Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 31, 2015 | |
Document and Entity Information: | ||
Entity Registrant Name | FNB BANCORP/CA/ | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | false | |
Entity Central Index Key | 1,163,199 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 4,316,283 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) (Dollar amounts in thousands) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and due from banks | $ 40,282 | $ 14,978 |
Interest-bearing time deposits with financial institutions | 1,246 | 2,784 |
Securities available-for-sale, at fair value | 315,560 | 264,881 |
Loans, net of allowance for loan losses of $9,940 and $9,700 on September 30, 2015 and December 31, 2014 | 696,888 | 583,715 |
Bank premises, equipment, and leasehold improvements, net | 10,326 | 10,951 |
Bank owned life insurance | 15,742 | 12,510 |
Other equity securities | 6,748 | 5,769 |
Accrued interest receivable | 4,326 | 3,725 |
Other real estate owned, net | 838 | 763 |
Goodwill | 4,580 | 1,841 |
Prepaid expenses | 877 | 1,045 |
Other assets | 14,044 | 14,202 |
Total assets | 1,111,457 | 917,164 |
Deposits | ||
Demand, noninterest bearing | 262,206 | 202,811 |
Demand, interest bearing | 84,682 | 89,548 |
Savings and money market | 512,534 | 394,676 |
Time | 129,943 | 105,159 |
Total deposits | 989,365 | 792,194 |
Federal Home Loan Bank advances | 0 | 9,000 |
Note Payable | 5,100 | 5,550 |
Accrued expenses and other liabilities | 13,302 | 13,332 |
Total liabilities | 1,007,767 | 820,076 |
Stockholders' equity | ||
Common stock, no par value, authorized 10,000,000 shares; issued and outstanding 4,316,180 shares at September 30, 2015 and 4,259,306 shares at December 31, 2014 | 67,852 | 66,791 |
Retained earnings | 33,046 | 28,729 |
Accumulated other comprehensive income, net of tax | 2,792 | 1,568 |
Total stockholders' equity | 103,690 | 97,088 |
Total liabilities and stockholders' equity | $ 1,111,457 | $ 917,164 |
CONSOLIDATED BALANCE SHEETS (Do
CONSOLIDATED BALANCE SHEETS (Dollar amounts in thousands) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Assets: | ||
Allowance for loan losses | $ 9,940 | $ 9,700 |
Common Stock, shares authorized | 10,000,000 | 10,000,000 |
Common Stock, shares issued | 4,316,180 | 4,259,306 |
Common Stock, shares outstanding | 4,316,180 | 4,259,306 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) (Dollar amounts in thousands) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Interest income: | ||||
Interest and fees on loans | $ 8,309 | $ 7,899 | $ 23,874 | $ 23,423 |
Interest on taxable securities | 924 | 883 | 2,597 | 2,577 |
Interest on tax-exempt securities | 651 | 498 | 1,754 | 1,478 |
Interest time deposits with other financial institutions | 9 | 20 | 36 | 66 |
Total interest income | 9,893 | 9,300 | 28,261 | 27,544 |
Interest expense: | ||||
Interest on deposits | 635 | 472 | 1,625 | 1,417 |
Interest on FHLB advances | 1 | 3 | 2 | 14 |
Interest on note payable | 57 | 63 | 173 | 131 |
Total interest expense | 693 | 538 | 1,800 | 1,562 |
Net interest income | 9,200 | 8,762 | 26,461 | 25,982 |
Provision for loan losses | 75 | 0 | 225 | 75 |
Net interest income after provision for loan losses | 9,125 | 8,762 | 26,236 | 25,907 |
Noninterest income: | ||||
Service charges | 618 | 644 | 1,854 | 1,928 |
Net gain on sale of available-for-sale securities | 29 | 100 | 250 | 139 |
Bank owned life insurance earnings | 90 | 86 | 261 | 273 |
Other income | 287 | 211 | 1,002 | 727 |
Total noninterest income | 1,024 | 1,041 | 3,367 | 3,067 |
Noninterest expense: | ||||
Salaries and employee benefits | 4,100 | 4,241 | 12,513 | 12,636 |
Occupancy expense | 592 | 704 | 1,906 | 2,078 |
Equipment expense | 718 | 405 | 1,533 | 1,202 |
Professional fees | 334 | 395 | 1,075 | 1,427 |
FDIC assessment | 150 | 165 | 450 | 525 |
Telephone, postage and supplies | 237 | 284 | 782 | 883 |
Advertising | 112 | 118 | 381 | 339 |
Data processing expense | 659 | 151 | 940 | 430 |
Low income housing expense | 70 | 109 | 212 | 329 |
Surety insurance | 122 | 68 | 298 | 202 |
Directors expense | 72 | 63 | 216 | 189 |
Loss (gain) on sale of other real estate owned, net | 0 | 0 | 0 | (220) |
Other real estate owned expense, net | 0 | 0 | (6) | 87 |
Other expense | 313 | 352 | 911 | 1,000 |
Total noninterest expense | 7,479 | 7,055 | 21,211 | 21,107 |
Earnings before provision for income tax expense | 2,670 | 2,748 | 8,392 | 7,867 |
Provision for income tax expense | 431 | 925 | 2,283 | 2,581 |
Net earnings | 2,239 | 1,823 | 6,109 | 5,286 |
Dividends and discount accretion on preferred stock | 0 | 0 | 0 | 170 |
Net earnings available to common stockholders | $ 2,239 | $ 1,823 | $ 6,109 | $ 5,116 |
Earnings per share data: | ||||
Basic | $ 0.52 | $ 0.43 | $ 1.42 | $ 1.21 |
Diluted | $ 0.51 | $ 0.42 | $ 1.38 | $ 1.17 |
Weighted average shares outstanding: | ||||
Basic | 4,309 | 4,250 | 4,293 | 4,222 |
Diluted | 4,422 | 4,384 | 4,414 | 4,364 |
CONSOLIDATED STATEMENTS OF EAR5
CONSOLIDATED STATEMENTS OF EARNINGS (Dollar amounts in thousands) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues [Abstract] | ||||
Net earnings | $ 2,239 | $ 1,823 | $ 6,109 | $ 5,286 |
Unrealized holding gain (loss) on available-for-sale securities, net of tax (expense) benefit of ($988) and ($953) for three and nine months ended September 30, 2015, and net of tax benefit (expense) of $185 and ($1,567) for three and nine months ended September 30, 2014 | 1,422 | (266) | 1,372 | 2,256 |
Reclassification adjustment for gain on available-for-sale securities sold, net of tax of $12 and $103 for three and nine months ended September 30, 2015, and $41 and $57 for three and nine months ended September 30, 2014, respectively | (17) | (59) | (147) | (82) |
Other Comprehensive Earnings (loss) | 1,405 | (325) | 1,225 | 2,174 |
Total comprehensive earnings | $ 3,644 | $ 1,498 | $ 7,334 | $ 7,460 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (Parentheticals) (Dollar amounts in thousands) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Other Comprehensive Earnings Parentheticals | ||||
Tax (expense) benefit on unrealized holding gain (loss) on available-for-sale securities | $ (988) | $ 185 | $ (953) | $ (1,567) |
Tax on reclassification adjustment for gain on available-for-sale | $ 12 | $ 41 | $ 103 | $ 57 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Dollar amounts in thousands) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flow from operating activities: | ||
Net earnings | $ 6,109 | $ 5,286 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Net gain on sale of securities available-for-sale | (250) | (139) |
Depreciation, amortization and accretion | 2,553 | 2,599 |
Gain on sale of other real estate owned, net | 0 | (220) |
Stock-based compensation expense | 183 | 208 |
Earnings on bank owned life insurance | (261) | (273) |
Increase in net deferred loan fees | 51 | (54) |
Provision for loan losses | 225 | 75 |
(Increase) decrease in accrued interest receivable | (288) | 138 |
Decrease in prepaid expense | 1,976 | 257 |
Increase in other assets | 2,888 | (117) |
(Decrease) increase in accrued expenses and other liabilities | (5,027) | 409 |
Net cash provided by operating activities | 8,159 | 8,169 |
Cash flows from investing activities: | ||
Purchase of securities available-for-sale | (90,590) | (32,703) |
Proceeds from matured/called/sold securities available-for-sale | 40,514 | 30,893 |
Net (investment) in other equity securities | (300) | (469) |
Acquisition, net of cash paid | (18,481) | 0 |
Maturities of time deposits of other banks | 9,374 | 1,475 |
Proceeds from sale of other real estate owned | 0 | 1,461 |
Net investment in other real estate owned | (75) | (78) |
Net increase in loans | (20,480) | (12,811) |
Purchases of bank premises, equipment, leasehold improvements | (144) | (629) |
Net cash used in investing activities | (80,182) | (12,861) |
Cash flows from financing activities: | ||
Net increase in demand and savings deposits | 109,085 | 28,662 |
Net decrease in time deposits | (2,040) | (20,121) |
Increase (decrease) of FHLB advances | (9,000) | 1,000 |
Proceeds from note payable | 0 | 6,000 |
Principal repayment on note payable | (450) | (300) |
Dividends paid on common stock | (1,146) | (848) |
Exercise of stock options | 878 | 1,132 |
Redemption of preferred stock series C | 0 | (9,450) |
Dividends paid on preferred stock series C | 0 | (170) |
Net cash provided by financing activities | 97,327 | 5,905 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 25,304 | 1,213 |
Cash and cash equivalents at beginning of period | 14,978 | 14,007 |
Cash and cash equivalents at end of period | 40,282 | 15,220 |
Additional cash flow information: | ||
Interest paid | 1,745 | 1,568 |
Income taxes paid | 1,938 | 2,387 |
Tax benefit on exercise of stock options | 154 | 457 |
Non-cash investing and financing activities: | ||
Accrued dividends | 646 | 446 |
Change in unrealized gain in available for-sale securities, net of tax | 1,224 | 2,174 |
OREO sale funded by loan origination | 0 | 3,400 |
Acquisitions: | ||
Fair value of assets acquired | 115,127 | 0 |
Fair value of liabilities assumed | $ 93,627 | $ 0 |
A. BASIS OF PRESENTATION
A. BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2015 | |
BASIS OF PRESENTATION | |
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 Francisco, San Mateo, and Santa Clara 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, 2014. 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 stockholders equity. |
B. STOCK OPTION PLANS
B. STOCK OPTION PLANS | 9 Months Ended |
Sep. 30, 2015 | |
Share-based Compensation [Abstract] | |
STOCK OPTION PLANS | Stock option expense is recorded based on the fair value of option contracts issued. The fair value is determined using an option pricing model that considers the expected contract term, the risk free interest rate, the volatility of the Companys 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 within the contractual life of the option 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 quarter ended September 30, 2015 was $61,000 and $69,000 for the quarter ended September 30, 2014. There was no income tax benefit for the quarter ended September 30, 2015, and an income tax benefit of $24,000 for the quarter ended September 30, 2014. The amount of compensation expense for options recorded in the nine months ended September 30, 2015 and September 30, 2014 was $183,000 and $208,000, respectively. There was an income tax benefit of $154,000 and $294,000 for the nine months ended September 30, 2015 and September 30, 2014, respectively. The intrinsic value for options exercised during the nine months ended September 30, 2015 was $671,000. The intrinsic value for options exercised during the nine months ended September 30, 2014 was $848,000. The intrinsic value for options exercisable at September 30, 2015 was $3,042,000. The amount of total unrecognized compensation expense related to non-vested options at September 30, 2015 was $569,000, and the weighted average period over which it will be amortized is 3.1 years. |
C. EARNINGS PER SHARE CALCULATI
C. EARNINGS PER SHARE CALCULATION | 9 Months Ended |
Sep. 30, 2015 | |
Earnings per share data: | |
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. A 5% stock dividend was declared in the fourth quarter of 2014, paid in 2015, and prior per share amounts have been adjusted to reflect the 5% stock dividend. Earnings per share have been computed based on the following: (All amounts in thousands) Three months ended Nine months ended September 30, September 30, 2015 2014 2015 2014 Net earnings $ 2,239 $ 1,823 $ 6,109 $ 5,286 Dividends and discount accretion on preferred stock 170 Net earnings available to common shareholders $ 2,239 $ 1,823 $ 6,109 $ 5,116 Average number of shares outstanding 4,309 4,250 4,293 4,222 Effect of dilutive options 113 134 121 142 Average number of shares outstanding used to calculate diluted earnings per share 4,422 4,384 4,414 4,364 Anti-dilutive options not included 93 65 94 65 |
D. SECURITIES AVAILABLE FOR SAL
D. SECURITIES AVAILABLE FOR SALE | 9 Months Ended |
Sep. 30, 2015 | |
SECURITIES AVAILABLE FOR SALE | |
SECURITIES AVAILABLE FOR SALE | The amortized cost and fair values of securities available-for-sale are as follows: (Dollar amounts in thousands) Amortized Unrealized Unrealized Fair cost gains losses value September 30, 2015 U.S. Treasury securities $ 5,996 $ 83 $ $ 6,079 Obligations of U.S. government agencies 79,446 719 (12 ) 80,153 Mortgage-backed securities 62,221 1,355 (80 ) 63,496 Obligations of states and political subdivisions 122,607 2,652 (231 ) 125,028 Corporate debt 40,557 292 (45 ) 40,804 $ 310,827 $ 5,101 $ (368 ) $ 315,560 December 31, 2014 U.S. Treasury securities $ 3,975 $ 12 $ (29 ) $ 3,958 Obligations of U.S. government agencies 63,090 270 (298 ) 63,062 Mortgage-backed securities 78,076 1,002 (661 ) 78,417 Obligations of states and political subdivisions 82,151 2,534 (143 ) 84,542 Corporate debt 34,931 176 (205 ) 34,902 $ 262,223 $ 3,994 $ (1,336 ) $ 264,881 An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of September 30, 2015 and December 31, 2014 follows: (Dollar amounts in thousands) Less than 12 Months Total 12 Months Total or Longer Total Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses September 30, 2015 U.S. Treasury securities $ $ $ $ $ $ Obligations of U.S. Government agencies 3,987 (4 ) 5,035 (8 ) 9,022 (12 ) Mortgage-backed securities 14,416 (80 ) 14,416 (80 ) Obligations of states and political subdivisions 27,308 (200 ) 1,842 (31 ) 29,150 (231 ) Corporate debt 10,475 (29 ) 1,986 (16 ) 12,461 (45 ) Total $ 41,770 $ (233 ) $ 23,279 $ (135 ) $ 65,049 $ (368 ) (Dollar amounts in thousands) Less than 12 Months Total 12 Months Total or Longer Total Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses December 31, 2014: U. S. Treasury securities $ $ $ 2,015 $ (29 ) $ 2,015 $ (29 ) Obligations of U.S. Government agencies 13,178 (43 ) 19,116 (255 ) 32,294 (298 ) Mortgage-backed securities 5,056 (10 ) 36,382 (651 ) 41,438 (661 ) Obligations of states and political subdivisions 8,678 (49 ) 5,696 (94 ) 14,374 (143 ) Corporate debt 18,065 (125 ) 4,919 (80 ) 22,984 (205 ) Total $ 44,977 $ (227 ) $ 68,128 $ (1,109 ) $ 113,105 $ (1,336 ) At September 30, 2015, there were twenty The amortized cost and carrying value of available-for-sale debt securities as of September 30, 2015 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. September 30, 2015: (Dollar amounts in thousands) Amortized Fair Cost Value Available-for-sale: Due in one year or less $ 12,762 $ 12,853 Due after one through five years 139,399 141,174 Due after five years through ten years 130,249 132,506 Due after ten years 28,417 29,027 $ 310,827 $ 315,560 For the nine months ended September 30, 2015, gross realized gains amounted to $250,000 on securities sold for $11,463,000. For the nine months ended September 30, 2014, gross realized gains amounted to $151,000 on securities sold for $10,505,000. For the nine months ended September 30, 2015, there were no gross realized losses on securities sold. For the nine months ended September 30, 2014, there were $12,000 gross realized losses on securities sold for $2,109,000. For the three months ended September 30, 2015, gross realized gains amounted to $29,000 on securities sold for $3,187,000. For the three months ended September 30, 2014, gross realized gains were $112,000 on securities sold for $5,219,000. For the three months ended September 30, 2015, there were no gross realized losses on securities sold. For the three months ended September 30, 2014, gross realized losses were $12,000 on securities sold for $1,849,000. At September 30, 2015, securities with an amortized cost of $102,182,000 and fair value of $103,776,000 were pledged as collateral for public deposits and for other purposes required by law. |
