Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 2-May-14 | |
Document and Entity Information: | ' | ' |
Entity Registrant Name | 'FNB BANCORP/CA/ | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0001163199 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 4,025,015 |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (Dollar amounts in thousands) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Assets | ' | ' |
Cash and due from banks | $19,244 | $14,007 |
Interest-bearing time deposits with financial institutions | 4,805 | 5,543 |
Securities available-for-sale, at fair value | 258,184 | 263,988 |
Loans, net of allowance for loan losses of $9,897 and $9,879 on March 31, 2014 and December 31, 2013 | 566,861 | 552,343 |
Bank premises, equipment, and leasehold improvements, net | 12,533 | 12,512 |
Bank-owned life insurance, net | 12,247 | 12,151 |
Other equity securities | 5,307 | 5,300 |
Accrued interest receivable | 3,758 | 3,808 |
Other real estate owned, net | 2,478 | 5,318 |
Goodwill | 1,841 | 1,841 |
Prepaid expenses | 631 | 701 |
Other assets | 13,659 | 14,418 |
Total assets | 901,548 | 891,930 |
Deposits | ' | ' |
Demand, noninterest bearing | 198,321 | 198,523 |
Demand, interest bearing | 83,045 | 80,746 |
Savings and money market | 380,227 | 370,194 |
Time | 112,352 | 124,152 |
Total deposits | 773,945 | 773,615 |
Federal Home Loan Bank advances | 25,000 | 15,000 |
Notes Payable | 6,000 | 0 |
Accrued expenses and other liabilities | 8,977 | 9,066 |
Total liabilities | 813,922 | 797,681 |
Stockholders' equity | ' | ' |
Preferred stock - series C - no par value, authorized and outstanding 9,450 shares at December 31, 2013 (liquidation preference of $1,000 per share) | 0 | 9,450 |
Common stock, no par value, authorized 10,000,000 shares; issued and outstanding 3,997,312 shares at March 31, 2014 and 3,978,505 shares at December 31, 2013 | 59,851 | 59,317 |
Retained earnings | 28,003 | 26,738 |
Accumulated other comprehensive loss, net of tax | -228 | -1,256 |
Total stockholders' equity | 87,626 | 94,249 |
Total liabilities and stockholders' equity | $901,548 | $891,930 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets Parentheticals (Dollar amounts in thousands) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Parentheticals | ' | ' |
Allowance for loan losses | $9,897 | $9,879 |
Preferred Stock, Series C, no parvalue (in dollars per share) | ' | ' |
Preferred Stock, Series C shares authorized | 0 | 9,450 |
Preferred Stock, Series C shares outstanding | 0 | 9,450 |
Preferred stock, series C liquidation preference per share (in dollars per share) | $1,000 | $1,000 |
Common Stock, no parvalue (in dollars per share) | ' | ' |
Common Stock, shares authorized | 10,000,000 | 10,000,000 |
Common Stock, shares issued | 3,997,312 | 3,978,505 |
Common Stock, shares outstanding | 3,997,312 | 3,978,505 |
Consolidated_Statements_of_Ear
Consolidated Statements of Earnings (Unaudited) (Dollar amounts in thousands) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Interest income | ' | ' |
Interest and fees on loans | $7,627 | $8,158 |
Interest on taxable securities | 843 | 684 |
Interest on tax-exempt securities | 488 | 506 |
Interest on time deposits with other financial institutions | 25 | 49 |
Total interest income | 8,983 | 9,397 |
Interest expense | ' | ' |
Deposits | 461 | 682 |
Borrwings | 8 | 0 |
Total interest expense | 469 | 682 |
Net interest income | 8,514 | 8,715 |
Provision for loan losses | 75 | 600 |
Net interest income after provision for loan losses | 8,439 | 8,115 |
Noninterest income | ' | ' |
Service charges | 637 | 659 |
Gain on sale of available-for-sale securities | 11 | 42 |
Bank-owned life insurance policy earnings | 96 | 95 |
Other income | 296 | 180 |
Total noninterest income | 1,040 | 976 |
Noninterest expense | ' | ' |
Salaries and employee benefits | 4,218 | 4,416 |
Occupancy expense | 680 | 962 |
Equipment expense | 391 | 398 |
Professional fees | 531 | 363 |
FDIC assessment | 180 | 180 |
Telephone, postage and supplies | 286 | 437 |
Operating losses | 14 | 14 |
Advertising | 85 | 172 |
Bankcard expenses | ' | 1 |
Data processing expense | 145 | 156 |
Low income housing expense | 110 | 110 |
Surety insurance | 67 | 54 |
Directors expense | 63 | 63 |
Gain on sale of other real estate owned | -280 | 0 |
Other real estate owned expense | 77 | 50 |
Other expense | 275 | 363 |
Total noninterest expense | 6,842 | 7,739 |
Earnings before provision for income taxes | 2,637 | 1,352 |
Provision for income taxes | 803 | 422 |
Net earnings | 1,834 | 930 |
Dividends and discount accretion on preferred stock | -170 | -158 |
Net earnings available to common stockholders | $1,664 | $772 |
Earnings per share data: | ' | ' |
Basic | $0.42 | $0.20 |
Diluted | $0.40 | $0.19 |
Weighted average shares outstanding: | ' | ' |
Basic | 3,985,000 | 3,903,000 |
Diluted | 4,126,000 | 3,996,000 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Earnings (Unaudited) (Dollar amounts in thousands) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Comprehensive Earnings | ' | ' |
Net earnings | $1,834 | $930 |
Unrealized holding gain (loss) on available-for-sale securities, net of tax (expense) benefit of ($720) and $291 | 1,034 | -418 |
Reclassification adjustment for gain expense on available-for-sale securities sold, net of tax expense of ($5) and ($17) for the three months ended March 31, 2014 and 2013, respectively | -6 | -25 |
Other Comprehensive Income/(loss) | 1,028 | -443 |
Total comprehensive earnings | $2,862 | $487 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Earnings (Parentheticals) (Dollar amounts in thousands) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Other Comprehensive Earnings Parentheticals | ' | ' |
Tax on unrealized holding gain (loss) on available-for-sale securities (in dollars) | ($720) | $291 |
Tax on reclassification adjustment for gain on available-for-sale (in dollars) | ($5) | ($17) |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Dollar amounts in thousands) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Cash flow from operating activities: | ' | ' |
Net earnings | $1,834 | $930 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ' | ' |
Net gain on sale of securities available-for-sale | -11 | -42 |
Gain on sale of other real estate owned | -280 | 0 |
Depreciation, amortization and accretion | 856 | 915 |
Stock-based compensation expense | 69 | 45 |
Earnings on bank owned life insurance | -97 | -95 |
Provision for loan losses | 75 | 600 |
Decrease in accrued interest receivable | 50 | 9 |
Decrease in prepaid expense | 70 | 256 |
Decrease in other assets | 951 | 1,470 |
(Decrease) increase in accrued expenses and other liabilities | -1,202 | 579 |
Net cash provided by operating activities | 2,315 | 4,667 |
Cash flows from investing activities: | ' | ' |
Purchase of securities available-for-sale | -516 | -24,988 |
Proceeds from matured/called/sold securities available-for-sale | 7,523 | 12,163 |
Investment, net of redemption, in other equity securities | -7 | 126 |
Redemption of time deposits of other banks | 738 | 3,503 |
Proceeds from sale of other real estate owned | 1,050 | 0 |
Net investment in other real estate owned | -30 | -18 |
Net (increase) decrease in loans | -12,493 | -5,315 |
Purchases of bank premises, equipment, leasehold improvements | -327 | -241 |
Net cash used in investing activities | -4,062 | -14,770 |
Cash flows from financing activities: | ' | ' |
Net increase in demand and savings deposits | 12,130 | 30,337 |
Net decrease in time deposits | -11,800 | -8,264 |
Increase (decrease) in FHLB advances | 10,000 | -718 |
Proceeds from Notes Payable | 6,000 | 0 |
Dividends paid on common stock | 0 | -298 |
Exercise of stock options | 274 | 435 |
Redemption of preferred stock series C | -9,450 | 0 |
Dividends paid on preferred stock series C | -170 | -158 |
Net cash provided by financing activities | 6,984 | 21,334 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 5,237 | 11,231 |
Cash and cash equivalents at beginning of period | 14,007 | 27,861 |
Cash and cash equivalents at end of period | 19,244 | 39,092 |
Additional cash flow information: | ' | ' |
Interest paid | 455 | 672 |
Income taxes paid | 1 | 0 |
Non-cash investing and financing activities: | ' | ' |
Accrued dividends | 399 | 139 |
Change in unrealized gain in available for-sale securities, net of tax | 1,028 | -443 |
OREO sale funded by A38loan origination | $2,100 | $0 |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2014 | |
BASIS OF PRESENTATION | ' |
BASIS OF PRESENTATION | ' |
NOTE A – BASIS OF PRESENTATION | |
FNB Bancorp (the “Company”) is a bank holding company registered under the Bank Holding Company Act of 1956, as amended. The Company was incorporated under the laws of the State of California on February 28, 2001. The consolidated financial statements include the accounts of FNB Bancorp and its wholly-owned subsidiary, First National Bank of Northern California (the “Bank”). The Bank provides traditional banking services in San Mateo and San Francisco counties. | |
All intercompany transactions and balances have been eliminated in consolidation. The financial statements include all adjustments of a normal and recurring nature, which are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the periods presented. | |
The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all information and footnotes normally included in annual financial statements prepared in conformity with accounting principles generally accepted in the United States of America. Accordingly, these consolidated financial statements should be read in conjunction with the consolidated audited financial statements and notes thereto for the year ended December 31, 2013. Results of operations for interim periods are not necessarily indicative of results for the full year. Certain prior year information has been reclassified to conform to current year presentation. The reclassifications had no impact on consolidated net earnings or retained earnings. |
STOCK_OPTION_PLANS
STOCK OPTION PLANS | 3 Months Ended |
Mar. 31, 2014 | |
STOCK OPTION PLANS | ' |
STOCK OPTION PLANS | ' |
NOTE B – STOCK OPTION PLANS | |
Stock option expense is recorded based on the fair value of option contracts issued. The fair value is determined by the expected contract term, the risk free interest rate, the volatility of the Company’s stock price and the level of dividends the Company is expected to pay. | |
The expected term of options granted is derived from historical plan behavior and represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods approximating the expected option terms is based on the U. S. Treasury yield curve in effect at the time of the grant. | |
The amount of compensation expense for options recorded in the quarters ended March 31, 2014 and 2013 was $69,000 and $45,000, respectively. There was no income tax benefit recognized in the statements of earnings for these amounts for the quarters ended March 31, 2014 and 2013, respectively. | |
The intrinsic value for options exercised during the quarters ended March 31, 2014 March 31, 2013 was $126,000 and $341,000, respectively. The intrinsic value of options exercisable during the quarter ended March 31, 2014 and March 31, 2013 was $2,234,000 and $1,260,000, respectively. | |
The amount of total unrecognized compensation expense related to non-vested options at March 31, 2014 was $841,000, and the weighted average period over which it will be amortized is 3.8 years. |
EARNINGS_PER_SHARE_CALCULATION
EARNINGS PER SHARE CALCULATION | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
EARNINGS PER SHARE CALCULATION | ' | ||||||||
EARNINGS PER SHARE CALCULATION | ' | ||||||||
NOTE C – EARNINGS PER SHARE CALCULATION | |||||||||
Earnings per common share (EPS) are computed based on the weighted average number of common shares outstanding during the period. Basic EPS excludes dilution and is computed by dividing net earnings available to common stockholders (after deducting dividends and related accretion on preferred stock) by the weighted average of common shares outstanding. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. The number of potential common shares included in the quarterly diluted EPS is computed using the average market price during the three months included in the reporting period under the treasury stock method. The number of potential common shares included in year-to-date diluted EPS is a year-to-date weighted average of potential shares included in each quarterly diluted EPS computation. All common stock equivalents are anti-dilutive when a net loss occurs. | |||||||||
Earnings per share have been computed based on the following: | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
(Dollar amounts in thousands) | 2014 | 2013 | |||||||
Net earnings | $ | 1,834 | $ | 930 | |||||
Dividends and discount accretion on preferred stock | (170 | ) | (158 | ) | |||||
Net earnings available to common stockholders | $ | 1,664 | $ | 772 | |||||
Average number of shares outstanding | 3,985,000 | 3,903,000 | |||||||
Effect of dilutive options | 141,000 | 93,000 | |||||||
Average number of shares outstanding used to calculate diluted earnings per share | 4,126,000 | 3,996,000 | |||||||
Anti dilutive options that were excluded from the calculation of diluted EPS totaled 64,000 and 257,755 in 2014 and 2013, respectively. |
SECURITIES_AVAILABLE_FOR_SALE
SECURITIES AVAILABLE FOR SALE | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
SECURITIES AVAILABLE FOR SALE | ' | ||||||||||||||||||||||||
SECURITIES AVAILABLE FOR SALE | ' | ||||||||||||||||||||||||
NOTE D – SECURITIES AVAILABLE FOR SALE | |||||||||||||||||||||||||
The amortized cost and carrying values of securities available-for-sale are as follows: | |||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
(Dollar amounts in thousands) | cost | gains | losses | value | |||||||||||||||||||||
31-Mar-14 | |||||||||||||||||||||||||
U.S. Treasury securities | $ | 2,053 | $ | — | $ | (49 | ) | $ | 2,004 | ||||||||||||||||
Obligations of U.S. government agencies | 71,530 | 428 | (664 | ) | 71,294 | ||||||||||||||||||||
Mortgage-backed securities | 75,563 | 444 | (1,766 | ) | 74,241 | ||||||||||||||||||||
Obligations of states and political subdivisions | 83,517 | 1,842 | (782 | ) | 84,577 | ||||||||||||||||||||
Corporate debt | 25,907 | 303 | (142 | ) | 26,068 | ||||||||||||||||||||
$ | 258,570 | $ | 3,017 | $ | (3,403 | ) | $ | 258,184 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
U.S. Treasury securities | $ | 3,069 | $ | 12 | $ | (54 | ) | $ | 3,027 | ||||||||||||||||
Obligations of U.S. government agencies | 73,691 | 488 | (860 | ) | 73,319 | ||||||||||||||||||||
Mortgage-backed securities | 79,873 | 360 | (2,373 | ) | 77,860 | ||||||||||||||||||||
Obligations of states and political subdivisions | 82,526 | 1,467 | (1,317 | ) | 82,676 | ||||||||||||||||||||
Corporate debt | 26,958 | 330 | (182 | ) | 27,106 | ||||||||||||||||||||
$ | 266,117 | $ | 2,657 | $ | (4,786 | ) | $ | 263,988 | |||||||||||||||||
An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of March 31, 2014 and December 31, 2013, respectively, is as follows: | |||||||||||||||||||||||||
Less than | 12 Months | ||||||||||||||||||||||||
Total | 12 Months | Total | or Longer | Total | Total | ||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
(Dollar amounts in thousands) | Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
31-Mar-14 | |||||||||||||||||||||||||
U.S. Treasury securities | $ | — | $ | — | $ | 2,004 | $ | (49 | ) | $ | 2,004 | $ | (49 | ) | |||||||||||
Obligations of U.S. government agencies | — | — | 37,139 | (664 | ) | 37,139 | (664 | ) | |||||||||||||||||
Mortgage-backed securities | — | — | 50,881 | (1,766 | ) | 50,881 | (1,766 | ) | |||||||||||||||||
Obligations of states and political subdivisions | — | — | 27,839 | (782 | ) | 27,839 | (782 | ) | |||||||||||||||||
Corporate debt | — | — | 10,381 | (142 | ) | 10,381 | (142 | ) | |||||||||||||||||
Total | $ | — | $ | — | $ | 128,244 | $ | (3,403 | ) | $ | 128,244 | $ | (3,403 | ) | |||||||||||
Less than | 12 Months | ||||||||||||||||||||||||
Total | 12 Months | Total | or Longer | Total | Total | ||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
(Dollar amounts in thousands) | Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
December 31, 2013: | |||||||||||||||||||||||||
U. S. Treasury securities | $ | 2,002 | $ | (54 | ) | $ | — | $ | — | $ | 2,002 | (54 | ) | ||||||||||||
Obligations of U.S. Government agencies | 40,108 | (860 | ) | — | — | 40,108 | (860 | ) | |||||||||||||||||
Mortgage-backed securities | 51,419 | (2,015 | ) | 5,664 | (358 | ) | 57,083 | (2,373 | ) | ||||||||||||||||
Obligations of states and political subdivisions | 33,265 | (1,248 | ) | 1,083 | (69 | ) | 34,348 | (1,317 | ) | ||||||||||||||||
Corporate debt | 10,857 | (180 | ) | 498 | (2 | ) | 11,355 | (182 | ) | ||||||||||||||||
