allocation of fair value relates to a finite life asset, the Company re-characterized the goodwill as an amortizable intangible and began amortizing the asset in March, 2009. | ||||||||
Income Taxes | ' | |||||||
Income Taxes - Deferred income tax assets and liabilities are recognized for temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | ||||||||
The Company records a valuation allowance if it believes, based on available evidence, that it is “more likely than not” that the future tax assets recognized will not be realized before their expiration. Realization of the Company’s deferred tax assets is primarily dependent upon the generation of a sufficient level of future taxable income. | ||||||||
At December 31, 2013 and 2012, management did not believe it was more likely than not that all of the deferred tax assets would be realized. Accordingly, at December 31, 2013 and 2012 a valuation allowance of $3.2 million was recorded. | ||||||||
The net deferred tax asset recorded at December 31, 2013 and 2012 was $798 and $331. See Note 9 for additional information. | ||||||||
Off Balance Sheet Instruments | ' | |||||||
Off Balance Sheet Instruments - In the ordinary course of business, the Company has entered into commitments to extend credit, including commitments under credit card arrangements, commercial letters of credit and standby letters of credit. For letters of credit, a liability is recorded for the fair value of the obligation undertaken in issuing the guarantee. | ||||||||
Comprehensive Income | ' | |||||||
Comprehensive Income - Accounting principles generally require that recognized revenue, expenses, gains, and losses be included in net income. Certain changes in assets and liabilities, however, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component in the equity section of the consolidated statement of financial condition. Such items, along with net income, are components of comprehensive income. | ||||||||
Stock-Based Compensation | ' | |||||||
Stock-Based Compensation – The Company applies the recognition and measurement of stock-based compensation accounting rules for stock-based compensation which is referred to as the fair value method. Compensation cost is based on the fair value of the equity issued to employees. The Company recognizes compensation expense related to stock-based compensation over the period the services are performed. | ||||||||
The Company’s stock based compensation plans are described in detail in Note 12 (Employee Benefit Plans). Compensation expense is recognized for stock options and unvested (restricted) stock awards issued to employees, based on the fair value of these awards at the date of grant. A Black Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common shares at the date of grant is used to estimate the fair value of unvested (restricted) stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period for stock option awards and as the unvested period for nonvested (restricted) stock awards. Certain of the Company’s share-based awards contain terms that provide for a graded vesting schedule whereby portions of the award vest in increments over the requisite service period. | ||||||||
The Company granted no options in 2013 and 2012. Compensation costs related to stock options charged to earnings were $0 and $2 in 2013 and 2012, respectively. | ||||||||
Earnings Per Common Share | ' | |||||||
Earnings Per Common Share - Earnings per common share are computed by dividing net income by the average number of common shares outstanding during the period. The Company uses the treasury stock method to compute diluted earnings per share, which assumes that proceeds from the assumed exercise of stock options would be used to purchase common stock at the average market price during the period. As of December 31, 2013, 150,030 options were not considered dilutive, due to the fact that the options are underwater. As of December 31, 2012 there was no dilution due to the net loss for the year. | ||||||||
Earnings per common share have been computed based on the following: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Net income (loss) | $ | 55 | $ | (214 | ) | |||
Average number of common shares outstanding | 2,884,049 | 2,884,049 | ||||||
Effect of dilutive options | — | — | ||||||
Average number of common shares outstanding used to calculate diluted earnings per common share | 2,884,049 | 2,884,049 | ||||||
Recent Accounting Pronouncements | ' | |||||||
Recent Accounting Pronouncements - In 2013 the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2013-02 The Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income. The Update does not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income (AOCI) by component. In addition, an entity is required to present, either on the face of the statement where net income is presented (or in the notes), significant amounts reclassified out of AOCI by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. This standard is effective for reporting periods beginning after December 15, 2013 (December 31, 2014). | ||||||||
In 2013 the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The update provides additional guidance related to the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists. An unrecognized tax benefit should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryfoward. Except for when a net operating loss carryforward, a similar tax loss or tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. The amendments in this update are effective for fiscal years and interim periods within those years, beginning after December 15, 2013. For nonpublic entities, the amendments are effective for fiscal years and interim periods within those years, beginning after December 15, 2014. Early adoption is permitted. We do not expect the update to have a material effect on our financial statements. | ||||||||
During 2014, the FASB issued ASU N. 2014-04 Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The amendments in this Update clarify that an in substance repossession or foreclosures occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendment requires interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. For entities other than public business entities, the amendments in this Update are effective for annual periods beginning after December 15, 2014 and interim periods within annual periods beginning after December 15, 2015. An entity can elect to adopt the amendments in this Update using either a modified retrospective transition method or a prospective method. We do not expect the update to have a material effect on our financial statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Summary Of Significant Accounting Policies Tables | ' | |||||||
Schedule of weighted average number of common shares outstanding | ' | |||||||
Earnings per common share have been computed based on the following: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Net income (loss) | $ | 55 | $ | (214 | ) | |||
Average number of common shares outstanding | 2,884,049 | 2,884,049 | ||||||
Effect of dilutive options | — | — | ||||||
Average number of common shares outstanding used to calculate diluted earnings per common share | 2,884,049 | 2,884,049 |
Securities_Tables
Securities (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Securities Tables | ' | |||||||||||||||||||||||||
Schedule of carrying value and estimated fair value of securities | ' | |||||||||||||||||||||||||
Investment securities have been classified according to management’s intent. The carrying value and estimated fair value of securities are as follows: | ||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||
Amortized | Gross | Gross | Market | |||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||
Securities Available for Sale | ||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 7,111 | $ | 36 | $ | (105 | ) | $ | 7,042 | |||||||||||||||||
Municipal notes | 13,694 | 216 | (301 | ) | 13,609 | |||||||||||||||||||||
Corporate securities | 1,085 | 12 | — | 1,097 | ||||||||||||||||||||||
Mortgage-backed securities | 28,708 | 279 | (384 | ) | 28,603 | |||||||||||||||||||||
Equity securities | 3 | 4 | — | 7 | ||||||||||||||||||||||
Total | $ | 50,601 | $ | 547 | $ | (790 | ) | $ | 50,358 | |||||||||||||||||
Securities Held to Maturity | ||||||||||||||||||||||||||
Municipal notes | $ | 2,255 | $ | 145 | $ | — | $ | 2,400 | ||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||
Amortized | Gross | Gross | Market | |||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||
Securities Available for Sale | ||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 9,181 | $ | 66 | $ | — | $ | 9,247 | ||||||||||||||||||
Municipal notes | 10,413 | 368 | (23 | ) | 10,758 | |||||||||||||||||||||
Corporate securities | 1,135 | 15 | — | 1,150 | ||||||||||||||||||||||
Mortgage-backed securities | 28,901 | 736 | (29 | ) | 29,608 | |||||||||||||||||||||
Equity securities | 3 | — | (2 | ) | 1 | |||||||||||||||||||||
Total | $ | 49,633 | $ | 1,185 | $ | (54 | ) | $ | 50,764 | |||||||||||||||||
Securities Held to Maturity | ||||||||||||||||||||||||||
Municipal notes | $ | 2,345 | $ | 225 | $ | — | $ | 2,570 | ||||||||||||||||||
Schedule of amortized cost and market value of securities by maturity | ' | |||||||||||||||||||||||||
The amortized cost and estimated market value of securities at December 31, 2013, by contractual 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. | ||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||
Amortized | Market | |||||||||||||||||||||||||
Cost | Value | |||||||||||||||||||||||||
Available For Sale: | ||||||||||||||||||||||||||
Due in one year or less | $ | 3,414 | $ | 3,427 | ||||||||||||||||||||||
Due after one year through five years | 10,779 | 10,854 | ||||||||||||||||||||||||
Due in five year through ten years | 6,461 | 6,201 | ||||||||||||||||||||||||
Due after ten years | 1,236 | 1,266 | ||||||||||||||||||||||||
Subtotal | 21,890 | 21,748 | ||||||||||||||||||||||||
Equity securities | 3 | 7 | ||||||||||||||||||||||||
Mortgage-backed securities | 28,708 | 28,603 | ||||||||||||||||||||||||
Total | $ | 50,601 | $ | 50,358 | ||||||||||||||||||||||
Held To Maturity | ||||||||||||||||||||||||||
Due in one year or less | $ | 90 | $ | 92 | ||||||||||||||||||||||
Due after one year through five years | 490 | 516 | ||||||||||||||||||||||||
Due in five year through ten years | 700 | 750 | ||||||||||||||||||||||||
Due after ten years | 975 | 1,042 | ||||||||||||||||||||||||
Total | $ | 2,255 | $ | 2,400 | ||||||||||||||||||||||
Summary of Temporily Impaired Investments Impaired | ' | |||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||||
Gross | Gross | Gross | Gross | |||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | Unrealized | |||||||||||||||||||||||
Losses | Losses | Losses | Losses | |||||||||||||||||||||||
Fair Value | Less than | Fair Value | 12 months | Fair Value | Less than | Fair Value | 12 months | |||||||||||||||||||
12 months | or longer | 12 months | or longer | |||||||||||||||||||||||
Available For Sale: | ||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | — | $ | — | $ | 894 | $ | (105 | ) | $ | — | $ | — | $ | — | $ | — | |||||||||
Corporate and other securities | ||||||||||||||||||||||||||
Municipal notes | 7,902 | (243 | ) | 1,668 | (58 | ) | 1,537 | (23 | ) | — | — | |||||||||||||||
Mortgage-backed securities | 14,471 | (334 | ) | 2,052 | (50 | ) | 2,725 | (13 | ) | 1,687 | (16 | ) | ||||||||||||||
Equity securities | — | — | — | — | — | — | 1 | (2 | ) | |||||||||||||||||
Total Securities available for sale | $ | 22,373 | $ | (577 | ) | $ | 4,614 | $ | (213 | ) | $ | 4,262 | $ | (36 | ) | $ | 1,688 | $ | (18 | ) | ||||||
Held to Maturity: | ||||||||||||||||||||||||||
Municipal notes | — | — | — | — | — | — | — | — | ||||||||||||||||||
Total Securities held to maturity | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — |
Loans_Tables
Loans (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Loans Tables | ' | |||||||||||||||||||||||||
Schedule of composition of loans categorized by the type of loan | ' | |||||||||||||||||||||||||
Loans at December 31, 2013 and 2012 are summarized as follows: | ||||||||||||||||||||||||||
31-Dec | ||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
Real estate loans - One- to four-family residential | $ | 63,839 | $ | 66,539 | ||||||||||||||||||||||
Commercial loans: | ||||||||||||||||||||||||||
Secured by real estate | 51,899 | 54,673 | ||||||||||||||||||||||||
Other | 12,451 | 8,102 | ||||||||||||||||||||||||
Total commercial loans | 64,350 | 62,775 | ||||||||||||||||||||||||
Consumer loans: | ||||||||||||||||||||||||||
Secured by real estate | 8,730 | 10,409 | ||||||||||||||||||||||||
Other | 1,165 | 1,259 | ||||||||||||||||||||||||
Total consumer loans | 9,895 | 11,668 | ||||||||||||||||||||||||
Total gross loans | 138,084 | 140,982 | ||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||
Net deferred loan fees | 297 | 320 | ||||||||||||||||||||||||
Allowance for loan losses | 1,472 | 1,750 | ||||||||||||||||||||||||
Total loans - net | $ | 136,315 | $ | 138,912 | ||||||||||||||||||||||
Final loan maturities and rate sensitivity of the loan portfolio are as follows: | ||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||
Less Than | One Year | After | Total | |||||||||||||||||||||||
One Year | to Five | Five | ||||||||||||||||||||||||
Years | Years | |||||||||||||||||||||||||
Loans at fixed interest rates | $ | 7,713 | $ | 28,673 | $ | 49,458 | $ | 85,844 | ||||||||||||||||||
Loans at variable interest rates | 6,357 | 12,280 | 33,603 | 52,240 | ||||||||||||||||||||||
Total | $ | 14,070 | $ | 40,953 | $ | 83,061 | $ | 138,084 | ||||||||||||||||||
Schedule of loans to executives and directors | ' | |||||||||||||||||||||||||
An analysis of aggregate loans outstanding to directors and executive officers for the years ended December 31, 2013 and 2012 are as follows: | ||||||||||||||||||||||||||
31-Dec | ||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
Aggregate balance - Beginning of Period | $ | 3,340 | $ | 3,344 | ||||||||||||||||||||||