E. LOANS
E. LOANS | 9 Months Ended |
Sep. 30, 2015 | |
LOANS | |
LOANS | Loans are summarized as follows at September 30, 2015 and December 31, 2014: (Dollar amounts in thousands) Total FNB Balance Bancorp September 30, September 30, 2015 Originated PNCI PCI 2015 Commercial real estate $ 304,276 $ 88,493 $ 1,321 $ 394,090 Real estate construction 30,395 5,473 35,868 Real estate multi-family 47,264 16,664 63,928 Real estate 1 to 4 family 151,159 21,121 172,280 Commercial & industrial 27,817 12,026 39,843 Consumer 1,497 1,497 Gross loans 562,408 143,777 1,321 707,506 Net deferred loan fees (678 ) (678 ) Allowance for loan losses (9,940 ) (9,940 ) Net loans $ 551,790 $ 143,777 $ 1,321 $ 696,888 (Dollar amounts in thousands) Total FNB Balance Bancorp December 31, December 31, 2014 Originated PNCI PCI 2014 Commercial real estate $ 285,252 $ 31,852 $ 1,323 $ 318,427 Real estate construction 37,827 1,944 39,771 Real estate multi-family 43,379 10,445 53,824 Real estate 1 to 4 family 123,522 5,210 128,732 Commercial & industrial 42,551 9,111 51,662 Consumer 1,448 1,448 Gross loans 533,979 58,562 1,323 593,864 Net deferred loan fees (449 ) (449 ) Allowance for loan losses (9,700 ) (9,700 ) Net loans $ 523,830 $ 58,562 $ 1,323 $ 583,715 Note: PNCI means Purchased, Not Credit Impaired. PCI means Purchased, Credit Impaired. Allowance for Credit Losses For the Three Months Ended September 30, 2015 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real estate Construction family 4 family & industrial Consumer Total Allowance for credit losses Beginning balance $ 6,027 $ 697 $ 198 $ 2,014 $ 848 $ 52 $ 9,836 Charge-offs (23 ) (23 ) Recoveries 15 7 26 4 52 Provision (67 ) (49 ) (10 ) 289 (73 ) (15 ) 75 Ending balance $ 5,975 648 188 2,310 $ 778 $ 41 $ 9,940 Ending balance individually evaluated for impairment $ 126 $ $ $ 522 $ 224 $ $ 872 Ending balance: $ 5,849 $ 648 $ 188 $ 1,788 $ 554 $ 41 $ 9,068 Allowance for Credit Losses For the Nine Months Ended September 30, 2015 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real estate Construction family 4 family & industrial Consumer Total Allowance for credit losses Beginning balance $ 5,549 $ 849 $ 206 $ 1,965 $ 1,073 $ 58 $ 9,700 Charge-offs (45 ) (23 ) (11 ) (79 ) Recoveries 37 8 45 4 94 Provision 389 (201 ) (18 ) 382 (317 ) (10 ) 225 Ending balance $ 5,975 $ 648 $ 188 $ 2,310 $ 778 $ 41 $ 9,940 Ending balance: $ 126 $ $ $ 522 $ 224 $ $ 872 Ending balance: $ 5,849 $ 648 $ 188 $ 1,788 $ 554 $ 41 $ 9,068 Recorded Investment in Loans at September 30, 2015 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real Estate Construction family 4 family & industrial Consumer Total Loans: Ending balance $ 394,090 $ 35,868 $ 63,928 $ 172,280 $ 39,843 $ 1,497 $ 707,506 Ending balance: $ 9,501 $ 2,162 $ $ 4,857 $ 1,813 $ $ 18,333 Ending balance: $ 384,589 $ 33,706 $ 63,928 $ 167,423 $ 38,030 $ 1,497 $ 689,173 Allowance for Credit Losses As of and For the Year Ended December 31, 2014 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real estate Construction family 4 family & industrial Consumer Total Allowance for credit losses Beginning balance $ 5,763 $ 734 $ 293 $ 1,788 $ 1,237 $ 64 $ 9,879 Charge-offs (83 ) (183 ) (62 ) (28 ) (26 ) (382 ) Recoveries 1,062 3 154 4 1,223 Provision (1,193 ) 298 (87 ) 236 (290 ) 16 (1,020 ) Ending balance $ 5,549 $ 849 $ 206 $ 1,965 $ 1,073 $ 58 $ 9,700 Ending balance: $ 101 $ $ $ 432 $ 225 $ 8 $ 766 Ending balance: $ 5,448 $ 849 $ 206 $ 1,533 $ 848 $ 50 $ 8,934 Recorded Investment in Loans at December 31, 2014 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real Estate Construction family 4 family & industrial Consumer Total Loans: Ending balance $ 318,427 $ 39,771 $ 53,824 $ 128,732 $ 51,662 $ 1,448 $ 593,864 Ending balance: $ 9,530 $ 2,373 $ $ 4,333 $ 2,315 $ 64 $ 18,615 Ending balance: $ 308,897 $ 37,398 $ 53,824 $ 124,399 $ 49,347 $ 1,384 $ 575,249 Allowance for Credit Losses For the Three Months Ended September 30, 2014 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real estate Construction family 4 family & industrial Consumer Total Allowance for credit losses Beginning balance $ 6,215 $ 717 $ 465 $ 2,250 $ 1,166 $ 46 $ 10,859 Provision 495 (150 ) (202 ) (193 ) 27 23 Charge-offs (83 ) (17 ) (6 ) (106 ) Recoveries 5 1 14 1 21 Ending balance $ 6,632 $ 567 $ 263 $ 2,058 $ 1,190 $ 64 $ 10,774 Ending balance: $ 111 $ $ $ 429 $ 177 $ $ 717 Ending balance: $ 6,521 $ 567 $ 263 $ 1,629 $ 1,013 $ 64 $ 10,057 Allowance for Credit Losses For the Nine Months Ended September 30, 2014 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real estate Construction family 4 family & industrial Consumer Total Allowance for credit losses Beginning balance $ 5,763 $ 734 $ 293 $ 1,788 $ 1,237 $ 64 $ 9,879 Provision (105 ) 16 (30 ) 330 (158 ) 22 75 Charge-offs (83 ) (183 ) (62 ) (28 ) (26 ) (382 ) Recoveries 1,057 2 139 4 1,202 Ending balance $ 6,632 $ 567 $ 263 $ 2,058 $ 1,190 $ 64 $ 10,774 Ending balance: $ 111 $ $ $ 429 $ 177 $ $ 717 Ending balance: $ 6,521 $ 567 $ 263 $ 1,629 $ 1,013 $ 64 $ 10,057 Recorded Investment in Loans at September 30, 2014 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real Estate Construction family 4 family & industrial Consumer Total Loans: Ending balance $ 320,695 $ 34,701 $ 53,721 $ 120,233 $ 48,916 $ 1,483 $ 579,749 Ending balance: $ 10,158 $ 2,378 $ $ 4,292 $ 2,170 $ $ 18,998 Ending balance: $ 310,537 $ 32,323 $ 53,721 $ 115,941 $ 46,746 $ 1,483 $ 560,751 Impaired Loans As of and for the nine months ended September 30, 2015 Unpaid Average (Dollar amounts in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no related allowance recorded Commercial real estate $ 4,392 $ 5,271 $ $ 4,867 $ 217 Commercial real estate construction 2,162 2,345 2,359 100 Real estate - multi family Residential - 1 to 4 family 1,475 1,476 1,482 49 Commercial and industrial 528 782 4,410 27 Total 8,557 9,874 13,118 393 With an allowance recorded Commercial real estate $ 5,109 $ 5,113 $ 126 $ 5,162 $ 196 Commercial real estate construction Residential - 1 to 4 family 3,382 2,972 522 3,202 96 Commercial and industrial 1,285 1,539 224 1,489 5 Consumer Total 9,776 9,624 872 9,853 297 Total Commercial real estate $ 9,501 $ 10,384 $ 126 $ 10,029 $ 413 Commercial real estate construction 2,162 2,345 2,359 100 Real estate - multi family Residential - 1 to 4 family 4,857 4,448 522 4,684 145 Commercial and industrial 1,813 2,321 224 5,899 32 Consumer Grand total $ 18,333 $ 19,498 $ 872 $ 22,971 $ 690 Impaired Loans As of and for the year ended December 31, 2014 Unpaid Average (Dollar amounts in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no related allowance recorded Commercial real estate $ 4,462 $ 5,333 $ $ 4,473 $ 304 Commercial real estate construction 2,373 2,556 1,846 150 Residential- 1 to 4 family 1,594 1,737 1,379 67 Commercial and industrial 582 939 788 54 Total 9,011 10,565 8,486 575 With an allowance recorded Commercial real estate $ 5,068 $ 5,071 $ 101 $ 5,127 $ 258 Residential- 1 to 4 family 2,739 2,754 432 2,759 111 Commercial and industrial 1,733 2,100 225 1,907 33 Consumer 64 64 8 67 5 Total 9,604 9,989 766 9,860 407 Total Commercial real estate $ 9,530 $ 10,404 $ 101 $ 9,600 $ 562 Commercial real estate construction 2,373 2,556 1,846 150 Residential- 1 to 4 family 4,333 4,491 432 4,138 178 Commercial and industrial 2,315 3,039 225 2,695 87 Consumer 64 64 8 67 5 Grand total $ 18,615 $ 20,554 $ 766 $ 18,346 $ 982 Average recorded investment on impaired loans was $22,971,000 Nonaccrual loans totaled $5,192,000 and $5,648,000 as of September 30, 2015 and December 31, 2014. The difference between impaired loans and nonaccrual loans represents loans that are restructured, are performing under modified loan agreements, and accruing interest. Loans on Nonaccrual Status as of (Dollar amounts in thousands) September 30, December 31, 2015 2014 Commercial real estate $ 2,094 $ 2,111 Real estate - construction Real estate 1 to 4 family 1,285 1,181 Commercial and industrial 1,813 2,292 Consumer 64 Total $ 5,192 $ 5,648 Interest income on impaired loans of $690,000 was recognized for cash payments received during the nine months ended September 30, 2015, and $982,000 was recognized for cash payments received during the year ended December 31, 2014. Interest income recognized for cash payments received for the three months ended September 30, 2015 was $222,000 and for the three months ended September 30, 2014 was $291,000. Interest income recognized for cash payments received for the nine months ended September 30, 2014 was $746,000. The amount of interest on impaired loans not collected for the nine months ended September 30, 2015 was $284,000 and for the year ended December 31, 2014 was $91,000. The cumulative amount of unpaid interest on impaired loans was $3,228,000 for the nine months ended September 30, 2015, and $2,944,000 for the year ended December 31, 2014. Total outstanding principal of troubled debt restructured loans as of September 30, 2015 was $15,841,000, of which $9,346,000 was commercial real estate loans, $1,291,000 was real estate construction loans, $3,596,000 was real estate one to four family loans, and $1,608,000 was commercial and industrial loans. Total outstanding principal of troubled debt restructured loans at December 31, 2014 was $16,517,000, of which $9,498,000 was commercial real estate loans, $1,304,000 was real estate construction loans, $3,661,000 was real estate one to four family loans, and $2,054,000 was commercial and industrial loans. Troubled Debt Restructurings Total troubled debt restructured loans outstanding at (dollars in thousands) September 30, 2015 December 31, 2014 Non- Non- Accrual accrual Total Accrual accrual Total status status modifications status status modifications Commercial real estate $ 7,265 $ 2,081 $ 9,346 $ 7,407 $ 2,091 $ 9,498 Real Estate construction 1,291 1,291 1,304 1,304 Real estate 1 to 4 family 3,596 3,596 3,153 508 3,661 Commercial & industrial 1,608 1,608 294 1,760 2,054 Total $ 12,152 $ 3,689 $ 15,841 $ 12,158 $ 4,359 $ 16,517 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 Term modification Interest Only Modification Payment Modification As of September 30, 2015, there were no commitments for additional funding of troubled debt restructured loans. Modifications For the nine months ended September 30, 2015 Pre- Post- Modification Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment (Dollar amounts in thousands) Real estate 1 to 4 family 1 $ 474 $ 474 Total 1 $ 474 $ 474 All restructurings were a modification of interest rate and/or payment. There were no principal reductions granted. There were no payment defaults during the nine month period ended September 30, 2015 that were related to receivables modified as TDRs in the last twelve months. There were no modifications for the three months ended September 30, 2015. There were no payment defaults during the three month period ended September 30, 2015 that were related to receivables modified as TDRs in the last twelve months. Modifications For the nine months ended September 30, 2014 Pre- Post- Modification Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment (Dollar amounts in thousands) Real estate 1 to 4 family 1 $ 575 $ 569 Commercial real estate 3 1,454 1,449 Total 4 $ 2,029 $ 2,018 There were no modifications in the three months ended September 30, 2014. All restructurings were a modification of interest rate and/or payment. There were no principal reductions granted. There were no payment defaults during the three or nine month periods ended September 30, 2014 that were related to receivables modified as TDRs in the last twelve months. 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 managements attention. If left uncorrected these potential weaknesses may result in a deterioration of the repayment prospects for the asset or in the Banks 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. These well-defined weaknesses may include 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. Real Estate 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 borrowers 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 borrowers 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. Real Estate-1 to 4 family 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. 