Total | $ | 137,651 | $ | (4,357 | ) | $ | 7,245 | $ | (429 | ) | $ | 144,896 | $ | (4,786 | ) | ||||||||||
At March 31, 2014, there were five securities in an unrealized loss position for greater than 12 consecutive months. Management periodically evaluates each security in an unrealized loss position to determine if the impairment is temporary or other-than-temporary. The unrealized losses are due solely to interest rate changes and the Company does not intend to sell nor expects it will be required to sell investment securities identified with impairments prior to the earliest of forecasted recovery or the maturity of the underlying investment security. Management has determined that no investment security was other-than-temporarily impaired at March 31, 2014. | |||||||||||||||||||||||||
The amortized cost and carrying value of available-for-sale debt securities as of March 31, 2014 by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||
March 31, 2014: | |||||||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||||||
(Dollar amounts in thousands) | Cost | Value | |||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
Due in one year or less | $ | 14,599 | $ | 14,710 | |||||||||||||||||||||
Due after one through five years | 98,395 | 98,806 | |||||||||||||||||||||||
Due after five years through ten years | 113,046 | 112,359 | |||||||||||||||||||||||
Due after ten years | 32,530 | 32,309 | |||||||||||||||||||||||
$ | 258,570 | $ | 258,184 | ||||||||||||||||||||||
For the three months ended March 31, 2014 and March 31, 2013, respectively, gross realized gains amounted to $11,000 and $42,000, on gross securities sold or called of $1,023,000 and $3,722,000, respectively. For the three months ended March 31, 2014 and 2013, respectively, there were no gross realized losses. | |||||||||||||||||||||||||
At March 31, 2014, securities with an amortized cost of $68,785,000 and fair value of $68,991,000 were pledged as collateral for public deposits and for other purposes required by law. |
LOANS
LOANS | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||
LOANS | ' | ||||||||||||||||||||||||||||
LOANS | ' | ||||||||||||||||||||||||||||
NOTE E – LOANS | |||||||||||||||||||||||||||||
Loans are summarized as follows at March 31, 2014 and December 31, 2013: | |||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
FNB | Balance | ||||||||||||||||||||||||||||
Bancorp | 31-Mar | ||||||||||||||||||||||||||||
(Dollar amounts in thousands) | Originated | PNCI | PCI | 2014 | |||||||||||||||||||||||||
Commercial real estate | $ | 291,869 | $ | 35,668 | $ | 1,325 | $ | 328,862 | |||||||||||||||||||||
Real estate construction | 34,895 | 2,549 | — | 37,444 | |||||||||||||||||||||||||
Real estate multi-family | 39,571 | 11,733 | — | 51,304 | |||||||||||||||||||||||||
Real estate 1 to 4 family | 102,221 | 7,144 | — | 109,365 | |||||||||||||||||||||||||
Commercial & industrial | 38,964 | 9,835 | — | 48,799 | |||||||||||||||||||||||||
Consumer loans | 1,532 | — | — | 1,532 | |||||||||||||||||||||||||
Gross loans | 509,052 | 66,929 | 1,325 | 577,306 | |||||||||||||||||||||||||
Net deferred loan fees | (2,388 | ) | — | — | (2,388 | ) | |||||||||||||||||||||||
Allowance for loan losses | (9,897 | ) | — | — | (9,897 | ) | |||||||||||||||||||||||
Net loans | $ | 496,767 | $ | 66,929 | $ | 1,325 | $ | 565,021 | |||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
FNB | Balance | ||||||||||||||||||||||||||||
Bancorp | 31-Dec | ||||||||||||||||||||||||||||
(Dollar amounts in thousands) | Originated | PNCI | PCI | 2013 | |||||||||||||||||||||||||
Commercial real estate | $ | 285,938 | $ | 37,936 | $ | 1,325 | $ | 325,199 | |||||||||||||||||||||
Real estate construction | 31,290 | 3,028 | — | 34,318 | |||||||||||||||||||||||||
Real estate multi-family | 34,357 | 11,786 | — | 46,143 | |||||||||||||||||||||||||
Real estate 1 to 4 family | 98,196 | 8,707 | — | 106,903 | |||||||||||||||||||||||||
Commercial & industrial | 38,287 | 10,217 | — | 48,504 | |||||||||||||||||||||||||
Consumer loans | 1,650 | — | — | 1,650 | |||||||||||||||||||||||||
Gross loans | 489,718 | 71,674 | 1,325 | 562,717 | |||||||||||||||||||||||||
Net deferred loan fees | (495 | ) | — | — | (495 | ) | |||||||||||||||||||||||
Allowance for loan losses | (9,869 | ) | (10 | ) | — | (9,879 | ) | ||||||||||||||||||||||
Net loans | $ | 479,354 | $ | 71,664 | $ | 1,325 | $ | 552,343 | |||||||||||||||||||||
Note: PNCI means Purchased, Not Credit Impaired. PCI means Purchased, Credit Impaired. These designations are assigned to the purchased loans on their date of purchase. Once the loan designation has been made, each loan will retain its designation for the life of the loan. | |||||||||||||||||||||||||||||
Real | Real | ||||||||||||||||||||||||||||
Estate | Estate | ||||||||||||||||||||||||||||
Commercial | Commercial | Real Estate | Multi | 1 to | |||||||||||||||||||||||||
(Dollar amounts in thousands) | & industrial | Real estate | Construction | family | 4 family | Consumer | Total | ||||||||||||||||||||||
Allowance for credit losses | |||||||||||||||||||||||||||||
Beginning balance | $ | 1,237 | $ | 5,763 | $ | 734 | $ | 293 | $ | 1,788 | $ | 64 | $ | 9,879 | |||||||||||||||
Charge-offs | (11 | ) | — | — | — | (62 | ) | — | (73 | ) | |||||||||||||||||||
Recoveries | 14 | 1 | — | — | 1 | — | 16 | ||||||||||||||||||||||
Provision | 28 | (140 | ) | 1 | 76 | 108 | 2 | 75 | |||||||||||||||||||||
Ending balance | $ | 1,268 | $ | 5,624 | $ | 735 | $ | 369 | $ | 1,835 | $ | 66 | $ | 9,897 | |||||||||||||||
Ending balance: individually evaluated for impairment | $ | 156 | $ | 150 | $ | — | $ | — | $ | 428 | $ | 9 | $ | 743 | |||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 1,112 | $ | 5,474 | $ | 735 | $ | 369 | $ | 1,407 | $ | 57 | $ | 9,154 | |||||||||||||||
Recorded Investment in Loans at March 31, 2014 | |||||||||||||||||||||||||||||
Real | Real | ||||||||||||||||||||||||||||
Estate | Estate | ||||||||||||||||||||||||||||
Commercial | Commercial | Real Estate | Multi | 1 to | |||||||||||||||||||||||||
(Dollar amounts in thousands) | & industrial | Real Estate | Construction | family | 4 family | Consumer | Total | ||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Ending balance | $ | 48,799 | $ | 328,862 | $ | 37,444 | $ | 51,304 | $ | 109,365 | $ | 1,532 | $ | 577,306 | |||||||||||||||
Ending balance: individually evaluated for impairment | $ | 4,893 | $ | 14,426 | $ | 1,319 | $ | — | $ | 3,856 | $ | 30 | $ | 24,524 | |||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 43,906 | $ | 314,436 | $ | 36,125 | $ | 51,304 | $ | 105,509 | $ | 1,532 | $ | 552,812 | |||||||||||||||
Allowance for Credit Losses | |||||||||||||||||||||||||||||
As of and For the Year Ended December 31, 2013 | |||||||||||||||||||||||||||||
Real | Real | ||||||||||||||||||||||||||||
Estate | Estate | ||||||||||||||||||||||||||||
Commercial | Commercial | Real Estate | Multi | 1 to | |||||||||||||||||||||||||
(Dollar amounts in thousands) | & industrial | Real estate | Construction | family | 4 family | Consumer | Total | ||||||||||||||||||||||
Allowance for credit losses | |||||||||||||||||||||||||||||
Beginning balance | $ | 1,875 | $ | 4,812 | $ | 857 | $ | — | $ | 1,516 | $ | 64 | $ | 9,124 | |||||||||||||||
Charge-offs | (57 | ) | (262 | ) | (81 | ) | — | (385 | ) | (7 | ) | (792 | ) | ||||||||||||||||
Recoveries | 73 | 35 | 50 | — | 3 | 1 | 162 | ||||||||||||||||||||||
Provision | (654 | ) | 1,178 | (92 | ) | 293 | 654 | 6 | 1,385 | ||||||||||||||||||||
Ending balance | $ | 1,237 | $ | 5,763 | $ | 734 | $ | 293 | $ | 1,788 | $ | 64 | $ | 9,879 | |||||||||||||||
Ending balance: individually evaluated for impairment | $ | 176 | $ | 165 | $ | — | $ | — | $ | 254 | $ | — | $ | 595 | |||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 1,061 | $ | 5,598 | $ | 734 | $ | 293 | $ | 1,534 | $ | 64 | $ | 9,284 | |||||||||||||||
Recorded Investment in Loans at December 31, 2013 | |||||||||||||||||||||||||||||
Real | Real | ||||||||||||||||||||||||||||
Estate | Estate | ||||||||||||||||||||||||||||
Commercial | Commercial | Real Estate | Multi | 1 to | |||||||||||||||||||||||||
(Dollar amounts in thousands) | & industrial | Real Estate | Construction | family | 4 family | Consumer | Total | ||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Ending balance | $ | 48,504 | $ | 323,874 | $ | 34,318 | $ | 46,143 | $ | 106,903 | $ | 1,650 | $ | 561,392 | |||||||||||||||
Ending balance: individually evaluated for impairment | $ | 2,497 | $ | 17,974 | $ | 189 | $ | 375 | $ | 4,077 | $ | — | $ | 25,112 | |||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 46,007 | $ | 305,900 | $ | 34,129 | $ | 46,143 | $ | 102,826 | $ | 1,650 | $ | 536,655 | |||||||||||||||
Allowance for Credit Losses | |||||||||||||||||||||||||||||
For the Three Months Ended March 31, 2013 | |||||||||||||||||||||||||||||
Real | Real | ||||||||||||||||||||||||||||
Estate | Estate | ||||||||||||||||||||||||||||
Commercial | Commercial | Real Estate | Multi | 1 to | |||||||||||||||||||||||||
(Dollar amounts in thousands) | & industrial | Real estate | Construction | family | 4 family | Consumer | Total | ||||||||||||||||||||||
Allowance for credit losses | |||||||||||||||||||||||||||||
Beginning balance | $ | 1,875 | $ | 4,812 | $ | 857 | $ | — | $ | 1,516 | $ | 64 | $ | 9,124 | |||||||||||||||
Charge-offs | — | (239 | ) | (81 | ) | — | (119 | ) | (1 | ) | (440 | ) | |||||||||||||||||
Recoveries | 70 | 2 | — | — | 1 | — | 73 | ||||||||||||||||||||||
Provision | (368 | ) | 355 | (123 | ) | 281 | 464 | (9 | ) | 600 | |||||||||||||||||||
Ending balance | $ | 1,577 | $ | 4,930 | $ | 653 | $ | 281 | $ | 1,862 | $ | 54 | $ | 9,357 | |||||||||||||||
Ending balance: individually evaluated for impairment | $ | 261 | $ | 152 | $ | 19 | $ | — | $ | 323 | $ | — | $ | 755 | |||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 1,316 | $ | 4,778 | $ | 634 | $ | 281 | $ | 1,539 | $ | 54 | $ | 8,602 | |||||||||||||||
The following tables provide information pertaining to impaired loans originated and PNCI loans as of and for the periods to the quarter ended March 31, 2014 and the year ended December 31, 2013. | |||||||||||||||||||||||||||||
As of and for the quarter ended | |||||||||||||||||||||||||||||
31-Mar-14 | |||||||||||||||||||||||||||||
Unpaid | Average | ||||||||||||||||||||||||||||
Recorded | Principal | Related | Recorded | Income | |||||||||||||||||||||||||
(Dollar amounts in thousands) | Investment | Balance | Allowance | Investment | Recognized | ||||||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||||||||
Commercial & industrial | $ | 3,510 | $ | 4,554 | $ | — | $ | 3,552 | $ | 22 | |||||||||||||||||||
Commercial real estate construction | 1,319 | 1,319 | — | 1,319 | 25 | ||||||||||||||||||||||||
Commercial real estate | 8,881 | 9,143 | — | 8,900 | 115 | ||||||||||||||||||||||||
Residential - 1 to 4 family | 695 | 695 | — | 665 | 8 | ||||||||||||||||||||||||
Consumer | 10 | 10 | — | 5 | — | ||||||||||||||||||||||||
Total | 14,415 | 15,721 | — | 14,441 | 170 | ||||||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||||||
Commercial & industrial | $ | 1,383 | $ | 1,801 | $ | 156 | $ | 1,452 | $ | 1 | |||||||||||||||||||
Commercial real estate construction | — | — | — | — | — | ||||||||||||||||||||||||
Commercial real estate | 5,545 | 5,546 | 150 | 5,594 | 68 | ||||||||||||||||||||||||
Residential - 1 to 4 family | 3,161 | 3,300 | 428 | 3,266 | 31 | ||||||||||||||||||||||||
Consumer | 20 | 20 | 9 | 10 | 1 | ||||||||||||||||||||||||
Total | 10,109 | 10,667 | 743 | 10,322 | 101 | ||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Commercial & industrial | $ | 4,893 | $ | 6,355 | $ | 156 | $ | 5,004 | $ | 23 | |||||||||||||||||||
Commercial real estate construction | 1,319 | 1,319 | — | 1,319 | 25 | ||||||||||||||||||||||||
Commercial real estate | 14,426 | 14,689 | 150 | 14,494 | 183 | ||||||||||||||||||||||||
Residential - 1 to 4 family | 3,856 | 3,995 | 428 | 3,931 | 39 | ||||||||||||||||||||||||
Consumer | 30 | 30 | 9 | 15 | 1 | ||||||||||||||||||||||||
Grand total | $ | 24,524 | $ | 26,388 | $ | 743 | $ | 24,763 | $ | 271 | |||||||||||||||||||
As of and for the year ended December 31, 2013 | |||||||||||||||||||||||||||||
Unpaid | Average | ||||||||||||||||||||||||||||
Recorded | Principal | Related | Recorded | Income | |||||||||||||||||||||||||
(Dollar amounts in thousands) | Investment | Balance | Allowance | Investment | Recognized | ||||||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 1,059 | $ | 1,232 | $ | — | $ | 1,204 | $ | 66 | |||||||||||||||||||
Commercial real estate construction | — | — | — | — | — | ||||||||||||||||||||||||
Commercial real estate | 12,397 | 13,535 | — | 11,445 | 565 | ||||||||||||||||||||||||
Real estate multi family | 375 | 375 | — | 384 | 25 | ||||||||||||||||||||||||
Residential - 1 to 4 family | 1,163 | 1,284 | — | 1,009 | 37 | ||||||||||||||||||||||||
Total | 14,994 | 16,426 | — | 14,042 | 693 | ||||||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 1,438 | $ | 1,871 | $ | 166 | $ | 1,710 | $ | 15 | |||||||||||||||||||
Commercial real estate construction | 189 | 196 | 10 | 198 | 18 | ||||||||||||||||||||||||
Commercial real estate | 5,577 | 5,588 | 165 | 4,972 | 254 | ||||||||||||||||||||||||
Residential - 1 to 4 family | 2,914 | 2,923 | 254 | 2,989 | 115 | ||||||||||||||||||||||||
Total | 10,118 | 10,578 | 595 | 9,869 | 402 | ||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 2,497 | $ | 3,103 | $ | 166 | $ | 2,914 | $ | 81 | |||||||||||||||||||
Commercial real estate construction | 189 | 196 | 10 | 198 | 18 | ||||||||||||||||||||||||
Commercial real estate | 17,974 | 19,123 | 165 | 16,417 | 819 | ||||||||||||||||||||||||
Real estate multi family | 375 | 375 | — | 384 | 25 | ||||||||||||||||||||||||
Residential - 1 to 4 family | 4,077 | 4,207 | 254 | 3,998 | 152 | ||||||||||||||||||||||||
Grand total | $ | 25,112 | $ | 27,004 | $ | 595 | $ | 23,911 | $ | 1,095 | |||||||||||||||||||
As of and for the quarter ended | |||||||||||||||||||||||||||||
31-Mar-13 | |||||||||||||||||||||||||||||
Unpaid | Average | ||||||||||||||||||||||||||||
Recorded | Principal | Related | Recorded | Income | |||||||||||||||||||||||||
(Dollar amounts in thousands) | Investment | Balance | Allowance | Investment | Recognized | ||||||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||||||||
Commercial & industrial | $ | 2,160 | $ | 2,310 | $ | — | $ | 2,182 | $ | 28 | |||||||||||||||||||
Real estate-multi family | 3,405 | 3,532 | — | 3,534 | 50 | ||||||||||||||||||||||||
Commercial real estate | 10,858 | 11,719 | — | 10,652 | 118 | ||||||||||||||||||||||||
Residential - 1 to 4 family | 1,344 | 1,446 | — | 1,347 | 18 | ||||||||||||||||||||||||
Total | 17,767 | 19,007 | — | 17,715 | 214 | ||||||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||||||
Commercial & industrial | $ | 1,764 | $ | 2,231 | $ | 261 | $ | 1,787 | $ | 3 | |||||||||||||||||||
Commercial real estate construction | 199 | 200 | 19 | 200 | — | ||||||||||||||||||||||||
Commercial real estate | 5,174 | 5,413 | 152 | 5,304 | 57 | ||||||||||||||||||||||||
Residential - 1 to 4 family | 2,674 | 2,677 | 323 | 2,674 | 21 | ||||||||||||||||||||||||
Total | 9,811 | 10,521 | 755 | 9,965 | 81 | ||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Commercial & industrial | $ | 3,924 | $ | 4,541 | $ | 261 | $ | 3,969 | $ | 31 | |||||||||||||||||||
Real estate-multi family | 3,405 | 3,532 | — | 3,534 | 50 | ||||||||||||||||||||||||
Commercial real estate construction | 199 | 200 | 19 | 200 | — | ||||||||||||||||||||||||
Commercial real estate | 16,032 | 17,132 | 152 | 15,956 | 175 | ||||||||||||||||||||||||
Residential - 1 to 4 family | 4,018 | 4,123 | 323 | 4,021 | 39 | ||||||||||||||||||||||||
Grand total | $ | 27,578 | $ | 29,528 | $ | 755 | $ | 27,680 | $ | 295 | |||||||||||||||||||
Nonaccrual loans totaled $6,969,000 and $7,351,000 as of March 31, 2014 and December 31, 2013. The difference between impaired loans and nonaccrual loans classifications are loans that have restructured and performing under modified loan agreements, and where principal and interest is considered to be collectible. | |||||||||||||||||||||||||||||
Loans on Nonaccrual Status as of | |||||||||||||||||||||||||||||
March 31, | December 31, | ||||||||||||||||||||||||||||
(Dollar amounts in thousands) | 2014 | 2013 | |||||||||||||||||||||||||||
Commercial & industrial | $ | 1,992 | $ | 2,046 | |||||||||||||||||||||||||
Real estate - construction | — | 189 | |||||||||||||||||||||||||||
Commercial real estate | 4,274 | 4,290 | |||||||||||||||||||||||||||
Real estate - 1 to 4 family | 674 | 826 | |||||||||||||||||||||||||||
Consumer | 29 | — | |||||||||||||||||||||||||||
Total | $ | 6,969 | $ | 7,351 | |||||||||||||||||||||||||
