Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 28, 2014 | Jun. 30, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'UNITED SECURITY BANCSHARES | ' | ' |
Entity Central Index Key | '0001137547 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Public Float | ' | ' | $43,148,493 |
Entity Common Stock, Shares Outstanding | ' | 14,799,888 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and due from banks | $20,193 | $27,481 |
Cash and due from FRB | 115,019 | 114,146 |
Cash and cash equivalents | 135,212 | 141,627 |
Interest-bearing deposits in other banks | 1,515 | 1,507 |
Investment securities available for sale (at fair value) | 43,616 | 31,844 |
Loans and leases | 395,317 | 400,057 |
Unearned fees | -304 | -24 |
Allowance for credit losses | -10,988 | -11,784 |
Net loans and leases | 384,025 | 388,249 |
Accrued interest receivable | 1,644 | 1,694 |
Premises and equipment - net | 12,122 | 12,262 |
Other real estate owned | 13,946 | 23,932 |
Intangible assets | 62 | 249 |
Goodwill | 4,488 | 4,488 |
Cash surrender value of life insurance | 17,203 | 16,681 |
Investment in limited partnerships | 4,534 | 4,312 |
Deferred income taxes | 11,630 | 9,724 |
Other assets | 5,932 | 12,308 |
Total assets | 635,929 | 648,877 |
Deposits | ' | ' |
Noninterest bearing | 214,317 | 217,014 |
Interest bearing | 328,172 | 346,273 |
Total deposits | 542,489 | 563,287 |
Accrued interest payable | 44 | 71 |
Accounts payable and other liabilities | 5,728 | 6,010 |
Junior subordinated debt (at fair value) | 11,125 | 10,068 |
Total liabilities | 559,386 | 579,436 |
Commitments and Contingencies | ' | ' |
Shareholders' Equity | ' | ' |
Common stock, no par value 20,000,000 shares authorized, 14,799,888 issued and outstanding at December 31, 2013, and 14,217,303 at December 31, 2012 | 45,778 | 43,173 |
Retained earnings | 30,884 | 26,179 |
Accumulated other comprehensive income (loss) | -119 | 89 |
Total shareholders' equity | 76,543 | 69,441 |
Total liabilities and shareholders' equity | $635,929 | $648,877 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Shareholders' Equity | ' | ' |
Common stock, par value (in dollars per share) | $0 | $0 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 14,799,888 | 14,217,303 |
Common stock, shares outstanding (in shares) | 14,799,888 | 14,217,303 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Interest Income | ' | ' |
Loans, including fees | $21,979 | $23,184 |
Investment securities - AFS b taxable | 703 | 1,720 |
Interest on deposits in Federal Reserve Bank | 312 | 224 |
Interest on deposits in other banks | 8 | 23 |
Total interest income | 23,002 | 25,151 |
Interest Expense | ' | ' |
Interest on deposits | 1,330 | 1,791 |
Interest on other borrowed funds | 281 | 270 |
Total interest expense | 1,611 | 2,061 |
Net Interest Income Before Provision for Credit Losses | 21,391 | 23,090 |
(Benefit) Provision for Credit Losses | -1,098 | 1,019 |
Net Interest Income | 22,489 | 22,071 |
Noninterest Income | ' | ' |
Customer service fees | 3,456 | 3,583 |
Increase in cash surrender value of bank owned life insurance | 556 | 564 |
Impairment loss on investment securities, other than-temporary loss | 0 | -284 |
Loss on fair value of financial liability | -776 | -774 |
Loss on sale of securities | 0 | -195 |
Gain on sale of other investment | 0 | 1,739 |
Other | 732 | 843 |
Total noninterest income | 3,968 | 5,476 |
Noninterest Expense | ' | ' |
Salaries and employee benefits | 9,214 | 9,082 |
Occupancy expense | 3,678 | 3,548 |
Data processing | 185 | 77 |
Professional fees | 1,275 | 1,707 |
Regulatory assessments | 1,150 | 1,409 |
Director fees | 232 | 256 |
Amortization of intangibles | 187 | 304 |
Correspondent bank service charges | 287 | 313 |
Loss in equity of limited partnership | 253 | 39 |
Net cost on operation of OREO | 271 | 934 |
Other | 2,351 | 2,276 |
Total noninterest expense | 19,083 | 19,945 |
Income Before Provision for Taxes on Income | 7,374 | 7,602 |
Provision for Taxes on Income | 105 | 1,533 |
Net Income | $7,269 | $6,069 |
Net Income per common share | ' | ' |
Basic (in dollars per share) | $0.49 | $0.41 |
Diluted (in dollars per share) | $0.49 | $0.41 |
Shares on which net income per common share were based | ' | ' |
Basic (in shares) | 14,798,135 | 14,789,001 |
Diluted (in shares) | 14,799,037 | 14,789,001 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' |
Net Income | $7,269 | $6,069 |
Unrealized holdings gains (losses) on securities | -617 | 1,420 |
Reclassification adjustment for net losses included in net income | 0 | 195 |
Unrealized gains (losses) on unrecognized post retirement costs | 275 | -338 |
Other comprehensive (loss) income, before tax | -342 | 1,277 |
Tax benefit (expense) related to securities | 247 | -615 |
Tax (expense) benefit related to unrecognized post retirement costs | -113 | 136 |
Total other comprehensive (loss) income | -208 | 798 |
Comprehensive income | $7,061 | $6,867 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Shareholders' Equity (USD $) | Total | Common Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] |
In Thousands, except Share data, unless otherwise specified | ||||
Balance at Dec. 31, 2011 | $62,173 | $41,435 | $21,447 | ($709) |
Balance (in shares) at Dec. 31, 2011 | ' | 13,531,832 | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' |
Other comprehensive income (loss) | 798 | ' | ' | 798 |
Common stock dividends | 0 | 1,337 | -1,337 | ' |
Common stock dividends (in shares) | ' | 550,710 | ' | ' |
Common stock issuance | 383 | 383 | ' | ' |
Common stock issuance (in shares) | ' | 134,761 | ' | ' |
Stock options exercised (in shares) | 0 | ' | ' | ' |
Stock-based compensation expense | 18 | 18 | ' | ' |
Net Income | 6,069 | ' | 6,069 | ' |
Balance at Dec. 31, 2012 | 69,441 | 43,173 | 26,179 | 89 |
Balance (in shares) at Dec. 31, 2012 | 14,217,303 | 14,217,303 | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' |
Other comprehensive income (loss) | -208 | ' | ' | -208 |
Common stock dividends | 0 | 2,564 | -2,564 | ' |
Common stock dividends (in shares) | ' | 577,383 | ' | ' |
Stock options exercised | 12 | 12 | ' | ' |
Stock options exercised (in shares) | ' | 5,202 | ' | ' |
Stock-based compensation expense | 29 | 29 | ' | ' |
Net Income | 7,269 | ' | 7,269 | ' |
Balance at Dec. 31, 2013 | $76,543 | $45,778 | $30,884 | ($119) |
Balance (in shares) at Dec. 31, 2013 | 14,799,888 | 14,799,888 | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements 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 | $7,269 | $6,069 |
Adjustments to reconcile net income to cash provided by operating activities: | ' | ' |
(Benefit) provision for credit losses | -1,098 | 1,019 |
Depreciation and amortization | 1,287 | 1,544 |
Amortization of investment securities | 52 | 33 |
Accretion of investment securities | -60 | -169 |
Loss on disposition of securities | 0 | 195 |
Decrease in accrued interest receivable | 50 | 252 |
Decrease in accrued interest payable | -27 | -40 |
Increase (decrease) in unearned fees | 280 | -545 |
Increase (decrease) in income taxes payable | 5,557 | 386 |
Stock-based compensation expense | 29 | 18 |
Provision (benefits) for deferred income taxes | -1,773 | 1,230 |
(Decrease) increase in accounts payable and accrued liabilities | 265 | 476 |
(Gain) loss on other investments | 0 | -1,807 |
Gain on sale of other real estate owned | -1,346 | -278 |
Impairment loss on other real estate owned | 214 | 463 |
Impairment loss on investment securities | 0 | 284 |
Loss on fair value option of financial liability | 776 | 774 |
Increase in surrender value of life insurance | -589 | -564 |
Loss in limited partnership interest | 253 | 39 |
Amortization of intangibles | 187 | 304 |
Net (decrease) increase in other assets | 577 | 28 |
Net cash provided by operating activities | 11,903 | 9,711 |
Cash Flows From Investing Activities: | ' | ' |
Net (increase) decrease in interest-bearing deposits with banks | -8 | 680 |
Redemption of correspondent bank stock | 433 | 693 |
Maturities and calls on available-for-sale securities | 3,600 | 10,070 |
Principal payments on available-for-sale securities | 4,452 | 0 |
Purchases of available-for-sale securities | -20,433 | -11,022 |
Proceeds from sales of available-for-sale securities | 0 | 8,837 |
Net decrease in loans | 6,933 | 3,847 |
Cash proceeds from sales of other real estate owned | 9,202 | 4,902 |
Cash proceeds from sale of other investment | 0 | 2,174 |
Cash proceeds from sales of premises and equipment | 0 | 36 |
Capital expenditures for premises and equipment | -1,147 | -853 |
Investment in limited partnership | -564 | -787 |
Net cash provided by (used in) investing activities | 2,468 | 18,577 |
Cash Flows From Financing Activities: | ' | ' |
Net increase (decrease) in demand deposit and savings accounts | -4,899 | 32,960 |
Net decrease in certificates of deposit | -15,899 | -44,100 |
Proceeds from exercise of stock options | 12 | 0 |
Cash proceeds from the issuance of common stock | 0 | 295 |
Net cash (used in) financing activities | -20,786 | -10,845 |
Net (decrease) increase in cash and cash equivalents | -6,415 | 17,443 |
Cash and cash equivalents at beginning of year | 141,627 | 124,184 |
Cash and cash equivalents at end of year | $135,212 | $141,627 |
Organization_and_Summary_of_Si
Organization and Summary of Significant Accounting and Reporting Policies | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Organization and Summary of Significant Accounting and Reporting Policies [Abstract] | ' | |||
Organization and Summary of Significant Accounting and Reporting Policies | ' | |||
Organization and Summary of Significant Accounting and Reporting Policies | ||||
Basis of Presentation – The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States and with prevailing practices within the banking industry. The consolidated financial statements include the accounts of United Security Bancshares, and its wholly owned subsidiary, United Security Bank and subsidiary (the “Bank”). United Security Bancshares Capital Trust II (the “Trust”) is deconsolidated pursuant to ASC 810. As a result, the Trust Preferred Securities are not presented on the Company’s consolidated financial statements as equity, but instead the Company’s Subordinated Debentures are presented as a separate liability category. (see Note 8 to the Company’s consolidated financial statements). Intercompany accounts and transactions have been eliminated in consolidation. In the following notes, references to the Bank are references to United Security Bank. References to the Company are references to United Security Bancshares, (including the Bank). United Security Bancshares operates as one business segment providing banking services to commercial establishments and individuals primarily in the San Joaquin Valley of California. | ||||
Nature of Operations – United Security Bancshares is a bank holding company, incorporated in the state of California for the purpose of acquiring all the capital stock of the Bank through a holding company reorganization (the “Reorganization”) of the Bank. The Reorganization, which was accounted for in a manner similar to a pooling of interests, was completed on June 12, 2001. Management believes the Reorganization has provided the Company greater operating and financial flexibility and has permitted expansion into a broader range of financial services and other business activities. | ||||
During July 2007 the Company formed United Security Bancshares Capital Trust II and issued $15.0 million in Trust Preferred Securities with terms similar to those originally issued under USB Capital Trust I. (See Note 8. “Junior Subordinated Debt/Trust Preferred Securities”). | ||||
USB Investment Trust Inc was incorporated effective December 31, 2001, as a special purpose real estate investment trust (“REIT”) under Maryland law. The REIT is a subsidiary of the Bank and was funded with $133.0 million in real estate-secured loans contributed by the Bank. USB Investment Trust was originally formed to give the Bank flexibility in raising capital, and reduce the expenses associated with holding the assets contributed to USB Investment Trust. | ||||
The Bank was founded in 1987 and currently operates eleven branches and one construction lending office in an area from eastern Madera County to western Fresno County, as well as Taft and Bakersfield in Kern County, and Campbell in Santa Clara County. The Bank also operates one financial services department located in Fresno, California. The Bank’s primary source of revenue is interest income through providing loans to customers, who are predominantly small and middle-market businesses and individuals. The Bank engages in a full compliment of lending activities, including real estate mortgage, commercial and industrial, real estate construction, agricultural and consumer loans, with particular emphasis on short and medium term obligations. | ||||
The Bank offers a wide range of deposit instruments. These include personal and business checking accounts and savings accounts, interest-bearing negotiable order of withdrawal ("NOW") accounts, money market accounts and time certificates of deposit. Most of the Bank's deposits are attracted from individuals and from small and medium-sized business-related sources. | ||||
The Bank also offers a wide range of specialized services designed to attract and service the needs of commercial customers and account holders. These services include cashiers checks, travelers checks, money orders, and foreign drafts. In addition, the Bank offers Internet banking services to its commercial and retail customers, and offers certain financial and wealth management services through its financial services department. The Bank does not operate a trust department, however it makes arrangements with its correspondent bank to offer trust services to its customers upon request. | ||||
Use of Estimates in the Preparation of Financial Statements - 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, relate to the determination of the allowance for loan losses, determination of goodwill, fair value of junior subordinated debt and certain collateralized mortgage obligations, and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. | ||||
Subsequent events—The Company has evaluated events and transactions for potential recognition or disclosure through the day the financial statements were issued. | ||||
Significant Accounting Policies - The Company follows accounting standards set by the Financial Accounting Standards Board, commonly referred to as the “FASB”. The FASB sets generally accepted accounting principles (GAAP) that the Company follows to ensure the consistent reporting of its consolidated financial condition, consolidated results of operations, and consolidated cash flows. References to GAAP issued by the FASB in these footnotes are to the FASB Accounting Standards Codification, sometimes referred to as the Codification or ASC. The following is a summary of significant policies: | ||||
a. | Cash and cash equivalents – Cash and cash equivalents include cash on hand, amounts due from banks, federal funds sold and repurchase agreements. At times throughout the year, balances can exceed FDIC insurance limits. Generally, federal funds sold and repurchase agreements are sold for one-day periods. The Bank did not have any repurchase agreements during 2013 or 2012, or at December 31, 2013 and 2012. All cash and cash equivalents have maturities when purchased of three months or less. | |||
b. | Securities - Debt and equity securities classified as available for sale are reported at fair value, with unrealized gains and losses excluded from net income and reported, net of tax, as a separate component of comprehensive income and shareholders’ equity. Debt securities classified as held to maturity are carried at amortized cost. Gains and losses on disposition are reported using the specific identification method for the adjusted basis of the securities sold. Premiums and discounts are recognized in interest income using the interest method over the period to maturity. | |||
The Company classifies its securities as available for sale or held to maturity, and periodically reviews its investment portfolio on an individual security basis. Securities that are to be held for indefinite periods of time (including, but not limited to, those that management intends to use as part of its asset/liability management strategy, those which may be sold in response to changes in interest rates, changes in prepayments or any such other factors) are classified as securities available for sale. Securities which the Company has the ability and intent to hold to maturity are classified as held to maturity. | ||||
Investments with fair values that are less than amortized cost are considered impaired. Impairment may result from either a decline in the financial condition of the issuing entity or, in the case of fixed interest rate investments, from rising interest rates. At each financial statement date, management assesses each investment to determine if impaired investments are temporarily impaired or if the impairment is other-than-temporary based upon the positive and negative evidence available. Evidence evaluated includes, but is not limited to, industry analyst reports, credit market conditions, and interest rate trends. If negative evidence outweighs positive evidence that the carrying amount is recoverable within a reasonable period of time, the impairment is deemed to be other-than-temporary and the debt security is written down by the amount related to credit losses in the period in which such determination is made, or written down to fair value if the debt security is more than likely to be sold. | ||||
c. | Loans - Interest income on loans is credited to income as earned and is calculated by using the simple interest method on the daily balance of the principal amounts outstanding. Loans are placed on non-accrual status when principal or interest is past due for 90 days and/or when management believes the collection of amounts due is doubtful. For loans placed on nonaccrual status, the accrued and unpaid interest receivable may be reversed at management's discretion based upon management's assessment of collectibility, and interest is thereafter credited to principal to the extent necessary to eliminate doubt as to the collectibility of the net carrying amount of the loan. | |||
Nonrefundable fees and related direct costs associated with the origination or purchase of loans are deferred and netted against outstanding loan balances. The net deferred fees and costs are generally amortized into interest income over the loan term using the interest method. Other credit-related fees, such as standby letter of credit fees, loan placement fees and annual credit card fees are recognized as noninterest income during the period the related service is performed. | ||||
d. | Allowance for Credit Losses and Reserve for Unfunded Loan Commitments - The allowance for credit losses is maintained to provide for losses that can reasonably be anticipated. The allowance is based on ongoing quarterly assessments of the probable losses inherent in the loan portfolio, and to a lesser extent, unfunded loan commitments. The reserve for unfunded loan commitments is a liability on the Company’s consolidated financial statements and is included in other liabilities. The liability is computed using a methodology similar to that used to determine the allowance for credit losses, modified to take into account the probability of a drawdown on the commitment. | |||
The allowance for credit losses is increased by provisions charged to operations during the current period and reduced by negative provisions and loan charge-offs, net of recoveries. Loans are charged against the allowance when management believes that the collection of the principal is unlikely. The allowance is an amount that management believes will be adequate to absorb losses inherent in existing loans, based on evaluations of the probability of collection. In evaluating the probability of collection, management is required to make estimates and assumptions that affect the reported amounts of loans, allowance for credit losses and the provision for credit losses charged to operations. Actual results could differ significantly from those estimates. These evaluations take into consideration such factors as the composition of the portfolio, overall portfolio quality, loan concentrations, specific problem loans, and current economic conditions that may affect the borrowers' ability to pay. The Company’s methodology for assessing the adequacy of the allowance for credit losses consists of several key elements, which include the formula allowance, specific allowances, and the unallocated allowance. | ||||
The formula allowance is calculated by applying loss factors to outstanding loans and certain unfunded loan commitments. Loss factors are based on the Company’s historical loss experience and may be adjusted for significant factors that, in management's judgment, affect the collectibility of the portfolio as of the evaluation date. The Company determines the loss factors for problem-graded loans (substandard, doubtful, and loss), special mention loans, and pass graded loans, based on a loss migration model. In performing the periodic migration analysis, management believes that historical loss factors used in the computation of the formula allowance need to be adjusted to reflect current changes in market conditions and trends in the Company’s loan portfolio. There are a number of other factors which are reviewed when determining adjustments in the historical loss factors. Those factors include 1) trends in delinquent and nonaccrual loans, 2) trends in loan volume and terms, 3) effects of changes in lending policies, 4) concentrations of credit, 5) competition, 6) national and local economic trends and conditions, 7) experience of lending staff, 8) loan review and Board of Directors oversight, 9) high balance loan concentrations, and 10) other business conditions. For purposes of this analysis, loans are grouped by internal risk classifications, which are “pass”, “special mention”, “substandard”, “doubtful”, and “loss”. Certain loans are homogeneous in nature and are therefore pooled by risk grade. These homogeneous loans include consumer installment and home equity loans. | ||||
Specific allowances are established based on management’s periodic evaluation of loss exposure inherent in impaired loans. For impaired loans, specific allowances are determined based on the collateralized value of the underlying properties, the net present value of the anticipated cash flows, or the market value of the underlying assets. | ||||
A loan is considered impaired when management determines that it is probable that the Company will be unable to collect all amounts due according to the original contractual terms of the loan agreement. Impairment is measured by the difference between the original recorded investment in the loan and the estimated present value of the total expected future cash flows, discounted at the loan’s effective rate, or the fair value of the collateral, less estimated selling costs, if the loan is collateral dependent. | ||||
The unallocated portion of the allowance is based upon management’s evaluation of various conditions that are not directly measured in the determination of the formula and specific allowances. The conditions may include, but are not limited to, general economic and business conditions affecting the key lending areas of the Company, credit quality trends, collateral values, loan volumes and concentrations, and other business conditions. | ||||
e. | Premises and Equipment - Premises and equipment are carried at cost less accumulated depreciation. Depreciation expense is computed principally on the straight-line method over the estimated useful lives of the assets. Estimated useful lives are as follows: | |||
Buildings | 31 years | Furniture and equipment | 3-7 Years | |
f. | Other Real Estate Owned - Real estate properties acquired through, or in lieu of, loan foreclosure are to be sold and are initially recorded at fair value of the property, less estimated costs to sell. The excess, if any, of the loan amount over the fair value is charged to the allowance for credit losses. Subsequent declines in the fair value of other real estate owned, along with related revenue and expenses from operations, are charged to noninterest expense. | |||
g. | Intangible Assets and Goodwill - Intangible assets are comprised of core deposit intangibles, other specific identifiable intangibles, and goodwill acquired in branch acquisitions where the consideration given exceeded the fair value of the net assets acquired. Intangible assets and goodwill are reviewed at least annually for impairment. Core deposit intangibles of $62,000 and $249,000 (net of accumulated amortization and impairment losses of $6,934,000 and $6,747,000) at December 31, 2013 and 2012, respectively, are amortized over the estimated useful lives of the existing deposit bases (average of 7 years) using a method which approximates the interest method. During 2013 and 2012, the Company recognized $0 impairment losses on the core deposit intangible related to the deposits purchased in the Legacy merger consummated during February 2007. | |||
The estimated aggregate amortization expense related to intangible assets for each of the five succeeding years is as follows (in 000’s): | ||||
Amortization | ||||
Year | expense | |||
2014 | 62 | |||
Total | $ | 62 | ||
Goodwill amounts resulting from the acquisitions of Taft National Bank during April 2004, and Legacy Bank during February 2007 are considered to have an indefinite life and are not amortized. At December 31, 2013, goodwill related to Taft National Bank totaled $1.6 million, and goodwill related to Legacy Bank totaled $2.9 million. Impairment testing of goodwill is performed at the reporting level during April of each year for Taft, and during March of each year for Legacy. During 2013 and 2012, the Company did not recognize impairment adjustments on the goodwill related to the Legacy or Taft Bank mergers (see Note 19 to the Company’s consolidated financial statements contained herein for details of the goodwill impairment.) | ||||
h. | Income Taxes - Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Company's assets and liabilities using the liability method, and are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. | |||
i. | Net Income per Share - Basic income (loss) per common share is computed based on the weighted average number of common shares outstanding. Diluted income (loss) per share includes the effect of stock options and other potentially dilutive securities using the treasury stock method to the extent they have a dilutive impact. Net income (loss) per share has been retroactively adjusted for all stock dividends declared. | |||
j. | Cash Flow Reporting - For purposes of reporting cash flows, cash and cash equivalents include cash on hand, noninterest-bearing amounts due from banks, federal funds sold and securities purchased under agreements to resell. Federal funds and securities purchased under agreements to resell are generally sold for one-day periods. | |||
k. | Transfers of Financial Assets - Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. | |||
l. | Advertising Costs - The Company expenses marketing costs as they are incurred. Advertising expense was $92,000 and $86,000 for the years ended December 31, 2013 and 2012, respectively. | |||
m. | Stock Based Compensation - The Company has a stock-based employee compensation plan, which is described more fully in Note 10. The Company accounts for all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on the grant-date fair value of the award. The fair value is amortized over the requisite service period (generally the vesting period). Included in salaries and employee benefits for the years ended December 31, 2013 and 2012 is $29,000, and $18,000, respectively, of share-based compensation. The related tax benefit, recorded in the provision for income taxes, was not significant. All share data contained within the financial statements has been retroactively restated for stock based transactions (i.e. stock splits and stock dividends.) | |||
n. | Federal Home Loan Bank stock and Federal Reserve Stock - As a member of the Federal Home Loan Bank (FHLB), the Company is required to maintain an investment in capital stock of the FHLB. In addition, as a member of the Federal Reserve Bank (FRB), the Company is required to maintain an investment in capital stock of the FRB. The investments in both the FHLB and the FRB are carried at cost, which approximates their fair value, in the accompanying consolidated balance sheets under other assets and are subject to certain redemption requirements by the FHLB and FRB. Stock redemptions are at the discretion of the FHLB and FRB. | |||
While technically these are considered equity securities, there is no market for the FHLB or FRB stock. Therefore, the shares are considered as restricted investment securities. Management periodically evaluates the stock for other-than-temporary impairment. Management’s determination of whether these investments are impaired is based on its assessment of the ultimate recoverability of cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of cost is influenced by criteria such as (1) the significance of any decline in net assets of the FHLB or FRB as compared to the capital stock amount of the FHLB or FRB and the length of time this situation has persisted, (2) commitments by the FHLB or FRB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB or FRB, (3) the impact of legislative and regulatory changes on institutions and, accordingly, the customer base of the FHLB or FRB, and (4) the liquidity position of the FHLB or FRB. | ||||
o. | Comprehensive Income - Comprehensive income is comprised of net income and other comprehensive income. Other comprehensive income includes items recorded directly to equity, such as unrealized gains and losses on securities available-for-sale, unrecognized costs of salary continuation defined benefit plans. Comprehensive income is presented in the consolidated statement of Comprehensive Income. | |||
p. | Segment Reporting - The Company's operations are solely in the financial services industry and include providing to its customers traditional banking and other financial services. The Company operates primarily in the San Joaquin Valley region of California. Management makes operating decisions and assesses performance based on an ongoing review of the Company's consolidated financial results. Therefore, the Company has a single operating segment for financial reporting purposes. | |||
q. | New Accounting Standards: | |||
In February 2013, The Financial Accounting Standards Board (FASB) today issued Accounting Standards Update No. 2013-2, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, to improve the transparency of reporting reclassifications out of accumulated other comprehensive income. ASU 2013-2 requires an organization to present (either on the face of the statement where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income–but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. The amendments are effective for reporting periods beginning after December 15, 2012. The Company does not expect that this ASU will have a material impact on its financial statements. | ||||
In January 2013, the FASB issued ASU No. 2013-01 Balance Sheet (Topic 210) Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, which clarifies that ordinary trade receivables and receivables are not in the scope of ASU 2011-11. It further clarifies that the scope of ASU No. 2011-11 applies to derivatives, repurchase agreements and reverse purchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with specific criteria contained in FASB Accounting Standards Codification® or subject to a master netting arrangement or similar agreement. Both ASU 2011-11 and ASU 2013-1 are effective for annual periods beginning on or after January 1, 2013, and interim periods within those annual periods. The Company adopted these ASUs during the first quarter of 2013 and they did not have a material impact on its financial statements. | ||||
In December 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2011-11 Balance Sheet (Topic 210) Disclosures about Offsetting Assets and Liabilities. The ASU enhances disclosures in order to improve the comparability of offsetting (netting) assets and liabilities reported in accordance with U.S. generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRS) by requiring entities to disclose both gross information and net information about both instruments and transactions eligible for offset in the statements of condition and instruments and transactions subject to an agreement similar to a master netting arrangement. This ASU did not have a significant impact on the Company’s financial statements. | ||||
r. | Reclassifications - Certain reclassifications have been made to the 2012 financial statements to conform to the classifications used in 2013. During 2012, the Company reviewed and revised the definition of the reporting segments within its loan portfolio to ensure proper uniformity of risk among such segments and has made specific reclassifications to the 2012 segments as reported for consistency. However, any amounts reported for years prior to 2012 were not subject to this reclassification. None of the reclassifications had an impact on equity or net income. |
Investment_Securities
Investment Securities | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||
Investment Securities | ' | |||||||||||||||||||||||
Investment Securities | ||||||||||||||||||||||||
Following is a comparison of the amortized cost and approximate fair value of investment securities at December 31, 2013 and December 31, 2012: | ||||||||||||||||||||||||
(In thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value (Carrying Amount) | ||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||
U.S. Government agencies | $ | 14,060 | $ | 441 | — | $ | 14,501 | |||||||||||||||||
U.S. Government sponsored entities & agencies collateralized by mortgage obligations | 25,029 | 434 | (78 | ) | 25,385 | |||||||||||||||||||
Mutual Funds | 4,000 | — | (270 | ) | 3,730 | |||||||||||||||||||
Total securities available for sale | $ | 43,089 | $ | 875 | $ | (348 | ) | $ | 43,616 | |||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||
U.S. Government agencies | $ | 6,113 | $ | 487 | $ | — | $ | 6,600 | ||||||||||||||||
U.S. Government sponsored entities & agencies collateralized by mortgage obligations | 20,586 | 697 | — | 21,283 | ||||||||||||||||||||
Mutual Funds | 4,000 | — | (39 | ) | 3,961 | |||||||||||||||||||
Total securities available for sale | $ | 30,699 | $ | 1,184 | $ | (39 | ) | $ | 31,844 | |||||||||||||||
There were no gross realized losses on available-for-sale securities and no gross gains during the year ended December 31, 2013. There were gross realized losses on sales of available-for-sale securities totaling $195,000, but no gross realized gains during the year ended December 31, 2012. | ||||||||||||||||||||||||
The amortized cost and fair value of securities available for sale at December 31, 2013, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because issuers have the right to call or prepay obligations with or without call or prepayment penalties. Contractual maturities on collateralized mortgage obligations cannot be anticipated due to allowed paydowns. | ||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Amortized Cost | Fair Value (Carrying Amount) | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Due in one year or less | $ | 4,000 | $ | 3,730 | ||||||||||||||||||||
Due after one year through five years | 69 | 74 | ||||||||||||||||||||||
Due after five years through ten years | — | — | ||||||||||||||||||||||
Due after ten years | 13,991 | 14,426 | ||||||||||||||||||||||
U.S. Government sponsored entities & agencies collateralized by mortgage obligations | 25,029 | 25,386 | ||||||||||||||||||||||
$ | 43,089 | $ | 43,616 | |||||||||||||||||||||
At December 31, 2013 and 2012, available-for-sale securities with an amortized cost of approximately $23,935,000 and $26,695,000 (fair value of $24,739,000 and $27,878,000) were pledged as collateral for FHLB borrowings and public funds balances, respectively. | ||||||||||||||||||||||||
The Company had no held-to-maturity or trading securities at December 31, 2013 and 2012. | ||||||||||||||||||||||||
Management periodically evaluates each available-for-sale investment security in an unrealized loss position to determine if the impairment is temporary or other-than-temporary. | ||||||||||||||||||||||||
The following summarizes temporarily impaired investment securities at December 31, 2013 and 2012: | ||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
(In thousands) | Fair Value (Carrying Amount) | Unrealized Losses | Fair Value (Carrying Amount) | Unrealized Losses | Fair Value (Carrying Amount) | Unrealized Losses | ||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||
U.S. Government agencies | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
U.S. Government sponsored entities & agencies collateralized by mortgage obligations | 11,069 | (78 | ) | — | — | 11,069 | (78 | ) | ||||||||||||||||
Mutual Funds | — | — | 3,730 | (270 | ) | 3,730 | (270 | ) | ||||||||||||||||
Total impaired securities | $ | 11,069 | $ | (78 | ) | $ | 3,730 | $ | (270 | ) | $ | 14,799 | $ | (348 | ) | |||||||||
31-Dec-12 | ||||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||
U.S. Government agencies | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
U.S. Government sponsored entities & agencies collateralized by mortgage obligations | — | — | — | — | — | — | ||||||||||||||||||
Mutual Funds | 3,961 | (39 | ) | — | — | 3,961 | (39 | ) | ||||||||||||||||
Total impaired securities | $ | 3,961 | $ | (39 | ) | $ | — | $ | — | $ | 3,961 | $ | (39 | ) | ||||||||||
Temporarily impaired securities at December 31, 2013, were comprised of five U.S. Government sponsored entities & agencies collateralized by mortgage obligations and one mutual fund. Temporarily impaired securities at December 31, 2012, were comprised of one mutual fund, with an undefined maturity date. | ||||||||||||||||||||||||
The Company evaluates investment securities for other-than-temporary impairment (“OTTI”) at least quarterly, and more frequently when economic or market conditions warrant such an evaluation. The investment securities portfolio is evaluated for OTTI by segregating the portfolio into two general segments and applying the appropriate OTTI model. Investment securities of high credit quality are generally evaluated for OTTI under ASC Topic 320-10, “Investments – Debt and Equity Instruments.” Certain purchased beneficial interests, including non-agency mortgage-backed securities, asset-backed securities, and collateralized debt obligations, are evaluated under ASC Topic 325-40, Beneficial Interest in Securitized Financial Assets. | ||||||||||||||||||||||||
In the first segment, the Company considers many factors in determining OTTI, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) 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. The assessment of whether an other-than-temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to the Company at the time of the evaluation. | ||||||||||||||||||||||||
