Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 08, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'VSB BANCORP INC | ' |
Entity Central Index Key | '0001225874 | ' |
Trading Symbol | 'vsbn | ' |
Entity Current Reporting Status | 'Yes | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 1,782,309 |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Entity Well-Known Seasoned Issuer | 'No | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Consolidated_Statements_of_Fin
Consolidated Statements of Financial Condition (unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Assets: | ' | ' |
Cash and due from banks | $63,257,198 | $77,728,426 |
Investment securities, available for sale | 56,912,504 | 106,825,570 |
Investment securities, held to maturity (fair value 2013 - $99,128,515) | 99,958,474 | ' |
Loans receivable | 76,520,302 | 81,971,571 |
Allowance for loan loss | -1,260,454 | -1,753,521 |
Loans receivable, net | 75,259,848 | 80,218,050 |
Bank premises and equipment, net | 2,050,521 | 2,097,356 |
Accrued interest receivable | 551,728 | 617,833 |
Other assets | 1,926,974 | 2,217,136 |
Total assets | 299,917,247 | 269,704,371 |
Deposits: | ' | ' |
Demand and checking | 97,497,389 | 81,881,173 |
NOW | 35,502,753 | 33,394,785 |
Money market | 41,565,442 | 33,023,373 |
Savings | 22,591,370 | 20,871,593 |
Time | 73,828,624 | 71,452,704 |
Total deposits | 270,985,578 | 240,623,628 |
Escrow deposits | 104,885 | 77,578 |
Accounts payable and accrued expenses | 1,291,551 | 1,249,194 |
Total liabilities | 272,382,014 | 241,950,400 |
Stockholders' equity: | ' | ' |
Common stock ($.0001 par value, 10,000,000 shares authorized, 1,989,509 issued, 1,785,309 outstanding at September 30, 2013 and at December 31, 2012) | 199 | 199 |
Additional paid in capital | 9,321,312 | 9,257,167 |
Retained earnings | 19,790,109 | 19,336,280 |
Treasury stock, at cost (204,200 shares at September 30, 2013 and at December 31, 2012) | -2,068,898 | -2,068,898 |
Unearned Employee Stock Ownership Plan shares | -98,629 | -225,438 |
Accumulated other comprehensive income, net of taxes of $498,519 and $1,226,742, respectively | 591,140 | 1,454,661 |
Total stockholders' equity | 27,535,233 | 27,753,971 |
Total liabilities and stockholders' equity | $299,917,247 | $269,704,371 |
Consolidated_Statements_of_Fin1
Consolidated Statements of Financial Condition (unaudited) (Parentheticals) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Held to maturity, fair value | $99,128,515 | ' |
Common stock par value (in Dollars per share) | $0.00 | $0.00 |
Common stock shares authorized | 10,000,000 | 10,000,000 |
Common stock , shares issued | 1,989,509 | 1,989,509 |
Common stock, shares outstanding | 1,785,309 | 1,785,309 |
Treasury stock, at cost shares | 204,200 | 204,200 |
Accumulated other comprehensive income, net of taxes (in Dollars) | $498,519 | $1,226,742 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Interest and dividend income: | ' | ' | ' | ' |
Loans receivable | $1,312,109 | $1,484,891 | $4,137,806 | $4,489,089 |
Investment securities | 817,651 | 736,733 | 2,093,702 | 2,319,168 |
Other interest earning assets | 39,722 | 30,259 | 123,781 | 78,331 |
Total interest income | 2,169,482 | 2,251,883 | 6,355,289 | 6,886,588 |
Interest expense: | ' | ' | ' | ' |
NOW | 15,110 | 19,414 | 47,303 | 62,972 |
Money market | 57,048 | 59,187 | 157,163 | 174,058 |
Savings | 20,030 | 16,493 | 57,963 | 35,693 |
Time | 113,503 | 105,518 | 359,326 | 335,370 |
Total interest expense | 205,691 | 200,612 | 621,755 | 608,093 |
Net interest income | 1,963,791 | 2,051,271 | 5,733,534 | 6,278,495 |
Provision for loan loss | 45,000 | 40,000 | 180,000 | 280,000 |
Net interest income after provision for loan loss | 1,918,791 | 2,011,271 | 5,553,534 | 5,998,495 |
Non-interest income: | ' | ' | ' | ' |
Loan fees | 13,399 | 12,471 | 37,132 | 32,063 |
Service charges on deposits | 630,611 | 524,766 | 1,651,242 | 1,626,041 |
Net rental income | 17,667 | 18,327 | 52,903 | 42,605 |
Other income | 52,690 | 52,264 | 224,629 | 156,075 |
Total non-interest income | 714,367 | 607,828 | 1,965,906 | 1,856,784 |
Non-interest expenses: | ' | ' | ' | ' |
Salaries and benefits | 947,829 | 934,410 | 2,898,913 | 2,861,845 |
Occupancy expenses | 340,003 | 367,248 | 994,348 | 1,095,729 |
Legal expense | 85,477 | 59,292 | 198,637 | 209,276 |
Professional fees | 105,975 | 84,819 | 276,947 | 253,880 |
Computer expense | 70,724 | 66,463 | 223,547 | 183,131 |
Directors' fees | 53,375 | 60,775 | 177,625 | 205,900 |
FDIC and NYSBD assessments | 60,500 | 57,000 | 175,500 | 178,500 |
Other expenses | 340,253 | 330,204 | 1,146,787 | 1,003,474 |
Total non-interest expenses | 2,004,136 | 1,960,211 | 6,092,304 | 5,991,735 |
Income before income taxes | 629,022 | 658,888 | 1,427,136 | 1,863,544 |
Provision/(benefit) for income taxes: | ' | ' | ' | ' |
Current | 323,092 | 329,410 | 424,715 | 1,058,329 |
Deferred | -35,308 | -27,982 | 228,243 | -205,730 |
Total provision for income taxes | 287,784 | 301,428 | 652,958 | 852,599 |
Net income | 341,238 | 357,460 | 774,178 | 1,010,945 |
Earnings per share: | ' | ' | ' | ' |
Basic (in dollars per share) | $0.19 | $0.20 | $0.44 | $0.57 |