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. Consumer 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 if borrowers lose their primary source of income, or file for relief from creditors through bankruptcy proceedings. Age Analysis of Past Due Loans As of September 30, 2015 (Dollar amounts in thousands) 30-59 60-89 Days Days Over Total Past Past 90 Past Total Originated Due Due Days Due Current Loans Commercial real estate $ $ $ $ $ 304,276 $ 304,276 Real estate construction 713 713 29,682 30,395 Real estate multi family 47,264 47,264 Real estate-1 to 4 family 611 611 150,548 151,159 Commercial and industrial 1,813 1,813 26,004 27,817 Consumer 1,497 1,497 Total $ $ 713 $ 2,424 $ 3,137 $ 559,271 $ 562,408 Purchased Not credit impaired Commercial real estate $ 531 $ 3,778 $ $ 4,309 $ 84,184 $ 88,493 Real estate construction 5,473 5,473 Real estate multi-family 16,664 16,664 Real estate-1 to 4 family 14 400 414 20,707 21,121 Commercial and industrial 12,026 12,026 Total $ 545 $ 3,778 $ 400 $ 4,723 $ 139,054 $ 143,777 Purchased Credit impaired Commercial real estate $ $ $ $ $ 1,321 $ 1,321 Real estate construction Real estate multi-family Real estate-1 to 4 family Commercial and industrial Consumer Total $ $ $ $ $ 1,321 $ 1,321 At September 30, 2015, there were no loans 90 days or more past due where interest was still accruing. The over 90 days column includes nonaccruals that were over 90 days, but does not include loans that are in nonaccrual status for reasons other than past due. Age Analysis of Past Due Loans As of December 31, 2014 (Dollar amounts in thousands) 30-59 60-89 Days Days Over Total Past Past 90 Past Total Originated Due Due Days Due Current Loans Commercial real estate $ 8 $ 879 $ $ 887 $ 284,365 $ 285,252 Real estate construction 708 708 37,119 37,827 Real estate multi family 3,575 3,575 39,804 43,379 Real estate 1 to 4 family 330 200 1,112 1,642 121,880 123,522 Commercial & industrial 775 73 1,710 2,558 39,993 42,551 Consumer 64 64 1,384 1,448 Total $ 4,688 $ 1,860 $ 2,886 $ 9,434 $ 524,545 $ 533,979 Purchased Not credit impaired Commercial real estate $ $ $ $ 31,852 $ 31,852 Real estate construction 1,944 1,944 Real estate multi-family 10,445 10,445 Real estate 1 to 4 family 400 400 4,810 5,210 Commercial & industrial 9,111 9,111 Total $ $ 400 $ $ 400 $ 58,162 $ 58,562 Purchased Credit impaired Commercial real estate $ $ $ $ $ 1,323 $ 1,323 Real estate construction Real estate multi-family Real estate 1 to 4 family Commercial & industrial Total $ $ $ $ $ 1,323 $ 1,323 At December 31, 2014 there were no loans that were 90 days or more past due where interest was still accruing. Credit Quality Indicators As of September 30, 2015 (Dollar amounts in thousands) Special Sub- Total Originated Pass mention standard Doubtful loans Commercial real estate $ 298,182 $ 1,862 $ 4,232 $ $ 304,276 Real estate construction 29,333 1,062 30,395 Real estate multi-family 47,264 47,264 Real estate-1 to 4 family 150,346 813 151,159 Commercial and industrial 27,211 441 165 27,817 Consumer loans 1,497 1,497 Totals $ 553,833 $ 1,862 $ 6,548 $ 165 $ 562,408 Purchased Not credit impaired Commercial real estate $ 66,703 $ 7,745 $ 14,031 $ 14 $ 88,493 Real estate construction 5,473 5,473 Real estate multi-family 16,664 16,664 Real estate-1 to 4 family 20,720 401 21,121 Commercial and industrial 11,931 95 12,026 Total $ 121,491 $ 7,745 $ 14,527 $ 14 $ 143,777 Credit impaired Commercial real estate $ 1,321 Total $ 1,321 Credit Quality Indicators As of December 31, 2014 (Dollar amounts in thousands) Special Sub- Total Originated Pass mention standard Doubtful loans Commercial real estate $ 281,216 $ 1,913 $ 2,031 $ 92 $ 285,252 Real estate construction 36,692 1,135 37,827 Real estate multi-family 43,379 43,379 Real estate 1 to 4 family 122,499 1,023 123,522 Commercial & industrial 41,394 1,157 42,551 Consumer loans 1,384 64 1,448 Totals $ 526,564 $ 1,913 $ 5,410 $ 92 $ 533,979 Purchased Not credit impaired Commercial real estate $ 26,009 $ $ 5,843 $ $ 31,852 Real estate construction 1,944 1,944 Real estate multi-family 10,445 10,445 Real estate 1 to 4 family 4,810 400 5,210 Commercial & industrial 9,111 9,111 Total $ 52,319 $ $ 5,843 $ 400 $ 58,562 Purchased Credit impaired Commercial real estate $ 1,323 Total $ 1,323 |
F. BORROWINGS
F. BORROWINGS | 9 Months Ended |
Sep. 30, 2015 | |
BORROWINGS | |
BORROWINGS | Federal Home Loan Bank advances There were no overnight advances at September 30, 2015. 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 was 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 its 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. |
G. FAIR VALUE MEASUREMENT
G. FAIR VALUE MEASUREMENT | 9 Months Ended |
Sep. 30, 2015 | |
FAIR VALUE MEASUREMENT TABLES | |
FAIR VALUE MEASUREMENT | The following tables present information about the Companys assets and liabilities measured at fair value as of September 30, 2015 and December 31, 2014, and indicate 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 Companys 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. Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally corresponds with the Companys quarterly valuation process. During the first nine months of 2015 and 2014, there were no transfers between levels of fair value hierarchy. The following table presents the recorded amounts of assets measured at fair value on a recurring basis: Fair Value Measurements (Dollar amounts in thousands) at September 30, 2015, Using Quoted Prices in Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets Inputs Inputs Description 9/30/2015 (Level 1) (Level 2) (Level 3) U. S. Treasury securities $ 6,079 $ 6,079 $ $ Obligations of U.S. Government agencies 80,153 80,153 Mortgage-backed securities 63,496 63,496 Obligations of states and political subdivisions 125,028 125,028 Corporate debt 40,804 40,804 Total assets measured at fair value $ 315,560 $ 6,079 $ 309,481 $ Fair Value Measurements (Dollar amounts in thousands) at December 31, 2014, Using Quoted Prices in Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets Inputs Inputs Description 12/31/2014 (Level 1) (Level 2) (Level 3) U. S. Treasury securities $ 3,958 $ 3,958 $ $ Obligations of U.S. Government agencies 63,062 63,062 Mortgage-backed securities 78,417 78,417 Obligations of states and political subdivisions 84,542 84,542 Corporate debt 34,902 34,902 Total assets measured at fair value $ 264,881 $ 3,958 $ 260,923 $ The following tables present the recorded amounts of assets measured at fair value on a non-recurring basis: Fair Value Measurements (Dollar amounts in thousands) at September 30, 2015, Using Quoted Prices in Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets Inputs Inputs Description 9/30/2015 (Level 1) (Level 2) (Level 3) Impaired loans: Commercial real estate $ 123 $ $ $ 123 Residential-1 to 4 family 238 238 Commercial and industrial 1,016 1,016 Other real estate owned 838 838 Total impaired assets measured at fair value $ 2,215 $ $ $ 2,215 Fair Value Measurements (Dollar amounts in thousands) at December 31, 2014, Using Quoted Prices in Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets Inputs Inputs Description 12/31/2014 (Level 1) (Level 2) (Level 3) Impaired loans: Commercial real estate $ 381 $ $ $ 381 Residential-1 to 4 family 323 323 Commercial and industrial 1,472 1,472 Consumer 56 56 Other real estate owned 763 763 Total impaired assets measured at fair value $ 2,995 $ $ $ 2,995 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 an 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 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 propertys 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 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. Note payable. The fair value of the note payable is based on the current balance outstanding. The fair value is calculated on discounted cash flows. The discount rate is equal to the market rate offered on similar products. 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 September 30, 2015: September 30, 2015 Carrying Fair Fair value measurements (Dollar amounts in thousands) amount value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 40,282 $ 40,282 $ 40,282 Interest-bearing time deposits with financial institutions 1,246 1,250 $ 1,250 Securities available for sale 315,560 315,560 6,079 309,481 Loans 707,506 709,391 $ 709,391 Other equity securities 6,748 6,748 6,748 Accrued interest receivable 4,326 4,326 4,326 Financial liabilities: Deposits 989,365 989,845 989,845 Note payable 5,100 5,100 5,100 Accrued interest payable 237 237 237 Off-balance-sheet liabilities: Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit 1,707 1,707 The carrying amount of loans includes $5,192,000 of nonaccrual loans (loans that are not accruing interest) as of September 30, 2015. 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, 2014: December 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 $ 14,978 $ 14,978 $ 14,978 Interest-bearing time deposits with financial institutions 2,784 2,813 $ 2,813 Securities available for sale 264,881 264,881 3,958 260,923 Loans 593,864 594,524 $ 594,524 Other equity securities 5,769 5,769 5,769 Accrued interest receivable 3,725 3,725 3,725 Financial liabilities: Deposits 792,194 792,472 792,472 Federal Home Loan Bank advances 9,000 9,000 9,000 Note payable 5,550 5,550 5,550 Accrued interest payable 182 182 182 Off-balance-sheet liabilities: Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit 1,449 1,449 The carrying amount of loans includes $5,648,000 of nonaccrual loans (loans that are not accruing interest) as of December 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. |
H. ACQUISITION OF AMERICA CALIF
H. ACQUISITION OF AMERICA CALIFORNIA BANK | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
ACQUISITION OF AMERICA CALIFORNIA BANK | On May 14, 2015, the Company entered into an Agreement and Plan of Reorganization and Merger dated May 14,2015 (the Agreement) to acquire all of the outstanding common stock and preferred stock of America California Bank, a San Francisco, California banking corporation. The all-cash agreed upon purchase price for the outstanding shares of America California Bank was $10.60 per share, or approximately $21,500,000. The purpose of the acquisition was to increase the size of our earning asset and interest bearing liability portfolios with customers located in and around San Francisco. On September 4, 2015, the company completed the merger of America California Bank. The only branch location of America California Bank was closed on September 4, 2015 and all loan and deposit accounts were transferred to our Battery Street office in San Francisco. The assets acquired and liabilities assumed, both tangible and intangible, were recorded at fair values as of the acquisition date in accordance with ASC 805, Business Combinations The following table reflects the estimated fair values of the assets acquired and liabilities assumed related to the America California Bank acquisition: America California Bank September 4, 2015 (In thousands) Assets Cash and due from banks $ 3,019 Interest-bearing time deposits with financial institutions 7,836 Other equity securities 679 Loans 92,969 Premises and equipment, net 62 Bank owned life insurance 2,971 Accrued interest receivable 313 Prepaid expense 1,808 Goodwill 2,739 Other assets 2,731 Total Assets $ 115,127 Liabilities Deposits: Demand deposits 14,500 NOW accounts 6,122 Savings and money market deposits 42,680 Time deposits 26,824 Total deposits 90,126 Accrued expenses and other liabilities 3,501 Total Liabilities 93,627 Merger consideration (cash) $ 21,500 America California Bank tangible Stockholders Equity $ 18,440 Adjustments to reflect assets acquired and liabilities assumed at fair value: Loans 2,178 Core deposit intangible 727 Certificates of deposit (243 ) Accrued expenses (1,832 ) Other borrowings (86 ) Subtotal net fair value adjustments 744 Deferred tax liability related to purchase (423 ) Total fair value adjustments $ 321 Fair value of Net Assets Acquired 18,761 Merger Consideration 21,500 Less: Fair Value of Net Assets Acquired (18,761 ) Goodwill 2,739 Goodwill represents the excess of the total purchase price paid over the fair value of the assets acquired, net of the fair value of liabilities assumed. It arises mainly from expected synergies related to the combined operating activities of First National Bank of Northern California and America California Bank. It is evaluated for impairment annually. The following is a description of the methods used to determine the fair values of significant assets and liabilities at the date of acquisition: Loans The fair values for acquired loans were developed based upon the present values of the expected cash flows utilizing market-derived discount rates. Expected cash flows for each acquired loan were projected based on contractual cash flows adjusted for expected prepayment, expected default (the probability of default and the magnitude of the expected loss given a default), and principal recovery. Prepayment rates were applied to the principal outstanding based on the type of loan, where appropriate. Prepayments were based on a constant prepayment rate (CPR) applied over the life of each loan. The Company used CPRs ranging from 0% to 24%, depending on the characteristics of the loan being evaluated. All loans purchased were non-credit impaired loans that were evaluated using evaluation metrics that were applied uniformly to loans that were similar in type, collateral, risk classification, fixed or variable in interest rate, term of the loan, and whether the loan was amortizing or interest only. The discount rates used were applied uniformly for similar loans based on current market rates for new originations of comparable loans, where available, and include adjustments for credit and liquidity factors. To the extent comparable market rates are not readily available, a discount rate was derived based on the assumptions of a market participants cost of funds, servicing costs, and rate of return