New loans | 2,524 | 1,166 | ||||||||||||||||||||||||
Repayments | (2,491 | ) | (1,170 | ) | ||||||||||||||||||||||
Net change in directors and officers | (205 | ) | — | |||||||||||||||||||||||
Aggregate balance - End of Period | $ | 3,168 | $ | 3,340 | ||||||||||||||||||||||
Schedule of aging of past due loans by class | ' | |||||||||||||||||||||||||
The following tables illustrate the contractual aging of the recorded investment in past due loans by class of loans as of December 31, 2013 and 2012: | ||||||||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||
30 - 59 Days | 60 - 89 Days | Greater than 90 | Total | Current | Total Loans | Recorded | ||||||||||||||||||||
Past Due | Past Due | Days | Past Due | Investment > 90 | ||||||||||||||||||||||
Days and | ||||||||||||||||||||||||||
Accruing | ||||||||||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||||||||
Commercial Real Estate - construction | $ | — | $ | — | $ | 173 | $ | 173 | $ | — | $ | 173 | $ | — | ||||||||||||
Commercial Real Estate - other | — | 521 | 1,441 | 1,962 | 49,764 | 51,726 | — | |||||||||||||||||||
Commercial - non real estate | 33 | 20 | — | 53 | 12,398 | 12,451 | — | |||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||
Consumer - Real Estate | 54 | 55 | — | 109 | 8,621 | 8,730 | — | |||||||||||||||||||
Consumer - Other | — | 4 | 2 | 6 | 1,159 | 1,165 | 2 | |||||||||||||||||||
Residential: | ||||||||||||||||||||||||||
Residential | 1,973 | 393 | 353 | 2,719 | 61,120 | 63,839 | 24 | |||||||||||||||||||
Total | $ | 2,060 | $ | 993 | $ | 1,969 | $ | 5,022 | $ | 133,062 | $ | 138,084 | $ | 26 | ||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||
30 - 59 Days | 60 - 89 Days | Greater than 90 | Total | Current | Total Loans | Recorded | ||||||||||||||||||||
Past Due | Past Due | Days | Past Due | Investment > 90 | ||||||||||||||||||||||
Days and | ||||||||||||||||||||||||||
Accruing | ||||||||||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||||||||
Commercial Real Estate - construction | $ | — | $ | — | $ | 173 | $ | 173 | $ | 2,073 | $ | 2,246 | $ | — | ||||||||||||
Commercial Real Estate - other | 3,210 | 540 | 282 | 4,032 | 48,395 | 52,427 | — | |||||||||||||||||||
Commercial - non real estate | 113 | — | — | 113 | 7,989 | 8,102 | — | |||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||
Consumer - Real Estate | 59 | — | 13 | 72 | 10,337 | 10,409 | — | |||||||||||||||||||
Consumer - Other | 11 | 5 | 6 | 22 | 1,237 | 1,259 | 6 | |||||||||||||||||||
Residential: | ||||||||||||||||||||||||||
Residential | 2,047 | 796 | 1,198 | 4,041 | 62,498 | 66,539 | 61 | |||||||||||||||||||
Total | $ | 5,440 | $ | 1,341 | $ | 1,672 | $ | 8,453 | $ | 132,529 | $ | 140,982 | $ | 67 | ||||||||||||
Schedule of loans by risk category | ' | |||||||||||||||||||||||||
The following tables present the risk category of loans by class of loans based on the most recent analysis performed as of December 31, 2013 and 2012: | ||||||||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||
Loan Grade | Commercial Real Estate | Commercial Real Estate | Commercial | |||||||||||||||||||||||
Construction | Other | |||||||||||||||||||||||||
1-2 | $ | — | $ | — | $ | — | ||||||||||||||||||||
3 | — | 16,187 | 5,602 | |||||||||||||||||||||||
4 | — | 27,789 | 6,699 | |||||||||||||||||||||||
5 | — | 4,835 | 45 | |||||||||||||||||||||||
6 | 173 | 2,915 | 105 | |||||||||||||||||||||||
7 | — | — | — | |||||||||||||||||||||||
8 | — | — | — | |||||||||||||||||||||||
Total | $ | 173 | $ | 51,726 | $ | 12,451 | ||||||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||
Loan Grade | Commercial Real Estate | Commercial Real Estate | Commercial | |||||||||||||||||||||||
Construction | Other | |||||||||||||||||||||||||
1-2 | $ | — | $ | — | $ | — | ||||||||||||||||||||
3 | 615 | 13,895 | 2,376 | |||||||||||||||||||||||
4 | 1,458 | 27,488 | 5,489 | |||||||||||||||||||||||
5 | — | 2,712 | 37 | |||||||||||||||||||||||
6 | 173 | 8,332 | 200 | |||||||||||||||||||||||
7 | — | — | — | |||||||||||||||||||||||
8 | — | — | — | |||||||||||||||||||||||
Total | $ | 2,246 | $ | 52,427 | $ | 8,102 | ||||||||||||||||||||
The following tables present the risk category of loans by class based on the most recent analysis performed as of December 31, 2013 and 2012. | ||||||||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||
Residential | ||||||||||||||||||||||||||
Loan Grade: | ||||||||||||||||||||||||||
Pass | $ | 63,164 | ||||||||||||||||||||||||
Special Mention | — | |||||||||||||||||||||||||
Substandard | 675 | |||||||||||||||||||||||||
Total | $ | 63,839 | ||||||||||||||||||||||||
Consumer - | Consumer - Other | |||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||
Performing | $ | 8,723 | $ | 1,163 | ||||||||||||||||||||||
Nonperforming | 7 | 2 | ||||||||||||||||||||||||
Total | $ | 8,730 | $ | 1,165 | ||||||||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||
Residential | ||||||||||||||||||||||||||
Loan Grade: | ||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||
Special Mention | $ | 64,668 | ||||||||||||||||||||||||
Substandard | — | |||||||||||||||||||||||||
Total | 1,871 | |||||||||||||||||||||||||
$ | 66,539 | |||||||||||||||||||||||||
Consumer - | Consumer - Other | |||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||
Performing | $ | 10,381 | $ | 1,253 | ||||||||||||||||||||||
Nonperforming | 28 | 6 | ||||||||||||||||||||||||
Total | $ | 10,409 | $ | 1,259 | ||||||||||||||||||||||
Schedule of recorded investment in non-accrual loans by class | ' | |||||||||||||||||||||||||
The following tables present the recorded investment in non-accrual loans by class as of December 31, 2013 and 2012: | ||||||||||||||||||||||||||
As of December 31 | ||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||||||||
Commercial Real Estate - construction | $ | 173 | $ | 173 | ||||||||||||||||||||||
Commercial Real Estate - other | 1,454 | 2,851 | ||||||||||||||||||||||||
Commercial | — | — | ||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||
Consumer - real estate | 7 | 28 | ||||||||||||||||||||||||
Consumer - other | — | 1 | ||||||||||||||||||||||||
Residential: | ||||||||||||||||||||||||||
Residential | 651 | 1,810 | ||||||||||||||||||||||||
Total | $ | 2,285 | $ | 4,863 | ||||||||||||||||||||||
Schedule of loans individually evaluated for impairment | ' | |||||||||||||||||||||||||
The following tables present loans individually evaluated for impairment by class of loans as of December 31, 2013 and 2012: | ||||||||||||||||||||||||||
Impaired Loans | For the Twelve Months Ended | |||||||||||||||||||||||||
As of December 31, 2013 | December 31, | |||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||
Unpaid Principal | Recorded | Related | Average | Interest | ||||||||||||||||||||||
Balance | Investment | Allowance | Recorded | Income | ||||||||||||||||||||||
Investment | Recognized | |||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Commercial Real Estate - Construction | — | — | — | — | — | |||||||||||||||||||||
Commercial Real Estate - Other | 1,789 | 1,788 | — | 1,894 | 104 | |||||||||||||||||||||
Consumer - Real Estate | 8 | 7 | — | 7 | — | |||||||||||||||||||||
Consumer - Other | — | — | — | — | — | |||||||||||||||||||||
Residential | 954 | 722 | — | 727 | 6 | |||||||||||||||||||||
With a specific allowance recorded: | ||||||||||||||||||||||||||
Commercial | — | — | — | — | — | |||||||||||||||||||||
Commercial Real Estate - Construction | 1,589 | 173 | 48 | 173 | — | |||||||||||||||||||||
Commercial Real Estate - Other | 3,980 | 3,391 | 182 | 3,397 | 94 | |||||||||||||||||||||
Consumer - Real Estate | — | — | — | — | — | |||||||||||||||||||||
Consumer - Other | — | — | — | — | — | |||||||||||||||||||||
Residential | 53 | 30 | 5 | 30 | — | |||||||||||||||||||||
Totals: | ||||||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Commercial Real Estate - Construction | $ | 1,589 | $ | 173 | $ | 48 | $ | 173 | $ | — | ||||||||||||||||
Commercial Real Estate - Other | $ | 5,769 | $ | 5,179 | $ | 182 | $ | 5,291 | $ | 198 | ||||||||||||||||
Consumer - Real Estate | $ | 8 | $ | 7 | $ | — | $ | 7 | $ | — | ||||||||||||||||
Consumer - Other | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Residential | $ | 1,007 | $ | 752 | $ | 5 | $ | 757 | $ | 6 | ||||||||||||||||
For the Twelve Months Ended | ||||||||||||||||||||||||||
Impaired Loans | December 31, | |||||||||||||||||||||||||
As of December 31, 2012 | 2012 | |||||||||||||||||||||||||
Unpaid Principal | Recorded | Related | Average | Interest | ||||||||||||||||||||||
Balance | Investment | Allowance | Recorded | Income | ||||||||||||||||||||||
Investment | Recognized | |||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Commercial Real Estate - Construction | 1,589 | 173 | — | 173 | — | |||||||||||||||||||||
Commercial Real Estate - Other | 4,869 | 4,535 | — | 5,084 | 138 | |||||||||||||||||||||
Consumer - Real Estate | 33 | 28 | — | 34 | — | |||||||||||||||||||||
Consumer - Other | 1 | 1 | — | 3 | — | |||||||||||||||||||||
Residential | 1,365 | 1,194 | — | 1,359 | — | |||||||||||||||||||||
With a specific allowance recorded: | ||||||||||||||||||||||||||
Commercial | — | — | — | — | — | |||||||||||||||||||||
Commercial Real Estate - Construction | — | — | — | — | — | |||||||||||||||||||||
Commercial Real Estate - Other | 2,138 | 2,127 | 101 | 2,167 | 80 | |||||||||||||||||||||
Consumer - Real Estate | — | — | — | — | — | |||||||||||||||||||||
Consumer - Other | — | — | — | — | — | |||||||||||||||||||||
Residential | 616 | 616 | 141 | 642 | — | |||||||||||||||||||||
Totals: | ||||||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Commercial Real Estate - Construction | $ | 1,589 | $ | 173 | $ | — | $ | 173 | $ | — | ||||||||||||||||
Commercial Real Estate - Other | $ | 7,007 | $ | 6,662 | $ | 101 | $ | 7,251 | $ | 218 | ||||||||||||||||
Consumer - Real Estate | $ | 33 | $ | 28 | $ | — | $ | 34 | $ | — | ||||||||||||||||
Consumer - Other | $ | 1 | $ | 1 | $ | — | $ | 3 | $ | — | ||||||||||||||||
Residential | $ | 1,981 | $ | 1,810 | $ | 141 | $ | 2,001 | $ | — | ||||||||||||||||
Schedule of loans modified as troubled debt restructurings | ' | |||||||||||||||||||||||||
The following table summarizes the loans that were modified as a TDR during the period ended December 31, 2013 and 2012. | ||||||||||||||||||||||||||
For the Twelve Months Ended | ||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||
Number | Pre-Modification | Post-Modification | Troubled Debt Restructurings | |||||||||||||||||||||||
of | Outstanding | Outstanding | That Subsequently Defaulted | |||||||||||||||||||||||
Contracts | Recorded | Recorded | ||||||||||||||||||||||||
Investments | Investment | Number | Recorded | |||||||||||||||||||||||
of | Investment | |||||||||||||||||||||||||
Contracts | ||||||||||||||||||||||||||
Troubled Debt Restructurings | ||||||||||||||||||||||||||
Commercial Real Estate - Construction | — | $ | — | $ | — | — | $ | — | ||||||||||||||||||
Commercial Real Estate - Other | 1 | 412 | 412 | — | — | |||||||||||||||||||||
Commercial - non real estate | — | — | — | — | — | |||||||||||||||||||||
Residential | 2 | 337 | 337 | — | — | |||||||||||||||||||||
Total | 3 | $ | 749 | $ | 749 | — | $ | — | ||||||||||||||||||
For the Twelve Months Ended | ||||||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||
Number | Pre-Modification | Post-Modification | Troubled Debt Restructurings | |||||||||||||||||||||||
of | Outstanding | Outstanding | That Subsequently Defaulted | |||||||||||||||||||||||
Contracts | Recorded | Recorded | ||||||||||||||||||||||||
Investments | Investment | Number | Recorded | |||||||||||||||||||||||
of | Investment | |||||||||||||||||||||||||
Contracts | ||||||||||||||||||||||||||
Troubled Debt Restructurings | ||||||||||||||||||||||||||
Commerical Real Estate - Construction | — | $ | — | $ | — | — | $ | — | ||||||||||||||||||
Commercial Real Estate - Other | — | — | — | 1 | 53 | |||||||||||||||||||||
Consumer - Real Estate | 4 | 3,542 | 2,737 | — | — | |||||||||||||||||||||
Residential | — | — | — | — | — | |||||||||||||||||||||
Total | 4 | $ | 3,542 | $ | 2,737 | 1 | $ | 53 | ||||||||||||||||||
Schedule of activity for allowance for loan losses | ' | |||||||||||||||||||||||||
Activity in the allowance for loan and lease losses was as follows for the years ended December 31, 2013 and 2012: | ||||||||||||||||||||||||||
For the Year Ended December 31, 2013 | ||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Consumer | Consumer | Residential | Unallocated | Total | |||||||||||||||||||
Construction | Real Estate | Real Estate | ||||||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||
Beginning Balance | $ | 64 | $ | 579 | $ | 69 | $ | 99 | $ | 33 | $ | 906 | $ | — | $ | 1,750 | ||||||||||
Charge-offs | — | (674 | ) | — | (40 | ) | (13 | ) | (464 | ) | — | (1,191 | ) | |||||||||||||
Recoveries | — | 114 | — | 36 | 6 | 120 | — | 276 | ||||||||||||||||||
Provision | (16 | ) | 425 | (6 | ) | (33 | ) | (5 | ) | 222 | 50 | 637 | ||||||||||||||
Ending Balance | $ | 48 | $ | 444 | $ | 63 | $ | 62 | $ | 21 | $ | 784 | $ | 50 | $ | 1,472 | ||||||||||
Ending balance: individually evaluated for impairment | $ | 48 | $ | 182 | $ | — | $ | — | $ | — | $ | 5 | $ | — | $ | 235 | ||||||||||
Ending balance: loans collectively evaluated for impairment | $ | — | $ | 262 | $ | 63 | $ | 62 | $ | 21 | $ | 779 | $ | 50 | $ | 1,237 | ||||||||||
Loans: | ||||||||||||||||||||||||||
Ending Balance | $ | 173 | $ | 51,726 | $ | 12,451 | $ | 8,730 | $ | 1,165 | $ | 63,839 | $ | — | $ | 138,084 | ||||||||||
Ending balance: individually evaluated for impairment | $ | 173 | $ | 5,179 | $ | — | $ | 7 | $ | — | $ | 752 | $ | — | $ | 6,111 | ||||||||||
Ending balance: loans collectively evaluated for impairment | $ | — | $ | 46,547 | $ | 12,451 | $ | 8,723 | $ | 1,165 | $ | 63,087 | $ | — | $ | 131,973 | ||||||||||
For the Year Ended December 31, 2012 | ||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Consumer | Consumer | Residential | Unallocated | Total | |||||||||||||||||||