The second segment of the portfolio uses the OTTI guidance that is specific to purchased beneficial interests including private label mortgage-backed securities. Under this model, the Company compares the present value of the remaining cash flows as estimated at the preceding evaluation date to the current expected remaining cash flows. An OTTI is deemed to have occurred if there has been an adverse change in the remaining expected future cash flows. | ||||||||||||||||||||||||
Other-than-temporary-impairment occurs when the Company intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss. If an entity intends to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss, the other-than-temporary-impairment 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. If an entity does not intend to sell the security and it is not more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis less any current-period loss, the other-than-temporary-impairment shall be separated into the amount representing the credit loss and the amount related to all other factors. The amount of the total other-than-temporary-impairment related to the credit loss is recognized in earnings, and is determined based on the difference between the present value of cash flows expected to be collected and the current amortized cost of the security. The amount of the total other-than-temporary-impairment related to other factors shall be recognized in other comprehensive (loss) income, net of applicable taxes. The previous amortized cost basis less the other-than-temporary-impairment recognized in earnings shall become the new amortized cost basis of the investment. |
Loans
Loans | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||||||||||||||||||
Loans | ' | |||||||||||||||||||||||||||||||||||
Loans | ||||||||||||||||||||||||||||||||||||
Loans are comprised of the following: | ||||||||||||||||||||||||||||||||||||
Iin thousands) | December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||||||||
Commercial and Business loans | $ | 68,460 | $ | 69,780 | ||||||||||||||||||||||||||||||||
Government program loans | 2,226 | 2,337 | ||||||||||||||||||||||||||||||||||
Total Commercial and Industrial | 70,686 | 72,117 | ||||||||||||||||||||||||||||||||||
Real estate – mortgage: | ||||||||||||||||||||||||||||||||||||
Commercial real estate | 143,919 | 133,599 | ||||||||||||||||||||||||||||||||||
Residential mortgages | 52,036 | 55,016 | ||||||||||||||||||||||||||||||||||
Home Improvement and Home Equity loans | 1,410 | 1,319 | ||||||||||||||||||||||||||||||||||
Total Real Estate Mortgage | 197,365 | 189,934 | ||||||||||||||||||||||||||||||||||
RE Construction and Development | 87,004 | 90,941 | ||||||||||||||||||||||||||||||||||
Agricultural Loans | 30,932 | 36,169 | ||||||||||||||||||||||||||||||||||
Installment | 9,330 | 10,884 | ||||||||||||||||||||||||||||||||||
Commercial lease financing | — | 12 | ||||||||||||||||||||||||||||||||||
Total Loans | $ | 395,317 | $ | 400,057 | ||||||||||||||||||||||||||||||||
The Company's loans are predominantly in the San Joaquin Valley, and the greater Oakhurst/East Madera County area, as well as the Campbell area of Santa Clara County, although the Company does participate in loans with other financial institutions, primarily in the state of California. | ||||||||||||||||||||||||||||||||||||
Commercial and industrial loans represent 17.9% of total loans at December 31, 2013, and are generally made to support the ongoing operations of small-to-medium sized commercial businesses. Commercial and industrial loans have a high degree of industry diversification and provide, working capital, financing for the purchase of manufacturing plants and equipment, or funding for growth and general expansion of businesses. A substantial portion of commercial and industrial loans are secured by accounts receivable, inventory, leases or other collateral including real estate. The remainder are unsecured; however, extensions of credit are predicated upon the financial capacity of the borrower. Repayment of commercial loans is generally from the cash flow of the borrower. | ||||||||||||||||||||||||||||||||||||
Real estate mortgage loans, representing 49.9% of total loans at December 31, 2013, are secured by trust deeds on primarily commercial property, but are also secured by trust deeds on single family residences. Repayment of real estate mortgage loans is generally from the cash flow of the borrower. | ||||||||||||||||||||||||||||||||||||
• | Commercial real estate mortgage loans comprise the largest segment of this loan category and are available on all types of income producing and commercial properties, including: office buildings, shopping centers; apartments and motels; owner occupied buildings; manufacturing facilities and more. Commercial real estate mortgage loans can also be used to refinance existing debt. Although real estate associated with the business is the primary collateral for commercial real estate mortgage loans, the underlying real estate is not the source of repayment. Commercial real estate loans are made under the premise that the loan will be repaid from the borrower's business operations, rental income associated with the real property, or personal assets. | |||||||||||||||||||||||||||||||||||
• | Residential mortgage loans are provided to individuals to finance or refinance single-family residences. Residential mortgages are not a primary business line offered by the Company, and are generally of a shorter term than conventional mortgages, with maturities ranging from three to fifteen years on average. | |||||||||||||||||||||||||||||||||||
• | Home Equity loans comprise a relatively small portion of total real estate mortgage loans, and are offered to borrowers for the purpose of home improvements, although the proceeds may be used for other purposes. Home equity loans are generally secured by junior trust deeds, but may be secured by 1st trust deeds. | |||||||||||||||||||||||||||||||||||
Real estate construction and development loans, representing 22.0% of total loans at December 31, 2013, consist of loans for residential and commercial construction projects, as well as land acquisition and development, or land held for future development. Loans in this category are secured by real estate including improved and unimproved land, as well as single-family residential, multi-family residential, and commercial properties in various stages of completion. All real estate loans have established equity requirements. Repayment on construction loans is generally from long-term mortgages with other lending institutions obtained at completion of the project. | ||||||||||||||||||||||||||||||||||||
Agricultural loans represent 7.8% of total loans at December 31, 2013, and are generally secured by land, equipment, inventory and receivables. Repayment is from the cash flow of the borrower. | ||||||||||||||||||||||||||||||||||||
In the normal course of business, the Company is party to financial instruments with off-balance sheet risk to meet the financing needs of its customers. At December 31, 2013 and 2012, these financial instruments include commitments to extend credit of $63,271,000 and $60,050,000, respectively, and standby letters of credit of $2,001,000 and $2,504,000, respectively. These instruments involve elements of credit risk in excess of the amount recognized on the balance sheet. The contract amounts of these instruments reflect the extent of the involvement the Company has in off-balance sheet financial instruments. | ||||||||||||||||||||||||||||||||||||
The Company’s exposure to credit loss in the event of nonperformance by the counterparty to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amounts of those instruments. The Company uses the same credit policies as it does for on-balance sheet instruments. | ||||||||||||||||||||||||||||||||||||
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. Substantially all of these commitments are at floating interest rates based on the Prime rate. Commitments generally have fixed expiration dates. The Company evaluates each customer's creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary, is based on management's credit evaluation. Collateral held varies but includes accounts receivable, inventory, leases, property, plant and equipment, residential real estate and income-producing properties. | ||||||||||||||||||||||||||||||||||||
Standby letters of credit are generally unsecured and are issued by the Company to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. | ||||||||||||||||||||||||||||||||||||
Loans to directors, officers, principal shareholders and their affiliates are summarized below: | ||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
Aggregate amount outstanding, beginning of year | 3,330 | 3,244 | ||||||||||||||||||||||||||||||||||
New loans or advances during year | 1,098 | 2,043 | ||||||||||||||||||||||||||||||||||
Repayments during year | (1,512 | ) | (1,957 | ) | ||||||||||||||||||||||||||||||||
Aggregate amount outstanding, end of year | $ | 2,916 | $ | 3,330 | ||||||||||||||||||||||||||||||||
Loan commitments | $ | 3,930 | $ | 2,916 | ||||||||||||||||||||||||||||||||
Past Due Loans | ||||||||||||||||||||||||||||||||||||
The Company monitors delinquency and potential problem loans on an ongoing basis through weekly reports to the Loan Committee and monthly reports to the Board of Directors. The following is a summary of delinquent loans at December 31, 2013 (in thousands): | ||||||||||||||||||||||||||||||||||||
31-Dec-13 | Loans | Loans | Loans | Total Past Due Loans | Current Loans | Total Loans | Accruing | |||||||||||||||||||||||||||||
30-60 Days Past Due | 61-89 Days Past Due | 90 or More | Loans 90 or | |||||||||||||||||||||||||||||||||
Days Past Due | More Days Past Due | |||||||||||||||||||||||||||||||||||
Commercial and Business Loans | $ | — | $ | 94 | $ | — | $ | 94 | $ | 68,366 | $ | 68,460 | $ | — | ||||||||||||||||||||||
Government Program Loans | — | — | — | — | 2,226 | 2,226 | — | |||||||||||||||||||||||||||||
Total Commercial and Industrial | — | 94 | — | 94 | 70,592 | 70,686 | — | |||||||||||||||||||||||||||||
Commercial Real Estate Loans | 1,991 | — | 6,866 | 8,857 | 135,062 | 143,919 | — | |||||||||||||||||||||||||||||
Residential Mortgages | — | 614 | 359 | 973 | 51,063 | 52,036 | — | |||||||||||||||||||||||||||||
Home Improvement and Home Equity Loans | 96 | — | — | 96 | 1,314 | 1,410 | — | |||||||||||||||||||||||||||||
Total Real Estate Mortgage | 2,087 | 614 | 7,225 | 9,926 | 187,439 | 197,365 | — | |||||||||||||||||||||||||||||
RE Construction and Development Loans | — | — | 220 | 220 | 86,784 | 87,004 | — | |||||||||||||||||||||||||||||
Agricultural Loans | — | — | — | — | 30,932 | 30,932 | — | |||||||||||||||||||||||||||||
Consumer Loans | — | — | — | — | 9,086 | 9,086 | — | |||||||||||||||||||||||||||||
Overdraft protection Lines | — | — | — | — | 87 | 87 | — | |||||||||||||||||||||||||||||
Overdrafts | — | — | — | — | 157 | 157 | — | |||||||||||||||||||||||||||||
Total Installment | — | — | — | — | 9,330 | 9,330 | — | |||||||||||||||||||||||||||||
Commercial Lease Financing | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Total Loans | $ | 2,087 | $ | 708 | $ | 7,445 | $ | 10,240 | $ | 385,077 | $ | 395,317 | $ | — | ||||||||||||||||||||||
The following is a summary of delinquent loans at December 31, 2012 (in thousands): | ||||||||||||||||||||||||||||||||||||
31-Dec-12 | Loans | Loans | Loans | Total Past Due Loans | Current Loans | Total Loans | Accruing | |||||||||||||||||||||||||||||
30-60 Days Past Due | 61-89 Days Past Due | 90 or More | Loans 90 or | |||||||||||||||||||||||||||||||||
Days Past Due | More Days Past Due | |||||||||||||||||||||||||||||||||||
Commercial and Business Loans | $ | 65 | $ | — | $ | 256 | $ | 321 | $ | 69,459 | $ | 69,780 | $ | — | ||||||||||||||||||||||
Government Program Loans | 88 | — | — | 88 | 2,249 | 2,337 | — | |||||||||||||||||||||||||||||
Total Commercial and Industrial | 153 | — | 256 | 409 | 71,708 | 72,117 | — | |||||||||||||||||||||||||||||
Commercial Real Estate Loans | 3,152 | 2,130 | 5,328 | 10,610 | 122,989 | 133,599 | — | |||||||||||||||||||||||||||||
Residential Mortgages | 333 | 322 | 437 | 1,092 | 53,924 | 55,016 | — | |||||||||||||||||||||||||||||
Home Improvement and Home Equity Loans | 119 | 140 | — | 259 | 1,060 | 1,319 | — | |||||||||||||||||||||||||||||
Total Real Estate Mortgage | 3,604 | 2,592 | 5,765 | 11,961 | 177,973 | 189,934 | — | |||||||||||||||||||||||||||||
RE Construction and Development Loans | — | — | — | — | 90,941 | 90,941 | — | |||||||||||||||||||||||||||||
Agricultural Loans | — | 136 | — | 136 | 36,033 | 36,169 | — | |||||||||||||||||||||||||||||
Consumer Loans | 305 | 34 | — | 339 | 10,300 | 10,639 | — | |||||||||||||||||||||||||||||
Overdraft protection Lines | — | — | — | — | 90 | 90 | — | |||||||||||||||||||||||||||||
Overdrafts | — | — | — | — | 155 | 155 | — | |||||||||||||||||||||||||||||
Total Installment | 305 | 34 | — | 339 | 10,545 | 10,884 | — | |||||||||||||||||||||||||||||
Commercial Lease Financing | — | — | — | — | 12 | 12 | — | |||||||||||||||||||||||||||||
Total Loans | $ | 4,062 | $ | 2,762 | $ | 6,021 | $ | 12,845 | $ | 387,212 | $ | 400,057 | $ | — | ||||||||||||||||||||||
Nonaccrual Loans | ||||||||||||||||||||||||||||||||||||
Commercial, construction and commercial real estate loans are placed on non-accrual status under the following circumstances: | ||||||||||||||||||||||||||||||||||||
- | When there is doubt regarding the full repayment of interest and principal. | |||||||||||||||||||||||||||||||||||
- | When principal and/or interest on the loan has been in default for a period of 90-days or more, unless the asset is both well secured and in the process of collection that will result in repayment in the near future. | |||||||||||||||||||||||||||||||||||
- | When the loan is identified as having loss elements and/or is risk rated "8" Doubtful. | |||||||||||||||||||||||||||||||||||
Other circumstances which jeopardize the ultimate collectability of the loan including certain troubled debt restructurings, identified loan impairment, and certain loans to facilitate the sale of OREO. | ||||||||||||||||||||||||||||||||||||
Loans meeting any of the preceding criteria are placed on non-accrual status and the accrual of interest for financial statement purposes is discontinued. Previously accrued but unpaid interest is reversed and charged against interest income. | ||||||||||||||||||||||||||||||||||||
All other loans where principal or interest is due and unpaid for 90 days or more are placed on non-accrual and the accrual of interest for financial statement purposes is discontinued. Previously accrued but unpaid interest is reversed and charged against interest income. | ||||||||||||||||||||||||||||||||||||
When a loan is placed on non-accrual status and subsequent payments of interest (and principal) are received, the interest received may be accounted for in two separate ways. | ||||||||||||||||||||||||||||||||||||
Cost recovery method: If the loan is in doubt as to full collection, the interest received in subsequent payments is diverted from interest income to a valuation reserve and treated as a reduction of principal for financial reporting purposes. | ||||||||||||||||||||||||||||||||||||
Cash basis: This method is only used if the recorded investment or total contractual amount is expected to be fully collectible, under which circumstances the subsequent payments of interest is credited to interest income as received. | ||||||||||||||||||||||||||||||||||||
Loans on non-accrual status are usually not returned to accruing status unless and until all delinquent principal and/or interest has been brought current, there is no identified element of loss, and current and continued satisfactory performance is expected (loss of the contractual amount not the carrying amount of the loan). Repayment ability is generally demonstrated through the timely receipt of at least six monthly payments on a loan with monthly amortization. | ||||||||||||||||||||||||||||||||||||
Nonaccrual loans totaled $12,341,000 and $13,425,000 at December 31, 2013 and 2012, respectively. There were no remaining undisbursed commitments to extend credit on nonaccrual loans at December 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||
The following is a summary of nonaccrual loan balances at December 31, 2013 and 2012 (in thousands). | ||||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||||||||||||||
Commercial and Business Loans | $ | — | $ | 1,093 | ||||||||||||||||||||||||||||||||
Government Program Loans | — | 88 | ||||||||||||||||||||||||||||||||||
Total Commercial and Industrial | — | 1,181 | ||||||||||||||||||||||||||||||||||
Commercial Real Estate Loans | 10,188 | 8,415 | ||||||||||||||||||||||||||||||||||
Residential Mortgages | 1,685 | 1,834 | ||||||||||||||||||||||||||||||||||
Home Improvement and Home Equity Loans | — | 10 | ||||||||||||||||||||||||||||||||||
Total Real Estate Mortgage | 11,873 | 10,259 | ||||||||||||||||||||||||||||||||||
RE Construction and Development Loans | 468 | 1,730 | ||||||||||||||||||||||||||||||||||
Agricultural Loans | — | 136 | ||||||||||||||||||||||||||||||||||
Consumer Loans | — | 119 | ||||||||||||||||||||||||||||||||||
Total Installment | — | 119 | ||||||||||||||||||||||||||||||||||
Commercial Lease Financing | — | — | ||||||||||||||||||||||||||||||||||
Total Loans | $ | 12,341 | $ | 13,425 | ||||||||||||||||||||||||||||||||
Impaired Loans | ||||||||||||||||||||||||||||||||||||
A loan is considered impaired when based on current information and events, it is probable that the Company will be unable to collect all amounts due, including principal and interest, according to the contractual terms of the loan agreement. | ||||||||||||||||||||||||||||||||||||
The Company applies its normal loan review procedures in making judgments regarding probable losses and loan impairment. The Company evaluates for impairment those loans on non-accrual status, graded doubtful, graded substandard or those that are troubled debt restructures. The primary basis for inclusion in impaired status under generally accepted accounting pronouncements is that it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. | ||||||||||||||||||||||||||||||||||||
A loan is not considered impaired if there is merely an insignificant delay or shortfall in the amounts of payments and the Company expects to collect all amounts due, including interest accrued, at the contractual interest rate for the period of the delay. | ||||||||||||||||||||||||||||||||||||
Review for impairment does not include large groups of smaller balance homogeneous loans that are collectively evaluated to estimate the allowance for loan losses. The Company’s present allowance for loan losses methodology, including migration analysis, captures required reserves for these loans in the formula allowance. | ||||||||||||||||||||||||||||||||||||
For loans determined to be impaired, the Company evaluates impairment based upon either the fair value of underlying collateral, discounted cash flows of expected payments, or observable market price. | ||||||||||||||||||||||||||||||||||||
- | For loans secured by collateral including real estate and equipment, the fair value of the collateral less selling costs will determine the carrying value of the loan. The difference between the recorded investment in the loan and the fair value, less selling costs, determines the amount of impairment. The Company uses the measurement method based on fair value of collateral when the loan is collateral dependent and foreclosure is probable. | |||||||||||||||||||||||||||||||||||
- | The discounted cash flow method of measuring the impairment of a loan is used for unsecured loans or for loans secured by collateral where the fair value cannot be easily determined. Under this method, the Company assesses both the amount and timing of cash flows expected from impaired loans. The estimated cash flows are discounted using the loan's effective interest rate. T he difference between the amount of the loan on the Bank's books and the discounted cash flow amounts determines the amount of impairment to be provided. This method is used for most of the Company’s troubled debt restructurings or other impaired loans where some payment stream is being collected. | |||||||||||||||||||||||||||||||||||
- | The observable market price method of measuring the impairment of a loan is only used by the Company when the sale of loans or a loan is in process. | |||||||||||||||||||||||||||||||||||
The method for recognizing interest income on impaired loans is dependent on whether the loan is on nonaccrual status or is a troubled debt restructuring. For income recognition, the existing nonaccrual and troubled debt restructuring policies are applied to impaired loans. Generally, except for certain troubled debt restructurings which are performing under the restructure agreement, the Company does not recognize interest income received on impaired loans, but reduces the carrying amount of the loan for financial reporting purposes. | ||||||||||||||||||||||||||||||||||||
Loans other than certain homogeneous loan portfolios are reviewed on a quarterly basis for impairment. Impaired loans are written down to estimated realizable values by the establishment of specific reserves or charge-offs when required. | ||||||||||||||||||||||||||||||||||||
The following is a summary of impaired loans at December 31, 2013 (in thousands). | ||||||||||||||||||||||||||||||||||||
31-Dec-13 | Unpaid | Recorded | Recorded | Total | Related Allowance | Average | Interest Recognized | |||||||||||||||||||||||||||||
Contractual | Investment | Investment | Recorded Investment | Recorded Investment | ||||||||||||||||||||||||||||||||
Principal Balance | With No Allowance | With Allowance | ||||||||||||||||||||||||||||||||||
Commercial and Business Loans | $ | 675 | $ | 275 | $ | 402 | $ | 677 | $ | 9 | $ | 831 | $ | 52 | ||||||||||||||||||||||
Government Program Loans | — | — | — | — | — | 35 | — | |||||||||||||||||||||||||||||
Total Commercial and Industrial | 675 | 275 | 402 | 677 | 9 | 866 | 52 | |||||||||||||||||||||||||||||
Commercial Real Estate Loans | 10,188 | 8,721 | 1,468 | 10,189 | 415 | 10,671 | 232 | |||||||||||||||||||||||||||||
Residential Mortgages | 5,375 | 1,794 | 3,590 | 5,384 | 338 | 6,139 | 211 | |||||||||||||||||||||||||||||
Home Improvement and Home Equity Loans | — | — | — | — | — | 13 | — | |||||||||||||||||||||||||||||
Total Real Estate Mortgage | 15,563 | 10,515 | 5,058 | 15,573 | 753 | 16,823 | 443 | |||||||||||||||||||||||||||||
RE Construction and Development Loans | 1,772 | 1,789 | — | 1,789 | — | 2,266 | 60 | |||||||||||||||||||||||||||||
Agricultural Loans | 44 | 45 | — | 45 | — | 84 | 10 | |||||||||||||||||||||||||||||
Consumer Loans | 48 | 48 | — | 48 | — | 72 | 4 | |||||||||||||||||||||||||||||
Total Installment | 48 | 48 | — | 48 | — | 72 | 4 | |||||||||||||||||||||||||||||
Total Impaired Loans | $ | 18,102 | $ | 12,672 | $ | 5,460 | $ | 18,132 | $ | 762 | $ | 20,111 | $ | 569 | ||||||||||||||||||||||
The following is a summary of impaired loans at December 31, 2012 (in thousands). | ||||||||||||||||||||||||||||||||||||
31-Dec-12 | Unpaid | Recorded | Recorded | Total | Related Allowance | Average | Interest Recognized | |||||||||||||||||||||||||||||
Contractual | Investment | Investment | Recorded Investment | Recorded Investment | ||||||||||||||||||||||||||||||||
Principal Balance | With No Allowance | With Allowance | ||||||||||||||||||||||||||||||||||
Commercial and Business Loans | $ | 1,488 | $ | 767 | $ | 576 | $ | 1,343 | $ | 37 | $ | 5,468 | $ | 26 | ||||||||||||||||||||||
Government Program Loans | 109 | 88 | — | 88 | — | 147 | — | |||||||||||||||||||||||||||||
Total Commercial and Industrial | 1,597 | 855 | 576 | 1,431 | 37 | 5,615 | 26 | |||||||||||||||||||||||||||||
Commercial Real Estate Loans | 11,393 | 6,818 | 4,237 | 11,055 | 436 | 8,498 | 135 | |||||||||||||||||||||||||||||
Residential Mortgages | 7,461 | 3,726 | 3,666 | 7,392 | 185 | 4,416 | 251 | |||||||||||||||||||||||||||||
Home Improvement and Home Equity Loans | 10 | 10 | — | 10 | — | 21 | — | |||||||||||||||||||||||||||||
Total Real Estate Mortgage | 18,864 | 10,554 | 7,903 | 18,457 | 621 | 12,935 | 386 | |||||||||||||||||||||||||||||
RE Construction and Development Loans | 1,730 | 1,730 | — | 1,730 | — | 7,298 | — | |||||||||||||||||||||||||||||
Agricultural Loans | 504 | 192 | — | 192 | — | 991 | 50 | |||||||||||||||||||||||||||||
Consumer Loans | 139 | 121 | — | 121 | — | 200 | 6 | |||||||||||||||||||||||||||||
Total Installment | 139 | 121 | — | 121 | — | 200 | 6 | |||||||||||||||||||||||||||||
Total Impaired Loans | $ | 22,834 | $ | 13,452 | $ | 8,479 | $ | 21,931 | $ | 658 | $ | 27,039 | $ | 468 | ||||||||||||||||||||||
In most cases, the Company uses the cash basis method of income recognition for impaired loans. In the case of certain troubled debt restructuring for which the loan is performing under the current contractual terms for a reasonable period of time, income is recognized under the accrual method. | ||||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | ||||||||||||||||||||||||||||||||||||
Under the circumstances, when the Company grants a concession to a borrower as part of a loan restructuring, the restructuring is accounted for as a troubled debt restructuring (TDR). TDRs are reported as a component of impaired loans. | ||||||||||||||||||||||||||||||||||||
A TDR is a type of restructuring in which the Company, for economic or legal reasons related to the borrower's financial difficulties, grants a concession (either imposed by court order, law, or agreement between the borrower and the Bank) to the borrower that it would not otherwise consider. Although the restructuring may take different forms, the Company's objective is to maximize recovery of its investment by granting relief to the borrower. | ||||||||||||||||||||||||||||||||||||
A TDR may include, but is not limited to, one or more of the following: | ||||||||||||||||||||||||||||||||||||
- A transfer from the borrower to the Company of receivables from third parties, real estate, other assets, or an equity interest in the borrower is granted to fully or partially satisfy the loan. | ||||||||||||||||||||||||||||||||||||
- A modification of terms of a debt such as one or a combination of: | ||||||||||||||||||||||||||||||||||||
◦ | The reduction (absolute or contingent) of the stated interest rate. | |||||||||||||||||||||||||||||||||||
◦ | The extension of the maturity date or dates at a stated interest rate lower than the current market rate for new debt with similar risk. | |||||||||||||||||||||||||||||||||||
◦ | The reduction (absolute or contingent) of the face amount or maturity amount of debt as stated in the instrument or agreement. | |||||||||||||||||||||||||||||||||||
◦ | The reduction (absolute or contingent) of accrued interest. | |||||||||||||||||||||||||||||||||||
For a restructured loan to return to accrual status there needs to be, among other factors, at least 6 months successful payment history. In addition, the Company performs a financial analysis of the credit to determine whether the borrower has the ability to continue to meet payments over the remaining life of the loan. This includes, but is not limited to, a review of financial statements and cash flow analysis of the borrower. Only after determination that the borrower has the ability to perform under the terms of the loans, will the restructured credit be considered for accrual status. Although the Company does not have a policy which specifically addresses when a loan may be removed from TDR classification, as a matter of practice, loans classified as TDRs generally remain classified as such until the loan either reaches maturity or its outstanding balance is paid off. | ||||||||||||||||||||||||||||||||||||
The following tables illustrate TDR activity for the periods indicated (dollars in thousands): | ||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||||||||||||
Number of | Pre- | Post- | Number of Contracts in Default | Recorded Investment on Defaulted TDRs | ||||||||||||||||||||||||||||||||
Contracts | Modification | Modification | ||||||||||||||||||||||||||||||||||
Outstanding | Outstanding | |||||||||||||||||||||||||||||||||||
Recorded | Recorded | |||||||||||||||||||||||||||||||||||
Investment | Investment | |||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | ||||||||||||||||||||||||||||||||||||
Commercial and Business Loans | — | $ | — | $ | — | — | $ | — | ||||||||||||||||||||||||||||
Government Program Loans | — | — | — | — | — | |||||||||||||||||||||||||||||||
Commercial Real Estate Term Loans | — | — | — | 1 | 106 | |||||||||||||||||||||||||||||||
Single Family Residential Loans | — | — | — | — | — | |||||||||||||||||||||||||||||||
Home Improvement and Home Equity Loans | — | — | — | — | — | |||||||||||||||||||||||||||||||
RE Construction and Development Loans | 41 | 1,034 | 1,304 | — | — | |||||||||||||||||||||||||||||||
Agricultural Loans | — | — | — | — | — | |||||||||||||||||||||||||||||||
Consumer Loans | 1 | 48 | 48 | — | — | |||||||||||||||||||||||||||||||
Overdraft protection Lines | — | — | — | — | — | |||||||||||||||||||||||||||||||
Commercial Lease Financing | — | — | — | — | — | |||||||||||||||||||||||||||||||
Total Loans | 42 | $ | 1,082 | $ | 1,352 | 1 | $ | 106 | ||||||||||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||||||||||||
Number of | Pre- | Post- | Number of Contracts in Default | Recorded Investment on Defaulted TDRs | ||||||||||||||||||||||||||||||||
Contracts | Modification | Modification | ||||||||||||||||||||||||||||||||||
Outstanding | Outstanding | |||||||||||||||||||||||||||||||||||
Recorded | Recorded | |||||||||||||||||||||||||||||||||||
Investment | Investment | |||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | ||||||||||||||||||||||||||||||||||||
Commercial and Business Loans | 3 | $ | 320 | $ | 303 | — | $ | — | ||||||||||||||||||||||||||||
Government Program Loans | 1 | 103 | 88 | — | — | |||||||||||||||||||||||||||||||
Commercial Real Estate Term Loans | 4 | 2,535 | 2,506 | — | — | |||||||||||||||||||||||||||||||
Single Family Residential Loans | 2 | 324 | 323 | — | — | |||||||||||||||||||||||||||||||
Home Improvement and Home Equity Loans | 1 | — | — | — | — | |||||||||||||||||||||||||||||||
RE Construction and Development Loans | 14 | 1,130 | 1,130 | — | — | |||||||||||||||||||||||||||||||
Agricultural Loans | 2 | 192 | 191 | — | — | |||||||||||||||||||||||||||||||
Consumer Loans | 1 | 20 | 19 | — | — | |||||||||||||||||||||||||||||||
Overdraft protection Lines | — | — | — | — | — | |||||||||||||||||||||||||||||||
Commercial Lease Financing | — | — | — | — | — | |||||||||||||||||||||||||||||||
Total Loans | 28 | $ | 4,624 | $ | 4,560 | — | $ | — | ||||||||||||||||||||||||||||
The following tables summarize TDR activity by loan category for the years ended December 31, 2013 and 2012 (in thousands). | ||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2013 | Commercial and Industrial | Commercial Real Estate | Residential Mortgages | Home Equity | RE Construction Development | Agricultural | Installment | Lease Financing | Total | |||||||||||||||||||||||||||
& Other | ||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 990 | $ | 5,395 | $ | 7,289 | $ | 10 | $ | 2,860 | $ | 191 | $ | 38 | $ | — | $ | 16,773 | ||||||||||||||||||
Defaults | — | (106 | ) | — | — | — | — | — | — | (106 | ) | |||||||||||||||||||||||||
Additions | — | — | — | 44 | 4,399 | — | 48 | — | 4,491 | |||||||||||||||||||||||||||
Principal reductions | (315 | ) | (3,821 | ) | (2,016 | ) | (54 | ) | (5,708 | ) | (147 | ) | (38 | ) | — | (12,099 | ) | |||||||||||||||||||
Ending balance | $ | 675 | $ | 1,468 | $ | 5,273 | $ | — | $ | 1,551 | $ | 44 | $ | 48 | $ | — | $ | 9,059 | ||||||||||||||||||
Allowance for loan loss | $ | 9 | $ | 415 | $ | 338 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 762 | ||||||||||||||||||
Year Ended December 31, 2012 | Commercial and Industrial | Commercial Real Estate | Residential Mortgages | Home Equity | RE Construction Development | Agricultural | Installment | Lease Financing | Total | |||||||||||||||||||||||||||
& Other | ||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 1,507 | $ | 5,174 | $ | 7,689 | $ | 36 | $ | 4,550 | $ | 60 | $ | 34 | $ | — | $ | 19,050 | ||||||||||||||||||
Defaults | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Additions | 391 | 2,506 | 323 | — | 1,130 | 191 | 19 | — | 4,560 | |||||||||||||||||||||||||||
Principal reductions | (908 | ) | (2,285 | ) | (723 | ) | (26 | ) | (2,820 | ) | (60 | ) | (15 | ) | — | (6,837 | ) | |||||||||||||||||||
Ending balance | $ | 990 | $ | 5,395 | $ | 7,289 | $ | 10 | $ | 2,860 | $ | 191 | $ | 38 | $ | — | $ | 16,773 | ||||||||||||||||||
Allowance for loan loss | $ | 152 | $ | 325 | $ | 128 | $ | — | $ | 6 | $ | — | $ | — | $ | — | $ | 611 | ||||||||||||||||||
The Company makes various types of concessions when structuring TDR’s including rate reductions, payment extensions, and forbearance. At December 31, 2013, the Company had 35 restructured loans totaling $9,059,000, as compared to 58 restructured loans totaling $16,773,000 at December 31, 2012. | ||||||||||||||||||||||||||||||||||||
Credit Quality Indicators | ||||||||||||||||||||||||||||||||||||
As part of its credit monitoring program, the Company utilizes a risk rating system which quantifies the risk the Company estimates it has assumed during the life of a loan. The system rates the strength of the borrower and the facility or transaction, and is designed to provide a program for risk management and early detection of problems. | ||||||||||||||||||||||||||||||||||||
For each new credit approval, credit extension, renewal, or modification of existing credit facilities, the Company assigns risk ratings utilizing the rating scale identified in this policy. In addition, on an on-going basis, loans and credit facilities are reviewed for internal and external influences impacting the credit facility that would warrant a change in the risk rating. Each loan credit facility is to be given a risk rating that takes into account factors that materially affect credit quality. | ||||||||||||||||||||||||||||||||||||
When assigning risk ratings, the Company evaluates two risk rating approaches, a facility rating and a borrower rating as follows. | ||||||||||||||||||||||||||||||||||||
Facility Rating: | ||||||||||||||||||||||||||||||||||||
The facility rating is determined by the analysis of positive and negative factors that may indicate that the quality of a particular loan or credit arrangement requires that it be rated differently from the risk rating assigned to the borrower. The Company assesses the risk impact of these factors: | ||||||||||||||||||||||||||||||||||||
Collateral - The rating may be affected by the type and quality of the collateral, the degree of coverage, the economic life of the collateral, liquidation value and the Company's ability to dispose of the collateral. | ||||||||||||||||||||||||||||||||||||
Guarantees - The value of third party support arrangements varies widely. Unconditional guaranties from persons with demonstrable ability to perform are more substantial than that of closely related persons to the borrower who offer only modest support. | ||||||||||||||||||||||||||||||||||||
Unusual Terms - Credit may be extended on terms that subject the Company to a higher level of risk than indicated in the rating of the borrower. | ||||||||||||||||||||||||||||||||||||
Borrower Rating: | ||||||||||||||||||||||||||||||||||||
The borrower rating is a measure of loss possibility based on the historical, current and anticipated financial characteristics of the borrower in the current risk environment. To determine the rating, the Company considers at least the following factors: | ||||||||||||||||||||||||||||||||||||
- Quality of management | ||||||||||||||||||||||||||||||||||||
- Liquidity | ||||||||||||||||||||||||||||||||||||
- Leverage/capitalization | ||||||||||||||||||||||||||||||||||||
- Profit margins/earnings trend | ||||||||||||||||||||||||||||||||||||
- Adequacy of financial records | ||||||||||||||||||||||||||||||||||||
- Alternative funding sources | ||||||||||||||||||||||||||||||||||||
- Geographic risk | ||||||||||||||||||||||||||||||||||||
- Industry risk | ||||||||||||||||||||||||||||||||||||
- Cash flow risk | ||||||||||||||||||||||||||||||||||||
- Accounting practices | ||||||||||||||||||||||||||||||||||||
- Asset protection | ||||||||||||||||||||||||||||||||||||
- Extraordinary risks | ||||||||||||||||||||||||||||||||||||
The Company assigns risk ratings to loans other than consumer loans and other homogeneous loan pools based on the following scale. The risk ratings are used when determining borrower ratings as well as facility ratings. When the borrower rating and the facility ratings differ, the lowest rating applied is: | ||||||||||||||||||||||||||||||||||||
- | Grades 1 and 2 – These grades include loans which are given to high quality borrowers with high credit quality and sound financial strength. Key financial ratios are generally above industry averages and the borrower’s strong earnings history or net worth. These may be secured by deposit accounts or high-grade investment securities. | |||||||||||||||||||||||||||||||||||
- | Grade 3 – This grade includes loans to borrowers with solid credit quality with minimal risk. The borrower’s balance sheet and financial ratios are generally in line with industry averages, and the borrower has historically demonstrated the ability to manage economic adversity. Real estate and asset-based loans assigned this risk rating must have characteristics, which place them well above the minimum underwriting requirements for those departments. Asset-based borrowers assigned this rating must exhibit extremely favorable leverage and cash flow characteristics, and consistently demonstrate a high level of unused borrowing capacity. | |||||||||||||||||||||||||||||||||||
- | Grades 4 and 5 – These include “pass” grade loans to borrowers of acceptable credit quality and risk. The borrower’s balance sheet and financial ratios may be below industry averages, but above the lowest industry quartile. Leverage is above and liquidity is below industry averages. Inadequacies evident in financial performance and/or management sufficiency are offset by readily available features of support, such as adequate collateral, or good guarantors having the liquid assets and/or cash flow capacity to repay the debt. The borrower may have recognized a loss over three or four years, however recent earnings trends, while perhaps somewhat cyclical, are improving and cash flows are adequate to cover debt service and fixed obligations. Real estate and asset-borrowers fully comply with all underwriting standards and are performing according to projections would be assigned this rating. These also include grade 5 loans which are “leveraged” or on management’s “watch list.” While still considered pass loans (loans given a grade 5), the borrower’s financial condition, cash flow or operations evidence more than average risk and short term weaknesses, these loans warrant a higher than average level of monitoring, supervision and attention from the Company, but do not reflect credit weakness trends that weaken or inadequately protect the Company’s credit position. Loans with a grade rating of 5 are not normally acceptable as new credits unless they are adequately secured or carry substantial endorser/guarantors. | |||||||||||||||||||||||||||||||||||