requirements for comparable risk assets. The gross contractual amounts receivable totaled $93.4 million as of the acquisition date. Core Deposit Intangible The recorded core deposit intangible represents estimated future benefits of acquired deposits that have no stated maturity and is recorded separately from the liability in other assets. The value of the core deposit intangible asset was determined using a discounted cash flow approach to arrive at the cost differential between the core deposits (checking, savings and money market accounts) and alternative funding sources. The core deposit intangible is computed as the present value of the difference in cash flows between maintaining the existing deposits (interest and net maintenance costs) and the cost of an equal amount of funds from an alternative source having similar attributes as the core deposit base. The core deposit intangible is amortized over an estimated 15 year life. The core deposit intangible asset is evaluated periodically for impairment. Time Deposits The fair values for the time deposits were estimated using a discounted cash flow calculation that applied interest rates offered by market participants as of the acquisition date on time deposits with similar maturity terms as the discount rates. Acquisition Costs Costs that were incurred by the Company related to contractual commitments made by America California Bank prior to the completion of the merger were capitalized by the Company and are recorded in goodwill. Capitalized costs were composed primarily of severance payments and retention bonuses paid to qualifying officers, employees and directors of America California Bank. Total America California Bank acquisition costs were $1,832,000. Acquisition Related Expense Costs incurred by the Company related to gaining operational efficiencies in the America California Bank acquisition were charged to operational expense during the third quarter of 2015. The following table summarized the estimated operational expenses recorded during the third quarter of 2015: Acquisition Related Expense (Amounts in thousands) Occupancy $ 345 Data processing 515 Legal and accounting 150 D & O insurance -tail end coverage 35 Total $ 1,045 Fair Market Valuation Adjustment Amortization and Accretion The amortization and accretion of the fair value adjustments that were recorded as part of the acquisition of America California Bank will be ratably charged to income and expense over the estimate lives of the interest earning assets and interest bearing liabilities acquired. The following table presents the pro-forma effect on earnings of the amortization and accretion of the fair value adjustments assuming that the acquisition had occurred at the beginning of each year presented. The pro forma consolidated condensed statements of earnings do not reflect any adjustment to America Californias historical provision for credit losses or the net interest income earned by America California Bank prior to the acquisition. The pro forma consolidated condensed statement of earnings for FNB Bancorp and America California Bank for the nine months ended September 30, 2015 and 2014 are presented below. The unaudited pro forma information presented does not necessarily reflect the results of operations that would have resulted had the acquisition been completed at the beginning of fiscal year 2014, nor does it indicate the results of operations in future periods. The pro forma adjustments to loans and deposits are being accreted or amortized into income using methods that approximate a level yield over their respective expected lives. Adjustments related to identifiable are being amortized and recorded as noninterest expense over their respective expected lives using accelerated methods. The pro forma consolidated condensed statements of earnings do not reflect any adjustments to America California Banks historical provision for credit losses and goodwill impairment charges. Nine months ended 9/30/2015 9/30/2014 As Reported As Adjusted As Reported As Adjusted Net interest income after provision for loan losses $ 26,236 $ 29,289 $ 25,907 $ 29,271 Noninterest income 3,367 3,518 3,067 3,263 Noninterest expense 21,211 23,952 21,107 23,878 Earnings before provision for income tax expense 8,392 8,855 7,867 8,656 Provision for income tax expense 2,283 2,467 2,581 2,895 Net earnings $ 6,109 $ 6,388 $ 5,286 $ 5,761 Earnings per share data: Basic $ 1.42 $ 1.49 $ 1.25 $ 1.36 Diluted $ 1.38 $ 1.45 $ 1.21 $ 1.32 Weighted average shares outstanding: Basic 4,293 4,293 4,222 4,222 Diluted 4,414 4,414 4,364 4,364 |
C. EARNINGS PER SHARE CALCULA16
C. EARNINGS PER SHARE CALCULATION (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings per share data: | |
Earnings per common share (EPS) computed | (All amounts in thousands) Three months ended Nine months ended September 30, September 30, 2015 2014 2015 2014 Net earnings $ 2,239 $ 1,823 $ 6,109 $ 5,286 Dividends and discount accretion on preferred stock 170 Net earnings available to common shareholders $ 2,239 $ 1,823 $ 6,109 $ 5,116 Average number of shares outstanding 4,309 4,250 4,293 4,222 Effect of dilutive options 113 134 121 142 Average number of shares outstanding used to calculate diluted earnings per share 4,422 4,384 4,414 4,364 Anti-dilutive options not included 93 65 94 65 |
D. SECURITIES AVAILABLE FOR S17
D. SECURITIES AVAILABLE FOR SALE (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
SECURITIES AVAILABLE FOR SALE TABLES | |
Schedule of amortized cost and carrying values of securities available-for-sale | (Dollar amounts in thousands) Amortized Unrealized Unrealized Fair cost gains losses value September 30, 2015 U.S. Treasury securities $ 5,996 $ 83 $ $ 6,079 Obligations of U.S. government agencies 79,446 719 (12 ) 80,153 Mortgage-backed securities 62,221 1,355 (80 ) 63,496 Obligations of states and political subdivisions 122,607 2,652 (231 ) 125,028 Corporate debt 40,557 292 (45 ) 40,804 $ 310,827 $ 5,101 $ (368 ) $ 315,560 December 31, 2014 U.S. Treasury securities $ 3,975 $ 12 $ (29 ) $ 3,958 Obligations of U.S. government agencies 63,090 270 (298 ) 63,062 Mortgage-backed securities 78,076 1,002 (661 ) 78,417 Obligations of states and political subdivisions 82,151 2,534 (143 ) 84,542 Corporate debt 34,931 176 (205 ) 34,902 $ 262,223 $ 3,994 $ (1,336 ) $ 264,881 |
Schedule analysis of gross unrealized losses of the available-for-sale investment securities | (Dollar amounts in thousands) Less than 12 Months Total 12 Months Total or Longer Total Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses September 30, 2015 U.S. Treasury securities $ $ $ $ $ $ Obligations of U.S. Government agencies 3,987 (4 ) 5,035 (8 ) 9,022 (12 ) Mortgage-backed securities 14,416 (80 ) 14,416 (80 ) Obligations of states and political subdivisions 27,308 (200 ) 1,842 (31 ) 29,150 (231 ) Corporate debt 10,475 (29 ) 1,986 (16 ) 12,461 (45 ) Total $ 41,770 $ (233 ) $ 23,279 $ (135 ) $ 65,049 $ (368 ) (Dollar amounts in thousands) Less than 12 Months Total 12 Months Total or Longer Total Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses December 31, 2014: U. S. Treasury securities $ $ $ 2,015 $ (29 ) $ 2,015 $ (29 ) Obligations of U.S. Government agencies 13,178 (43 ) 19,116 (255 ) 32,294 (298 ) Mortgage-backed securities 5,056 (10 ) 36,382 (651 ) 41,438 (661 ) Obligations of states and political subdivisions 8,678 (49 ) 5,696 (94 ) 14,374 (143 ) Corporate debt 18,065 (125 ) 4,919 (80 ) 22,984 (205 ) Total $ 44,977 $ (227 ) $ 68,128 $ (1,109 ) $ 113,105 $ (1,336 ) |
Schedule of amortized cost and carrying value of available-for-sale debt securities by contractual maturity | September 30, 2015: (Dollar amounts in thousands) Amortized Fair Cost Value Available-for-sale: Due in one year or less $ 12,762 $ 12,853 Due after one through five years 139,399 141,174 Due after five years through ten years 130,249 132,506 Due after ten years 28,417 29,027 $ 310,827 $ 315,560 |
E. LOANS (Tables)
E. LOANS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
LOANS TABLES | |
Schedule Of Loans Outstanding | (Dollar amounts in thousands) Total FNB Balance Bancorp September 30, September 30, 2015 Originated PNCI PCI 2015 Commercial real estate $ 304,276 $ 88,493 $ 1,321 $ 394,090 Real estate construction 30,395 5,473 35,868 Real estate multi-family 47,264 16,664 63,928 Real estate 1 to 4 family 151,159 21,121 172,280 Commercial & industrial 27,817 12,026 39,843 Consumer 1,497 1,497 Gross loans 562,408 143,777 1,321 707,506 Net deferred loan fees (678 ) (678 ) Allowance for loan losses (9,940 ) (9,940 ) Net loans $ 551,790 $ 143,777 $ 1,321 $ 696,888 (Dollar amounts in thousands) Total FNB Balance Bancorp December 31, December 31, 2014 Originated PNCI PCI 2014 Commercial real estate $ 285,252 $ 31,852 $ 1,323 $ 318,427 Real estate construction 37,827 1,944 39,771 Real estate multi-family 43,379 10,445 53,824 Real estate 1 to 4 family 123,522 5,210 128,732 Commercial & industrial 42,551 9,111 51,662 Consumer 1,448 1,448 Gross loans 533,979 58,562 1,323 593,864 Net deferred loan fees (449 ) (449 ) Allowance for loan losses (9,700 ) (9,700 ) Net loans $ 523,830 $ 58,562 $ 1,323 $ 583,715 |
Schedule of Allowance for Credit Losses | Allowance for Credit Losses For the Three Months Ended September 30, 2015 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real estate Construction family 4 family & industrial Consumer Total Allowance for credit losses Beginning balance $ 6,027 $ 697 $ 198 $ 2,014 $ 848 $ 52 $ 9,836 Charge-offs (23 ) (23 ) Recoveries 15 7 26 4 52 Provision (67 ) (49 ) (10 ) 289 (73 ) (15 ) 75 Ending balance $ 5,975 648 188 2,310 $ 778 $ 41 $ 9,940 Ending balance individually evaluated for impairment $ 126 $ $ $ 522 $ 224 $ $ 872 Ending balance: collectively evaluated for impairment $ 5,849 $ 648 $ 188 $ 1,788 $ 554 $ 41 $ 9,068 Allowance for Credit Losses For the Nine Months Ended September 30, 2015 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real estate Construction family 4 family & industrial Consumer Total Allowance for credit losses Beginning balance $ 5,549 $ 849 $ 206 $ 1,965 $ 1,073 $ 58 $ 9,700 Charge-offs (45 ) (23 ) (11 ) (79 ) Recoveries 37 8 45 4 94 Provision 389 (201 ) (18 ) 382 (317 ) (10 ) 225 Ending balance $ 5,975 $ 648 $ 188 $ 2,310 $ 778 $ 41 $ 9,940 Ending balance: individually evaluated for impairment $ 126 $ $ $ 522 $ 224 $ $ 872 Ending balance: collectively evaluated for impairment $ 5,849 $ 648 $ 188 $ 1,788 $ 554 $ 41 $ 9,068 Allowance for Credit Losses As of and For the Year Ended December 31, 2014 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real estate Construction family 4 family & industrial Consumer Total Allowance for credit losses Beginning balance $ 5,763 $ 734 $ 293 $ 1,788 $ 1,237 $ 64 $ 9,879 Charge-offs (83 ) (183 ) (62 ) (28 ) (26 ) (382 ) Recoveries 1,062 3 154 4 1,223 Provision (1,193 ) 298 (87 ) 236 (290 ) 16 (1,020 ) Ending balance $ 5,549 $ 849 $ 206 $ 1,965 $ 1,073 $ 58 $ 9,700 Ending balance: individually evaluated for impairment $ 101 $ $ $ 432 $ 225 $ 8 $ 766 Ending balance: collectively evaluated for impairment $ 5,448 $ 849 $ 206 $ 1,533 $ 848 $ 50 $ 8,934 Allowance for Credit Losses For the Three Months Ended September 30, 2014 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real estate Construction family 4 family & industrial Consumer Total Allowance for credit losses Beginning balance $ 6,215 $ 717 $ 465 $ 2,250 $ 1,166 $ 46 $ 10,859 Provision 495 (150 ) (202 ) (193 ) 27 23 Charge-offs (83 ) (17 ) (6 ) (106 ) Recoveries 5 1 14 1 21 Ending balance $ 6,632 $ 567 $ 263 $ 2,058 $ 1,190 $ 64 $ 10,774 Ending balance: individually evaluated for impairment $ 111 $ $ $ 429 $ 177 $ $ 717 Ending balance: collectively evaluated for impairment $ 6,521 $ 567 $ 263 $ 1,629 $ 1,013 $ 64 $ 10,057 Allowance for Credit Losses For the Nine Months Ended September 30, 2014 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real estate Construction family 4 family & industrial Consumer Total Allowance for credit losses Beginning balance $ 5,763 $ 734 $ 293 $ 1,788 $ 1,237 $ 64 $ 9,879 Provision (105 ) 16 (30 ) 330 (158 ) 22 75 Charge-offs (83 ) (183 ) (62 ) (28 ) (26 ) (382 ) Recoveries 1,057 2 139 4 1,202 Ending balance $ 6,632 $ 567 $ 263 $ 2,058 $ 1,190 $ 64 $ 10,774 Ending balance: individually evaluated for impairment $ 111 $ $ $ 429 $ 177 $ $ 717 Ending balance: collectively evaluated for impairment $ 6,521 $ 567 $ 263 $ 1,629 $ 1,013 $ 64 $ 10,057 |
Schedule of Recorded Investment in Loans | Recorded Investment in Loans at September 30, 2015 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real Estate Construction family 4 family & industrial Consumer Total Loans: Ending balance $ 394,090 $ 35,868 $ 63,928 $ 172,280 $ 39,843 $ 1,497 $ 707,506 Ending balance: individually evaluated for impairment $ 9,501 $ 2,162 $ $ 4,857 $ 1,813 $ $ 18,333 Ending balance: collectively evaluated for impairment $ 384,589 $ 33,706 $ 63,928 $ 167,423 $ 38,030 $ 1,497 $ 689,173 Recorded Investment in Loans at December 31, 2014 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real Estate Construction family 4 family & industrial Consumer Total Loans: Ending balance $ 318,427 $ 39,771 $ 53,824 $ 128,732 $ 51,662 $ 1,448 $ 593,864 Ending balance: individually evaluated for impairment $ 9,530 $ 2,373 $ $ 4,333 $ 2,315 $ 64 $ 18,615 Ending balance: collectively evaluated for impairment $ 308,897 $ 37,398 $ 53,824 $ 124,399 $ 49,347 $ 1,384 $ 575,249 Recorded Investment in Loans at September 30, 2014 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real Estate Construction family 4 family & industrial Consumer Total Loans: Ending balance $ 320,695 $ 34,701 $ 53,721 $ 120,233 $ 48,916 $ 1,483 $ 579,749 Ending balance: individually evaluated for impairment $ 10,158 $ 2,378 $ $ 4,292 $ 2,170 $ $ 18,998 Ending balance: collectively evaluated for impairment $ 310,537 $ 32,323 $ 53,721 $ 115,941 $ 46,746 $ 1,483 $ 560,751 |