Construction | Real Estate | Real Estate | ||||||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||
Beginning Balance | $ | 10 | $ | 393 | $ | 53 | $ | 146 | $ | 46 | $ | 870 | $ | — | $ | 1,518 | ||||||||||
Charge-offs | — | (265 | ) | — | (87 | ) | (44 | ) | (840 | ) | — | (1,236 | ) | |||||||||||||
Recoveries | — | 10 | — | 16 | 10 | 65 | — | 101 | ||||||||||||||||||
Provision | 54 | 441 | 16 | 24 | 21 | 811 | — | 1,367 | ||||||||||||||||||
Ending Balance | $ | 64 | $ | 579 | $ | 69 | $ | 99 | $ | 33 | $ | 906 | $ | — | $ | 1,750 | ||||||||||
Ending balance: individually evaluated for impairment | $ | — | $ | 101 | $ | — | $ | — | $ | — | $ | 141 | $ | — | $ | 242 | ||||||||||
Ending balance: loans collectively evaluated for impairment | $ | 64 | $ | 478 | $ | 69 | $ | 99 | $ | 33 | $ | 765 | $ | — | $ | 1,508 | ||||||||||
Loans: | ||||||||||||||||||||||||||
Ending Balance | $ | 2,246 | $ | 52,427 | $ | 8,102 | $ | 10,409 | $ | 1,259 | $ | 66,539 | $ | — | $ | 140,982 | ||||||||||
Ending balance: individually evaluated for impairment | $ | 173 | $ | 6,662 | $ | — | $ | 28 | $ | 1 | $ | 1,810 | $ | — | $ | 8,674 | ||||||||||
Ending balance: loans collectively evaluated for impairment | $ | 2,073 | $ | 45,765 | $ | 8,102 | $ | 10,381 | $ | 1,258 | $ | 64,729 | $ | — | $ | 132,308 |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property And Equipment Tables | ' | |||||||
Schedule of property and equipment | ' | |||||||
A summary of property and equipment is as follows: | ||||||||
31-Dec | ||||||||
2013 | 2012 | |||||||
Land | $ | 1,071 | $ | 1,112 | ||||
Land improvements | 182 | 184 | ||||||
Buildings | 6,237 | 6,249 | ||||||
Equipment | 3,523 | 3,682 | ||||||
Total property and equipment | 11,013 | 11,227 | ||||||
Accumulated depreciation | 5,810 | 5,833 | ||||||
Net property and equipment | $ | 5,203 | $ | 5,394 |
Servicing_Tables
Servicing (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Servicing Tables | ' | |||||||
Schedule of assumptions used in determining the fair value of mortgage servicing rights | ' | |||||||
The key economic assumptions used in determining the fair value of the mortgage servicing rights are as follows: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Annual constant prepayment speed (CPR) | 10.27% | 17.86% | ||||||
Weighted average life (in months) | 244 | 246 | ||||||
Discount rate | 9.26% | 8.11% | ||||||
Schedule of activity in mortgage servicing rights | ' | |||||||
The following table summarizes mortgage servicing rights capitalized and amortized, along with the aggregate activity in related valuation allowances: | ||||||||
31-Dec | ||||||||
2013 | 2012 | |||||||
Balance - beginning of period: | $ | 1,035 | $ | 993 | ||||
Originated mortgage servicing rights capitalized | 151 | 426 | ||||||
Amortization of mortgage servicing rights | (326 | ) | (384 | ) | ||||
Balance - end of period | 860 | 1,035 | ||||||
Valuation allowances: | ||||||||
Balance - beginning of period | (19 | ) | — | |||||
Additions | — | (19 | ) | |||||
Reductions | 19 | — | ||||||
Write-downs | — | — | ||||||
Balance - end of period (net of allowances) | $ | 860 | $ | 1,016 |
Intangible_Assets_Tables
Intangible Assets (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Intangible Assets Tables | ' | ||||||||||
Schedule of intangible assets | ' | ||||||||||
Intangible assets of the Company are summarized as follows: | |||||||||||
31-Dec-13 | |||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||
Amortized intangible assets: | |||||||||||
Core deposit | $ | 25 | $ | 24 | $ | 1 | |||||
Commission residual | 600 | 561 | 39 | ||||||||
Total | $ | 625 | $ | 585 | $ | 40 | |||||
31-Dec-12 | |||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||
Amortized intangible assets: | |||||||||||
Core deposit | $ | 3,081 | $ | 3,078 | $ | 3 | |||||
Commission residual | 600 | 445 | 155 | ||||||||
Total | $ | 3,681 | $ | 3,523 | $ | 158 | |||||
Schedule of remaining amortization expense | ' | ||||||||||
The following table sets forth the amount of remaining amortization for intangibles assets: | |||||||||||
For the year | |||||||||||
ended | |||||||||||
December 31, | |||||||||||
2014 | |||||||||||
Core deposit | 1 | ||||||||||
Commission residual | 39 | ||||||||||
Total | 40 |
Deposits_Tables
Deposits (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Deposits Tables | ' | |||||||||||||||||||
Schedule of deposit liabilities, by type and range | ' | |||||||||||||||||||
Deposit accounts, by type and range of rates, consist of the following: | ||||||||||||||||||||
31-Dec | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Account Type | ||||||||||||||||||||
NOW accounts and MMDA | $ | 50,222 | $ | 44,218 | ||||||||||||||||
Regular savings accounts | 22,037 | 19,867 | ||||||||||||||||||
Total | 72,259 | 64,085 | ||||||||||||||||||
Certificate of Deposit Rates | ||||||||||||||||||||
0.50 percent to 0.99 percent | 40,259 | 42,698 | ||||||||||||||||||
1.00 percent to 1.99 percent | 17,715 | 15,962 | ||||||||||||||||||
2.00 percent to 2.99 percent | 7,130 | 10,746 | ||||||||||||||||||
3.00 percent to 3.99 percent | 1,486 | 3,398 | ||||||||||||||||||
4.00 percent to 4.99 percent | 133 | 394 | ||||||||||||||||||
Total certificate of deposits | 66,723 | 73,198 | ||||||||||||||||||
Total interest-bearing deposits | $ | 138,982 | $ | 137,283 | ||||||||||||||||
Schedule of maturities of certificates of deposit | ' | |||||||||||||||||||
The following table sets forth the amount and maturities of certificates of deposit: | ||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||
Amount Due | ||||||||||||||||||||
Rate | Less than | 2-Jan | 3-Feb | 5-Mar | Greater | Total | ||||||||||||||
1 Year | Years | Years | Years | than | ||||||||||||||||
5 Years | ||||||||||||||||||||
0.50 percent to 0.99 percent | $ | 27,892 | $ | 11,193 | $ | 877 | $ | 297 | $ | — | $ | 40,259 | ||||||||
1.00 percent to 1.99 percent | 3,324 | 953 | 6,408 | 3,315 | 3,715 | 17,715 | ||||||||||||||
2.00 percent to 2.99 percent | 1,313 | 3,861 | 409 | 51 | 1,496 | 7,130 | ||||||||||||||
3.00 percent to 3.99 percent | 422 | 494 | — | 12 | 558 | 1,486 | ||||||||||||||
4.00 percent to 4.99 percent | — | 46 | 33 | 54 | — | 133 | ||||||||||||||
Total | $ | 32,951 | $ | 16,547 | $ | 7,727 | $ | 3,729 | $ | 5,769 | $ | 66,723 | ||||||||
Schedule of interest expense on deposits | ' | |||||||||||||||||||
Interest expense on deposits is summarized as follows: | ||||||||||||||||||||
Year Ended December 31 | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
NOW and MMDAs | $ | 98 | $ | 95 | ||||||||||||||||
Regular savings | 11 | 10 | ||||||||||||||||||
Certificates of deposit | 717 | 929 | ||||||||||||||||||
Total | $ | 826 | $ | 1,034 |
Federal_Home_Loan_Bank_and_Fed1
Federal Home Loan Bank and Federal Reserve Advances (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Federal Home Loan Bank And Federal Reserve Advances Tables | ' | |||||||
Schedule of the Future Maturities of Federal Home Loan Bank Advances | ' | |||||||
The advances are subject to prepayment penalties subject to the provisions and conditions of the credit policy of the Federal Home Loan Bank. Future maturities of the advances are as follows: | ||||||||
31-Dec-13 | ||||||||
Years Ending | Amount | Weighted Average | ||||||
31-Dec | Interest Rate | |||||||
2014 | $ | 7,715 | 0.44 | |||||
2015 | 2,526 | 0.81 | ||||||
2016 | 6,938 | 1.15 | ||||||
2017 | 5,729 | 1.49 | ||||||
2018 | 661 | 1.17 | ||||||
Thereafter | 1,244 | 1.61 | ||||||
Total | $ | 24,813 | 1 |
Federal_Income_Tax_Tables
Federal Income Tax (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Federal Income Tax Tables | ' | |||||||
Schedule of components of Federal income tax | ' | |||||||
The analysis of the consolidated provision for federal income tax is as follows: | ||||||||
Year Ended December 31 | ||||||||
2013 | 2012 | |||||||
Current provision | $ | — | $ | — | ||||
Deferred benefit | (57 | ) | (138 | ) | ||||
Change in valuation allowance | 57 | 138 | ||||||
Total | $ | — | $ | — | ||||
Schedule of effective income tax rate reconciliation | ' | |||||||
A reconciliation of the federal income tax expense and the amount computed by applying the statutory federal income tax rate (34 percent) to income before federal income tax is as follows: | ||||||||
Year Ended December 31 | ||||||||
2013 | 2012 | |||||||
Tax (benefit) expense at statutory rate | $ | 19 | $ | (73 | ) | |||
Increase (decrease) from: | ||||||||
Change in valuation allowance | 57 | 138 | ||||||
Tax-exempt interest | (52 | ) | (52 | ) | ||||
Other | (24 | ) | (13 | ) | ||||
Total income tax expense | $ | — | $ | — | ||||
Schedule of deferred tax assets | ' | |||||||
The net deferred tax asset was comprised of the following temporary differences: | ||||||||
31-Dec | ||||||||
2013 | 2012 | |||||||
Deferred tax assets: | ||||||||
Other real estate owned | $ | 92 | $ | 96 | ||||
Non-accrual loan interest | 49 | 65 | ||||||
Directors’ benefit plan | 272 | 274 | ||||||
Net operating loss carryforward | 3,684 | 3,536 | ||||||
Investment in subsidiary | 784 | 784 | ||||||
Net deferred loan origination fees | 101 | 109 | ||||||
Unrealized loss on available-for-sale securities | 83 | — | ||||||
Other | 246 | 192 | ||||||
Total deferred tax assets | 5,311 | 5,056 | ||||||
Less: valuation allowance | 3,223 | 3,166 | ||||||
Deferred tax liabilities: | ||||||||
Allowance for loan losses | 322 | 158 | ||||||
Mortgage servicing rights | 292 | 345 | ||||||
Partnership losses | 124 | 117 | ||||||
Unrealized gain on available-for-sale securities | — | 385 | ||||||
Depreciation | 344 | 343 | ||||||
Other | 207 | 211 | ||||||
Total deferred tax liabilities | 1,289 | 1,559 | ||||||
Net deferred tax asset | $ | 799 | $ | 331 |
Off_Balance_Sheet_Risk_Commitm1
Off Balance Sheet Risk Commitments and Contingencies (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Off Balance Sheet Risk Commitments And Contingencies Tables | ' | |||||||
Outstanding Commitments to Originate Loans | ' | |||||||
The following financial instruments were outstanding whose contract amounts represent credit risk: | ||||||||
31-Dec | ||||||||
2013 | 2012 | |||||||
Commitments to grant loans | $ | 5,936 | $ | 9,498 | ||||
Unfunded commitments under lines of credit | 12,940 | 13,074 | ||||||
Commercial and standby letters of credit | 59 | 4 |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Stockholders Equity Tables | ' | |||||||||||||||||||
Schedule of regulatory compliance | ' | |||||||||||||||||||
Actual | For Capital | To be Categorized as | ||||||||||||||||||
Adequacy Purposes | Well-Capitalized Under | |||||||||||||||||||
Prompt Corrective | ||||||||||||||||||||
Action Provisions | ||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||
Total capital (to risk-weighted assets) | $ | 24,033 | 17.9 | % | $ | 10,748 | 8 | % | $ | 13,436 | 10 | % | ||||||||
Tier 1 capital (to risk-weighted assets) | $ | 22,563 | 16.8 | % | $ | 5,374 | 4 | % | $ | 8,061 | 6 | % | ||||||||
Tangible capital (to tangible assets) | $ | 22,563 | 10.8 | % | $ | 3,137 | 1.5 | % | $ | 4,183 | 2 | % | ||||||||
31-Dec-12 | ||||||||||||||||||||
Total capital (to risk-weighted assets) | $ | 23,723 | 17.4 | % | $ | 10,930 | 8 | % | $ | 13,663 | 10 | % | ||||||||
Tier 1 capital (to risk-weighted assets) | $ | 22,015 | 16.1 | % | $ | 5,465 | 4 | % | $ | 8,198 | 6 | % | ||||||||
Tangible capital (to tangible assets) | $ | 22,015 | 10.3 | % | $ | 3,197 | 1.5 | % | $ | 4,263 | 2 | % |
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Employee Benefit Plans Tables | ' | |||||||||||||
Schedule of shares held by the ESOP | ' | |||||||||||||
Shares held by the ESOP include the following: | ||||||||||||||
31-Dec | ||||||||||||||
2013 | 2012 | |||||||||||||
Allocated | 116,465 | 121,608 | ||||||||||||
Unallocated | — | — | ||||||||||||
Total | 116,465 | 121,608 | ||||||||||||
Summary of stock option activity | ' | |||||||||||||
A summary of option activity under the Plans during the years ended December 31, 2013 and 2012 is presented below: | ||||||||||||||
Options | Shares | Weighted- | Weighted-Average | Aggregate | ||||||||||
Average | Remaining | Intrinsic Value | ||||||||||||
Exercise Price | Contractual Term | |||||||||||||
(Years) | ||||||||||||||
Outstanding at January 1, 2012 | 182,682 | $ | 9.47 | 4.3 | — | |||||||||
Granted | — | $ | 0 | |||||||||||
Exercised | — | $ | 0 | |||||||||||
Forfeited or Expired | (15,062 | ) | $ | 8.81 | ||||||||||
Outstanding at December 31, 2012 | 167,620 | $ | 9.53 | 3.38 | — | |||||||||
Granted | — | $ | 0 | |||||||||||
Exercised | — | $ | 0 | |||||||||||
Forfeited or expired | (17,590 | ) | $ | 9.6 | ||||||||||
Oustanding at December 31, 2013 | 150,030 | $ | 9.52 | 2.4 | — | |||||||||
Options Exercisable at December 31, 2013 | 150,030 | $ | 9.52 | 2.4 | — |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Measurements Tables | ' | ||||||||||||||||
Schedule of assets and liabilities measured at fair value on a recurring basis | ' | ||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis at December 31, 2013 | |||||||||||||||||
Quoted Prices | Significant | Significant | Balance at | ||||||||||||||
in Active | Other | Unobservable | December 31, | ||||||||||||||
Markets for | Observable | Inputs | 2013 | ||||||||||||||
Identical Assets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
Investment securities - available-for-sale: | |||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | — | $ | 7,042 | $ | — | $ | 7,042 | |||||||||
Municipal notes | — | 13,609 | — | 13,609 | |||||||||||||
Corporate securities | — | 1,097 | 1,097 | ||||||||||||||
Mortgage-backed securities | — | 28,603 | — | 28,603 | |||||||||||||
Equity securities | — | 7 | — | 7 | |||||||||||||
Total investment securities - available-for-sale | $ | — | $ | 50,358 | $ | — | $ | 50,358 | |||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis at December 31, 2012 | |||||||||||||||||
Quoted Prices | Significant | Significant | Balance at | ||||||||||||||
in Active | Other | Unobservable | December 31, | ||||||||||||||
Markets for | Observable | Inputs | 2012 | ||||||||||||||
Identical Assets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