- | Grade 6 – This grade includes “special mention” loans which are loans that are currently protected but are potentially weak. This generally is an interim grade classification and should usually be upgraded to an Acceptable rating or downgraded to Substandard within a reasonable time period. Weaknesses in special mention loans may, if not checked or corrected, weaken the asset or inadequately protect the Company’s credit position at some future date. Special mention loans are often loans with weaknesses inherent from the loan origination, loan servicing, and perhaps some technical deficiencies. The main theme in special mention credits is the distinct probability that the classification will deteriorate to a more adverse class if the noted deficiencies are not addressed by the loan officer or loan management. | |||||||||||||||||||||||||||||||||||
- | Grade 7 – This grade includes “substandard” loans which are inadequately supported by the current sound net worth and paying capacity of the borrower or of the collateral pledged, if any. Substandard loans have a well-defined weakness or weaknesses that may impair the regular liquidation of the debt. Substandard loans exhibit a distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Substandard loans also include impaired loans. | |||||||||||||||||||||||||||||||||||
- | Grade 8 - This grade includes “doubtful” loans which exhibit the same characteristics as the Substandard loans with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors, which may work to the advantage and strengthening of the loan, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors include a proposed merger, acquisition, or liquidation procedures, capital injection, perfecting liens on additional collateral and refinancing plans. | |||||||||||||||||||||||||||||||||||
- | Grade 9 - This grade includes loans classified “loss” which are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off the asset even though partial recovery may be achieved in the future. | |||||||||||||||||||||||||||||||||||
The following tables summarize the credit risk ratings for commercial, construction, and other non-consumer related loans for December 31, 2013 and 2012. The Company did not carry any loans graded as loss at December 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||
Commercial and Industrial | Commercial RE | RE Construction and Development | Agricultural | Total | ||||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||
Grades 1and 2 | $ | 355 | $ | — | $ | — | $ | 70 | $ | 425 | ||||||||||||||||||||||||||
Grade 3 | 44 | 5,287 | 816 | — | 6,147 | |||||||||||||||||||||||||||||||
Grades 4 and 5 – pass | 69,070 | 127,189 | 66,048 | 30,862 | 293,169 | |||||||||||||||||||||||||||||||
Grade 6 – special mention | 590 | — | — | — | 590 | |||||||||||||||||||||||||||||||
Grade 7 – substandard | 627 | 11,443 | 20,140 | — | 32,210 | |||||||||||||||||||||||||||||||
Grade 8 – doubtful | — | — | — | — | — | |||||||||||||||||||||||||||||||
Total | $ | 70,686 | $ | 143,919 | $ | 87,004 | $ | 30,932 | $ | 332,541 | ||||||||||||||||||||||||||
Commercial and Industrial | Commercial RE | RE Construction and Development | Agricultural | Total | ||||||||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||
Grades 1and 2 | $ | 825 | $ | — | $ | — | $ | 60 | $ | 885 | ||||||||||||||||||||||||||
Grade 3 | 2,071 | 5,947 | 856 | — | 8,874 | |||||||||||||||||||||||||||||||
Grades 4 and 5 – pass | 66,098 | 116,606 | 75,191 | 35,973 | 293,868 | |||||||||||||||||||||||||||||||
Grade 6 – special mention | 1,867 | — | 141 | — | 2,008 | |||||||||||||||||||||||||||||||
Grade 7 – substandard | 1,256 | 11,046 | 14,753 | 136 | 27,191 | |||||||||||||||||||||||||||||||
Grade 8 – doubtful | — | — | — | — | — | |||||||||||||||||||||||||||||||
Total | $ | 72,117 | $ | 133,599 | $ | 90,941 | $ | 36,169 | $ | 332,826 | ||||||||||||||||||||||||||
The Company follows consistent underwriting standards outlined in its loan policy for consumer and other homogeneous loans but, does not specifically assign a risk rating when these loans are originated. Consumer loans are monitored for credit risk and are considered “pass” loans until some issue or event requires that the credit be downgraded to special mention or worse. | ||||||||||||||||||||||||||||||||||||
The following tables summarize the credit risk ratings for consumer related loans and other homogeneous loans for December 31, 2013 and 2012 (in thousands). | ||||||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||||
Residential Mortgages | Home | Installment | Total | Residential Mortgages | Home | Installment | Total | |||||||||||||||||||||||||||||
Improvement and Home Equity | Improvement and Home Equity | |||||||||||||||||||||||||||||||||||
Not graded | $ | 29,063 | $ | 1,378 | $ | 7,862 | $ | 38,303 | $ | 30,727 | $ | 1,309 | $ | 9,221 | $ | 41,257 | ||||||||||||||||||||
Pass | 19,320 | — | 1,468 | 20,788 | 20,572 | — | 1,422 | 21,994 | ||||||||||||||||||||||||||||
Special Mention | 1,204 | 32 | — | 1,236 | 909 | — | 49 | 958 | ||||||||||||||||||||||||||||
Substandard | 2,449 | — | — | 2,449 | 2,808 | 10 | 192 | 3,010 | ||||||||||||||||||||||||||||
Total | $ | 52,036 | $ | 1,410 | $ | 9,330 | $ | 62,776 | $ | 55,016 | $ | 1,319 | $ | 10,884 | $ | 67,219 | ||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||||||||||||||||
The Company analyzes risk characteristics inherent in each loan portfolio segment as part of the quarterly review of the adequacy of the allowance for loan losses. The following summarizes some of the key risk characteristics for the eleven segments of the loan portfolio (Consumer loans include three segments): | ||||||||||||||||||||||||||||||||||||
Commercial and business loans – Commercial loans are subject to the effects of economic cycles and tend to exhibit increased risk as economic conditions deteriorate, or if the economic downturn is prolonged. The Company considers this segment to be one of higher risk given the size of individual loans and the balances in the overall portfolio. | ||||||||||||||||||||||||||||||||||||
Government program loans – This is a relatively a small part of the Company’s loan portfolio, but has historically had a high percentage of loans that have migrated from pass to substandard given there vulnerability to economic cycles. | ||||||||||||||||||||||||||||||||||||
Commercial real estate loans – This segment is considered to have more risk in part because of the vulnerability of commercial businesses to economic cycles as well as the exposure to fluctuations in real estate prices because most of these loans are secured by real estate. Losses in this segment have however been historically low because most of the loans are real estate secured. | ||||||||||||||||||||||||||||||||||||
Residential mortgages – This segment is considered to have low risk factors both from the Company and peer statistics. These loans are secured by first deeds of trust. The losses experienced over the past twelve quarters are isolated to approximately seven loans and are generally the result of short sales. | ||||||||||||||||||||||||||||||||||||
Home improvement and home equity loans – Because of their junior lien position, these loans have an inherently higher risk level. Because residential real estate has been severely distressed in the recent past, the anticipated risk for this loan segment has increased. | ||||||||||||||||||||||||||||||||||||
Real estate construction and development loans –In a normal economy, this segment of loans is considered to have a higher risk profile due to construction and market value issues in conjunction with normal credit risks. In the current distressed residential real estate markets the risk has increased. | ||||||||||||||||||||||||||||||||||||
Agricultural loans – This segment is considered to have risks associated with weather, insects, and marketing issues. In addition, concentrations in certain crops or certain agricultural areas can increase risk. | ||||||||||||||||||||||||||||||||||||
Installment loans (Includes consumer loans, overdrafts, and overdraft protection lines) – This segment is higher risk because many of the loans are unsecured. | ||||||||||||||||||||||||||||||||||||
Commercial lease financing – This segment of the portfolio is small, but is considered to be vulnerable to economic cycles given the nature of the leasing relationship where businesses are relatively small or have minimal cash flow. This lending program was terminated in 2005. | ||||||||||||||||||||||||||||||||||||
The following summarizes the activity in the allowance for credit losses by loan category for the years ended December 31, 2013 and 2012 (in thousands). | ||||||||||||||||||||||||||||||||||||
December 31, 2013 | Commercial and Industrial | Real Estate Mortgage | RE Construction Development | Agricultural | Installment & Other | Commercial Lease Financing | Unallocated | Total | ||||||||||||||||||||||||||||
Beginning balance | $ | 1,614 | $ | 1,292 | $ | 2,814 | $ | 352 | $ | 288 | $ | 1 | $ | 5,423 | $ | 11,784 | ||||||||||||||||||||
Provision for credit losses | 1,134 | 1,101 | 1,285 | 222 | 160 | (1 | ) | (4,999 | ) | (1,098 | ) | |||||||||||||||||||||||||
Charge-offs | (542 | ) | (540 | ) | (95 | ) | (136 | ) | (244 | ) | — | (29 | ) | (1,586 | ) | |||||||||||||||||||||
Recoveries | 134 | 9 | 1,529 | 145 | 71 | — | — | 1,888 | ||||||||||||||||||||||||||||
Net charge-offs | (408 | ) | (531 | ) | 1,434 | 9 | (173 | ) | — | (29 | ) | 302 | ||||||||||||||||||||||||
Ending balance | $ | 2,340 | $ | 1,862 | $ | 5,533 | $ | 583 | $ | 275 | $ | — | $ | 395 | $ | 10,988 | ||||||||||||||||||||
Period-end amount allocated to: | ||||||||||||||||||||||||||||||||||||
Loans individually evaluated for impairment | 9 | 753 | — | — | — | — | — | 762 | ||||||||||||||||||||||||||||
Loans collectively evaluated for impairment | 2,331 | 1,109 | 5,533 | 583 | 275 | — | 395 | 10,226 | ||||||||||||||||||||||||||||
Ending balance | $ | 2,340 | $ | 1,862 | $ | 5,533 | $ | 583 | $ | 275 | $ | — | $ | 395 | $ | 10,988 | ||||||||||||||||||||
December 31, 2012 | Commercial and Industrial | Real Estate Mortgage | RE Construction Development | Agricultural | Installment & Other | Commercial Lease Financing | Unallocated | Total | ||||||||||||||||||||||||||||
Beginning balance | $ | 4,782 | $ | 2,070 | $ | 5,634 | $ | 803 | $ | 117 | $ | 1 | $ | 241 | $ | 13,648 | ||||||||||||||||||||
Provision for credit losses | (2,730 | ) | (235 | ) | (3,431 | ) | 1,860 | 384 | (11 | ) | 5,182 | 1,019 | ||||||||||||||||||||||||
Charge-offs | (1,080 | ) | (620 | ) | (10 | ) | (2,317 | ) | (251 | ) | — | — | (4,278 | ) | ||||||||||||||||||||||
Recoveries | 642 | 77 | 621 | 6 | 38 | 11 | — | 1,395 | ||||||||||||||||||||||||||||
Net charge-offs | (438 | ) | (543 | ) | 611 | (2,311 | ) | (213 | ) | 11 | — | (2,883 | ) | |||||||||||||||||||||||
Ending balance | $ | 1,614 | $ | 1,292 | $ | 2,814 | $ | 352 | $ | 288 | $ | 1 | $ | 5,423 | $ | 11,784 | ||||||||||||||||||||
Period-end amount allocated to: | ||||||||||||||||||||||||||||||||||||
Loans individually evaluated for impairment | 37 | 621 | — | — | — | — | — | 658 | ||||||||||||||||||||||||||||
Loans collectively evaluated for impairment | 1,577 | 671 | 2,814 | 352 | 288 | 1 | 5,423 | 11,126 | ||||||||||||||||||||||||||||
Ending balance | $ | 1,614 | $ | 1,292 | $ | 2,814 | $ | 352 | $ | 288 | $ | 1 | $ | 5,423 | $ | 11,784 | ||||||||||||||||||||
The following summarizes information with respect to the loan balances at December 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||||
Loans | Loans | Total Loans | Loans | Loans | Total Loans | |||||||||||||||||||||||||||||||
Individually | Collectively | Individually | Collectively | |||||||||||||||||||||||||||||||||
(In thousands) | Evaluated for Impairment | Evaluated for Impairment | Evaluated for Impairment | Evaluated for Impairment | ||||||||||||||||||||||||||||||||
Commercial and Business Loans | $ | 677 | $ | 67,783 | $ | 68,460 | $ | 1,343 | $ | 68,437 | $ | 69,780 | ||||||||||||||||||||||||
Government Program Loans | — | 2,226 | 2,226 | 88 | 2,249 | 2,337 | ||||||||||||||||||||||||||||||
Total Commercial and Industrial | 677 | 70,009 | 70,686 | 1,431 | 70,686 | 72,117 | ||||||||||||||||||||||||||||||
Commercial Real Estate Loans | 10,189 | 133,730 | 143,919 | 11,055 | 122,544 | 133,599 | ||||||||||||||||||||||||||||||
Residential Mortgage Loans | 5,384 | 46,652 | 52,036 | 7,392 | 47,624 | 55,016 | ||||||||||||||||||||||||||||||
Home Improvement and Home Equity Loans | — | 1,410 | 1,410 | 10 | 1,309 | 1,319 | ||||||||||||||||||||||||||||||
Total Real Estate Mortgage | 15,573 | 181,792 | 197,365 | 18,457 | 171,477 | 189,934 | ||||||||||||||||||||||||||||||
RE Construction and Development Loans | 1,789 | 85,215 | 87,004 | 1,730 | 89,211 | 90,941 | ||||||||||||||||||||||||||||||
Agricultural Loans | 45 | 30,887 | 30,932 | 192 | 35,977 | 36,169 | ||||||||||||||||||||||||||||||
Installment Loans | 48 | 9,282 | 9,330 | 121 | 10,763 | 10,884 | ||||||||||||||||||||||||||||||
Commercial Lease Financing | — | — | — | — | 12 | 12 | ||||||||||||||||||||||||||||||
Total Loans | $ | 18,132 | $ | 377,185 | $ | 395,317 | $ | 21,931 | $ | 378,126 | $ | 400,057 | ||||||||||||||||||||||||
Premises_and_Equipment
Premises and Equipment | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Premises and Equipment | ' | |||||||
Premises and Equipment | ||||||||
The components of premises and equipment are as follows: | ||||||||
(In thousands) | December 31, 2013 | December 31, 2012 | ||||||
Land | $ | 968 | $ | 968 | ||||
Buildings and improvements | 14,613 | 14,573 | ||||||
Furniture and equipment | 11,077 | 9,956 | ||||||
26,658 | 25,497 | |||||||
Less accumulated depreciation and amortization | (14,536 | ) | (13,235 | ) | ||||
Total premises and equipment | $ | 12,122 | $ | 12,262 | ||||
Total depreciation expense on Company premises and equipment totaled $1,316,000 and $1,200,000 for the years ended December 31, 2013 and 2012, respectively, and is included in occupancy expense in the accompanying consolidated statements of operations. |
Investment_in_Limited_Partners
Investment in Limited Partnership | 12 Months Ended |
Dec. 31, 2013 | |
Equity Method Investments and Joint Ventures [Abstract] | ' |
Investment in Limited Partnership | ' |
Investment in Limited Partnership | |
The Bank owns limited interests in private limited partnerships that acquire affordable housing properties in California that generate Low Income Housing Tax Credits under Section 42 of the Internal Revenue Code of 1986, as amended. The Bank's limited partnership investment is accounted for under the equity method. The Bank's noninterest expense associated with the utilization and expiration of these tax credits for the years ended December 31, 2013 and 2012 was $253,000 and $39,000, respectively. These limited partnership investments are expected to generate tax credits of approximately $1.8 million over the life of the investment. The tax credits expire between 2014 and 2015. Tax credits available for income tax purposes for the years ended December 31, 2013 and 2012 totaled $0 and $87,000, respectively. | |
The Bank owns a 9.14% interest in a limited partnership which provides private capital for small to mid-sized businesses used to finance later stage growth, strategic acquisitions, ownership transitions, and recapitalizations, or mezzanine capital. The Company also owns a 36% interest in a commercial real estate partnership. At December 31, 2013, the total investment in these partnerships was $390,000 and $3,559,000, respectively. |
Deposits
Deposits | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Deposits [Abstract] | ' | |||||||
Deposits | ' | |||||||
Deposits | ||||||||
Deposits include the following: | ||||||||
(In thousands) | December 31, 2013 | December 31, 2012 | ||||||
Noninterest-bearing deposits | $ | 214,317 | $ | 217,014 | ||||
Interest-bearing deposits: | ||||||||
NOW and money market accounts | 198,928 | 203,771 | ||||||
Savings accounts | 45,758 | 43,117 | ||||||
Time deposits: | ||||||||
Under $100,000 | 28,825 | 32,532 | ||||||
$100,000 and over | 54,661 | 66,853 | ||||||
Total interest-bearing deposits | 328,172 | 346,273 | ||||||
Total deposits | $ | 542,489 | $ | 563,287 | ||||
At December 31, 2013, the scheduled maturities of all certificates of deposit and other time deposits are as follows: | ||||||||
(In thousands) | 31-Dec-13 | |||||||
One year or less | $ | 68,343 | ||||||
More than one year, but less than or equal to two years | 10,554 | |||||||
More than two years, but less than or equal to three years | 2,019 | |||||||
More than three years, but less than or equal to four years | 2,198 | |||||||
More than four years, but less than or equal to five years | 358 | |||||||
More than five years | 14 | |||||||
$ | 83,486 | |||||||
The Company may utilize brokered deposits as an additional source of funding. At December 31, 2013 and 2012, the Company held brokered time deposits totaling $11,500,000 and $17,984,000, respectively. Of this balance at December 31, 2013, $11,157,000 is included in time deposits of $100,000 or more, and the remaining $343,000 is included in time deposits of less than $100,000. Included in brokered time deposits at December 31, 2013 are balances totaling $3,900,000 maturing in three months or less, $7,215,000 maturing in 3 months to a year, and the remaining $385,000 maturing in 1 to 3 years. | ||||||||
Deposit balances representing overdrafts reclassified as loan balances totaled $157,000 and $155,000 as of December 31, 2013 and 2012, respectively. | ||||||||
Deposits of directors, officers and other related parties to the Bank totaled $6,943,000 and $6,505,000 at December 31, 2013 and 2012, respectively. The rates paid on these deposits were similar to those customarily paid to the Bank’s customers in the normal course of business. |
Shortterm_BorrowingsOther_Borr
Short-term Borrowings/Other Borrowings | 12 Months Ended |
Dec. 31, 2013 | |
Short term Borrowings/Other Borrowings [Abstract] | ' |
Short-term Borrowings/Other Borrowings | ' |
Short-term Borrowings/Other Borrowings | |
At December 31, 2013, the Company had collateralized lines of credit with the Federal Reserve Bank of San Francisco totaling $254,761,000, as well as Federal Home Loan Bank (“FHLB”) lines of credit totaling $7,094,000. At December 31, 2013, the Company had an uncollateralized line of credit with Pacific Coast Bankers Bank ("PCBB") totaling $10,000,000. At December 31, 2013, the Company had no outstanding borrowing balances. The weighted average cost of borrowings for the year ended December 31, 2013 was 0.00%. These lines of credit generally have interest rates tied to the Federal Funds rate or are indexed to short-term U.S. Treasury rates or LIBOR. FHLB advances are collateralized by all of the Company’s stock in the FHLB, investment securities, and certain qualifying mortgage loans. As of December 31, 2013, $7,468,000 in investment securities at FHLB were pledged as collateral for FHLB advances. Additionally, $334,299,000 in real estate-secured loans were pledged at December 31, 2013, as collateral for used and unused borrowing lines with the Federal Reserve Bank totaling $254,761,000. All lines of credit are on an “as available” basis and can be revoked by the grantor at any time. | |
The Company had collateralized lines of credit with the Federal Reserve Bank of San Francisco totaling $217,841,000, as well as Federal Home Loan Bank (“FHLB”) lines of credit totaling $10,493,000 at December 31, 2012. At December 31, 2012, the Company had no outstanding borrowing balances. The weighted average cost of borrowings for the year ended December 31, 2012 was 0.00%. |
Junior_Subordinated_DebtTrust_
Junior Subordinated Debt/Trust Preferred Securities | 12 Months Ended |
Dec. 31, 2013 | |
Junior Subordinated Debt/Trust Preferred Securities [Abstract] | ' |
Junior Subordinated Debt/Trust Preferred Securities | ' |
Junior Subordinated Debt/Trust Preferred Securities | |
During July 2007, the Company formed USB Capital Trust II, a wholly-owned special purpose entity, for the purpose of issuing Trust Preferred Securities. USB Capital Trust II is a Variable Interest Entity (VIE) and a deconsolidated entity pursuant to ASC 810. On July 23, 2007, USB Capital Trust II issued $15 million in Trust Preferred securities. The securities have a thirty-year maturity and bear a floating rate of interest (repricing quarterly) of 1.29% over the three-month LIBOR rate (initial coupon rate of 6.65%). Interest will be paid quarterly. Concurrent with the issuance of the Trust Preferred securities, USB Capital Trust II used the proceeds of the Trust Preferred securities offering to purchase a like amount of junior subordinated debentures of the Company. The Company will pay interest on the junior subordinated debentures to USB Capital Trust II, which represents the sole source of dividend distributions to the holders of the Trust Preferred securities. The Company may redeem the junior subordinated debentures at anytime at par. | |
The Company elected the fair value measurement option for all the Company’s new junior subordinated debentures issued under USB Capital Trust II. | |
Effective September 30, 2009 and beginning with the quarterly interest payment due October 1, 2009, the Company elected to defer interest payments on the Company’s $15.0 million of junior subordinated debentures relating to its trust preferred securities. The terms of the debentures and trust indentures allow for the Company to defer interest payments for up to 20 consecutive quarters without default or penalty. During the period that the interest deferrals are elected, the Company will continue to record interest expense associated with the debentures. Upon the expiration of the deferral period, all accrued and unpaid interest will be due and payable. During the deferral period, the Company is precluded from paying cash dividends to shareholders or repurchasing its stock. At December 31, 2013 and 2012, the Company had $1,172,000 and $891,000, respectively, in accrued and unpaid interest on the junior subordinated debt. | |
At December 31, 2013, as with previous periods, the Company performed a fair value measurement analysis on its junior subordinated debt using a discounted cash flow valuation model approach to determine the present value of those cash flows. The cash flow model utilizes the forward 3-month Libor curve to estimate future quarterly interest payments due over the life of the debt instrument, adjusted for deferrals of interest payments per the Company’s election at September 30, 2009 expected to be paid cumulatively during the third quarter of 2014. These cash flows were discounted at a rate which incorporates a current market rate for similar-term debt instruments, adjusted for additional credit and liquidity risks associated with the junior subordinated debt. Although there is little market data in the current relatively illiquid credit markets, we believe the 8.19% discount rate used represents what a market participant would consider under the circumstances based on current market assumptions. | |
The fair value calculation performed resulted in a realized losses of $776,000 and $774,000 for the years ended December 31, 2013 and 2012, respectively. Fair value gains and losses are reflected as a component of noninterest income. |
Taxes_on_Income
Taxes on Income | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Taxes on Income | ' | |||||||||||
Taxes on Income | ||||||||||||
The tax effects of significant items comprising the Company’s net deferred tax assets (liabilities) are as follows: | ||||||||||||
December 31, | ||||||||||||
(In thousands) | 2013 | 2012 | ||||||||||
Deferred tax assets: | ||||||||||||
Credit losses not currently deductible | $ | 4,927 | $ | 4,391 | ||||||||
Deferred compensation | 1,920 | 1,912 | ||||||||||
Net operating losses | 9,074 | 7,773 | ||||||||||
Depreciation | 231 | 518 | ||||||||||
Accrued reserves | 63 | 194 | ||||||||||
Write-down on other real estate owned | (97 | ) | 3,283 | |||||||||
Capitalized OREO expenses | 1,079 | 793 | ||||||||||
Other | 2,555 | 1,908 | ||||||||||
Total deferred tax assets | 19,752 | 20,772 | ||||||||||
Deferred tax liabilities: | ||||||||||||
State Tax | (2,640 | ) | (1,889 | ) | ||||||||
FHLB dividend | (53 | ) | (103 | ) | ||||||||
Loss on limited partnership investment | (1,808 | ) | (1,695 | ) | ||||||||
Unrealized gain on AFS | (211 | ) | (458 | ) | ||||||||
Deferred gain SFAS No. 159 – fair value option | (2,471 | ) | (2,819 | ) | ||||||||
Fair value adjustments for purchase accounting | (167 | ) | (123 | ) | ||||||||
Interest on nonaccrual loans | 36 | (368 | ) | |||||||||
Deferred loan costs | (570 | ) | (602 | ) | ||||||||
Prepaid expenses | (238 | ) | (305 | ) | ||||||||
Total deferred tax liabilities | (8,122 | ) | (8,362 | ) | ||||||||
Valuation Allowance | — | (2,686 | ) | |||||||||
Net deferred tax assets | $ | 11,630 | $ | 9,724 | ||||||||
The Company periodically evaluates its deferred tax assets to determine whether a valuation allowance is required based upon a determination that some or all of the deferred assets may not be ultimately realized. At December 31, 2013 and 2012, the Company had a recorded valuation allowance of $0 and $2,686,000, respectively. | ||||||||||||
Income tax expense (benefit) for the years ended December 31, consist of the following: | ||||||||||||
(In thousands) | ||||||||||||
2013 | Federal | State | Total | |||||||||
Current | $ | 1,059 | $ | 819 | $ | 1,878 | ||||||
Deferred | (1,055 | ) | (718 | ) | (1,773 | ) | ||||||
$ | 4 | $ | 101 | $ | 105 | |||||||
2012 | ||||||||||||
Current | $ | 719 | $ | (416 | ) | $ | 303 | |||||
Deferred | 466 | 764 | 1,230 | |||||||||
$ | 1,185 | $ | 348 | $ | 1,533 | |||||||
A reconciliation of the statutory federal income tax rate to the effective income tax rate is as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Statutory federal income tax rate | 34 | % | 34 | % | ||||||||
State franchise tax, net of federal income tax benefit | 0.9 | 3 | ||||||||||
Low Income Housing – federal credits | 0 | (1.1 | ) | |||||||||
Cash surrender value of life insurance | (2.4 | ) | (2.4 | ) | ||||||||
Valuation Allowance | (33.0 | ) | (13.2 | ) | ||||||||
Other | 1.9 | (0.1 | ) | |||||||||
1.4 | % | 20.2 | % | |||||||||
During the years ended December 31, 2013 and 2012, the valuation allowance decreased $2,686,000 and $1,000,000, respectively. At December 31, 2013, the Company has remaining federal net operating loss carry-forwards totaling $8,123,000, and remaining state net operating loss carry-forwards totaling $58,074,000 which expire between 2014 and 2032. The Company anticipates that it will utilize the net operating loss carry-forwards expiring in 2014. | ||||||||||||
The Company periodically reviews its tax positions under the accounting standards related to uncertainty in income taxes, which defines the criteria that an individual tax position would have to meet for some or all of the income tax benefit to be recognized in a taxable entity’s financial statements. Under the guidelines, an entity should recognize the financial statement benefit of a tax position if it determines that it is more likely than not that the position will be sustained on examination. The term, “more likely than not”, means a likelihood of more than 50 percent. In assessing whether the more-likely-than-not criterion is met, the entity should assume that the tax position will be reviewed by the applicable taxing authority and all available information is known to the taxing authority. | ||||||||||||
The Company and its subsidiary file income tax returns in the U.S federal jurisdiction, and several states within the U.S. There are no filings in foreign jurisdictions. During 2010, the Company amended its federal tax returns for the year 2004 through 2009 to utilize the five-year NOL carry-back provisions allowed by the IRS for 2009. These amended tax returns were audited by the IRS and the examination was finalized during the first quarter of 2013 and the settlement resulted in interest income of $95,000 and $0 for the years ended December 31, 2013 and 2012, respectively. The Company is no longer subject to examination by taxing authorities for years endings before 2010 for federal purposes and 2003 for California purposes. The Company's policy is to recognize any interest or penalties related to uncertain tax position in income tax expense. | ||||||||||||
The Company is not currently aware of any other tax jurisdictions where the Company or any subsidiary is subject to examination by federal, state, or local taxing authorities. |
Stock_Based_Compensation
Stock Based Compensation | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||
Stock Based Compensation | ' | |||||||
Stock Based Compensation | ||||||||
Options have been granted to officers and key employees at an exercise price equal to estimated fair value at the date of grant as determined by the Board of Directors. All options granted are service awards, and as such are based solely upon fulfilling a requisite service period (the vesting period). In May 2005, the Company’s shareholders approved the adoption of the United Security Bancshares 2005 Stock Option Plan (2005 Plan). At the same time, all previous plans, including the 1995 Plan, were terminated. The 2005 Plan provides for the granting of up to 622,358 shares of authorized and unissued shares of common stock at option prices per share which must not be less than 100% of the fair market value per share at the time each option is granted. | ||||||||
The options granted (incentive stock options for employees and non-qualified stock options for Directors) have an exercise price at the prevailing market price on the date of grant. All options granted are exercisable 20% each year commencing one year after the date of grant and expire ten years after the date of grant. | ||||||||
Under the 2005 Plan, 193,082 granted shares are outstanding (163,210 incentive stock options and 29,872 nonqualified stock options) as of December 31, 2013, of which 153,179 are vested. | ||||||||
Options outstanding, exercisable, exercised and forfeited are as follows: | ||||||||
2005 | Weighted | |||||||
Plan | Average | |||||||
Exercise Price | ||||||||
Options outstanding December 31, 2012 | 194,224 | $ | 10.27 | |||||
Granted during the year | 25,502 | 4.16 | ||||||
Exercised during the year | 5,202 | 2.29 | ||||||
Forfeited during the year | 21,442 | 2.29 | ||||||
Options outstanding December 31, 2013 | 193,082 | $ | 10.57 | |||||
Included in total outstanding options at December 31, 2013, are 153,179 exercisable shares at a weighted average price of $12.27, a weighted average remaining contract term of 2.50 years and intrinsic value of $15,000. | ||||||||
Included in salaries and employee benefits for the years ended December 31, 2013 and 2012, is $29,000 and $18,000 of share-based compensation, respectively. The related tax benefit on share-based compensation recorded in the provision for income taxes was not material to either year. | ||||||||
As of December 31, 2013 and 2012, there was $64,000 and $42,000, respectively, of total unrecognized compensation expense related to nonvested stock options. This cost is expected to be recognized over a weighted average period of approximately 3.0 years. No options were exercised during 2012, while 5,202 options were exercised during 2013. | ||||||||
31-Dec-13 | 31-Dec-12 | |||||||
Weighted average grant-date fair value of stock options granted | $ | 2.8 | $ | 1.33 | ||||
Total fair value of stock options vested | $ | 24,310 | $ | 26,246 | ||||
Total intrinsic value of stock options exercised | $ | 9,665 | n/a | |||||
The Bank determines fair value at grant date using the Black-Scholes-Merton pricing model that takes into account the stock price at the grant date, the exercise price, the expected life of the option, the volatility of the underlying stock and the expected dividend yield and the risk-free interest rate over the expected life of the option. | ||||||||
The weighted average assumptions used in the pricing model are noted in the table below. The expected term of options granted is derived using the simplified method, which is based upon the average period between vesting term and expiration term of the options. The risk free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. Expected volatility is based on the historical volatility of the Bank's stock over a period commensurate with the expected term of the options. The Company believes that historical volatility is indicative of expectations about its future volatility over the expected term of the options. | ||||||||
The Bank expenses the fair value of the option on a straight-line basis over the vesting period for each separately vesting portion of the award. The Bank estimates forfeitures and only recognizes expense for those shares expected to vest. Based upon historical evidence, the Company has determined that because options are granted to a limited number of key employees rather than a broad segment of the employee base, expected forfeitures, if any, are not material. The Company granted 25,502 shares and 25,757 shares in incentive stock options during 2013 and 2012, respectively. The assumptions used for the 2013 and 2012 stock option grant are as follows: | ||||||||
Year Ended | Year Ended | |||||||
December 31, 2013 | December 31, 2012 | |||||||
Risk Free Interest Rate | 1.20% | 1.02% | ||||||
Expected Dividend Yield | —% | —% | ||||||
Expected Life in Years | 5.5 years | 5.5 years | ||||||
Expected Price Volatility | 78.88% | 79.43% | ||||||
The Black-Scholes-Merton option valuation model requires the input of highly subjective assumptions, including the expected life of the stock based award and stock price volatility. The assumptions listed above represent management's best estimates, but these estimates involve inherent uncertainties and the application of management judgment. As a result, if other assumptions had been used, the Bank's recorded stock-based compensation expense could have been materially different from that previously reported in proforma disclosures. In addition, the Bank is required to estimate the expected forfeiture rate and only recognize expense for those shares expected to vest. If the Bank's actual forfeiture rate is materially different from the estimate, the share-based compensation expense could be materially different. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Employee Benefit Plans | ' |
Employee Benefit Plans | |
401K Plan | |
The Company has a Cash or Deferred 401(k) Stock Ownership Plan (the “401(k) Plan”) organized under Section 401(k) of the Code. All employees of the Company are initially eligible to participate in the 401(k) Plan upon the first day of the month after date of hire. Under the terms of the plan, the participants may elect to make contributions to the 401(k) Plan as determined by the Board of Directors. Participants are automatically vested 100% in all employee contributions. Participants may direct the investment of their contributions to the 401(k) Plan in any of several authorized investment vehicles. The Company contributes funds to the Plan up to 4% of the employees’ eligible annual compensation. Company contributions are immediately 100% vested at the time of contribution. During 2013 and 2012, the Company made matching contributions of $256,000 and $229,000 to the 401(k) Plan, respectively. | |
Salary Continuation Plan | |
The Company has an unfunded, non-qualified Salary Continuation Plan for senior executive officers and certain other key officers of the Company, which provides additional compensation benefits upon retirement for a period of 15 years. Future compensation under the Plan is earned by the employees for services rendered through retirement and vests over a period of 12 to 15 years. The Company accrues for the salary continuation liability based on anticipated years of service and vesting schedules provided under the Plan. The Company’s current benefit liability is determined based upon vesting and the present value of the benefits at a corresponding discount rate. The discount rate used is an equivalent rate for high-quality investment-grade bonds with lives matching those of the service periods remaining for the salary continuation contracts, which averages approximately 20 years. At December 31, 2013 and 2012, $4,031,000 and $4,298,000, respectively, had been accrued to date, based on a discounted cash flow using an average discount rate of 3.39% and 2.55%, respectively, and is included in other liabilities. In connection with the implementation of the Salary Continuation Plans, the Company purchased single premium universal life insurance policies on the life of each of the key employees covered under the Plan. The Company is the owner and beneficiary of these insurance policies. The cash surrender value of the policies was $4,421,000 and $4,297,000 at December 31, 2013 and 2012, respectively, and is included on the consolidated balance sheet in cash surrender value of life insurance. Income on these policies, net of expense, totaled approximately $124,000 and $120,000 for the years ended December 31, 2013 and 2012, respectively. Although the Plan is unfunded, the Company intends to utilize the proceeds of such policies to settle the Plan obligations. Under Internal Revenue Service regulations, the life insurance policies are the property of the Company and are available to satisfy the Company's general creditors. | |
Pursuant to the guidance contained in ASC Topic 715 “Compensation,” the Company is required to recognize in accumulated other comprehensive (loss) income, the amounts that have not yet been recognized as components of net periodic benefit costs. These unrecognized costs arise from changes in estimated interest rates used in the calculation of net liabilities under the plan. | |
As of December 31, 2013 and 2012, the Company had approximately $436,000 and $598,000, respectively in unrecognized net periodic benefit costs arising from changes in interest rates used in calculating the current post-retirement liability required under the plan. This amount represents the difference between the plan liabilities calculated under net present value calculations, and the net plan liabilities actually recorded on the Company’s books at December 31, 2013 and 2012. | |
Salary continuation expense is included in salaries and benefits expense, and totaled $160,000 and $90,000 for the years ended December 31, 2013 and 2012, respectively. | |
Officer Supplemental Life Insurance Plan | |
The Company owns single premium Bank-owned life insurance policies (BOLI) on certain officers with a portion of the death benefits available to the officers’ beneficiaries. The BOLI’s initial net cash surrender value is equivalent to the premium paid, and it adds income through non-taxable increases in its cash surrender value, net of the cost of insurance, plus any death benefits ultimately received by the Company. The cash surrender value of these insurance policies totaled $12,782,000 and $12,384,000 at December 31, 2013 and 2012, and is included on the consolidated balance sheet in cash surrender value of life insurance. Income on these policies, net of expense, totaled approximately $398,000 and $411,000 for the years ended December 31, 2013 and 2012, respectively. |
Commitments_and_Contingent_Lia
Commitments and Contingent Liabilities | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Commitments and Contingent Liabilities | ' | |||||||
Commitments and Contingent Liabilities | ||||||||
Lease Commitments: The Company leases land and premises for its branch banking offices and administration facilities. The initial terms of these leases expire at various dates through 2023. Under the provisions of most of these leases, the Company has the option to extend the leases beyond their original terms at rental rates adjusted for changes reported in certain economic indices or as reflected by market conditions. The total expense on land and premises leased under operating leases was $652,000 and $636,000 during 2013 and 2012, respectively. Total rent expense for the years ended December 31, 2013 and 2012 included approximately $18,000 and $8,000 in reductions, respectively, related to adjustments made pursuant to ASC Topic 840, “Leases”. The adjustments represent the difference between contractual rent amounts paid and rent amounts actually expensed under the straight-line method pursuant to ASC 840. | ||||||||