Schedule of Impaired Loans Allowance | Impaired Loans As of and for the nine months ended September 30, 2015 Unpaid Average (Dollar amounts in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no related allowance recorded Commercial real estate $ 4,392 $ 5,271 $ $ 4,867 $ 217 Commercial real estate construction 2,162 2,345 2,359 100 Real estate - multi family Residential - 1 to 4 family 1,475 1,476 1,482 49 Commercial and industrial 528 782 4,410 27 Total 8,557 9,874 13,118 393 With an allowance recorded Commercial real estate $ 5,109 $ 5,113 $ 126 $ 5,162 $ 196 Commercial real estate construction Residential - 1 to 4 family 3,382 2,972 522 3,202 96 Commercial and industrial 1,285 1,539 224 1,489 5 Consumer Total 9,776 9,624 872 9,853 297 Total Commercial real estate $ 9,501 $ 10,384 $ 126 $ 10,029 $ 413 Commercial real estate construction 2,162 2,345 2,359 100 Real estate - multi family Residential - 1 to 4 family 4,857 4,448 522 4,684 145 Commercial and industrial 1,813 2,321 224 5,899 32 Consumer Grand total $ 18,333 $ 19,498 $ 872 $ 22,971 $ 690 Impaired Loans As of and for the year ended December 31, 2014 Unpaid Average (Dollar amounts in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no related allowance recorded Commercial real estate $ 4,462 $ 5,333 $ $ 4,473 $ 304 Commercial real estate construction 2,373 2,556 1,846 150 Residential- 1 to 4 family 1,594 1,737 1,379 67 Commercial and industrial 582 939 788 54 Total 9,011 10,565 8,486 575 With an allowance recorded Commercial real estate $ 5,068 $ 5,071 $ 101 $ 5,127 $ 258 Residential- 1 to 4 family 2,739 2,754 432 2,759 111 Commercial and industrial 1,733 2,100 225 1,907 33 Consumer 64 64 8 67 5 Total 9,604 9,989 766 9,860 407 Total Commercial real estate $ 9,530 $ 10,404 $ 101 $ 9,600 $ 562 Commercial real estate construction 2,373 2,556 1,846 150 Residential- 1 to 4 family 4,333 4,491 432 4,138 178 Commercial and industrial 2,315 3,039 225 2,695 87 Consumer 64 64 8 67 5 Grand total $ 18,615 $ 20,554 $ 766 $ 18,346 $ 982 |
Schedule of Loans On Nonaccrual Status | Loans on Nonaccrual Status as of (Dollar amounts in thousands) September 30, December 31, 2015 2014 Commercial real estate $ 2,094 $ 2,111 Real estate - construction Real estate 1 to 4 family 1,285 1,181 Commercial and industrial 1,813 2,292 Consumer 64 Total $ 5,192 $ 5,648 |
Troubled Debt Restructurings | Total troubled debt restructured loans outstanding at (dollars in thousands) September 30, 2015 December 31, 2014 Non- Non- Accrual accrual Total Accrual accrual Total status status modifications status status modifications Commercial real estate $ 7,265 $ 2,081 $ 9,346 $ 7,407 $ 2,091 $ 9,498 Real Estate construction 1,291 1,291 1,304 1,304 Real estate 1 to 4 family 3,596 3,596 3,153 508 3,661 Commercial & industrial 1,608 1,608 294 1,760 2,054 Total $ 12,152 $ 3,689 $ 15,841 $ 12,158 $ 4,359 $ 16,517 |
Schedule of Short-term Debt Modifications | Modifications For the nine months ended September 30, 2015 Pre- Post- Modification Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment (Dollar amounts in thousands) Real estate 1 to 4 family 1 $ 474 $ 474 Total 1 $ 474 $ 474 Modifications For the nine months ended September 30, 2014 Pre- Post- Modification Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment (Dollar amounts in thousands) Real estate 1 to 4 family 1 $ 575 $ 569 Commercial real estate 3 1,454 1,449 Total 4 $ 2,029 $ 2,018 |
Schedule Age Analysis Of Past Due Loans | Age Analysis of Past Due Loans As of September 30, 2015 (Dollar amounts in thousands) 30-59 60-89 Days Days Over Total Past Past 90 Past Total Originated Due Due Days Due Current Loans Commercial real estate $ $ $ $ $ 304,276 $ 304,276 Real estate construction 713 713 29,682 30,395 Real estate multi family 47,264 47,264 Real estate-1 to 4 family 611 611 150,548 151,159 Commercial and industrial 1,813 1,813 26,004 27,817 Consumer 1,497 1,497 Total $ $ 713 $ 2,424 $ 3,137 $ 559,271 $ 562,408 Purchased Not credit impaired Commercial real estate $ 531 $ 3,778 $ $ 4,309 $ 84,184 $ 88,493 Real estate construction 5,473 5,473 Real estate multi-family 16,664 16,664 Real estate-1 to 4 family 14 400 414 20,707 21,121 Commercial and industrial 12,026 12,026 Total $ 545 $ 3,778 $ 400 $ 4,723 $ 139,054 $ 143,777 Purchased Credit impaired Commercial real estate $ $ $ $ $ 1,321 $ 1,321 Real estate construction Real estate multi-family Real estate-1 to 4 family Commercial and industrial Consumer Total $ $ $ $ $ 1,321 $ 1,321 Age Analysis of Past Due Loans As of December 31, 2014 (Dollar amounts in thousands) 30-59 60-89 Days Days Over Total Past Past 90 Past Total Originated Due Due Days Due Current Loans Commercial real estate $ 8 $ 879 $ $ 887 $ 284,365 $ 285,252 Real estate construction 708 708 37,119 37,827 Real estate multi family 3,575 3,575 39,804 43,379 Real estate 1 to 4 family 330 200 1,112 1,642 121,880 123,522 Commercial & industrial 775 73 1,710 2,558 39,993 42,551 Consumer 64 64 1,384 1,448 Total $ 4,688 $ 1,860 $ 2,886 $ 9,434 $ 524,545 $ 533,979 Purchased Not credit impaired Commercial real estate $ $ $ $ 31,852 $ 31,852 Real estate construction 1,944 1,944 Real estate multi-family 10,445 10,445 Real estate 1 to 4 family 400 400 4,810 5,210 Commercial & industrial 9,111 9,111 Total $ $ 400 $ $ 400 $ 58,162 $ 58,562 Purchased Credit impaired Commercial real estate $ $ $ $ $ 1,323 $ 1,323 Real estate construction Real estate multi-family Real estate 1 to 4 family Commercial & industrial Total $ $ $ $ $ 1,323 $ 1,323 |
Schedule Credit Quality Indicators | Credit Quality Indicators As of September 30, 2015 (Dollar amounts in thousands) Special Sub- Total Originated Pass mention standard Doubtful loans Commercial real estate $ 298,182 $ 1,862 $ 4,232 $ $ 304,276 Real estate construction 29,333 1,062 30,395 Real estate multi-family 47,264 47,264 Real estate-1 to 4 family 150,346 813 151,159 Commercial and industrial 27,211 441 165 27,817 Consumer loans 1,497 1,497 Totals $ 553,833 $ 1,862 $ 6,548 $ 165 $ 562,408 Purchased Not credit impaired Commercial real estate $ 66,703 $ 7,745 $ 14,031 $ 14 $ 88,493 Real estate construction 5,473 5,473 Real estate multi-family 16,664 16,664 Real estate-1 to 4 family 20,720 401 21,121 Commercial and industrial 11,931 95 12,026 Total $ 121,491 $ 7,745 $ 14,527 $ 14 $ 143,777 Credit impaired Commercial real estate $ 1,321 Total $ 1,321 Credit Quality Indicators As of December 31, 2014 (Dollar amounts in thousands) Special Sub- Total Originated Pass mention standard Doubtful loans Commercial real estate $ 281,216 $ 1,913 $ 2,031 $ 92 $ 285,252 Real estate construction 36,692 1,135 37,827 Real estate multi-family 43,379 43,379 Real estate 1 to 4 family 122,499 1,023 123,522 Commercial & industrial 41,394 1,157 42,551 Consumer loans 1,384 64 1,448 Totals $ 526,564 $ 1,913 $ 5,410 $ 92 $ 533,979 Purchased Not credit impaired Commercial real estate $ 26,009 $ $ 5,843 $ $ 31,852 Real estate construction 1,944 1,944 Real estate multi-family 10,445 10,445 Real estate 1 to 4 family 4,810 400 5,210 Commercial & industrial 9,111 9,111 Total $ 52,319 $ $ 5,843 $ 400 $ 58,562 Purchased Credit impaired Commercial real estate $ 1,323 Total $ 1,323 |
G. FAIR VALUE MEASUREMENT (Tabl
G. FAIR VALUE MEASUREMENT (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
FAIR VALUE MEASUREMENT TABLES {1} | |
Schedule of assets measured at fair value on a recurring basis | Fair Value Measurements (Dollar amounts in thousands) at September 30, 2015, Using Quoted Prices in Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets Inputs Inputs Description 9/30/2015 (Level 1) (Level 2) (Level 3) U. S. Treasury securities $ 6,079 $ 6,079 $ $ Obligations of U.S. Government agencies 80,153 80,153 Mortgage-backed securities 63,496 63,496 Obligations of states and political subdivisions 125,028 125,028 Corporate debt 40,804 40,804 Total assets measured at fair value $ 315,560 $ 6,079 $ 309,481 $ Fair Value Measurements (Dollar amounts in thousands) at December 31, 2014, Using Quoted Prices in Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets Inputs Inputs Description 12/31/2014 (Level 1) (Level 2) (Level 3) U. S. Treasury securities $ 3,958 $ 3,958 $ $ Obligations of U.S. Government agencies 63,062 63,062 Mortgage-backed securities 78,417 78,417 Obligations of states and political subdivisions 84,542 84,542 Corporate debt 34,902 34,902 Total assets measured at fair value $ 264,881 $ 3,958 $ 260,923 $ |
Schedule of assets measured at fair value on a non-recurring basis | Fair Value Measurements (Dollar amounts in thousands) at September 30, 2015, Using Quoted Prices in Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets Inputs Inputs Description 9/30/2015 (Level 1) (Level 2) (Level 3) Impaired loans: Commercial real estate $ 123 $ $ $ 123 Residential-1 to 4 family 238 238 Commercial and industrial 1,016 1,016 Other real estate owned 838 838 Total impaired assets measured at fair value $ 2,215 $ $ $ 2,215 Fair Value Measurements (Dollar amounts in thousands) at December 31, 2014, Using Quoted Prices in Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets Inputs Inputs Description 12/31/2014 (Level 1) (Level 2) (Level 3) Impaired loans: Commercial real estate $ 381 $ $ $ 381 Residential-1 to 4 family 323 323 Commercial and industrial 1,472 1,472 Consumer 56 56 Other real estate owned 763 763 Total impaired assets measured at fair value $ 2,995 $ $ $ 2,995 |
Schedule of estimated fair value of financial instruments | September 30, 2015 Carrying Fair Fair value measurements (Dollar amounts in thousands) amount value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 40,282 $ 40,282 $ 40,282 Interest-bearing time deposits with financial institutions 1,246 1,250 $ 1,250 Securities available for sale 315,560 315,560 6,079 309,481 Loans 707,506 709,391 $ 709,391 Other equity securities 6,748 6,748 6,748 Accrued interest receivable 4,326 4,326 4,326 Financial liabilities: Deposits 989,365 989,845 989,845 Note payable 5,100 5,100 5,100 Accrued interest payable 237 237 237 Off-balance-sheet liabilities: Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit 1,707 1,707 December 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 $ 14,978 $ 14,978 $ 14,978 Interest-bearing time deposits with financial institutions 2,784 2,813 $ 2,813 Securities available for sale 264,881 264,881 3,958 260,923 Loans 593,864 594,524 $ 594,524 Other equity securities 5,769 5,769 5,769 Accrued interest receivable 3,725 3,725 3,725 Financial liabilities: Deposits 792,194 792,472 792,472 Federal Home Loan Bank advances 9,000 9,000 9,000 Note payable 5,550 5,550 5,550 Accrued interest payable 182 182 182 Off-balance-sheet liabilities: Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit 1,449 1,449 |
H. ACQUISITION OF AMERICA CAL20
H. ACQUISITION OF AMERICA CALIFORNIA BANK (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Estimated fair values of the assets acquired and liabilities assumed | America California Bank September 4, 2015 (In thousands) Assets Cash and due from banks $ 3,019 Interest-bearing time deposits with financial institutions 7,836 Other equity securities 679 Loans 92,969 Premises and equipment, net 62 Bank owned life insurance 2,971 Accrued interest receivable 313 Prepaid expense 1,808 Goodwill 2,739 Other assets 2,731 Total Assets $ 115,127 Liabilities Deposits: Demand deposits 14,500 NOW accounts 6,122 Savings and money market deposits 42,680 Time deposits 26,824 Total deposits 90,126 Accrued expenses and other liabilities 3,501 Total Liabilities 93,627 Merger consideration (cash) $ 21,500 America California Bank tangible Stockholders Equity $ 18,440 Adjustments to reflect assets acquired and liabilities assumed at fair value: Loans 2,178 Core deposit intangible 727 Certificates of deposit (243 ) Accrued expenses (1,832 ) Other borrowings (86 ) Subtotal net fair value adjustments 744 Deferred tax liability related to purchase (423 ) Total fair value adjustments $ 321 Fair value of Net Assets Acquired 18,761 Merger Consideration 21,500 Less: Fair Value of Net Assets Acquired (18,761 ) Goodwill 2,739 |
Schedule of Acquisition Related Expense | Acquisition Related Expense (Amounts in thousands) Occupancy $ 345 Data processing 515 Legal and accounting 150 D & O insurance -tail end coverage 35 Total $ 1,045 |
Pro forma consolidated condensed statements of earnings | Nine months ended 9/30/2015 9/30/2014 As Reported As Adjusted As Reported As Adjusted Net interest income after provision for loan losses $ 26,236 $ 29,289 $ 25,907 $ 29,271 Noninterest income 3,367 3,518 3,067 3,263 Noninterest expense 21,211 23,952 21,107 23,878 Earnings before provision for income tax expense 8,392 8,855 7,867 8,656 Provision for income tax expense 2,283 2,467 2,581 2,895 Net earnings $ 6,109 $ 6,388 $ 5,286 $ 5,761 Earnings per share data: Basic $ 1.42 $ 1.49 $ 1.25 $ 1.36 Diluted $ 1.38 $ 1.45 $ 1.21 $ 1.32 Weighted average shares outstanding: Basic 4,293 4,293 4,222 4,222 Diluted 4,414 4,414 4,364 4,364 |
B. STOCK OPTION PLANS (Detail N
B. STOCK OPTION PLANS (Detail Narratives) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation [Abstract] | ||||
Compensation Expense | $ 61 | $ 69 | $ 183 | $ 208 |
Recognized income tax benefit | 0 | $ 24 | 154 | 294 |
Intrinsic Value Options Exercised | 671 | $ 848 | ||
Intrinsic Value Options Exercisable | 3,042 | 3,042 | ||
Unrecognized Compensation Expense Nonvested Options | $ 569 | $ 569 | ||
Non-vested options weighted average period | 3 years 1 month 6 days |
C. EARNINGS PER SHARE CALCULA22
C. EARNINGS PER SHARE CALCULATION (Dollar amounts in thousands) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings per share data: | ||||
Net earnings | $ 2,239 | $ 1,823 | $ 6,109 | $ 5,286 |
Dividends and discount accretion on preferred stock | 0 | 0 | 0 | 170 |
Net earnings available to common shareholders | $ 2,239 | $ 1,823 | $ 6,109 | $ 5,116 |
Average number of shares outstanding | 4,309 | 4,250 | 4,293 | 4,222 |
Effect of dilutive options | $ 113 | $ 134 | $ 121 | $ 142 |
Average number of shares outstanding used to calculate diluted earnings per share | 4,422 | 4,384 | 4,414 | 4,364 |
Anti-dilutive options not included | 93 | 65 | 94 | 65 |
D. SECURITIES AVAILABLE FOR S23