Interest income on impaired loans of $271,000 and $1,095,000 was recognized for cash payments received during the quarter ended March 31, 2014 and the year ended December 31, 2013, respectively. The amount of interest on impaired loans not collected for the quarter ended March 31, 2014 was $85,000, and the quarter ended March 31, 2013 was $33,000. The cumulative amount of unpaid interest on impaired loans was $3,580,000 and $2,972,000 as of March 31, 2014 and March 31, 2013, respectively. Total outstanding principal of all troubled debt restructured loans as of March 31, 2014 was $9,355,000, of which $2,285,000 was commercial and industrial loans, $3,210,000 was real estate 1 to 4 family residential loans, and $8,424,000 commercial real estate loans. Total outstanding principal of troubled debt restructured loans at December 31, 2013 was $13,706,000, of which $2,412,000 was commercial and industrial loans, $189,000 was real estate construction loans, $2,650,000 was real estate 1 to 4 family loans, and $8,455,000 was commercial real estate loans. | |||||||||||||||||||||||||||||
Troubled Debt Restructurings | |||||||||||||||||||||||||||||
The Company has reassessed all restructurings that have occurred within the loan portfolio as troubled debt restructurings. The Company identified as troubled debt restructurings certain loans for which the allowance for credit losses had previously been measured under a general allowance for credit losses methodology (ASC 450-20). Upon identifying the reassessed loans as troubled debt restructurings, the Company also identified them as impaired under the guidance in ASC 310-10-35. | |||||||||||||||||||||||||||||
Total troubled debt restructured loans outstanding at | |||||||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||||||||||||||
Non- | Non- | ||||||||||||||||||||||||||||
Accrual | accrual | Total | Accrual | accrual | Total | ||||||||||||||||||||||||
(dollars in thousands) | status | status | modifications | status | status | modifications | |||||||||||||||||||||||
Commercial & industrial | $ | 374 | $ | 1,911 | $ | 2,285 | $ | 461 | $ | 1,951 | $ | 2,412 | |||||||||||||||||
Real Estate construction | — | — | — | — | 189 | 189 | |||||||||||||||||||||||
Real estate 1 to 4 family | 2,688 | 522 | 3,210 | 2,121 | 529 | 2,650 | |||||||||||||||||||||||
Commercial real estate | 6,293 | 2,131 | 8,424 | 6,315 | 2,140 | 8,455 | |||||||||||||||||||||||
Total | $ | 9,355 | $ | 4,564 | $ | 13,919 | $ | 8,897 | $ | 4,809 | $ | 13,706 | |||||||||||||||||
Modification Categories | |||||||||||||||||||||||||||||
The Company offers a variety of modifications to borrowers. The modification categories offered can generally be described in the following categories. | |||||||||||||||||||||||||||||
Rate Modification – A modification in which the interest rate is changed. | |||||||||||||||||||||||||||||
Term modification – A modification in which the maturity date, timing of payments, or frequency of payments is changed. | |||||||||||||||||||||||||||||
Interest Only Modification – A modification in which the loan is converted to interest only payments for a period of time. | |||||||||||||||||||||||||||||
Payment Modification – A modification in which the dollar amount of the payment is changed, other than an interest only modification described above. | |||||||||||||||||||||||||||||
As of March 31, 2014, there were no commitments for additional funding of troubled debt restructured loans. | |||||||||||||||||||||||||||||
Modifications | |||||||||||||||||||||||||||||
For the Quarter Ended March 31, 2014 | |||||||||||||||||||||||||||||
Pre- | Post- | ||||||||||||||||||||||||||||
Modification | Modification | ||||||||||||||||||||||||||||
Outstanding | Outstanding | ||||||||||||||||||||||||||||
Number of | Recorded | Recorded | |||||||||||||||||||||||||||
(Dollar amounts in thousands) | Contracts | Investment | Investment | ||||||||||||||||||||||||||
Real estate 1 to 4 family | 1 | $ | 574 | $ | 574 | ||||||||||||||||||||||||
Total | 1 | $ | 574 | $ | 574 | ||||||||||||||||||||||||
As of March 31, 2014, there were no loans modified within the previous 12 months and for which there was a payment default during the period. All restructurings were a modification of interest rate and/or payment. There were no principal reductions granted. | |||||||||||||||||||||||||||||
Modifications | |||||||||||||||||||||||||||||
For the Quarter Ended March 31, 2013 | |||||||||||||||||||||||||||||
Pre- | Post- | ||||||||||||||||||||||||||||
Modification | Modification | ||||||||||||||||||||||||||||
Outstanding | Outstanding | ||||||||||||||||||||||||||||
Number of | Recorded | Recorded | |||||||||||||||||||||||||||
(Dollar amounts in thousands) | Contracts | Investment | Investment | ||||||||||||||||||||||||||
Real Estate Construction | 1 | $ | 199 | $ | 199 | ||||||||||||||||||||||||
Real estate 1 to 4 family | 1 | 299 | 299 | ||||||||||||||||||||||||||
Commercial real estate | 3 | 4,935 | 4,935 | ||||||||||||||||||||||||||
Total | 5 | $ | 5,433 | $ | 5,433 | ||||||||||||||||||||||||
As of March 31, 2013, there were no loans modified within the previous 12 months and for which there was a payment default during the period. All restructurings were a modification of interest rate and/or payment. There were no principal reductions granted. | |||||||||||||||||||||||||||||
Risk rating system | |||||||||||||||||||||||||||||
Loans to borrowers graded as pass or pooled loans represent loans to borrowers of acceptable or better credit quality. They demonstrate sound financial positions, repayment capacity and credit history. They have an identifiable and stable source of repayment. | |||||||||||||||||||||||||||||
Special mention loans have potential weaknesses that deserve management’s attention. If left uncorrected these potential weaknesses may result in a deterioration of the repayment prospects for the asset or in the Bank’s credit position at some future date. These assets are “not adversely classified” and do not expose the Bank to sufficient risk to warrant adverse classification. | |||||||||||||||||||||||||||||
Substandard loans are inadequately protected by current sound net worth, paying capacity of the borrower, or pledged collateral. Loans are normally classified as Substandard when there are unsatisfactory characteristics causing more than acceptable levels of risk. A substandard loan normally has one or more well-defined weaknesses that could jeopardize the repayment of the debt. For example, a) cash flow deficiency, which may jeopardize future payments; b) sale of non-collateral assets has become primary source of repayment; c) the borrower is bankrupt; or d) for any other reason, future repayment is dependent on court action. | |||||||||||||||||||||||||||||
Doubtful loans represent credits with weakness inherent in the Substandard classification and where collection or liquidation in full is highly questionable. To be classified Doubtful, there must be specific pending factors which prevent the Loan Review Officer from determining the amount of loss contained in the credit. When the amount of loss can be reasonably estimated, that amount is classified as “loss” and the remainder is classified as Substandard. | |||||||||||||||||||||||||||||
Commercial Real Estate Loans – Multi-Family | |||||||||||||||||||||||||||||
Our multi-family commercial real estate loans are secured by multi-family properties located primarily in San Mateo and San Francisco counties. These loans are made to investors where our primary source of repayment is from cash flows generated by the properties, through rent collections. The borrowers’ promissory notes are secured with recorded liens on the underlying properties. The borrowers would normally also be required to personally guarantee repayment of the loans. The Bank uses conservative underwriting standards in reviewing applications for credit. Generally, our borrowers have multiple sources of income, so if cash flow generated from the property declines, at least in the short term, the borrowers can normally cover these short term cash flow deficiencies from their available cash reserves. Risk of loss to the Bank is increased when there are cash flow decreases sufficiently large and for such a prolonged period of time that loan payments can no longer be made by the borrowers. | |||||||||||||||||||||||||||||
Commercial Real Estate Loans – Other | |||||||||||||||||||||||||||||
Commercial real estate loans consist of loans secured by non-farm, non-residential properties, including, but not limited to industrial, hotel, assisted care, retail, office and mixed use buildings. Our commercial real estate loans are made primarily to investors or small businesses where our primary source of repayment is from cash flows generated by the properties, either through rent collection or business profits. The borrower’s promissory notes are secured with recorded liens on the underlying property. The borrowers would normally also be required to personally guarantee repayment of the loan. The Bank uses conservative underwriting standards in reviewing applications for credit. Generally, our borrowers have multiple sources of income, so if cash flow generated from the property declines, at least in the short term, the borrowers can normally cover these short term cash flow deficiencies from their available cash reserves. Risk of loss to the Bank is increased when there are cash flow decreases sufficiently large and for such a prolonged period of time that loan payments can no longer be made by the borrowers. | |||||||||||||||||||||||||||||
Real Estate Construction Loans | |||||||||||||||||||||||||||||
Our real estate construction loans are generally made to borrowers who are rehabilitating a building, converting a building use from one type of use to another, or developing land and building residential or commercial structures for sale or lease. The borrower’s promissory notes are secured with recorded liens on the underlying property. The borrowers would normally also be required to personally guarantee repayment of the loan. The Bank uses conservative underwriting standards in reviewing applications for credit. Generally, our borrowers have sufficient resources to make the required construction loan payments during the construction and absorption or lease-up period. After construction is complete, the loans are normally paid off from proceeds from the sale of the building or through a refinance to a commercial real estate loan. Risk of loss to the Bank is increased when there are material construction cost overruns, significant delays in the time to complete the project and/or there has been a material drop in the value of the projects in the marketplace since the inception of the loan. | |||||||||||||||||||||||||||||
Commercial and Industrial Loans | |||||||||||||||||||||||||||||
Our commercial and industrial loans are generally made to small businesses to provide them with at least some of the working capital necessary to fund their daily business operations. These loans are generally either unsecured or secured by fixed assets, accounts receivable and/or inventory. The borrowers would normally also be required to personally guarantee repayment of the loan. The Bank uses conservative underwriting standards in reviewing applications for credit. Risk of loss to the Bank is increased when our small business customers experience a significant business downturn, incur significant financial losses, or file for relief from creditors through bankruptcy proceedings. | |||||||||||||||||||||||||||||
Residential Real Estate Loans | |||||||||||||||||||||||||||||
Our residential real estate loans are generally made to borrowers who are buying or refinancing their primary personal residence or a rental property of 1-4 single family residential units. The Bank uses conservative underwriting standards in reviewing applications for credit. Risk of loss to the Bank is increased when borrowers lose their primary source of income and/or property values decline significantly. | |||||||||||||||||||||||||||||
Consumer and Installment Loans | |||||||||||||||||||||||||||||
Our consumer and installment loans generally consist of personal loans, credit card loans, automobile loans or other loans secured by personal property. The Bank uses conservative underwriting standards in reviewing applications for credit. Risk of loss to the Bank is increased when borrowers lose their primary source of income, or file for relief from creditors through bankruptcy proceedings. | |||||||||||||||||||||||||||||
Age Analysis of Past Due Loans | |||||||||||||||||||||||||||||
As of March 31, 2014 | |||||||||||||||||||||||||||||
30-59 | 60-89 | ||||||||||||||||||||||||||||
Days | Days | Over | Total | ||||||||||||||||||||||||||
Past | Past | 90 | Past | Total | |||||||||||||||||||||||||
(Dollar amounts in thousands) | Due | Due | Days | Due | Current | Loans | |||||||||||||||||||||||
Originated | |||||||||||||||||||||||||||||
Commercial real estate | $ | 901 | $ | — | $ | 1,504 | $ | 2,405 | $ | 289,464 | $ | 291,869 | |||||||||||||||||
Real estate construction | — | — | — | — | 34,895 | 34,895 | |||||||||||||||||||||||
Real estate multi family | — | — | — | — | 39,571 | 39,571 | |||||||||||||||||||||||
Real estate 1 to 4 family | — | 72 | 154 | 226 | 101,995 | 102,221 | |||||||||||||||||||||||
Commercial & industrial | 287 | — | 1,969 | 2,256 | 36,708 | 38,964 | |||||||||||||||||||||||
Consumer | 101 | — | 19 | 120 | 1,412 | 1,532 | |||||||||||||||||||||||
Total | $ | 1,289 | $ | 72 | $ | 3,646 | $ | 5,007 | $ | 504,045 | $ | 509,052 | |||||||||||||||||
Purchased | |||||||||||||||||||||||||||||
Not credit impaired | |||||||||||||||||||||||||||||
Commercial real estate | $ | — | $ | — | $ | 372 | $ | 372 | $ | 35,296 | $ | 35,668 | |||||||||||||||||
Real estate construction | — | — | — | — | 2,549 | 2,549 | |||||||||||||||||||||||
Real estate multi-family | — | — | — | — | 11,733 | 11,733 | |||||||||||||||||||||||
Real estate 1 to 4 family | — | — | — | — | 7,144 | 7,144 | |||||||||||||||||||||||
Commercial & industrial | — | — | — | — | 9,835 | 9,835 | |||||||||||||||||||||||
Total | $ | — | $ | — | $ | 372 | $ | 372 | $ | 66,557 | $ | 66,929 | |||||||||||||||||
Purchased | |||||||||||||||||||||||||||||
Credit impaired | |||||||||||||||||||||||||||||
Commercial real estate | $ | — | $ | — | $ | 1,325 | $ | 1,325 | $ | — | $ | 1,325 | |||||||||||||||||
Real estate construction | — | — | — | — | — | — | |||||||||||||||||||||||
Real estate multi-family | — | — | — | — | — | — | |||||||||||||||||||||||
Real estate 1 to 4 family | — | — | — | — | — | — | |||||||||||||||||||||||
Commercial & industrial | — | — | — | — | — | — | |||||||||||||||||||||||
Total | $ | — | $ | — | $ | 1,325 | $ | 1,325 | $ | — | $ | 1,325 | |||||||||||||||||
At March 31, 2014 there were no loans that were 90 days or more past due where interest was still accruing. | |||||||||||||||||||||||||||||
Age Analysis of Past Due Loans | |||||||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||
30-59 | 60-89 | ||||||||||||||||||||||||||||
Days | Days | Over | Total | ||||||||||||||||||||||||||
Past | Past | 90 | Past | Total | |||||||||||||||||||||||||
(Dollar amounts in thousands) | Due | Due | Days | Due | Current | Loans | |||||||||||||||||||||||
Originated | |||||||||||||||||||||||||||||
Commercial real estate | $ | 1,403 | $ | — | $ | 2,349 | $ | 3,752 | $ | 282,186 | $ | 285,938 | |||||||||||||||||
Real estate construction | — | — | — | — | 31,290 | 31,290 | |||||||||||||||||||||||
Real estate multi family | — | — | — | — | 34,357 | 34,357 | |||||||||||||||||||||||
Real estate 1 to 4 family | 161 | 75 | 826 | 1,062 | 97,134 | 98,196 | |||||||||||||||||||||||
Commercial & industrial | 563 | 210 | 2,046 | 2,819 | 35,468 | 38,287 | |||||||||||||||||||||||
Consumer | 116 | 19 | — | 135 | 1,515 | 1,650 | |||||||||||||||||||||||
Total | $ | 2,243 | $ | 304 | $ | 5,221 | $ | 7,768 | $ | 481,950 | $ | 489,718 | |||||||||||||||||
Purchased | |||||||||||||||||||||||||||||
Not credit impaired | |||||||||||||||||||||||||||||
Commercial real estate | $ | — | $ | — | $ | 616 | $ | 616 | $ | 37,320 | $ | 37,936 | |||||||||||||||||
Real estate construction | — | — | 189 | 189 | 2,839 | 3,028 | |||||||||||||||||||||||
Real estate multi-family | — | — | — | — | 11,786 | 11,786 | |||||||||||||||||||||||
Real estate 1 to 4 family | — | — | — | — | 8,707 | 8,707 | |||||||||||||||||||||||
Commercial & industrial | — | — | — | — | 10,217 | 10,217 | |||||||||||||||||||||||
Total | $ | — | $ | — | $ | 805 | $ | 805 | $ | 70,869 | $ | 71,674 | |||||||||||||||||
Purchased | |||||||||||||||||||||||||||||
Credit impaired | |||||||||||||||||||||||||||||
Commercial real estate | $ | — | $ | — | $ | 1,325 | $ | 1,325 | $ | — | $ | 1,325 | |||||||||||||||||
Real estate construction | — | — | — | — | — | — | |||||||||||||||||||||||
Real estate multi-family | — | — | — | — | — | — | |||||||||||||||||||||||
Real estate 1 to 4 family | — | — | — | — | — | — | |||||||||||||||||||||||
Commercial & industrial | — | — | — | — | — | — | |||||||||||||||||||||||
Total | $ | — | $ | — | $ | 1,325 | $ | 1,325 | $ | — | $ | 1,325 | |||||||||||||||||
At December 31, 2013, there were no loans that were 90 days or more past due where interest was still accruing. | |||||||||||||||||||||||||||||