Future minimum rental commitments under existing non-cancelable leases as of December 31, 2013 are as follows: | ||||||||
(In thousands): | ||||||||
2014 | $ | 530 | ||||||
2015 | 457 | |||||||
2016 | 310 | |||||||
2017 | 274 | |||||||
2018 | 270 | |||||||
Thereafter | 347 | |||||||
$ | 2,188 | |||||||
Financial Instruments with Off-Balance Sheet Risk: The Company is party to financial instruments with off-balance sheet risk which arise in the normal course of business. These instruments may contain elements of credit risk, interest rate risk and liquidity risk, and include commitments to extend credit and standby letters of credit. The credit risk associated with these instruments is essentially the same as that involved in extending credit to customers and is represented by the contractual amount indicated in the table below: | ||||||||
Contractual amount – December 31, | ||||||||
(In thousands) | 2013 | 2012 | ||||||
Commitments to extend credit | $ | 63,271 | $ | 60,050 | ||||
Standby letters of credit | 2,001 | 2,504 | ||||||
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. Substantially all of these commitments are at floating interest rates based on the Prime rate, and most have fixed expiration dates. The Company evaluates each customer's creditworthiness on a case-by-case basis, and the amount of collateral obtained, if deemed necessary, is based on management's credit evaluation. Collateral held varies but includes accounts receivable, inventory, leases, property, plant and equipment, residential real estate and income-producing properties. Many of the commitments are expected to expire without being drawn upon and, as a result, the total commitment amounts do not necessarily represent future cash requirements of the Company. | ||||||||
Standby letters of credit are generally unsecured and are issued by the Company to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. The Company’s letters of credit are short-term guarantees and generally have terms from less than one month to approximately 3 years. At December 31, 2013, the maximum potential amount of future undiscounted payments the Company could be required to make under outstanding standby letters of credit totaled $2,001,000. |
Fair_Value_Measurements_and_Di
Fair Value Measurements and Disclosure | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
Fair Value Measurements and Disclosure | ' | |||||||||||||||||||
Fair Value Measurements and Disclosure | ||||||||||||||||||||
The following summary disclosures are made in accordance with the guidance provided by ASC Topic 825 “Fair Value Measurements and Disclosures” (formerly Statement of Financial Accounting Standards No. 107, “Disclosures about Fair Value of Financial Instruments,”) which requires the disclosure of fair value information about both on- and off-balance sheet financial instruments where it is practicable to estimate that value. | ||||||||||||||||||||
Generally accepted accounting guidance clarifies the definition of fair value, describes methods used to appropriately measure fair value in accordance with generally accepted accounting principles and expands fair value disclosure requirements. This guidance applies whenever other accounting pronouncements require or permit fair value measurements. | ||||||||||||||||||||
The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels (Level 1, Level 2, and Level 3). Level 1 inputs are unadjusted quoted prices in active markets (as defined) for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability, and reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). | ||||||||||||||||||||
The table below is a summary of fair value estimates for financial instruments and the level of the fair value hierarchy within which the fair value measurements are categorized at the periods indicated: | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
(In thousands) | Carrying Amount | Estimated Fair Value | Quoted Prices In Active Markets for Identical Assets Level 1 | Significant Other Observable Inputs Level 2 | Significant Unobservable Inputs Level 3 | |||||||||||||||
Financial Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 135,212 | $ | 135,212 | $ | 135,212 | $ | — | $ | — | ||||||||||
Interest-bearing deposits | 1,515 | 1,515 | — | 1,515 | — | |||||||||||||||
Investment securities | 43,616 | 43,616 | 10,746 | 32,870 | — | |||||||||||||||
Loans | 384,025 | 380,615 | — | — | 380,615 | |||||||||||||||
Accrued interest receivable | 1,644 | 1,644 | — | 1,644 | — | |||||||||||||||
Financial Liabilities: | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest-bearing | 214,317 | 214,317 | 214,317 | — | — | |||||||||||||||
NOW and money market | 198,928 | 198,928 | 198,928 | — | — | |||||||||||||||
Savings | 45,758 | 45,758 | 45,758 | — | — | |||||||||||||||
Time Deposits | 83,486 | 83,362 | — | — | 83,362 | |||||||||||||||
Total Deposits | 542,489 | 542,365 | 459,003 | — | 83,362 | |||||||||||||||
Junior Subordinated Debt | 11,125 | 11,125 | — | — | 11,125 | |||||||||||||||
Accrued interest payable | 44 | 44 | — | 44 | — | |||||||||||||||
December 31, 2012 | ||||||||||||||||||||
(In thousands) | Carrying Amount | Estimated Fair Value | Quoted Prices In Active Markets for Identical Assets Level 1 | Significant Other Observable Inputs Level 2 | Significant Unobservable Inputs Level 3 | |||||||||||||||
Financial Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 141,627 | $ | 141,627 | $ | 141,627 | $ | — | $ | — | ||||||||||
Interest-bearing deposits | 1,507 | 1,507 | — | 1,507 | — | |||||||||||||||
Investment securities | 31,844 | 31,844 | 13,593 | 18,251 | — | |||||||||||||||
Loans | 388,249 | 386,836 | — | — | 386,836 | |||||||||||||||
Accrued interest receivable | 1,694 | 1,694 | — | 1,694 | — | |||||||||||||||
Financial Liabilities: | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest-bearing | 217,014 | 217,014 | 217,014 | — | — | |||||||||||||||
NOW and money market | 203,771 | 203,771 | 203,771 | — | — | |||||||||||||||
Savings | 43,117 | 43,117 | 43,117 | — | — | |||||||||||||||
Time Deposits | 99,385 | 99,529 | — | — | 99,529 | |||||||||||||||
Total Deposits | 563,287 | 563,431 | 463,902 | — | 99,529 | |||||||||||||||
Junior Subordinated Debt | 10,068 | 10,068 | — | — | 10,068 | |||||||||||||||
Accrued interest payable | 71 | 71 | — | 71 | — | |||||||||||||||
The Company performs fair value measurements on certain assets and liabilities as the result of the application of current accounting guidelines. Some fair value measurements, such as available-for-sale securities (AFS) and junior subordinated debt are performed on a recurring basis, while others, such as impairment of loans, other real estate owned, goodwill and other intangibles, are performed on a nonrecurring basis. | ||||||||||||||||||||
The following tables summarize the Company’s assets and liabilities that were measured at fair value on a recurring and non-recurring basis as of December 31, 2013 (in 000’s): | ||||||||||||||||||||
Description of Assets | 31-Dec-13 | Quoted Prices in | Significant Other | Significant | ||||||||||||||||
Active Markets | Observable Inputs | Unobservable | ||||||||||||||||||
for Identical | (Level 2) | Inputs | ||||||||||||||||||
Assets | (Level 3) | |||||||||||||||||||
(Level 1) | ||||||||||||||||||||
AFS Securities (2): | ||||||||||||||||||||
U.S. Government agencies | $ | 14,501 | $ | — | $ | 14,500 | $ | — | ||||||||||||
U.S Govt collateralized mortgage obligations | 25,385 | 7,016 | 18,370 | — | ||||||||||||||||
Mutual Funds | 3,730 | 3,730 | — | — | ||||||||||||||||
Total AFS securities | 43,616 | 10,746 | 32,870 | — | ||||||||||||||||
Impaired Loans (1): | ||||||||||||||||||||
Commercial and industrial | — | — | — | — | ||||||||||||||||
Real estate mortgage | 1,388 | — | — | 1,388 | ||||||||||||||||
RE construction & development | — | — | — | — | ||||||||||||||||
Agricultural | — | — | — | — | ||||||||||||||||
Installment/Other | — | — | — | — | ||||||||||||||||
Total impaired loans | 1,388 | — | — | 1,388 | ||||||||||||||||
Other real estate owned (1) | 3,889 | — | — | 3,889 | ||||||||||||||||
Total | $ | 48,893 | $ | 10,746 | $ | 32,870 | $ | 5,277 | ||||||||||||
Description of Liabilities | December 31, 2013 | Quoted Prices | Significant | Significant | ||||||||||||||||
in Active | Other | Unobservable | ||||||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||||
Identical | Inputs | (Level 3) | ||||||||||||||||||
Assets | (Level 2) | |||||||||||||||||||
(Level 1) | ||||||||||||||||||||
Junior subordinated debt (2) | $ | 11,125 | $ | — | $ | — | $ | 11,125 | ||||||||||||
Total | $ | 11,125 | $ | — | $ | — | $ | 11,125 | ||||||||||||
(1)Nonrecurring | ||||||||||||||||||||
(2)Recurring | ||||||||||||||||||||
The following tables summarize the Company’s assets and liabilities that were measured at fair value on a recurring and non-recurring basis as of December 31, 2012 (in 000’s): | ||||||||||||||||||||
Description of Assets | December 31, 2012 | Quoted Prices | Significant | Significant | ||||||||||||||||
in Active | Other | Unobservable | ||||||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||||
Identical | Inputs | (Level 3) | ||||||||||||||||||
Assets | (Level 2) | |||||||||||||||||||
(Level 1) | ||||||||||||||||||||
AFS Securities (2): | ||||||||||||||||||||
U.S. Government agencies | $ | 6,600 | $ | — | $ | 6,600 | $ | — | ||||||||||||
U.S Govt collateralized mortgage obligations | 21,283 | 9,632 | 11,651 | — | ||||||||||||||||
Mutual Funds | 3,961 | 3,961 | — | — | ||||||||||||||||
Total AFS securities | 31,844 | 13,593 | 18,251 | — | ||||||||||||||||
Impaired Loans (1): | ||||||||||||||||||||
Commercial and industrial | 47 | — | — | 47 | ||||||||||||||||
Real estate mortgage | 2,159 | — | — | 2,159 | ||||||||||||||||
RE construction & development | — | — | — | — | ||||||||||||||||
Agricultural | 136 | — | — | 136 | ||||||||||||||||
Installment/Other | — | — | — | — | ||||||||||||||||
Total impaired loans | 2,342 | — | — | 2,342 | ||||||||||||||||
Other real estate owned (1) | 4,483 | — | — | 4,483 | ||||||||||||||||
Total | $ | 38,669 | $ | 13,593 | $ | 18,251 | $ | 6,825 | ||||||||||||
Description of Liabilities | 31-Dec-12 | Quoted Prices | Significant | Significant | ||||||||||||||||
in Active | Other | Unobservable | ||||||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||||
Identical | Inputs | (Level 3) | ||||||||||||||||||
Assets | (Level 2) | |||||||||||||||||||
(Level 1) | ||||||||||||||||||||
Junior subordinated debt (2) | $ | 10,068 | $ | — | $ | — | $ | 10,068 | ||||||||||||
Total | $ | 10,068 | $ | — | $ | — | $ | 10,068 | ||||||||||||
(1)Nonrecurring | ||||||||||||||||||||
(2)Recurring | ||||||||||||||||||||
The following table presents quantitative information about Level 3 fair value measurements for the Company's assets measured at fair value on a non-recurring basis at December 31, 2013: | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Financial Instrument | Fair Value | Valuation Technique | Unobservable Input | Range, Weighted Average | ||||||||||||||||
Impaired Loans: | ||||||||||||||||||||
Real estate mortgage | $ | 1,388 | Sales Comparison Approach | Adjustment for difference between comparable sales | 1%-32%, 17.5% | |||||||||||||||
Other real estate owned: | ||||||||||||||||||||
Real estate construction | 3,889 | Discounted cash flow | Discount rate | 1%-10%, 8.49% | ||||||||||||||||
The following methods and assumptions were used in estimating the fair values of financial instruments: | ||||||||||||||||||||
Cash and Cash Equivalents - The carrying amounts reported in the balance sheets for cash and cash equivalents approximate their estimated fair values. | ||||||||||||||||||||
Interest-bearing Deposits – Interest bearing deposits in other banks consist of fixed-rate certificates of deposits. Accordingly, fair value has been estimated based upon interest rates currently being offered on deposits with similar characteristics and maturities. | ||||||||||||||||||||
Investments – Available for sale securities are valued based upon open-market price quotes obtained from reputable third-party brokers that actively make a market in those securities. Market pricing is based upon specific CUSIP identification for each individual security. To the extent there are observable prices in the market, the mid-point of the bid/ask price is used to determine fair value of individual securities. If that data is not available for the last 30 days, a Level 2-type matrix pricing approach based on comparable securities in the market is utilized. Level-2 pricing may include using a forward spread from the last observable trade or may use a proxy bond like a TBA mortgage to come up with a price for the security being valued. Changes in fair market value are recorded through other comprehensive loss as the securities are available for sale. | ||||||||||||||||||||
Loans - Fair values of variable rate loans, which reprice frequently and with no significant change in credit risk, are based on carrying values adjusted for credit risk. Fair values for all other loans, except impaired loans, are estimated using discounted cash flows over their remaining maturities, using interest rates at which similar loans would currently be offered to borrowers with similar credit ratings and for the same remaining maturities. | ||||||||||||||||||||
Impaired Loans - Fair value measurements for impaired loans are performed pursuant to authoritative accounting guidance and are based upon either collateral values supported by appraisals, observed market prices, or discounted cash flows. Changes are not recorded directly as an adjustment to current earnings or comprehensive income, but rather as an adjustment component in determining the overall adequacy of the loan loss reserve. Such adjustments to the estimated fair value of impaired loans may result in increases or decreases to the provision for credit losses recorded in current earnings. Collateral dependent loans are measured for impairment using the fair value of the collateral. | ||||||||||||||||||||
Other Real Estate Owned - Nonrecurring adjustments to certain commercial and residential real estate properties classified as other real estate owned (OREO) are measured at the lower of carrying amount or fair value, less costs to sell. Fair values are generally based on third party appraisals of the property, resulting in a Level 3 classification. In cases where the carrying amount exceeds the fair value, less costs to sell, an impairment loss is recognized. | ||||||||||||||||||||
Bank-owned Life Insurance – Fair values of life insurance policies owned by the Company approximate the insurance contract’s cash surrender value. | ||||||||||||||||||||
Deposits – In accordance with authoritative accounting guidance, fair values for transaction and savings accounts are equal to the respective amounts payable on demand at December 31, 2013 and 2012 (i.e., carrying amounts). The Company believes that the fair value of these deposits is clearly greater than that prescribed under authoritative accounting guidance. Fair values of fixed-maturity certificates of deposit were estimated using the rates currently offered for deposits with similar remaining maturities. | ||||||||||||||||||||
Borrowings - Borrowings consist of federal funds sold, securities sold under agreements to repurchase, and other short-term borrowings. Fair values of borrowings were estimated using the rates currently offered for borrowings with similar remaining maturities. | ||||||||||||||||||||
Junior Subordinated Debt – The fair value of the junior subordinated debt was determined based upon a discounted cash flows model utilizing observable market rates and credit characteristics for similar debt instruments. In its analysis, the Company used characteristics that market participants generally use, and considered factors specific to (a) the liability, (b) the principal (or most advantageous) market for the liability, and (c) market participants with whom the reporting entity would transact in that market. For the year ended December 31, 2013, cash flows were discounted at a rate which incorporates a current market rate for similar-term debt instruments, adjusted for credit and liquidity risks associated with similar junior subordinated debt and circumstances unique to the Company. The Company believes that the subjective nature of theses inputs, due primarily to the current economic environment, require the junior subordinated debt to be classified as a Level 3 fair value. | ||||||||||||||||||||
Accrued Interest Receivable and Payable - The carrying value of these instruments is a reasonable estimate of fair value. | ||||||||||||||||||||
Off-balance sheet Instruments - Off-balance sheet instruments consist of commitments to extend credit, standby letters of credit and derivative contracts. The contract amounts of commitments to extend credit and standby letters of credit are disclosed in Note 12. Fair values of commitments to extend credit are estimated using the interest rate currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present counterparties’ credit standing. There was no material difference between the contractual amount and the estimated value of commitments to extend credit at December 31, 2013 and 2012. | ||||||||||||||||||||
Fair values of standby letters of credit are based on fees currently charged for similar agreements. The fair value of commitments generally approximates the fees received from the customer for issuing such commitments. These fees are not material to the Company’s consolidated balance sheet and results of operations. | ||||||||||||||||||||
The following tables provide a reconciliation of assets and liabilities at fair value using significant unobservable inputs (Level 3) on a recurring basis during the period (in 000’s): | ||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||
Reconciliation of Assets: | Private label | Private label | ||||||||||||||||||
residential | residential | |||||||||||||||||||
mortgage | mortgage | |||||||||||||||||||
obligations | obligations | |||||||||||||||||||
Beginning balance | $ | — | $ | 7,972 | ||||||||||||||||
Total gains or (losses) included in earnings (or other comprehensive loss) | — | (468 | ) | |||||||||||||||||
Transfers in and/or out of Level 3 | — | (7,504 | ) | |||||||||||||||||
Ending balance | $ | — | $ | — | ||||||||||||||||
The amount of total gains or (losses) for the period included in earnings (or other comprehensive loss) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date | $ | — | $ | — | ||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||
Reconciliation of Liabilities: | Junior | Junior | ||||||||||||||||||
Subordinated | Subordinated | |||||||||||||||||||
Debt | Debt | |||||||||||||||||||
Beginning balance | $ | 10,068 | $ | 9,027 | ||||||||||||||||
Total gains (losses) included in earnings (or changes in net assets) | 776 | 774 | ||||||||||||||||||
Transfers in and/or out of Level 3 | 281 | 267 | ||||||||||||||||||
Ending balance | $ | 11,125 | $ | 10,068 | ||||||||||||||||
The amount of total gains (losses) for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses and accrued interest relating to liabilities still held at the reporting date | $ | 776 | $ | 774 | ||||||||||||||||
The following table provides a description of the valuation technique, unobservable input, and qualitative information about the unobservable inputs for the Company’s liabilities classified as Level 3 and measured at fair value on a recurring basis at December 31, 2013 and 2012: | ||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||
Financial Instrument | Valuation Technique | Unobservable Input | Weighted Average | Financial Instrument | Valuation Technique | Unobservable Input | Weighted Average | |||||||||||||
Subordinated Debt | Discounted cash flow | Discount Rate | 8.19% | Subordinated Debt | Discounted cash flow | Discount Rate | 7.23% | |||||||||||||
Management believes that the credit risk adjusted spread utilized in the fair value measurement of the junior subordinated debentures carried at fair value is indicative of the nonperformance risk premium a willing market participant would require under current market conditions, that is, the inactive market. Management attributes the change in fair value of the junior subordinated debentures during the period to market changes in the nonperformance expectations and pricing of this type of debt, and not as a result of changes to our entity-specific credit risk. The narrowing of the credit risk adjusted spread above the Company’s contractual spreads has primarily contributed to the negative fair value adjustments. Generally, an increase in the credit risk adjusted spread and/or a decrease in the three month LIBOR swap curve will result in positive fair value adjustments (and decrease the fair value measurement). Conversely, a decrease in the credit risk adjusted spread and/or an increase in the three month LIBOR swap curve will result in negative fair value adjustments (and increase the fair value measurement). |
Regulatory_Matters
Regulatory Matters | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Banking and Thrift [Abstract] | ' | |||||||||||||||
Regulatory Matters | ' | |||||||||||||||
Regulatory Matters | ||||||||||||||||
Regulatory Agreement with the Federal Reserve Bank of San Francisco | ||||||||||||||||
Effective March 23, 2010, United Security Bancshares (the "Company") and its wholly owned subsidiary, United Security Bank (the "Bank"), entered into a written agreement (the “Agreement”) with the Federal Reserve Bank of San Francisco. Under the terms of the Agreement, the Company and the Bank agreed, among other things, to strengthen board oversight of management and the Bank's operations; submit an enhanced written plan to strengthen credit risk management practices and improve the Bank’s position on the past due loans, classified loans, and other real estate owned; maintain a sound process for determining, documenting, and recording an adequate allowance for loan and lease losses; improve the management of the Bank's liquidity position and funds management policies; maintain sufficient capital at the Company and Bank level; and improve the Bank’s earnings and overall condition. The Company and Bank have also agreed not to increase or guarantee any debt, purchase or redeem any shares of stock, declare or pay any cash dividends, or pay interest on the Company's junior subordinated debt or trust preferred securities, without prior written approval from the Federal Reserve Bank. The Company generates no revenue of its own and as such, relies on dividends from the Bank to pay its operating expenses and interest payments on the Company’s junior subordinated debt. The inability of the Bank to pay cash dividends to the Company may hinder the Holding Company’s ability to meet its ongoing operating obligations. | ||||||||||||||||
This Agreement entered into with the Federal Reserve Bank of San Francisco was a result of a regulatory examination that was conducted by the Federal Reserve and the California Department of Financial Institutions in June 2009 (“Report of Examination”). The Agreement was the result of significant increases in nonperforming assets, both classified loans and OREO, during 2008 and 2009 increasing the overall risk profile of the Bank. The increased risk profile of the Bank included heightened concerns about the Bank’s use of brokered and other wholesale funding sources which had been used to fund loan growth and reduce the Company’s overall cost of interest bearing liabilities. With loan growth funded to some degree by wholesale funding sources, liquidity risk increased, and higher levels of nonperforming assets increased risk to equity capital and potential volatility in earnings. | ||||||||||||||||
Regulatory Order from the California Department of Business Oversight | ||||||||||||||||
• | During May of 2010, the California Department of Business Oversight (formerly known as the California Department of Financial Institutions) issued a written order (the “Order”) pursuant to section 1913 of the California Financial Code to the Bank as a result of a regulatory examination that was conducted by the Federal Reserve and the California Department of Business Oversight in June 2009. The Order issued by the California Department of Business Oversight was similar to the agreement with the Federal Reserve Bank of San Francisco, except for certain additional requirements. | |||||||||||||||
• | On September 24, 2013, the Bank entered into a Memorandum of Understanding (the “MOU”) with the California Department of Business Oversight (formerly known as the California Department of Financial Institutions). Effective October 15, 2013, the California Department of Business Oversight terminated the Order issued in May 2010. One additional requirement is that the Bank must maintain a ratio of tangible shareholders’ equity to total tangible assets equal to or greater than 9.0%. | |||||||||||||||
As of December 31, 2013, the Bank is compliance with the requirements of the Agreement and the MOU including its deadlines. | ||||||||||||||||
Capital Adequacy - The Company (on a consolidated basis) and the Bank are subject to various regulatory capital requirements adopted by the Board of Governors of the Federal Reserve System (“Board of Governors”). Failure to meet minimum capital requirements can initiate certain mandates and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the consolidated Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies. | ||||||||||||||||
Pursuant to the March 2010 Agreement with the Federal Reserve Bank, the Company and the Bank are required to maintain sufficient capital to support current and future capital needs, including compliance with Capital Adequacy Guidelines taking into account the volume of classified assets, concentrations of credit, the level of the allowance for loan losses, current and projected growth, and projected retained earnings. Pursuant to the MOU issued by the California Department of Business Oversight in October 2013, the Bank is required to maintain a ratio of tangible shareholders’ equity to total tangible assets equal to or greater than 9.0%. For purposes of the MOU, “tangible shareholders’ equity” is defined as shareholders’ equity minus intangible assets. The Bank’s ratio of tangible shareholders’ equity to total tangible assets was 13.2% and 11.7% at December 31, 2013 and 2012, respectively. | ||||||||||||||||
As part of the March 2010 Agreement, the Company has written, and submitted to the Federal Reserve Bank, a capital plan that includes guidelines and trigger points to ensure sufficient capital is maintained at the Bank and the Company, and that capital ratios are maintained at a level deemed appropriate under regulatory guidelines given the level of classified assets, concentrations of credit, ALLL, current and projected growth, and projected retained earnings. The capital plan also contains contingency strategies to obtain additional capital as required to fulfill future capital requirements for both the Bank as a separate legal entity, and the Company on a consolidated basis. The capital plan also addresses the requirement of both the Bank and the Company to comply with the Federal Banks’ Capital Adequacy Guidelines, and contingency plans to ensure the maintenance of adequate capital levels under those guidelines. | ||||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy require insured institutions to maintain a minimum leverage ratio of Tier 1 capital (the sum of common stockholders' equity, noncumulative perpetual preferred stock and minority interests in consolidated subsidiaries, minus intangible assets, identified losses and investments in certain subsidiaries, plus unrealized losses or minus unrealized gains on available for sale securities) to total assets. Institutions which have received the highest composite regulatory rating and which are not experiencing or anticipating significant growth are required to maintain a minimum leverage capital ratio of 3% of Tier 1 capital to total assets. All other institutions are required to maintain a minimum leverage capital ratio of at least 100 to 200 basis points above the 3% minimum requirement. | ||||||||||||||||
To Be Well Capitalized Under | ||||||||||||||||
Actual | For Capital | Prompt Corrective | ||||||||||||||
Adequacy Purposes | Action Provisions | |||||||||||||||
(In thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||
As of December 31, 2013 (Company): | ||||||||||||||||
Total Capital (to Risk Weighted Assets) | $ | 77,530 | 17.2 | % | $ | 36,061 | 8 | % | N/A | N/A | ||||||
Tier 1 Capital (to Risk Weighted Assets) | 71,827 | 15.93 | % | 18,031 | 4 | % | N/A | N/A | ||||||||
Tier 1 Capital (to Average Assets) | 71,827 | 11.19 | % | 25,672 | 4 | % | N/A | N/A | ||||||||
As of December 31, 2013 (Bank): | ||||||||||||||||
Total Capital (to Risk Weighted Assets) | $ | 78,499 | 17.41 | % | $ | 36,061 | 8 | % | $ | 45,077 | 10 | % | ||||
Tier 1 Capital (to Risk Weighted Assets) | 72,796 | 16.15 | % | 18,031 | 4 | % | 27,046 | 6 | % | |||||||
Tier 1 Capital (to Average Assets) | 72,796 | 11.43 | % | 25,484 | 4 | % | 31,855 | 5 | % | |||||||
As of December 31, 2012 - (Company): | ||||||||||||||||
Total Capital (to Risk Weighted Assets) | $ | 71,436 | 15.49 | % | $ | 36,892 | 8 | % | N/A | N/A | ||||||
Tier 1 Capital (to Risk Weighted Assets) | 65,742 | 14.26 | % | 18,446 | 4 | % | N/A | N/A | ||||||||
Tier 1 Capital (to Average Assets) | 65,742 | 10.66 | % | 24,671 | 4 | % | N/A | N/A | ||||||||
As of December 31, 2012 – (Bank): | ||||||||||||||||
Total Capital (to Risk Weighted Assets) | $ | 73,296 | 15.77 | % | $ | 37,175 | 8 | % | $ | 46,468 | 10 | % | ||||
Tier 1 Capital (to Risk Weighted Assets) | 67,558 | 14.54 | % | 18,587 | 4 | % | 27,168 | 6 | % | |||||||
Tier 1 Capital (to Average Assets) | 67,558 | 10.95 | % | 24,671 | 4 | % | 30,838 | 5 | % | |||||||
The Board of Governors has also adopted a statement of policy, supplementing its leverage capital ratio requirements, which provides definitions of qualifying total capital (consisting of Tier 1 capital and Tier 2 supplementary capital, including the allowance for loan losses up to a maximum of 1.25% of risk-weighted assets) and sets forth minimum risk-based capital ratios of capital to risk-weighted assets. Insured institutions are required to maintain a ratio of qualifying total capital to risk weighted assets of 8%, at least one-half of which must be in the form of Tier 1 capital. | ||||||||||||||||
Under the regulatory Prompt Corrective Action Provisions within the Agreement and the MOU, the Bank cannot be considered “Well Capitalized”. However, as of December 31, 2013, the Company and the Bank meets all capital adequacy requirements to which they are subject. | ||||||||||||||||
Under regulatory guidelines, the $15 million in Trust Preferred Securities issued by USB Capital Trust II in July of 2007 qualifies as Tier 1 capital up to 25% of Tier 1 capital. Any additional portion of Trust Preferred Securities qualifies as Tier 2 capital. | ||||||||||||||||
Dividends – Cash dividends, if any, paid to shareholders are paid by the bank holding company, subject to restrictions set forth in the California General Corporation Law. All dividends paid during 2013 and 2012 were in the form of stock dividends rather than cash dividends. | ||||||||||||||||
The primary source of funds with which cash dividends are paid to shareholders comes from cash dividends received by the Company from the Bank. The Company received no cash dividends from the Bank during the years ended December 31, 2013 and 2012. | ||||||||||||||||
Under California state banking law, the Bank may not pay cash dividends in an amount which exceeds the lesser of the retained earnings of the Bank or the Bank’s net income for the last three fiscal years (less the amount of distributions to shareholders during that period of time). If the above test is not met, cash dividends may only be paid with the prior approval of the California Department of Business Oversight, in an amount not exceeding the greater of: (i) the Bank’s retained earnings; (ii) its net income for the last fiscal year; or (iii) its net income for the current fiscal year. As noted above, the terms of the regulatory agreement with the Federal Reserve prohibit both the Company and the Bank from paying dividends without prior approval of the Federal Reserve. | ||||||||||||||||
Cash Restrictions - The Bank is required to maintain average reserve balances with the Federal Reserve Bank. In prior years, the Company implemented a deposit reclassification program, which allows the Company to reclassify a portion of transaction accounts to non-transaction accounts for reserve purposes. The deposit reclassification program was provided by a third-party vendor, and has been approved by the Federal Reserve Bank. |
Supplemental_Cash_Flow_Disclos
Supplemental Cash Flow Disclosures | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Supplemental Cash Flow Information [Abstract] | ' | |||||||
Supplemental Cash Flow Disclosures | ' | |||||||
Supplemental Cash Flow Disclosures | ||||||||
Year Ended December 31, | ||||||||
(In thousands) | 2013 | 2012 | ||||||
Cash paid (received) during the period for: | ||||||||
Interest | $ | 1,356 | $ | 2,101 | ||||
Income Taxes | (3,679 | ) | (89 | ) | ||||
Noncash investing activities: | ||||||||
Loans transferred to foreclosed property | 437 | 1,999 | ||||||
Financed OREO | 2,328 | 508 | ||||||
Extinguishment of Note Payable | — | 83 | ||||||
Common_Stock_Dividend
Common Stock Dividend | 12 Months Ended |
Dec. 31, 2013 | |
Common Stock Dividend [Abstract] | ' |
Common Stock Dividend | ' |
Common Stock Dividend | |
The Company declared one-percent (1)% common stock dividends during each of the four quarters ended December 31, 2013, September 30, 2013, June 30, 2013, and March 31, 2013. All 1% stock dividends were considered “small stock dividends” resulting in a transfer between retained earnings and common stock an amount equal to the number of shares issued in the stock dividend multiplied by the stock’s closing price at the date of declaration. Other than for earnings-per-share calculations, shares issued for the stock dividend have been treated prospectively for financial reporting purposes. For purposes of earnings per share calculations, the Company’s weighted average shares outstanding and potentially dilutive shares used in the computation of earnings per share have been restated after giving retroactive effect to a 1% stock dividend to shareholders for all periods presented. | |
The Company declared one-percent (1)% common stock dividends during each of the four quarters ended December 31, 2012, September 30, 2012, June 30, 2012, and March 31, 2012. All 1% stock dividends were considered “small stock dividends” resulting in a transfer between retained earnings and common stock an amount equal to the number of shares issued in the stock dividend multiplied by the stock’s closing price at the date of declaration. Other than for earnings-per-share calculations, shares issued for the stock dividend have been treated prospectively for financial reporting purposes. For purposes of earnings per share calculations, the Company’s weighted average shares outstanding and potentially dilutive shares used in the computation of earnings per share have been restated after giving retroactive effect to a 1% stock dividend to shareholders for all periods presented. |
Net_Income_Per_Share
Net Income Per Share | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Net Income Per Share | ' | |||||||
Net Income Per Share | ||||||||
The following table provides a reconciliation of the numerator and the denominator of the basic EPS computation with the numerator and the denominator of the diluted EPS computation. (Weighted average shares have been adjusted to give retroactive recognition for the 1% stock dividend for each of the quarters since the third quarter ended September 30, 2008): | ||||||||
Year Ended December 31, | ||||||||
(In thousands, except earnings per share data) | 2013 | 2012 | ||||||
Net income available to common shareholders | $ | 7,269 | $ | 6,069 | ||||
Weighted average shares outstanding | 14,798,135 | 14,789,001 | ||||||
Add: dilutive effect of stock options | 902 | — | ||||||
Weighted average shares outstanding adjusted for potential dilution | 14,799,037 | 14,789,001 | ||||||
Basic earnings per share | $ | 0.49 | $ | 0.41 | ||||
Diluted earnings per share | $ | 0.49 | $ | 0.41 | ||||
Anti-dilutive shares excluded from earnings per share calculation | 189,000 | 192,000 | ||||||
Common_Stock_Repurchase_Plan
Common Stock Repurchase Plan | 12 Months Ended |
Dec. 31, 2013 | |
Common Stock Repurchase Plan [Abstract] | ' |
Common Stock Repurchase Plan | ' |
Common Stock Repurchase Plan | |
On May 16, 2007, the Company’s Board of Directors approved a plan to repurchase, as conditions warrant, up to 750,895 shares of the Company's common stock on the open market or in privately negotiated transactions. The repurchase plan represents approximately 5.00% of the Company's currently outstanding common stock. The duration of the program is open-ended and the timing of purchases will depend on market conditions. As of December 31, 2013, there were 650,106 shares available for repurchase. | |
As a condition of the Written Agreement entered into with the Federal Reserve Bank of San Francisco (FRB) on May 23, 2010, and the MOU entered into with the California Department of Business Oversight (DBO) on September 24, 2013, the Company may not repurchase any of its common stock without prior approval of the FRB and the DBO. The Company did not repurchase any common shares during the years ended December 31, 2013 and 2012. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Goodwill and Intangible Assets | ' | |||||||
Goodwill and Intangible Assets | ||||||||
At December 31, 2013, the Company had $4,488,000 of goodwill and $62,000 of core deposit intangibles. The following table summarizes the carrying value of those assets at December 31, 2013 and 2012. | ||||||||
(In thousands) | December 31, 2013 | December 31, 2012 | ||||||
Goodwill | $ | 4,488 | $ | 4,488 | ||||
Core deposit intangible assets | 62 | 249 | ||||||
Total goodwill and intangible assets | $ | 4,550 | $ | 4,737 | ||||
Core deposit intangibles and other identified intangible assets are amortized over their useful lives, while goodwill is not amortized. The Company conducts periodic impairment analysis on goodwill and intangible assets and goodwill at least annually or more often as conditions require. The following table summarizes the amortization expense and impairment losses recorded on the Company’s intangible assets and goodwill for the years ended December 31, 2013 and 2012. | ||||||||
(In thousands) | December 31, 2013 | December 31, 2012 | ||||||
Amortization expense - core deposit intangibles | $ | 187 | $ | 198 | ||||
Amortization expense - other intangibles | — | 106 | ||||||
Total amortization expense | $ | 187 | $ | 304 | ||||
Impairment losses - core deposit intangibles | $ | — | $ | — | ||||
Impairment losses - goodwill | — | — | ||||||
Total impairment losses | $ | — | $ | — | ||||