D. SECURITIES AVAILABLE FOR SALE, Amortized cost and fair values (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Available for sale securities, Amortized Cost | $ 310,827 | $ 262,223 |
Available for sale securities, Unrealized Gains | 5,101 | 3,994 |
Available for sale securities, Unrealized Losses | (368) | (1,336) |
Available for sale securities, Estimated Fair Value | 315,560 | 264,881 |
U.S. Treasury securities | ||
Available for sale securities, Amortized Cost | 5,996 | 3,975 |
Available for sale securities, Unrealized Gains | 83 | 12 |
Available for sale securities, Unrealized Losses | 0 | (29) |
Available for sale securities, Estimated Fair Value | 6,079 | 3,958 |
Obligations of U.S. government agencies | ||
Available for sale securities, Amortized Cost | 79,446 | 63,090 |
Available for sale securities, Unrealized Gains | 719 | 270 |
Available for sale securities, Unrealized Losses | (12) | (298) |
Available for sale securities, Estimated Fair Value | 80,153 | 63,062 |
Mortgage-backed securities | ||
Available for sale securities, Amortized Cost | 62,221 | 78,076 |
Available for sale securities, Unrealized Gains | 1,355 | 1,002 |
Available for sale securities, Unrealized Losses | (80) | (661) |
Available for sale securities, Estimated Fair Value | 63,496 | 78,417 |
Obligations of states and political subdivisions | ||
Available for sale securities, Amortized Cost | 122,607 | 82,151 |
Available for sale securities, Unrealized Gains | 2,652 | 2,534 |
Available for sale securities, Unrealized Losses | (231) | (143) |
Available for sale securities, Estimated Fair Value | 125,028 | 84,542 |
Corporate debt | ||
Available for sale securities, Amortized Cost | 40,557 | 34,931 |
Available for sale securities, Unrealized Gains | 292 | 176 |
Available for sale securities, Unrealized Losses | (45) | (205) |
Available for sale securities, Estimated Fair Value | $ 40,804 | $ 34,902 |
D. SECURITIES AVAILABLE FOR S24
D. SECURITIES AVAILABLE FOR SALE, Analysis of gross unrealized losses (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Less than 12 months, Total Fair Value | $ 41,770 | $ 44,977 |
Less than 12 months, Unrealized Loss | (233) | (227) |
12 months or more, Total Fair Value | 23,279 | 68,128 |
12 months or more, Unrealized Loss | (135) | (1,109) |
Total Fair Value | 65,049 | 113,105 |
Total Unrealized Loss | (368) | (1,336) |
U.S. Treasury securities | ||
Less than 12 months, Total Fair Value | 0 | 0 |
Less than 12 months, Unrealized Loss | 0 | 0 |
12 months or more, Total Fair Value | 0 | 2,015 |
12 months or more, Unrealized Loss | 0 | (29) |
Total Fair Value | 0 | 2,015 |
Total Unrealized Loss | 0 | (29) |
Obligations of U.S. government agencies | ||
Less than 12 months, Total Fair Value | 3,987 | 13,178 |
Less than 12 months, Unrealized Loss | (4) | (43) |
12 months or more, Total Fair Value | 5,035 | 19,116 |
12 months or more, Unrealized Loss | (8) | (255) |
Total Fair Value | 9,022 | 32,294 |
Total Unrealized Loss | (12) | (298) |
Mortgage-backed securities | ||
Less than 12 months, Total Fair Value | 0 | 5,056 |
Less than 12 months, Unrealized Loss | 0 | (10) |
12 months or more, Total Fair Value | 14,416 | 36,382 |
12 months or more, Unrealized Loss | (80) | (651) |
Total Fair Value | 14,416 | 41,438 |
Total Unrealized Loss | (80) | (661) |
Obligations of states and political subdivisions | ||
Less than 12 months, Total Fair Value | 27,308 | 8,678 |
Less than 12 months, Unrealized Loss | (200) | (49) |
12 months or more, Total Fair Value | 1,842 | 5,696 |
12 months or more, Unrealized Loss | (31) | (94) |
Total Fair Value | 29,150 | 14,374 |
Total Unrealized Loss | (231) | (143) |
Corporate debt | ||
Less than 12 months, Total Fair Value | 10,475 | 18,065 |
Less than 12 months, Unrealized Loss | (29) | (125) |
12 months or more, Total Fair Value | 1,986 | 4,919 |
12 months or more, Unrealized Loss | (16) | (80) |
Total Fair Value | 12,461 | 22,984 |
Total Unrealized Loss | $ (45) | $ (205) |
D. SECURITIES AVAILABLE FOR S25
D. SECURITIES AVAILABLE FOR SALE, Amortized Cost and Carrying Value (Details) $ in Thousands | Sep. 30, 2015USD ($) |
SECURITIES AVAILABLE FOR SALE - Summary of Investments Amortized Cost and Carrying Value | |
Due in one year or less, Amortized Cost | $ 12,762 |
Due after one through five years, Amortized Cost | 139,399 |
Due after five through ten years, Amortized Cost | 130,249 |
Due after ten years, Amortized Cost | 28,417 |
Equity securities, Amortized Cost | 310,827 |
Due in one year or less, Estimated Fair Value | 12,853 |
Due after one through five years, Estimated Fair Value | 141,174 |
Due after five through ten years, Estimated Fair Value | 132,506 |
Due after ten years, Estimated Fair Value | 29,027 |
Equity securities, Estimated Fair Value | $ 315,560 |
D. SECURITIES AVAILABLE FOR S26
D. SECURITIES AVAILABLE FOR SALE (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
D. Securities Available For Sale Details Narrative | ||||
Gross realized gains | $ 29 | $ 112 | $ 250 | $ 151 |
Sell of securities | 3,187 | 5,219 | 11,463 | 10,505 |
Gross realized losses | 0 | $ 12 | 0 | $ 12 |
Amortized cost | 102,182 | 102,182 | ||
Fair value of pledged as collateral for public deposits | $ 103,776 | $ 103,776 |
E. LOANS, Summary of Loan as fo
E. LOANS, Summary of Loan as follows (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Gross loans | $ 707,506 | $ 593,864 |
Net deferred loan fees | (678) | (449) |
Allowance for loan losses | (9,940) | (9,700) |
Net loans | 696,888 | 583,715 |
Commercial real estate | ||
Gross loans | 394,090 | 318,427 |
Real estate construction | ||
Gross loans | 35,868 | 39,771 |
Real Estate Multi family | ||
Gross loans | 63,928 | 53,824 |
Real Estate 1 to 4 family | ||
Gross loans | 172,280 | 128,732 |
Commercial and industrial | ||
Gross loans | 39,843 | 51,662 |
Consumer | ||
Gross loans | 1,497 | 1,448 |
FNB Bancorp Originated | ||
Gross loans | 562,408 | 533,979 |
Net deferred loan fees | (678) | (449) |
Allowance for loan losses | (9,940) | (9,700) |
Net loans | 551,790 | 523,830 |
FNB Bancorp Originated | Commercial real estate | ||
Gross loans | 304,276 | 285,252 |
FNB Bancorp Originated | Real estate construction | ||
Gross loans | 30,395 | 37,827 |
FNB Bancorp Originated | Real Estate Multi family | ||
Gross loans | 47,264 | 43,379 |
FNB Bancorp Originated | Real Estate 1 to 4 family | ||
Gross loans | 151,159 | 123,522 |
FNB Bancorp Originated | Commercial and industrial | ||
Gross loans | 27,817 | 42,551 |
FNB Bancorp Originated | Consumer | ||
Gross loans | 1,497 | 1,448 |
PNCI | ||
Gross loans | 143,777 | 58,562 |
Net deferred loan fees | 0 | 0 |
Allowance for loan losses | 0 | 0 |
Net loans | 143,777 | 58,562 |
PNCI | Commercial real estate | ||
Gross loans | 88,493 | 31,852 |
PNCI | Real estate construction | ||
Gross loans | 5,473 | 1,944 |
PNCI | Real Estate Multi family | ||
Gross loans | 16,664 | 10,445 |
PNCI | Real Estate 1 to 4 family | ||
Gross loans | 21,121 | 5,210 |
PNCI | Commercial and industrial | ||
Gross loans | 12,026 | 9,111 |
PNCI | Consumer | ||
Gross loans | 0 | 0 |
PCI | ||
Gross loans | 1,321 | 1,323 |
Net deferred loan fees | 0 | 0 |
Allowance for loan losses | 0 | 0 |
Net loans | 1,321 | 1,323 |
PCI | Commercial real estate | ||
Gross loans | 1,321 | 1,323 |
PCI | Real estate construction | ||
Gross loans | 0 | 0 |
PCI | Real Estate Multi family | ||
Gross loans | 0 | 0 |
PCI | Real Estate 1 to 4 family | ||
Gross loans | 0 | 0 |
PCI | Commercial and industrial | ||
Gross loans | 0 | 0 |
PCI | Consumer | ||
Gross loans | $ 0 | $ 0 |
E. LOANS, Allowance for Credit
E. LOANS, Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Commercial and Real estate | ||||
Allowance for credit losses | ||||
Beginning balance | $ 6,027 | $ 6,215 | $ 5,549 | $ 5,763 |
Charge-offs | 0 | 495 | 0 | (105) |
Recoveries | 15 | (83) | 37 | (83) |
Provision | (67) | 5 | 389 | 1,057 |
Ending balance | 5,975 | 6,632 | 5,975 | 6,632 |
Ending balance: individually evaluated for impairment | 126 | 111 | 126 | 111 |
Ending balance: collectively evaluated for impairment | 5,849 | 6,521 | 5,849 | 6,521 |
Real Estate Construction | ||||
Allowance for credit losses | ||||
Beginning balance | 697 | 717 | 849 | 734 |
Charge-offs | 0 | (150) | 0 | 16 |
Recoveries | 0 | 0 | 0 | (183) |
Provision | (49) | 0 | (201) | 0 |
Ending balance | 648 | 567 | 648 | 567 |
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | 648 | 567 | 648 | 567 |
Real Estate Multi family | ||||
Allowance for credit losses | ||||
Beginning balance | 198 | 465 | 206 | 293 |
Charge-offs | 0 | (202) | 0 | (30) |
Recoveries | 0 | 0 | 0 | 0 |
Provision | (10) | 0 | (18) | 0 |
Ending balance | 188 | 263 | 188 | 263 |
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | 188 | 263 | 188 | 263 |
Real Estate 1 to 4 family | ||||
Allowance for credit losses | ||||
Beginning balance | 2,014 | 2,250 | 1,965 | 1,788 |
Charge-offs | 0 | (193) | (45) | 330 |
Recoveries | 7 | 0 | 8 | (62) |
Provision | 289 | 1 | 382 | 2 |
Ending balance | 2,310 | 2,058 | 2,310 | 2,058 |
Ending balance: individually evaluated for impairment | 522 | 429 | 522 | 429 |
Ending balance: collectively evaluated for impairment | 1,788 | 1,629 | 1,788 | 1,629 |
Commercial and industrial | ||||
Allowance for credit losses | ||||
Beginning balance | 848 | 1,166 | 1,073 | 1,237 |
Charge-offs | (23) | 27 | (23) | (158) |
Recoveries | 26 | (17) | 45 | (28) |
Provision | (73) | 14 | (317) | 139 |
Ending balance | 778 | 1,190 | 778 | 1,190 |
Ending balance: individually evaluated for impairment | 224 | 177 | 224 | 177 |
Ending balance: collectively evaluated for impairment | 554 | 1,013 | 554 | 1,013 |
Consumer | ||||
Allowance for credit losses | ||||
Beginning balance | 52 | 46 | 58 | 64 |
Charge-offs | 0 | 23 | (11) | 22 |
Recoveries | 4 | (6) | 4 | (26) |
Provision | (15) | 1 | (10) | 4 |
Ending balance | 41 | 64 | 41 | 64 |
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | 41 | 64 | 41 | 64 |
Total | ||||
Allowance for credit losses | ||||
Beginning balance | 9,836 | 10,859 | 9,700 | 9,879 |
Charge-offs | (23) | 0 | (79) | 75 |
Recoveries | 52 | (106) | 94 | (382) |
Provision | 75 | 21 | 225 | 1,202 |
Ending balance | 9,940 | 10,774 | 9,940 | 10,774 |
Ending balance: individually evaluated for impairment | 872 | 717 | 872 | 717 |
Ending balance: collectively evaluated for impairment | $ 9,068 | $ 10,057 | $ 9,068 | $ 10,057 |
E. LOANS, Recorded Investment i
E. LOANS, Recorded Investment in Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 |
Commercial and Real estate | |||
Ending balance | $ 394,090 | $ 318,427 | $ 320,695 |
Ending balance: individually evaluated for impairment | 9,501 | 9,530 | 10,158 |
Ending balance: collectively evaluated for impairment | 384,589 | 308,897 | 310,537 |
Real Estate Construction | |||
Ending balance | 35,868 | 39,771 | 34,701 |
Ending balance: individually evaluated for impairment | 2,162 | 2,373 | 2,378 |
Ending balance: collectively evaluated for impairment | 33,706 | 37,398 | 32,323 |
Real Estate Multi family | |||
Ending balance | 63,928 | 53,824 | 53,721 |
Ending balance: individually evaluated for impairment | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | 63,928 | 53,824 | 53,721 |
Real Estate 1 to 4 family | |||
Ending balance | 172,280 | 128,732 | 120,233 |
Ending balance: individually evaluated for impairment | 4,857 | 4,333 | 4,292 |
Ending balance: collectively evaluated for impairment | 167,423 | 124,399 | 115,941 |
Commercial and industrial | |||
Ending balance | 39,843 | 51,662 | 48,916 |
Ending balance: individually evaluated for impairment | 1,813 | 2,315 | 2,170 |
Ending balance: collectively evaluated for impairment | 38,030 | 49,347 | 46,746 |
Consumer | |||
Ending balance | 1,497 | 1,448 | 1,483 |
Ending balance: individually evaluated for impairment | 0 | 64 | 0 |
Ending balance: collectively evaluated for impairment | 1,497 | 1,384 | 1,483 |
Total | |||
Ending balance | 707,506 | 593,864 | 579,749 |
Ending balance: individually evaluated for impairment | 18,333 | 18,615 | 18,998 |
Ending balance: collectively evaluated for impairment | $ 689,173 | $ 575,249 | $ 560,751 |
E. LOANS, Impaired Loans Allowa
E. LOANS, Impaired Loans Allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
With no related allowance, Recorded Investment | $ 8,557 | $ 8,557 | $ 9,011 | ||
With no related allowance, Unpaid Principal Balance | 9,874 | 9,874 | 10,565 | ||
With no related allowance recorded, Related Allowance | 0 | 0 | |||
With no related allowance, Average Recorded Investment | 13,118 | 8,486 | |||
With no related allowance, Income Recognized | 393 | 575 | |||
With an allowance recorded, Recorded Investment | 9,776 | 9,776 | 9,604 | ||
With an allowance recorded, Unpaid Principal Balance | 9,624 | 9,624 | 9,989 | ||
With an allowance recorded, Related Allowance | 872 | 872 | 766 | ||
With an allowance recorded, Average Impaired Balance | 9,853 | 9,860 | |||
With an allowance recorded, Income Recognized | 297 | 407 | |||
Recorded Investment | 18,333 | 18,333 | 18,615 | ||
Unpaid Principal Balance | 19,498 | 19,498 | 20,554 | ||
Related Allowance | 872 | 872 | 766 | ||
Average Recorded Investment | 22,971 | 18,346 | |||
Income Recognized | 222 | $ 291 | 690 | $ 746 | 982 |
Commercial real estate | |||||
With no related allowance, Recorded Investment | 4,392 | 4,392 | 4,462 | ||
With no related allowance, Unpaid Principal Balance | 5,271 | 5,271 | 5,333 | ||
With no related allowance recorded, Related Allowance | 0 | 0 | |||
With no related allowance, Average Recorded Investment | 4,867 | 4,473 | |||
With no related allowance, Income Recognized | 217 | 304 | |||
With an allowance recorded, Recorded Investment | 5,109 | 5,109 | 5,068 | ||
With an allowance recorded, Unpaid Principal Balance | 5,113 | 5,113 | 5,071 | ||
With an allowance recorded, Related Allowance | 126 | 126 | 101 | ||
With an allowance recorded, Average Impaired Balance | 5,162 | 5,127 | |||
With an allowance recorded, Income Recognized | 196 | 258 | |||
Recorded Investment | 9,501 | 9,501 | 9,530 | ||
Unpaid Principal Balance | 10,384 | 10,384 | 10,404 | ||