Investment securities - available-for-sale: | |||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | — | $ | 9,247 | $ | — | $ | 9,247 | |||||||||
Municipal notes | — | 10,758 | — | 10,758 | |||||||||||||
Corporate securities | — | 1,150 | 1,150 | ||||||||||||||
Mortgage-backed securities | — | 29,608 | — | 29,608 | |||||||||||||
Equity securities | — | 1 | — | 1 | |||||||||||||
Total investment securities - available-for-sale | $ | — | $ | 50,764 | $ | — | $ | 50,764 | |||||||||
Schedule of assets measured at fair value on a nonrecurring basis | ' | ||||||||||||||||
Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2013 | |||||||||||||||||
Balance at December 31, 2013 | Quoted Prices in | Significant Other | Significant | ||||||||||||||
Active Markets | Observable | Unobservable Inputs | |||||||||||||||
for Identical | Inputs (Level 2) | (Level 3) | |||||||||||||||
Assets (Level 1) | |||||||||||||||||
Impaired loans accounted for under FASB ASC 310-10 | $ | 5,352 | $ | — | $ | — | $ | 5,352 | |||||||||
Other real estate owned - residential mortgages | $ | 285 | $ | — | $ | — | $ | 285 | |||||||||
Other real estate owned - commercial | $ | 472 | $ | — | $ | — | $ | 472 | |||||||||
Other repossessed assets | $ | 1,023 | $ | — | $ | — | $ | 1,023 | |||||||||
Total assets at fair value on a non-recurring basis | $ | 7,132 | |||||||||||||||
Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2012 | |||||||||||||||||
Balance at | Quoted Prices in | Significant Other | Significant | ||||||||||||||
31-Dec-12 | Active Markets | Observable | Unobservable Inputs | ||||||||||||||
for Identical | Inputs (Level 2) | (Level 3) | |||||||||||||||
Assets (Level 1) | |||||||||||||||||
Impaired loans accounted for under FASB ASC 310-10 | $ | 6,835 | $ | — | $ | — | $ | 6,835 | |||||||||
Other real estate owned - residential mortgages | $ | 947 | $ | — | $ | — | $ | 947 | |||||||||
Other real estate owned - commercial | $ | 319 | $ | — | $ | — | $ | 319 | |||||||||
Other repossessed assets | $ | 1,121 | $ | — | $ | — | $ | 1,121 | |||||||||
Total assets at fair value on a non-recurring basis | $ | 9,222 | |||||||||||||||
Schedule of carrying value and estimated fair values of Financial Instruments | ' | ||||||||||||||||
The estimated fair values and related carrying amounts of the Company’s financial instruments as of December 31, 2013 and 2012 are as follows: | |||||||||||||||||
31-Dec-13 | Carrying | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Value | Estimated | ||||||||||||||||
Fair Value | |||||||||||||||||
(dollars in thousands) | |||||||||||||||||
Financial assets: | |||||||||||||||||
Cash and cash equivalents | $ | 2,766 | $ | 2,766 | $ | — | $ | — | $ | 2,766 | |||||||
Securities available for sale | 50,358 | — | 50,358 | — | 50,358 | ||||||||||||
Securities held to maturity | 2,255 | — | 2,400 | — | 2,400 | ||||||||||||
Loans held for sale | 175 | 178 | 178 | ||||||||||||||
Loans receivable - net | 136,315 | — | — | 135,172 | 135,172 | ||||||||||||
Federal Home Loan Bank stock | 3,266 | — | 3,266 | — | 3,266 | ||||||||||||
Accrued interest receivable | 745 | — | — | 745 | 745 | ||||||||||||
Financial liabilities: | |||||||||||||||||
Customer deposits | 160,029 | — | 160,784 | — | 160,784 | ||||||||||||
Federal Home Loan Bank advances | 24,813 | — | 24,458 | — | 24,458 | ||||||||||||
Accrued interest payable | 89 | — | — | 89 | 89 | ||||||||||||
31-Dec-12 | Carrying | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Value | Estimated | ||||||||||||||||
Fair Value | |||||||||||||||||
(dollars in thousands) | |||||||||||||||||
Financial assets: | |||||||||||||||||
Cash and cash equivalents | $ | 2,752 | $ | 2,752 | $ | — | $ | — | $ | 2,752 | |||||||
Securities available for sale | 50,764 | — | $ | 50,764 | — | 50,764 | |||||||||||
Securities held to maturity | 2,345 | — | 2,570 | — | 2,570 | ||||||||||||
Loans held for sale | 79 | — | — | 84 | 84 | ||||||||||||
Loans receivable - net | 138,912 | — | — | 140,877 | 140,877 | ||||||||||||
Federal Home Loan Bank stock | 3,266 | — | 3,266 | — | 3,266 | ||||||||||||
Accrued interest receivable | 970 | — | 970 | 970 | |||||||||||||
Financial liabilities: | |||||||||||||||||
Customer deposits | 158,350 | — | 159,335 | — | 159,335 | ||||||||||||
Federal Home Loan Bank advances | 26,358 | — | 26,493 | — | 26,493 | ||||||||||||
REPO sweep accounts | 3,183 | — | 3,183 | — | 3,183 | ||||||||||||
Accrued interest payable | 100 | — | — | 100 | 100 |
ParentOnly_Financial_Statement1
Parent-Only Financial Statements (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Parent-Only Financial Statements Tables | ' | |||||||
Schedule of condensed balance sheet | ' | |||||||
Balance Sheets: | ||||||||
31-Dec | ||||||||
2013 | 2012 | |||||||
Assets | ||||||||
Cash at subsidiary bank | $ | 510 | $ | 817 | ||||
Investment in subsidiary | 22,701 | 23,304 | ||||||
Deferred tax asset | 318 | 318 | ||||||
Other assets | 1 | — | ||||||
Total assets | $ | 23,530 | $ | 24,439 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Liabilities | $ | 5 | $ | 4 | ||||
Stockholders’ equity | 23,525 | 24,435 | ||||||
Total liabilities and stockholders’ equity | $ | 23,530 | $ | 24,439 | ||||
Schedule of condensed income statement | ' | |||||||
Statements of Operations: | ||||||||
31-Dec | ||||||||
2013 | 2012 | |||||||
Operating income | $ | — | $ | — | ||||
Dividend income | — | 500 | ||||||
Operating expense | (249 | ) | (205 | ) | ||||
Income (Loss) before income taxes and equity in undistributed net income of subsidiary bank | (249 | ) | 295 | |||||
Income tax benefit | — | — | ||||||
Income (Loss) before equity in undistributed loss of subsidiary bank | (249 | ) | 295 | |||||
Equity in undistributed net income (loss) of subsidiary bank | 304 | (509 | ) | |||||
Net income (loss) | $ | 55 | $ | (214 | ) | |||
Schedule of condensed cash flow statement | ' | |||||||
Statements of Cash Flows: | ||||||||
31-Dec | ||||||||
2013 | 2012 | |||||||
Cash Flows from Operating Activities | ||||||||
Net income (loss) | $ | 55 | $ | (214 | ) | |||
Adjustments to reconcile net income (loss) to net cash from operating activities: | ||||||||
Stock options/awards | — | 2 | ||||||
Equity in undistributed net (income) loss of subsidiary bank | (304 | ) | 509 | |||||
Net change in other liabilities | 1 | 4 | ||||||
Net change in other assets | (1 | ) | — | |||||
Cash Flows from Financing Activities | ||||||||
Dividends paid | (58 | ) | — | |||||
Net cash provided by (used in) operating activities | (362 | ) | 515 | |||||
Net (Decrease) Increase in Cash | (307 | ) | 301 | |||||
Cash - Beginning of year | 817 | 516 | ||||||
Cash - End of year | $ | 510 | $ | 817 |
Quarterly_Results_of_Operation1
Quarterly Results of Operations (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Quarterly Results Of Operations Tables | ' | |||||||||||||
Schedule of quarterly results of operations | ' | |||||||||||||
The following tables summarize the Company’s quarterly results for the fiscal years ended December 31, 2013 and 2012: | ||||||||||||||
For the Three-Month Period Ending | ||||||||||||||
March 31, | June 30, | September 30, | December 31, | |||||||||||
2013 | 2013 | 2013 | 2013 | |||||||||||
Interest income | $ | 2,085 | $ | 2,095 | $ | 2,065 | $ | 2,074 | ||||||
Interest expense | 321 | 285 | 274 | 270 | ||||||||||
Net interest income | 1,764 | 1,810 | 1,791 | 1,804 | ||||||||||
Provision for loan losses | 144 | 196 | 32 | 265 | ||||||||||
Other income | 440 | 465 | 459 | 401 | ||||||||||
Other expenses | 1,992 | 2,082 | 2,036 | 2,132 | ||||||||||
Income (Loss) - before income tax expense (benefit) | 68 | (3 | ) | 182 | (192 | ) | ||||||||
Income tax (benefit) expense | — | — | — | — | ||||||||||
Net income (loss) | $ | 68 | $ | (3 | ) | $ | 182 | $ | (192 | ) | ||||
Net income (loss) per share | ||||||||||||||
Basic | $ | 0.02 | $ | (0.00 | ) | $ | 0.06 | $ | (0.07 | ) | ||||
Diluted | $ | 0.02 | $ | (0.00 | ) | $ | 0.06 | $ | (0.07 | ) | ||||
Weighted average number of shares outstanding - basic and dilutive | 2,884 | 2,884 | 2,884 | 2,884 | ||||||||||
Cash dividends declared per common share | $ | — | $ | — | $ | — | $ | 0.02 | ||||||
For the Three-Month Period Ending | ||||||||||||||
March 31, | June 30, | September 30, | December 31, | |||||||||||
2012 | 2012 | 2012 | 2012 | |||||||||||
Interest income | $ | 2,409 | $ | 2,352 | $ | 2,313 | $ | 2,169 | ||||||
Interest expense | 464 | 427 | 394 | 369 | ||||||||||
Net interest income | 1,945 | 1,925 | 1,919 | 1,800 | ||||||||||
Provision for loan losses | 376 | 578 | 234 | 179 | ||||||||||
Other income | 447 | 390 | 802 | 637 | ||||||||||
Other expenses | 2,301 | 2,143 | 2,077 | 2,191 | ||||||||||
Income - before income tax expense (benefit) | (285 | ) | (406 | ) | 410 | 67 | ||||||||
Income tax expense | (886 | ) | (136 | ) | 137 | 885 | ||||||||
Net income | $ | 601 | $ | (270 | ) | $ | 273 | $ | (818 | ) | ||||
Net income per share | ||||||||||||||
Basic | $ | 0.21 | $ | (0.09 | ) | $ | 0.09 | $ | (0.28 | ) | ||||
Diluted | $ | 0.21 | $ | (0.09 | ) | $ | 0.09 | $ | (0.28 | ) | ||||
Weighted average number of shares outstanding - basic and dilutive | 2,884 | 2,884 | 2,884 | 2,884 | ||||||||||
Cash dividends declared per common share | $ | — | $ | — | $ | — | $ | — |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details Narrative) (USD $) | 0 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Feb. 27, 2009 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 12, 2003 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
InsuranCenter of Alpena | Lower Range | Upper Range | Land Improvements | Land Improvements | Buildings | Buildings | Equipment | Equipment | ||||
Core Deposits | Core Deposits | Lower Range | Upper Range | Lower Range | Upper Range | Lower Range | Upper Range | |||||
Useful lives of property and equipment | ' | ' | ' | ' | ' | ' | '7 years | '10 years | '7 years | '40 years | '3 years | '10 years |
Useful lives of intangible assets | ' | ' | ' | ' | '10 years | '15 years | ' | ' | ' | ' | ' | ' |
Ownership interest | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | $600 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discount rate | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred tax valuation allowance | ' | 3,223 | 3,166 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred tax asset, net | ' | 799 | 331 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | ' | ' | $2 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive options | ' | 150,030 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Common Share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | ($192) | $182 | ($3) | $68 | ($818) | $273 | ($270) | $601 | $55 | ($214) |
Average number of common shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 2,884,049 | 2,884,049 |
Effect of dilutive options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average number of common shares outstanding used to calculate diluted earnings per common share | ' | ' | ' | ' | ' | ' | ' | ' | 2,884,049 | 2,884,049 |
Securities_Details_Narrative
Securities (Details Narrative) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Securities | Securities | |
Securities Details Narrative | ' | ' |
Securities pledged as collateral | $36,000 | $44,100 |
Gross proceeds from sale of securities | ' | 1,600 |
Gross gains from sale of securities | ' | 54 |
Gross losses from sale of securities | ' | 7 |
Tax effect from sale of securities | ' | 16 |
Number of securities with an unrealized loss | 39 | 10 |
Fair value of securities with an unrealized loss | $790 | $54 |
Securities_Details
Securities (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Available for Sale | ' | ' |
Available for Sale, Amortized Cost | $50,601 | $49,633 |
Available for Sale, Gross Unrealized Gains | 547 | 1,185 |
Available for Sale, Gross Unrealized (Losses) | -790 | -54 |
Available for Sale, Market Value | 50,358 | 50,764 |
Held to Maturity | ' | ' |
Held to Maturity, Amortized Cost | 2,255 | 2,345 |
Held to Maturity Securities, Gross Unrealized Gains | 145 | 225 |
Held to Maturity Securities, Gross Unrealized (Losses) | ' | ' |
Held to Maturity, Market Value | 2,400 | 2,570 |
US Treasury Securities and Obligations of US Government Corporations and Agencies | ' | ' |
Available for Sale | ' | ' |
Available for Sale, Amortized Cost | 7,111 | 9,181 |
Available for Sale, Gross Unrealized Gains | 36 | 66 |
Available for Sale, Gross Unrealized (Losses) | -105 | ' |
Available for Sale, Market Value | 7,042 | 9,247 |
Municipal Notes | ' | ' |
Available for Sale | ' | ' |
Available for Sale, Amortized Cost | 13,694 | 10,413 |
Available for Sale, Gross Unrealized Gains | 216 | 368 |
Available for Sale, Gross Unrealized (Losses) | -301 | -23 |
Available for Sale, Market Value | 13,609 | 10,758 |
Held to Maturity | ' | ' |
Held to Maturity, Amortized Cost | 2,255 | 2,345 |
Held to Maturity Securities, Gross Unrealized Gains | 145 | 225 |
Held to Maturity Securities, Gross Unrealized (Losses) | ' | ' |
Held to Maturity, Market Value | 2,400 | 2,570 |
Corporate Securities | ' | ' |
Available for Sale | ' | ' |
Available for Sale, Amortized Cost | 1,085 | 1,135 |
Available for Sale, Gross Unrealized Gains | 12 | 15 |
Available for Sale, Gross Unrealized (Losses) | ' | ' |
Available for Sale, Market Value | 1,097 | 1,150 |
Mortgage Backed Securities | ' | ' |
Available for Sale | ' | ' |
Available for Sale, Amortized Cost | 28,708 | 28,901 |
Available for Sale, Gross Unrealized Gains | 279 | 736 |
Available for Sale, Gross Unrealized (Losses) | -384 | -29 |
Available for Sale, Market Value | 28,603 | 29,608 |
Equity Securities | ' | ' |
Available for Sale | ' | ' |
Available for Sale, Amortized Cost | 3 | 3 |
Available for Sale, Gross Unrealized Gains | 4 | ' |
Available for Sale, Gross Unrealized (Losses) | ' | -2 |
Available for Sale, Market Value | $7 | $1 |
Securities_Details_1
Securities (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Amortized cost: | ' | ' |
Total | $50,601 | ' |
Fair Value: | ' | ' |
Total | 50,358 | ' |
Amortized Cost: | ' | ' |