Goodwill: The largest component of goodwill is related to the Legacy merger (Campbell reporting unit) completed during February 2007 and totaled approximately $2.9 million at December 31, 2013. The Company conducted its annual impairment testing of the goodwill related to the Campbell reporting unit effective March 31, 2013. Impairment testing for goodwill is a two-step process. | ||||||||
The first step in impairment testing is to identify potential impairment, which involves determining and comparing the fair value of the operating unit with its carrying value. If the fair value of the reporting unit exceeds its carrying value, goodwill is not impaired. If the carrying value exceeds fair value, there is an indication of possible impairment and the second step is performed to determine the amount of the impairment, if any. The fair value determined in the step one testing is determined based on a discounted cash flow methodology using estimated market discount rates and projections of future cash flows for the Campbell reporting unit. In addition to projected cash flows, the Company also utilizes other market metrics including industry multiples of earnings and price-to-book ratios to estimate what a market participant would pay for the operating unit in the current business environment. Determining the fair value involves a significant amount of judgment, including estimates of changes in revenue growth, changes is discount rates, competitive forces within the industry, and other specific industry and market valuation conditions. If at the conclusion of the step 1 analysis, the Company concludes that the potential for goodwill impairment exists, step-two testing will be required to determine goodwill impairment and the amount of goodwill that might be impaired, if any. The second step in impairment analysis compares the fair value of the Campbell reporting unit to the aggregate fair values of its individual assets, liabilities and identified intangibles. Based on the results of the first step of the impairment analysis at December 31, 2013, the Company concluded that that the fair value of the reporting unit exceeds it carrying value; therefore, goodwill was not impaired. | ||||||||
Core Deposit Intangibles: The core deposit intangible asset, which totaled $3.0 million at the time of merger, is being amortized over an estimated life of approximately seven years. The Company recognized no amortization expense related to the Legacy operating unit during the year ended December 31, 2013. At December 31, 2013, there was no remaining carrying value of the core deposit intangible related to the Legacy Bank merger. At December 31, 2013 and December 31, 2013, there was $62,000 and $249,000, respectively, in remaining carrying value of core deposit intangible related to the Taft branch acquisitions completed in April, 2004. |
Parent_Company_Only_Financial_
Parent Company Only Financial Statements | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | |||||||
Parent Company Only Financial Statements | ' | |||||||
Parent Company Only Financial Statements | ||||||||
The following are the condensed financial statements of United Security Bancshares and should be read in conjunction with the consolidated financial statements: | ||||||||
United Security Bancshares – (parent only) | ||||||||
Balance Sheets - December 31, 2013 and 2012. | ||||||||
(In thousands) | 2013 | 2012 | ||||||
Assets | ||||||||
Cash and equivalents | $ | 66 | $ | 296 | ||||
Investment in bank subsidiary | 87,775 | 79,969 | ||||||
Other assets | 2,298 | 562 | ||||||
Total assets | 90,139 | 80,827 | ||||||
Liabilities & Shareholders' Equity | ||||||||
Liabilities: | ||||||||
Junior subordinated debt securities (at fair value) | 11,125 | 10,068 | ||||||
Deferred taxes | 2,471 | 1,239 | ||||||
Other liabilities | — | 79 | ||||||
Total liabilities | 13,596 | 11,386 | ||||||
Shareholders' Equity: | ||||||||
Common stock, no par value 20,000,000 shares authorized, 14,799,888 and 14,217,303 issued and outstanding, in 2013 and 2012 | 45,778 | 43,173 | ||||||
Retained earnings | 30,884 | 26,179 | ||||||
Accumulated other comprehensive (loss) income | (119 | ) | 89 | |||||
Total shareholders' equity | 76,543 | 69,441 | ||||||
Total liabilities and shareholders' equity | $ | 90,139 | $ | 80,827 | ||||
United Security Bancshares – (parent only) | Year ended December 31, | |||||||
Income Statements | ||||||||
(In thousands) | 2013 | 2012 | ||||||
Income | ||||||||
Loss on fair value option of financial assets | $ | (776 | ) | $ | (774 | ) | ||
Total (loss) income | (776 | ) | (774 | ) | ||||
Expense | ||||||||
Interest expense | 281 | 270 | ||||||
Other expense | 159 | 201 | ||||||
Total expense | 440 | 471 | ||||||
(Loss) Income before taxes and equity in undistributed income of subsidiary | (1,216 | ) | (1,245 | ) | ||||
Income tax benefit | (500 | ) | (512 | ) | ||||
Undistributed income of subsidiary | 7,985 | 6,802 | ||||||
Net Income | $ | 7,269 | $ | 6,069 | ||||
United Security Bancshares – (parent only) | Year ended December 31, | |||||||
Statement of Cash Flows | ||||||||
(In thousands) | 2013 | 2012 | ||||||
Cash Flows From Operating Activities | ||||||||
Net income (loss) | $ | 7,269 | $ | 6,069 | ||||
Adjustments to reconcile net income (loss) to cash provided by operating activities: | ||||||||
Equity in undistributed income of subsidiary | (7,985 | ) | (6,802 | ) | ||||
Deferred taxes | 1,232 | (376 | ) | |||||
Write-down of other investments | — | 68 | ||||||
Loss on fair value option of financial liability | 776 | 774 | ||||||
Increase in income tax receivable | (1,732 | ) | — | |||||
Net change in other assets/liabilities | 198 | 243 | ||||||
Net cash (used in) operating activities | (242 | ) | (24 | ) | ||||
Cash Flows From Investing Activities | ||||||||
Investment in bank stock | — | 9 | ||||||
Net cash provided by investing activities | — | 9 | ||||||
Cash Flows From Financing Activities | ||||||||
Proceeds from exercise of stock options | 12 | — | ||||||
Proceeds from sale investment in bank stock | — | 295 | ||||||
Net cash provided by financing activities | 12 | 295 | ||||||
Net increase (decrease) in cash and cash equivalents | (230 | ) | 280 | |||||
Cash and cash equivalents at beginning of year | 296 | 16 | ||||||
Cash and cash equivalents at end of year | $ | 66 | $ | 296 | ||||
Supplemental cash flow disclosures | ||||||||
Non-cash financing activities: | ||||||||
Dividends declared not paid | $ | — | $ | — | ||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Nonrecognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. Management has reviewed events occurring through the date the financial statements were issued and no subsequent events occurred requiring accrual or disclosure. |
Organization_and_Summary_of_Si1
Organization and Summary of Significant Accounting and Reporting Policies (Policies) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Organization and Summary of Significant Accounting and Reporting Policies [Abstract] | ' | |||
Basis of Presentation | ' | |||
Basis of Presentation – The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States and with prevailing practices within the banking industry. The consolidated financial statements include the accounts of United Security Bancshares, and its wholly owned subsidiary, United Security Bank and subsidiary (the “Bank”). United Security Bancshares Capital Trust II (the “Trust”) is deconsolidated pursuant to ASC 810. As a result, the Trust Preferred Securities are not presented on the Company’s consolidated financial statements as equity, but instead the Company’s Subordinated Debentures are presented as a separate liability category. (see Note 8 to the Company’s consolidated financial statements). Intercompany accounts and transactions have been eliminated in consolidation. In the following notes, references to the Bank are references to United Security Bank. References to the Company are references to United Security Bancshares, (including the Bank). United Security Bancshares operates as one business segment providing banking services to commercial establishments and individuals primarily in the San Joaquin Valley of California. | ||||
Nature of Operations | ' | |||
Nature of Operations – United Security Bancshares is a bank holding company, incorporated in the state of California for the purpose of acquiring all the capital stock of the Bank through a holding company reorganization (the “Reorganization”) of the Bank. The Reorganization, which was accounted for in a manner similar to a pooling of interests, was completed on June 12, 2001. Management believes the Reorganization has provided the Company greater operating and financial flexibility and has permitted expansion into a broader range of financial services and other business activities. | ||||
During July 2007 the Company formed United Security Bancshares Capital Trust II and issued $15.0 million in Trust Preferred Securities with terms similar to those originally issued under USB Capital Trust I. (See Note 8. “Junior Subordinated Debt/Trust Preferred Securities”). | ||||
USB Investment Trust Inc was incorporated effective December 31, 2001, as a special purpose real estate investment trust (“REIT”) under Maryland law. The REIT is a subsidiary of the Bank and was funded with $133.0 million in real estate-secured loans contributed by the Bank. USB Investment Trust was originally formed to give the Bank flexibility in raising capital, and reduce the expenses associated with holding the assets contributed to USB Investment Trust. | ||||
The Bank was founded in 1987 and currently operates eleven branches and one construction lending office in an area from eastern Madera County to western Fresno County, as well as Taft and Bakersfield in Kern County, and Campbell in Santa Clara County. The Bank also operates one financial services department located in Fresno, California. The Bank’s primary source of revenue is interest income through providing loans to customers, who are predominantly small and middle-market businesses and individuals. The Bank engages in a full compliment of lending activities, including real estate mortgage, commercial and industrial, real estate construction, agricultural and consumer loans, with particular emphasis on short and medium term obligations. | ||||
The Bank offers a wide range of deposit instruments. These include personal and business checking accounts and savings accounts, interest-bearing negotiable order of withdrawal ("NOW") accounts, money market accounts and time certificates of deposit. Most of the Bank's deposits are attracted from individuals and from small and medium-sized business-related sources. | ||||
The Bank also offers a wide range of specialized services designed to attract and service the needs of commercial customers and account holders. These services include cashiers checks, travelers checks, money orders, and foreign drafts. In addition, the Bank offers Internet banking services to its commercial and retail customers, and offers certain financial and wealth management services through its financial services department. The Bank does not operate a trust department, however it makes arrangements with its correspondent bank to offer trust services to its customers upon request. | ||||
Use of Estimates in the Preparation of Financial Statements | ' | |||
Use of Estimates in the Preparation of Financial Statements - 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, relate to the determination of the allowance for loan losses, determination of goodwill, fair value of junior subordinated debt and certain collateralized mortgage obligations, and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. | ||||
Subsequent events | ' | |||
Subsequent events—The Company has evaluated events and transactions for potential recognition or disclosure through the day the financial statements were issued. | ||||
Significant Accounting Policies | ' | |||
Significant Accounting Policies - The Company follows accounting standards set by the Financial Accounting Standards Board, commonly referred to as the “FASB”. The FASB sets generally accepted accounting principles (GAAP) that the Company follows to ensure the consistent reporting of its consolidated financial condition, consolidated results of operations, and consolidated cash flows. References to GAAP issued by the FASB in these footnotes are to the FASB Accounting Standards Codification, sometimes referred to as the Codification or ASC. The following is a summary of significant policies: | ||||
Cash and cash equivalents | ' | |||
Cash and cash equivalents – Cash and cash equivalents include cash on hand, amounts due from banks, federal funds sold and repurchase agreements. At times throughout the year, balances can exceed FDIC insurance limits. Generally, federal funds sold and repurchase agreements are sold for one-day periods. The Bank did not have any repurchase agreements during 2013 or 2012, or at December 31, 2013 and 2012. All cash and cash equivalents have maturities when purchased of three months or less. | ||||
Securities | ' | |||
Securities - Debt and equity securities classified as available for sale are reported at fair value, with unrealized gains and losses excluded from net income and reported, net of tax, as a separate component of comprehensive income and shareholders’ equity. Debt securities classified as held to maturity are carried at amortized cost. Gains and losses on disposition are reported using the specific identification method for the adjusted basis of the securities sold. Premiums and discounts are recognized in interest income using the interest method over the period to maturity. | ||||
The Company classifies its securities as available for sale or held to maturity, and periodically reviews its investment portfolio on an individual security basis. Securities that are to be held for indefinite periods of time (including, but not limited to, those that management intends to use as part of its asset/liability management strategy, those which may be sold in response to changes in interest rates, changes in prepayments or any such other factors) are classified as securities available for sale. Securities which the Company has the ability and intent to hold to maturity are classified as held to maturity. | ||||
Investments with fair values that are less than amortized cost are considered impaired. Impairment may result from either a decline in the financial condition of the issuing entity or, in the case of fixed interest rate investments, from rising interest rates. At each financial statement date, management assesses each investment to determine if impaired investments are temporarily impaired or if the impairment is other-than-temporary based upon the positive and negative evidence available. Evidence evaluated includes, but is not limited to, industry analyst reports, credit market conditions, and interest rate trends. If negative evidence outweighs positive evidence that the carrying amount is recoverable within a reasonable period of time, the impairment is deemed to be other-than-temporary and the debt security is written down by the amount related to credit losses in the period in which such determination is made, or written down to fair value if the debt security is more than likely to be sold. | ||||
Loans | ' | |||
Loans - Interest income on loans is credited to income as earned and is calculated by using the simple interest method on the daily balance of the principal amounts outstanding. Loans are placed on non-accrual status when principal or interest is past due for 90 days and/or when management believes the collection of amounts due is doubtful. For loans placed on nonaccrual status, the accrued and unpaid interest receivable may be reversed at management's discretion based upon management's assessment of collectibility, and interest is thereafter credited to principal to the extent necessary to eliminate doubt as to the collectibility of the net carrying amount of the loan. | ||||
Nonrefundable fees and related direct costs associated with the origination or purchase of loans are deferred and netted against outstanding loan balances. The net deferred fees and costs are generally amortized into interest income over the loan term using the interest method. Other credit-related fees, such as standby letter of credit fees, loan placement fees and annual credit card fees are recognized as noninterest income during the period the related service is performed. | ||||
Allowance for Credit Losses and Reserve for Unfunded Loan Commitments | ' | |||
Allowance for Credit Losses and Reserve for Unfunded Loan Commitments - The allowance for credit losses is maintained to provide for losses that can reasonably be anticipated. The allowance is based on ongoing quarterly assessments of the probable losses inherent in the loan portfolio, and to a lesser extent, unfunded loan commitments. The reserve for unfunded loan commitments is a liability on the Company’s consolidated financial statements and is included in other liabilities. The liability is computed using a methodology similar to that used to determine the allowance for credit losses, modified to take into account the probability of a drawdown on the commitment. | ||||
The allowance for credit losses is increased by provisions charged to operations during the current period and reduced by negative provisions and loan charge-offs, net of recoveries. Loans are charged against the allowance when management believes that the collection of the principal is unlikely. The allowance is an amount that management believes will be adequate to absorb losses inherent in existing loans, based on evaluations of the probability of collection. In evaluating the probability of collection, management is required to make estimates and assumptions that affect the reported amounts of loans, allowance for credit losses and the provision for credit losses charged to operations. Actual results could differ significantly from those estimates. These evaluations take into consideration such factors as the composition of the portfolio, overall portfolio quality, loan concentrations, specific problem loans, and current economic conditions that may affect the borrowers' ability to pay. The Company’s methodology for assessing the adequacy of the allowance for credit losses consists of several key elements, which include the formula allowance, specific allowances, and the unallocated allowance. | ||||
The formula allowance is calculated by applying loss factors to outstanding loans and certain unfunded loan commitments. Loss factors are based on the Company’s historical loss experience and may be adjusted for significant factors that, in management's judgment, affect the collectibility of the portfolio as of the evaluation date. The Company determines the loss factors for problem-graded loans (substandard, doubtful, and loss), special mention loans, and pass graded loans, based on a loss migration model. In performing the periodic migration analysis, management believes that historical loss factors used in the computation of the formula allowance need to be adjusted to reflect current changes in market conditions and trends in the Company’s loan portfolio. There are a number of other factors which are reviewed when determining adjustments in the historical loss factors. Those factors include 1) trends in delinquent and nonaccrual loans, 2) trends in loan volume and terms, 3) effects of changes in lending policies, 4) concentrations of credit, 5) competition, 6) national and local economic trends and conditions, 7) experience of lending staff, 8) loan review and Board of Directors oversight, 9) high balance loan concentrations, and 10) other business conditions. For purposes of this analysis, loans are grouped by internal risk classifications, which are “pass”, “special mention”, “substandard”, “doubtful”, and “loss”. Certain loans are homogeneous in nature and are therefore pooled by risk grade. These homogeneous loans include consumer installment and home equity loans. | ||||
Specific allowances are established based on management’s periodic evaluation of loss exposure inherent in impaired loans. For impaired loans, specific allowances are determined based on the collateralized value of the underlying properties, the net present value of the anticipated cash flows, or the market value of the underlying assets. | ||||
A loan is considered impaired when management determines that it is probable that the Company will be unable to collect all amounts due according to the original contractual terms of the loan agreement. Impairment is measured by the difference between the original recorded investment in the loan and the estimated present value of the total expected future cash flows, discounted at the loan’s effective rate, or the fair value of the collateral, less estimated selling costs, if the loan is collateral dependent. | ||||
The unallocated portion of the allowance is based upon management’s evaluation of various conditions that are not directly measured in the determination of the formula and specific allowances. The conditions may include, but are not limited to, general economic and business conditions affecting the key lending areas of the Company, credit quality trends, collateral values, loan volumes and concentrations, and other business conditions. | ||||
Premises and Equipment | ' | |||
Premises and Equipment - Premises and equipment are carried at cost less accumulated depreciation. Depreciation expense is computed principally on the straight-line method over the estimated useful lives of the assets. Estimated useful lives are as follows: | ||||
Buildings | 31 years | Furniture and equipment | 3-7 Years | |
Other Real Estate Owned | ' | |||
Other Real Estate Owned - Real estate properties acquired through, or in lieu of, loan foreclosure are to be sold and are initially recorded at fair value of the property, less estimated costs to sell. The excess, if any, of the loan amount over the fair value is charged to the allowance for credit losses. Subsequent declines in the fair value of other real estate owned, along with related revenue and expenses from operations, are charged to noninterest expense. | ||||
Intangible Assets and Goodwill | ' | |||
Intangible Assets and Goodwill - Intangible assets are comprised of core deposit intangibles, other specific identifiable intangibles, and goodwill acquired in branch acquisitions where the consideration given exceeded the fair value of the net assets acquired. Intangible assets and goodwill are reviewed at least annually for impairment. Core deposit intangibles of $62,000 and $249,000 (net of accumulated amortization and impairment losses of $6,934,000 and $6,747,000) at December 31, 2013 and 2012, respectively, are amortized over the estimated useful lives of the existing deposit bases (average of 7 years) using a method which approximates the interest method. During 2013 and 2012, the Company recognized $0 impairment losses on the core deposit intangible related to the deposits purchased in the Legacy merger consummated during February 2007. | ||||
The estimated aggregate amortization expense related to intangible assets for each of the five succeeding years is as follows (in 000’s): | ||||
Amortization | ||||
Year | expense | |||
2014 | 62 | |||
Total | $ | 62 | ||
Goodwill amounts resulting from the acquisitions of Taft National Bank during April 2004, and Legacy Bank during February 2007 are considered to have an indefinite life and are not amortized. At December 31, 2013, goodwill related to Taft National Bank totaled $1.6 million, and goodwill related to Legacy Bank totaled $2.9 million. Impairment testing of goodwill is performed at the reporting level during April of each year for Taft, and during March of each year for Legacy. During 2013 and 2012, the Company did not recognize impairment adjustments on the goodwill related to the Legacy or Taft Bank mergers (see Note 19 to the Company’s consolidated financial statements contained herein for details of the goodwill impairment.) | ||||
Income Taxes | ' | |||
Income Taxes - Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Company's assets and liabilities using the liability method, and are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. | ||||
Net Income per Share | ' | |||
Net Income per Share - Basic income (loss) per common share is computed based on the weighted average number of common shares outstanding. Diluted income (loss) per share includes the effect of stock options and other potentially dilutive securities using the treasury stock method to the extent they have a dilutive impact. Net income (loss) per share has been retroactively adjusted for all stock dividends declared. | ||||
Cash Flow Reporting | ' | |||
Cash Flow Reporting - For purposes of reporting cash flows, cash and cash equivalents include cash on hand, noninterest-bearing amounts due from banks, federal funds sold and securities purchased under agreements to resell. Federal funds and securities purchased under agreements to resell are generally sold for one-day periods. | ||||
Transfers of Financial Assets | ' | |||
Transfers of Financial Assets - Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. | ||||
Advertising Costs | ' | |||
Advertising Costs - The Company expenses marketing costs as they are incurred. | ||||
Stock Based Compensation | ' | |||
Stock Based Compensation - The Company has a stock-based employee compensation plan, which is described more fully in Note 10. The Company accounts for all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on the grant-date fair value of the award. The fair value is amortized over the requisite service period (generally the vesting period). Included in salaries and employee benefits for the years ended December 31, 2013 and 2012 is $29,000, and $18,000, respectively, of share-based compensation. The related tax benefit, recorded in the provision for income taxes, was not significant. All share data contained within the financial statements has been retroactively restated for stock based transactions (i.e. stock splits and stock dividends.) | ||||
Federal Home Loan Bank stock and Federal Reserve Stock | ' | |||
Federal Home Loan Bank stock and Federal Reserve Stock - As a member of the Federal Home Loan Bank (FHLB), the Company is required to maintain an investment in capital stock of the FHLB. In addition, as a member of the Federal Reserve Bank (FRB), the Company is required to maintain an investment in capital stock of the FRB. The investments in both the FHLB and the FRB are carried at cost, which approximates their fair value, in the accompanying consolidated balance sheets under other assets and are subject to certain redemption requirements by the FHLB and FRB. Stock redemptions are at the discretion of the FHLB and FRB. | ||||
While technically these are considered equity securities, there is no market for the FHLB or FRB stock. Therefore, the shares are considered as restricted investment securities. Management periodically evaluates the stock for other-than-temporary impairment. Management’s determination of whether these investments are impaired is based on its assessment of the ultimate recoverability of cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of cost is influenced by criteria such as (1) the significance of any decline in net assets of the FHLB or FRB as compared to the capital stock amount of the FHLB or FRB and the length of time this situation has persisted, (2) commitments by the FHLB or FRB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB or FRB, (3) the impact of legislative and regulatory changes on institutions and, accordingly, the customer base of the FHLB or FRB, and (4) the liquidity position of the FHLB or FRB. | ||||
Comprehensive Income | ' | |||
Comprehensive Income - Comprehensive income is comprised of net income and other comprehensive income. Other comprehensive income includes items recorded directly to equity, such as unrealized gains and losses on securities available-for-sale, unrecognized costs of salary continuation defined benefit plans. Comprehensive income is presented in the consolidated statement of Comprehensive Income. | ||||
Segment Reporting | ' | |||
Segment Reporting - The Company's operations are solely in the financial services industry and include providing to its customers traditional banking and other financial services. The Company operates primarily in the San Joaquin Valley region of California. Management makes operating decisions and assesses performance based on an ongoing review of the Company's consolidated financial results. Therefore, the Company has a single operating segment for financial reporting purposes. | ||||
New Accounting Standards | ' | |||
New Accounting Standards: | ||||
In February 2013, The Financial Accounting Standards Board (FASB) today issued Accounting Standards Update No. 2013-2, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, to improve the transparency of reporting reclassifications out of accumulated other comprehensive income. ASU 2013-2 requires an organization to present (either on the face of the statement where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income–but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. The amendments are effective for reporting periods beginning after December 15, 2012. The Company does not expect that this ASU will have a material impact on its financial statements. | ||||
In January 2013, the FASB issued ASU No. 2013-01 Balance Sheet (Topic 210) Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, which clarifies that ordinary trade receivables and receivables are not in the scope of ASU 2011-11. It further clarifies that the scope of ASU No. 2011-11 applies to derivatives, repurchase agreements and reverse purchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with specific criteria contained in FASB Accounting Standards Codification® or subject to a master netting arrangement or similar agreement. Both ASU 2011-11 and ASU 2013-1 are effective for annual periods beginning on or after January 1, 2013, and interim periods within those annual periods. The Company adopted these ASUs during the first quarter of 2013 and they did not have a material impact on its financial statements. | ||||
In December 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2011-11 Balance Sheet (Topic 210) Disclosures about Offsetting Assets and Liabilities. The ASU enhances disclosures in order to improve the comparability of offsetting (netting) assets and liabilities reported in accordance with U.S. generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRS) by requiring entities to disclose both gross information and net information about both instruments and transactions eligible for offset in the statements of condition and instruments and transactions subject to an agreement similar to a master netting arrangement. This ASU did not have a significant impact on the Company’s financial statements. | ||||
Reclassifications | ' | |||
Reclassifications - Certain reclassifications have been made to the 2012 financial statements to conform to the classifications used in 2013. During 2012, the Company reviewed and revised the definition of the reporting segments within its loan portfolio to ensure proper uniformity of risk among such segments and has made specific reclassifications to the 2012 segments as reported for consistency. However, any amounts reported for years prior to 2012 were not subject to this reclassification. None of the reclassifications had an impact on equity or net income. |
Organization_and_Summary_of_Si2
Organization and Summary of Significant Accounting and Reporting Policies (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Organization and Summary of Significant Accounting and Reporting Policies [Abstract] | ' | |||
Premises and Equipment Estimated Useful Life | ' | |||
Estimated useful lives are as follows: | ||||
Buildings | 31 years | Furniture and equipment | 3-7 Years | |
Estimated Aggregate Amortization Expense Related to Intangible Assets | ' | |||
The estimated aggregate amortization expense related to intangible assets for each of the five succeeding years is as follows (in 000’s): | ||||
Amortization | ||||
Year | expense | |||
2014 | 62 | |||
Total | $ | 62 | ||
Investment_Securities_Tables
Investment Securities (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||
Comparison of Amortized Cost and Fair Value of Securities Available for Sale | ' | |||||||||||||||||||||||
Following is a comparison of the amortized cost and approximate fair value of investment securities at December 31, 2013 and December 31, 2012: | ||||||||||||||||||||||||
(In thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value (Carrying Amount) | ||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||
U.S. Government agencies | $ | 14,060 | $ | 441 | — | $ | 14,501 | |||||||||||||||||
U.S. Government sponsored entities & agencies collateralized by mortgage obligations | 25,029 | 434 | (78 | ) | 25,385 | |||||||||||||||||||
Mutual Funds | 4,000 | — | (270 | ) | 3,730 | |||||||||||||||||||
Total securities available for sale | $ | 43,089 | $ | 875 | $ | (348 | ) | $ | 43,616 | |||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||
U.S. Government agencies | $ | 6,113 | $ | 487 | $ | — | $ | 6,600 | ||||||||||||||||
U.S. Government sponsored entities & agencies collateralized by mortgage obligations | 20,586 | 697 | — | 21,283 | ||||||||||||||||||||
Mutual Funds | 4,000 | — | (39 | ) | 3,961 | |||||||||||||||||||
Total securities available for sale | $ | 30,699 | $ | 1,184 | $ | (39 | ) | $ | 31,844 | |||||||||||||||
Contractual Maturities on Collateralized Mortgage Obligations | ' | |||||||||||||||||||||||
The amortized cost and fair value of securities available for sale at December 31, 2013, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because issuers have the right to call or prepay obligations with or without call or prepayment penalties. Contractual maturities on collateralized mortgage obligations cannot be anticipated due to allowed paydowns. | ||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Amortized Cost | Fair Value (Carrying Amount) | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Due in one year or less | $ | 4,000 | $ | 3,730 | ||||||||||||||||||||
Due after one year through five years | 69 | 74 | ||||||||||||||||||||||
Due after five years through ten years | — | — | ||||||||||||||||||||||
Due after ten years | 13,991 | 14,426 | ||||||||||||||||||||||
U.S. Government sponsored entities & agencies collateralized by mortgage obligations | 25,029 | 25,386 | ||||||||||||||||||||||
$ | 43,089 | $ | 43,616 | |||||||||||||||||||||
Temporarily Impaired Investment Securities | ' | |||||||||||||||||||||||
The following summarizes temporarily impaired investment securities at December 31, 2013 and 2012: | ||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
(In thousands) | Fair Value (Carrying Amount) | Unrealized Losses | Fair Value (Carrying Amount) | Unrealized Losses | Fair Value (Carrying Amount) | Unrealized Losses | ||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||
U.S. Government agencies | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
U.S. Government sponsored entities & agencies collateralized by mortgage obligations | 11,069 | (78 | ) | — | — | 11,069 | (78 | ) | ||||||||||||||||
Mutual Funds | — | — | 3,730 | (270 | ) | 3,730 | (270 | ) | ||||||||||||||||
Total impaired securities | $ | 11,069 | $ | (78 | ) | $ | 3,730 | $ | (270 | ) | $ | 14,799 | $ | (348 | ) | |||||||||
31-Dec-12 | ||||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||
U.S. Government agencies | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
U.S. Government sponsored entities & agencies collateralized by mortgage obligations | — | — | — | — | — | — | ||||||||||||||||||
Mutual Funds | 3,961 | (39 | ) | — | — | 3,961 | (39 | ) | ||||||||||||||||
Total impaired securities | $ | 3,961 | $ | (39 | ) | $ | — | $ | — | $ | 3,961 | $ | (39 | ) | ||||||||||
Loans_Tables
Loans (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||||||||||||||||||
Loans | ' | |||||||||||||||||||||||||||||||||||
Loans are comprised of the following: | ||||||||||||||||||||||||||||||||||||
Iin thousands) | December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||||||||
Commercial and Business loans | $ | 68,460 | $ | 69,780 | ||||||||||||||||||||||||||||||||
Government program loans | 2,226 | 2,337 | ||||||||||||||||||||||||||||||||||
Total Commercial and Industrial | 70,686 | 72,117 | ||||||||||||||||||||||||||||||||||
Real estate – mortgage: | ||||||||||||||||||||||||||||||||||||
Commercial real estate | 143,919 | 133,599 | ||||||||||||||||||||||||||||||||||
Residential mortgages | 52,036 | 55,016 | ||||||||||||||||||||||||||||||||||
Home Improvement and Home Equity loans | 1,410 | 1,319 | ||||||||||||||||||||||||||||||||||
Total Real Estate Mortgage | 197,365 | 189,934 | ||||||||||||||||||||||||||||||||||
RE Construction and Development | 87,004 | 90,941 | ||||||||||||||||||||||||||||||||||
Agricultural Loans | 30,932 | 36,169 | ||||||||||||||||||||||||||||||||||
Installment | 9,330 | 10,884 | ||||||||||||||||||||||||||||||||||
Commercial lease financing | — | 12 | ||||||||||||||||||||||||||||||||||
Total Loans | $ | 395,317 | $ | 400,057 | ||||||||||||||||||||||||||||||||
Loans to Affiliates | ' | |||||||||||||||||||||||||||||||||||
Loans to directors, officers, principal shareholders and their affiliates are summarized below: | ||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
Aggregate amount outstanding, beginning of year | 3,330 | 3,244 | ||||||||||||||||||||||||||||||||||
New loans or advances during year | 1,098 | 2,043 | ||||||||||||||||||||||||||||||||||
Repayments during year | (1,512 | ) | (1,957 | ) | ||||||||||||||||||||||||||||||||
Aggregate amount outstanding, end of year | $ | 2,916 | $ | 3,330 | ||||||||||||||||||||||||||||||||
Loan commitments | $ | 3,930 | $ | 2,916 | ||||||||||||||||||||||||||||||||
Delinquent Loans | ' | |||||||||||||||||||||||||||||||||||
The following is a summary of delinquent loans at December 31, 2013 (in thousands): | ||||||||||||||||||||||||||||||||||||
31-Dec-13 | Loans | Loans | Loans | Total Past Due Loans | Current Loans | Total Loans | Accruing | |||||||||||||||||||||||||||||
30-60 Days Past Due | 61-89 Days Past Due | 90 or More | Loans 90 or | |||||||||||||||||||||||||||||||||
Days Past Due | More Days Past Due | |||||||||||||||||||||||||||||||||||
Commercial and Business Loans | $ | — | $ | 94 | $ | — | $ | 94 | $ | 68,366 | $ | 68,460 | $ | — | ||||||||||||||||||||||
Government Program Loans | — | — | — | — | 2,226 | 2,226 | — | |||||||||||||||||||||||||||||
Total Commercial and Industrial | — | 94 | — | 94 | 70,592 | 70,686 | — | |||||||||||||||||||||||||||||
Commercial Real Estate Loans | 1,991 | — | 6,866 | 8,857 | 135,062 | 143,919 | — | |||||||||||||||||||||||||||||
Residential Mortgages | — | 614 | 359 | 973 | 51,063 | 52,036 | — | |||||||||||||||||||||||||||||
Home Improvement and Home Equity Loans | 96 | — | — | 96 | 1,314 | 1,410 | — | |||||||||||||||||||||||||||||
Total Real Estate Mortgage | 2,087 | 614 | 7,225 | 9,926 | 187,439 | 197,365 | — | |||||||||||||||||||||||||||||
RE Construction and Development Loans | — | — | 220 | 220 | 86,784 | 87,004 | — | |||||||||||||||||||||||||||||
Agricultural Loans | — | — | — | — | 30,932 | 30,932 | — | |||||||||||||||||||||||||||||
Consumer Loans | — | — | — | — | 9,086 | 9,086 | — | |||||||||||||||||||||||||||||
Overdraft protection Lines | — | — | — | — | 87 | 87 | — | |||||||||||||||||||||||||||||
Overdrafts | — | — | — | — | 157 | 157 | — | |||||||||||||||||||||||||||||
Total Installment | — | — | — | — | 9,330 | 9,330 | — | |||||||||||||||||||||||||||||