Credit Quality Indicators | |||||||||||||||||||||||||||||
As of March 31, 2014 | |||||||||||||||||||||||||||||
Special | Sub- | Total | |||||||||||||||||||||||||||
(Dollar amounts in thousands) | Pass | mention | standard | Doubtful | loans | ||||||||||||||||||||||||
Originated | |||||||||||||||||||||||||||||
Commercial real estate | $ | 288,632 | $ | — | $ | 3,237 | $ | — | $ | 291,869 | |||||||||||||||||||
Real estate construction | 33,851 | — | 1,044 | — | 34,895 | ||||||||||||||||||||||||
Real estate multi-family | 39,571 | — | — | — | 39,571 | ||||||||||||||||||||||||
Real estate 1 to 4 family | 101,547 | — | 522 | 152 | 102,221 | ||||||||||||||||||||||||
Commercial & industrial | 37,596 | — | 1,349 | 19 | 38,964 | ||||||||||||||||||||||||
Consumer loans | 1,532 | — | — | — | 1,532 | ||||||||||||||||||||||||
Totals | $ | 502,729 | $ | — | $ | 6,152 | $ | 171 | $ | 509,052 | |||||||||||||||||||
Purchased | |||||||||||||||||||||||||||||
Not credit impaired | |||||||||||||||||||||||||||||
Commercial real estate | $ | 26,090 | $ | 1,180 | $ | 8,398 | $ | — | $ | 35,668 | |||||||||||||||||||
Real estate construction | 1,230 | — | 1,319 | — | 2,549 | ||||||||||||||||||||||||
Real estate multi-family | 11,733 | — | — | — | 11,733 | ||||||||||||||||||||||||
Real estate 1 to 4 family | 6,737 | — | 407 | — | 7,144 | ||||||||||||||||||||||||
Commercial & industrial | 9,835 | — | — | — | 9,835 | ||||||||||||||||||||||||
Total | $ | 55,625 | $ | 1,180 | $ | 10,124 | $ | — | $ | 66,929 | |||||||||||||||||||
Purchased | |||||||||||||||||||||||||||||
Credit impaired | |||||||||||||||||||||||||||||
Commercial real estate | $ | 1,325 | |||||||||||||||||||||||||||
Total | $ | 1,325 | |||||||||||||||||||||||||||
Credit Quality Indicators As of December 31, 2013 | |||||||||||||||||||||||||||||
Special | Sub- | Total | |||||||||||||||||||||||||||
(Dollar amounts in thousands) | Pass | mention | standard | Doubtful | loans | ||||||||||||||||||||||||
Originated | |||||||||||||||||||||||||||||
Commercial real estate | $ | 280,356 | $ | 2,330 | $ | 3,252 | $ | — | $ | 285,938 | |||||||||||||||||||
Real estate construction | 29,673 | 573 | 1,044 | — | 31,290 | ||||||||||||||||||||||||
Real estate multi-family | 34,357 | — | — | — | 34,357 | ||||||||||||||||||||||||
Real estate 1 to 4 family | 97,514 | — | 429 | 253 | 98,196 | ||||||||||||||||||||||||
Commercial & industrial | 36,837 | — | 1,439 | 11 | 38,287 | ||||||||||||||||||||||||
Consumer loans | 1,631 | — | 19 | — | 1,650 | ||||||||||||||||||||||||
Totals | $ | 480,368 | $ | 2,903 | $ | 6,183 | $ | 264 | $ | 489,718 | |||||||||||||||||||
Purchased | |||||||||||||||||||||||||||||
Not credit impaired | |||||||||||||||||||||||||||||
Commercial real estate | $ | 28,342 | $ | 4,951 | $ | 4,643 | $ | — | $ | 37,936 | |||||||||||||||||||
Real estate construction | 1,520 | — | 1,508 | — | 3,028 | ||||||||||||||||||||||||
Real estate multi-family | 11,786 | — | — | — | 11,786 | ||||||||||||||||||||||||
Real estate 1 to 4 family | 8,299 | — | 408 | — | 8,707 | ||||||||||||||||||||||||
Commercial & industrial | 10,217 | — | — | — | 10,217 | ||||||||||||||||||||||||
Total | $ | 60,164 | $ | 4,951 | $ | 6,559 | $ | — | $ | 71,674 | |||||||||||||||||||
Purchased | |||||||||||||||||||||||||||||
Credit impaired | |||||||||||||||||||||||||||||
Commercial real estate | $ | 1,325 | |||||||||||||||||||||||||||
Total | $ | 1,325 |
BORROWINGS
BORROWINGS | 3 Months Ended |
Mar. 31, 2014 | |
BORROWINGS | ' |
BORROWINGS | ' |
NOTE F – BORROWINGS | |
Federal home Loan Bank advances | |
There is an outstanding advance dated March 14, 2014 in the amount of $10,000,000 at 0.16% which matures on April 14, 2014. | |
There is an outstanding advance dated March 24, 2014 in the amount of $15,000,000 at 0.17% which matures on April 24, 2014. | |
Corporate loan | |
On March 27, 2014, FNB Bancorp received funding under a $6,000,000 term loan credit facility. This loan carries a variable rate of interest that fluctuates on a monthly basis. The interest rate is based on the 3 month LIBOR rate plus 4%. Payments of $50,000 in principal plus accrued interest are payable monthly. The first loan payment is due May 1, 2014. The maturity date on this credit facility is March 26, 2019. On the maturity date, all outstanding principal plus accrued interest shall become due and payable. FNB Bancorp has pledged it stock ownership in First National Bank of Northern California as collateral subject to the terms and conditions contained in the Loan Agreement and the Pledge and Security Agreement. FNB Bancorp retains the right to prepay this debt at any time upon not less than 7 days’ prior written notice to Lender. The proceeds from this loan were contributed to the Bank as an additional capital contribution. This capital contribution qualified as Tier 1 capital for the Bank under regulatory capital guidelines. |
FAIR_VALUE_MEASUREMENT
FAIR VALUE MEASUREMENT | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
FAIR VALUE MEASUREMENT TABLES | ' | ||||||||||||||||||||
FAIR VALUE MEASUREMENT | ' | ||||||||||||||||||||
NOTE G – FAIR VALUE MEASUREMENT | |||||||||||||||||||||
The following table presents information about the Company’s assets and liabilities measured at fair value as of March 31, 2014 and December 31, 2013, and indicates the fair value techniques used by the Company to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. | |||||||||||||||||||||
The following tables present the recorded amounts of assets measured at fair value on a recurring basis: | |||||||||||||||||||||
Fair Value Measurements at March 31, 2014, Using | |||||||||||||||||||||
Quoted Prices | |||||||||||||||||||||
in Active | |||||||||||||||||||||
Markets | Other | Significant | |||||||||||||||||||
for Identical | Observable | Unobservable | |||||||||||||||||||
Fair Value | Assets | Inputs | Inputs | ||||||||||||||||||
(Dollar amounts in thousands) | 3/31/14 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
Description | |||||||||||||||||||||
U. S. Treasury securities | $ | 2,004 | $ | 2,004 | $ | — | $ | — | |||||||||||||
Obligations of U.S. Government agencies | 71,294 | — | 71,294 | — | |||||||||||||||||
Mortgage-backed securities | 74,241 | — | 74,241 | — | |||||||||||||||||
Obligations of states and political subdivisions | 84,577 | — | 84,577 | — | |||||||||||||||||
Corporate debt | 26,068 | — | 26,068 | — | |||||||||||||||||
Total assets measured at fair value | $ | 258,184 | $ | 2,004 | $ | 256,180 | $ | — | |||||||||||||
Fair Value Measurements | |||||||||||||||||||||
at December 31, 2013, Using | |||||||||||||||||||||
Quoted Prices | |||||||||||||||||||||
in Active | |||||||||||||||||||||
Markets | Other | Significant | |||||||||||||||||||
for Identical | Observable | Unobservable | |||||||||||||||||||
Fair Value | Assets | Inputs | Inputs | ||||||||||||||||||
(Dollar amounts in thousands) | 12/31/13 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
Description | |||||||||||||||||||||
U. S. Treasury securities | $ | 3,027 | $ | 3,027 | $ | — | $ | — | |||||||||||||
Obligations of U.S. Government agencies | 73,319 | — | 73,319 | — | |||||||||||||||||
Mortgage-backed securities | 77,860 | — | 77,860 | — | |||||||||||||||||
Obligations of states and political subdivisions | 82,676 | — | 82,676 | — | |||||||||||||||||
Corporate debt | 27,106 | — | 27,106 | — | |||||||||||||||||
Total assets measured at fair value | $ | 263,988 | $ | 3,027 | $ | 260,961 | $ | — | |||||||||||||
The following tables present the recorded amounts of assets measured at fair value on a non-recurring basis: | |||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||
at March 31, 2014, Using | |||||||||||||||||||||
Quoted Prices in | |||||||||||||||||||||
Active Markets | Other | Significant | |||||||||||||||||||
for Identical | Observable | Unobservable | |||||||||||||||||||
Fair Value | Assets | Inputs | Inputs | ||||||||||||||||||
(Dollar amounts in thousands) | 3/31/14 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
Description | |||||||||||||||||||||
Impaired loans | $ | 1,142 | $ | — | $ | — | $ | 1,142 | |||||||||||||
Total impaired assets measured at fair value | $ | 1,142 | $ | — | $ | — | $ | 1,142 | |||||||||||||
Fair Value Measurements | |||||||||||||||||||||
at December 31, 2013, Using | |||||||||||||||||||||
Quoted Prices in | |||||||||||||||||||||
Active Markets | Other | Significant | |||||||||||||||||||
for Identical | Observable | Unobservable | |||||||||||||||||||
Fair Value | Assets | Inputs | Inputs | ||||||||||||||||||
(Dollar amounts in thousands) | 12/31/13 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
Description | |||||||||||||||||||||
Impaired loans | $ | 4,810 | $ | — | $ | — | $ | 4,810 | |||||||||||||
Other real estate owned | 1,771 | — | — | 1,771 | |||||||||||||||||
Total impaired assets measured at fair value | $ | 6,581 | $ | — | $ | — | $ | 6,581 | |||||||||||||
The Bank does not record loans at fair value. However, from time to time, if a loan is considered impaired, a specific allocation within the allowance for loan losses may be required. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. The fair value of impaired loans is estimated using one of several methods, including collateral value, market value of similar debt, enterprise value, liquidation value and cash flows. Those impaired loans not requiring an allowance represent loans for which the value of the expected repayments or collateral exceed the recorded investments in such loans. Impaired loans where an allowance is established based on the fair value of collateral or when the impaired loan has been written down to fair value require classification in the fair value hierarchy. If the fair value of the collateral is based on a non-observable market price or a current appraised value, the Bank records the impaired loans as nonrecurring Level 3. When an appraised value is not available, or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Bank also records the impaired loans as nonrecurring Level 3. | |||||||||||||||||||||
Other real estate owned is carried at the lower of historical cost or fair market value less costs to sell. An appraisal (a Level 3 valuation) is obtained at the time the Bank acquires property through the foreclosure process. Any loan balance outstanding that exceeds the appraised value of the property is charged off against the allowance for loan loss at the time the property is acquired. Subsequent to acquisition, the Bank updates the property’s appraised value on at least an annual basis. If the value of the property has declined during the year, a loss due to valuation impairment charge is recorded along with a corresponding reduction in the book carrying value of the property. | |||||||||||||||||||||
The Company obtains third party appraisals on its impaired loans held-for-investment and foreclosed assets to determine fair value. When the appraisals are received, Management reviews the assumptions and methodology utilized in the appraisal, as well as the overall resulting value in conjunction with independent data sources such as recent market data and industry-wide statistics. We generally use a 6% discount for selling costs which is applied to all properties, regardless of size. Generally, the third party appraisals apply the “market approach,” which is a valuation technique that uses prices and other relevant information generated by market transactions involving identical or comparable (that is, similar) assets, liabilities, or a group of assets and liabilities, such as a business. Adjustments are then made based on the type of property, age of appraisal, current status of property and other related factors to estimate the current value of collateral. The value of OREO is determined based on independent appraisals, similar to the process used for impaired loans, discussed above, and is generally classified as Level 3. | |||||||||||||||||||||
Fair Values of Financial Instruments. | |||||||||||||||||||||
The following methods and assumptions were used by the Company in estimating the fair value disclosures for financial instruments. | |||||||||||||||||||||
Cash and Cash Equivalents, including interest-bearing time deposits with financial institutions. | |||||||||||||||||||||
The carrying amounts reported in the balance sheet for cash and short-term instruments are a reasonable estimate of fair value, which will approximate their historical cost. | |||||||||||||||||||||
Securities Available-for-Sale. | |||||||||||||||||||||
Fair values for investment securities are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments. | |||||||||||||||||||||
Loans Receivable. | |||||||||||||||||||||
For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values and credit risk factors. For fixed rate loans, fair values are based on discounted cash flows, credit risk factors, and liquidity factors. | |||||||||||||||||||||
Other equity securities. | |||||||||||||||||||||
These are mostly Federal Reserve Bank stock and Federal Home Loan Bank stock, carried in Other Assets. They are not traded, and not available for sale, and have no fair market value. | |||||||||||||||||||||
Deposit liabilities. | |||||||||||||||||||||
The fair values disclosed for demand deposits (e.g., interest and non-interest checking, savings, and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). The fair values for fixed-rate certificates of deposit are based on discounted cash flows. | |||||||||||||||||||||
Federal Home Loan Bank Advances. | |||||||||||||||||||||
The fair values of Federal Home Loan Bank Advances are based on discounted cash flows. The discount rate is equal to the market rate currently offered on similar products. | |||||||||||||||||||||
Notes payable. | |||||||||||||||||||||
Fair value is equal to the current balance. They represent a corporate loan with a monthly variable rate, based on the 3-month LIBOR rate plus 4%. | |||||||||||||||||||||
Accrued Interest Receivable and Payable. | |||||||||||||||||||||
The interest receivable and payable balances approximate their fair value due to the short-term nature of their settlement dates. | |||||||||||||||||||||
Undisbursed loan commitments, lines of credit, Mastercard line and standby letters of credit. | |||||||||||||||||||||
The fair value of these off-balance sheet items are based on discounted cash flows of expected fundings. | |||||||||||||||||||||
The Bank has excluded non-financial assets and non-financial liabilities defined by the Codification (ASC 820-10-15-A), such as Bank premises and equipment, deferred taxes and other liabilities. In addition, the Bank has not disclosed the fair value of financial instruments specifically excluded from disclosure requirements of the Financial Instruments Topic of the Codification (ASC 825-10-50-8), such as Bank-owned life insurance policies. | |||||||||||||||||||||
The following table provides summary information on the estimated fair value of financial instruments at March 31, 2014: | |||||||||||||||||||||
Carrying | Fair | Fair value measurements | |||||||||||||||||||
(Dollar amounts in thousands) | amount | value | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 19,244 | $ | 19,244 | $ | 19,244 | |||||||||||||||
Interest-bearing time deposits with financial institutions | 4,805 | 4,887 | $ | 4,887 | |||||||||||||||||
Securities available for sale | 258,184 | 258,184 | 2,004 | 256,180 | |||||||||||||||||
Loans | 577,306 | 578,368 | $ | 578,368 | |||||||||||||||||
Other equity securities | 5,307 | 5,307 | 5,307 | ||||||||||||||||||
Accrued interest receivable | 3,758 | 3,758 | 3,758 | ||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | 773,945 | 774,305 | 774,305 | ||||||||||||||||||
Federal Home Loan Bank advances | 25,000 | 25,000 | 25,000 | ||||||||||||||||||
Notes payable | 6,000 | 6,000 | 6,000 | ||||||||||||||||||
Accrued interest payable | 239 | 239 | 239 | ||||||||||||||||||
Off-balance-sheet liabilities: | |||||||||||||||||||||
Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit | — | 1,285 | 1,285 | ||||||||||||||||||
The carrying amount of loans include $6,969,000 of nonaccrual loans (loans that are not accruing interest) as of March 31, 2014. The fair value of nonaccrual loans is based on the collateral values that secure the loans or the cash flows expected to be received. | |||||||||||||||||||||
The following table provides summary information on the estimated fair value of financial instruments at December 31, 2013: | |||||||||||||||||||||
31-Dec-13 | Carrying | Fair | Fair value measurements | ||||||||||||||||||
(Dollar amounts in thousands) | amount | value | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 14,007 | $ | 14,007 | $ | 14,007 | |||||||||||||||
Interest-bearing time deposits with financial institutions | $ | 5,543 | $ | 5,543 | $ | 5,543 | |||||||||||||||
Securities available for sale | $ | 263,988 | $ | 263,988 | $ | 3,027 | $ | 260,961 | |||||||||||||
Loans | $ | 562,717 | $ | 563,325 | $ | 563,325 | |||||||||||||||