Due in one year or less | 90 | ' |
Due after one year through five years | 490 | ' |
Due after five years through ten years | 700 | ' |
Due after ten years | 975 | ' |
Total | 2,255 | ' |
Fair Value: | ' | ' |
Due in one year or less | 92 | ' |
Due after one year through five years | 516 | ' |
Due after five years through ten years | 750 | ' |
Due after ten years | 1,042 | ' |
Total | 2,400 | 2,570 |
Available-for-sale Securities | ' | ' |
Amortized cost: | ' | ' |
Due in one year or less | 3,414 | ' |
Due after one year through five years | 10,779 | ' |
Due after five years through ten years | 6,461 | ' |
Due after ten years | 1,236 | ' |
Total | 21,890 | ' |
Fair Value: | ' | ' |
Due in one year or less | 3,427 | ' |
Due after one year through five years | 10,854 | ' |
Due after five years through ten years | 6,201 | ' |
Due after ten years | 1,266 | ' |
Total | 21,748 | ' |
Mortgage Backed Securities | ' | ' |
Amortized cost: | ' | ' |
Total | 3 | ' |
Fair Value: | ' | ' |
Total | 7 | ' |
Equity Securities | ' | ' |
Amortized cost: | ' | ' |
Total | 28,708 | ' |
Fair Value: | ' | ' |
Total | $28,603 | ' |
Securities_Details_2
Securities (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Securities available for sale | ' | ' |
Fair Value Less Than 12 Months | $22,373 | $4,262 |
Unrealized Loss Less Than 12 Months | -577 | -36 |
Fair Value Less Than 12 Months or Longer | 4,614 | 1,688 |
Unrealized Loss Less Than 12 Months or Longer | -213 | -18 |
Securities Held to Maturity | ' | ' |
Fair Value Less Than 12 Months | ' | ' |
Unrealized Loss Less Than 12 Months | ' | ' |
Fair Value Less Than 12 Months or Longer | ' | ' |
Unrealized Loss Less Than 12 Months or Longer | ' | ' |
US Treasury Securities and Obligations of US Government Corporations and Agencies | ' | ' |
Securities available for sale | ' | ' |
Fair Value Less Than 12 Months | ' | ' |
Unrealized Loss Less Than 12 Months | ' | ' |
Fair Value Less Than 12 Months or Longer | 894 | ' |
Unrealized Loss Less Than 12 Months or Longer | -105 | ' |
Municipal Notes | ' | ' |
Securities available for sale | ' | ' |
Fair Value Less Than 12 Months | 7,902 | 1,537 |
Unrealized Loss Less Than 12 Months | -243 | -23 |
Fair Value Less Than 12 Months or Longer | 1,668 | ' |
Unrealized Loss Less Than 12 Months or Longer | -58 | ' |
Securities Held to Maturity | ' | ' |
Fair Value Less Than 12 Months | ' | ' |
Unrealized Loss Less Than 12 Months | ' | ' |
Fair Value Less Than 12 Months or Longer | ' | ' |
Unrealized Loss Less Than 12 Months or Longer | ' | ' |
Mortgage Backed Securities | ' | ' |
Securities available for sale | ' | ' |
Fair Value Less Than 12 Months | 14,471 | 2,725 |
Unrealized Loss Less Than 12 Months | -334 | -13 |
Fair Value Less Than 12 Months or Longer | 2,052 | 1,687 |
Unrealized Loss Less Than 12 Months or Longer | -50 | -16 |
Equity Securities | ' | ' |
Securities available for sale | ' | ' |
Fair Value Less Than 12 Months | ' | ' |
Unrealized Loss Less Than 12 Months | ' | ' |
Fair Value Less Than 12 Months or Longer | ' | 1 |
Unrealized Loss Less Than 12 Months or Longer | ' | ($2) |
Loans_Details_Narrative
Loans (Details Narrative) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Loans Details Narrative | ' | ' |
Valuation allowance for TDR Loans | $230 | $13 |
Loans_Details
Loans (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Gross loans | $138,084 | $140,982 | ' |
Net deferred loan fees | 297 | 320 | ' |
Allowance for loan losses | 1,472 | 1,750 | 1,518 |
Total loans, net | 136,315 | 138,912 | ' |
One-to-Four Family Residential Real Estate | ' | ' | ' |
Gross loans | 63,839 | 66,539 | ' |
Allowance for loan losses | 784 | 906 | 870 |
Commercial Real Estate | ' | ' | ' |
Gross loans | 51,899 | 54,673 | ' |
Commercial Non Real Estate | ' | ' | ' |
Gross loans | 12,451 | 8,102 | ' |
Allowance for loan losses | 63 | 69 | 53 |
Total Commercial Loans | ' | ' | ' |
Gross loans | 64,350 | 62,775 | ' |
Consumer Real Estate | ' | ' | ' |
Gross loans | 8,730 | 10,409 | ' |
Allowance for loan losses | 62 | 99 | 146 |
Consumer Other | ' | ' | ' |
Gross loans | 1,165 | 1,259 | ' |
Allowance for loan losses | 21 | 33 | 46 |
Total Consumer Loans | ' | ' | ' |
Gross loans | $9,895 | $11,668 | ' |
Loans_Details_1
Loans (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Loans at fixed interest rates | $85,844 | ' |
Loans at variable interest rates | 52,240 | ' |
Gross loans | 138,084 | 140,982 |
Maturing Within One Year | ' | ' |
Loans at fixed interest rates | 7,713 | ' |
Loans at variable interest rates | 6,357 | ' |
Gross loans | 14,070 | ' |
Maturing One Year to Five Years | ' | ' |
Loans at fixed interest rates | 28,673 | ' |
Loans at variable interest rates | 12,280 | ' |
Gross loans | 40,953 | ' |
Maturing Five Years to Ten Years | ' | ' |
Loans at fixed interest rates | 49,458 | ' |
Loans at variable interest rates | 33,603 | ' |
Gross loans | $83,061 | ' |
Loans_Details_2
Loans (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Loans receivable from executive officers and directors | ' | ' |
Loans outstanding, beginning | $3,340 | $3,344 |
New loans | 2,524 | 1,166 |
Repayments | -2,491 | -1,170 |
Net change in directors and officers | -205 | ' |
Loans outstanding, ending | $3,168 | $3,340 |
Loans_Details_3
Loans (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
30-59 Days past due | $2,060 | $5,440 |
60-89 Days past due | 993 | 1,341 |
Greater than 90 days past due | 1,969 | 1,672 |
Total past due | 5,022 | 8,453 |
Current | 133,062 | 132,529 |
Gross loans | 138,084 | 140,982 |
Recorded investment > 90 days and accruing | 26 | 67 |
Commercial Real Estate Construction | ' | ' |
30-59 Days past due | ' | ' |
60-89 Days past due | ' | ' |
Greater than 90 days past due | 173 | 173 |
Total past due | 173 | 173 |
Current | ' | 2,073 |
Gross loans | 173 | 2,246 |
Recorded investment > 90 days and accruing | ' | ' |
Commercial Real Estate Other | ' | ' |
30-59 Days past due | ' | 3,210 |
60-89 Days past due | 521 | 540 |
Greater than 90 days past due | 1,441 | 282 |
Total past due | 1,962 | 4,032 |
Current | 49,764 | 48,395 |
Gross loans | 51,726 | 52,427 |
Recorded investment > 90 days and accruing | ' | ' |
Commercial Non Real Estate | ' | ' |
30-59 Days past due | 33 | 113 |
60-89 Days past due | 20 | ' |
Greater than 90 days past due | ' | ' |
Total past due | 53 | 113 |
Current | 12,398 | 7,989 |
Gross loans | 12,451 | 8,102 |
Recorded investment > 90 days and accruing | ' | ' |
Consumer Real Estate | ' | ' |
30-59 Days past due | 54 | 59 |
60-89 Days past due | 55 | ' |
Greater than 90 days past due | ' | 13 |
Total past due | 109 | 72 |
Current | 8,621 | 10,337 |
Gross loans | 8,730 | 10,409 |
Recorded investment > 90 days and accruing | ' | ' |
Consumer Other | ' | ' |
30-59 Days past due | ' | 11 |
60-89 Days past due | 4 | 5 |
Greater than 90 days past due | 2 | 6 |
Total past due | 6 | 22 |
Current | 1,159 | 1,237 |
Gross loans | 1,165 | 1,259 |
Recorded investment > 90 days and accruing | 2 | 6 |
One-to-Four Family Residential Real Estate | ' | ' |
30-59 Days past due | 1,973 | 2,047 |
60-89 Days past due | 393 | 796 |
Greater than 90 days past due | 353 | 1,198 |
Total past due | 2,719 | 4,041 |
Current | 61,120 | 62,498 |
Gross loans | 63,839 | 66,539 |
Recorded investment > 90 days and accruing | $24 | $61 |
Loans_Details_4
Loans (Details 4) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Gross loans | $138,084 | $140,982 |
Commercial Real Estate Construction | ' | ' |
Gross loans | 173 | 2,246 |
Commercial Real Estate Construction | Risk Grade 1 (Excellent) and Grade 2 (Good) | ' | ' |
Gross loans | ' | ' |
Commercial Real Estate Construction | Risk Grade 3 (Satisfactory) | ' | ' |
Gross loans | ' | 615 |
Commercial Real Estate Construction | Risk Grade 4 (Acceptable) | ' | ' |
Gross loans | ' | 1,458 |
Commercial Real Estate Construction | Risk Grade 5 (Other Assets Especially Mentioned) | ' | ' |
Gross loans | ' | ' |
Commercial Real Estate Construction | Risk Grade 6 (Substandard) | ' | ' |
Gross loans | 173 | 173 |
Commercial Real Estate Construction | Risk Grade 7 (Doubtful) | ' | ' |
Gross loans | ' | ' |
Commercial Real Estate Construction | Risk Grade 8 (Loss) | ' | ' |
Gross loans | ' | ' |
Commercial Real Estate Other | ' | ' |
Gross loans | 51,726 | 52,427 |
Commercial Real Estate Other | Risk Grade 1 (Excellent) and Grade 2 (Good) | ' | ' |
Gross loans | ' | ' |
Commercial Real Estate Other | Risk Grade 3 (Satisfactory) | ' | ' |
Gross loans | 16,187 | 13,895 |
Commercial Real Estate Other | Risk Grade 4 (Acceptable) | ' | ' |
Gross loans | 27,789 | 27,488 |
Commercial Real Estate Other | Risk Grade 5 (Other Assets Especially Mentioned) | ' | ' |
Gross loans | 4,835 | 2,712 |
Commercial Real Estate Other | Risk Grade 6 (Substandard) | ' | ' |
Gross loans | 2,915 | 8,332 |
Commercial Real Estate Other | Risk Grade 7 (Doubtful) | ' | ' |
Gross loans | ' | ' |
Commercial Real Estate Other | Risk Grade 8 (Loss) | ' | ' |
Gross loans | ' | ' |
Commercial Non Real Estate | ' | ' |
Gross loans | 12,451 | 8,102 |
Commercial Non Real Estate | Risk Grade 1 (Excellent) and Grade 2 (Good) | ' | ' |
Gross loans | ' | ' |
Commercial Non Real Estate | Risk Grade 3 (Satisfactory) | ' | ' |
Gross loans | 5,602 | 2,376 |
Commercial Non Real Estate | Risk Grade 4 (Acceptable) | ' | ' |
Gross loans | 6,699 | 5,489 |
Commercial Non Real Estate | Risk Grade 5 (Other Assets Especially Mentioned) | ' | ' |
Gross loans | 45 | 37 |
Commercial Non Real Estate | Risk Grade 6 (Substandard) | ' | ' |
Gross loans | 105 | 200 |
Commercial Non Real Estate | Risk Grade 7 (Doubtful) | ' | ' |
Gross loans | ' | ' |
Commercial Non Real Estate | Risk Grade 8 (Loss) | ' | ' |
Gross loans | ' | ' |
Loans_Details_5
Loans (Details 5) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Gross loans | $138,084 | $140,982 |
Commercial Non Real Estate | ' | ' |
Gross loans | 12,451 | 8,102 |
Commercial Non Real Estate | Risk Grade 6 (Substandard) | ' | ' |
Gross loans | 105 | 200 |
Commercial Non Real Estate | Risk Grade 5 (Other Assets Especially Mentioned) | ' | ' |
Gross loans | 45 | 37 |
One-to-Four Family Residential Real Estate | ' | ' |
Gross loans | 63,839 | 66,539 |
One-to-Four Family Residential Real Estate | Risk Grade 6 (Substandard) | ' | ' |
Gross loans | 675 | 1,871 |
One-to-Four Family Residential Real Estate | Risk Grade 5 (Other Assets Especially Mentioned) | ' | ' |
Gross loans | 63,164 | ' |
One-to-Four Family Residential Real Estate | Pass | ' | ' |
Gross loans | ' | 64,668 |
Consumer Real Estate | ' | ' |
Gross loans | 8,730 | 10,409 |
Consumer Real Estate | Performing | ' | ' |
Gross loans | 8,723 | 10,381 |
Consumer Real Estate | Nonperforming | ' | ' |
Gross loans | 7 | 28 |
Consumer Other | ' | ' |
Gross loans | 1,165 | 1,259 |
Consumer Other | Performing | ' | ' |
Gross loans | 1,163 | 1,253 |
Consumer Other | Nonperforming | ' | ' |
Gross loans | $2 | $6 |
Loans_Details_6
Loans (Details 6) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Recorded investment in non-accrual loans | $2,285 | $4,863 |
Commercial Real Estate Construction | ' | ' |
Recorded investment in non-accrual loans | 173 | 173 |
Commercial Real Estate Other | ' | ' |
Recorded investment in non-accrual loans | 1,454 | 2,851 |
Total Commercial Loans | ' | ' |
Recorded investment in non-accrual loans | ' | ' |
Consumer Real Estate | ' | ' |
Recorded investment in non-accrual loans | 7 | 28 |
Consumer Other | ' | ' |
Recorded investment in non-accrual loans | ' | 1 |
One-to-Four Family Residential Real Estate | ' | ' |
Recorded investment in non-accrual loans | $651 | $1,810 |
Loans_Details_7
Loans (Details 7) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Total Commercial Loans | ' | ' |
With no related allowance recorded: | ' | ' |
Unpaid Principal | ' | ' |
Recorded Investment | ' | ' |
Average Recorded Investment | ' | ' |
Interest income recognized | ' | ' |
With an allowance recorded: | ' | ' |
Unpaid Principal | ' | ' |
Related allowance | ' | ' |
Recorded Investment | ' | ' |
Average Recorded Investment | ' | ' |
Interest income recognized | ' | ' |
Total | ' | ' |
Unpaid Principal | ' | ' |
Recorded Investment | ' | ' |
Average Recorded Investment | ' | ' |
Interest income recognized | ' | ' |
Commercial Real Estate Construction | ' | ' |
With no related allowance recorded: | ' | ' |
Unpaid Principal | ' | 1,589 |
Recorded Investment | ' | 173 |
Average Recorded Investment | ' | 173 |
Interest income recognized | ' | ' |
With an allowance recorded: | ' | ' |
Unpaid Principal | 1,589 | ' |
Related allowance | ' | ' |
Recorded Investment | ' | ' |
Average Recorded Investment | 173 | ' |
Interest income recognized | ' | ' |
Total | ' | ' |
Unpaid Principal | 1,589 | 1,589 |
Recorded Investment | 173 | 173 |
Average Recorded Investment | 173 | 173 |
Interest income recognized | ' | ' |
Commercial Real Estate Other | ' | ' |
With no related allowance recorded: | ' | ' |
Unpaid Principal | 1,789 | 4,869 |
Recorded Investment | 1,788 | 4,535 |
Average Recorded Investment | 1,894 | 5,084 |
Interest income recognized | 104 | 138 |
With an allowance recorded: | ' | ' |
Unpaid Principal | 3,980 | 2,138 |
Related allowance | 3,391 | 2,127 |
Recorded Investment | 182 | 101 |
Average Recorded Investment | 3,397 | 2,167 |
Interest income recognized | 94 | 80 |
Total | ' | ' |
Unpaid Principal | 5,769 | 7,007 |
Recorded Investment | 5,179 | 6,662 |
Average Recorded Investment | 5,291 | 7,251 |
Interest income recognized | 198 | 218 |
Consumer Real Estate | ' | ' |
With no related allowance recorded: | ' | ' |
Unpaid Principal | 8 | 33 |
Recorded Investment | 7 | 28 |
Average Recorded Investment | 7 | 134 |
Interest income recognized | ' | ' |
With an allowance recorded: | ' | ' |
Unpaid Principal | ' | ' |
Related allowance | ' | ' |
Recorded Investment | ' | ' |
Average Recorded Investment | ' | ' |
Interest income recognized | ' | ' |
Total | ' | ' |
Unpaid Principal | 8 | 33 |
Recorded Investment | 7 | 28 |
Average Recorded Investment | 7 | 34 |
Interest income recognized | ' | ' |
Consumer Other | ' | ' |
With no related allowance recorded: | ' | ' |