Commercial Lease Financing | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Total Loans | $ | 2,087 | $ | 708 | $ | 7,445 | $ | 10,240 | $ | 385,077 | $ | 395,317 | $ | — | ||||||||||||||||||||||
The following is a summary of delinquent loans at December 31, 2012 (in thousands): | ||||||||||||||||||||||||||||||||||||
31-Dec-12 | Loans | Loans | Loans | Total Past Due Loans | Current Loans | Total Loans | Accruing | |||||||||||||||||||||||||||||
30-60 Days Past Due | 61-89 Days Past Due | 90 or More | Loans 90 or | |||||||||||||||||||||||||||||||||
Days Past Due | More Days Past Due | |||||||||||||||||||||||||||||||||||
Commercial and Business Loans | $ | 65 | $ | — | $ | 256 | $ | 321 | $ | 69,459 | $ | 69,780 | $ | — | ||||||||||||||||||||||
Government Program Loans | 88 | — | — | 88 | 2,249 | 2,337 | — | |||||||||||||||||||||||||||||
Total Commercial and Industrial | 153 | — | 256 | 409 | 71,708 | 72,117 | — | |||||||||||||||||||||||||||||
Commercial Real Estate Loans | 3,152 | 2,130 | 5,328 | 10,610 | 122,989 | 133,599 | — | |||||||||||||||||||||||||||||
Residential Mortgages | 333 | 322 | 437 | 1,092 | 53,924 | 55,016 | — | |||||||||||||||||||||||||||||
Home Improvement and Home Equity Loans | 119 | 140 | — | 259 | 1,060 | 1,319 | — | |||||||||||||||||||||||||||||
Total Real Estate Mortgage | 3,604 | 2,592 | 5,765 | 11,961 | 177,973 | 189,934 | — | |||||||||||||||||||||||||||||
RE Construction and Development Loans | — | — | — | — | 90,941 | 90,941 | — | |||||||||||||||||||||||||||||
Agricultural Loans | — | 136 | — | 136 | 36,033 | 36,169 | — | |||||||||||||||||||||||||||||
Consumer Loans | 305 | 34 | — | 339 | 10,300 | 10,639 | — | |||||||||||||||||||||||||||||
Overdraft protection Lines | — | — | — | — | 90 | 90 | — | |||||||||||||||||||||||||||||
Overdrafts | — | — | — | — | 155 | 155 | — | |||||||||||||||||||||||||||||
Total Installment | 305 | 34 | — | 339 | 10,545 | 10,884 | — | |||||||||||||||||||||||||||||
Commercial Lease Financing | — | — | — | — | 12 | 12 | — | |||||||||||||||||||||||||||||
Total Loans | $ | 4,062 | $ | 2,762 | $ | 6,021 | $ | 12,845 | $ | 387,212 | $ | 400,057 | $ | — | ||||||||||||||||||||||
Nonaccrual Loan Balances | ' | |||||||||||||||||||||||||||||||||||
The following is a summary of nonaccrual loan balances at December 31, 2013 and 2012 (in thousands). | ||||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||||||||||||||
Commercial and Business Loans | $ | — | $ | 1,093 | ||||||||||||||||||||||||||||||||
Government Program Loans | — | 88 | ||||||||||||||||||||||||||||||||||
Total Commercial and Industrial | — | 1,181 | ||||||||||||||||||||||||||||||||||
Commercial Real Estate Loans | 10,188 | 8,415 | ||||||||||||||||||||||||||||||||||
Residential Mortgages | 1,685 | 1,834 | ||||||||||||||||||||||||||||||||||
Home Improvement and Home Equity Loans | — | 10 | ||||||||||||||||||||||||||||||||||
Total Real Estate Mortgage | 11,873 | 10,259 | ||||||||||||||||||||||||||||||||||
RE Construction and Development Loans | 468 | 1,730 | ||||||||||||||||||||||||||||||||||
Agricultural Loans | — | 136 | ||||||||||||||||||||||||||||||||||
Consumer Loans | — | 119 | ||||||||||||||||||||||||||||||||||
Total Installment | — | 119 | ||||||||||||||||||||||||||||||||||
Commercial Lease Financing | — | — | ||||||||||||||||||||||||||||||||||
Total Loans | $ | 12,341 | $ | 13,425 | ||||||||||||||||||||||||||||||||
Impaired Loans | ' | |||||||||||||||||||||||||||||||||||
The following is a summary of impaired loans at December 31, 2013 (in thousands). | ||||||||||||||||||||||||||||||||||||
31-Dec-13 | Unpaid | Recorded | Recorded | Total | Related Allowance | Average | Interest Recognized | |||||||||||||||||||||||||||||
Contractual | Investment | Investment | Recorded Investment | Recorded Investment | ||||||||||||||||||||||||||||||||
Principal Balance | With No Allowance | With Allowance | ||||||||||||||||||||||||||||||||||
Commercial and Business Loans | $ | 675 | $ | 275 | $ | 402 | $ | 677 | $ | 9 | $ | 831 | $ | 52 | ||||||||||||||||||||||
Government Program Loans | — | — | — | — | — | 35 | — | |||||||||||||||||||||||||||||
Total Commercial and Industrial | 675 | 275 | 402 | 677 | 9 | 866 | 52 | |||||||||||||||||||||||||||||
Commercial Real Estate Loans | 10,188 | 8,721 | 1,468 | 10,189 | 415 | 10,671 | 232 | |||||||||||||||||||||||||||||
Residential Mortgages | 5,375 | 1,794 | 3,590 | 5,384 | 338 | 6,139 | 211 | |||||||||||||||||||||||||||||
Home Improvement and Home Equity Loans | — | — | — | — | — | 13 | — | |||||||||||||||||||||||||||||
Total Real Estate Mortgage | 15,563 | 10,515 | 5,058 | 15,573 | 753 | 16,823 | 443 | |||||||||||||||||||||||||||||
RE Construction and Development Loans | 1,772 | 1,789 | — | 1,789 | — | 2,266 | 60 | |||||||||||||||||||||||||||||
Agricultural Loans | 44 | 45 | — | 45 | — | 84 | 10 | |||||||||||||||||||||||||||||
Consumer Loans | 48 | 48 | — | 48 | — | 72 | 4 | |||||||||||||||||||||||||||||
Total Installment | 48 | 48 | — | 48 | — | 72 | 4 | |||||||||||||||||||||||||||||
Total Impaired Loans | $ | 18,102 | $ | 12,672 | $ | 5,460 | $ | 18,132 | $ | 762 | $ | 20,111 | $ | 569 | ||||||||||||||||||||||
The following is a summary of impaired loans at December 31, 2012 (in thousands). | ||||||||||||||||||||||||||||||||||||
31-Dec-12 | Unpaid | Recorded | Recorded | Total | Related Allowance | Average | Interest Recognized | |||||||||||||||||||||||||||||
Contractual | Investment | Investment | Recorded Investment | Recorded Investment | ||||||||||||||||||||||||||||||||
Principal Balance | With No Allowance | With Allowance | ||||||||||||||||||||||||||||||||||
Commercial and Business Loans | $ | 1,488 | $ | 767 | $ | 576 | $ | 1,343 | $ | 37 | $ | 5,468 | $ | 26 | ||||||||||||||||||||||
Government Program Loans | 109 | 88 | — | 88 | — | 147 | — | |||||||||||||||||||||||||||||
Total Commercial and Industrial | 1,597 | 855 | 576 | 1,431 | 37 | 5,615 | 26 | |||||||||||||||||||||||||||||
Commercial Real Estate Loans | 11,393 | 6,818 | 4,237 | 11,055 | 436 | 8,498 | 135 | |||||||||||||||||||||||||||||
Residential Mortgages | 7,461 | 3,726 | 3,666 | 7,392 | 185 | 4,416 | 251 | |||||||||||||||||||||||||||||
Home Improvement and Home Equity Loans | 10 | 10 | — | 10 | — | 21 | — | |||||||||||||||||||||||||||||
Total Real Estate Mortgage | 18,864 | 10,554 | 7,903 | 18,457 | 621 | 12,935 | 386 | |||||||||||||||||||||||||||||
RE Construction and Development Loans | 1,730 | 1,730 | — | 1,730 | — | 7,298 | — | |||||||||||||||||||||||||||||
Agricultural Loans | 504 | 192 | — | 192 | — | 991 | 50 | |||||||||||||||||||||||||||||
Consumer Loans | 139 | 121 | — | 121 | — | 200 | 6 | |||||||||||||||||||||||||||||
Total Installment | 139 | 121 | — | 121 | — | 200 | 6 | |||||||||||||||||||||||||||||
Total Impaired Loans | $ | 22,834 | $ | 13,452 | $ | 8,479 | $ | 21,931 | $ | 658 | $ | 27,039 | $ | 468 | ||||||||||||||||||||||
Troubled Debt Restructuring Activity | ' | |||||||||||||||||||||||||||||||||||
The following tables illustrate TDR activity for the periods indicated (dollars in thousands): | ||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||||||||||||
Number of | Pre- | Post- | Number of Contracts in Default | Recorded Investment on Defaulted TDRs | ||||||||||||||||||||||||||||||||
Contracts | Modification | Modification | ||||||||||||||||||||||||||||||||||
Outstanding | Outstanding | |||||||||||||||||||||||||||||||||||
Recorded | Recorded | |||||||||||||||||||||||||||||||||||
Investment | Investment | |||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | ||||||||||||||||||||||||||||||||||||
Commercial and Business Loans | — | $ | — | $ | — | — | $ | — | ||||||||||||||||||||||||||||
Government Program Loans | — | — | — | — | — | |||||||||||||||||||||||||||||||
Commercial Real Estate Term Loans | — | — | — | 1 | 106 | |||||||||||||||||||||||||||||||
Single Family Residential Loans | — | — | — | — | — | |||||||||||||||||||||||||||||||
Home Improvement and Home Equity Loans | — | — | — | — | — | |||||||||||||||||||||||||||||||
RE Construction and Development Loans | 41 | 1,034 | 1,304 | — | — | |||||||||||||||||||||||||||||||
Agricultural Loans | — | — | — | — | — | |||||||||||||||||||||||||||||||
Consumer Loans | 1 | 48 | 48 | — | — | |||||||||||||||||||||||||||||||
Overdraft protection Lines | — | — | — | — | — | |||||||||||||||||||||||||||||||
Commercial Lease Financing | — | — | — | — | — | |||||||||||||||||||||||||||||||
Total Loans | 42 | $ | 1,082 | $ | 1,352 | 1 | $ | 106 | ||||||||||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||||||||||||
Number of | Pre- | Post- | Number of Contracts in Default | Recorded Investment on Defaulted TDRs | ||||||||||||||||||||||||||||||||
Contracts | Modification | Modification | ||||||||||||||||||||||||||||||||||
Outstanding | Outstanding | |||||||||||||||||||||||||||||||||||
Recorded | Recorded | |||||||||||||||||||||||||||||||||||
Investment | Investment | |||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | ||||||||||||||||||||||||||||||||||||
Commercial and Business Loans | 3 | $ | 320 | $ | 303 | — | $ | — | ||||||||||||||||||||||||||||
Government Program Loans | 1 | 103 | 88 | — | — | |||||||||||||||||||||||||||||||
Commercial Real Estate Term Loans | 4 | 2,535 | 2,506 | — | — | |||||||||||||||||||||||||||||||
Single Family Residential Loans | 2 | 324 | 323 | — | — | |||||||||||||||||||||||||||||||
Home Improvement and Home Equity Loans | 1 | — | — | — | — | |||||||||||||||||||||||||||||||
RE Construction and Development Loans | 14 | 1,130 | 1,130 | — | — | |||||||||||||||||||||||||||||||
Agricultural Loans | 2 | 192 | 191 | — | — | |||||||||||||||||||||||||||||||
Consumer Loans | 1 | 20 | 19 | — | — | |||||||||||||||||||||||||||||||
Overdraft protection Lines | — | — | — | — | — | |||||||||||||||||||||||||||||||
Commercial Lease Financing | — | — | — | — | — | |||||||||||||||||||||||||||||||
Total Loans | 28 | $ | 4,624 | $ | 4,560 | — | $ | — | ||||||||||||||||||||||||||||
The following tables summarize TDR activity by loan category for the years ended December 31, 2013 and 2012 (in thousands). | ||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2013 | Commercial and Industrial | Commercial Real Estate | Residential Mortgages | Home Equity | RE Construction Development | Agricultural | Installment | Lease Financing | Total | |||||||||||||||||||||||||||
& Other | ||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 990 | $ | 5,395 | $ | 7,289 | $ | 10 | $ | 2,860 | $ | 191 | $ | 38 | $ | — | $ | 16,773 | ||||||||||||||||||
Defaults | — | (106 | ) | — | — | — | — | — | — | (106 | ) | |||||||||||||||||||||||||
Additions | — | — | — | 44 | 4,399 | — | 48 | — | 4,491 | |||||||||||||||||||||||||||
Principal reductions | (315 | ) | (3,821 | ) | (2,016 | ) | (54 | ) | (5,708 | ) | (147 | ) | (38 | ) | — | (12,099 | ) | |||||||||||||||||||
Ending balance | $ | 675 | $ | 1,468 | $ | 5,273 | $ | — | $ | 1,551 | $ | 44 | $ | 48 | $ | — | $ | 9,059 | ||||||||||||||||||
Allowance for loan loss | $ | 9 | $ | 415 | $ | 338 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 762 | ||||||||||||||||||
Year Ended December 31, 2012 | Commercial and Industrial | Commercial Real Estate | Residential Mortgages | Home Equity | RE Construction Development | Agricultural | Installment | Lease Financing | Total | |||||||||||||||||||||||||||
& Other | ||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 1,507 | $ | 5,174 | $ | 7,689 | $ | 36 | $ | 4,550 | $ | 60 | $ | 34 | $ | — | $ | 19,050 | ||||||||||||||||||
Defaults | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Additions | 391 | 2,506 | 323 | — | 1,130 | 191 | 19 | — | 4,560 | |||||||||||||||||||||||||||
Principal reductions | (908 | ) | (2,285 | ) | (723 | ) | (26 | ) | (2,820 | ) | (60 | ) | (15 | ) | — | (6,837 | ) | |||||||||||||||||||
Ending balance | $ | 990 | $ | 5,395 | $ | 7,289 | $ | 10 | $ | 2,860 | $ | 191 | $ | 38 | $ | — | $ | 16,773 | ||||||||||||||||||
Allowance for loan loss | $ | 152 | $ | 325 | $ | 128 | $ | — | $ | 6 | $ | — | $ | — | $ | — | $ | 611 | ||||||||||||||||||
Credit Risk Rating for Commercial, Construction and Non-consumer Related Loans | ' | |||||||||||||||||||||||||||||||||||
The following tables summarize the credit risk ratings for commercial, construction, and other non-consumer related loans for December 31, 2013 and 2012. The Company did not carry any loans graded as loss at December 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||
Commercial and Industrial | Commercial RE | RE Construction and Development | Agricultural | Total | ||||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||
Grades 1and 2 | $ | 355 | $ | — | $ | — | $ | 70 | $ | 425 | ||||||||||||||||||||||||||
Grade 3 | 44 | 5,287 | 816 | — | 6,147 | |||||||||||||||||||||||||||||||
Grades 4 and 5 – pass | 69,070 | 127,189 | 66,048 | 30,862 | 293,169 | |||||||||||||||||||||||||||||||
Grade 6 – special mention | 590 | — | — | — | 590 | |||||||||||||||||||||||||||||||
Grade 7 – substandard | 627 | 11,443 | 20,140 | — | 32,210 | |||||||||||||||||||||||||||||||
Grade 8 – doubtful | — | — | — | — | — | |||||||||||||||||||||||||||||||
Total | $ | 70,686 | $ | 143,919 | $ | 87,004 | $ | 30,932 | $ | 332,541 | ||||||||||||||||||||||||||
Commercial and Industrial | Commercial RE | RE Construction and Development | Agricultural | Total | ||||||||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||
Grades 1and 2 | $ | 825 | $ | — | $ | — | $ | 60 | $ | 885 | ||||||||||||||||||||||||||
Grade 3 | 2,071 | 5,947 | 856 | — | 8,874 | |||||||||||||||||||||||||||||||
Grades 4 and 5 – pass | 66,098 | 116,606 | 75,191 | 35,973 | 293,868 | |||||||||||||||||||||||||||||||
Grade 6 – special mention | 1,867 | — | 141 | — | 2,008 | |||||||||||||||||||||||||||||||
Grade 7 – substandard | 1,256 | 11,046 | 14,753 | 136 | 27,191 | |||||||||||||||||||||||||||||||
Grade 8 – doubtful | — | — | — | — | — | |||||||||||||||||||||||||||||||
Total | $ | 72,117 | $ | 133,599 | $ | 90,941 | $ | 36,169 | $ | 332,826 | ||||||||||||||||||||||||||
Credit Risk Ratings for Consumer Related Loans and Other Homogenous Loans | ' | |||||||||||||||||||||||||||||||||||
The following tables summarize the credit risk ratings for consumer related loans and other homogeneous loans for December 31, 2013 and 2012 (in thousands). | ||||||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||||
Residential Mortgages | Home | Installment | Total | Residential Mortgages | Home | Installment | Total | |||||||||||||||||||||||||||||
Improvement and Home Equity | Improvement and Home Equity | |||||||||||||||||||||||||||||||||||
Not graded | $ | 29,063 | $ | 1,378 | $ | 7,862 | $ | 38,303 | $ | 30,727 | $ | 1,309 | $ | 9,221 | $ | 41,257 | ||||||||||||||||||||
Pass | 19,320 | — | 1,468 | 20,788 | 20,572 | — | 1,422 | 21,994 | ||||||||||||||||||||||||||||
Special Mention | 1,204 | 32 | — | 1,236 | 909 | — | 49 | 958 | ||||||||||||||||||||||||||||
Substandard | 2,449 | — | — | 2,449 | 2,808 | 10 | 192 | 3,010 | ||||||||||||||||||||||||||||
Total | $ | 52,036 | $ | 1,410 | $ | 9,330 | $ | 62,776 | $ | 55,016 | $ | 1,319 | $ | 10,884 | $ | 67,219 | ||||||||||||||||||||
Allowance for Credit Loses by Loan Category | ' | |||||||||||||||||||||||||||||||||||
The following summarizes the activity in the allowance for credit losses by loan category for the years ended December 31, 2013 and 2012 (in thousands). | ||||||||||||||||||||||||||||||||||||
December 31, 2013 | Commercial and Industrial | Real Estate Mortgage | RE Construction Development | Agricultural | Installment & Other | Commercial Lease Financing | Unallocated | Total | ||||||||||||||||||||||||||||
Beginning balance | $ | 1,614 | $ | 1,292 | $ | 2,814 | $ | 352 | $ | 288 | $ | 1 | $ | 5,423 | $ | 11,784 | ||||||||||||||||||||
Provision for credit losses | 1,134 | 1,101 | 1,285 | 222 | 160 | (1 | ) | (4,999 | ) | (1,098 | ) | |||||||||||||||||||||||||
Charge-offs | (542 | ) | (540 | ) | (95 | ) | (136 | ) | (244 | ) | — | (29 | ) | (1,586 | ) | |||||||||||||||||||||
Recoveries | 134 | 9 | 1,529 | 145 | 71 | — | — | 1,888 | ||||||||||||||||||||||||||||
Net charge-offs | (408 | ) | (531 | ) | 1,434 | 9 | (173 | ) | — | (29 | ) | 302 | ||||||||||||||||||||||||
Ending balance | $ | 2,340 | $ | 1,862 | $ | 5,533 | $ | 583 | $ | 275 | $ | — | $ | 395 | $ | 10,988 | ||||||||||||||||||||
Period-end amount allocated to: | ||||||||||||||||||||||||||||||||||||
Loans individually evaluated for impairment | 9 | 753 | — | — | — | — | — | 762 | ||||||||||||||||||||||||||||
Loans collectively evaluated for impairment | 2,331 | 1,109 | 5,533 | 583 | 275 | — | 395 | 10,226 | ||||||||||||||||||||||||||||
Ending balance | $ | 2,340 | $ | 1,862 | $ | 5,533 | $ | 583 | $ | 275 | $ | — | $ | 395 | $ | 10,988 | ||||||||||||||||||||
December 31, 2012 | Commercial and Industrial | Real Estate Mortgage | RE Construction Development | Agricultural | Installment & Other | Commercial Lease Financing | Unallocated | Total | ||||||||||||||||||||||||||||
Beginning balance | $ | 4,782 | $ | 2,070 | $ | 5,634 | $ | 803 | $ | 117 | $ | 1 | $ | 241 | $ | 13,648 | ||||||||||||||||||||
Provision for credit losses | (2,730 | ) | (235 | ) | (3,431 | ) | 1,860 | 384 | (11 | ) | 5,182 | 1,019 | ||||||||||||||||||||||||
Charge-offs | (1,080 | ) | (620 | ) | (10 | ) | (2,317 | ) | (251 | ) | — | — | (4,278 | ) | ||||||||||||||||||||||
Recoveries | 642 | 77 | 621 | 6 | 38 | 11 | — | 1,395 | ||||||||||||||||||||||||||||
Net charge-offs | (438 | ) | (543 | ) | 611 | (2,311 | ) | (213 | ) | 11 | — | (2,883 | ) | |||||||||||||||||||||||
Ending balance | $ | 1,614 | $ | 1,292 | $ | 2,814 | $ | 352 | $ | 288 | $ | 1 | $ | 5,423 | $ | 11,784 | ||||||||||||||||||||
Period-end amount allocated to: | ||||||||||||||||||||||||||||||||||||
Loans individually evaluated for impairment | 37 | 621 | — | — | — | — | — | 658 | ||||||||||||||||||||||||||||
Loans collectively evaluated for impairment | 1,577 | 671 | 2,814 | 352 | 288 | 1 | 5,423 | 11,126 | ||||||||||||||||||||||||||||
Ending balance | $ | 1,614 | $ | 1,292 | $ | 2,814 | $ | 352 | $ | 288 | $ | 1 | $ | 5,423 | $ | 11,784 | ||||||||||||||||||||
Summarized Loan Balances | ' | |||||||||||||||||||||||||||||||||||
The following summarizes information with respect to the loan balances at December 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||||
Loans | Loans | Total Loans | Loans | Loans | Total Loans | |||||||||||||||||||||||||||||||
Individually | Collectively | Individually | Collectively | |||||||||||||||||||||||||||||||||
(In thousands) | Evaluated for Impairment | Evaluated for Impairment | Evaluated for Impairment | Evaluated for Impairment | ||||||||||||||||||||||||||||||||
Commercial and Business Loans | $ | 677 | $ | 67,783 | $ | 68,460 | $ | 1,343 | $ | 68,437 | $ | 69,780 | ||||||||||||||||||||||||
Government Program Loans | — | 2,226 | 2,226 | 88 | 2,249 | 2,337 | ||||||||||||||||||||||||||||||
Total Commercial and Industrial | 677 | 70,009 | 70,686 | 1,431 | 70,686 | 72,117 | ||||||||||||||||||||||||||||||
Commercial Real Estate Loans | 10,189 | 133,730 | 143,919 | 11,055 | 122,544 | 133,599 | ||||||||||||||||||||||||||||||
Residential Mortgage Loans | 5,384 | 46,652 | 52,036 | 7,392 | 47,624 | 55,016 | ||||||||||||||||||||||||||||||
Home Improvement and Home Equity Loans | — | 1,410 | 1,410 | 10 | 1,309 | 1,319 | ||||||||||||||||||||||||||||||
Total Real Estate Mortgage | 15,573 | 181,792 | 197,365 | 18,457 | 171,477 | 189,934 | ||||||||||||||||||||||||||||||
RE Construction and Development Loans | 1,789 | 85,215 | 87,004 | 1,730 | 89,211 | 90,941 | ||||||||||||||||||||||||||||||
Agricultural Loans | 45 | 30,887 | 30,932 | 192 | 35,977 | 36,169 | ||||||||||||||||||||||||||||||
Installment Loans | 48 | 9,282 | 9,330 | 121 | 10,763 | 10,884 | ||||||||||||||||||||||||||||||
Commercial Lease Financing | — | — | — | — | 12 | 12 | ||||||||||||||||||||||||||||||
Total Loans | $ | 18,132 | $ | 377,185 | $ | 395,317 | $ | 21,931 | $ | 378,126 | $ | 400,057 | ||||||||||||||||||||||||
Premises_and_Equipment_Tables
Premises and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Premises and Equipment | ' | |||||||
The components of premises and equipment are as follows: | ||||||||
(In thousands) | December 31, 2013 | December 31, 2012 | ||||||
Land | $ | 968 | $ | 968 | ||||
Buildings and improvements | 14,613 | 14,573 | ||||||
Furniture and equipment | 11,077 | 9,956 | ||||||
26,658 | 25,497 | |||||||
Less accumulated depreciation and amortization | (14,536 | ) | (13,235 | ) | ||||
Total premises and equipment | $ | 12,122 | $ | 12,262 | ||||
Deposits_Tables
Deposits (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Deposits [Abstract] | ' | |||||||
Deposits Summary | ' | |||||||
Deposits include the following: | ||||||||
(In thousands) | December 31, 2013 | December 31, 2012 | ||||||
Noninterest-bearing deposits | $ | 214,317 | $ | 217,014 | ||||
Interest-bearing deposits: | ||||||||
NOW and money market accounts | 198,928 | 203,771 | ||||||
Savings accounts | 45,758 | 43,117 | ||||||
Time deposits: | ||||||||
Under $100,000 | 28,825 | 32,532 | ||||||
$100,000 and over | 54,661 | 66,853 | ||||||
Total interest-bearing deposits | 328,172 | 346,273 | ||||||
Total deposits | $ | 542,489 | $ | 563,287 | ||||
Maturities of Certificates of Deposits and Other Time Deposits | ' | |||||||
At December 31, 2013, the scheduled maturities of all certificates of deposit and other time deposits are as follows: | ||||||||
(In thousands) | 31-Dec-13 | |||||||
One year or less | $ | 68,343 | ||||||
More than one year, but less than or equal to two years | 10,554 | |||||||
More than two years, but less than or equal to three years | 2,019 | |||||||
More than three years, but less than or equal to four years | 2,198 | |||||||
More than four years, but less than or equal to five years | 358 | |||||||
More than five years | 14 | |||||||
$ | 83,486 | |||||||
Taxes_on_Income_Tables
Taxes on Income (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Deferred Tax Assets and Liabilities | ' | |||||||||||
The tax effects of significant items comprising the Company’s net deferred tax assets (liabilities) are as follows: | ||||||||||||
December 31, | ||||||||||||
(In thousands) | 2013 | 2012 | ||||||||||
Deferred tax assets: | ||||||||||||
Credit losses not currently deductible | $ | 4,927 | $ | 4,391 | ||||||||
Deferred compensation | 1,920 | 1,912 | ||||||||||
Net operating losses | 9,074 | 7,773 | ||||||||||
Depreciation | 231 | 518 | ||||||||||
Accrued reserves | 63 | 194 | ||||||||||
Write-down on other real estate owned | (97 | ) | 3,283 | |||||||||
Capitalized OREO expenses | 1,079 | 793 | ||||||||||
Other | 2,555 | 1,908 | ||||||||||
Total deferred tax assets | 19,752 | 20,772 | ||||||||||
Deferred tax liabilities: | ||||||||||||
State Tax | (2,640 | ) | (1,889 | ) | ||||||||
FHLB dividend | (53 | ) | (103 | ) | ||||||||
Loss on limited partnership investment | (1,808 | ) | (1,695 | ) | ||||||||
Unrealized gain on AFS | (211 | ) | (458 | ) | ||||||||
Deferred gain SFAS No. 159 – fair value option | (2,471 | ) | (2,819 | ) | ||||||||
Fair value adjustments for purchase accounting | (167 | ) | (123 | ) | ||||||||
Interest on nonaccrual loans | 36 | (368 | ) | |||||||||
Deferred loan costs | (570 | ) | (602 | ) | ||||||||
Prepaid expenses | (238 | ) | (305 | ) | ||||||||
Total deferred tax liabilities | (8,122 | ) | (8,362 | ) | ||||||||
Valuation Allowance | — | (2,686 | ) | |||||||||
Net deferred tax assets | $ | 11,630 | $ | 9,724 | ||||||||
Income Taxes | ' | |||||||||||
Income tax expense (benefit) for the years ended December 31, consist of the following: | ||||||||||||
(In thousands) | ||||||||||||
2013 | Federal | State | Total | |||||||||
Current | $ | 1,059 | $ | 819 | $ | 1,878 | ||||||
Deferred | (1,055 | ) | (718 | ) | (1,773 | ) | ||||||
$ | 4 | $ | 101 | $ | 105 | |||||||
2012 | ||||||||||||
Current | $ | 719 | $ | (416 | ) | $ | 303 | |||||
Deferred | 466 | 764 | 1,230 | |||||||||
$ | 1,185 | $ | 348 | $ | 1,533 | |||||||
Effective Income Tax Rate Reconciliation | ' | |||||||||||
A reconciliation of the statutory federal income tax rate to the effective income tax rate is as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Statutory federal income tax rate | 34 | % | 34 | % | ||||||||
State franchise tax, net of federal income tax benefit | 0.9 | 3 | ||||||||||
Low Income Housing – federal credits | 0 | (1.1 | ) | |||||||||
Cash surrender value of life insurance | (2.4 | ) | (2.4 | ) | ||||||||
Valuation Allowance | (33.0 | ) | (13.2 | ) | ||||||||
Other | 1.9 | (0.1 | ) | |||||||||
1.4 | % | 20.2 | % |
Stock_Based_Compensation_Table
Stock Based Compensation (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||
Options Activity | ' | |||||||
Options outstanding, exercisable, exercised and forfeited are as follows: | ||||||||
2005 | Weighted | |||||||
Plan | Average | |||||||
Exercise Price | ||||||||
Options outstanding December 31, 2012 | 194,224 | $ | 10.27 | |||||
Granted during the year | 25,502 | 4.16 | ||||||
Exercised during the year | 5,202 | 2.29 | ||||||
Forfeited during the year | 21,442 | 2.29 | ||||||
Options outstanding December 31, 2013 | 193,082 | $ | 10.57 | |||||
Intrinsic Value of Stock Options Exercised | ' | |||||||
31-Dec-13 | 31-Dec-12 | |||||||
Weighted average grant-date fair value of stock options granted | $ | 2.8 | $ | 1.33 | ||||
Total fair value of stock options vested | $ | 24,310 | $ | 26,246 | ||||
Total intrinsic value of stock options exercised | $ | 9,665 | n/a | |||||
Stock Options Valuation Assumptions | ' | |||||||
The assumptions used for the 2013 and 2012 stock option grant are as follows: | ||||||||
Year Ended | Year Ended | |||||||
December 31, 2013 | December 31, 2012 | |||||||
Risk Free Interest Rate | 1.20% | 1.02% | ||||||
Expected Dividend Yield | —% | —% | ||||||
Expected Life in Years | 5.5 years | 5.5 years | ||||||
Expected Price Volatility | 78.88% | 79.43% |
Commitments_and_Contingent_Lia1
Commitments and Contingent Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Future Minimum Rental Payments for Operating Leases | ' | |||||||
Future minimum rental commitments under existing non-cancelable leases as of December 31, 2013 are as follows: | ||||||||
(In thousands): | ||||||||
2014 | $ | 530 | ||||||
2015 | 457 | |||||||
2016 | 310 | |||||||
2017 | 274 | |||||||
2018 | 270 | |||||||
Thereafter | 347 | |||||||
$ | 2,188 | |||||||
Financial Instruments Off-balance Sheet Risks | ' | |||||||
The credit risk associated with these instruments is essentially the same as that involved in extending credit to customers and is represented by the contractual amount indicated in the table below: | ||||||||
Contractual amount – December 31, | ||||||||
(In thousands) | 2013 | 2012 | ||||||
Commitments to extend credit | $ | 63,271 | $ | 60,050 | ||||
Standby letters of credit | 2,001 | 2,504 | ||||||
Fair_Value_Measurements_and_Di1
Fair Value Measurements and Disclosure (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||||||||
The table below is a summary of fair value estimates for financial instruments and the level of the fair value hierarchy within which the fair value measurements are categorized at the periods indicated: | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
(In thousands) | Carrying Amount | Estimated Fair Value | Quoted Prices In Active Markets for Identical Assets Level 1 | Significant Other Observable Inputs Level 2 | Significant Unobservable Inputs Level 3 | |||||||||||||||
Financial Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 135,212 | $ | 135,212 | $ | 135,212 | $ | — | $ | — | ||||||||||
Interest-bearing deposits | 1,515 | 1,515 | — | 1,515 | — | |||||||||||||||
Investment securities | 43,616 | 43,616 | 10,746 | 32,870 | — | |||||||||||||||
Loans | 384,025 | 380,615 | — | — | 380,615 | |||||||||||||||
Accrued interest receivable | 1,644 | 1,644 | — | 1,644 | — | |||||||||||||||
Financial Liabilities: | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest-bearing | 214,317 | 214,317 | 214,317 | — | — | |||||||||||||||
NOW and money market | 198,928 | 198,928 | 198,928 | — | — | |||||||||||||||
Savings | 45,758 | 45,758 | 45,758 | — | — | |||||||||||||||
Time Deposits | 83,486 | 83,362 | — | — | 83,362 | |||||||||||||||
Total Deposits | 542,489 | 542,365 | 459,003 | — | 83,362 | |||||||||||||||
Junior Subordinated Debt | 11,125 | 11,125 | — | — | 11,125 | |||||||||||||||
Accrued interest payable | 44 | 44 | — | 44 | — | |||||||||||||||
December 31, 2012 | ||||||||||||||||||||
(In thousands) | Carrying Amount | Estimated Fair Value | Quoted Prices In Active Markets for Identical Assets Level 1 | Significant Other Observable Inputs Level 2 | Significant Unobservable Inputs Level 3 | |||||||||||||||
Financial Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 141,627 | $ | 141,627 | $ | 141,627 | $ | — | $ | — | ||||||||||
Interest-bearing deposits | 1,507 | 1,507 | — | 1,507 | — | |||||||||||||||
Investment securities | 31,844 | 31,844 | 13,593 | 18,251 | — | |||||||||||||||
Loans | 388,249 | 386,836 | — | — | 386,836 | |||||||||||||||
Accrued interest receivable | 1,694 | 1,694 | — | 1,694 | — | |||||||||||||||
Financial Liabilities: | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest-bearing | 217,014 | 217,014 | 217,014 | — | — | |||||||||||||||
NOW and money market | 203,771 | 203,771 | 203,771 | — | — | |||||||||||||||
Savings | 43,117 | 43,117 | 43,117 | — | — | |||||||||||||||
Time Deposits | 99,385 | 99,529 | — | — | 99,529 | |||||||||||||||
Total Deposits | 563,287 | 563,431 | 463,902 | — | 99,529 | |||||||||||||||
Junior Subordinated Debt | 10,068 | 10,068 | — | — | 10,068 | |||||||||||||||
Accrued interest payable | 71 | 71 | — | 71 | — | |||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring and Non-recurring Basis | ' | |||||||||||||||||||
The following tables summarize the Company’s assets and liabilities that were measured at fair value on a recurring and non-recurring basis as of December 31, 2013 (in 000’s): | ||||||||||||||||||||
Description of Assets | 31-Dec-13 | Quoted Prices in | Significant Other | Significant | ||||||||||||||||
Active Markets | Observable Inputs | Unobservable | ||||||||||||||||||
for Identical | (Level 2) | Inputs | ||||||||||||||||||
Assets | (Level 3) | |||||||||||||||||||
(Level 1) | ||||||||||||||||||||
AFS Securities (2): | ||||||||||||||||||||
U.S. Government agencies | $ | 14,501 | $ | — | $ | 14,500 | $ | — | ||||||||||||
U.S Govt collateralized mortgage obligations | 25,385 | 7,016 | 18,370 | — | ||||||||||||||||
Mutual Funds | 3,730 | 3,730 | — | — | ||||||||||||||||
Total AFS securities | 43,616 | 10,746 | 32,870 | — | ||||||||||||||||
Impaired Loans (1): | ||||||||||||||||||||
Commercial and industrial | — | — | — | — | ||||||||||||||||
Real estate mortgage | 1,388 | — | — | 1,388 | ||||||||||||||||
RE construction & development | — | — | — | — | ||||||||||||||||
Agricultural | — | — | — | — | ||||||||||||||||
Installment/Other | — | — | — | — | ||||||||||||||||
Total impaired loans | 1,388 | — | — | 1,388 | ||||||||||||||||
Other real estate owned (1) | 3,889 | — | — | 3,889 | ||||||||||||||||
Total | $ | 48,893 | $ | 10,746 | $ | 32,870 | $ | 5,277 | ||||||||||||
Description of Liabilities | December 31, 2013 | Quoted Prices | Significant | Significant | ||||||||||||||||
in Active | Other | Unobservable | ||||||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||||
Identical | Inputs | (Level 3) | ||||||||||||||||||
Assets | (Level 2) | |||||||||||||||||||
(Level 1) | ||||||||||||||||||||
Junior subordinated debt (2) | $ | 11,125 | $ | — | $ | — | $ | 11,125 | ||||||||||||
Total | $ | 11,125 | $ | — | $ | — | $ | 11,125 | ||||||||||||
(1)Nonrecurring | ||||||||||||||||||||
(2)Recurring | ||||||||||||||||||||
The following tables summarize the Company’s assets and liabilities that were measured at fair value on a recurring and non-recurring basis as of December 31, 2012 (in 000’s): | ||||||||||||||||||||
Description of Assets | December 31, 2012 | Quoted Prices | Significant | Significant | ||||||||||||||||
in Active | Other | Unobservable | ||||||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||||
Identical | Inputs | (Level 3) | ||||||||||||||||||
Assets | (Level 2) | |||||||||||||||||||
(Level 1) | ||||||||||||||||||||
AFS Securities (2): | ||||||||||||||||||||
U.S. Government agencies | $ | 6,600 | $ | — | $ | 6,600 | $ | — | ||||||||||||
U.S Govt collateralized mortgage obligations | 21,283 | 9,632 | 11,651 | — | ||||||||||||||||
Mutual Funds | 3,961 | 3,961 | — | — | ||||||||||||||||
Total AFS securities | 31,844 | 13,593 | 18,251 | — | ||||||||||||||||
Impaired Loans (1): | ||||||||||||||||||||
Commercial and industrial | 47 | — | — | 47 | ||||||||||||||||
Real estate mortgage | 2,159 | — | — | 2,159 | ||||||||||||||||
RE construction & development | — | — | — | — | ||||||||||||||||
Agricultural | 136 | — | — | 136 | ||||||||||||||||
Installment/Other | — | — | — | — | ||||||||||||||||
Total impaired loans | 2,342 | — | — | 2,342 | ||||||||||||||||
Other real estate owned (1) | 4,483 | — | — | 4,483 | ||||||||||||||||
Total | $ | 38,669 | $ | 13,593 | $ | 18,251 | $ | 6,825 | ||||||||||||
Description of Liabilities | 31-Dec-12 | Quoted Prices | Significant | Significant | ||||||||||||||||
in Active | Other | Unobservable | ||||||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||||
Identical | Inputs | (Level 3) | ||||||||||||||||||
Assets | (Level 2) | |||||||||||||||||||
(Level 1) | ||||||||||||||||||||
Junior subordinated debt (2) | $ | 10,068 | $ | — | $ | — | $ | 10,068 | ||||||||||||
Total | $ | 10,068 | $ | — | $ | — | $ | 10,068 | ||||||||||||
(1)Nonrecurring | ||||||||||||||||||||
(2)Recurring | ||||||||||||||||||||
Quantitative information about fair value measurements on Company's assets | ' | |||||||||||||||||||
The following table presents quantitative information about Level 3 fair value measurements for the Company's assets measured at fair value on a non-recurring basis at December 31, 2013: | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Financial Instrument | Fair Value | Valuation Technique | Unobservable Input | Range, Weighted Average | ||||||||||||||||
Impaired Loans: | ||||||||||||||||||||
Real estate mortgage | $ | 1,388 | Sales Comparison Approach | Adjustment for difference between comparable sales | 1%-32%, 17.5% | |||||||||||||||
Other real estate owned: | ||||||||||||||||||||
Real estate construction | 3,889 | Discounted cash flow | Discount rate | 1%-10%, 8.49% | ||||||||||||||||
Significant Unobservable Inputs (Level 3) on a Recurring Basis | ' | |||||||||||||||||||
The following tables provide a reconciliation of assets and liabilities at fair value using significant unobservable inputs (Level 3) on a recurring basis during the period (in 000’s): | ||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||
Reconciliation of Assets: | Private label | Private label | ||||||||||||||||||
residential | residential | |||||||||||||||||||
mortgage | mortgage | |||||||||||||||||||
obligations | obligations | |||||||||||||||||||
Beginning balance | $ | — | $ | 7,972 | ||||||||||||||||
Total gains or (losses) included in earnings (or other comprehensive loss) | — | (468 | ) | |||||||||||||||||
Transfers in and/or out of Level 3 | — | (7,504 | ) | |||||||||||||||||
Ending balance | $ | — | $ | — | ||||||||||||||||
The amount of total gains or (losses) for the period included in earnings (or other comprehensive loss) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date | $ | — | $ | — | ||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||
Reconciliation of Liabilities: | Junior | Junior | ||||||||||||||||||
Subordinated | Subordinated | |||||||||||||||||||
Debt | Debt | |||||||||||||||||||
Beginning balance | $ | 10,068 | $ | 9,027 | ||||||||||||||||
Total gains (losses) included in earnings (or changes in net assets) | 776 | 774 | ||||||||||||||||||
Transfers in and/or out of Level 3 | 281 | 267 | ||||||||||||||||||
Ending balance | $ | 11,125 | $ | 10,068 | ||||||||||||||||
The amount of total gains (losses) for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses and accrued interest relating to liabilities still held at the reporting date | $ | 776 | $ | 774 | ||||||||||||||||
Description of the Valuation Technique, Unobservable Input, and Qualitative Information about the Unobservable Inputs for the Company's Assets and Liabilities Classified as Level 3 and Measured at Fair Value on a Recurring Basis | ' | |||||||||||||||||||
The following table provides a description of the valuation technique, unobservable input, and qualitative information about the unobservable inputs for the Company’s liabilities classified as Level 3 and measured at fair value on a recurring basis at December 31, 2013 and 2012: | ||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||
Financial Instrument | Valuation Technique | Unobservable Input | Weighted Average | Financial Instrument | Valuation Technique | Unobservable Input | Weighted Average | |||||||||||||
Subordinated Debt | Discounted cash flow | Discount Rate | 8.19% | Subordinated Debt | Discounted cash flow | Discount Rate | 7.23% |
Regulatory_Matters_Tables
Regulatory Matters (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Banking and Thrift [Abstract] | ' | |||||||||||||||
Capital Requirements under Banking Regulations | ' | |||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy require insured institutions to maintain a minimum leverage ratio of Tier 1 capital (the sum of common stockholders' equity, noncumulative perpetual preferred stock and minority interests in consolidated subsidiaries, minus intangible assets, identified losses and investments in certain subsidiaries, plus unrealized losses or minus unrealized gains on available for sale securities) to total assets. Institutions which have received the highest composite regulatory rating and which are not experiencing or anticipating significant growth are required to maintain a minimum leverage capital ratio of 3% of Tier 1 capital to total assets. All other institutions are required to maintain a minimum leverage capital ratio of at least 100 to 200 basis points above the 3% minimum requirement. | ||||||||||||||||
To Be Well Capitalized Under | ||||||||||||||||
Actual | For Capital | Prompt Corrective | ||||||||||||||
Adequacy Purposes | Action Provisions | |||||||||||||||
(In thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||
As of December 31, 2013 (Company): | ||||||||||||||||
Total Capital (to Risk Weighted Assets) | $ | 77,530 | 17.2 | % | $ | 36,061 | 8 | % | N/A | N/A | ||||||
Tier 1 Capital (to Risk Weighted Assets) | 71,827 | 15.93 | % | 18,031 | 4 | % | N/A | N/A | ||||||||
Tier 1 Capital (to Average Assets) | 71,827 | 11.19 | % | 25,672 | 4 | % | N/A | N/A | ||||||||
As of December 31, 2013 (Bank): | ||||||||||||||||
Total Capital (to Risk Weighted Assets) | $ | 78,499 | 17.41 | % | $ | 36,061 | 8 | % | $ | 45,077 | 10 | % | ||||
Tier 1 Capital (to Risk Weighted Assets) | 72,796 | 16.15 | % | 18,031 | 4 | % | 27,046 | 6 | % | |||||||
Tier 1 Capital (to Average Assets) | 72,796 | 11.43 | % | 25,484 | 4 | % | 31,855 | 5 | % | |||||||
As of December 31, 2012 - (Company): | ||||||||||||||||
Total Capital (to Risk Weighted Assets) | $ | 71,436 | 15.49 | % | $ | 36,892 | 8 | % | N/A | N/A | ||||||
Tier 1 Capital (to Risk Weighted Assets) | 65,742 | 14.26 | % | 18,446 | 4 | % | N/A | N/A | ||||||||
Tier 1 Capital (to Average Assets) | 65,742 | 10.66 | % | 24,671 | 4 | % | N/A | N/A | ||||||||
As of December 31, 2012 – (Bank): | ||||||||||||||||
Total Capital (to Risk Weighted Assets) | $ | 73,296 | 15.77 | % | $ | 37,175 | 8 | % | $ | 46,468 | 10 | % | ||||
Tier 1 Capital (to Risk Weighted Assets) | 67,558 | 14.54 | % | 18,587 | 4 | % | 27,168 | 6 | % | |||||||
Tier 1 Capital (to Average Assets) | 67,558 | 10.95 | % | 24,671 | 4 | % | 30,838 | 5 | % | |||||||
Supplemental_Cash_Flow_Disclos1