Diluted (in dollars per share) | $0.19 | $0.20 | $0.44 | $0.57 |
Comprehensive income/(loss) | $294,391 | $547,112 | ($89,343) | $1,028,966 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income/(Loss) (unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Net Income | $341,238 | $357,460 | $774,178 | $1,010,945 |
Unrealized gains on securities, AFS: | ' | ' | ' | ' |
Change in unrealized gain on securities, AFS | -59,153 | 349,589 | -2,089,216 | 33,219 |
Unrealized gains on securities transferred from AFS to HTM | ' | ' | 533,811 | ' |
Accretion on unrealized gains on HTM securities | -27,201 | ' | -36,338 | ' |
Tax effects | -39,507 | 159,937 | -728,222 | 15,198 |
Net of tax | -46,847 | 189,652 | -863,521 | 18,021 |
Comprehensive income/(loss) | $294,391 | $547,112 | ($89,343) | $1,028,966 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (unaudited) (USD $) | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock, at cost | Unearned ESOP Shares | Other Comprehensive Gain/(Loss) | Total |
Balance at at Dec. 31, 2011 | $199 | $9,304,789 | $18,574,651 | ($1,935,596) | ($394,516) | $1,552,733 | $27,102,260 |
Balance at (in Shares) at Dec. 31, 2011 | 1,797,809 | ' | ' | ' | ' | ' | ' |
Stock-based compensation | ' | 101,672 | ' | ' | ' | ' | 101,672 |
Amortization of earned portion of ESOP common stock | ' | ' | ' | ' | 169,078 | ' | 169,078 |
Amortization of cost over fair value - ESOP | ' | -48,119 | ' | ' | ' | ' | -48,119 |
Cash dividends declared ($0.24 per share for the period ended December 31,2012 and $0.06 per share for the period ended 31st March,2013 and 30th June,2013 and 30th September, 2013) | ' | ' | -426,571 | ' | ' | ' | -426,571 |
Purchase of treasury stock, at cost | ' | ' | ' | -234,477 | ' | ' | -234,477 |
Purchase of treasury stock, at cost (in Shares) | -22,000 | ' | ' | ' | ' | ' | ' |
Contribution to RRP Trust from treasury shares | ' | -101,175 | ' | -101,175 | ' | ' | ' |
Contribution to RRP Trust from treasury shares (in shares) | 9,500 | ' | ' | ' | ' | ' | ' |
Net income | ' | ' | 1,188,200 | ' | ' | ' | 1,188,200 |
Other comprehensive income: | ' | ' | ' | ' | ' | -98,072 | -98,072 |
Balance at at Dec. 31, 2012 | 199 | 9,257,167 | 19,336,280 | -2,068,898 | -225,438 | 1,454,661 | 27,753,971 |
Balance at (in Shares) at Dec. 31, 2012 | 1,785,309 | ' | ' | ' | ' | ' | 1,785,309 |
Stock-based compensation | ' | 36,185 | ' | ' | ' | ' | 36,185 |
Amortization of earned portion of ESOP common stock | ' | ' | ' | ' | 42,270 | ' | 42,270 |
Amortization of cost over fair value - ESOP | ' | -21,552 | ' | ' | ' | ' | -21,552 |
Cash dividends declared ($0.24 per share for the period ended December 31,2012 and $0.06 per share for the period ended 31st March,2013 and 30th June,2013 and 30th September, 2013) | ' | ' | -106,783 | ' | ' | ' | -106,783 |
Net income | ' | ' | 209,871 | ' | ' | ' | 209,871 |
Other comprehensive income: | ' | ' | ' | ' | ' | -184,611 | -184,611 |
Balance at at Mar. 31, 2013 | 199 | 9,271,800 | 19,439,368 | -2,068,898 | -183,168 | 1,270,050 | 27,729,351 |
Balance at (in Shares) at Mar. 31, 2013 | 1,785,309 | ' | ' | ' | ' | ' | ' |
Stock-based compensation | ' | 59,415 | ' | ' | ' | ' | 59,415 |
Amortization of earned portion of ESOP common stock | ' | ' | ' | ' | ' | 42,269 | 42,269 |
Amortization of cost over fair value - ESOP | ' | -21,150 | ' | ' | ' | ' | -21,150 |
Cash dividends declared ($0.24 per share for the period ended December 31,2012 and $0.06 per share for the period ended 31st March,2013 and 30th June,2013 and 30th September, 2013) | ' | ' | -106,783 | ' | ' | ' | -106,783 |
Net income | ' | ' | 223,069 | ' | ' | ' | 223,069 |
Other comprehensive income: | ' | ' | ' | ' | ' | -632,063 | -632,063 |
Balance at at Jun. 30, 2013 | 199 | 9,310,065 | 19,555,654 | -2,068,898 | -140,899 | 637,987 | 27,294,108 |
Balance at (in Shares) at Jun. 30, 2013 | 1,785,309 | ' | ' | ' | ' | ' | ' |
Stock-based compensation | ' | 32,544 | ' | ' | ' | ' | 32,544 |
Amortization of earned portion of ESOP common stock | ' | ' | ' | ' | ' | 42,270 | 42,270 |
Amortization of cost over fair value - ESOP | ' | -21,297 | ' | ' | ' | ' | -21,297 |
Cash dividends declared ($0.24 per share for the period ended December 31,2012 and $0.06 per share for the period ended 31st March,2013 and 30th June,2013 and 30th September, 2013) | ' | ' | -106,783 | ' | ' | ' | -106,783 |
Net income | ' | ' | 341,238 | ' | ' | ' | 341,238 |
Other comprehensive income: | ' | ' | ' | ' | ' | -46,847 | -46,847 |
Balance at at Sep. 30, 2013 | $199 | $9,321,312 | $19,790,109 | ($2,068,898) | ($98,629) | $591,140 | $27,535,233 |
Balance at (in Shares) at Sep. 30, 2013 | 1,785,309 | ' | ' | ' | ' | ' | 1,785,309 |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Stockholders' Equity (unaudited) (Parentheticals) (USD $) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | |
Statement of Stockholders' Equity [Abstract] | ' | ' | ' | ' |
Cash dividends declared, per share (in dollars per share) | $0.06 | $0.06 | $0.06 | $0.24 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (unaudited) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | ' | ' | ' |