Unpaid Principal | ' | 1 |
Recorded Investment | ' | 1 |
Average Recorded Investment | ' | 3 |
Interest income recognized | ' | ' |
With an allowance recorded: | ' | ' |
Unpaid Principal | ' | ' |
Related allowance | ' | ' |
Recorded Investment | ' | ' |
Average Recorded Investment | ' | ' |
Interest income recognized | ' | ' |
Total | ' | ' |
Unpaid Principal | ' | 1 |
Recorded Investment | ' | 1 |
Average Recorded Investment | ' | 3 |
Interest income recognized | ' | ' |
One-to-Four Family Residential Real Estate | ' | ' |
With no related allowance recorded: | ' | ' |
Unpaid Principal | 954 | 1,365 |
Recorded Investment | 722 | 1,194 |
Average Recorded Investment | 727 | 1,359 |
Interest income recognized | 6 | ' |
With an allowance recorded: | ' | ' |
Unpaid Principal | 53 | 616 |
Related allowance | 30 | 616 |
Recorded Investment | 5 | 141 |
Average Recorded Investment | 30 | 642 |
Interest income recognized | ' | ' |
Total | ' | ' |
Unpaid Principal | 1,007 | 1,981 |
Recorded Investment | 752 | 1,810 |
Average Recorded Investment | 757 | 2,001 |
Interest income recognized | $6 | ' |
Loans_Details_8
Loans (Details 8) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Loans | Loans | |
Troubled Debt Restructuring | ' | ' |
Number of contracts | 3 | 4 |
Pre-modification outstanding recorded investment | $749 | $3,542 |
Post-modification outstanding recorded investment | 749 | 2,737 |
Subsequent Default | ' | ' |
Number of contracts subsequently defaulted | ' | 1 |
Recorded investment of contracts subsequently defaulted | ' | 53 |
Commercial Real Estate Construction | ' | ' |
Troubled Debt Restructuring | ' | ' |
Number of contracts | ' | ' |
Pre-modification outstanding recorded investment | ' | ' |
Post-modification outstanding recorded investment | ' | ' |
Subsequent Default | ' | ' |
Number of contracts subsequently defaulted | ' | ' |
Recorded investment of contracts subsequently defaulted | ' | ' |
Commercial Real Estate Other | ' | ' |
Troubled Debt Restructuring | ' | ' |
Number of contracts | 1 | ' |
Pre-modification outstanding recorded investment | 412 | ' |
Post-modification outstanding recorded investment | 412 | ' |
Subsequent Default | ' | ' |
Number of contracts subsequently defaulted | ' | 1 |
Recorded investment of contracts subsequently defaulted | ' | 53 |
Commercial Non Real Estate | ' | ' |
Troubled Debt Restructuring | ' | ' |
Number of contracts | ' | 4 |
Pre-modification outstanding recorded investment | ' | 3,542 |
Post-modification outstanding recorded investment | ' | 2,737 |
Subsequent Default | ' | ' |
Number of contracts subsequently defaulted | ' | ' |
Recorded investment of contracts subsequently defaulted | ' | ' |
One-to-Four Family Residential Real Estate | ' | ' |
Troubled Debt Restructuring | ' | ' |
Number of contracts | 2 | ' |
Pre-modification outstanding recorded investment | 337 | ' |
Post-modification outstanding recorded investment | 337 | ' |
Subsequent Default | ' | ' |
Number of contracts subsequently defaulted | ' | ' |
Recorded investment of contracts subsequently defaulted | ' | ' |
Loans_Details_9
Loans (Details 9) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for loan losses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | $1,750 | ' | ' | ' | $1,518 | $1,750 | $1,518 |
Charge offs | ' | ' | ' | ' | ' | ' | ' | ' | -1,191 | -1,236 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 276 | 101 |
Provision | 265 | 32 | 196 | 144 | 179 | 234 | 578 | 376 | 637 | 1,367 |
Ending balance | 1,472 | ' | ' | ' | 1,750 | ' | ' | ' | 1,472 | 1,750 |
Individually evaluated for impairment | 235 | ' | ' | ' | 242 | ' | ' | ' | 235 | 242 |
Collectively evaluated for impairment | 1,237 | ' | ' | ' | 1,508 | ' | ' | ' | 1,237 | 1,508 |
Loans receivable (gross): | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross loans | 138,084 | ' | ' | ' | 140,982 | ' | ' | ' | 138,084 | 140,982 |
Individually evaluated for impairment | 6,111 | ' | ' | ' | 8,674 | ' | ' | ' | 6,111 | 8,674 |
Collectively evaluated for impairment | 131,973 | ' | ' | ' | 132,308 | ' | ' | ' | 131,973 | 132,308 |
Commercial Real Estate Construction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | 64 | ' | ' | ' | 10 | 64 | 10 |
Charge offs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Provision | ' | ' | ' | ' | ' | ' | ' | ' | -16 | 54 |
Ending balance | 48 | ' | ' | ' | 64 | ' | ' | ' | 48 | 64 |
Individually evaluated for impairment | 48 | ' | ' | ' | ' | ' | ' | ' | 48 | ' |
Collectively evaluated for impairment | ' | ' | ' | ' | 64 | ' | ' | ' | ' | 64 |
Loans receivable (gross): | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross loans | 173 | ' | ' | ' | 2,246 | ' | ' | ' | 173 | 2,246 |
Individually evaluated for impairment | 173 | ' | ' | ' | 173 | ' | ' | ' | 173 | 173 |
Collectively evaluated for impairment | ' | ' | ' | ' | 2,073 | ' | ' | ' | ' | 2,073 |
Commercial Real Estate Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | 579 | ' | ' | ' | 393 | 579 | 393 |
Charge offs | ' | ' | ' | ' | ' | ' | ' | ' | -674 | -265 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 114 | 10 |
Provision | ' | ' | ' | ' | ' | ' | ' | ' | 425 | 441 |
Ending balance | 444 | ' | ' | ' | 579 | ' | ' | ' | 444 | 579 |
Individually evaluated for impairment | 182 | ' | ' | ' | 101 | ' | ' | ' | 182 | 101 |
Collectively evaluated for impairment | 262 | ' | ' | ' | 478 | ' | ' | ' | 262 | 478 |
Loans receivable (gross): | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross loans | 51,726 | ' | ' | ' | 52,427 | ' | ' | ' | 51,726 | 52,427 |
Individually evaluated for impairment | 5,179 | ' | ' | ' | 6,662 | ' | ' | ' | 5,179 | 6,662 |
Collectively evaluated for impairment | 46,547 | ' | ' | ' | 45,765 | ' | ' | ' | 46,547 | 45,765 |
Commercial Non Real Estate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | 69 | ' | ' | ' | 53 | 69 | 53 |
Charge offs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Provision | ' | ' | ' | ' | ' | ' | ' | ' | -6 | 16 |
Ending balance | 63 | ' | ' | ' | 69 | ' | ' | ' | 63 | 69 |
Individually evaluated for impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Collectively evaluated for impairment | 63 | ' | ' | ' | 69 | ' | ' | ' | 63 | 69 |
Loans receivable (gross): | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross loans | 12,451 | ' | ' | ' | 8,102 | ' | ' | ' | 12,451 | 8,102 |
Individually evaluated for impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Collectively evaluated for impairment | 12,451 | ' | ' | ' | 8,102 | ' | ' | ' | 12,451 | 8,102 |
Consumer Real Estate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | 99 | ' | ' | ' | 146 | 99 | 146 |
Charge offs | ' | ' | ' | ' | ' | ' | ' | ' | -40 | -87 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 36 | 16 |
Provision | ' | ' | ' | ' | ' | ' | ' | ' | -33 | 24 |
Ending balance | 62 | ' | ' | ' | 99 | ' | ' | ' | 62 | 99 |
Individually evaluated for impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Collectively evaluated for impairment | 62 | ' | ' | ' | 99 | ' | ' | ' | 62 | 99 |
Loans receivable (gross): | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross loans | 8,730 | ' | ' | ' | 10,409 | ' | ' | ' | 8,730 | 10,409 |
Individually evaluated for impairment | 7 | ' | ' | ' | 28 | ' | ' | ' | 7 | 28 |
Collectively evaluated for impairment | 8,723 | ' | ' | ' | 10,381 | ' | ' | ' | 8,723 | 10,381 |
Consumer Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | 33 | ' | ' | ' | 46 | 33 | 46 |
Charge offs | ' | ' | ' | ' | ' | ' | ' | ' | -13 | -44 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 6 | 10 |
Provision | ' | ' | ' | ' | ' | ' | ' | ' | -5 | 21 |
Ending balance | 21 | ' | ' | ' | 33 | ' | ' | ' | 21 | 33 |
Individually evaluated for impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Collectively evaluated for impairment | 21 | ' | ' | ' | 33 | ' | ' | ' | 21 | 33 |
Loans receivable (gross): | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross loans | 1,165 | ' | ' | ' | 1,259 | ' | ' | ' | 1,165 | 1,259 |
Individually evaluated for impairment | ' | ' | ' | ' | 1 | ' | ' | ' | ' | 1 |
Collectively evaluated for impairment | 1,165 | ' | ' | ' | 1,258 | ' | ' | ' | 1,165 | 1,258 |
One-to-Four Family Residential Real Estate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | 906 | ' | ' | ' | 870 | 906 | 870 |
Charge offs | ' | ' | ' | ' | ' | ' | ' | ' | -464 | -840 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 120 | 65 |
Provision | ' | ' | ' | ' | ' | ' | ' | ' | 222 | 811 |
Ending balance | 784 | ' | ' | ' | 906 | ' | ' | ' | 784 | 906 |
Individually evaluated for impairment | 5 | ' | ' | ' | 141 | ' | ' | ' | 5 | 141 |
Collectively evaluated for impairment | 779 | ' | ' | ' | 765 | ' | ' | ' | 779 | 765 |
Loans receivable (gross): | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross loans | 63,839 | ' | ' | ' | 66,539 | ' | ' | ' | 63,839 | 66,539 |
Individually evaluated for impairment | 752 | ' | ' | ' | 1,810 | ' | ' | ' | 752 | 1,810 |
Collectively evaluated for impairment | 63,087 | ' | ' | ' | 64,729 | ' | ' | ' | 63,087 | 64,729 |
Unallocated Financing Receivables | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Charge offs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Provision | ' | ' | ' | ' | ' | ' | ' | ' | 50 | ' |
Ending balance | 50 | ' | ' | ' | ' | ' | ' | ' | 50 | ' |
Individually evaluated for impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Collectively evaluated for impairment | 50 | ' | ' | ' | ' | ' | ' | ' | 50 | ' |
Loans receivable (gross): | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Individually evaluated for impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Collectively evaluated for impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property_and_Equipment_Details
Property and Equipment (Details Narrative) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Property And Equipment Details Narrative | ' | ' |
Depreciation expense | $283 | $303 |
Property_and_Equipment_Details1
Property and Equipment (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property and equipment, gross | $11,013 | $11,227 |
Accumulated depreciation | 5,810 | 5,833 |
Property and equipment, net | 5,203 | 5,394 |
Land | ' | ' |
Property and equipment, gross | 1,071 | 1,112 |
Land Improvements | ' | ' |
Property and equipment, gross | 182 | 184 |
Buildings | ' | ' |
Property and equipment, gross | 6,237 | 6,249 |
Equipment | ' | ' |
Property and equipment, gross | $3,523 | $3,682 |
Servicing_Details_Narrative
Servicing (Details Narrative) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Servicing Details Narrative | ' | ' |
Unpaid principal balances of mortgage and other loans serviced for others | $131,700 | $140,700 |
Fair value of mortgage servicing rights | $1,100 | $1,000 |
Servicing_Details
Servicing (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Servicing Details | ' | ' |
Annual constant prepayment speed (CPR) | 10.27% | 17.86% |
Weighted average life | '244 months | '246 months |
Discount rate | 9.26% | 8.11% |
Servicing_Details_1
Servicing (Details 1) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Rollforward of Mortgage Servicing Rights: | ' | ' |
Balance - beginning of period | $1,035 | $993 |
Originated mortgage servicing rights capitalized | 151 | 426 |
Amortization of mortgage servicing rights | -326 | -384 |
Balance - end of period | 860 | 1,035 |
Valuation allowances: | ' | ' |
Balance - beginning of period | -19 | ' |
Additions | ' | -19 |
Reductions | 19 | ' |
Write-downs | ' | ' |
Originated mortgage servicing rights - net (Note 5) | $860 | $1,016 |
Intangible_Assets_Details_Narr
Intangible Assets (Details Narrative) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Intangible Assets Details Narrative | ' | ' |
Amortization expense | $119 | $177 |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Gross Carrying Amount | $625 | $3,681 |
Accumulated Amortization | 585 | 3,523 |
Total | 40 | 158 |
Core Deposits | ' | ' |
Gross Carrying Amount | 25 | 3,081 |
Accumulated Amortization | 24 | 3,078 |
Total | 1 | 3 |
Commission Residual | ' | ' |
Gross Carrying Amount | 600 | 600 |
Accumulated Amortization | 561 | 445 |
Total | $39 | $155 |
Intangible_Assets_Details_1
Intangible Assets (Details 1) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Core Deposits | ' |
Amortization expense for future fiscal years: | ' |
2014 | $1 |
Commission Residual | ' |
Amortization expense for future fiscal years: | ' |
2014 | $39 |
Deposits_Details_Narrative
Deposits (Details Narrative) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deposits Details Narrative | ' | ' |
Certificates of deposit in denominations of $100,000 or more | $22,900 | $26,000 |
Deposits from related parties | $632 | $1,300 |
Deposits_Details
Deposits (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deposits: | ' | ' |
NOW accounts and MMDA | $50,022 | $44,218 |
Regular savings accounts | 22,037 | 19,867 |
Total | 72,259 | 64,085 |
Certificates of deposit | 66,723 | 73,198 |
Total interest-bearing deposits | 138,982 | 137,283 |
Interest Rates 0.50 percent to 0.99 percent | ' | ' |
Deposits: | ' | ' |
Certificates of deposit | 40,259 | 42,698 |
Interest Rates 0.50 percent to 0.99 percent | Lower Range | ' | ' |
Deposits: | ' | ' |
Interest Rate | 0.50% | ' |
Interest Rates 0.50 percent to 0.99 percent | Upper Range | ' | ' |
Deposits: | ' | ' |
Interest Rate | 0.99% | ' |
Interest Rates 1.00 percent to 1.99 percent | ' | ' |
Deposits: | ' | ' |
Certificates of deposit | 17,715 | 15,962 |
Interest Rates 1.00 percent to 1.99 percent | Lower Range | ' | ' |
Deposits: | ' | ' |
Interest Rate | 1.00% | ' |
Interest Rates 1.00 percent to 1.99 percent | Upper Range | ' | ' |
Deposits: | ' | ' |
Interest Rate | 1.99% | ' |
Interest Rates 2.00 percent to 2.99 percent | ' | ' |
Deposits: | ' | ' |
Certificates of deposit | 7,130 | 10,746 |
Interest Rates 2.00 percent to 2.99 percent | Lower Range | ' | ' |
Deposits: | ' | ' |
Interest Rate | 2.00% | ' |
Interest Rates 2.00 percent to 2.99 percent | Upper Range | ' | ' |
Deposits: | ' | ' |