Supplemental Cash Flow Disclosures (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Supplemental Cash Flow Information [Abstract] | ' | |||||||
Supplemental Cash Flow Disclosures | ' | |||||||
Year Ended December 31, | ||||||||
(In thousands) | 2013 | 2012 | ||||||
Cash paid (received) during the period for: | ||||||||
Interest | $ | 1,356 | $ | 2,101 | ||||
Income Taxes | (3,679 | ) | (89 | ) | ||||
Noncash investing activities: | ||||||||
Loans transferred to foreclosed property | 437 | 1,999 | ||||||
Financed OREO | 2,328 | 508 | ||||||
Extinguishment of Note Payable | — | 83 | ||||||
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Computation of Income Per Share | ' | |||||||
The following table provides a reconciliation of the numerator and the denominator of the basic EPS computation with the numerator and the denominator of the diluted EPS computation. (Weighted average shares have been adjusted to give retroactive recognition for the 1% stock dividend for each of the quarters since the third quarter ended September 30, 2008): | ||||||||
Year Ended December 31, | ||||||||
(In thousands, except earnings per share data) | 2013 | 2012 | ||||||
Net income available to common shareholders | $ | 7,269 | $ | 6,069 | ||||
Weighted average shares outstanding | 14,798,135 | 14,789,001 | ||||||
Add: dilutive effect of stock options | 902 | — | ||||||
Weighted average shares outstanding adjusted for potential dilution | 14,799,037 | 14,789,001 | ||||||
Basic earnings per share | $ | 0.49 | $ | 0.41 | ||||
Diluted earnings per share | $ | 0.49 | $ | 0.41 | ||||
Anti-dilutive shares excluded from earnings per share calculation | 189,000 | 192,000 | ||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Goodwill and Intangible Assets | ' | |||||||
At December 31, 2013, the Company had $4,488,000 of goodwill and $62,000 of core deposit intangibles. The following table summarizes the carrying value of those assets at December 31, 2013 and 2012. | ||||||||
(In thousands) | December 31, 2013 | December 31, 2012 | ||||||
Goodwill | $ | 4,488 | $ | 4,488 | ||||
Core deposit intangible assets | 62 | 249 | ||||||
Total goodwill and intangible assets | $ | 4,550 | $ | 4,737 | ||||
Amortization and Impairment Losses of Intangible Assets and Goodwill | ' | |||||||
Core deposit intangibles and other identified intangible assets are amortized over their useful lives, while goodwill is not amortized. The Company conducts periodic impairment analysis on goodwill and intangible assets and goodwill at least annually or more often as conditions require. The following table summarizes the amortization expense and impairment losses recorded on the Company’s intangible assets and goodwill for the years ended December 31, 2013 and 2012. | ||||||||
(In thousands) | December 31, 2013 | December 31, 2012 | ||||||
Amortization expense - core deposit intangibles | $ | 187 | $ | 198 | ||||
Amortization expense - other intangibles | — | 106 | ||||||
Total amortization expense | $ | 187 | $ | 304 | ||||
Impairment losses - core deposit intangibles | $ | — | $ | — | ||||
Impairment losses - goodwill | — | — | ||||||
Total impairment losses | $ | — | $ | — | ||||
Parent_Company_Only_Financial_1
Parent Company Only Financial Statements (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | |||||||
Condensed Financial Statements of Parent | ' | |||||||
The following are the condensed financial statements of United Security Bancshares and should be read in conjunction with the consolidated financial statements: | ||||||||
United Security Bancshares – (parent only) | ||||||||
Balance Sheets - December 31, 2013 and 2012. | ||||||||
(In thousands) | 2013 | 2012 | ||||||
Assets | ||||||||
Cash and equivalents | $ | 66 | $ | 296 | ||||
Investment in bank subsidiary | 87,775 | 79,969 | ||||||
Other assets | 2,298 | 562 | ||||||
Total assets | 90,139 | 80,827 | ||||||
Liabilities & Shareholders' Equity | ||||||||
Liabilities: | ||||||||
Junior subordinated debt securities (at fair value) | 11,125 | 10,068 | ||||||
Deferred taxes | 2,471 | 1,239 | ||||||
Other liabilities | — | 79 | ||||||
Total liabilities | 13,596 | 11,386 | ||||||
Shareholders' Equity: | ||||||||
Common stock, no par value 20,000,000 shares authorized, 14,799,888 and 14,217,303 issued and outstanding, in 2013 and 2012 | 45,778 | 43,173 | ||||||
Retained earnings | 30,884 | 26,179 | ||||||
Accumulated other comprehensive (loss) income | (119 | ) | 89 | |||||
Total shareholders' equity | 76,543 | 69,441 | ||||||
Total liabilities and shareholders' equity | $ | 90,139 | $ | 80,827 | ||||
United Security Bancshares – (parent only) | Year ended December 31, | |||||||
Income Statements | ||||||||
(In thousands) | 2013 | 2012 | ||||||
Income | ||||||||
Loss on fair value option of financial assets | $ | (776 | ) | $ | (774 | ) | ||
Total (loss) income | (776 | ) | (774 | ) | ||||
Expense | ||||||||
Interest expense | 281 | 270 | ||||||
Other expense | 159 | 201 | ||||||
Total expense | 440 | 471 | ||||||
(Loss) Income before taxes and equity in undistributed income of subsidiary | (1,216 | ) | (1,245 | ) | ||||
Income tax benefit | (500 | ) | (512 | ) | ||||
Undistributed income of subsidiary | 7,985 | 6,802 | ||||||
Net Income | $ | 7,269 | $ | 6,069 | ||||
United Security Bancshares – (parent only) | Year ended December 31, | |||||||
Statement of Cash Flows | ||||||||
(In thousands) | 2013 | 2012 | ||||||
Cash Flows From Operating Activities | ||||||||
Net income (loss) | $ | 7,269 | $ | 6,069 | ||||
Adjustments to reconcile net income (loss) to cash provided by operating activities: | ||||||||
Equity in undistributed income of subsidiary | (7,985 | ) | (6,802 | ) | ||||
Deferred taxes | 1,232 | (376 | ) | |||||
Write-down of other investments | — | 68 | ||||||
Loss on fair value option of financial liability | 776 | 774 | ||||||
Increase in income tax receivable | (1,732 | ) | — | |||||
Net change in other assets/liabilities | 198 | 243 | ||||||
Net cash (used in) operating activities | (242 | ) | (24 | ) | ||||
Cash Flows From Investing Activities | ||||||||
Investment in bank stock | — | 9 | ||||||
Net cash provided by investing activities | — | 9 | ||||||
Cash Flows From Financing Activities | ||||||||
Proceeds from exercise of stock options | 12 | — | ||||||
Proceeds from sale investment in bank stock | — | 295 | ||||||
Net cash provided by financing activities | 12 | 295 | ||||||
Net increase (decrease) in cash and cash equivalents | (230 | ) | 280 | |||||
Cash and cash equivalents at beginning of year | 296 | 16 | ||||||
Cash and cash equivalents at end of year | $ | 66 | $ | 296 | ||||
Supplemental cash flow disclosures | ||||||||
Non-cash financing activities: | ||||||||
Dividends declared not paid | $ | — | $ | — | ||||
Organization_and_Summary_of_Si3
Organization and Summary of Significant Accounting and Reporting Policies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Jul. 23, 2007 | |
segment | |||
Department | |||
office | |||
Branch | |||
Basis of Presentation [Abstract] | ' | ' | ' |
Number of operating segments | 1 | ' | ' |
Nature of Operations [Abstract] | ' | ' | ' |
Amount issued in trust preferred securities | ' | ' | $15,000,000 |
Real estate secured loans | 133,000,000 | ' | ' |
Number of branches | 11 | ' | ' |
Number of construction lending offices | 1 | ' | ' |
Number of financial services departments | 1 | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Impairment loss on intangible assets | 0 | 0 | ' |
Estimated aggregate amortization expense related to intangible assets [Abstract] | ' | ' | ' |
2014 | 62,000 | ' | ' |
Total | 62,000 | ' | ' |
Goodwill | 4,488,000 | 4,488,000 | ' |
Advertising Costs [Abstract] | ' | ' | ' |
Advertising expense | 92,000 | 86,000 | ' |
Stock Based Compensation [Abstract] | ' | ' | ' |
Share-based Compensation | 29,000 | 18,000 | ' |
Taft National Bank [Member] | ' | ' | ' |
Estimated aggregate amortization expense related to intangible assets [Abstract] | ' | ' | ' |
Goodwill | 1,600,000 | ' | ' |
Legacy Bank [Member] | ' | ' | ' |
Estimated aggregate amortization expense related to intangible assets [Abstract] | ' | ' | ' |
Goodwill | 2,900,000 | ' | ' |
Core Deposits [Member] | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Core deposit intangible assets | 62,000 | 249,000 | ' |
Accumulated amortization and impairment losses | 6,934,000 | 6,747,000 | ' |
Estimated life of intangible asset | '7 years | ' | ' |
Impairment loss on intangible assets | 0 | 0 | ' |
Core Deposits [Member] | Legacy Bank [Member] | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Core deposit intangible assets | $0 | ' | ' |
Buildings [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Estimated useful life | '31 years | ' | ' |
Furniture and Equipment [Member] | Minimum [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Estimated useful life | '3 years | ' | ' |
Furniture and Equipment [Member] | Maximum [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Estimated useful life | '7 years | ' | ' |
Investment_Securities_Details
Investment Securities (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
segment | ||
Comparison of amortized cost and fair value of securities available for sale [Abstract] | ' | ' |
Amortized Cost | $43,089,000 | $30,699,000 |
Gross Unrealized Gains | 875,000 | 1,184,000 |
Gross Unrealized Losses | -348,000 | -39,000 |
Fair Value (Carrying Amount) | 43,616,000 | 31,844,000 |
Realized losses on sales of available-for-sale securities | 0 | 195,000 |
Realized gains on sales of available-for-sale securities | 0 | 0 |
Amortized Cost [Abstract] | ' | ' |
Due in one year or less | 4,000,000 | ' |
Due after one year through five years | 69,000 | ' |
Due after five years through ten years | 0 | ' |
Due after ten years | 13,991,000 | ' |
U.S. Government sponsored entities & agencies collateralized by mortgage obligations | 25,029,000 | ' |
Amortized Cost | 43,089,000 | 30,699,000 |
Fair Value (Carrying Amount) [Abstract] | ' | ' |
Due in one year or less | 3,730,000 | ' |
Due after one year through five years | 74,000 | ' |
Due after five years through ten years | 0 | ' |
Due after ten years | 14,426,000 | ' |
U.S. Government sponsored entities & agencies collateralized by mortgage obligations | 25,386,000 | ' |
Fair Value (Carrying Amount) | 43,616,000 | 31,844,000 |
Amortized cost - before OTTI | 23,935,000 | 26,695,000 |
Fair value of available-for-sale securities pledged as collateral for FHLB borrowings | 24,739,000 | 27,878,000 |
Held-to-maturity securities | 0 | 0 |
Trading securities | 0 | 0 |
Summarizes temporarily impaired investment securities [Abstract] | ' | ' |
Less than 12 Months, Fair Value (Carrying Amount) | 11,069,000 | 3,961,000 |
Less than 12, Unrealized Losses | -78,000 | -39,000 |
12 Months or More, Fair Value (Carrying Amount) | 3,730,000 | 0 |
12 Months or More, Unrealized Losses | -270,000 | 0 |
Total Fair Value (Carrying Amount) | 14,799,000 | 3,961,000 |
Total Unrealized Losses | -348,000 | -39,000 |
Number of general segments for the segregation of portfolio | 2 | ' |
U.S. Government Agencies [Member] | ' | ' |
Comparison of amortized cost and fair value of securities available for sale [Abstract] | ' | ' |
Amortized Cost | 14,060,000 | 6,113,000 |
Gross Unrealized Gains | 441,000 | 487,000 |
Gross Unrealized Losses | 0 | 0 |
Fair Value (Carrying Amount) | 14,501,000 | 6,600,000 |
Amortized Cost [Abstract] | ' | ' |
Amortized Cost | 14,060,000 | 6,113,000 |
Summarizes temporarily impaired investment securities [Abstract] | ' | ' |
Less than 12 Months, Fair Value (Carrying Amount) | 0 | 0 |
Less than 12, Unrealized Losses | 0 | 0 |
12 Months or More, Fair Value (Carrying Amount) | 0 | 0 |
12 Months or More, Unrealized Losses | 0 | 0 |
Total Fair Value (Carrying Amount) | 0 | 0 |
Total Unrealized Losses | 0 | 0 |
U.S. Government Collateralized Mortgage Obligations [Member] | ' | ' |
Comparison of amortized cost and fair value of securities available for sale [Abstract] | ' | ' |
Amortized Cost | 25,029,000 | 20,586,000 |
Gross Unrealized Gains | 434,000 | 697,000 |
Gross Unrealized Losses | -78,000 | 0 |
Fair Value (Carrying Amount) | 25,385,000 | 21,283,000 |
Amortized Cost [Abstract] | ' | ' |
Amortized Cost | 25,029,000 | 20,586,000 |
Summarizes temporarily impaired investment securities [Abstract] | ' | ' |
Less than 12 Months, Fair Value (Carrying Amount) | 11,069,000 | 0 |
Less than 12, Unrealized Losses | -78,000 | 0 |
12 Months or More, Fair Value (Carrying Amount) | 0 | 0 |
12 Months or More, Unrealized Losses | 0 | 0 |
Total Fair Value (Carrying Amount) | 11,069,000 | 0 |
Total Unrealized Losses | -78,000 | 0 |
Number of impaired securities | 5 | ' |
Mutual Funds [Member] | ' | ' |
Comparison of amortized cost and fair value of securities available for sale [Abstract] | ' | ' |
Amortized Cost | 4,000,000 | 4,000,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | -270,000 | -39,000 |
Fair Value (Carrying Amount) | 3,730,000 | 3,961,000 |
Amortized Cost [Abstract] | ' | ' |
Amortized Cost | 4,000,000 | 4,000,000 |
Summarizes temporarily impaired investment securities [Abstract] | ' | ' |
Less than 12 Months, Fair Value (Carrying Amount) | 0 | 3,961,000 |
Less than 12, Unrealized Losses | 0 | -39,000 |
12 Months or More, Fair Value (Carrying Amount) | 3,730,000 | 0 |
12 Months or More, Unrealized Losses | -270,000 | 0 |
Total Fair Value (Carrying Amount) | 3,730,000 | 3,961,000 |
Total Unrealized Losses | ($270,000) | ($39,000) |
Number of impaired securities | 1 | 1 |
Loans_Details
Loans (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total Loans | $395,317 | $400,057 |
Loans to directors, officers, principal shareholders and their affiliates [Roll Forward] | ' | ' |
Aggregate amount outstanding, beginning of year | 3,330 | 3,244 |
New loans or advances during year | 1,098 | 2,043 |
Repayments during year | -1,512 | -1,957 |
Aggregate amount outstanding, end of year | 2,916 | 3,330 |
Loan commitments | 3,930 | 2,916 |
Minimum [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Maturity period | '3 years | ' |
Maximum [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Maturity period | '15 years | ' |
Commitments to Extend Credit [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Financial instrument commitments | 63,271 | 60,050 |
Standby Letters of Credit [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Financial instrument commitments | 2,001 | 2,504 |
Commercial and Business Loans [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total Loans | 68,460 | 69,780 |
Government Program Loans [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total Loans | 2,226 | 2,337 |
Total Commercial and Industrial [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total Loans | 70,686 | 72,117 |
Percentage of total loans (in hundredths) | 17.90% | ' |
Commercial Real Estate Loans [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total Loans | 143,919 | 133,599 |
Residential Mortgages [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total Loans | 52,036 | 55,016 |
Home Improvement and Home Equity Loans [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total Loans | 1,410 | 1,319 |
Total Real Estate Mortgage [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total Loans | 197,365 | 189,934 |
Percentage of total loans (in hundredths) | 49.90% | ' |
RE Construction and Development Loans [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total Loans | 87,004 | 90,941 |
Percentage of total loans (in hundredths) | 22.00% | ' |
Agricultural Loans [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total Loans | 30,932 | 36,169 |
Percentage of total loans (in hundredths) | 7.80% | ' |
Installment [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total Loans | 9,330 | 10,884 |
Lease Financing [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total Loans | $0 | $12 |
Loans_Part_II_Details
Loans, Part II (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
payment | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Loans 30-60 Days Past Due | $2,087 | $4,062 |
Loans 61-89 Days Past Due | 708 | 2,762 |
Loans 90 or More Days Past Due | 7,445 | 6,021 |
Total Past Due Loans | 10,240 | 12,845 |
Current Loans | 385,077 | 387,212 |
Total Loans | 395,317 | 400,057 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Minimum period of default | '90 days | ' |
Number of monthly payments to demonstrate repayment ability | 6 | ' |
Nonaccrual loans balances [Abstract] | ' | ' |
Total Loans | 12,341 | 13,425 |
Commercial and Business Loans [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Loans 30-60 Days Past Due | 0 | 65 |
Loans 61-89 Days Past Due | 94 | 0 |
Loans 90 or More Days Past Due | 0 | 256 |
Total Past Due Loans | 94 | 321 |
Current Loans | 68,366 | 69,459 |
Total Loans | 68,460 | 69,780 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Nonaccrual loans balances [Abstract] | ' | ' |
Total Loans | 0 | 1,093 |
Government Program Loans [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Loans 30-60 Days Past Due | 0 | 88 |
Loans 61-89 Days Past Due | 0 | 0 |
Loans 90 or More Days Past Due | 0 | 0 |
Total Past Due Loans | 0 | 88 |
Current Loans | 2,226 | 2,249 |
Total Loans | 2,226 | 2,337 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Nonaccrual loans balances [Abstract] | ' | ' |
Total Loans | 0 | 88 |
Total Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Loans 30-60 Days Past Due | 0 | 153 |
Loans 61-89 Days Past Due | 94 | 0 |
Loans 90 or More Days Past Due | 0 | 256 |
Total Past Due Loans | 94 | 409 |
Current Loans | 70,592 | 71,708 |
Total Loans | 70,686 | 72,117 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Nonaccrual loans balances [Abstract] | ' | ' |
Total Loans | 0 | 1,181 |
Commercial Real Estate Loans [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Loans 30-60 Days Past Due | 1,991 | 3,152 |
Loans 61-89 Days Past Due | 0 | 2,130 |
Loans 90 or More Days Past Due | 6,866 | 5,328 |
Total Past Due Loans | 8,857 | 10,610 |
Current Loans | 135,062 | 122,989 |
Total Loans | 143,919 | 133,599 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Nonaccrual loans balances [Abstract] | ' | ' |
Total Loans | 10,188 | 8,415 |
Residential Mortgages [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Loans 30-60 Days Past Due | 0 | 333 |
Loans 61-89 Days Past Due | 614 | 322 |
Loans 90 or More Days Past Due | 359 | 437 |
Total Past Due Loans | 973 | 1,092 |
Current Loans | 51,063 | 53,924 |
Total Loans | 52,036 | 55,016 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Nonaccrual loans balances [Abstract] | ' | ' |
Total Loans | 1,685 | 1,834 |
Home Improvement and Home Equity Loans [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Loans 30-60 Days Past Due | 96 | 119 |
Loans 61-89 Days Past Due | 0 | 140 |
Loans 90 or More Days Past Due | 0 | 0 |
Total Past Due Loans | 96 | 259 |
Current Loans | 1,314 | 1,060 |
Total Loans | 1,410 | 1,319 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Nonaccrual loans balances [Abstract] | ' | ' |
Total Loans | 0 | 10 |
Total Real Estate Mortgage [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Loans 30-60 Days Past Due | 2,087 | 3,604 |
Loans 61-89 Days Past Due | 614 | 2,592 |
Loans 90 or More Days Past Due | 7,225 | 5,765 |
Total Past Due Loans | 9,926 | 11,961 |
Current Loans | 187,439 | 177,973 |
Total Loans | 197,365 | 189,934 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Nonaccrual loans balances [Abstract] | ' | ' |
Total Loans | 11,873 | 10,259 |
RE Construction and Development Loans [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Loans 30-60 Days Past Due | 0 | 0 |
Loans 61-89 Days Past Due | 0 | 0 |
Loans 90 or More Days Past Due | 220 | 0 |
Total Past Due Loans | 220 | 0 |
Current Loans | 86,784 | 90,941 |
Total Loans | 87,004 | 90,941 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Nonaccrual loans balances [Abstract] | ' | ' |
Total Loans | 468 | 1,730 |
Agricultural Loans [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Loans 30-60 Days Past Due | 0 | 0 |
Loans 61-89 Days Past Due | 0 | 136 |
Loans 90 or More Days Past Due | 0 | 0 |
Total Past Due Loans | 0 | 136 |
Current Loans | 30,932 | 36,033 |
Total Loans | 30,932 | 36,169 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Nonaccrual loans balances [Abstract] | ' | ' |
Total Loans | 0 | 136 |
Consumer Loans [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Loans 30-60 Days Past Due | 0 | 305 |
Loans 61-89 Days Past Due | 0 | 34 |
Loans 90 or More Days Past Due | 0 | 0 |
Total Past Due Loans | 0 | 339 |
Current Loans | 9,086 | 10,300 |
Total Loans | 9,086 | 10,639 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Nonaccrual loans balances [Abstract] | ' | ' |
Total Loans | 0 | 119 |
Overdraft Protection Lines [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Loans 30-60 Days Past Due | 0 | 0 |
Loans 61-89 Days Past Due | 0 | 0 |
Loans 90 or More Days Past Due | 0 | 0 |
Total Past Due Loans | 0 | 0 |
Current Loans | 87 | 90 |
Total Loans | 87 | 90 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Overdrafts [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Loans 30-60 Days Past Due | 0 | 0 |
Loans 61-89 Days Past Due | 0 | 0 |
Loans 90 or More Days Past Due | 0 | 0 |
Total Past Due Loans | 0 | 0 |
Current Loans | 157 | 155 |
Total Loans | 157 | 155 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Total Installment [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Loans 30-60 Days Past Due | 0 | 305 |
Loans 61-89 Days Past Due | 0 | 34 |
Loans 90 or More Days Past Due | 0 | 0 |
Total Past Due Loans | 0 | 339 |
Current Loans | 9,330 | 10,545 |
Total Loans | 9,330 | 10,884 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Nonaccrual loans balances [Abstract] | ' | ' |
Total Loans | 0 | 119 |
Lease Financing [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Loans 30-60 Days Past Due | 0 | 0 |
Loans 61-89 Days Past Due | 0 | 0 |
Loans 90 or More Days Past Due | 0 | 0 |
Total Past Due Loans | 0 | 0 |
Current Loans | 0 | 12 |
Total Loans | 0 | 12 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Nonaccrual loans balances [Abstract] | ' | ' |
Total Loans | $0 | $0 |
Loans_Part_III_Details
Loans, Part III (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid Contractual Principal Balance | $18,102 | $22,834 |
Recorded Investment With No Allowance | 12,672 | 13,452 |
Recorded Investment With Allowance | 5,460 | 8,479 |
Total Recorded Investment | 18,132 | 21,931 |
Related Allowance | 762 | 658 |
Average Recorded Investment | 20,111 | 27,039 |
Interest Recognized | 569 | 468 |
Commercial and Business Loans [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid Contractual Principal Balance | 675 | 1,488 |
Recorded Investment With No Allowance | 275 | 767 |
Recorded Investment With Allowance | 402 | 576 |
Total Recorded Investment | 677 | 1,343 |
Related Allowance | 9 | 37 |
Average Recorded Investment | 831 | 5,468 |
Interest Recognized | 52 | 26 |
Government Program Loans [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid Contractual Principal Balance | 0 | 109 |
Recorded Investment With No Allowance | 0 | 88 |
Recorded Investment With Allowance | 0 | 0 |
Total Recorded Investment | 0 | 88 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 35 | 147 |
Interest Recognized | 0 | 0 |
Total Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid Contractual Principal Balance | 675 | 1,597 |
Recorded Investment With No Allowance | 275 | 855 |
Recorded Investment With Allowance | 402 | 576 |
Total Recorded Investment | 677 | 1,431 |
Related Allowance | 9 | 37 |
Average Recorded Investment | 866 | 5,615 |
Interest Recognized | 52 | 26 |
Commercial Real Estate Loans [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid Contractual Principal Balance | 10,188 | 11,393 |
Recorded Investment With No Allowance | 8,721 | 6,818 |
Recorded Investment With Allowance | 1,468 | 4,237 |
Total Recorded Investment | 10,189 | 11,055 |
Related Allowance | 415 | 436 |
Average Recorded Investment | 10,671 | 8,498 |
Interest Recognized | 232 | 135 |
Residential Mortgages [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid Contractual Principal Balance | 5,375 | 7,461 |
Recorded Investment With No Allowance | 1,794 | 3,726 |
Recorded Investment With Allowance | 3,590 | 3,666 |
Total Recorded Investment | 5,384 | 7,392 |
Related Allowance | 338 | 185 |
Average Recorded Investment | 6,139 | 4,416 |
Interest Recognized | 211 | 251 |
Home Improvement and Home Equity Loans [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid Contractual Principal Balance | 0 | 10 |
Recorded Investment With No Allowance | 0 | 10 |
Recorded Investment With Allowance | 0 | 0 |
Total Recorded Investment | 0 | 10 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 13 | 21 |
Interest Recognized | 0 | 0 |
Total Real Estate Mortgage [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid Contractual Principal Balance | 15,563 | 18,864 |
Recorded Investment With No Allowance | 10,515 | 10,554 |
Recorded Investment With Allowance | 5,058 | 7,903 |
Total Recorded Investment | 15,573 | 18,457 |
Related Allowance | 753 | 621 |
Average Recorded Investment | 16,823 | 12,935 |
Interest Recognized | 443 | 386 |
RE Construction and Development Loans [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid Contractual Principal Balance | 1,772 | 1,730 |
Recorded Investment With No Allowance | 1,789 | 1,730 |
Recorded Investment With Allowance | 0 | 0 |
Total Recorded Investment | 1,789 | 1,730 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 2,266 | 7,298 |
Interest Recognized | 60 | 0 |
Agricultural Loans [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid Contractual Principal Balance | 44 | 504 |
Recorded Investment With No Allowance | 45 | 192 |
Recorded Investment With Allowance | 0 | 0 |
Total Recorded Investment | 45 | 192 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 84 | 991 |
Interest Recognized | 10 | 50 |
Consumer Loans [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid Contractual Principal Balance | 48 | 139 |
Recorded Investment With No Allowance | 48 | 121 |
Recorded Investment With Allowance | 0 | 0 |
Total Recorded Investment | 48 | 121 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 72 | 200 |
Interest Recognized | 4 | 6 |
Total Installment [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid Contractual Principal Balance | 48 | 139 |
Recorded Investment With No Allowance | 48 | 121 |
Recorded Investment With Allowance | 0 | 0 |
Total Recorded Investment | 48 | 121 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 72 | 200 |
Interest Recognized | $4 | $6 |
Loans_Part_IV_Details
Loans, Part IV (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
contract | contract | |
loan | loan | |
Troubled Debt Restructurings [Abstract] | ' | ' |
Number of Contracts | 42 | 28 |
Pre- Modification Outstanding Recorded Investment | $1,082 | $4,624 |
Post- Modification Outstanding Recorded Investment | 1,352 | 4,560 |
Number of Contracts in Default | 1 | 0 |
Recorded Investment on Defaulted TDRs | 106 | 0 |
Financing Receivable, Modifications, Recorded Investment [Roll Forward] | ' | ' |
Beginning balance | 16,773 | 19,050 |
Defaults | -106 | 0 |
Additions | 4,491 | 4,560 |
Principal reductions | -12,099 | -6,837 |
Ending balance | 9,059 | 16,773 |
Allowance for loan loss | 762 | 611 |
Number of restructured loans | 35 | 58 |
Total restructured loans | 9,059 | 16,773 |
Commercial and Business Loans [Member] | ' | ' |
Troubled Debt Restructurings [Abstract] | ' | ' |
Number of Contracts | 0 | 3 |
Pre- Modification Outstanding Recorded Investment | 0 | 320 |
Post- Modification Outstanding Recorded Investment | 0 | 303 |
Number of Contracts in Default | 0 | 0 |
Recorded Investment on Defaulted TDRs | 0 | 0 |
Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Modifications, Recorded Investment [Roll Forward] | ' | ' |
Beginning balance | 990 | 1,507 |
Defaults | 0 | 0 |
Additions | 0 | 391 |
Principal reductions | -315 | -908 |
Ending balance | 675 | 990 |
Allowance for loan loss | 9 | 152 |
Government Program Loans [Member] | ' | ' |
Troubled Debt Restructurings [Abstract] | ' | ' |
Number of Contracts | 0 | 1 |
Pre- Modification Outstanding Recorded Investment | 0 | 103 |
Post- Modification Outstanding Recorded Investment | 0 | 88 |
Number of Contracts in Default | 0 | 0 |
Recorded Investment on Defaulted TDRs | 0 | 0 |
Commercial Real Estate Term Loans [Member] | ' | ' |
Troubled Debt Restructurings [Abstract] | ' | ' |
Number of Contracts | 0 | 4 |
Pre- Modification Outstanding Recorded Investment | 0 | 2,535 |
Post- Modification Outstanding Recorded Investment | 0 | 2,506 |
Number of Contracts in Default | 1 | 0 |
Recorded Investment on Defaulted TDRs | 106 | 0 |
Commercial Real Estate [Member] | ' | ' |
Financing Receivable, Modifications, Recorded Investment [Roll Forward] | ' | ' |
Beginning balance | 5,395 | 5,174 |
Defaults | -106 | 0 |
Additions | 0 | 2,506 |
Principal reductions | -3,821 | -2,285 |
Ending balance | 1,468 | 5,395 |
Allowance for loan loss | 415 | 325 |
Residential Mortgage [Member] | ' | ' |
Financing Receivable, Modifications, Recorded Investment [Roll Forward] | ' | ' |
Beginning balance | 7,289 | 7,689 |
Defaults | 0 | 0 |
Additions | 0 | 323 |
Principal reductions | -2,016 | -723 |
Ending balance | 5,273 | 7,289 |
Allowance for loan loss | 338 | 128 |
Single Family Residential Loans [Member] | ' | ' |
Troubled Debt Restructurings [Abstract] | ' | ' |
Number of Contracts | 0 | 2 |
Pre- Modification Outstanding Recorded Investment | 0 | 324 |
Post- Modification Outstanding Recorded Investment | 0 | 323 |
Number of Contracts in Default | 0 | 0 |
Recorded Investment on Defaulted TDRs | 0 | 0 |
Home Improvement and Home Equity Loans [Member] | ' | ' |
Troubled Debt Restructurings [Abstract] | ' | ' |
Number of Contracts | 0 | 1 |
Pre- Modification Outstanding Recorded Investment | 0 | 0 |
Post- Modification Outstanding Recorded Investment | 0 | 0 |
Number of Contracts in Default | 0 | 0 |
Recorded Investment on Defaulted TDRs | 0 | 0 |
Financing Receivable, Modifications, Recorded Investment [Roll Forward] | ' | ' |
Beginning balance | 10 | 36 |
Defaults | 0 | 0 |
Additions | 44 | 0 |
Principal reductions | -54 | -26 |
Ending balance | 0 | 10 |
Allowance for loan loss | 0 | 0 |
RE Construction and Development Loans [Member] | ' | ' |
Troubled Debt Restructurings [Abstract] | ' | ' |
Number of Contracts | 41 | 14 |
Pre- Modification Outstanding Recorded Investment | 1,034 | 1,130 |
Post- Modification Outstanding Recorded Investment | 1,304 | 1,130 |
Number of Contracts in Default | 0 | 0 |
Recorded Investment on Defaulted TDRs | 0 | 0 |
Financing Receivable, Modifications, Recorded Investment [Roll Forward] | ' | ' |
Beginning balance | 2,860 | 4,550 |
Defaults | 0 | 0 |
Additions | 4,399 | 1,130 |
Principal reductions | -5,708 | -2,820 |
Ending balance | 1,551 | 2,860 |
Allowance for loan loss | 0 | 6 |
Agricultural Loans [Member] | ' | ' |
Troubled Debt Restructurings [Abstract] | ' | ' |
Number of Contracts | 0 | 2 |
Pre- Modification Outstanding Recorded Investment | 0 | 192 |
Post- Modification Outstanding Recorded Investment | 0 | 191 |
Number of Contracts in Default | 0 | 0 |
Recorded Investment on Defaulted TDRs | 0 | 0 |
Financing Receivable, Modifications, Recorded Investment [Roll Forward] | ' | ' |
Beginning balance | 191 | 60 |
Defaults | 0 | 0 |
Additions | 0 | 191 |
Principal reductions | -147 | -60 |
Ending balance | 44 | 191 |
Allowance for loan loss | 0 | 0 |
Consumer Loans [Member] | ' | ' |
Troubled Debt Restructurings [Abstract] | ' | ' |
Number of Contracts | 1 | 1 |
Pre- Modification Outstanding Recorded Investment | 48 | 20 |
Post- Modification Outstanding Recorded Investment | 48 | 19 |
Number of Contracts in Default | 0 | 0 |
Recorded Investment on Defaulted TDRs | 0 | 0 |
Overdraft Protection Lines [Member] | ' | ' |
Troubled Debt Restructurings [Abstract] | ' | ' |
Number of Contracts | 0 | 0 |
Pre- Modification Outstanding Recorded Investment | 0 | 0 |
Post- Modification Outstanding Recorded Investment | 0 | 0 |
Number of Contracts in Default | 0 | 0 |
Recorded Investment on Defaulted TDRs | 0 | 0 |
Installment & Other [Member] | ' | ' |
Financing Receivable, Modifications, Recorded Investment [Roll Forward] | ' | ' |
Beginning balance | 38 | 34 |
Defaults | 0 | 0 |
Additions | 48 | 19 |
Principal reductions | -38 | -15 |
Ending balance | 48 | 38 |
Allowance for loan loss | 0 | 0 |
Lease Financing [Member] | ' | ' |
Troubled Debt Restructurings [Abstract] | ' | ' |
Number of Contracts | 0 | 0 |
Pre- Modification Outstanding Recorded Investment | 0 | 0 |
Post- Modification Outstanding Recorded Investment | 0 | 0 |
Number of Contracts in Default | 0 | 0 |
Recorded Investment on Defaulted TDRs | 0 | 0 |
Financing Receivable, Modifications, Recorded Investment [Roll Forward] | ' | ' |
Beginning balance | 0 | 0 |
Defaults | 0 | 0 |
Additions | 0 | 0 |
Principal reductions | 0 | 0 |
Ending balance | 0 | 0 |
Allowance for loan loss | $0 | $0 |
Loans_Part_V_Details
Loans, Part V (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
rating | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Number of risk rating approaches | 2 | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | $332,541 | $332,826 |
Commercial And Industrial [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 70,686 | 72,117 |
Commercial RE [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 143,919 | 133,599 |
RE Construction and Development Loans [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 87,004 | 90,941 |
Agricultural [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 30,932 | 36,169 |
Single Family Residential [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 52,036 | 55,016 |
Home Improvement and Home Equity [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 1,410 | 1,319 |
Installment [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 9,330 | 10,884 |
Consumer Related Loans and Other Homogenous Loans [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 62,776 | 67,219 |
Grades 1 and 2 [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 425 | 885 |
Grades 1 and 2 [Member] | Commercial And Industrial [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 355 | 825 |
Grades 1 and 2 [Member] | Commercial RE [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 0 | 0 |
Grades 1 and 2 [Member] | RE Construction and Development Loans [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 0 | 0 |
Grades 1 and 2 [Member] | Agricultural [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 70 | 60 |
Grade 3 [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 6,147 | 8,874 |
Grade 3 [Member] | Commercial And Industrial [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 44 | 2,071 |
Grade 3 [Member] | Commercial RE [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 5,287 | 5,947 |
Grade 3 [Member] | RE Construction and Development Loans [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 816 | 856 |
Grade 3 [Member] | Agricultural [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 0 | 0 |
Grade 4 and 5 - Pass [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 293,169 | 293,868 |
Grade 4 and 5 - Pass [Member] | Minimum [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Notes receivable, period of loss recognition | '3 years | ' |
Grade 4 and 5 - Pass [Member] | Maximum [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Notes receivable, period of loss recognition | '4 years | ' |
Grade 4 and 5 - Pass [Member] | Commercial And Industrial [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 69,070 | 66,098 |
Grade 4 and 5 - Pass [Member] | Commercial RE [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 127,189 | 116,606 |
Grade 4 and 5 - Pass [Member] | RE Construction and Development Loans [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 66,048 | 75,191 |
Grade 4 and 5 - Pass [Member] | Agricultural [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 30,862 | 35,973 |
Grade 6 - Special Mention [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 590 | 2,008 |
Grade 6 - Special Mention [Member] | Commercial And Industrial [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 590 | 1,867 |
Grade 6 - Special Mention [Member] | Commercial RE [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 0 | 0 |
Grade 6 - Special Mention [Member] | RE Construction and Development Loans [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 0 | 141 |
Grade 6 - Special Mention [Member] | Agricultural [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 0 | 0 |
Grade 7 - Substandard [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 32,210 | 27,191 |
Grade 7 - Substandard [Member] | Commercial And Industrial [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 627 | 1,256 |
Grade 7 - Substandard [Member] | Commercial RE [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 11,443 | 11,046 |
Grade 7 - Substandard [Member] | RE Construction and Development Loans [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 20,140 | 14,753 |
Grade 7 - Substandard [Member] | Agricultural [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 0 | 136 |
Grade 8 - Doubtful [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 0 | 0 |
Grade 8 - Doubtful [Member] | Commercial And Industrial [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 0 | 0 |
Grade 8 - Doubtful [Member] | Commercial RE [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 0 | 0 |
Grade 8 - Doubtful [Member] | RE Construction and Development Loans [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 0 | 0 |
Grade 8 - Doubtful [Member] | Agricultural [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 0 | 0 |
Not Graded [Member] | Single Family Residential [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 29,063 | 30,727 |
Not Graded [Member] | Home Improvement and Home Equity [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 1,378 | 1,309 |
Not Graded [Member] | Installment [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 7,862 | 9,221 |
Not Graded [Member] | Consumer Related Loans and Other Homogenous Loans [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 38,303 | 41,257 |
Pass [Member] | Single Family Residential [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 19,320 | 20,572 |
Pass [Member] | Home Improvement and Home Equity [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 0 | 0 |
Pass [Member] | Installment [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 1,468 | 1,422 |
Pass [Member] | Consumer Related Loans and Other Homogenous Loans [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 20,788 | 21,994 |
Special Mention [Member] | Single Family Residential [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 1,204 | 909 |
Special Mention [Member] | Home Improvement and Home Equity [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 32 | 0 |
Special Mention [Member] | Installment [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 0 | 49 |
Special Mention [Member] | Consumer Related Loans and Other Homogenous Loans [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 1,236 | 958 |
Substandard [Member] | Single Family Residential [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 2,449 | 2,808 |
Substandard [Member] | Home Improvement and Home Equity [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 0 | 10 |
Substandard [Member] | Installment [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | 0 | 192 |
Substandard [Member] | Consumer Related Loans and Other Homogenous Loans [Member] | ' | ' |
Credit risk ratings [Abstract] | ' | ' |
Total | $2,449 | $3,010 |
Loans_Part_VI_Details
Loans, Part VI (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
loan | ||
segment | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Number of loan portfolio segment | 11 | ' |