Net income | $341,238 | $357,460 | $774,178 | $1,010,945 | $1,188,200 |
Depreciation and amortization | 117,395 | 145,384 | 370,733 | 442,378 | ' |
Accretion of income, net of amortization of premium | 52,807 | 60,649 | 256,250 | 292,498 | ' |
ESOP compensation expense | 20,973 | 22,012 | 62,810 | 65,661 | ' |
Stock-based compensation expense | 32,544 | 23,447 | 128,144 | 70,338 | ' |
Provision for loan losses | 45,000 | 40,000 | 180,000 | 280,000 | ' |
(Gain)/loss on sale of other real estate | ' | ' | -9,611 | ' | ' |
Write-down of other real estate owned | ' | ' | 59,792 | ' | ' |
Decrease in prepaid and other assets | 194,256 | 121,195 | 588,646 | 335,239 | ' |
(Increase)/decrease in accrued interest receivable | -3,750 | 2,554 | 66,105 | 26,928 | ' |
(Increase)decrease in deferred income taxes | -35,308 | -27,982 | 228,243 | -205,730 | ' |
(Decrease)/increase in accrued expenses and other liabilities | -11,460 | -72,790 | 42,357 | -342,557 | ' |
Net cash provided by operating activities | 753,695 | 671,929 | 2,747,647 | 1,975,700 | ' |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | ' | ' | ' |
Net change in loan receivable | 280,068 | 4,045,312 | 4,637,604 | -36,363 | ' |
Available-for-sale securities: | ' | ' | ' | ' | ' |
Proceeds from repayment and calls of investment securities | 3,519,874 | 9,050,698 | 20,505,835 | 27,734,440 | ' |
Purchases of investment securities | -13,286,448 | -3,941,875 | -46,942,854 | -31,841,957 | ' |
Held-to-maturity securities: | ' | ' | ' | ' | ' |
Proceeds from repayment and calls of investment securities | 3,565,344 | ' | 3,571,244 | ' | ' |
Purchases of investment securities | -21,789,638 | ' | -29,087,028 | ' | ' |
Proceeds from sale of other real estate | 202,000 | ' | 492,686 | ' | ' |
Purchases of premises and equipment | -116,471 | -167,840 | -465,270 | -293,493 | ' |
Net cash (used in)/provided by investing activities | -27,625,271 | 8,986,295 | -47,287,783 | -4,437,373 | ' |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | ' | ' | ' |
Net increase in deposits | 2,364,841 | 7,225,994 | 30,389,257 | 17,731,942 | ' |
Purchase of treasury stock, at cost | ' | -128,409 | ' | -234,477 | ' |
Cash dividends paid | -106,783 | -106,283 | -320,349 | -320,289 | ' |
Net cash provided by financing activities | 2,258,058 | 6,991,302 | 30,068,908 | 17,177,176 | ' |
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS | -24,613,518 | 16,649,526 | -14,471,228 | 14,715,503 | ' |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 87,870,716 | 46,173,650 | 77,728,426 | 48,107,673 | 48,107,673 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 63,257,198 | 62,823,176 | 63,257,198 | 62,823,176 | 77,728,426 |
Cash paid during the period for: | ' | ' | ' | ' | ' |
Interest | 204,120 | 197,554 | 618,567 | 612,222 | ' |
Taxes | 175,000 | 321,000 | 330,849 | 886,610 | ' |
SUPPLEMENTAL NONCASH DISCLOSURE: | ' | ' | ' | ' | ' |
Transfer from loans to real estate owned | ' | ' | 200,000 | 81,075 | ' |
Transfer from AFS to HTM investment securities | ' | ' | $74,540,643 | ' | ' |
1_GENERAL
1. GENERAL | 9 Months Ended |
Sep. 30, 2013 | |
GENERAL | ' |
1. GENERAL | |
VSB Bancorp, Inc. (referred to using terms such as “we,” “us,” or the “Company”) is the holding company for Victory State Bank (the “Bank”), a New York chartered commercial bank. Our primary business is owning all of the issued and outstanding stock of the Bank. Our common stock is listed on the NASDAQ Global Market. We trade under the symbol “VSBN”. | |
Through the Bank, the Company is primarily engaged in the business of commercial banking, and to a lesser extent retail banking. The Bank gathers deposits from individuals and businesses primarily in Staten Island, New York and makes loans throughout that community. Therefore, the Company’s exposure to credit risk is significantly affected by changes in the local Staten Island economic and real estate markets. The Bank invests funds that are not used for lending primarily in government securities, mortgage backed securities and collateralized mortgage obligations. Customer deposits are insured, up to the applicable limit, by the Federal Deposit Insurance Corporation (“FDIC”). The Bank is supervised by the New York State Department of Financial Services (“NYDFS”) and the FDIC. |
2_SUMMARY_OF_SIGNIFICANT_ACCOU
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||
The following is a description of the significant accounting and reporting policies followed in preparing and presenting the accompanying consolidated financial statements. These policies conform with accounting principles generally accepted in the United States of America (“GAAP”). | |||||||||
Principles of Consolidation – The consolidated financial statements of the Company include the accounts of the Company, including its subsidiary Victory State Bank. All significant inter-company accounts and transactions between the Company and Bank have been eliminated in consolidation. | |||||||||