Other equity securities | $ | 5,300 | $ | 5,300 | $ | 5,300 | |||||||||||||||
Accrued interest receivable | $ | 3,808 | $ | 3,808 | $ | 3,808 | |||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | $ | 773,615 | $ | 774,012 | $ | 774,012 | |||||||||||||||
Federal Home Loan Bank advances | $ | 15,000 | $ | 15,000 | $ | 15,000 | |||||||||||||||
Accrued interest payable | $ | 224 | $ | 224 | $ | 224 | |||||||||||||||
Off-balance-sheet liabilities: | |||||||||||||||||||||
Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit | — | $ | 1,297 | $ | 1,297 | ||||||||||||||||
The carrying amount of loans include $7,351,000 of nonaccrual loans (loans that are not accruing interest) as of December 31, 2013. The fair value of nonaccrual loans is based on the collateral values that secure the loans or the cash flows expected to be received. |
PREFERRED_STOCK
PREFERRED STOCK | 3 Months Ended |
Mar. 31, 2014 | |
PREFERRED STOCK | ' |
PREFERRED STOCK | ' |
NOTE H – PREFERRED STOCK | |
On September 15, 2011, Preferred Stock was issued to the U. S. Treasury as part of the Treasury’s Small Business Lending Fund (“SBLF”), as Preferred Stock – Series C – Non-Cumulative. The initial dividend rate is 5%. Depending on the volume of our small business lending, the dividend rate can be reduced to as low as one percent. If lending does not increase in the first two years, the dividend rate will increase to seven percent. Effective January 1, 2014, the effective dividend rate increased from 5% to 9%. | |
On May 6, 2013, 25% or $3,150,000 of the original $12,600,000 was redeemed. | |
On January 24, 2014, FNB Bancorp (the “Company”) redeemed all the remaining outstanding preferred shares that had been issued to the United States Treasury Department through the Small Business Lending Fund (“SBLF”) in a cash redemption transaction. Subsequent to this redemption, the United States Treasury Department no longer has any equity interest in the Company of any kind. | |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations. | |
Forward-Looking Information and Uncertainties Regarding Future Financial Performance. | |
This report, including management’s discussion below, concerning earnings and financial condition, contains “forward-looking statements”. Forward-looking statements are estimates of or statements about expectations or beliefs regarding the Company’s future financial performance or anticipated future financial condition that are based on current information and that are subject to a number of risks and uncertainties that could cause actual operating results in the future to differ significantly from those expected at the current time. Those risks and uncertainties include, although they are not limited to, the following: | |
Increased Competition. Increased competition from other banks and financial service businesses, mutual funds and securities brokerage and investment banking firms that offer competitive loan and investment products and competitive market pricing, which could require us to reduce interest rates and loan fees to attract new loans or to increase interest rates that we offer on time deposits, either or both of which could, in turn, reduce interest income and net interest margins. These factors could reduce our ability to attract new deposits and loans and leases. | |
Liquidity Risk. The stability of funding sources and continued availability of borrowings; our ability to raise capital or incur debt on reasonable terms. | |
Possible Adverse Changes in Economic Conditions. Adverse changes in national or local economic conditions over an extended period of time could (i) reduce loan demand which could, in turn, reduce interest income and net interest margins; (ii) adversely affect the financial capability of borrowers to meet their loan obligations, which, in turn, could result in increases in loan losses and require increases in provisions for possible loan losses, thereby adversely affecting operating results; and (iii) lead to reductions in real property values that, due to the Company’s reliance on real property to secure many of its loans, could make it more difficult to prevent losses from being incurred on non-performing loans through the sale of such real properties. | |
Possible Adverse Changes in National Economic Conditions and Federal Reserve Board Monetary Policies. Changes in national economic policies and conditions, such as increases in inflation or declines in economic output often prompt changes in Federal Open Market Committee (“FOMC”) monetary policies that could reduce interest income or increase the cost of funds to the Company, either of which could result in reduced earnings. In addition, deterioration in economic conditions that could result in increased loan and lease losses. | |
Changes in Regulatory Policies. Changes in federal and national bank regulatory policies, such as increases in capital requirements or in loan loss reserve or asset/liability ratio requirements, liquidity requirements, and the risks associated with concentration in real estate related loans could adversely affect earnings by reducing yields on earning assets or increasing operating costs. | |
Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this report, which speak only as of the date of this report, or to make predictions based solely on historical financial performance. The Company also disclaims any obligation to update forward-looking statements contained in this report. | |
Critical Accounting Policies And Estimates | |
Management’s discussion and analysis of its financial condition and results of operations are based upon the Company’s consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these consolidated financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, including those related to its loans and allowance for loan losses. The Company bases its estimates on current market conditions, historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. All adjustments that, in the opinion of management, are necessary for a fair presentation for the periods presented have been reflected as required by Regulation S-X, Rule 10-01. The Company believes the following critical accounting policy requires significant judgments and estimates used in the preparation of the consolidated financial statements. | |
Allowance for Loan Losses | |
The allowance for loan losses is periodically evaluated for adequacy by management. Factors considered include the Company’s loan loss experience, known and inherent risks in the portfolio, current economic conditions, known adverse situations that may affect the borrower’s ability to repay, regulatory policies, and the estimated value of underlying collateral. The evaluation of the adequacy of the allowance is based on the above factors along with prevailing and anticipated economic conditions that may impact our borrowers’ ability to repay their loans. Determination of the allowance is based upon objective and subjective judgments by management from the information currently available. Adverse changes in information could result in higher than expected charge-offs and loan loss provisions. | |
Goodwill | |
Goodwill arises when the Company’s purchase price exceeds the fair value of the net assets of an acquired business. Goodwill represents the value attributable to intangible elements acquired. The value of goodwill is supported ultimately by profit from the acquired business. A decline in earnings could lead to impairment, which would be recorded as a write-down in the Company’s consolidated statements of earnings. Events that may indicate goodwill impairment include significant or adverse changes in results of operations of the acquired business or asset, economic or political climate; an adverse action or assessment by a regulator; unanticipated competition; and a more-likely-than-not expectation that a reporting unit will be sold or disposed of at a loss. | |
Other Than Temporary Impairment | |
Other than temporary impairment (“OTTI”) is triggered if the Company has the intent to sell the security, it is likely that it will be required to sell the security before recovery, or if the Company does not expect to recover the entire amortized cost basis of the security. If the Company intends to sell the security or it is likely it will be required to sell the security before recovering its cost basis, the entire impairment loss would be recognized in earnings as an OTTI. If the Company does not intend to sell the security and it is not likely that the Company will be required to sell the security but the Company does not expect to recover the entire amortized cost basis of the security, only the portion of the impairment loss representing credit losses would be recognized in earnings as an OTTI. The credit loss is measured as the difference between the amortized cost basis and the present value of the cash flows expected to be collected of a security. Projected cash flows are discounted by the original or current effective interest rate depending on the nature of the security being measured for potential OTTI. The remaining impairment loss related to all other factors, the difference between the present value of the cash flows expected to be collected and fair value, would be recognized as a charge to other comprehensive income (“OCI”). Impairment losses related to all other factors are to be presented as a separate category within OCI. | |
For investment securities held to maturity, this amount is accreted over the remaining life of the debt security prospectively based on the amount and timing of future estimated cash flows. The accretion of the OTTI amount recorded in OCI will increase the carrying value of the investment, and would not affect earnings. If there is an indication of additional credit losses the security is re-evaluated accordingly based on the procedures described above. | |
Provision for and Deferred Income Taxes | |
The Company is subject to income tax laws of the United States, its states, and the municipalities in which it operates. The Company considers its income tax provision methodology to be critical, as the determination of current and deferred taxes based on complex analyses of many factors including interpretation of federal and state laws, the difference between tax and financial reporting bases of assets and liabilities (temporary differences), estimates of amounts due or owed, the timing of reversals of temporary differences and current financial standards. Actual results could differ significantly from the estimates due to tax law interpretations used in determining the current and deferred income tax liabilities. Additionally, there can be no assurances that estimates and interpretations used in determining income tax liabilities may not be challenged by federal and state tax authorities. | |
Recent Accounting Pronouncements | |
In April 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740). This ASU requires an entity to present in the financial statements an unrecognized tax benefit as a liability and the unrecognized tax benefit should not be combined with deferred tax assets to the extent that a net operating loss carry-forward, tax loss or credit carry-forward is also not available at the reporting date. The amendment is to be applied prospectively to all unrecognized tax benefits and are effective for annual and interim reporting periods beginning after December 15, 2013. The Company does not expect this ASU to have a material impact on the Company’s consolidated financial statements. | |
In January 2014, the FASB issued ASU No. 2014-04, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon foreclosure. ASU 2014-04 clarifies that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments are effective for annual and interim reports beginning on or after December 15, 2014 and can be applied with a modified retrospective transition method or prospectively. The adoption of ASU 2014-04 is not expected to have a material impact on the Company’s consolidated financial statement. | |
Earnings Analysis | |
Net interest income for the quarter ended March 31, 2014 was $8,514,000, compared to $8,715,000 for the quarter ended March 31, 2013, a decrease of $201,000, or 2%. Yields on interest earning assets continued to decline year over year, while volume increases in interest earning assets helped to partially offset the reduction in interest income. Net interest income is the primary determinant in our ability to generate sustainable earnings. | |
Basic and diluted earnings per share were $0.42 and $0.40, respectively, for the first quarter of 2014 compared to basic and diluted earnings per share of $0.20 and $0.19 for the first quarter of 2013. |
EARNINGS_PER_SHARE_CALCULATION1
EARNINGS PER SHARE CALCULATION (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings per share computed | ' | ||||||||
Earnings per common share (EPS) computed | ' | ||||||||
Earnings per share have been computed based on the following: | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
(Dollar amounts in thousands) | 2014 | 2013 | |||||||
Net earnings | $ | 1,834 | $ | 930 | |||||
Dividends and discount accretion on preferred stock | (170 | ) | (158 | ) | |||||
Net earnings available to common stockholders | $ | 1,664 | $ | 772 | |||||
Average number of shares outstanding | 3,985,000 | 3,903,000 | |||||||
Effect of dilutive options | 141,000 | 93,000 | |||||||
Average number of shares outstanding used to calculate diluted earnings per share | 4,126,000 | 3,996,000 | |||||||
Anti dilutive options that were excluded from the calculation of diluted EPS totaled 64,000 and 257,755 in 2014 and 2013, respectively. |
SECURITIES_AVAILABLE_FOR_SALE_
SECURITIES AVAILABLE FOR SALE (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
SECURITIES AVAILABLE FOR SALE TABLES | ' | ||||||||||||||||||||||||
Schedule of amortized cost and carrying values of securities available-for-sale | ' | ||||||||||||||||||||||||
The amortized cost and carrying values of securities available-for-sale are as follows: | |||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
(Dollar amounts in thousands) | cost | gains | losses | value | |||||||||||||||||||||
31-Mar-14 | |||||||||||||||||||||||||
U.S. Treasury securities | $ | 2,053 | $ | — | $ | (49 | ) | $ | 2,004 | ||||||||||||||||
Obligations of U.S. government agencies | 71,530 | 428 | (664 | ) | 71,294 | ||||||||||||||||||||
Mortgage-backed securities | 75,563 | 444 | (1,766 | ) | 74,241 | ||||||||||||||||||||
Obligations of states and political subdivisions | 83,517 | 1,842 | (782 | ) | 84,577 | ||||||||||||||||||||
Corporate debt | 25,907 | 303 | (142 | ) | 26,068 | ||||||||||||||||||||
$ | 258,570 | $ | 3,017 | $ | (3,403 | ) | $ | 258,184 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
U.S. Treasury securities | $ | 3,069 | $ | 12 | $ | (54 | ) | $ | 3,027 | ||||||||||||||||
Obligations of U.S. government agencies | 73,691 | 488 | (860 | ) | 73,319 | ||||||||||||||||||||
Mortgage-backed securities | 79,873 | 360 | (2,373 | ) | 77,860 | ||||||||||||||||||||
Obligations of states and political subdivisions | 82,526 | 1,467 | (1,317 | ) | 82,676 | ||||||||||||||||||||
Corporate debt | 26,958 | 330 | (182 | ) | 27,106 | ||||||||||||||||||||
$ | 266,117 | $ | 2,657 | $ | (4,786 | ) | $ | 263,988 | |||||||||||||||||
Schedule analysis of gross unrealized losses of the available-for-sale investment securities | ' | ||||||||||||||||||||||||
An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of March 31, 2014 and December 31, 2013, respectively, is as follows: | |||||||||||||||||||||||||
Less than | 12 Months | ||||||||||||||||||||||||
Total | 12 Months | Total | or Longer | Total | Total | ||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
(Dollar amounts in thousands) | Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
31-Mar-14 | |||||||||||||||||||||||||
U.S. Treasury securities | $ | — | $ | — | $ | 2,004 | $ | (49 | ) | $ | 2,004 | $ | (49 | ) | |||||||||||
Obligations of U.S. government agencies | — | — | 37,139 | (664 | ) | 37,139 | (664 | ) | |||||||||||||||||
Mortgage-backed securities | — | — | 50,881 | (1,766 | ) | 50,881 | (1,766 | ) | |||||||||||||||||
Obligations of states and political subdivisions | — | — | 27,839 | (782 | ) | 27,839 | (782 | ) | |||||||||||||||||
Corporate debt | — | — | 10,381 | (142 | ) | 10,381 | (142 | ) | |||||||||||||||||
Total | $ | — | $ | — | $ | 128,244 | $ | (3,403 | ) | $ | 128,244 | $ | (3,403 | ) | |||||||||||
Less than | 12 Months | ||||||||||||||||||||||||
Total | 12 Months | Total | or Longer | Total | Total | ||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
(Dollar amounts in thousands) | Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
December 31, 2013: | |||||||||||||||||||||||||
U. S. Treasury securities | $ | 2,002 | $ | (54 | ) | $ | — | $ | — | $ | 2,002 | (54 | ) | ||||||||||||
Obligations of U.S. Government agencies | 40,108 | (860 | ) | — | — | 40,108 | (860 | ) | |||||||||||||||||