Interest Rate | 2.99% | ' |
Interest Rates 3.00 percent to 3.99 percent | ' | ' |
Deposits: | ' | ' |
Certificates of deposit | 1,486 | 3,398 |
Interest Rates 3.00 percent to 3.99 percent | Lower Range | ' | ' |
Deposits: | ' | ' |
Interest Rate | 3.00% | ' |
Interest Rates 3.00 percent to 3.99 percent | Upper Range | ' | ' |
Deposits: | ' | ' |
Interest Rate | 3.99% | ' |
Interest Rates 4.00 percent to 4.99 percent | ' | ' |
Deposits: | ' | ' |
Certificates of deposit | $133 | $394 |
Interest Rates 4.00 percent to 4.99 percent | Lower Range | ' | ' |
Deposits: | ' | ' |
Interest Rate | 4.00% | ' |
Interest Rates 4.00 percent to 4.99 percent | Upper Range | ' | ' |
Deposits: | ' | ' |
Interest Rate | 4.99% | ' |
Deposits_Details_1
Deposits (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Maturities of certificates of deposit: | ' | ' |
Less than 1 Year | $32,951 | ' |
1-2 Years | 16,547 | ' |
2-3 Years | 7,727 | ' |
3-5 Years | 3,729 | ' |
Greater than 5 Years | 5,769 | ' |
Certificates of deposit | 66,723 | 73,198 |
Interest Rates 0.50 percent to 0.99 percent | ' | ' |
Maturities of certificates of deposit: | ' | ' |
Less than 1 Year | 27,892 | ' |
1-2 Years | 11,193 | ' |
2-3 Years | 877 | ' |
3-5 Years | 297 | ' |
Greater than 5 Years | ' | ' |
Certificates of deposit | 40,259 | 42,698 |
Interest Rates 0.50 percent to 0.99 percent | Lower Range | ' | ' |
Maturities of certificates of deposit: | ' | ' |
Interest Rate | 0.50% | ' |
Interest Rates 0.50 percent to 0.99 percent | Upper Range | ' | ' |
Maturities of certificates of deposit: | ' | ' |
Interest Rate | 0.99% | ' |
Interest Rates 1.00 percent to 1.99 percent | ' | ' |
Maturities of certificates of deposit: | ' | ' |
Less than 1 Year | 3,324 | ' |
1-2 Years | 953 | ' |
2-3 Years | 6,408 | ' |
3-5 Years | 3,315 | ' |
Greater than 5 Years | 3,715 | ' |
Certificates of deposit | 17,715 | 15,962 |
Interest Rates 1.00 percent to 1.99 percent | Lower Range | ' | ' |
Maturities of certificates of deposit: | ' | ' |
Interest Rate | 1.00% | ' |
Interest Rates 1.00 percent to 1.99 percent | Upper Range | ' | ' |
Maturities of certificates of deposit: | ' | ' |
Interest Rate | 1.99% | ' |
Interest Rates 2.00 percent to 2.99 percent | ' | ' |
Maturities of certificates of deposit: | ' | ' |
Less than 1 Year | 1,313 | ' |
1-2 Years | 3,861 | ' |
2-3 Years | 409 | ' |
3-5 Years | 51 | ' |
Greater than 5 Years | 1,496 | ' |
Certificates of deposit | 7,130 | 10,746 |
Interest Rates 2.00 percent to 2.99 percent | Lower Range | ' | ' |
Maturities of certificates of deposit: | ' | ' |
Interest Rate | 2.00% | ' |
Interest Rates 2.00 percent to 2.99 percent | Upper Range | ' | ' |
Maturities of certificates of deposit: | ' | ' |
Interest Rate | 2.99% | ' |
Interest Rates 3.00 percent to 3.99 percent | ' | ' |
Maturities of certificates of deposit: | ' | ' |
Less than 1 Year | 422 | ' |
1-2 Years | 494 | ' |
2-3 Years | ' | ' |
3-5 Years | 12 | ' |
Greater than 5 Years | 558 | ' |
Certificates of deposit | 1,486 | 3,398 |
Interest Rates 3.00 percent to 3.99 percent | Lower Range | ' | ' |
Maturities of certificates of deposit: | ' | ' |
Interest Rate | 3.00% | ' |
Interest Rates 3.00 percent to 3.99 percent | Upper Range | ' | ' |
Maturities of certificates of deposit: | ' | ' |
Interest Rate | 3.99% | ' |
Interest Rates 4.00 percent to 4.99 percent | ' | ' |
Maturities of certificates of deposit: | ' | ' |
Less than 1 Year | ' | ' |
1-2 Years | 46 | ' |
2-3 Years | 33 | ' |
3-5 Years | 54 | ' |
Greater than 5 Years | ' | ' |
Certificates of deposit | $133 | $394 |
Interest Rates 4.00 percent to 4.99 percent | Lower Range | ' | ' |
Maturities of certificates of deposit: | ' | ' |
Interest Rate | 4.00% | ' |
Interest Rates 4.00 percent to 4.99 percent | Upper Range | ' | ' |
Maturities of certificates of deposit: | ' | ' |
Interest Rate | 4.99% | ' |
Deposits_Details_2
Deposits (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Interest expense on deposits: | ' | ' |
NOW and MMDAs | $98 | $95 |
Savings accounts | 11 | 10 |
Certificates of deposit | 717 | 929 |
Total | $826 | $1,034 |
Federal_Home_Loan_Bank_and_Fed2
Federal Home Loan Bank and Federal Reserve Advances (Details Narrative) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Lower range of interest rate of FHLB advances | 0.30% | ' |
Upper range of interest rate of FHLB advances | 2.21% | ' |
Weighted average interest rate of FHLB advances | 1.00% | ' |
Year last FHLB advance is due | '2023 | ' |
Weighted average maturity for FHLB advances | '32 months | ' |
Available borrowings with FHLB | $52,000 | $24,800 |
Variable rate FHLB advances | 1,500 | ' |
Percentage of collateral which FRB discount borrowings may not exceed | 0.75% | ' |
Weighted average interest rate of Federal Reserve Bank borrowings | 0.75% | ' |
Securities | ' | ' |
Collateral for FHLB advances | 20,400 | 31,700 |
Collateral for Federal Reserve Bank borrowings | 7,900 | ' |
Mortgage Loans | ' | ' |
Collateral for FHLB advances | $49,600 | $50,000 |
Federal_Home_Loan_Bank_and_Fed3
Federal Home Loan Bank and Federal Reserve Advances (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
FHLB advances maturing in the year ending December 31, | ' | ' |
2014 | $7,715 | ' |
2014 | 2,526 | ' |
2015 | 6,938 | ' |
2016 | 5,729 | ' |
2017 | 661 | ' |
Thereafter | 1,244 | ' |
Total | $24,813 | $26,358 |
Weighted average interest rate of FHLB advances maturing in the year ending December 31, | ' | ' |
2013 | 0.44% | ' |
2014 | 0.81% | ' |
2015 | 1.15% | ' |
2016 | 1.49% | ' |
2017 | 1.17% | ' |
Thereafter | 1.61% | ' |
Weighted average interest rate of FHLB advances | 1.00% | ' |
Federal_Income_Tax_Details_Nar
Federal Income Tax (Details Narrative) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Federal Income Tax Details Narrative | ' | ' |
Statutory tax rate | 34.00% | ' |
Net operating loss carryforwards | $10,800 | ' |
Total deferred tax reserve liabilities | 60 | 60 |
Unrecognized deferred tax liabilitiy | $20 | $20 |
Federal_Income_Tax_Details
Federal Income Tax (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Federal Income Tax Details | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current provision | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred benefit | ' | ' | ' | ' | ' | ' | ' | ' | -57 | -138 |
Change in valuation allowance | ' | ' | ' | ' | ' | ' | ' | ' | 57 | 138 |
Income tax expense | ' | ' | ' | ' | $885 | $137 | ($136) | ($886) | ' | ' |
Federal_Income_Tax_Details_1
Federal Income Tax (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of federal income tax expense and statutory federal tax rate: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax (benefit) expense at statutory rate | ' | ' | ' | ' | ' | ' | ' | ' | $19 | ($73) |
Increase (decrease) from: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Change in valuation allowance | ' | ' | ' | ' | ' | ' | ' | ' | 57 | 138 |
Tax-exempt interest | ' | ' | ' | ' | ' | ' | ' | ' | -52 | -52 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | -24 | -13 |
Income tax expense | ' | ' | ' | ' | $885 | $137 | ($136) | ($886) | ' | ' |
Federal_Income_Tax_Details_2
Federal Income Tax (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Other real estate owned | $92 | $96 |
Non-accrual loan interest | 49 | 65 |
Directors' benefit plan | 272 | 274 |
Net operating loss carryforward | 3,684 | 3,536 |
Investment in subsidiary | 784 | 784 |
Net deferred loan origination fees | 101 | 109 |
Unrealized gain on available-for-sale securities | 83 | ' |
Other | 246 | 192 |
Total deferred tax assets | 5,311 | 5,056 |
Less: valuation allowance | 3,223 | 3,166 |
Deferred tax liabilities: | ' | ' |
Allowance for loan losses | 322 | 158 |
Mortgage servicing rights | 292 | 345 |
Partnership losses | 124 | 117 |
Unrealized gain on available-for-sale securities | ' | 385 |
Depreciation | 344 | 343 |
Other | 207 | 211 |
Total deferred tax liabilities | 1,289 | 1,559 |
Net deferred tax asset | $799 | $331 |
Off_Balance_Sheet_Risk_Commitm2
Off Balance Sheet Risk Commitments and Contingencies (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Commitments to grant loans | ' | ' |
Commitments | $5,936 | $9,498 |
Unfunded commitments under lines of credit | ' | ' |
Commitments | 12,940 | 13,074 |
Commercial and standby letters of credit | ' | ' |
Commitments | $59 | $4 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Total Capital | ' | ' |
Total Capital (to risk-weighted assets) | $24,033 | $23,723 |
Total Capital (to risk-weighted assets) ratio | 17.90% | 17.40% |
Minimum amount of capital for adequacy purposes | 10,748 | 10,930 |
Minimum amount of capital for adequacy purposes, ratio | 8.00% | 8.00% |
Minimum capital required to be well-capitalized under prompt corrective action provisions | 13,436 | 13,663 |
Minimum capital required to be well-capitalized under prompt corrective action provisions, ratio | 10.00% | 10.00% |
Tier 1 Capital (to risk-weighted assets) | ' | ' |
Tier 1 Capital (to risk-weighted assets) | 22,563 | 22,015 |
Tier 1 Capital (to risk-weighted assets) ratio | 16.80% | 16.10% |
Minimum amount of Tier 1 Capital for adequacy purposes | 5,374 | 5,465 |
Minimum amount of Tier 1 Capital for adequacy purposes, ratio | 4.00% | 4.00% |
Minimum Tier 1 Capital required to be well-capitalized under prompt corrective action provisions | 8,061 | 8,198 |
Minimum Tier 1 Capital required to be well-capitalized under prompt corrective action provisions, ratio | 6.00% | 6.00% |
Tier 1 Capital (to average assets) | ' | ' |
Tier 1 Capital (to average assets) | 22,563 | 22,015 |
Tier 1 Capital (to average assets) ratio | 10.80% | 10.30% |
Minimum amount of Tier 1 Capital for adequacy purposes | 3,137 | 3,197 |
Minimum amount of Tier 1 Capital for adequacy purposes, ratio | 1.50% | 1.50% |
Minimum Tier 1 Capital required to be well-capitalized under prompt corrective action provisions | $4,183 | $4,263 |
Minimum Tier 1 Capital required to be well-capitalized under prompt corrective action provisions, ratio | 2.00% | 2.00% |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details Narrative) (USD $) | 1 Months Ended | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Jan. 31, 1994 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2005 | Dec. 31, 2011 |
Expense recognized for contributions to the defined benefit pension plan | ' | $72 | $87 | ' | ' |
Expense recognized for contributions to the 401(k) plan | ' | 89 | 94 | ' | ' |
Nonqualified deferred compensation plan balance | ' | 801 | 807 | ' | ' |
Nonqualified deferred compensation plan expense | ' | 78 | 71 | ' | ' |
Employee Stock Ownership Plan: | ' | ' | ' | ' | ' |
Amount borrowed to fund shares held in ESOP | 480 | ' | ' | ' | ' |
Shares purchased and funded into ESOP | 48,000 | ' | ' | ' | ' |
Price paid per share for shares purchased to fund ESOP | $10 | ' | ' | $10 | ' |
Percentage of shares purchased and funded into ESOP | ' | ' | ' | 8.00% | ' |
Shares purchased by ESOP using funds loaned by the company | ' | ' | ' | 138,709 | ' |
Loan term | ' | ' | ' | '15 years | ' |
Shares sold in open market under ESOP | ' | 2,793 | 13,687 | ' | ' |
ESOP compensation expense | ' | ' | ' | ' | ' |
Shares distributed to participants | ' | 1,350 | 3,065 | ' | ' |
Stock-Based Compensation Plans: | ' | ' | ' | ' | ' |
Share price | ' | $5.40 | ' | ' | ' |
Intrinsic value per stock option | ' | $0 | $0 | ' | ' |
Stock option exercise price | ' | $9.53 | $9.53 | ' | $9.47 |
Share-based Compensation expense | ' | ' | 2 | ' | ' |
Stock Options | ' | ' | ' | ' | ' |
Stock-Based Compensation Plans: | ' | ' | ' | ' | ' |
Shares available for grant | ' | 54,656 | ' | ' | ' |
Fair value of option shares vested in the year | ' | ' | 4 | ' | ' |
Share-based Compensation expense | ' | ' | 1 | ' | ' |
Stock Options | Lower Range | ' | ' | ' | ' | ' |
Stock-Based Compensation Plans: | ' | ' | ' | ' | ' |
Stock option exercise price | ' | $7.60 | ' | ' | ' |
Stock Options | Upper Range | ' | ' | ' | ' | ' |
Stock-Based Compensation Plans: | ' | ' | ' | ' | ' |
Stock option exercise price | ' | $9.65 | ' | ' | ' |
Restricted Stock | ' | ' | ' | ' | ' |
Stock-Based Compensation Plans: | ' | ' | ' | ' | ' |
Shares available for grant | ' | 5,304 | ' | ' | ' |
Share-based Compensation expense | ' | ' | $1 | ' | ' |
Vesting term | ' | '5 years | ' | ' | ' |
1996 Stock Option Plan | ' | ' | ' | ' | ' |
Stock-Based Compensation Plans: | ' | ' | ' | ' | ' |
Number of awards authorized | ' | 127,491 | ' | ' | ' |
2006 Stock-Based Incentive Plan | ' | ' | ' | ' | ' |
Stock-Based Compensation Plans: | ' | ' | ' | ' | ' |
Number of awards authorized | ' | 242,740 | ' | ' | ' |
2006 Stock-Based Incentive Plan | Stock Options | ' | ' | ' | ' | ' |
Stock-Based Compensation Plans: | ' | ' | ' | ' | ' |
Number of awards authorized | ' | 173,386 | ' | ' | ' |
2006 Stock-Based Incentive Plan | Restricted Stock | ' | ' | ' | ' | ' |
Stock-Based Compensation Plans: | ' | ' | ' | ' | ' |
Number of awards authorized | ' | 69,354 | ' | ' | ' |
Employee_Benefit_Plans_Details1
Employee Benefit Plans (Details) | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Benefit Plans Details | ' | ' |
Number of shares allocated | 116,465 | 121,608 |
Number of shares unallocated | ' | ' |
Total ESOP Shares | 116,465 | 121,608 |
Employee_Benefit_Plans_Details2
Employee Benefit Plans (Details 1) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Number of Options | ' | ' | ' |
Outstanding, Beginning balance | 167,620 | 182,682 | ' |
Granted | ' | ' | ' |
Exercised | ' | ' | ' |
Forfeited or expired | -17,590 | -15,062 | ' |
Outstanding, Ending balance | 150,030 | 167,620 | 182,682 |
Options Exercisable | 150,030 | ' | ' |
Weighted Average Exercise Price | ' | ' | ' |
Outstanding, Beginning Balance | $9.53 | $9.47 | ' |
Forfeited or expired | $9.60 | $8.81 | ' |
Outstanding, Ending Balance | $9.53 | $9.53 | $9.47 |
Options Exercisable | $9.52 | ' | ' |
Weighted Average Remaining Contractual Term | ' | ' | ' |
Outstanding, ending | '2 years 4 months 24 days | '3 years 4 months 17 days | '4 years 3 months 18 days |