Use of Estimates – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the amounts of revenues and expenses during the reporting period. Actual results can differ from those estimates. The allowance for loan losses, prepayment estimates on the mortgage-backed securities and collateralized mortgage obligation portfolios, contingencies and fair values of financial instruments are particularly subject to change. | |||||||||
Reclassifications – Some items in the prior year financial statements were reclassified to conform to the current presentation. | |||||||||
Cash and Cash Equivalents – Cash and cash equivalents consist of cash on hand, due from banks and interest-bearing deposits. Interest-bearing deposits with original maturities of 90 days or less are included in this category. Customer loan and deposit transactions are reported on a net cash basis. Regulation D of the Board of Governors of the Federal Reserve System requires that Victory State Bank maintain interest-bearing deposits or cash on hand as reserves against its demand deposits. The amount of reserves which Victory State Bank is required to maintain depends upon its level of transaction accounts. During the fourteen day period from September 19, 2013 through October 2, 2013, Victory State Bank was required to maintain reserves, after deducting vault cash, of $5,574,000. Reserves are required to be maintained on a fourteen day basis, so, from time to time, Victory State Bank may use available cash reserves on a day to day basis, so long as the fourteen day average reserves satisfy Regulation D requirements. Victory State Bank is required to report transaction account levels to the Federal Reserve on a weekly basis. | |||||||||
Interest-bearing bank balances – Interest-bearing bank balances mature overnight and are carried at cost. | |||||||||
Investment Securities, Available for Sale – Investment securities, available for sale, are to be held for an unspecified period of time and include securities that management intends to use as part of its asset/liability strategy. These securities may be sold in response to changes in interest rates, prepayments or other factors and are carried at estimated fair value. Gains or losses on the sale of such securities are determined by the specific identification method. Interest income includes amortization of purchase premium and accretion of purchase discount. Premiums and discounts are recognized in interest income using a method that approximates the level yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are estimated. Unrealized holding gains or losses, net of deferred income taxes, are excluded from earnings and reported as other comprehensive income in a separate component of stockholders’ equity until realized. For debt securities with other than temporary impairment (OTTI) that management does not intend to sell or expect to be required to sell, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. | |||||||||
The Company invests primarily in agency collateralized mortgage-Backed obligations (“CMOs”) with estimated average lives primarily under 7 Years and mortgage-backed securities. These securities are primarily issued by the Federal National Mortgage Association (“FNMA”), the Government National Mortgage Association (“GNMA”) or the Federal Home Loan Mortgage Corporation (“FHLMC”) and are primarily comprised of mortgage pools guaranteed by FNMA, GNMA or FHLMC. The Company also invests in whole loan CMOs, collateralized loan obligations (“CLO”) and asset backed securities, all of which are AAA rated at the time of purchase, as well as corporate bonds, which are rated A or better at the time of purchase. These securities expose the Company to risks such as interest rate, prepayment and credit risk and thus pay a higher rate of return than comparable treasury issues. | |||||||||
Investment Securities, Held To Maturity – Investment securities, held to maturity are carried at amortized cost when management has the positive intent and ability to hold them to maturity. The Company invests in agency Collateralized Mortgage-Backed Obligations (“CMOs”) with average lives primarily under 7 years and balloon Mortgage-Backed Securities with a final maturity of ten years or less. These securities are primarily issued by the Federal National Mortgage Association (“FNMA”), the Government National Mortgage Association (“GNMA”) or the Federal Home Loan Mortgage Corporation (“FHLMC”) and are primarily comprised of mortgage pools guaranteed by FNMA, GNMA or FHLMC. | |||||||||
Loans Receivable – Loans receivable, that management has the intent and ability to hold for the foreseeable future or until maturity or payoff, are stated at unpaid principal balances, adjusted for deferred net origination and commitment fees and the allowance for loan losses. Interest income on loans is credited as earned. | |||||||||