Mortgage-backed securities | 51,419 | (2,015 | ) | 5,664 | (358 | ) | 57,083 | (2,373 | ) | ||||||||||||||||
Obligations of states and political subdivisions | 33,265 | (1,248 | ) | 1,083 | (69 | ) | 34,348 | (1,317 | ) | ||||||||||||||||
Corporate debt | 10,857 | (180 | ) | 498 | (2 | ) | 11,355 | (182 | ) | ||||||||||||||||
Total | $ | 137,651 | $ | (4,357 | ) | $ | 7,245 | $ | (429 | ) | $ | 144,896 | $ | (4,786 | ) | ||||||||||
Schedule of amortized cost and carrying value of available-for-sale debt securities by contractual maturity | ' | ||||||||||||||||||||||||
The amortized cost and carrying value of available-for-sale debt securities as of March 31, 2014 by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||
March 31, 2014: | |||||||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||||||
(Dollar amounts in thousands) | Cost | Value | |||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
Due in one year or less | $ | 14,599 | $ | 14,710 | |||||||||||||||||||||
Due after one through five years | 98,395 | 98,806 | |||||||||||||||||||||||
Due after five years through ten years | 113,046 | 112,359 | |||||||||||||||||||||||
Due after ten years | 32,530 | 32,309 | |||||||||||||||||||||||
$ | 258,570 | $ | 258,184 |
LOANS_Tables
LOANS (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||
LOANS TABLES | ' | ||||||||||||||||||||||||||||
Schedule Of Loans Outstanding | ' | ||||||||||||||||||||||||||||
Loans are summarized as follows at March 31, 2014 and December 31, 2013: | |||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
FNB | Balance | ||||||||||||||||||||||||||||
Bancorp | 31-Mar | ||||||||||||||||||||||||||||
(Dollar amounts in thousands) | Originated | PNCI | PCI | 2014 | |||||||||||||||||||||||||
Commercial real estate | $ | 291,869 | $ | 35,668 | $ | 1,325 | $ | 328,862 | |||||||||||||||||||||
Real estate construction | 34,895 | 2,549 | — | 37,444 | |||||||||||||||||||||||||
Real estate multi-family | 39,571 | 11,733 | — | 51,304 | |||||||||||||||||||||||||
Real estate 1 to 4 family | 102,221 | 7,144 | — | 109,365 | |||||||||||||||||||||||||
Commercial & industrial | 38,964 | 9,835 | — | 48,799 | |||||||||||||||||||||||||
Consumer loans | 1,532 | — | — | 1,532 | |||||||||||||||||||||||||
Gross loans | 509,052 | 66,929 | 1,325 | 577,306 | |||||||||||||||||||||||||
Net deferred loan fees | (2,388 | ) | — | — | (2,388 | ) | |||||||||||||||||||||||
Allowance for loan losses | (9,897 | ) | — | — | (9,897 | ) | |||||||||||||||||||||||
Net loans | $ | 496,767 | $ | 66,929 | $ | 1,325 | $ | 565,021 | |||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
FNB | Balance | ||||||||||||||||||||||||||||
Bancorp | 31-Dec | ||||||||||||||||||||||||||||
(Dollar amounts in thousands) | Originated | PNCI | PCI | 2013 | |||||||||||||||||||||||||
Commercial real estate | $ | 285,938 | $ | 37,936 | $ | 1,325 | $ | 325,199 | |||||||||||||||||||||
Real estate construction | 31,290 | 3,028 | — | 34,318 | |||||||||||||||||||||||||
Real estate multi-family | 34,357 | 11,786 | — | 46,143 | |||||||||||||||||||||||||
Real estate 1 to 4 family | 98,196 | 8,707 | — | 106,903 | |||||||||||||||||||||||||
Commercial & industrial | 38,287 | 10,217 | — | 48,504 | |||||||||||||||||||||||||
Consumer loans | 1,650 | — | — | 1,650 | |||||||||||||||||||||||||
Gross loans | 489,718 | 71,674 | 1,325 | 562,717 | |||||||||||||||||||||||||
Net deferred loan fees | (495 | ) | — | — | (495 | ) | |||||||||||||||||||||||
Allowance for loan losses | (9,869 | ) | (10 | ) | — | (9,879 | ) | ||||||||||||||||||||||
Net loans | $ | 479,354 | $ | 71,664 | $ | 1,325 | $ | 552,343 | |||||||||||||||||||||
Schedule of Allowance for Credit Losses | ' | ||||||||||||||||||||||||||||
Allowance for Credit Losses | |||||||||||||||||||||||||||||
For the Three Months Ended March 31, 2013 | |||||||||||||||||||||||||||||
Real | Real | ||||||||||||||||||||||||||||
Estate | Estate | ||||||||||||||||||||||||||||
Commercial | Commercial | Real Estate | Multi | 1 to | |||||||||||||||||||||||||
(Dollar amounts in thousands) | & industrial | Real estate | Construction | family | 4 family | Consumer | Total | ||||||||||||||||||||||
Allowance for credit losses | |||||||||||||||||||||||||||||
Beginning balance | $ | 1,875 | $ | 4,812 | $ | 857 | $ | — | $ | 1,516 | $ | 64 | $ | 9,124 | |||||||||||||||
Charge-offs | — | (239 | ) | (81 | ) | — | (119 | ) | (1 | ) | (440 | ) | |||||||||||||||||
Recoveries | 70 | 2 | — | — | 1 | — | 73 | ||||||||||||||||||||||
Provision | (368 | ) | 355 | (123 | ) | 281 | 464 | (9 | ) | 600 | |||||||||||||||||||
Ending balance | $ | 1,577 | $ | 4,930 | $ | 653 | $ | 281 | $ | 1,862 | $ | 54 | $ | 9,357 | |||||||||||||||
Ending balance: individually evaluated for impairment | $ | 261 | $ | 152 | $ | 19 | $ | — | $ | 323 | $ | — | $ | 755 | |||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 1,316 | $ | 4,778 | $ | 634 | $ | 281 | $ | 1,539 | $ | 54 | $ | 8,602 | |||||||||||||||
Allowance for Credit Losses | |||||||||||||||||||||||||||||
As of and For the Year Ended December 31, 2013 | |||||||||||||||||||||||||||||
Real | Real | ||||||||||||||||||||||||||||
Estate | Estate | ||||||||||||||||||||||||||||
Commercial | Commercial | Real Estate | Multi | 1 to | |||||||||||||||||||||||||
(Dollar amounts in thousands) | & industrial | Real estate | Construction | family | 4 family | Consumer | Total | ||||||||||||||||||||||
Allowance for credit losses | |||||||||||||||||||||||||||||
Beginning balance | $ | 1,875 | $ | 4,812 | $ | 857 | $ | — | $ | 1,516 | $ | 64 | $ | 9,124 | |||||||||||||||
Charge-offs | (57 | ) | (262 | ) | (81 | ) | — | (385 | ) | (7 | ) | (792 | ) | ||||||||||||||||
Recoveries | 73 | 35 | 50 | — | 3 | 1 | 162 | ||||||||||||||||||||||
Provision | (654 | ) | 1,178 | (92 | ) | 293 | 654 | 6 | 1,385 | ||||||||||||||||||||
Ending balance | $ | 1,237 | $ | 5,763 | $ | 734 | $ | 293 | $ | 1,788 | $ | 64 | $ | 9,879 | |||||||||||||||
Ending balance: individually evaluated for impairment | $ | 176 | $ | 165 | $ | — | $ | — | $ | 254 | $ | — | $ | 595 | |||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 1,061 | $ | 5,598 | $ | 734 | $ | 293 | $ | 1,534 | $ | 64 | $ | 9,284 | |||||||||||||||
Schedule of Recorded Investment in Loans | ' | ||||||||||||||||||||||||||||
Recorded Investment in Loans at March 31, 2014 | |||||||||||||||||||||||||||||
Real | Real | ||||||||||||||||||||||||||||
Estate | Estate | ||||||||||||||||||||||||||||
Commercial | Commercial | Real Estate | Multi | 1 to | |||||||||||||||||||||||||
(Dollar amounts in thousands) | & industrial | Real Estate | Construction | family | 4 family | Consumer | Total | ||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Ending balance | $ | 48,799 | $ | 328,862 | $ | 37,444 | $ | 51,304 | $ | 109,365 | $ | 1,532 | $ | 577,306 | |||||||||||||||
Ending balance: individually evaluated for impairment | $ | 4,893 | $ | 14,426 | $ | 1,319 | $ | — | $ | 3,856 | $ | 30 | $ | 24,524 | |||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 43,906 | $ | 314,436 | $ | 36,125 | $ | 51,304 | $ | 105,509 | $ | 1,532 | $ | 552,812 | |||||||||||||||
Recorded Investment in Loans at December 31, 2013 | |||||||||||||||||||||||||||||
Real | Real | ||||||||||||||||||||||||||||
Estate | Estate | ||||||||||||||||||||||||||||
Commercial | Commercial | Real Estate | Multi | 1 to | |||||||||||||||||||||||||
(Dollar amounts in thousands) | & industrial | Real Estate | Construction | family | 4 family | Consumer | Total | ||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Ending balance | $ | 48,504 | $ | 323,874 | $ | 34,318 | $ | 46,143 | $ | 106,903 | $ | 1,650 | $ | 561,392 | |||||||||||||||
Ending balance: individually evaluated for impairment | $ | 2,497 | $ | 17,974 | $ | 189 | $ | 375 | $ | 4,077 | $ | — | $ | 25,112 | |||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 46,007 | $ | 305,900 | $ | 34,129 | $ | 46,143 | $ | 102,826 | $ | 1,650 | $ | 536,655 | |||||||||||||||
Schedule of Impaired Loans Allowance | ' | ||||||||||||||||||||||||||||
The following tables provide information pertaining to impaired loans originated and PNCI loans as of and for the periods to the quarter ended March 31, 2014 and the year ended December 31, 2013. | |||||||||||||||||||||||||||||
As of and for the quarter ended | |||||||||||||||||||||||||||||
31-Mar-14 | |||||||||||||||||||||||||||||
Unpaid | Average | ||||||||||||||||||||||||||||
Recorded | Principal | Related | Recorded | Income | |||||||||||||||||||||||||
(Dollar amounts in thousands) | Investment | Balance | Allowance | Investment | Recognized | ||||||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||||||||
Commercial & industrial | $ | 3,510 | $ | 4,554 | $ | — | $ | 3,552 | $ | 22 | |||||||||||||||||||
Commercial real estate construction | 1,319 | 1,319 | — | 1,319 | 25 | ||||||||||||||||||||||||
Commercial real estate | 8,881 | 9,143 | — | 8,900 | 115 | ||||||||||||||||||||||||
Residential - 1 to 4 family | 695 | 695 | — | 665 | 8 | ||||||||||||||||||||||||
Consumer | 10 | 10 | — | 5 | — | ||||||||||||||||||||||||
Total | 14,415 | 15,721 | — | 14,441 | 170 | ||||||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||||||
Commercial & industrial | $ | 1,383 | $ | 1,801 | $ | 156 | $ | 1,452 | $ | 1 | |||||||||||||||||||
Commercial real estate construction | — | — | — | — | — | ||||||||||||||||||||||||
Commercial real estate | 5,545 | 5,546 | 150 | 5,594 | 68 | ||||||||||||||||||||||||
Residential - 1 to 4 family | 3,161 | 3,300 | 428 | 3,266 | 31 | ||||||||||||||||||||||||
Consumer | 20 | 20 | 9 | 10 | 1 | ||||||||||||||||||||||||
Total | 10,109 | 10,667 | 743 | 10,322 | 101 | ||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Commercial & industrial | $ | 4,893 | $ | 6,355 | $ | 156 | $ | 5,004 | $ | 23 | |||||||||||||||||||
Commercial real estate construction | 1,319 | 1,319 | — | 1,319 | 25 | ||||||||||||||||||||||||
Commercial real estate | 14,426 | 14,689 | 150 | 14,494 | 183 | ||||||||||||||||||||||||
Residential - 1 to 4 family | 3,856 | 3,995 | 428 | 3,931 | 39 | ||||||||||||||||||||||||
Consumer | 30 | 30 | 9 | 15 | 1 | ||||||||||||||||||||||||
Grand total | $ | 24,524 | $ | 26,388 | $ | 743 | $ | 24,763 | $ | 271 | |||||||||||||||||||
As of and for the year ended December 31, 2013 | |||||||||||||||||||||||||||||
Unpaid | Average | ||||||||||||||||||||||||||||
Recorded | Principal | Related | Recorded | Income | |||||||||||||||||||||||||
(Dollar amounts in thousands) | Investment | Balance | Allowance | Investment | Recognized | ||||||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 1,059 | $ | 1,232 | $ | — | $ | 1,204 | $ | 66 | |||||||||||||||||||
Commercial real estate construction | — | — | — | — | — | ||||||||||||||||||||||||
Commercial real estate | 12,397 | 13,535 | — | 11,445 | 565 | ||||||||||||||||||||||||
Real estate multi family | 375 | 375 | — | 384 | 25 | ||||||||||||||||||||||||
Residential - 1 to 4 family | 1,163 | 1,284 | — | 1,009 | 37 | ||||||||||||||||||||||||
Total | 14,994 | 16,426 | — | 14,042 | 693 | ||||||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 1,438 | $ | 1,871 | $ | 166 | $ | 1,710 | $ | 15 | |||||||||||||||||||
Commercial real estate construction | 189 | 196 | 10 | 198 | 18 | ||||||||||||||||||||||||
Commercial real estate | 5,577 | 5,588 | 165 | 4,972 | 254 | ||||||||||||||||||||||||
Residential - 1 to 4 family | 2,914 | 2,923 | 254 | 2,989 | 115 | ||||||||||||||||||||||||
Total | 10,118 | 10,578 | 595 | 9,869 | 402 | ||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 2,497 | $ | 3,103 | $ | 166 | $ | 2,914 | $ | 81 | |||||||||||||||||||
Commercial real estate construction | 189 | 196 | 10 | 198 | 18 | ||||||||||||||||||||||||
Commercial real estate | 17,974 | 19,123 | 165 | 16,417 | 819 | ||||||||||||||||||||||||
Real estate multi family | 375 | 375 | — | 384 | 25 | ||||||||||||||||||||||||
Residential - 1 to 4 family | 4,077 | 4,207 | 254 | 3,998 | 152 | ||||||||||||||||||||||||
Grand total | $ | 25,112 | $ | 27,004 | $ | 595 | $ | 23,911 | $ | 1,095 | |||||||||||||||||||
As of and for the quarter ended | |||||||||||||||||||||||||||||
31-Mar-13 | |||||||||||||||||||||||||||||
Unpaid | Average | ||||||||||||||||||||||||||||
Recorded | Principal | Related | Recorded | Income | |||||||||||||||||||||||||
(Dollar amounts in thousands) | Investment | Balance | Allowance | Investment | Recognized | ||||||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||||||||
Commercial & industrial | $ | 2,160 | $ | 2,310 | $ | — | $ | 2,182 | $ | 28 | |||||||||||||||||||
Real estate-multi family | 3,405 | 3,532 | — | 3,534 | 50 | ||||||||||||||||||||||||
Commercial real estate | 10,858 | 11,719 | — | 10,652 | 118 | ||||||||||||||||||||||||
Residential - 1 to 4 family | 1,344 | 1,446 | — | 1,347 | 18 | ||||||||||||||||||||||||
Total | 17,767 | 19,007 | — | 17,715 | 214 | ||||||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||||||
Commercial & industrial | $ | 1,764 | $ | 2,231 | $ | 261 | $ | 1,787 | $ | 3 | |||||||||||||||||||
Commercial real estate construction | 199 | 200 | 19 | 200 | — | ||||||||||||||||||||||||
Commercial real estate | 5,174 | 5,413 | 152 | 5,304 | 57 | ||||||||||||||||||||||||
Residential - 1 to 4 family | 2,674 | 2,677 | 323 | 2,674 | 21 | ||||||||||||||||||||||||
Total | 9,811 | 10,521 | 755 | 9,965 | 81 | ||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Commercial & industrial | $ | 3,924 | $ | 4,541 | $ | 261 | $ | 3,969 | $ | 31 | |||||||||||||||||||
Real estate-multi family | 3,405 | 3,532 | — | 3,534 | 50 | ||||||||||||||||||||||||
Commercial real estate construction | 199 | 200 | 19 | 200 | — | ||||||||||||||||||||||||
Commercial real estate | 16,032 | 17,132 | 152 | 15,956 | 175 | ||||||||||||||||||||||||
Residential - 1 to 4 family | 4,018 | 4,123 | 323 | 4,021 | 39 | ||||||||||||||||||||||||
Grand total | $ | 27,578 | $ | 29,528 | $ | 755 | $ | 27,680 | $ | 295 | |||||||||||||||||||
Schedule of Loans On Nonaccrual Status | ' | ||||||||||||||||||||||||||||
Loans on Nonaccrual Status as of | |||||||||||||||||||||||||||||
March 31, | December 31, | ||||||||||||||||||||||||||||
(Dollar amounts in thousands) | 2014 | 2013 | |||||||||||||||||||||||||||
Commercial & industrial | $ | 1,992 | $ | 2,046 | |||||||||||||||||||||||||
Real estate - construction | — | 189 | |||||||||||||||||||||||||||
Commercial real estate | 4,274 | 4,290 | |||||||||||||||||||||||||||
Real estate - 1 to 4 family | 674 | 826 | |||||||||||||||||||||||||||
Consumer | 29 | — | |||||||||||||||||||||||||||
Total | $ | 6,969 | $ | 7,351 | |||||||||||||||||||||||||
Schedule of Short-term Debt Modifications | ' | ||||||||||||||||||||||||||||
As of March 31, 2014, there were no commitments for additional funding of troubled debt restructured loans. | |||||||||||||||||||||||||||||
Modifications | |||||||||||||||||||||||||||||
For the Quarter Ended March 31, 2014 | |||||||||||||||||||||||||||||
Pre- | Post- | ||||||||||||||||||||||||||||
Modification | Modification | ||||||||||||||||||||||||||||
Outstanding | Outstanding | ||||||||||||||||||||||||||||
Number of | Recorded | Recorded | |||||||||||||||||||||||||||
(Dollar amounts in thousands) | Contracts | Investment | Investment | ||||||||||||||||||||||||||
Real estate 1 to 4 family | 1 | $ | 574 | $ | 574 | ||||||||||||||||||||||||
Total | 1 | $ | 574 | $ | 574 | ||||||||||||||||||||||||
As of March 31, 2014, there were no loans modified within the previous 12 months and for which there was a payment default during the period. All restructurings were a modification of interest rate and/or payment. There were no principal reductions granted. | |||||||||||||||||||||||||||||
Modifications | |||||||||||||||||||||||||||||
For the Quarter Ended March 31, 2013 | |||||||||||||||||||||||||||||
Pre- | Post- | ||||||||||||||||||||||||||||
Modification | Modification | ||||||||||||||||||||||||||||
Outstanding | Outstanding | ||||||||||||||||||||||||||||
Number of | Recorded | Recorded | |||||||||||||||||||||||||||
(Dollar amounts in thousands) | Contracts | Investment | Investment | ||||||||||||||||||||||||||
Real Estate Construction | 1 | $ | 199 | $ | 199 | ||||||||||||||||||||||||
Real estate 1 to 4 family | 1 | 299 | 299 | ||||||||||||||||||||||||||
Commercial real estate | 3 | 4,935 | 4,935 | ||||||||||||||||||||||||||
Total | 5 | $ | 5,433 | $ | 5,433 | ||||||||||||||||||||||||
Schedule Age Analysis Of Past Due Loans | ' | ||||||||||||||||||||||||||||
Age Analysis of Past Due Loans | |||||||||||||||||||||||||||||
As of March 31, 2014 | |||||||||||||||||||||||||||||
30-59 | 60-89 | ||||||||||||||||||||||||||||
Days | Days | Over | Total | ||||||||||||||||||||||||||
Past | Past | 90 | Past | Total | |||||||||||||||||||||||||
(Dollar amounts in thousands) | Due | Due | Days | Due | Current | Loans | |||||||||||||||||||||||
Originated | |||||||||||||||||||||||||||||
Commercial real estate | $ | 901 | $ | — | $ | 1,504 | $ | 2,405 | $ | 289,464 | $ | 291,869 | |||||||||||||||||
Real estate construction | — | — | — | — | 34,895 | 34,895 | |||||||||||||||||||||||