Related Allowance | 126 | 126 | 101 | ||
Average Recorded Investment | 10,029 | 9,600 | |||
Income Recognized | 413 | 562 | |||
Commercial real estate construction | |||||
With no related allowance, Recorded Investment | 2,162 | 2,162 | 2,373 | ||
With no related allowance, Unpaid Principal Balance | 2,345 | 2,345 | 2,556 | ||
With no related allowance recorded, Related Allowance | 0 | 0 | |||
With no related allowance, Average Recorded Investment | 2,359 | 1,846 | |||
With no related allowance, Income Recognized | 100 | 150 | |||
With an allowance recorded, Recorded Investment | 0 | 0 | 0 | ||
With an allowance recorded, Unpaid Principal Balance | 0 | 0 | 0 | ||
With an allowance recorded, Related Allowance | 0 | 0 | 0 | ||
With an allowance recorded, Average Impaired Balance | 0 | 0 | |||
With an allowance recorded, Income Recognized | 0 | 0 | |||
Recorded Investment | 2,162 | 2,162 | 2,373 | ||
Unpaid Principal Balance | 2,345 | 2,345 | 2,556 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 2,359 | 1,846 | |||
Income Recognized | 100 | 150 | |||
Real Estate Multi family | |||||
With no related allowance, Recorded Investment | 0 | 0 | 0 | ||
With no related allowance, Unpaid Principal Balance | 0 | 0 | 0 | ||
With no related allowance recorded, Related Allowance | 0 | 0 | |||
With no related allowance, Average Recorded Investment | 0 | 0 | |||
With no related allowance, Income Recognized | 0 | 0 | |||
With an allowance recorded, Recorded Investment | 0 | 0 | 0 | ||
With an allowance recorded, Unpaid Principal Balance | 0 | 0 | 0 | ||
With an allowance recorded, Related Allowance | 0 | 0 | 0 | ||
With an allowance recorded, Average Impaired Balance | 0 | 0 | |||
With an allowance recorded, Income Recognized | 0 | 0 | |||
Recorded Investment | 0 | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 0 | 0 | |||
Income Recognized | 0 | 0 | |||
Real Estate 1 to 4 family | |||||
With no related allowance, Recorded Investment | 1,475 | 1,475 | 1,594 | ||
With no related allowance, Unpaid Principal Balance | 1,476 | 1,476 | 1,737 | ||
With no related allowance recorded, Related Allowance | 0 | 0 | |||
With no related allowance, Average Recorded Investment | 1,482 | 1,379 | |||
With no related allowance, Income Recognized | 49 | 67 | |||
With an allowance recorded, Recorded Investment | 3,382 | 3,382 | 2,739 | ||
With an allowance recorded, Unpaid Principal Balance | 2,972 | 2,972 | 2,754 | ||
With an allowance recorded, Related Allowance | 522 | 522 | 432 | ||
With an allowance recorded, Average Impaired Balance | 3,202 | 2,759 | |||
With an allowance recorded, Income Recognized | 96 | 111 | |||
Recorded Investment | 4,857 | 4,857 | 4,333 | ||
Unpaid Principal Balance | 4,448 | 4,448 | 4,491 | ||
Related Allowance | 522 | 522 | 432 | ||
Average Recorded Investment | 4,684 | 4,138 | |||
Income Recognized | 145 | 178 | |||
Commercial and industrial | |||||
With no related allowance, Recorded Investment | 528 | 528 | 582 | ||
With no related allowance, Unpaid Principal Balance | 782 | 782 | 939 | ||
With no related allowance recorded, Related Allowance | 0 | 0 | |||
With no related allowance, Average Recorded Investment | 4,410 | 788 | |||
With no related allowance, Income Recognized | 27 | 54 | |||
With an allowance recorded, Recorded Investment | 1,285 | 1,285 | 1,733 | ||
With an allowance recorded, Unpaid Principal Balance | 1,539 | 1,539 | 2,100 | ||
With an allowance recorded, Related Allowance | 224 | 224 | 225 | ||
With an allowance recorded, Average Impaired Balance | 1,489 | 1,907 | |||
With an allowance recorded, Income Recognized | 5 | 33 | |||
Recorded Investment | 1,813 | 1,813 | 2,315 | ||
Unpaid Principal Balance | 2,321 | 2,321 | 3,039 | ||
Related Allowance | 224 | 224 | 225 | ||
Average Recorded Investment | 5,899 | 2,695 | |||
Income Recognized | 32 | 87 | |||
Consumer | |||||
With no related allowance, Recorded Investment | 0 | 0 | 0 | ||
With no related allowance, Unpaid Principal Balance | 0 | 0 | 0 | ||
With no related allowance recorded, Related Allowance | 0 | 0 | |||
With no related allowance, Average Recorded Investment | 0 | 0 | |||
With no related allowance, Income Recognized | 0 | 0 | |||
With an allowance recorded, Recorded Investment | 0 | 0 | 64 | ||
With an allowance recorded, Unpaid Principal Balance | 0 | 0 | 64 | ||
With an allowance recorded, Related Allowance | 0 | 0 | 8 | ||
With an allowance recorded, Average Impaired Balance | 0 | 67 | |||
With an allowance recorded, Income Recognized | 0 | 5 | |||
Recorded Investment | 0 | 0 | 64 | ||
Unpaid Principal Balance | 0 | 0 | 64 | ||
Related Allowance | $ 0 | 0 | 8 | ||
Average Recorded Investment | 0 | 67 | |||
Income Recognized | $ 0 | $ 5 |
E. LOANS, Nonaccrual (Details)
E. LOANS, Nonaccrual (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Loans, Nonaccrual Status | $ 5,192 | $ 5,648 |
Commercial real estate | ||
Loans, Nonaccrual Status | 2,094 | 2,111 |
Real Estate 1 to 4 family | ||
Loans, Nonaccrual Status | 1,285 | 1,181 |
Commercial and industrial | ||
Loans, Nonaccrual Status | 1,813 | 2,292 |
Consumer | ||
Loans, Nonaccrual Status | $ 0 | $ 64 |
E. LOANS, Troubled Debt Restruc
E. LOANS, Troubled Debt Restructurings (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Troubled debt restructured loans outstanding, accrual status | $ 12,152 | $ 12,158 |
Troubled debt restructured loans outstanding, nonaccrual status | 3,689 | 4,359 |
Total modifications | 15,841 | 16,517 |
Commercial real estate | ||
Troubled debt restructured loans outstanding, accrual status | 7,265 | 7,407 |
Troubled debt restructured loans outstanding, nonaccrual status | 2,081 | 2,091 |
Total modifications | 9,346 | 9,498 |
Real Estate Construction | ||
Troubled debt restructured loans outstanding, accrual status | 1,291 | 1,304 |
Troubled debt restructured loans outstanding, nonaccrual status | 0 | 0 |
Total modifications | 1,291 | 1,304 |
Real Estate 1 to 4 family | ||
Troubled debt restructured loans outstanding, accrual status | 3,596 | 3,153 |
Troubled debt restructured loans outstanding, nonaccrual status | 0 | 508 |
Total modifications | 3,596 | 3,661 |
Commercial and industrial | ||
Troubled debt restructured loans outstanding, accrual status | 0 | 294 |
Troubled debt restructured loans outstanding, nonaccrual status | 1,608 | 1,760 |
Total modifications | $ 1,608 | $ 2,054 |
E. LOANS, Payment Modification
E. LOANS, Payment Modification (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | |
Number of Modifications | 1 | 4 |
Pre-modification Recorded Investment | $ 474 | $ 2,029 |
Post-modification Recorded Investment | $ 474 | $ 2,018 |
Real Estate 1 to 4 family | ||
Number of Modifications | 1 | 1 |
Pre-modification Recorded Investment | $ 474 | $ 575 |
Post-modification Recorded Investment | $ 474 | $ 569 |
Commercial real estate | ||
Number of Modifications | 3 | |
Pre-modification Recorded Investment | $ 1,454 | |
Post-modification Recorded Investment | $ 1,449 |
E. LOANS, Past due loans (Detai
E. LOANS, Past due loans (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Originated | ||
Past Due, Total | $ 3,137 | $ 9,434 |
Current | 559,271 | 524,545 |
Total Loans | 562,408 | 533,979 |
Originated | Past Due, 30 - 59 days | ||
Past Due, Total | 0 | 4,688 |
Originated | Past Due, 60 - 89 days | ||
Past Due, Total | 713 | 2,886 |
Originated | Past Due, More than 90 days | ||
Past Due, Total | 2,424 | 1,860 |
Originated | Commercial real estate | ||
Past Due, Total | 0 | 887 |
Current | 304,276 | 284,365 |
Total Loans | 304,276 | 285,252 |
Originated | Commercial real estate | Past Due, 30 - 59 days | ||
Past Due, Total | 0 | 8 |
Originated | Commercial real estate | Past Due, 60 - 89 days | ||
Past Due, Total | 0 | 879 |
Originated | Commercial real estate | Past Due, More than 90 days | ||
Past Due, Total | 0 | 0 |
Originated | Real Estate Construction | ||
Past Due, Total | 713 | 708 |
Current | 29,682 | 37,119 |
Total Loans | 30,395 | 37,827 |
Originated | Real Estate Construction | Past Due, 30 - 59 days | ||
Past Due, Total | 0 | 0 |
Originated | Real Estate Construction | Past Due, 60 - 89 days | ||
Past Due, Total | 713 | 708 |
Originated | Real Estate Construction | Past Due, More than 90 days | ||
Past Due, Total | 0 | 0 |
Originated | Real Estate Multi family | ||
Past Due, Total | 0 | 3,575 |
Current | 47,264 | 39,804 |
Total Loans | 47,264 | 43,379 |
Originated | Real Estate Multi family | Past Due, 30 - 59 days | ||
Past Due, Total | 0 | 3,575 |
Originated | Real Estate Multi family | Past Due, 60 - 89 days | ||
Past Due, Total | 0 | 0 |
Originated | Real Estate Multi family | Past Due, More than 90 days | ||
Past Due, Total | 0 | 0 |
Originated | Real Estate 1 to 4 family | ||
Past Due, Total | 611 | 1,642 |
Current | 150,548 | 121,880 |
Total Loans | 151,159 | 123,522 |
Originated | Real Estate 1 to 4 family | Past Due, 30 - 59 days | ||
Past Due, Total | 0 | 330 |
Originated | Real Estate 1 to 4 family | Past Due, 60 - 89 days | ||
Past Due, Total | 0 | 200 |
Originated | Real Estate 1 to 4 family | Past Due, More than 90 days | ||
Past Due, Total | 611 | 1,112 |
Originated | Commercial and industrial | ||
Past Due, Total | 1,813 | 2,558 |
Current | 26,004 | 39,993 |
Total Loans | 27,817 | 42,551 |
Originated | Commercial and industrial | Past Due, 30 - 59 days | ||
Past Due, Total | 0 | 775 |
Originated | Commercial and industrial | Past Due, 60 - 89 days | ||
Past Due, Total | 0 | 73 |
Originated | Commercial and industrial | Past Due, More than 90 days | ||
Past Due, Total | 1,813 | 1,710 |
Originated | Consumer | ||
Past Due, Total | 0 | 64 |
Current | 1,497 | 1,384 |
Total Loans | 1,497 | 1,448 |
Originated | Consumer | Past Due, 30 - 59 days | ||
Past Due, Total | 0 | 0 |
Originated | Consumer | Past Due, 60 - 89 days | ||
Past Due, Total | 0 | 0 |
Originated | Consumer | Past Due, More than 90 days | ||
Past Due, Total | 0 | 64 |
Purchased Not credit impaired | ||
Past Due, Total | 4,723 | 400 |
Current | 139,054 | 58,162 |
Total Loans | 143,777 | 58,562 |
Purchased Not credit impaired | Past Due, 30 - 59 days | ||
Past Due, Total | 545 | 0 |
Purchased Not credit impaired | Past Due, 60 - 89 days | ||
Past Due, Total | 3,778 | 400 |
Purchased Not credit impaired | Past Due, More than 90 days | ||
Past Due, Total | 400 | 0 |
Purchased Not credit impaired | Commercial real estate | ||
Past Due, Total | 4,309 | 0 |
Current | 84,184 | 31,852 |
Total Loans | 88,493 | 31,852 |
Purchased Not credit impaired | Commercial real estate | Past Due, 30 - 59 days | ||
Past Due, Total | 513 | 0 |
Purchased Not credit impaired | Commercial real estate | Past Due, 60 - 89 days | ||
Past Due, Total | 3,778 | 0 |
Purchased Not credit impaired | Commercial real estate | Past Due, More than 90 days | ||
Past Due, Total | 0 | 0 |
Purchased Not credit impaired | Real Estate Construction | ||
Past Due, Total | 0 | 0 |
Current | 5,473 | 1,944 |
Total Loans | 5,473 | 1,944 |
Purchased Not credit impaired | Real Estate Construction | Past Due, 30 - 59 days | ||
Past Due, Total | 0 | 0 |
Purchased Not credit impaired | Real Estate Construction | Past Due, 60 - 89 days | ||
Past Due, Total | 0 | 0 |
Purchased Not credit impaired | Real Estate Construction | Past Due, More than 90 days | ||
Past Due, Total | 0 | 0 |
Purchased Not credit impaired | Real Estate Multi family | ||
Past Due, Total | 0 | 0 |
Current | 16,664 | 10,445 |
Total Loans | 16,664 | 10,445 |
Purchased Not credit impaired | Real Estate Multi family | Past Due, 30 - 59 days | ||
Past Due, Total | 0 | 0 |
Purchased Not credit impaired | Real Estate Multi family | Past Due, 60 - 89 days | ||
Past Due, Total | 0 | 0 |
Purchased Not credit impaired | Real Estate Multi family | Past Due, More than 90 days | ||
Past Due, Total | 0 | 0 |
Purchased Not credit impaired | Real Estate 1 to 4 family | ||
Past Due, Total | 414 | 400 |
Current | 20,707 | 4,810 |
Total Loans | 21,121 | 5,210 |
Purchased Not credit impaired | Real Estate 1 to 4 family | Past Due, 30 - 59 days | ||
Past Due, Total | 14 | 0 |
Purchased Not credit impaired | Real Estate 1 to 4 family | Past Due, 60 - 89 days | ||
Past Due, Total | 0 | 400 |
Purchased Not credit impaired | Real Estate 1 to 4 family | Past Due, More than 90 days | ||
Past Due, Total | 400 | 0 |
Purchased Not credit impaired | Commercial and industrial | ||
Past Due, Total | 0 | 0 |
Current | 12,026 | 9,111 |
Total Loans | 12,026 | 9,111 |
Purchased Not credit impaired | Commercial and industrial | Past Due, 30 - 59 days | ||
Past Due, Total | 0 | 0 |
Purchased Not credit impaired | Commercial and industrial | Past Due, 60 - 89 days | ||
Past Due, Total | 0 | 0 |
Purchased Not credit impaired | Commercial and industrial | Past Due, More than 90 days | ||
Past Due, Total | 0 | 0 |
Purchased Credit impaired | ||
Past Due, Total | 0 | |
Current | 1,321 | 1,323 |
Total Loans | 1,321 | 1,323 |
Purchased Credit impaired | Commercial real estate | ||
Past Due, Total | 0 | |
Current | 1,321 | 1,323 |
Total Loans | $ 1,321 | $ 1,323 |
E. LOANS, Credit Quality Indica
E. LOANS, Credit Quality Indicators Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Pass | ||
Commercial real estate | $ 298,182 | $ 281,216 |
Real estate construction | 29,333 | 38,962 |
Real estate multi-family | 47,264 | 43,379 |
Real estate 1 to 4 family | 150,346 | 122,499 |
Commercial & industrial | 27,211 | 41,394 |
Consumer loans | 1,497 | 1,384 |
Totals | 553,833 | 528,834 |
Commercial real estate | 66,703 | 26,009 |
Real estate construction | 5,473 | 1,944 |
Real estate multi-family | 16,664 | 10,445 |
Real estate 1 to 4 family | 20,720 | 4,810 |
Commercial & industrial | 11,931 | 9,111 |
Total | 121,491 | 52,319 |
Special mention | ||
Commercial real estate | 1,862 | 1,913 |
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 |
Totals | 1,862 | 1,913 |
Commercial real estate | 7,745 | 0 |
Real estate construction | 0 | 0 |
Real estate multi-family | 0 | 0 |
Real estate 1 to 4 family | 0 | 0 |
Commercial & industrial | 0 | 0 |
Total | 7,745 | 0 |
Sub Standard | ||
Commercial real estate | 4,232 | 2,031 |
Real estate construction | 1,062 | 1,135 |