It is the policy of the Company to provide a valuation allowance for probable incurred losses on loans based on the Company’s past loan loss experience, known and inherent risks in the portfolio, adverse situations which may affect the borrower’s ability to repay, estimated value of underlying collateral and current economic conditions in the Company’s lending area. The allowance is increased by provisions for loan losses charged to earnings and is reduced by charge-offs, net of recoveries. While management uses available information to estimate losses on loans, future additions to the allowance may be necessary based upon the expected growth of the loan portfolio and any changes in economic conditions beyond management’s control. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses. Such agencies may require the Bank to recognize additions to the allowance based on judgments different from those of management. Management believes, based upon all relevant and available information, that the allowance for loan losses is appropriate. | |||||||||
The Company has a policy that all loans 90 days past due are placed on non-accrual status. It is the Company’s policy to cease the accrual of interest on loans to borrowers past due less than 90 days where a probable loss is estimated and to reverse out of income all interest that is due but has not been paid. The Company applies payments received on non-accrual loans to the outstanding principal balance due before applying any amount to interest, until the loan is restored to an accruing status. On a limited basis, the Company may apply a payment to interest on a non-accrual loan if there is no impairment or no estimated loss on these assets. The Company continues to accrue interest on construction loans that are 90 days past contractual maturity date if the loan is expected to be paid in full in the next 60 days and all interest is paid up to date. | |||||||||
Loan origination fees and certain direct loan origination costs are deferred and the net amount recognized over the contractual loan terms using the level-yield method, adjusted for periodic prepayments in certain circumstances. | |||||||||
The Company considers a loan to be impaired when, based on current information, it is probable that the Company will be unable to collect all principal and interest payments due according to the contractual terms of the loan agreement. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Impairment is measured on a loan by loan basis for commercial and construction loans. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, as a practical expedient, at the loan’s observable market price or the fair value of the collateral. The fair value of the collateral, as reduced by costs to sell, is utilized if a loan is collateral dependent. The fair value of the collateral is estimated by obtaining a new appraisal, if the loan amount exceeds $100,000, or by adjusting the most recent appraisal to reflect the current market if the loan is less than $100,000 or a more recent appraisal has yet to be received. Loans with modified terms that the Company would not normally consider, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. Large groups of homogeneous loans are collectively evaluated for impairment. | |||||||||
Long-Lived Assets – The Company periodically evaluates the recoverability of long-lived assets, such as premises and equipment, to ensure the carrying value has not been impaired. In performing the review for recoverability, the Company would estimate the future cash flows expected to result from the use of the asset. If the sum of the expected future cash flows is less than the carrying amount, an impairment will be recognized. The Company reports these assets at the lower of the carrying value or fair value. | |||||||||
Premises and Equipment – Premises, leasehold improvements, and furniture and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are accumulated by the straight-line method over the estimated useful lives of the respective assets, which range from three to fifteen years. Leasehold improvements are amortized at the lesser of their useful life or the term of the lease. | |||||||||
Federal Home Loan Bank (FHLB) Stock – The Bank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment. Because this stock is viewed as a long term investment, impairment is based on ultimate recovery of par value, which is the price the Bank pays for the FHLB Stock. Both cash and stock dividends are reported as income. | |||||||||
Income Taxes – The Company utilizes the liability method to account for income taxes. Under this method, deferred tax assets and liabilities are determined on differences between financial reporting and the tax bases of assets and liabilities and are measured using the enacted tax rates and laws expected to be in effect when the differences are expected to reverse. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. As such, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. | |||||||||
The Company recognizes interest and/or penalties related to income tax matters in income tax expense. | |||||||||
Financial Instruments – In the ordinary course of business, the Company has entered into off-balance sheet financial instruments, primarily consisting of commitments to extend credit. | |||||||||