Real estate multi family | — | — | — | — | 39,571 | 39,571 | |||||||||||||||||||||||
Real estate 1 to 4 family | — | 72 | 154 | 226 | 101,995 | 102,221 | |||||||||||||||||||||||
Commercial & industrial | 287 | — | 1,969 | 2,256 | 36,708 | 38,964 | |||||||||||||||||||||||
Consumer | 101 | — | 19 | 120 | 1,412 | 1,532 | |||||||||||||||||||||||
Total | $ | 1,289 | $ | 72 | $ | 3,646 | $ | 5,007 | $ | 504,045 | $ | 509,052 | |||||||||||||||||
Purchased | |||||||||||||||||||||||||||||
Not credit impaired | |||||||||||||||||||||||||||||
Commercial real estate | $ | — | $ | — | $ | 372 | $ | 372 | $ | 35,296 | $ | 35,668 | |||||||||||||||||
Real estate construction | — | — | — | — | 2,549 | 2,549 | |||||||||||||||||||||||
Real estate multi-family | — | — | — | — | 11,733 | 11,733 | |||||||||||||||||||||||
Real estate 1 to 4 family | — | — | — | — | 7,144 | 7,144 | |||||||||||||||||||||||
Commercial & industrial | — | — | — | — | 9,835 | 9,835 | |||||||||||||||||||||||
Total | $ | — | $ | — | $ | 372 | $ | 372 | $ | 66,557 | $ | 66,929 | |||||||||||||||||
Purchased | |||||||||||||||||||||||||||||
Credit impaired | |||||||||||||||||||||||||||||
Commercial real estate | $ | — | $ | — | $ | 1,325 | $ | 1,325 | $ | — | $ | 1,325 | |||||||||||||||||
Real estate construction | — | — | — | — | — | — | |||||||||||||||||||||||
Real estate multi-family | — | — | — | — | — | — | |||||||||||||||||||||||
Real estate 1 to 4 family | — | — | — | — | — | — | |||||||||||||||||||||||
Commercial & industrial | — | — | — | — | — | — | |||||||||||||||||||||||
Total | $ | — | $ | — | $ | 1,325 | $ | 1,325 | $ | — | $ | 1,325 | |||||||||||||||||
At March 31, 2014 there were no loans that were 90 days or more past due where interest was still accruing. | |||||||||||||||||||||||||||||
Age Analysis of Past Due Loans | |||||||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||
30-59 | 60-89 | ||||||||||||||||||||||||||||
Days | Days | Over | Total | ||||||||||||||||||||||||||
Past | Past | 90 | Past | Total | |||||||||||||||||||||||||
(Dollar amounts in thousands) | Due | Due | Days | Due | Current | Loans | |||||||||||||||||||||||
Originated | |||||||||||||||||||||||||||||
Commercial real estate | $ | 1,403 | $ | — | $ | 2,349 | $ | 3,752 | $ | 282,186 | $ | 285,938 | |||||||||||||||||
Real estate construction | — | — | — | — | 31,290 | 31,290 | |||||||||||||||||||||||
Real estate multi family | — | — | — | — | 34,357 | 34,357 | |||||||||||||||||||||||
Real estate 1 to 4 family | 161 | 75 | 826 | 1,062 | 97,134 | 98,196 | |||||||||||||||||||||||
Commercial & industrial | 563 | 210 | 2,046 | 2,819 | 35,468 | 38,287 | |||||||||||||||||||||||
Consumer | 116 | 19 | — | 135 | 1,515 | 1,650 | |||||||||||||||||||||||
Total | $ | 2,243 | $ | 304 | $ | 5,221 | $ | 7,768 | $ | 481,950 | $ | 489,718 | |||||||||||||||||
Purchased | |||||||||||||||||||||||||||||
Not credit impaired | |||||||||||||||||||||||||||||
Commercial real estate | $ | — | $ | — | $ | 616 | $ | 616 | $ | 37,320 | $ | 37,936 | |||||||||||||||||
Real estate construction | — | — | 189 | 189 | 2,839 | 3,028 | |||||||||||||||||||||||
Real estate multi-family | — | — | — | — | 11,786 | 11,786 | |||||||||||||||||||||||
Real estate 1 to 4 family | — | — | — | — | 8,707 | 8,707 | |||||||||||||||||||||||
Commercial & industrial | — | — | — | — | 10,217 | 10,217 | |||||||||||||||||||||||
Total | $ | — | $ | — | $ | 805 | $ | 805 | $ | 70,869 | $ | 71,674 | |||||||||||||||||
Purchased | |||||||||||||||||||||||||||||
Credit impaired | |||||||||||||||||||||||||||||
Commercial real estate | $ | — | $ | — | $ | 1,325 | $ | 1,325 | $ | — | $ | 1,325 | |||||||||||||||||
Real estate construction | — | — | — | — | — | — | |||||||||||||||||||||||
Real estate multi-family | — | — | — | — | — | — | |||||||||||||||||||||||
Real estate 1 to 4 family | — | — | — | — | — | — | |||||||||||||||||||||||
Commercial & industrial | — | — | — | — | — | — | |||||||||||||||||||||||
Total | $ | — | $ | — | $ | 1,325 | $ | 1,325 | $ | — | $ | 1,325 | |||||||||||||||||
Schedule Credit Quality Indicators | ' | ||||||||||||||||||||||||||||
At December 31, 2013, there were no loans that were 90 days or more past due where interest was still accruing. | |||||||||||||||||||||||||||||
Credit Quality Indicators | |||||||||||||||||||||||||||||
As of March 31, 2014 | |||||||||||||||||||||||||||||
Special | Sub- | Total | |||||||||||||||||||||||||||
(Dollar amounts in thousands) | Pass | mention | standard | Doubtful | loans | ||||||||||||||||||||||||
Originated | |||||||||||||||||||||||||||||
Commercial real estate | $ | 288,632 | $ | — | $ | 3,237 | $ | — | $ | 291,869 | |||||||||||||||||||
Real estate construction | 33,851 | — | 1,044 | — | 34,895 | ||||||||||||||||||||||||
Real estate multi-family | 39,571 | — | — | — | 39,571 | ||||||||||||||||||||||||
Real estate 1 to 4 family | 101,547 | — | 522 | 152 | 102,221 | ||||||||||||||||||||||||
Commercial & industrial | 37,596 | — | 1,349 | 19 | 38,964 | ||||||||||||||||||||||||
Consumer loans | 1,532 | — | — | — | 1,532 | ||||||||||||||||||||||||
Totals | $ | 502,729 | $ | — | $ | 6,152 | $ | 171 | $ | 509,052 | |||||||||||||||||||
Purchased | |||||||||||||||||||||||||||||
Not credit impaired | |||||||||||||||||||||||||||||
Commercial real estate | $ | 26,090 | $ | 1,180 | $ | 8,398 | $ | — | $ | 35,668 | |||||||||||||||||||
Real estate construction | 1,230 | — | 1,319 | — | 2,549 | ||||||||||||||||||||||||
Real estate multi-family | 11,733 | — | — | — | 11,733 | ||||||||||||||||||||||||
Real estate 1 to 4 family | 6,737 | — | 407 | — | 7,144 | ||||||||||||||||||||||||
Commercial & industrial | 9,835 | — | — | — | 9,835 | ||||||||||||||||||||||||
Total | $ | 55,625 | $ | 1,180 | $ | 10,124 | $ | — | $ | 66,929 | |||||||||||||||||||
Purchased | |||||||||||||||||||||||||||||
Credit impaired | |||||||||||||||||||||||||||||
Commercial real estate | $ | 1,325 | |||||||||||||||||||||||||||
Total | $ | 1,325 | |||||||||||||||||||||||||||
Credit Quality Indicators As of December 31, 2013 | |||||||||||||||||||||||||||||
Special | Sub- | Total | |||||||||||||||||||||||||||
(Dollar amounts in thousands) | Pass | mention | standard | Doubtful | loans | ||||||||||||||||||||||||
Originated | |||||||||||||||||||||||||||||
Commercial real estate | $ | 280,356 | $ | 2,330 | $ | 3,252 | $ | — | $ | 285,938 | |||||||||||||||||||
Real estate construction | 29,673 | 573 | 1,044 | — | 31,290 | ||||||||||||||||||||||||
Real estate multi-family | 34,357 | — | — | — | 34,357 | ||||||||||||||||||||||||
Real estate 1 to 4 family | 97,514 | — | 429 | 253 | 98,196 | ||||||||||||||||||||||||
Commercial & industrial | 36,837 | — | 1,439 | 11 | 38,287 | ||||||||||||||||||||||||
Consumer loans | 1,631 | — | 19 | — | 1,650 | ||||||||||||||||||||||||
Totals | $ | 480,368 | $ | 2,903 | $ | 6,183 | $ | 264 | $ | 489,718 | |||||||||||||||||||
Purchased | |||||||||||||||||||||||||||||
Not credit impaired | |||||||||||||||||||||||||||||
Commercial real estate | $ | 28,342 | $ | 4,951 | $ | 4,643 | $ | — | $ | 37,936 | |||||||||||||||||||
Real estate construction | 1,520 | — | 1,508 | — | 3,028 | ||||||||||||||||||||||||
Real estate multi-family | 11,786 | — | — | — | 11,786 | ||||||||||||||||||||||||
Real estate 1 to 4 family | 8,299 | — | 408 | — | 8,707 | ||||||||||||||||||||||||
Commercial & industrial | 10,217 | — | — | — | 10,217 | ||||||||||||||||||||||||
Total | $ | 60,164 | $ | 4,951 | $ | 6,559 | $ | — | $ | 71,674 | |||||||||||||||||||
Purchased | |||||||||||||||||||||||||||||
Credit impaired | |||||||||||||||||||||||||||||
Commercial real estate | $ | 1,325 | |||||||||||||||||||||||||||
Total | $ | 1,325 |
FAIR_VALUE_MEASUREMENT_Tables
FAIR VALUE MEASUREMENT (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
FAIR VALUE MEASUREMENT TABLES {1} | ' | ||||||||||||||||||||
Schedule of assets measured at fair value on a recurring basis | ' | ||||||||||||||||||||
The following tables present the recorded amounts of assets measured at fair value on a recurring basis: | |||||||||||||||||||||
Fair Value Measurements at March 31, 2014, Using | |||||||||||||||||||||
Quoted Prices | |||||||||||||||||||||
in Active | |||||||||||||||||||||
Markets | Other | Significant | |||||||||||||||||||
for Identical | Observable | Unobservable | |||||||||||||||||||
Fair Value | Assets | Inputs | Inputs | ||||||||||||||||||
(Dollar amounts in thousands) | 3/31/14 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
Description | |||||||||||||||||||||
U. S. Treasury securities | $ | 2,004 | $ | 2,004 | $ | — | $ | — | |||||||||||||
Obligations of U.S. Government agencies | 71,294 | — | 71,294 | — | |||||||||||||||||
Mortgage-backed securities | 74,241 | — | 74,241 | — | |||||||||||||||||
Obligations of states and political subdivisions | 84,577 | — | 84,577 | — | |||||||||||||||||
Corporate debt | 26,068 | — | 26,068 | — | |||||||||||||||||
Total assets measured at fair value | $ | 258,184 | $ | 2,004 | $ | 256,180 | $ | — | |||||||||||||
Fair Value Measurements | |||||||||||||||||||||
at December 31, 2013, Using | |||||||||||||||||||||
Quoted Prices | |||||||||||||||||||||
in Active | |||||||||||||||||||||
Markets | Other | Significant | |||||||||||||||||||
for Identical | Observable | Unobservable | |||||||||||||||||||
Fair Value | Assets | Inputs | Inputs | ||||||||||||||||||
(Dollar amounts in thousands) | 12/31/13 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
Description | |||||||||||||||||||||
U. S. Treasury securities | $ | 3,027 | $ | 3,027 | $ | — | $ | — | |||||||||||||
Obligations of U.S. Government agencies | 73,319 | — | 73,319 | — | |||||||||||||||||
Mortgage-backed securities | 77,860 | — | 77,860 | — | |||||||||||||||||
Obligations of states and political subdivisions | 82,676 | — | 82,676 | — | |||||||||||||||||
Corporate debt | 27,106 | — | 27,106 | — | |||||||||||||||||
Total assets measured at fair value | $ | 263,988 | $ | 3,027 | $ | 260,961 | $ | — | |||||||||||||
Schedule of assets measured at fair value on a non-recurring basis | ' | ||||||||||||||||||||
The following tables present the recorded amounts of assets measured at fair value on a non-recurring basis: | |||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||
at March 31, 2014, Using | |||||||||||||||||||||
Quoted Prices in | |||||||||||||||||||||
Active Markets | Other | Significant | |||||||||||||||||||
for Identical | Observable | Unobservable | |||||||||||||||||||
Fair Value | Assets | Inputs | Inputs | ||||||||||||||||||
(Dollar amounts in thousands) | 3/31/14 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
Description | |||||||||||||||||||||
Impaired loans | $ | 1,142 | $ | — | $ | — | $ | 1,142 | |||||||||||||
Total impaired assets measured at fair value | $ | 1,142 | $ | — | $ | — | $ | 1,142 | |||||||||||||
Fair Value Measurements | |||||||||||||||||||||
at December 31, 2013, Using | |||||||||||||||||||||
Quoted Prices in | |||||||||||||||||||||
Active Markets | Other | Significant | |||||||||||||||||||
for Identical | Observable | Unobservable | |||||||||||||||||||
Fair Value | Assets | Inputs | Inputs | ||||||||||||||||||
(Dollar amounts in thousands) | 12/31/13 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
Description | |||||||||||||||||||||
Impaired loans | $ | 4,810 | $ | — | $ | — | $ | 4,810 | |||||||||||||
Other real estate owned | 1,771 | — | — | 1,771 | |||||||||||||||||
Total impaired assets measured at fair value | $ | 6,581 | $ | — | $ | — | $ | 6,581 | |||||||||||||
Schedule of estimated fair value of financial instruments | ' | ||||||||||||||||||||
The following table provides summary information on the estimated fair value of financial instruments at March 31, 2014: | |||||||||||||||||||||
Carrying | Fair | Fair value measurements | |||||||||||||||||||
(Dollar amounts in thousands) | amount | value | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 19,244 | $ | 19,244 | $ | 19,244 | |||||||||||||||
Interest-bearing time deposits with financial institutions | 4,805 | 4,887 | $ | 4,887 | |||||||||||||||||
Securities available for sale | 258,184 | 258,184 | 2,004 | 256,180 | |||||||||||||||||
Loans | 577,306 | 578,368 | $ | 578,368 | |||||||||||||||||
Other equity securities | 5,307 | 5,307 | 5,307 | ||||||||||||||||||
Accrued interest receivable | 3,758 | 3,758 | 3,758 | ||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | 773,945 | 774,305 | 774,305 | ||||||||||||||||||
Federal Home Loan Bank advances | 25,000 | 25,000 | 25,000 | ||||||||||||||||||
Notes payable | 6,000 | 6,000 | 6,000 | ||||||||||||||||||
Accrued interest payable | 239 | 239 | 239 | ||||||||||||||||||
Off-balance-sheet liabilities: | |||||||||||||||||||||
Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit | — | 1,285 | 1,285 | ||||||||||||||||||
The carrying amount of loans include $6,969,000 of nonaccrual loans (loans that are not accruing interest) as of March 31, 2014. The fair value of nonaccrual loans is based on the collateral values that secure the loans or the cash flows expected to be received. | |||||||||||||||||||||
The following table provides summary information on the estimated fair value of financial instruments at December 31, 2013: | |||||||||||||||||||||
31-Dec-13 | Carrying | Fair | Fair value measurements | ||||||||||||||||||
(Dollar amounts in thousands) | amount | value | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 14,007 | $ | 14,007 | $ | 14,007 | |||||||||||||||
Interest-bearing time deposits with financial institutions | $ | 5,543 | $ | 5,543 | $ | 5,543 | |||||||||||||||
Securities available for sale | $ | 263,988 | $ | 263,988 | $ | 3,027 | $ | 260,961 | |||||||||||||
Loans | $ | 562,717 | $ | 563,325 | $ | 563,325 | |||||||||||||||
Other equity securities | $ | 5,300 | $ | 5,300 | $ | 5,300 | |||||||||||||||
Accrued interest receivable | $ | 3,808 | $ | 3,808 | $ | 3,808 | |||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | $ | 773,615 | $ | 774,012 | $ | 774,012 | |||||||||||||||
Federal Home Loan Bank advances | $ | 15,000 | $ | 15,000 | $ | 15,000 | |||||||||||||||
Accrued interest payable | $ | 224 | $ | 224 | $ | 224 | |||||||||||||||
Off-balance-sheet liabilities: | |||||||||||||||||||||
Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit | — | $ | 1,297 | $ | 1,297 |
STOCK_OPTION_PLANS_Detail_Text
STOCK OPTION PLANS (Detail Textuals) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
STOCK OPTION PLANS DETAILS | ' | ' |
Compensation expense for options | $69,000 | $45,000 |
Recognized income tax benefit | 0 | 0 |
Intrinsic Value Options Exercised | 126,000 | 341,000 |
IntrinsicValueOptionsExercisable | 2,234,000 | 126,000 |
Unrecognized Compensation Expense Nonvested Options | $841,000 | ' |
Non-vested options weighted average period | '3.8 years | ' |
EARNINGS_PER_SHARE_CALCULATION2
EARNINGS PER SHARE CALCULATION (Dollar amounts in thousands) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Summary Earnings per share calculation | ' | ' |
Net earnings | $1,834 | $930 |
Dividends and discount accretion on preferred stock | -170 | -158 |
Net earnings available to common stockholders | 1,664 | 772 |
Average number of shares outstanding | 3,985,000 | 3,903,000 |
Effect of dilutive options | $141,000 | $93,000 |
Average number of shares outstanding used to calculate diluted earnings per share | 4,126,000 | 3,996,000 |
SECURITIES_AVAILABLE_FOR_SALE_1
SECURITIES AVAILABLE FOR SALE - Amortized cost and carrying values of securities available-for-sale (Dollar amounts in thousands) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
U.S. Treasury securities | ' | ' |
Available for Sale Securities, Amortized Cost | $2,053 | $3,069 |
Available for Sale Securities, Unrealized gains | 0 | 12 |
Available for Sale Securities, Unrealized losses | -49 | -54 |
Available for Sale Securities, Fair value | 2,004 | 3,027 |
Obligations of U.S. government agencies | ' | ' |
Available for Sale Securities, Amortized Cost | 71,530 | 73,691 |
Available for Sale Securities, Unrealized gains | 428 | 488 |
Available for Sale Securities, Unrealized losses | -664 | -860 |
Available for Sale Securities, Fair value | 71,294 | 73,319 |
Mortgage-backed securities | ' | ' |
Available for Sale Securities, Amortized Cost | 75,563 | 79,873 |
Available for Sale Securities, Unrealized gains | 444 | 360 |
Available for Sale Securities, Unrealized losses | -1,766 | -2,373 |
Available for Sale Securities, Fair value | 74,241 | 77,860 |
Obligations of states and political subdivisions | ' | ' |
Available for Sale Securities, Amortized Cost | 83,517 | 82,526 |
Available for Sale Securities, Unrealized gains | 1,842 | 1,467 |
Available for Sale Securities, Unrealized losses | -782 | -1,317 |
Available for Sale Securities, Fair value | 84,577 | 82,676 |
Corporate debt | ' | ' |
Available for Sale Securities, Amortized Cost | 25,907 | 26,958 |
Available for Sale Securities, Unrealized gains | 303 | 330 |
Available for Sale Securities, Unrealized losses | -142 | -182 |
Available for Sale Securities, Fair value | 26,068 | 27,106 |
Total: | ' | ' |