Options exercisable | '2 years 4 months 24 days | ' | ' |
Aggregate Intrinsic Value | ' | ' | ' |
Outstanding, Beginning Balance | ' | ' | ' |
Outstanding, Ending Balance | ' | ' | ' |
Options Exercisable | ' | ' | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Securities available for sale | $50,358 | $50,764 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Securities available for sale | ' | ' |
Significant Other Observable Inputs (Level 2) | ' | ' |
Securities available for sale | 50,358 | 50,764 |
Significant Unobservable Inputs (Level 3) | ' | ' |
Securities available for sale | ' | ' |
Fair Value | ' | ' |
Securities available for sale | 50,358 | 50,764 |
US Treasury Securities and Obligations of US Government Corporations and Agencies | ' | ' |
Securities available for sale | 7,042 | 9,247 |
Municipal Notes | ' | ' |
Securities available for sale | 13,609 | 10,758 |
Corporate Securities | ' | ' |
Securities available for sale | 1,097 | 1,150 |
Mortgage Backed Securities | ' | ' |
Securities available for sale | 28,603 | 29,608 |
Equity Securities | ' | ' |
Securities available for sale | 7 | 1 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Securities available for sale | ' | ' |
Recurring | Significant Other Observable Inputs (Level 2) | ' | ' |
Securities available for sale | 50,358 | 50,764 |
Recurring | Significant Unobservable Inputs (Level 3) | ' | ' |
Securities available for sale | ' | ' |
Recurring | Fair Value | ' | ' |
Securities available for sale | 50,358 | 50,764 |
Recurring | US Treasury Securities and Obligations of US Government Corporations and Agencies | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Securities available for sale | ' | ' |
Recurring | US Treasury Securities and Obligations of US Government Corporations and Agencies | Significant Other Observable Inputs (Level 2) | ' | ' |
Securities available for sale | 7,042 | 9,247 |
Recurring | US Treasury Securities and Obligations of US Government Corporations and Agencies | Significant Unobservable Inputs (Level 3) | ' | ' |
Securities available for sale | ' | ' |
Recurring | US Treasury Securities and Obligations of US Government Corporations and Agencies | Fair Value | ' | ' |
Securities available for sale | 7,042 | 9,247 |
Recurring | Municipal Notes | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Securities available for sale | ' | ' |
Recurring | Municipal Notes | Significant Other Observable Inputs (Level 2) | ' | ' |
Securities available for sale | 13,609 | 10,758 |
Recurring | Municipal Notes | Significant Unobservable Inputs (Level 3) | ' | ' |
Securities available for sale | ' | ' |
Recurring | Municipal Notes | Fair Value | ' | ' |
Securities available for sale | 13,609 | 10,758 |
Recurring | Corporate Securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Securities available for sale | ' | ' |
Recurring | Corporate Securities | Significant Other Observable Inputs (Level 2) | ' | ' |
Securities available for sale | 1,097 | 1,150 |
Recurring | Corporate Securities | Significant Unobservable Inputs (Level 3) | ' | ' |
Securities available for sale | ' | ' |
Recurring | Corporate Securities | Fair Value | ' | ' |
Securities available for sale | 1,097 | 1,150 |
Recurring | Mortgage Backed Securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Securities available for sale | ' | ' |
Recurring | Mortgage Backed Securities | Significant Other Observable Inputs (Level 2) | ' | ' |
Securities available for sale | 28,603 | 29,608 |
Recurring | Mortgage Backed Securities | Significant Unobservable Inputs (Level 3) | ' | ' |
Securities available for sale | ' | ' |
Recurring | Mortgage Backed Securities | Fair Value | ' | ' |
Securities available for sale | 28,603 | 29,608 |
Recurring | Equity Securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Securities available for sale | ' | ' |
Recurring | Equity Securities | Significant Other Observable Inputs (Level 2) | ' | ' |
Securities available for sale | 7 | 1 |
Recurring | Equity Securities | Significant Unobservable Inputs (Level 3) | ' | ' |
Securities available for sale | ' | ' |
Recurring | Equity Securities | Fair Value | ' | ' |
Securities available for sale | $7 | $1 |
Recovered_Sheet1
Fair value Measurements (Details 1) (Nonrecurring, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value | ' | ' |
Fair Value Assets Measured on a Nonrecurring Basis | ' | ' |
Impaired loans | $5,352 | $6,835 |
Other real estate owned - residential mortgages | 285 | 947 |
Other real estate owned - commercial | 472 | 319 |
Other repossessed assets | 1,023 | 1,121 |
Total assets measured at fair value on a non-recurring basis | ' | 9,222 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Fair Value Assets Measured on a Nonrecurring Basis | ' | ' |
Impaired loans | ' | 6,835 |
Other real estate owned - residential mortgages | ' | 947 |
Other real estate owned - commercial | ' | 319 |
Other repossessed assets | ' | 1,121 |
Significant Other Observable Inputs (Level 2) | ' | ' |
Fair Value Assets Measured on a Nonrecurring Basis | ' | ' |
Impaired loans | ' | ' |
Other real estate owned - residential mortgages | ' | ' |
Other real estate owned - commercial | ' | ' |
Other repossessed assets | ' | ' |
Significant Unobservable Inputs (Level 3) | ' | ' |
Fair Value Assets Measured on a Nonrecurring Basis | ' | ' |
Impaired loans | 5,352 | ' |
Other real estate owned - residential mortgages | 285 | ' |
Other real estate owned - commercial | 472 | ' |
Other repossessed assets | 1,023 | ' |
Total assets measured at fair value on a non-recurring basis | $7,132 | ' |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financial assets: | ' | ' |
Securities available for sale | $50,358 | $50,764 |
Securities held to maturity | 2,400 | 2,570 |
Carrying Value | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | 2,766 | 2,752 |
Securities available for sale | 50,358 | 50,764 |
Securities held to maturity | 22,555 | 2,345 |
Loans held for sale | 175 | 79 |
Loans receivable - net | 136,315 | 138,912 |
Federal Home Loan Bank stock | 3,266 | 3,266 |
Accrued interest receivable | 745 | 970 |
Financial liabilities: | ' | ' |
Customer deposits | 160,029 | 158,350 |
Federal Home Loan Bank advances | 24,813 | 26,358 |
REPO sweep accounts | ' | 3,183 |
Accrued interest payable | 89 | 100 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | 2,766 | 2,752 |
Securities available for sale | ' | ' |
Securities held to maturity | ' | ' |
Loans held for sale | ' | ' |
Loans receivable - net | ' | ' |
Federal Home Loan Bank stock | ' | ' |
Accrued interest receivable | ' | ' |
Financial liabilities: | ' | ' |
Customer deposits | ' | ' |
Federal Home Loan Bank advances | ' | ' |
REPO sweep accounts | ' | ' |
Accrued interest payable | ' | ' |
Significant Other Observable Inputs (Level 2) | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | ' | ' |
Securities available for sale | 50,358 | 50,764 |
Securities held to maturity | 2,400 | 2,570 |
Loans held for sale | ' | ' |
Loans receivable - net | ' | ' |
Federal Home Loan Bank stock | 3,266 | 3,266 |
Accrued interest receivable | ' | ' |
Financial liabilities: | ' | ' |
Customer deposits | 160,784 | 159,335 |
Federal Home Loan Bank advances | 24,458 | 26,493 |
REPO sweep accounts | ' | 3,183 |
Accrued interest payable | ' | ' |
Significant Unobservable Inputs (Level 3) | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | ' | ' |
Securities available for sale | ' | ' |
Securities held to maturity | ' | ' |
Loans held for sale | 178 | 84 |
Loans receivable - net | 135,172 | 140,877 |
Federal Home Loan Bank stock | ' | ' |
Accrued interest receivable | 89 | 970 |
Financial liabilities: | ' | ' |
Customer deposits | ' | ' |
Federal Home Loan Bank advances | ' | ' |
REPO sweep accounts | ' | ' |
Accrued interest payable | 89 | 100 |
Fair Value | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | 2,766 | 2,752 |
Securities available for sale | 50,358 | 50,764 |
Securities held to maturity | 2,400 | 2,570 |
Loans held for sale | 178 | 84 |
Loans receivable - net | 135,712 | 140,877 |
Federal Home Loan Bank stock | 3,266 | 3,266 |
Accrued interest receivable | 89 | 970 |
Financial liabilities: | ' | ' |
Customer deposits | 160,784 | 159,335 |
Federal Home Loan Bank advances | 24,458 | 26,493 |
REPO sweep accounts | ' | 3,183 |
Accrued interest payable | $89 | $100 |
ParentOnly_Financial_Statement2
Parent-Only Financial Statements (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
ASSETS | ' | ' | ' |
Cash at subsidiary bank | $6 | $20 | ' |
Deferred tax asset | 799 | 331 | ' |
Other assets | 485 | 985 | ' |
Total assets | 209,657 | 213,834 | ' |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' | ' |
Liabilities | 186,132 | 189,399 | ' |
Stockholders' equity | 23,525 | 24,435 | 24,568 |
Total liabilities and stockholders' equity | 209,657 | 213,834 | ' |
Parent Company | ' | ' | ' |
ASSETS | ' | ' | ' |
Cash at subsidiary bank | 510 | 817 | ' |
Investment in subsidiary | 22,701 | 23,304 | ' |
Deferred tax asset | 318 | 318 | ' |
Other assets | 1 | ' | ' |
Total assets | 23,530 | 24,439 | ' |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' | ' |
Liabilities | 5 | 4 | ' |
Stockholders' equity | 23,525 | 24,435 | ' |
Total liabilities and stockholders' equity | $23,530 | $24,439 | ' |
ParentOnly_Financial_Statement3
Parent-Only Financial Statements (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Income (loss) before income taxes and equity in undistributed net income of subsidiary bank | ($192) | $182 | ($3) | $68 | $67 | $410 | ($406) | ($285) | $55 | ($214) |
Income tax expense | ' | ' | ' | ' | 885 | 137 | -136 | -886 | ' | ' |
Net income (loss) | -192 | 182 | -3 | 68 | -818 | 273 | -270 | 601 | 55 | -214 |
Parent Company | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend income | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500 |
Operating expense | ' | ' | ' | ' | ' | ' | ' | ' | 249 | -205 |
Income (loss) before income taxes and equity in undistributed net income of subsidiary bank | ' | ' | ' | ' | ' | ' | ' | ' | -249 | 295 |
Income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) before equity in undistributed loss of subsidiary bank | ' | ' | ' | ' | ' | ' | ' | ' | -249 | 295 |
Equity in undistributed net income (loss) of subsidiary bank | ' | ' | ' | ' | ' | ' | ' | ' | 304 | -509 |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | $55 | ($214) |
ParentOnly_Financial_Statement4
Parent-Only Financial Statements (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flows from Operating Activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Income (loss) | ($192) | $182 | ($3) | $68 | ($818) | $273 | ($270) | $601 | $55 | ($214) |
Adjustments to reconcile net income (loss) to cash from operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options/awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 |
Net change in other assets | ' | ' | ' | ' | ' | ' | ' | ' | 73 | -37 |
Cash Flows from Financing Activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net cash provided by (used in) operating activities | ' | ' | ' | ' | ' | ' | ' | ' | 2,061 | 2,153 |
Net (Decrease) Increase in Cash and Cash Equivalents | ' | ' | ' | ' | ' | ' | ' | ' | 14 | 3 |
Parent Company | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash Flows from Operating Activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 55 | -214 |
Adjustments to reconcile net income (loss) to cash from operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options/awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 |
Equity in undistributed net (income) of subsidiary bank | ' | ' | ' | ' | ' | ' | ' | ' | -304 | 509 |
Net change in other liabilities | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 4 |
Net change in other assets | ' | ' | ' | ' | ' | ' | ' | ' | -1 | ' |
Cash Flows from Financing Activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends paid | ' | ' | ' | ' | ' | ' | ' | ' | -58 | ' |
Net cash provided by (used in) operating activities | ' | ' | ' | ' | ' | ' | ' | ' | -362 | 515 |
Net (Decrease) Increase in Cash and Cash Equivalents | ' | ' | ' | ' | ' | ' | ' | ' | -307 | 301 |
Cash and cash equivalents at beginning of period | ' | ' | ' | 817 | ' | ' | ' | 516 | 817 | 516 |
Cash and cash equivalents at end of period | $510 | ' | ' | ' | $817 | ' | ' | ' | $510 | $817 |
Quarterly_Results_of_Operation2
Quarterly Results of Operations (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Results Of Operations Details | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total interest income | $2,074 | $2,065 | $2,095 | $2,085 | $2,169 | $2,313 | $2,352 | $2,409 | $8,319 | $9,243 |
Total interest expense | 270 | 274 | 285 | 321 | 369 | 394 | 427 | 464 | 1,150 | 1,654 |
Net Interest Income - Before provision for loan losses | 1,804 | 1,791 | 1,810 | 1,764 | 1,800 | 1,919 | 1,925 | 1,945 | 7,169 | 7,589 |
Provision for Loan Losses (Note 3) | 265 | 32 | 196 | 144 | 179 | 234 | 578 | 376 | 637 | 1,367 |
Total other income | 414 | 459 | 465 | 440 | 637 | 802 | 390 | 447 | 1,765 | 2,276 |
Total operating expenses | 2,145 | 2,036 | 2,082 | 1,992 | 2,191 | 2,077 | 2,143 | 2,301 | 8,242 | 8,712 |
Income (Loss) - before income tax expense | -192 | 182 | -3 | 68 | 67 | 410 | -406 | -285 | 55 | -214 |
Income tax expense (Note 9) | ' | ' | ' | ' | 885 | 137 | -136 | -886 | ' | ' |
Net income (loss) | ($192) | $182 | ($3) | $68 | ($818) | $273 | ($270) | $601 | $55 | ($214) |
Net Income per share - Basic | ($0.07) | $0.06 | $0 | $0.02 | ($0.28) | $0.09 | ($0.09) | $0.21 | $0.02 | ($0.07) |
Net income per share - diluted | ($0.07) | $0.06 | $0 | $0.02 | ($0.28) | $0.09 | ($0.09) | $0.21 | $0.02 | ($0.07) |
Weighted Average Number of Shares | 2,884,000 | 2,884,000 | 2,884,000 | 2,884,000 | 2,884,000 | 2,884,000 | 2,884,000 | 2,884,000 | ' | ' |
Dividends per common share | $0.02 | ' | ' | ' | ' | ' | ' | ' | $0.02 | ' |
Subsequent_Events_Details_Narr
Subsequent Events (Details Narrative) (USD $) | Jan. 23, 2014 |
Subsequent Events Details Narrative | ' |
Shares converted in merger, share ratio | $1.55 |