Basic and Diluted Net Income Per Common Share – The Company has stock compensation awards with non-forfeitable dividend rights which are considered participating securities. As such, earnings per share is computed using the two-class method. Basic earnings per common share is computed by dividing net income allocated to common stock by the weighted average number of common shares outstanding during the period which excludes the participating securities. Diluted earnings per common share includes the dilutive effect of additional potential common shares from stock-based compensation plans, but excludes awards considered participating securities. Earnings and dividends per share are restated for all stock splits and stock dividends through the date of issuance of the financial statements. | |||||||||
Basic net income per share of common stock is based on 1,756,670 shares and 1,740,777 shares, the weighted average number of common shares outstanding for the three months ended September 30, 2013 and 2012, respectively. Diluted net income per share of common stock is based on 1,756,670 and 1,740,777, the weighted average number of common shares outstanding plus potentially dilutive common shares for the three months ended September 30, 2013 and 2012, respectively. The weighted average number of potentially dilutive common shares excluded in calculating diluted net income per common share due to the anti-dilutive effect is 48,452 and 48,267 shares for the three months ended September 30, 2013 and 2012, respectively. Common stock equivalents were calculated using the treasury stock method. | |||||||||
Basic net income per share of common stock is based on 1,750,777 shares and 1,744,379 shares, the weighted average number of common shares outstanding for the nine months ended September 30, 2013 and 2012, respectively. Diluted net income per share of common stock is based on 1,750,777 and 1,744,379, the weighted average number of common shares outstanding plus potentially dilutive common shares for the nine months ended September 30, 2013 and 2012, respectively. The weighted average number of potentially dilutive common shares excluded in calculating diluted net income per common share due to the anti-dilutive effect is 48,615 and 47,293 shares for the nine months ended September 30, 2013 and 2012, respectively. Common stock equivalents were calculated using the treasury stock method. | |||||||||
The reconciliation of the numerators and the denominators of the basic and diluted per share computations for the three and nine months ended September 30, are as follows: | |||||||||
Reconciliation of EPS | |||||||||
Three months ended | Three months ended | ||||||||
Sept. 30, 2013 | Sept. 30, 2012 | ||||||||
Basic | |||||||||
Distributed earnings allocated to common stock | $ | 105,400 | $ | 104,447 | |||||
Undistributed earnings allocated to common sock | 231,655 | 248,552 | |||||||
Net earnings allocated to common stock | $ | 337,055 | $ | 352,999 | |||||
Weighted common shares outstanding including participating securities | 1,778,470 | 1,762,777 | |||||||
Less: Participating securities | (21,800 | ) | (22,000 | ) | |||||
Weighted average shares | 1,756,670 | 1,740,777 | |||||||
Basic EPS | $ | 0.19 | $ | 0.2 | |||||
Diluted | |||||||||
Net earnings allocated to common stock | $ | 337,055 | $ | 352,999 | |||||
Weighted average shares for basic | 1,756,670 | 1,740,777 | |||||||
Dilutive effects of: | |||||||||
Stock Options | — | — | |||||||
Unvested shares not considered participating securities | — | — | |||||||
1,756,670 | 1,740,777 | ||||||||
Diluted EPS | $ | 0.19 | $ | 0.2 | |||||
Reconciliation of EPS | |||||||||
Nine months ended | Nine months ended | ||||||||
Sept. 30, 2013 | Sept. 30, 2012 | ||||||||
Basic | |||||||||
Distributed earnings allocated to common stock | $ | 315,140 | $ | 313,988 | |||||
Undistributed earnings allocated to common sock | 447,834 | 682,823 | |||||||
Net earnings allocated to common stock | $ | 762,974 | $ | 996,811 | |||||
Weighted common shares outstanding including participating securities | 1,776,486 | 1,769,112 | |||||||
Less: Participating securities | (25,709 | ) | (24,733 | ) | |||||
Weighted average shares | 1,750,777 | 1,744,379 | |||||||
Basic EPS | $ | 0.44 | $ | 0.57 | |||||
Diluted | |||||||||
Net earnings allocated to common stock | $ | 762,974 | $ | 996,811 | |||||
Weighted average shares for basic | 1,750,777 | 1,744,379 | |||||||
Dilutive effects of: | |||||||||
Stock Options | — | — | |||||||
Unvested shares not considered participating securities | — | — | |||||||
1,750,777 | 1,744,379 | ||||||||
Diluted EPS | $ | 0.44 | $ | 0.57 | |||||
Net earnings allocated to common stock for the period are distributed earnings during the period, such as dividends on common shares outstanding, plus a proportional amount of retained income for the period based on restricted shares granted but unvested compared to the total common shares outstanding. | |||||||||
Stock Based Compensation – The Company records compensation expense for stock options provided to employees in return for employment service. The cost is measured at the fair value of the options when granted, and this cost is expensed over the employment service period, which is normally the vesting period of the options. | |||||||||