Number of loans entity experienced losses over past twelve quarters | 7 | ' |
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ' | ' |
Beginning balance | $11,784 | $13,648 |
Provision for credit losses | -1,098 | 1,019 |
Charge-offs | -1,586 | -4,278 |
Recoveries | 1,888 | 1,395 |
Net charge-offs | 302 | -2,883 |
Ending balance | 10,988 | 11,784 |
Period-end amount allocated to: | ' | ' |
Loans individually evaluated for impairment | 762 | 658 |
Loans collectively evaluated for impairment | 10,226 | 11,126 |
Ending balance | 10,988 | 11,784 |
Loans Individually Evaluated for Impairment | 18,132 | 21,931 |
Loans Collectively Evaluated for Impairment | 377,185 | 378,126 |
Total Loans | 395,317 | 400,057 |
Consumer Portfolio Segment [Member] | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Number of loan portfolio segment | 3 | ' |
Commercial and Business Loans [Member] | ' | ' |
Period-end amount allocated to: | ' | ' |
Loans Individually Evaluated for Impairment | 677 | 1,343 |
Loans Collectively Evaluated for Impairment | 67,783 | 68,437 |
Total Loans | 68,460 | 69,780 |
Government Program Loans [Member] | ' | ' |
Period-end amount allocated to: | ' | ' |
Loans Individually Evaluated for Impairment | 0 | 88 |
Loans Collectively Evaluated for Impairment | 2,226 | 2,249 |
Total Loans | 2,226 | 2,337 |
Commercial and Industrial [Member] | ' | ' |
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ' | ' |
Beginning balance | 1,614 | 4,782 |
Provision for credit losses | 1,134 | -2,730 |
Charge-offs | -542 | -1,080 |
Recoveries | 134 | 642 |
Net charge-offs | -408 | -438 |
Ending balance | 2,340 | 1,614 |
Period-end amount allocated to: | ' | ' |
Loans individually evaluated for impairment | 9 | 37 |
Loans collectively evaluated for impairment | 2,331 | 1,577 |
Ending balance | 2,340 | 1,614 |
Loans Individually Evaluated for Impairment | 677 | 1,431 |
Loans Collectively Evaluated for Impairment | 70,009 | 70,686 |
Total Loans | 70,686 | 72,117 |
Commercial Real Estate Loans [Member] | ' | ' |
Period-end amount allocated to: | ' | ' |
Loans Individually Evaluated for Impairment | 10,189 | 11,055 |
Loans Collectively Evaluated for Impairment | 133,730 | 122,544 |
Total Loans | 143,919 | 133,599 |
Residential Mortgages [Member] | ' | ' |
Period-end amount allocated to: | ' | ' |
Loans Individually Evaluated for Impairment | 5,384 | 7,392 |
Loans Collectively Evaluated for Impairment | 46,652 | 47,624 |
Total Loans | 52,036 | 55,016 |
Home Improvement and Home Equity Loans [Member] | ' | ' |
Period-end amount allocated to: | ' | ' |
Loans Individually Evaluated for Impairment | 0 | 10 |
Loans Collectively Evaluated for Impairment | 1,410 | 1,309 |
Total Loans | 1,410 | 1,319 |
Real Estate - Mortgage [Member] | ' | ' |
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ' | ' |
Beginning balance | 1,292 | 2,070 |
Provision for credit losses | 1,101 | -235 |
Charge-offs | -540 | -620 |
Recoveries | 9 | 77 |
Net charge-offs | -531 | -543 |
Ending balance | 1,862 | 1,292 |
Period-end amount allocated to: | ' | ' |
Loans individually evaluated for impairment | 753 | 621 |
Loans collectively evaluated for impairment | 1,109 | 671 |
Ending balance | 1,862 | 1,292 |
Loans Individually Evaluated for Impairment | 15,573 | 18,457 |
Loans Collectively Evaluated for Impairment | 181,792 | 171,477 |
Total Loans | 197,365 | 189,934 |
RE Construction and Development Loans [Member] | ' | ' |
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ' | ' |
Beginning balance | 2,814 | 5,634 |
Provision for credit losses | 1,285 | -3,431 |
Charge-offs | -95 | -10 |
Recoveries | 1,529 | 621 |
Net charge-offs | 1,434 | 611 |
Ending balance | 5,533 | 2,814 |
Period-end amount allocated to: | ' | ' |
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 5,533 | 2,814 |
Ending balance | 5,533 | 2,814 |
Loans Individually Evaluated for Impairment | 1,789 | 1,730 |
Loans Collectively Evaluated for Impairment | 85,215 | 89,211 |
Total Loans | 87,004 | 90,941 |
Agricultural Loans [Member] | ' | ' |
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ' | ' |
Beginning balance | 352 | 803 |
Provision for credit losses | 222 | 1,860 |
Charge-offs | -136 | -2,317 |
Recoveries | 145 | 6 |
Net charge-offs | 9 | -2,311 |
Ending balance | 583 | 352 |
Period-end amount allocated to: | ' | ' |
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 583 | 352 |
Ending balance | 583 | 352 |
Loans Individually Evaluated for Impairment | 45 | 192 |
Loans Collectively Evaluated for Impairment | 30,887 | 35,977 |
Total Loans | 30,932 | 36,169 |
Installment & Other [Member] | ' | ' |
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ' | ' |
Beginning balance | 288 | 117 |
Provision for credit losses | 160 | 384 |
Charge-offs | -244 | -251 |
Recoveries | 71 | 38 |
Net charge-offs | -173 | -213 |
Ending balance | 275 | 288 |
Period-end amount allocated to: | ' | ' |
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 275 | 288 |
Ending balance | 275 | 288 |
Loans Individually Evaluated for Impairment | 48 | 121 |
Loans Collectively Evaluated for Impairment | 9,282 | 10,763 |
Total Loans | 9,330 | 10,884 |
Lease Financing [Member] | ' | ' |
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ' | ' |
Beginning balance | 1 | 1 |
Provision for credit losses | -1 | -11 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 11 |
Net charge-offs | 0 | 11 |
Ending balance | 0 | 1 |
Period-end amount allocated to: | ' | ' |
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 0 | 1 |
Ending balance | 0 | 1 |
Loans Individually Evaluated for Impairment | 0 | 0 |
Loans Collectively Evaluated for Impairment | 0 | 12 |
Total Loans | 0 | 12 |
Unallocated [Member] | ' | ' |
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ' | ' |
Beginning balance | 5,423 | 241 |
Provision for credit losses | -4,999 | 5,182 |
Charge-offs | -29 | 0 |
Recoveries | 0 | 0 |
Net charge-offs | -29 | 0 |
Ending balance | 395 | 5,423 |
Period-end amount allocated to: | ' | ' |
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 395 | 5,423 |
Ending balance | $395 | $5,423 |
Premises_and_Equipment_Details
Premises and Equipment (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | ' | ' |
Premises and equipment, Gross | $26,658 | $25,497 |
Less accumulated depreciation and amortization | -14,536 | -13,235 |
Total premises and equipment | 12,122 | 12,262 |
Depreciation expenses on premises equipment | 1,316 | 1,200 |
Land [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Premises and equipment, Gross | 968 | 968 |
Building and Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Premises and equipment, Gross | 14,613 | 14,573 |
Furniture and Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Premises and equipment, Gross | $11,077 | $9,956 |
Investment_in_Limited_Partners1
Investment in Limited Partnership (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Loss in equity of limited partnership | $253,000 | $39,000 |
Investment tax credit | 1,800,000 | ' |
Tax credit carryforward expiration period | ' tax credits expire between 2014 and 2015 | ' |
Tax credits utilized for income tax | 0 | 87,000 |
Limited Partnership [Member] | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Ownership percentage (in hundredths) | 9.14% | ' |
Total investment | 390,000 | ' |
Commercial Real Estate Partnership [Member] | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Ownership percentage (in hundredths) | 36.00% | ' |
Total investment | $3,559,000 | ' |
Deposits_Details
Deposits (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deposits [Abstract] | ' | ' |
Noninterest-bearing deposits | $214,317 | $217,014 |
Interest-bearing deposits: | ' | ' |
NOW and money market accounts | 198,928 | 203,771 |
Savings accounts | 45,758 | 43,117 |
Time deposits: | ' | ' |
Under $100,000 | 28,825 | 32,532 |
$100,000 and over | 54,661 | 66,853 |
Total interest-bearing deposits | 328,172 | 346,273 |
Total deposits | 542,489 | 563,287 |
Maturities of Deposits [Abstract] | ' | ' |
One year or less | 68,343 | ' |
More than one year, but less than or equal to two years | 10,554 | ' |
More than two years, but less than or equal to three years | 2,019 | ' |
More than three years, but less than or equal to four years | 2,198 | ' |
More than four years, but less than or equal to five years | 358 | ' |
More than five years | 14 | ' |
Deposits Maturities, Total | 83,486 | ' |
Brokered time deposits | 11,500 | 17,984 |
Brokered deposits included in time deposit $100,000 or more | 11,157 | ' |
Brokered deposits included in time deposit less than $100,000 | 343 | ' |
Contractual maturities, time deposits, $100,000 or more, three months or less | 3,900 | ' |
Contractual maturities, time deposits, $100,000 or more, three months through six months | 7,215 | ' |
Contractual maturities, time deposits, $100,000 or more, after 12 months | 385 | ' |
Deposit overdrafts | 157 | 155 |
Deposits of related parties | $6,943 | $6,505 |
Shortterm_BorrowingsOther_Borr1
Short-term Borrowings/Other Borrowings (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Short-term Debt [Line Items] | ' | ' |
Short-term debt outstanding | $0 | $0 |
Weighted average cost of borrowing (in hundredths) | 0.00% | 0.00% |
Federal Reserve Bank of San Francisco [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Unused borrowing lines | 254,761,000 | ' |
Short-term Debt | ' | 217,841,000 |
Qualifying loans pledged as collateral for borrowing lines | 334,299,000 | ' |
Federal Home Loan Bank (FHLB) [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Short-term Debt | 7,094,000 | 10,493,000 |
Investment securities pledged as collateral | 7,468,000 | ' |
Pacific Coast Bankers Bank (PCBB) [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Unused borrowing lines | $10,000,000 | ' |
Junior_Subordinated_DebtTrust_1
Junior Subordinated Debt/Trust Preferred Securities (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
Sep. 30, 2009 | Jul. 23, 2007 | Dec. 31, 2013 | Dec. 31, 2012 | |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Amount of junior subordinated debentures relating to trust preferred securities | ' | 15,000,000 | ' | ' |
Maximum number of consecutive quarters the entity defer interest payments without default or penalty | ' | ' | 20 | ' |
Gain (loss) on fair value option of financial liability | ' | ' | -776,000 | -774,000 |
Discounted Cash Flow Valuation Technique [Member] | Significant Unobservable Inputs Level 3 [Member] | Subordinated Debt [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Discount rate used in the valuation of debt instrument | ' | ' | 8.19% | 7.23% |
Junior Subordinated Debt [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Amount of junior subordinated debentures relating to trust preferred securities | 15,000,000 | ' | ' | ' |
Life of debt instrument | ' | '30 years | ' | ' |
Debt instrument variable interest rate | ' | 1.29% | ' | ' |
Initial coupon rate | ' | 6.65% | ' | ' |
Frequency of interest payment | 'quarterly | ' | ' | ' |
Accrued and unpaid interest on debt | ' | ' | $1,172,000 | $891,000 |
Taxes_on_Income_Details
Taxes on Income (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Deferred tax assets: | ' | ' |
Credit losses not currently deductible | $4,927,000 | $4,391,000 |
Deferred compensation | 1,920,000 | 1,912,000 |
Net operating losses | 9,074,000 | 7,773,000 |
Depreciation | 231,000 | 518,000 |
Accrued reserves | 63,000 | 194,000 |
Write-down on other real estate owned | -97,000 | 3,283,000 |
Capitalized OREO expenses | 1,079,000 | 793,000 |
Other | 2,555,000 | 1,908,000 |
Total deferred tax assets | 19,752,000 | 20,772,000 |
Deferred tax liabilities: | ' | ' |
State Tax | -2,640,000 | -1,889,000 |
FHLB dividend | -53,000 | -103,000 |
Loss on limited partnership investment | -1,808,000 | -1,695,000 |
Unrealized gain on AFS | -211,000 | -458,000 |
Deferred gain SFAS No. 159 b fair value option | -2,471,000 | -2,819,000 |
Fair value adjustments for purchase accounting | -167,000 | -123,000 |
Interest on nonaccrual loans | 36,000 | -368,000 |
Deferred loan costs | -570,000 | -602,000 |
Prepaid expenses | -238,000 | -305,000 |
Total deferred tax liabilities | -8,122,000 | -8,362,000 |
Valuation Allowance | 0 | -2,686,000 |
Net deferred tax assets | 11,630,000 | 9,724,000 |
Federal | ' | ' |
Current | 1,059,000 | 719,000 |
Deferred | -1,055,000 | 466,000 |
Total Federal Income Taxes | 4,000 | 1,185,000 |
State | ' | ' |
Current | 819,000 | -416,000 |
Deferred | -718,000 | 764,000 |
Total State Income Taxes | 101,000 | 348,000 |
Total | ' | ' |
Current | 1,878,000 | 303,000 |
Deferred | -1,773,000 | 1,230,000 |
Total Income Taxes | 105,000 | 1,533,000 |
Reconciliation of the statutory federal income tax rate [Abstract] | ' | ' |
Statutory federal income tax rate | 34.00% | 34.00% |
State franchise tax, net of federal income tax benefit | 0.90% | 3.00% |
Low Income Housing b federal credits | 0.00% | -1.10% |
Cash surrender value of life insurance | -2.40% | -2.40% |
Valuation Allowance | -33.00% | -13.20% |
Other | 1.90% | -0.10% |
Total | 1.40% | 20.20% |
Decrease in valuation allowance | 2,686,000 | 1,000,000 |
Operating Loss Carryforwards [Line Items] | ' | ' |
Income tax examination, interest income from settlement | 95,000 | 0 |
Federal [Member] | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Operating loss carryforwards | 8,123,000 | ' |
State [Member] | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Operating loss carryforwards | $58,074,000 | ' |
Stock_Based_Compensation_Detai
Stock Based Compensation (Details) (USD $) | 1 Months Ended | 12 Months Ended | |
31-May-05 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Minimum market value per share | 100.00% | ' | ' |
Option exercisable | 20.00% | ' | ' |
Options expiration period | '10 years | ' | ' |
Options outstanding, exercisable, exercised and forfeited [Roll Forward] | ' | ' | ' |
Exercised (in shares) | ' | ' | 0 |
Weighted Average Exercise Price [Roll Forward] | ' | ' | ' |
Options exercisable (in shares) | ' | 153,179 | ' |
Options exercisable weighted average exercise price (in dollars per share) | ' | $12.27 | ' |
Options exercisable weighted average remaining contract term | ' | '2 years 6 months | ' |
Options exercisable intrinsic value | ' | $15,000 | ' |
Share-based Compensation | ' | 29,000 | 18,000 |
Unrecognized compensation expense | ' | 64,000 | 42,000 |
Cost recognized weighted average period | ' | '3 years | ' |
Share based compensation arrangement by share based payment award options grants in period grant date intrinsic value [Abstract] | ' | ' | ' |
Weighted average grant-date fair value of stock options granted (in dollars per share) | ' | $2.80 | $1.33 |
Total fair value of stock options vested | ' | 24,310 | 26,246 |
Total intrinsic value of stock options exercised | ' | $9,665 | ' |
2005 Plan [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of Shares Authorized (in shares) | 622,358 | ' | ' |
Number of shares granted outstanding (in shares) | ' | 193,082 | ' |
Number of stock option vested in period (in shares) | ' | 153,179 | ' |
Options outstanding, exercisable, exercised and forfeited [Roll Forward] | ' | ' | ' |
Options outstanding (in shares) | ' | 194,224 | ' |
Granted (in shares) | ' | 25,502 | ' |
Exercised (in shares) | ' | 5,202 | ' |
Forfeited (in shares) | ' | 21,442 | ' |
Options outstanding (in shares) | ' | 193,082 | ' |
Weighted Average Exercise Price [Roll Forward] | ' | ' | ' |
Options outstanding (in dollars per share) | ' | $10.27 | ' |
Granted (in dollars per share) | ' | $4.16 | ' |
Exercised (in dollars per share) | ' | $2.29 | ' |
Forfeited (in dollars per share) | ' | $2.29 | ' |
Options outstanding (in dollars per share) | ' | $10.57 | ' |
2005 Plan [Member] | Incentive Stock Options [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of shares granted outstanding (in shares) | ' | 163,210 | ' |
Options outstanding, exercisable, exercised and forfeited [Roll Forward] | ' | ' | ' |
Granted (in shares) | ' | ' | 25,757 |
Options outstanding (in shares) | ' | 163,210 | ' |
Stock options valuation assumptions [Abstract] | ' | ' | ' |
Risk Free Interest Rate | ' | 1.20% | 1.02% |
Expected Dividend Yield | ' | 0.00% | 0.00% |
Expected Life in Years | ' | '5 years 6 months | '5 years 6 months |
Expected Price Volatility | ' | 78.88% | 79.43% |
2005 Plan [Member] | Nonqualified Stock Options [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of shares granted outstanding (in shares) | ' | 29,872 | ' |
Options outstanding, exercisable, exercised and forfeited [Roll Forward] | ' | ' | ' |
Options outstanding (in shares) | ' | 29,872 | ' |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
401K Plan [Abstract] | ' | ' |
Employers matching contribution vesting percentage (in hundredths) | 100.00% | ' |
Matching contributions | $256 | $229 |
Salary Continuation Plan [Abstract] | ' | ' |
Salary continuation contracts | '20 years | ' |
Salary continuation plan accrued liability | 4,031 | 4,298 |
Discounted cash flow rate (in hundredths) | 3.39% | 2.55% |
Cash surrender value | 4,421 | 4,297 |
Income on insurance | 124 | 120 |
Unrecognized net periodic benefit costs | 436 | 598 |
Officer Supplemental Life Insurance Plan [Abstract] | ' | ' |
Cash surrender value of bank owned life insurance policies | 12,782 | 12,384 |
Increase in cash surrender value of bank owned life insurance | 398 | 411 |
Maximum [Member] | ' | ' |
401K Plan [Abstract] | ' | ' |
Matching contribution (in hundredths) | 4.00% | ' |
Salary Continuation Plan [Member] | ' | ' |
Salary Continuation Plan [Abstract] | ' | ' |
Additional compensation benefits term | '15 years | ' |
Salaries and benefits expense | $160 | $90 |
Salary Continuation Plan [Member] | Minimum [Member] | ' | ' |
Salary Continuation Plan [Abstract] | ' | ' |
Benefit plan vesting period | '12 years | ' |
Salary Continuation Plan [Member] | Maximum [Member] | ' | ' |
Salary Continuation Plan [Abstract] | ' | ' |
Benefit plan vesting period | '15 years | ' |
Commitments_and_Contingent_Lia2
Commitments and Contingent Liabilities (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments and Contingencies Disclosure [Abstract] | ' | ' |
Rent expenses, total | $652 | $636 |
Rental adjustments | 18 | 8 |
Future minimum rental commitments under existing non-cancelable leases [Abstract] | ' | ' |
2014 | 530 | ' |
2015 | 457 | ' |
2016 | 310 | ' |
2017 | 274 | ' |
2018 | 270 | ' |
Thereafter | 347 | ' |
Future minimum rental commitments under existing non-cancelable leases | 2,188 | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' |
Minimum term of guarantees (less than one month) | '1 month | ' |
Maximum term of guarantees | '3 years | ' |
Commitments to Extend Credit [Member] | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' |
Contractual amount | 63,271 | 60,050 |
Standby Letters of Credit [Member] | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' |
Contractual amount | $2,001 | $2,504 |
Fair_Value_Measurements_and_Di2
Fair Value Measurements and Disclosure (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deposits: | ' | ' |
Junior Subordinated Debt | $11,125 | $10,068 |
Carrying Amount [Member] | ' | ' |
Financial Assets: | ' | ' |
Cash and cash equivalents | 135,212 | 141,627 |
Interest-bearing deposits | 1,515 | 1,507 |
Investment securities | 43,616 | 31,844 |
Loans | 384,025 | 388,249 |
Accrued interest receivable | 1,644 | 1,694 |
Deposits: | ' | ' |
Noninterest-bearing | 214,317 | 217,014 |
NOW and money market | 198,928 | 203,771 |
Savings | 45,758 | 43,117 |
Time Deposits | 83,486 | 99,385 |
Total Deposits | 542,489 | 563,287 |
Junior Subordinated Debt | 11,125 | 10,068 |
Accrued interest payable | 44 | 71 |
Estimated Fair Value [Member] | ' | ' |
Financial Assets: | ' | ' |
Cash and cash equivalents | 135,212 | 141,627 |
Interest-bearing deposits | 1,515 | 1,507 |
Investment securities | 43,616 | 31,844 |
Loans | 380,615 | 386,836 |
Accrued interest receivable | 1,644 | 1,694 |
Deposits: | ' | ' |
Noninterest-bearing | 214,317 | 217,014 |
NOW and money market | 198,928 | 203,771 |
Savings | 45,758 | 43,117 |
Time Deposits | 83,362 | 99,529 |
Total Deposits | 542,365 | 563,431 |
Junior Subordinated Debt | 11,125 | 10,068 |
Accrued interest payable | 44 | 71 |
Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | ' | ' |
Financial Assets: | ' | ' |
Cash and cash equivalents | 135,212 | 141,627 |
Investment securities | 10,746 | 13,593 |
Deposits: | ' | ' |
Noninterest-bearing | 214,317 | 217,014 |
NOW and money market | 198,928 | 203,771 |
Savings | 45,758 | 43,117 |
Total Deposits | 459,003 | 463,902 |
Significant Other Observable Inputs Level 2 [Member] | ' | ' |
Financial Assets: | ' | ' |
Interest-bearing deposits | 1,515 | 1,507 |
Investment securities | 32,870 | 18,251 |
Accrued interest receivable | 1,644 | 1,694 |
Deposits: | ' | ' |
Accrued interest payable | 44 | 71 |
Significant Unobservable Inputs Level 3 [Member] | ' | ' |
Financial Assets: | ' | ' |
Loans | 380,615 | 386,836 |
Deposits: | ' | ' |
Time Deposits | 83,362 | 99,529 |
Total Deposits | 83,362 | 99,529 |
Junior Subordinated Debt | $11,125 | $10,068 |
Fair_Value_Measurements_and_Di3
Fair Value Measurements and Disclosure, Part II (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
AFS Securities (2): | ' | ' |
U.S. Government agencies | $14,501 | $6,600 |
U.S Govt collateralized mortgage obligations | 25,385 | 21,283 |
Mutual Funds | 3,730 | 3,961 |
Fair Value (Carrying Amount) | 43,616 | 31,844 |
Impaired Loans (1): | ' | ' |
Commercial and industrial | ' | 47 |
Real estate mortgage | 1,388 | 2,159 |
Agricultural | ' | 136 |
Total impaired loans | 1,388 | 2,342 |
Other real estate owned (1) | 3,889 | 4,483 |
Total | 48,893 | 38,669 |
Description of Liabilities | ' | ' |
Junior Subordinated Debt | 11,125 | 10,068 |
Total | 11,125 | 10,068 |
Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | ' | ' |
AFS Securities (2): | ' | ' |
U.S Govt collateralized mortgage obligations | 7,016 | 9,632 |
Mutual Funds | 3,730 | 3,961 |
Fair Value (Carrying Amount) | 10,746 | 13,593 |
Impaired Loans (1): | ' | ' |
Total | 10,746 | 13,593 |
Description of Liabilities | ' | ' |
Total | 0 | 0 |
Significant Other Observable Inputs Level 2 [Member] | ' | ' |
AFS Securities (2): | ' | ' |
U.S. Government agencies | 14,500 | 6,600 |
U.S Govt collateralized mortgage obligations | 18,370 | 11,651 |
Fair Value (Carrying Amount) | 32,870 | 18,251 |
Impaired Loans (1): | ' | ' |
Total | 32,870 | 18,251 |
Description of Liabilities | ' | ' |
Total | 0 | 0 |
Significant Unobservable Inputs Level 3 [Member] | ' | ' |
Impaired Loans (1): | ' | ' |
Commercial and industrial | ' | 47 |
Real estate mortgage | 1,388 | 2,159 |
Agricultural | ' | 136 |
Total impaired loans | 1,388 | 2,342 |
Other real estate owned (1) | 3,889 | 4,483 |
Total | 5,277 | 6,825 |
Description of Liabilities | ' | ' |
Junior Subordinated Debt | 11,125 | 10,068 |
Total | $11,125 | $10,068 |
Fair_Value_Measurements_and_Di4
Fair Value Measurements and Disclosure, Part III (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Impaired Loans, Real estate mortgage | 1,388 | 2,159 |
Other real estate owned, real estate construction | 3,889 | 4,483 |
Significant Unobservable Inputs Level 3 [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Impaired Loans, Real estate mortgage | 1,388 | 2,159 |
Other real estate owned, real estate construction | 3,889 | 4,483 |
Real Estate Mortgage [Member] | Sales Comparison Approach Valuation Technique [Member] | Significant Unobservable Inputs Level 3 [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Weighted Average | 17.50% | ' |
Real Estate Mortgage [Member] | Minimum [Member] | Sales Comparison Approach Valuation Technique [Member] | Significant Unobservable Inputs Level 3 [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Weighted Average | 1.00% | ' |
Real Estate Mortgage [Member] | Maximum [Member] | Sales Comparison Approach Valuation Technique [Member] | Significant Unobservable Inputs Level 3 [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Weighted Average | 32.00% | ' |
Real Estate Construction [Member] | Discounted Cash Flow Valuation Technique [Member] | Significant Unobservable Inputs Level 3 [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Weighted Average | 8.49% | ' |
Real Estate Construction [Member] | Minimum [Member] | Discounted Cash Flow Valuation Technique [Member] | Significant Unobservable Inputs Level 3 [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Weighted Average | 1.00% | ' |
Real Estate Construction [Member] | Maximum [Member] | Discounted Cash Flow Valuation Technique [Member] | Significant Unobservable Inputs Level 3 [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Weighted Average | 10.00% | ' |
Subordinated Debt [Member] | Discounted Cash Flow Valuation Technique [Member] | Significant Unobservable Inputs Level 3 [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Weighted Average | 8.19% | 7.23% |
Fair_Value_Measurements_and_Di5
Fair Value Measurements and Disclosure, Part IV (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Junior Subordinated Debt [Member] | ' | ' |
Reconciliation of Liabilities: | ' | ' |
Beginning balance | $10,068 | $9,027 |
Total gains (losses) included in earnings (or changes in net assets) | 776 | 774 |
Transfers in and/or out of Level 3 | 281 | 267 |
Ending balance | 11,125 | 10,068 |
The amount of total gains (losses) for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses and accrued interest relating to liabilities still held at the reporting date | 776 | 774 |
Private Label Mortgage-Backed Securities [Member] | ' | ' |
Reconciliation of Assets: | ' | ' |
Beginning balance | 0 | 7,972 |
Total gains or (losses) included in earnings (or other comprehensive loss) | 0 | -468 |
Transfers in and/or out of Level 3 | 0 | -7,504 |
Ending balance | 0 | 0 |
The amount of total gains or (losses) for the period included in earnings (or other comprehensive loss) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date | $0 | $0 |
Regulatory_Matters_Details
Regulatory Matters (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
Jul. 23, 2007 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 15, 2013 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' | ' | ' |
Required tangible shareholders' equity to total tangible assets ratio | ' | ' | ' | 9.00% |
Tangible shareholders equity to total tangible assets | ' | 13.20% | 11.70% | ' |
Minimum tier 1 capital to total assets ratio | ' | 3.00% | ' | ' |
Capital [Abstract] | ' | ' | ' | ' |
Total Capital (to Risk Weighted Assets) Actual | ' | $77,530,000 | $71,436,000 | ' |
Total Capital (to Risk Weighted Assets) For Capital Adequacy Purposes | ' | 36,061,000 | 36,892,000 | ' |
Tier One Risk Based Capital [Abstract] | ' | ' | ' | ' |
Tier 1 Capital (to Risk Weighted Assets) Actual | ' | 71,827,000 | 65,742,000 | ' |
Tier 1 Capital (to Risk Weighted Assets) For Capital Adequacy Purposes | ' | 18,031,000 | 18,446,000 | ' |
Tier One Leverage Capital [Abstract] | ' | ' | ' | ' |
Tier 1 Capital (to Average Assets) Actual | ' | 71,827,000 | 65,742,000 | ' |
Tier 1 Capital (to Average Assets) For Capital Adequacy Purposes | ' | 25,672,000 | 24,671,000 | ' |
Risk Based Ratios [Abstract] | ' | ' | ' | ' |
Total Capital (to Risk Weighted Assets) Actual (in hundredths) | ' | 17.20% | 15.49% | ' |
Total Capital (to Risk Weighted Assets) For Capital Adequacy Purposes (in hundredths) | ' | 8.00% | 8.00% | ' |
Tier One Risk Based Ratios [Abstract] | ' | ' | ' | ' |
Tier 1 Capital (to Risk Weighted Assets) Actual (in hundredths) | ' | 15.93% | 14.26% | ' |
Tier 1 Capital (to Risk Weighted Assets) For Capital Adequacy Purposes (in hundredths) | ' | 4.00% | 4.00% | ' |
Leverage Ratios [Abstract] | ' | ' | ' | ' |
Tier 1 Capital (to Average Assets) Actual (in hundredths) | ' | 11.19% | 10.66% | ' |
Tier 1 Capital (to Average Assets) For Capital Adequacy Purposes (in hundredths) | ' | 4.00% | 4.00% | ' |
Maximum loan losses percentage (in hundredths) | ' | 1.25% | ' | ' |
Description of other regulatory limitations | ' | 'Insured institutions are required to maintain a ratio of qualifying total capital to risk weighted assets of 8%, at least one-half of which must be in the form of Tier 1 capital | ' | ' |
Amount issued in trust preferred securities | 15,000,000 | ' | ' | ' |
Maximum qualified percentage (in hundredths) | 25.00% | ' | ' | ' |
Dividends received | ' | 0 | 0 | ' |
Minimum [Member] | ' | ' | ' | ' |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' | ' | ' |
Addition to leverage ratio | ' | 1.00% | ' | ' |
Maximum [Member] | ' | ' | ' | ' |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' | ' | ' |
Addition to leverage ratio | ' | 2.00% | ' | ' |
Bank [Member] | ' | ' | ' | ' |
Capital [Abstract] | ' | ' | ' | ' |
Total Capital (to Risk Weighted Assets) Actual | ' | 78,499,000 | 73,296,000 | ' |
Total Capital (to Risk Weighted Assets) For Capital Adequacy Purposes | ' | 36,061,000 | 37,175,000 | ' |
Total Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions | ' | 45,077,000 | 46,468,000 | ' |
Tier One Risk Based Capital [Abstract] | ' | ' | ' | ' |
Tier 1 Capital (to Risk Weighted Assets) Actual | ' | 72,796,000 | 67,558,000 | ' |
Tier 1 Capital (to Risk Weighted Assets) For Capital Adequacy Purposes | ' | 18,031,000 | 18,587,000 | ' |
Tier 1 Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions | ' | 27,046,000 | 27,168,000 | ' |
Tier One Leverage Capital [Abstract] | ' | ' | ' | ' |
Tier 1 Capital (to Average Assets) Actual | ' | 72,796,000 | 67,558,000 | ' |
Tier 1 Capital (to Average Assets) For Capital Adequacy Purposes | ' | 25,484,000 | 24,671,000 | ' |
Tier 1 Capital (to Average Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions | ' | $31,855,000 | $30,838,000 | ' |
Risk Based Ratios [Abstract] | ' | ' | ' | ' |
Total Capital (to Risk Weighted Assets) Actual (in hundredths) | ' | 17.41% | 15.77% | ' |
Total Capital (to Risk Weighted Assets) For Capital Adequacy Purposes (in hundredths) | ' | 8.00% | 8.00% | ' |
Total Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions (in hundredths) | ' | 10.00% | 10.00% | ' |
Tier One Risk Based Ratios [Abstract] | ' | ' | ' | ' |
Tier 1 Capital (to Risk Weighted Assets) Actual (in hundredths) | ' | 16.15% | 14.54% | ' |
Tier 1 Capital (to Risk Weighted Assets) For Capital Adequacy Purposes (in hundredths) | ' | 4.00% | 4.00% | ' |
Tier 1 Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions (in hundredths) | ' | 6.00% | 6.00% | ' |
Leverage Ratios [Abstract] | ' | ' | ' | ' |
Tier 1 Capital (to Average Assets) Actual (in hundredths) | ' | 11.43% | 10.95% | ' |
Tier 1 Capital (to Average Assets) For Capital Adequacy Purposes (in hundredths) | ' | 4.00% | 4.00% | ' |
Tier 1 Capital (to Average Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions (in hundredths) | ' | 5.00% | 5.00% | ' |
Supplemental_Cash_Flow_Disclos2
Supplemental Cash Flow Disclosures (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Cash paid (received) during the period for: | ' | ' |
Interest | $1,356 | $2,101 |
Income Taxes | -3,679 | -89 |
Noncash investing activities: | ' | ' |
Loans transferred to foreclosed property | 437 | 1,999 |
Financed OREO | 2,328 | 508 |
Extinguishment of Note Payable | $0 | $83 |
Common_Stock_Dividend_Details
Common Stock Dividend (Details) | 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 | |
Common Stock Dividend [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of stock dividend declared on common stocks outstanding | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net_Income_Per_Share_Details
Net Income Per Share (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 Share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock dividend for each of the quarters since the third quarter ended September 30, 2008 | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | ' |
Net income available to common shareholders | ' | ' | ' | ' | ' | ' | ' | ' | $7,269 | $6,069 |
Weighted average shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 14,798,135 | 14,789,001 |
Add: dilutive effect of stock options | ' | ' | ' | ' | ' | ' | ' | ' | 902 | 0 |
Weighted average shares outstanding adjusted for potential dilution | ' | ' | ' | ' | ' | ' | ' | ' | 14,799,037 | 14,789,001 |
Basic (loss) earnings per share (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $0.49 | $0.41 |
Diluted (loss) earnings per share (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $0.49 | $0.41 |
Anti-dilutive shares excluded from earnings per share calculation (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 189,000 | 192,000 |
Common_Stock_Repurchase_Plan_D
Common Stock Repurchase Plan (Details) | Dec. 31, 2013 | 16-May-07 |
Common Stock Repurchase Plan [Abstract] | ' | ' |
Shares authorized to be repurchased (in shares) | ' | 750,895 |
Repurchase plan percentage of common stock outstanding (in hundredths) | ' | 5.00% |
Number of shares available for repurchase (in shares) | 650,106 | ' |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Feb. 28, 2007 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Goodwill | $4,488,000 | $4,488,000 | ' |
Total goodwill and intangible assets | 4,550,000 | 4,737,000 | ' |
Total amortization expense | 187,000 | 304,000 | ' |
Impairment losses - core deposit intangibles | 0 | 0 | ' |
Impairment losses - goodwill | 0 | 0 | ' |
Total impairment losses | 0 | 0 | ' |
Series of Individually Immaterial Business Acquisitions [Member] | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Goodwill | 2,900,000 | ' | ' |
Date of acquisition agreement | 28-Feb-07 | ' | ' |
Purchase price allocation, goodwill amount | 2,900,000 | ' | ' |
Taft Branch [Member] | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Date of acquisition agreement | 30-Apr-04 | ' | ' |
Core Deposits Intangible Assets [Member] | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Core deposit intangible assets | 62,000 | 249,000 | ' |
Total amortization expense | 187,000 | 198,000 | ' |
Impairment losses - core deposit intangibles | 0 | 0 | ' |
Total amount of core deposit intangible asset at the time of merger | ' | ' | 3,000,000 |
Estimated life of amortization | '7 years | ' | ' |
Core Deposits Intangible Assets [Member] | Series of Individually Immaterial Business Acquisitions [Member] | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Core deposit intangible assets | 0 | ' | ' |
Total amortization expense | 0 | ' | ' |
Other Intangible Assets [Member] | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Total amortization expense | $0 | $106,000 | ' |
Parent_Company_Only_Financial_2
Parent Company Only Financial Statements (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, except Share data, unless otherwise specified | |||
Assets | ' | ' | ' |
Cash and equivalents | $135,212 | $141,627 | $124,184 |
Investment in bank subsidiary | 4,534 | 4,312 | ' |
Other assets | 5,932 | 12,308 | ' |
Total assets | 635,929 | 648,877 | ' |
Liabilities | ' | ' | ' |
Junior subordinated debt securities (at fair value) | 11,125 | 10,068 | ' |
Total liabilities | 559,386 | 579,436 | ' |
Shareholders' Equity | ' | ' | ' |
Common stock, no par value 20,000,000 shares authorized, 14,799,888 and 14,217,303 issued and outstanding, in 2013 and 2012 | 45,778 | 43,173 | ' |
Retained earnings | 30,884 | 26,179 | ' |
Accumulated other comprehensive (loss) income | -119 | 89 | ' |
Total shareholders' equity | 76,543 | 69,441 | 62,173 |
Total liabilities and shareholders' equity | 635,929 | 648,877 | ' |
Common stock, par value (in dollars per share) | $0 | $0 | ' |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 | ' |
Common stock, shares issued (in shares) | 14,799,888 | 14,217,303 | ' |
Common stock, shares outstanding (in shares) | 14,799,888 | 14,217,303 | ' |
Parent Company [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Cash and equivalents | 66 | 296 | 16 |
Investment in bank subsidiary | 87,775 | 79,969 | ' |
Other assets | 2,298 | 562 | ' |
Total assets | 90,139 | 80,827 | ' |
Liabilities | ' | ' | ' |
Junior subordinated debt securities (at fair value) | 11,125 | 10,068 | ' |
Deferred taxes | 2,471 | 1,239 | ' |
Other liabilities | 0 | 79 | ' |
Total liabilities | 13,596 | 11,386 | ' |
Shareholders' Equity | ' | ' | ' |
Common stock, no par value 20,000,000 shares authorized, 14,799,888 and 14,217,303 issued and outstanding, in 2013 and 2012 | 45,778 | 43,173 | ' |
Retained earnings | 30,884 | 26,179 | ' |
Accumulated other comprehensive (loss) income | -119 | 89 | ' |
Total shareholders' equity | 76,543 | 69,441 | ' |
Total liabilities and shareholders' equity | $90,139 | $80,827 | ' |
Common stock, par value (in dollars per share) | $0 | $0 | ' |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 | ' |
Common stock, shares issued (in shares) | 14,799,888 | 14,217,303 | ' |
Common stock, shares outstanding (in shares) | 14,799,888 | 14,217,303 | ' |
Parent_Company_Only_Financial_3
Parent Company Only Financial Statements II (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Expense | ' | ' |
Interest expense | $1,611 | $2,061 |
Other expense | 2,351 | 2,276 |
Income Before Provision for Taxes on Income | 7,374 | 7,602 |
Income tax benefit | 105 | 1,533 |
Undistributed income of subsidiary | -253 | -39 |
Net Income | 7,269 | 6,069 |
Parent Company [Member] | ' | ' |
Income | ' | ' |
Loss on fair value option of financial assets | -776 | -774 |
Total (loss) income | -776 | -774 |
Expense | ' | ' |
Interest expense | 281 | 270 |
Other expense | 159 | 201 |
Total expense | 440 | 471 |
Income Before Provision for Taxes on Income | -1,216 | -1,245 |
Income tax benefit | -500 | -512 |
Undistributed income of subsidiary | 7,985 | 6,802 |
Net Income | $7,269 | $6,069 |
Parent_Company_Only_Financial_4
Parent Company Only Financial Statements III (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flows From Operating Activities: | ' | ' |
Net Income | $7,269 | $6,069 |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | ' | ' |
Loss in equity of limited partnership | 253 | 39 |
Deferred taxes | -1,773 | 1,230 |
Net cash provided by operating activities | 11,903 | 9,711 |
Cash Flows From Investing Activities: | ' | ' |
Net cash provided by (used in) investing activities | 2,468 | 18,577 |
Cash Flows From Financing Activities: | ' | ' |
Proceeds from exercise of stock options | 12 | 0 |
Net cash (used in) financing activities | -20,786 | -10,845 |
Net (decrease) increase in cash and cash equivalents | -6,415 | 17,443 |
Cash and cash equivalents at beginning of year | 141,627 | 124,184 |
Cash and cash equivalents at end of year | 135,212 | 141,627 |
Parent Company [Member] | ' | ' |
Cash Flows From Operating Activities: | ' | ' |
Net Income | 7,269 | 6,069 |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | ' | ' |
Loss in equity of limited partnership | -7,985 | -6,802 |
Deferred taxes | 1,232 | -376 |
Write-down of other investments | 0 | 68 |
Loss on fair value option of financial liability | 776 | 774 |
Increase in income tax receivable | -1,732 | 0 |
Net change in other assets/liabilities | 198 | 243 |
Net cash provided by operating activities | -242 | -24 |
Cash Flows From Investing Activities: | ' | ' |
Investment in bank stock | 0 | 9 |
Net cash provided by (used in) investing activities | 0 | 9 |
Cash Flows From Financing Activities: | ' | ' |
Proceeds from exercise of stock options | 12 | 0 |
Proceeds from sale investment in bank stock | 0 | 295 |
Net cash (used in) financing activities | 12 | 295 |
Net (decrease) increase in cash and cash equivalents | -230 | 280 |
Cash and cash equivalents at beginning of year | 296 | 16 |
Cash and cash equivalents at end of year | 66 | 296 |
Non-cash financing activities: | ' | ' |
Dividends declared not paid | $0 | $0 |