Real estate multi-family | 0 | 0 |
Real estate 1 to 4 family | 813 | 1,023 |
Commercial & industrial | 441 | 1,157 |
Consumer loans | 0 | 64 |
Totals | 6,548 | 5,410 |
Commercial real estate | 14,031 | 5,843 |
Real estate construction | 0 | 0 |
Real estate multi-family | 0 | 0 |
Real estate 1 to 4 family | 401 | 0 |
Commercial & industrial | 95 | 0 |
Total | 14,527 | 5,843 |
Doubtful | ||
Commercial real estate | 0 | 92 |
Real estate construction | 0 | 0 |
Real estate multi-family | 0 | 0 |
Real estate 1 to 4 family | 0 | 0 |
Commercial & industrial | 165 | 0 |
Consumer loans | 0 | 0 |
Totals | 165 | 92 |
Commercial real estate | 14 | 0 |
Real estate construction | 0 | 0 |
Real estate multi-family | 0 | 0 |
Real estate 1 to 4 family | 0 | 400 |
Commercial & industrial | 0 | 0 |
Total | 14 | 400 |
Total loans | ||
Commercial real estate | 304,276 | 285,252 |
Real estate construction | 30,395 | 37,827 |
Real estate multi-family | 47,264 | 43,379 |
Real estate 1 to 4 family | 151,159 | 123,522 |
Commercial & industrial | 27,817 | 42,551 |
Consumer loans | 1,497 | 1,448 |
Totals | 562,408 | 533,979 |
Commercial real estate | 88,493 | 31,852 |
Real estate construction | 5,473 | 1,944 |
Real estate multi-family | 16,664 | 10,445 |
Real estate 1 to 4 family | 21,121 | 5,210 |
Commercial & industrial | 12,026 | 9,111 |
Total | 143,777 | 58,562 |
Commercial real estate | 1,321 | 1,323 |
Total | $ 1,321 | $ 1,323 |
E. LOANS, (Details Narrative)
E. LOANS, (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Investment on impaired loans | $ 20,998 | $ 18,926 | $ 22,971 | $ 18,641 | |
Interest income on impaired loans recognized | 222 | $ 291 | 690 | $ 746 | $ 982 |
Interest on impaired loans not collected | 284 | 91 | |||
Cumulative amount of unpaid interest on impaired loans | 3,228 | 2,944 | |||
Nonaccrual loans | 5,192 | 5,192 | 5,648 | ||
Total outstanding principal of troubled debt restructured loans | 15,841 | 15,841 | 16,517 | ||
Commercial real estate | |||||
Interest income on impaired loans recognized | 413 | 562 | |||
Nonaccrual loans | 2,094 | 2,094 | 2,111 | ||
Total outstanding principal of troubled debt restructured loans | 9,346 | 9,346 | 9,498 | ||
Real estate construction | |||||
Total outstanding principal of troubled debt restructured loans | 1,291 | 1,291 | |||
Real Estate 1 to 4 family | |||||
Interest income on impaired loans recognized | 145 | 178 | |||
Nonaccrual loans | 1,285 | 1,285 | 1,181 | ||
Total outstanding principal of troubled debt restructured loans | 3,596 | 3,596 | 3,661 | ||
Commercial and industrial | |||||
Interest income on impaired loans recognized | 32 | 87 | |||
Nonaccrual loans | 1,813 | 1,813 | 2,292 | ||
Total outstanding principal of troubled debt restructured loans | $ 1,608 | $ 1,608 | 2,054 | ||
Real Estate Construction | |||||
Total outstanding principal of troubled debt restructured loans | $ 1,304 |
G. FAIR VALUE MEASUREMENT, Asse
G. FAIR VALUE MEASUREMENT, Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
U. S. Treasury securities | $ 6,079 | $ 3,958 |
Obligations of U.S. Government agencies | 80,153 | 63,062 |
Mortgage-backed securities | 63,496 | 78,417 |
Obligations of states and political subdivisions | 125,028 | 84,542 |
Corporate debt | 40,804 | 34,902 |
Total assets measured at fair value | 315,560 | 264,881 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
U. S. Treasury securities | 6,079 | 3,958 |
Obligations of U.S. Government agencies | 0 | 0 |
Mortgage-backed securities | 0 | 0 |
Obligations of states and political subdivisions | 0 | 0 |
Corporate debt | 0 | 0 |
Total assets measured at fair value | 6,079 | 3,958 |
Other Observable Inputs (Level 2) | ||
U. S. Treasury securities | 0 | 0 |
Obligations of U.S. Government agencies | 80,153 | 63,062 |
Mortgage-backed securities | 63,496 | 78,417 |
Obligations of states and political subdivisions | 125,028 | 84,542 |
Corporate debt | 40,804 | 34,902 |
Total assets measured at fair value | 309,481 | 260,923 |
Significant Unobservable Inputs(Level 3) | ||
U. S. Treasury securities | 0 | 0 |
Obligations of U.S. Government agencies | 0 | 0 |
Mortgage-backed securities | 0 | 0 |
Obligations of states and political subdivisions | 0 | 0 |
Corporate debt | 0 | 0 |
Total assets measured at fair value | $ 0 | $ 0 |
G. FAIR VALUE MEASUREMENT, Nonr
G. FAIR VALUE MEASUREMENT, Nonrecurring basis (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value | ||
Commercial real estate | $ 123 | $ 381 |
Residential- 1 to 4 family | 238 | 323 |
Commercial and Industrial | 1,016 | 1,472 |
Consumer | 0 | 56 |
Other real estate owned | 838 | 763 |
Total impaired assets measured at fair value | 2,215 | 2,232 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Commercial real estate | 0 | 0 |
Residential- 1 to 4 family | 0 | 0 |
Commercial and Industrial | 0 | 0 |
Consumer | 0 | 0 |
Other real estate owned | 0 | 0 |
Total impaired assets measured at fair value | 0 | 0 |
Other Observable Inputs (Level 2) | ||
Commercial real estate | 0 | 0 |
Residential- 1 to 4 family | 0 | 0 |
Commercial and Industrial | 0 | 0 |
Consumer | 0 | 0 |
Other real estate owned | 0 | 0 |
Total impaired assets measured at fair value | 0 | 0 |
Significant Unobservable Inputs(Level 3) | ||
Commercial real estate | 123 | 381 |
Residential- 1 to 4 family | 238 | 323 |
Commercial and Industrial | 1,016 | 1,472 |
Consumer | 0 | 56 |
Other real estate owned | 838 | 763 |
Total impaired assets measured at fair value | $ 2,215 | $ 2,232 |
G. FAIR VALUE MEASUREMENT, Fina
G. FAIR VALUE MEASUREMENT, Financial instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Financial assets: | ||||
Cash and cash equivalents | $ 40,282 | $ 14,978 | $ 15,220 | $ 14,007 |
Interest-bearing time deposits with financial Institutions | 1,246 | 2,784 | ||
Other Equity Securities | 315,560 | |||
Accrued interest receivable | 4,326 | 3,725 | ||
Financial liabilities: | ||||
Deposits | 989,365 | 792,194 | ||
Notes payable | 5,100 | 5,550 | ||
Carrying Amount | ||||
Financial assets: | ||||
Cash and cash equivalents | 40,282 | 14,978 | ||
Interest-bearing time deposits with financial Institutions | 1,246 | 2,784 | ||
Securities available for sale | 315,560 | 264,881 | ||
Loans | 707,506 | 593,864 | ||
Other Equity Securities | 6,748 | 5,769 | ||
Accrued interest receivable | 4,326 | 3,725 | ||
Financial liabilities: | ||||
Deposits | 989,365 | 792,194 | ||
Federal Home Loan Bank advances | 9,000 | |||
Notes payable | 5,100 | 5,550 | ||
Accrued interest payable | 237 | 182 | ||
Off-balance-sheet liabilities: | ||||
Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit | 0 | 0 | ||
Fair Value | ||||
Financial assets: | ||||
Cash and cash equivalents | 40,282 | 14,978 | ||
Interest-bearing time deposits with financial Institutions | 1,250 | 2,813 | ||
Securities available for sale | 315,560 | 264,881 | ||
Loans | 709,391 | 594,524 | ||
Other Equity Securities | 6,748 | 5,769 | ||
Accrued interest receivable | 4,326 | 3,725 | ||
Financial liabilities: | ||||
Deposits | 989,845 | 792,472 | ||
Federal Home Loan Bank advances | 9,000 | |||
Notes payable | 5,100 | 5,550 | ||
Accrued interest payable | 237 | 182 | ||
Off-balance-sheet liabilities: | ||||
Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit | 1,707 | 1,449 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Financial assets: | ||||
Cash and cash equivalents | 40,282 | 14,978 | ||
Interest-bearing time deposits with financial Institutions | 1,250 | 0 | ||
Securities available for sale | 6,079 | 3,958 | ||
Loans | 0 | 0 | ||
Other Equity Securities | 0 | 0 | ||
Accrued interest receivable | 0 | 0 | ||
Financial liabilities: | ||||
Deposits | 0 | 0 | ||
Federal Home Loan Bank advances | 0 | |||
Notes payable | 0 | 0 | ||
Accrued interest payable | 0 | 0 | ||
Off-balance-sheet liabilities: | ||||
Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit | 0 | 0 | ||
Other Observable Inputs (Level 2) | ||||
Financial assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Interest-bearing time deposits with financial Institutions | 0 | 2,813 | ||
Securities available for sale | 309,481 | 260,923 | ||
Loans | 0 | 0 | ||
Other Equity Securities | 0 | 0 | ||
Accrued interest receivable | 4,326 | 3,725 | ||
Financial liabilities: | ||||
Deposits | 989,845 | 792,472 | ||
Federal Home Loan Bank advances | 9,000 | |||
Notes payable | 5,100 | 5,550 | ||
Accrued interest payable | 237 | 182 | ||
Off-balance-sheet liabilities: | ||||
Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit | 0 | 0 | ||
Significant Unobservable Inputs(Level 3) | ||||
Financial assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Interest-bearing time deposits with financial Institutions | 0 | 0 | ||
Loans | 709,391 | 594,524 | ||
Other Equity Securities | 6,748 | 5,769 | ||
Accrued interest receivable | 0 | 0 | ||
Financial liabilities: | ||||
Deposits | 0 | 0 | ||
Federal Home Loan Bank advances | 0 | |||
Notes payable | 0 | 0 | ||
Accrued interest payable | 0 | 0 | ||
Off-balance-sheet liabilities: | ||||
Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit | $ 1,707 | $ 1,449 |
G. FAIR VALUE MEASUREMENT (Deta
G. FAIR VALUE MEASUREMENT (Details Narrative) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
FAIR VALUE MEASUREMENT TABLES | ||
Nonaccrual loans | $ 5,192 | $ 5,648 |
H. ACQUISITION, Estimated fair
H. ACQUISITION, Estimated fair values (Details) - USD ($) $ in Thousands | Sep. 04, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | |||
Cash and due from banks | $ 40,282 | $ 14,978 | |
Interest-bearing time deposits with financial institutions | 1,246 | 2,784 | |
Other equity securities | 6,748 | 5,769 | |
Loans | 696,888 | 583,715 | |
Premises and equipment, net | 10,326 | 10,951 | |
Bank owned life insurance | 15,742 | 12,510 | |
Accrued interest receivable | 4,326 | 3,725 | |
Prepaid expense | 877 | 1,045 | |
Goodwill | 4,580 | 1,841 | |
Other assets | 14,044 | 14,202 | |
Total Assets | 1,111,457 | 917,164 | |
Deposits: | |||
Demand deposits | 262,206 | 202,811 | |
NOW accounts | 84,682 | 89,548 | |
Savings and money market deposits | 512,534 | 394,676 | |
Time deposits | 129,943 | 105,159 | |
Total deposits | 989,365 | 792,194 | |
Accrued expenses and other liabilities | 13,302 | 13,332 | |
Total Liabilities | 1,007,767 | 820,076 | |
America California Bank tangible Stockholders’ Equity | $ 103,690 | $ 97,088 | |
America California Bank | |||
Assets | |||
Cash and due from banks | $ 3,019 | ||
Interest-bearing time deposits with financial institutions | 7,836 | ||
Other equity securities | 679 | ||
Loans | 92,969 | ||
Premises and equipment, net | 62 | ||
Bank owned life insurance | 2,971 | ||
Accrued interest receivable | 313 | ||
Prepaid expense | 1,808 | ||
Other assets | 2,731 | ||
Total Assets | 115,127 | ||
Deposits: | |||
Demand deposits | 14,500 | ||
NOW accounts | 6,122 | ||
Savings and money market deposits | 42,680 | ||
Time deposits | 26,824 | ||
Total deposits | 90,126 | ||
Accrued expenses and other liabilities | 3,501 | ||
Total Liabilities | 93,627 | ||
Merger consideration (cash) | 21,500 | ||
America California Bank tangible Stockholders’ Equity | 18,440 | ||
Adjustments to reflect assets acquired and liabilities assumed at fair value: | |||
Loans | 2,178 | ||
Core deposit intangible | (727) | ||
Certificates of deposit | (243) | ||
Accrued expenses | (1,832) | ||
Other borrowings | (86) | ||
Subtotal net fair value adjustments | 744 | ||
Deferred tax liability related to purchase | (423) | ||
Total fair value adjustments | 321 | ||
Fair value of Net Assets Acquired | 18,761 | ||
Merger Consideration | 21,500 | ||
Less: Fair Value of Net Assets Acquired | (18,761) | ||
Goodwill | $ 2,739 |
H. ACQUISITION, Acquisition Rel
H. ACQUISITION, Acquisition Related Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Acquisition Related Expense | ||||
Data processing | $ 659 | $ 151 | $ 940 | $ 430 |
Legal and accounting | 334 | 395 | 1,075 | 1,427 |
D & O insurance -tail end coverage | 313 | $ 352 | $ 911 | $ 1,000 |
America California Bank | ||||
Acquisition Related Expense | ||||
Occupancy | 345 | |||
Data processing | 515 | |||
Legal and accounting | 150 | |||
D & O insurance -tail end coverage | 35 | |||
Total | $ 1,045 |
H. ACQUISITION, Pro forma conso
H. ACQUISITION, Pro forma consolidated condensed statements of earnings (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net interest income after provision for loan losses | $ 9,125 | $ 8,762 | $ 26,236 | $ 25,907 |
Noninterest income | 1,024 | 1,041 | 3,367 | 3,067 |
Noninterest expense | 7,479 | 7,055 | 21,211 | 21,107 |
Earnings before provision for income tax expense | 2,670 | 2,748 | 8,392 | 7,867 |
Provision for income tax expense | 431 | 925 | 2,283 | 2,581 |
Net earnings | $ 2,239 | $ 1,823 | $ 6,109 | $ 5,286 |
Earnings per share data: | ||||
Basic | $ 0.52 | $ 0.43 | $ 1.42 | $ 1.21 |
Diluted | $ 0.51 | $ 0.42 | $ 1.38 | $ 1.17 |
Weighted average shares outstanding: | ||||
Basic | 4,309 | 4,250 | 4,293 | 4,222 |
Diluted | 4,422 | 4,384 | 4,414 | 4,364 |
As Reported | ||||
Net interest income after provision for loan losses | $ 26,236 | $ 25,907 | ||
Noninterest income | 3,367 | 3,067 | ||
Noninterest expense | 21,211 | 21,107 | ||
Earnings before provision for income tax expense | 8,392 | 7,867 | ||
Provision for income tax expense | 2,283 | 2,581 | ||
Net earnings | $ 6,109 | $ 5,286 | ||
Earnings per share data: | ||||
Basic | $ 1.42 | $ 1.25 | ||
Diluted | $ 1.38 | $ 1.21 | ||
Weighted average shares outstanding: | ||||
Basic | 4,293 | 4,222 | ||
Diluted | 4,414 | 4,364 | ||
As Adjusted | ||||
Net interest income after provision for loan losses | $ 29,289 | $ 29,271 | ||
Noninterest income | 3,518 | 3,263 | ||
Noninterest expense | 23,952 | 23,878 | ||
Earnings before provision for income tax expense | 8,855 | 8,656 | ||
Provision for income tax expense | 2,467 | 2,895 | ||
Net earnings | $ 6,388 | $ 5,761 | ||
Earnings per share data: | ||||
Basic | $ 1.49 | $ 1.36 | ||
Diluted | $ 1.45 | $ 1.32 | ||
Weighted average shares outstanding: | ||||
Basic | 4,293 | 4,222 | ||
Diluted | 4,414 | 4,364 |