Employee Stock Ownership Plan (“ESOP”) – The cost of shares issued to the ESOP, but not yet allocated to participants, is shown as a reduction of stockholders’ equity. Compensation expense is based on the market price of shares as they are committed to be released to participant accounts. Cash dividends on allocated ESOP shares reduce retained earnings; cash dividends on unearned ESOP shares reduce debt and accrued interest. | |||||||||
Stock Repurchase Programs – On September 8, 2008, the Company announced that its Board of Directors had authorized a Rule 10b5-1 stock repurchase program for the repurchase of up to 100,000 shares of the Company’s common stock. On April 21, 2009, the Company announced that its Board of Directors had authorized a second Rule 10b5-1 stock repurchase program for the repurchase of up to an additional 100,000 shares of the Company’s common stock. The Company has repurchased a total of 200,000 shares of its common stock under these stock repurchase programs, which were completed by the end of 2010. On September 14, 2011, the Company announced that its Board of Directors had authorized a third Rule 10b5-1 stock repurchase program for the repurchase of up to an additional 100,000 shares of the Company’s common stock. At September 30, 2013, the Company had repurchased a total of 49,200 shares of its common stock under this third stock repurchase program. Stock repurchases under the programs have been accounted for using the cost method, in which the Company will reflect the entire cost of repurchased shares as a separate reduction of stockholders’ equity on its balance sheet. | |||||||||
Retention and Recognition Plan – At the April 27, 2010 Annual Meeting, the stockholders of VSB Bancorp, Inc. approved the adoption of the 2010 Retention and Recognition Plan (the “RRP”). The RRP authorizes the award of up to 50,000 shares of its common stock to directors, officers and employees. In conjunction with the approval the RRP, stockholders approved the award of 4,000 shares of stock to each of its eight directors who had at least five years of service. The director awards will vest over five years, with 20% vesting annually for each of the first five years after the award is made, subject to acceleration and forfeiture. On April 27, 2011, 6,400 shares or 20% of the 32,000 shares of stock awarded to its eight directors who had at least five years of service had vested. On April 27, 2012, an additional 6,400 shares or 20% of the 32,000 shares of stock awarded to its eight directors who had at least five years of service had vested. On April 29, 2013, an additional 6,400 shares or 20% of the 32,000 shares of stock awarded to its eight directors who had at least five years of service had vested. On May 1, 2013, an additional 1,600 shares vested due to the retirement of a director. On June 8, 2010, an additional 3,500 shares of stock were awarded to the President and CEO of the Company, which will vest over a 65 month period, with 20% vesting annually for each of the first five years starting in November 2011, subject to acceleration and forfeiture. On November 16, 2011, 700 shares or 20% of the 3,500 shares of stock awarded to the President and CEO of the Company had vested. On November 16, 2012, an additional 700 shares or 20% of the 3,500 shares of stock awarded to the President and CEO of the Company had vested. On November 13, 2012, an additional 2,500 shares of stock were awarded to the President and CEO of the Company on an equal two year vesting beginning November 13, 2013. Also, on November 13, 2012, an additional 1,000 shares were awarded to seven non-employee directors on an equal two year vesting beginning November 13, 2013. The recipient of an award will not be required to make any payment to receive the award or the stock covered by the award. The Company recognizes compensation expense for the shares awarded under the RRP gradually as the shares vest, based upon the market price of the shares on the date of the award. | |||||||||
A summary of the status of the Company’s non-vested plan shares as of September 30, 2013 is as follows: | |||||||||
For the Nine Months Ended September 30, 2013: | |||||||||
Weighted Average | |||||||||
Shares | Grant Date Share Value | ||||||||
Non vested at beginning of period | 30,800 | $ | 11.25 | ||||||
Granted | — | ||||||||
Vested | 9,000 | $ | — | ||||||
Non vested at end of period | 21,800 | $ | 11.25 | ||||||
Comprehensive Income – Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses, net of taxes, on our securities’ portfolios which are also recognized as separate components of equity. | |||||||||
Recently-Adopted Accounting Standards – In February 2013, the FASB issued an Accounting Standards Update (“ASU”) to finalize the reporting requirements for reclassifications of amounts out of accumulated other comprehensive income (“AOCI”). Items reclassified out of AOCI to net income in their entirety must have the effect of the reclassification disclosed according to the respective income statement line item. This information must be provided either on the face of the financial statements by income statement line item, or in a footnote. For public companies, the amendments in the update became effective for interim and annual periods beginning on or after December 15, 2012. As of September 30, 2013, the Company’s adoption of this ASU had no impact on its results of operations. |