Available for Sale Securities, Amortized Cost | 258,570 | 266,117 |
Available for Sale Securities, Unrealized gains | 3,017 | 2,657 |
Available for Sale Securities, Unrealized losses | -3,043 | -4,786 |
Available for Sale Securities, Fair value | $258,184 | $263,988 |
SECURITIES_AVAILABLE_FOR_SALE_2
SECURITIES AVAILABLE FOR SALE - gross unrealized losses of the available-for-sale investment securities portfolio (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Total Fair Value | ' | ' |
U. S. Treasury securities | $0 | $2,002 |
Obligations of U.S. Government agencies | 0 | 40,108 |
Mortgage-backed securities | 0 | 51,419 |
Obligations of states and political subdivisions | 0 | 33,265 |
Corporate debt | 0 | 10,857 |
Total | 0 | 137,651 |
Less than 12 Months Unrealized Losses | ' | ' |
U. S. Treasury securities | 0 | -54 |
Obligations of U.S. Government agencies | 0 | -860 |
Mortgage-backed securities | 0 | -2,015 |
Obligations of states and political subdivisions | 0 | -1,248 |
Corporate debt | 0 | -180 |
Total | 0 | -4,357 |
Total Fair Value | ' | ' |
U. S. Treasury securities | 2,004 | 0 |
Obligations of U.S. Government agencies | 37,139 | 0 |
Mortgage-backed securities | 50,881 | 5,664 |
Obligations of states and political subdivisions | 27,839 | 1,083 |
Corporate debt | 10,381 | 498 |
Total | 128,244 | 7,245 |
12 Months or Longer Unrealized Losses | ' | ' |
U. S. Treasury securities | -49 | 0 |
Obligations of U.S. Government agencies | -664 | 0 |
Mortgage-backed securities | -17,660 | -358 |
Obligations of states and political subdivisions | -7,820 | -69 |
Corporate debt | -142 | -2 |
Total | -3,403 | -429 |
Total Fair Value | ' | ' |
U. S. Treasury securities | 2,004 | 2,002 |
Obligations of U.S. Government agencies | 37,139 | 40,108 |
Mortgage-backed securities | 50,881 | 57,083 |
Obligations of states and political subdivisions | 27,839 | 34,348 |
Corporate debt | 10,381 | 11,355 |
Total | 128,244 | 144,896 |
Total Unrealized Losses | ' | ' |
U. S. Treasury securities | -49 | -54 |
Obligations of U.S. Government agencies | -664 | -860 |
Mortgage-backed securities | -17,660 | -2,373 |
Obligations of states and political subdivisions | -7,820 | -1,317 |
Corporate debt | -142 | -182 |
Total | ($3,403) | ($4,786) |
SECURITIES_AVAILABLE_FOR_SALE_3
SECURITIES AVAILABLE FOR SALE - Summary of Investments Amortized Cost and Carrying Value (Details) (USD $) | Mar. 31, 2014 |
Amortized Cost | ' |
Available-for-sale: | ' |
Due in one year or less | $14,599 |
Due after one through five years | 98,395 |
Due after five years through ten years | 113,046 |
Due after ten years | 32,530 |
Securities Available-for-sale at fair value | 258,570 |
Fair Value | ' |
Available-for-sale: | ' |
Due in one year or less | 14,710 |
Due after one through five years | 98,806 |
Due after five years through ten years | 112,359 |
Due after ten years | 32,309 |
Securities Available-for-sale at fair value | $258,184 |
LOANS_Summary_of_Loan_as_follo
LOANS - Summary of Loan as follows (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
FNB Bancorp Originated | ' | ' |
Commercial real estate | $291,869 | $285,938 |
Real estate construction | 34,895 | 31,290 |
Real estate multi-family | 39,571 | 34,357 |
Real estate 1 to 4 family | 102,221 | 98,196 |
Commercial & industrial | 38,964 | 38,287 |
Consumer loans | 1,532 | 1,650 |
Gross loans | 509,052 | 489,718 |
Net deferred loan fees | -2,388 | -495 |
Allowance for loan losses | -9,897 | -9,869 |
Net loans | 496,767 | 479,354 |
PNCI | ' | ' |
Commercial real estate | 35,668 | 37,936 |
Real estate construction | 2,549 | 3,028 |
Real estate multi-family | 11,733 | 11,786 |
Real estate 1 to 4 family | 7,144 | 8,707 |
Commercial & industrial | 9,835 | 10,217 |
Consumer loans | 0 | 0 |
Gross loans | 66,929 | 71,674 |
Net deferred loan fees | 0 | 0 |
Allowance for loan losses | 0 | -10 |
Net loans | 66,929 | 71,664 |
PCI | ' | ' |
Commercial real estate | 1,325 | 1,325 |
Real estate construction | 0 | 0 |
Real estate multi-family | 0 | 0 |
Real estate 1 to 4 family | 0 | 0 |
Commercial & industrial | 0 | 0 |
Consumer loans | 0 | 0 |
Gross loans | 1,325 | 1,325 |
Net deferred loan fees | 0 | 0 |
Allowance for loan losses | 0 | 0 |
Net loans | 1,325 | 1,325 |
Total Balance | ' | ' |
Commercial real estate | 328,862 | 325,199 |
Real estate construction | 37,444 | 34,318 |
Real estate multi-family | 51,304 | 46,143 |
Real estate 1 to 4 family | 109,365 | 106,903 |
Commercial & industrial | 48,799 | 48,504 |
Consumer loans | 1,532 | 1,650 |
Gross loans | 577,306 | 562,717 |
Net deferred loan fees | -2,388 | -495 |
Allowance for loan losses | -9,897 | -9,879 |
Net loans | $565,021 | $552,343 |
LOANS_Summary_of_Allowance_for
LOANS - Summary of Allowance for Credit Losses (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Commercial & industrial | ' | ' |
Allowance for credit losses | ' | ' |
Beginning balance | $1,875 | $1,875 |
Charge-offs | 0 | -57 |
Recoveries | 70 | 73 |
Provision | -368 | -654 |
Ending balance | 1,577 | 1,237 |
Ending balance: individually evaluated for impairment | 261 | 176 |
Ending balance: collectively evaluated for impairment | 1,316 | 1,061 |
Commercial & Real estate | ' | ' |
Allowance for credit losses | ' | ' |
Beginning balance | 4,812 | 4,812 |
Charge-offs | -239 | -262 |
Recoveries | 2 | 35 |
Provision | 355 | 1,178 |
Ending balance | 4,930 | 5,763 |
Ending balance: individually evaluated for impairment | 152 | 165 |
Ending balance: collectively evaluated for impairment | 4,778 | 5,598 |
Real Estate Construction | ' | ' |
Allowance for credit losses | ' | ' |
Beginning balance | 857 | 857 |
Charge-offs | -81 | -81 |
Recoveries | 0 | 50 |
Provision | -123 | -92 |
Ending balance | 653 | 734 |
Ending balance: individually evaluated for impairment | 19 | 0 |
Ending balance: collectively evaluated for impairment | 634 | 734 |
Real Estate Multi family | ' | ' |
Allowance for credit losses | ' | ' |
Beginning balance | 0 | 0 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision | 281 | 293 |
Ending balance | 281 | 293 |
Ending balance: individually evaluated for impairment | 0 | 0 |
Ending balance: collectively evaluated for impairment | 281 | 293 |
Real Estate 1 to 4 family | ' | ' |
Allowance for credit losses | ' | ' |
Beginning balance | 1,516 | 1,516 |
Charge-offs | -119 | -385 |
Recoveries | 1 | 3 |
Provision | 464 | 654 |
Ending balance | 1,862 | 1,788 |
Ending balance: individually evaluated for impairment | 323 | 254 |
Ending balance: collectively evaluated for impairment | 1,539 | 1,534 |
Consumer | ' | ' |
Allowance for credit losses | ' | ' |
Beginning balance | 64 | 64 |
Charge-offs | -1 | -7 |
Recoveries | 0 | 1 |
Provision | -9 | 6 |
Ending balance | 54 | 64 |
Ending balance: individually evaluated for impairment | 0 | 0 |
Ending balance: collectively evaluated for impairment | 54 | 64 |
Total | ' | ' |
Allowance for credit losses | ' | ' |
Beginning balance | 9,124 | 9,124 |
Charge-offs | -440 | -792 |
Recoveries | 73 | 162 |
Provision | 600 | 1,385 |
Ending balance | 9,357 | 9,879 |
Ending balance: individually evaluated for impairment | 755 | 595 |
Ending balance: collectively evaluated for impairment | $8,602 | $9,284 |
LOANS_Recorded_Investment_in_L
LOANS Recorded Investment in Loans (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Commercial & industrial | ' | ' |
Loans: | ' | ' |
Ending balance | $48,799 | $48,504 |
Ending balance: individually evaluated for impairment | 4,893 | 2,497 |
Ending balance: collectively evaluated for impairment | 43,906 | 46,007 |
Commercial & Real estate | ' | ' |
Loans: | ' | ' |
Ending balance | 328,862 | 323,874 |
Ending balance: individually evaluated for impairment | 14,426 | 17,974 |
Ending balance: collectively evaluated for impairment | 314,436 | 305,900 |
Real Estate Construction | ' | ' |
Loans: | ' | ' |
Ending balance | 37,444 | 34,318 |
Ending balance: individually evaluated for impairment | 1,319 | 189 |
Ending balance: collectively evaluated for impairment | 36,125 | 34,129 |
Real Estate Multi family | ' | ' |
Loans: | ' | ' |
Ending balance | 51,304 | 46,143 |
Ending balance: individually evaluated for impairment | 0 | 375 |
Ending balance: collectively evaluated for impairment | 51,304 | 46,143 |
Real Estate 1 to 4 family | ' | ' |
Loans: | ' | ' |
Ending balance | 109,365 | 106,903 |
Ending balance: individually evaluated for impairment | 3,856 | 4,077 |
Ending balance: collectively evaluated for impairment | 105,509 | 102,826 |
Consumer | ' | ' |
Loans: | ' | ' |
Ending balance | 1,532 | 1,650 |
Ending balance: individually evaluated for impairment | 30 | 0 |
Ending balance: collectively evaluated for impairment | 1,532 | 1,650 |
Total | ' | ' |
Loans: | ' | ' |
Ending balance | 577,306 | 561,392 |
Ending balance: individually evaluated for impairment | 24,524 | 25,112 |
Ending balance: collectively evaluated for impairment | $552,812 | $536,655 |
LOANS_Age_Analysis_Of_Past_Due
LOANS - Age Analysis Of Past Due Loans (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
30-59 Days Past Due | ' | ' |
Originated | ' | ' |
Commercial real estate | $901 | $1,403 |
Real estate construction | 0 | 0 |
Real estate multi family | 0 | 0 |
Real estate 1 to 4 family | 0 | 161 |
Commercial & industrial | 287 | 563 |
Consumer | 101 | 116 |
Total | 1,289 | 2,243 |
60-89 Days Past Due | ' | ' |
Originated | ' | ' |
Commercial real estate | 0 | 0 |
Real estate construction | 0 | 0 |
Real estate multi family | 0 | 0 |
Real estate 1 to 4 family | 72 | 75 |
Commercial & industrial | 0 | 210 |
Consumer | 0 | 19 |
Total | 72 | 304 |
Over 90 Days | ' | ' |
Originated | ' | ' |
Commercial real estate | 1,504 | 2,349 |
Real estate construction | 0 | 0 |
Real estate multi family | 0 | 0 |
Real estate 1 to 4 family | 154 | 826 |
Commercial & industrial | 1,969 | 2,046 |
Consumer | 19 | 0 |
Total | 3,646 | 5,221 |
Purchased Not credit impaired | ' | ' |
Commercial real estate | 372 | 616 |
Real estate construction | 0 | 189 |
Real estate multi-family | 0 | 0 |
Real estate 1 to 4 family | 0 | 0 |
Commercial & industrial | 0 | 0 |
Total | 372 | 805 |
Purchased Credit impaired | ' | ' |
Commercial real estate | 1,325 | 1,325 |
Total | 1,325 | 1,325 |
Total Past Due | ' | ' |
Originated | ' | ' |
Commercial real estate | 2,405 | 3,752 |
Real estate construction | 0 | 0 |
Real estate multi family | 0 | 0 |
Real estate 1 to 4 family | 226 | 1,062 |
Commercial & industrial | 2,256 | 2,819 |
Consumer | 120 | 135 |
Total | 5,007 | 7,768 |
Purchased Not credit impaired | ' | ' |
Commercial real estate | 372 | 616 |
Real estate construction | 0 | 189 |
Real estate multi-family | 0 | 0 |
Real estate 1 to 4 family | 0 | 0 |
Commercial & industrial | 0 | 0 |
Total | 372 | 805 |
Purchased Credit impaired | ' | ' |
Commercial real estate | 1,325 | 1,325 |
Total | 1,325 | 1,325 |
Current | ' | ' |
Originated | ' | ' |
Commercial real estate | 289,464 | 282,186 |
Real estate construction | 34,895 | 31,290 |
Real estate multi family | 39,571 | 34,357 |
Real estate 1 to 4 family | 101,995 | 97,134 |
Commercial & industrial | 36,708 | 35,468 |
Consumer | 1,412 | 1,515 |
Total | 504,045 | 481,950 |
Purchased Not credit impaired | ' | ' |
Commercial real estate | 35,296 | 37,320 |
Real estate construction | 2,549 | 2,839 |
Real estate multi-family | 11,733 | 11,786 |
Real estate 1 to 4 family | 7,144 | 8,707 |
Commercial & industrial | 9,835 | 10,217 |
Total | 66,557 | 70,869 |
Purchased Credit impaired | ' | ' |
Commercial real estate | 0 | 0 |
Total | 0 | 0 |
Total Loans | ' | ' |
Originated | ' | ' |
Commercial real estate | 291,869 | 285,938 |
Real estate construction | 34,895 | 31,290 |
Real estate multi family | 39,571 | 34,357 |
Real estate 1 to 4 family | 102,221 | 98,196 |
Commercial & industrial | 38,964 | 38,287 |
Consumer | 1,532 | 1,650 |
Total | 509,052 | 489,718 |
Purchased Not credit impaired | ' | ' |
Commercial real estate | 35,668 | 37,936 |
Real estate construction | 2,549 | 3,028 |
Real estate multi-family | 11,733 | 11,786 |
Real estate 1 to 4 family | 7,144 | 8,707 |
Commercial & industrial | 9,835 | 10,217 |
Total | 66,929 | 71,674 |
Purchased Credit impaired | ' | ' |
Commercial real estate | 1,325 | 1,325 |
Real estate construction | 0 | 0 |
Real estate multi-family | 0 | 0 |
Real estate 1 to 4 family | 0 | 0 |
Commercial & industrial | 0 | 0 |
Total | $1,325 | $1,325 |
LOANS_Credit_Quality_Indicator
LOANS - Credit Quality Indicators Loans (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Pass | ' | ' |
Originated | ' | ' |
Commercial real estate | $288,632 | $280,356 |
Real estate construction | 33,851 | 29,673 |
Real estate multi-family | 39,571 | 34,357 |
Real estate 1 to 4 family | 101,547 | 97,514 |
Commercial & industrial | 37,596 | 36,837 |
Consumer loans | 1,532 | 1,631 |
Totals | 502,729 | 480,368 |
Purchased Not credit impaired | ' | ' |
Commercial real estate | 26,090 | 28,342 |
Real estate construction | 1,230 | 1,520 |
Real estate multi-family | 11,733 | 11,786 |
Real estate 1 to 4 family | 6,737 | 8,299 |
Commercial & industrial | 9,835 | 10,217 |
Total | 55,625 | 60,164 |
Special mention | ' | ' |
Originated | ' | ' |
Commercial real estate | 0 | 2,330 |
Real estate construction | 0 | 573 |
Totals | ' | 2,903 |
Purchased Not credit impaired | ' | ' |
Commercial real estate | 1,180 | 4,951 |
Total | 1,180 | 4,951 |
Sub-standard | ' | ' |
Originated | ' | ' |
Commercial real estate | 3,237 | 3,252 |
Real estate construction | 1,044 | 1,044 |
Real estate 1 to 4 family | 522 | 429 |
Commercial & industrial | 1,349 | 1,439 |
Consumer loans | 0 | 19 |
Totals | 6,152 | 6,183 |
Purchased Not credit impaired | ' | ' |
Commercial real estate | 8,398 | 4,643 |
Real estate construction | 1,319 | 1,508 |
Real estate 1 to 4 family | 407 | 408 |
Total | 10,124 | 6,559 |
Doubtful | ' | ' |
Originated | ' | ' |
Real estate 1 to 4 family | 152 | 253 |
Commercial & industrial | 19 | 11 |
Totals | 171 | 264 |
Total loans | ' | ' |
Originated | ' | ' |
Commercial real estate | 291,869 | 285,938 |
Real estate construction | 34,895 | 31,290 |
Real estate multi-family | 39,571 | 34,357 |
Real estate 1 to 4 family | 102,221 | 98,196 |
Commercial & industrial | 38,964 | 38,287 |
Consumer loans | 1,532 | 1,650 |
Totals | 509,052 | 489,718 |
Purchased Not credit impaired | ' | ' |
Commercial real estate | 35,668 | 37,936 |
Real estate construction | 2,549 | 3,028 |
Real estate multi-family | 11,733 | 11,786 |
Real estate 1 to 4 family | 7,144 | 8,707 |
Commercial & industrial | 9,835 | 10,217 |
Total | $66,929 | $71,674 |
Fair_Value_Measurements_Assets
Fair Value Measurements - Assets measured at fair value on a recurring basis (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Fair Value | ' | ' |
Description | ' | ' |
U. S. Treasury securities | $2,004 | $3,027 |
Obligations of U.S. Government agencies | 71,294 | 73,319 |
Mortgage-backed securities | 74,241 | 77,860 |
Obligations of states and political subdivisions | 84,577 | 82,676 |
Corporate debt | 26,068 | 27,106 |
Total assets measured at fair value | 258,184 | 263,988 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Description | ' | ' |
U. S. Treasury securities | 2,004 | 3,027 |
Total assets measured at fair value | 2,004 | 3,027 |
Other Observable Inputs (Level 2) | ' | ' |
Description | ' | ' |
Obligations of U.S. Government agencies | 71,294 | 73,319 |
Mortgage-backed securities | 74,241 | 77,860 |
Obligations of states and political subdivisions | 84,577 | 82,676 |
Corporate debt | 26,068 | 27,106 |
Total assets measured at fair value | 256,180 | 260,961 |
Significant Unobservable Inputs (Level 3) | ' | ' |
Description | ' | ' |
U. S. Treasury securities | 0 | 0 |
Total assets measured at fair value | $0 | $0 |
Fair_Value_Measurements_Assets1
Fair Value Measurements - Assets measured at fair value on a non-recurring basis (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Fair Value | ' | ' |
Description | ' | ' |
Impaired loans | $1,142 | $4,810 |
Other real estate owned | ' | 1,771 |
Total impaired assets measured at fair value | 1,142 | 6,581 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Description | ' | ' |
Total impaired assets measured at fair value | 0 | 0 |
Other Observable Inputs (Level 2) | ' | ' |
Description | ' | ' |
Total impaired assets measured at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ' | ' |
Description | ' | ' |
Impaired loans | 1,142 | 4,810 |
Other real estate owned | ' | 1,771 |
Total impaired assets measured at fair value | $1,142 | $6,581 |
PREFERRED_STOCK_Details
PREFERRED STOCK (Details) (USD $) | Mar. 31, 2014 | 6-May-13 | Sep. 15, 2011 |
PREFERRED STOCK: | ' | ' | ' |
Preferred Stock Dividend Rate Percentage | 5.00% | ' | ' |
Preferred Stock Dividend Payment Terms | ' | ' | 'two years |
Preferred stock value | ' | $12,600,000 | ' |
Preferred stock, redemption amount | ' | $3,150,000 | ' |
Preferred stock, redemption percentage | ' | 25.00% | ' |
Effective January 1, 2014, the effective dividend rate increased from | ' | ' | '5% to 9%. |