3_INVESTMENT_SECURITIES
3. INVESTMENT SECURITIES | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
INVESTMENT SECURITIES | ' | ||||||||||||||||||||||||
3. INVESTMENT SECURITIES | |||||||||||||||||||||||||
The following table summarizes the amortized cost and fair value of securities available-for-sale and securities held-to-maturity at September 30, 2013 and December 31, 2012 and the corresponding amounts of unrealized gains and losses herein: | |||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
Available-for-Sale | |||||||||||||||||||||||||
FNMA MBS - Residential | $ | 1,259,522 | $ | 63,600 | $ | — | $ | 1,323,122 | |||||||||||||||||
Whole Loan MBS - Residential | 138,646 | 3,007 | — | 141,653 | |||||||||||||||||||||
Collateralized mortgage obligations | 37,851,998 | 505,153 | (239,821 | ) | 38,117,330 | ||||||||||||||||||||
Collateralized loan obligations | 5,000,000 | 35,000 | — | 5,035,000 | |||||||||||||||||||||
Corporate bonds | 9,570,797 | — | (264,988 | ) | 9,305,809 | ||||||||||||||||||||
Other debt securities | 2,949,526 | 40,064 | — | 2,989,590 | |||||||||||||||||||||
Total Available-for-Sale | $ | 56,770,489 | $ | 646,824 | $ | (504,809 | ) | $ | 56,912,504 | ||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
Amortized | Unrecognized | Unrecognized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
Held-to-Maturity | |||||||||||||||||||||||||
FNMA MBS - Residential | $ | 58,103,774 | $ | 132,485 | $ | (475,584 | ) | $ | 57,760,675 | ||||||||||||||||
GNMA MBS - Residential | 3,953,859 | — | (24,307 | ) | 3,929,552 | ||||||||||||||||||||
Collateralized mortgage obligations | 37,900,841 | 8,341 | (470,894 | ) | 37,438,288 | ||||||||||||||||||||
Total Held-to-Maturity | $ | 99,958,474 | $ | 140,826 | $ | (970,785 | ) | $ | 99,128,515 | ||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||||
FNMA MBS - Residential | $ | 34,168,335 | $ | 869,590 | $ | (32,664 | ) | $ | 35,005,261 | ||||||||||||||||
GNMA MBS - Residential | 5,074,518 | 155,906 | — | 5,230,424 | |||||||||||||||||||||
Whole Loan MBS - Residential | 473,273 | 16,852 | — | 490,125 | |||||||||||||||||||||
Collateralized mortgage obligations | 60,483,873 | 1,597,293 | (96 | ) | 62,081,070 | ||||||||||||||||||||
Collateralized loan obligations | 1,000,000 | — | — | 1,000,000 | |||||||||||||||||||||
Other debt securities | 2,944,168 | 74,522 | — | 3,018,690 | |||||||||||||||||||||
Total Available-for-Sale | $ | 104,144,167 | $ | 2,714,163 | $ | (32,760 | ) | $ | 106,825,570 | ||||||||||||||||
There were no sales of investment securities for the nine months ended September 30, 2013 and 2012. | |||||||||||||||||||||||||
The amortized cost and fair value of the investment securities portfolio are shown by expected maturity. Expected maturities may differ from contractual maturities, especially for collateralized mortgage obligations, if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||||||
Available-for-Sale | Cost | Value | |||||||||||||||||||||||
Less than one year | $ | — | $ | — | |||||||||||||||||||||
Due after one year through five years | 8,264,158 | 8,308,027 | |||||||||||||||||||||||
Due after five years through ten years | 13,053,295 | 12,850,939 | |||||||||||||||||||||||
Due after ten years | 35,453,036 | 35,753,538 | |||||||||||||||||||||||
Available-for-Sale | $ | 56,770,489 | $ | 56,912,504 | |||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||||||
Held-to-Maturity | Cost | Value | |||||||||||||||||||||||
Less than one year | $ | — | $ | — | |||||||||||||||||||||
Due after one year through five years | 29,465,277 | 29,237,950 | |||||||||||||||||||||||
Due after five years through ten years | 29,722,179 | 29,596,276 | |||||||||||||||||||||||
Due after ten years | 40,771,018 | 40,294,289 | |||||||||||||||||||||||
Held-to-Maturity | $ | 99,958,474 | $ | 99,128,515 | |||||||||||||||||||||
The following table summarizes the investment securities with unrealized losses at September 30, 2013 and December 31, 2012 by aggregated major security type and length of time in a continuous unrealized loss position: | |||||||||||||||||||||||||
30-Sep-13 | Less than 12 months | More than 12 months | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Available-for-Sale | Value | Loss | Value | Loss | Value | Loss | |||||||||||||||||||
FNMA MBS | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
GNMA MBS | — | — | — | — | — | — | |||||||||||||||||||
Whole Loan MBS | — | — | — | — | — | — | |||||||||||||||||||
Collateralized mortgage obligations | 15,981,110 | (239,821 | ) | — | — | 15,981,110 | (239,821 | ) | |||||||||||||||||
Collateralized loan obligations | — | — | — | — | — | — | |||||||||||||||||||
Corporate bonds | 9,305,809 | (264,988 | ) | — | — | 9,305,809 | (264,988 | ) | |||||||||||||||||
Other debt securities | — | — | — | — | — | — | |||||||||||||||||||
Available-for-Sale | $ | 25,286,919 | $ | (504,809 | ) | $ | — | $ | — | $ | 25,286,919 | $ | (504,809 | ) | |||||||||||
30-Sep-13 | Less than 12 months | More than 12 months | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Held-to-Maturity | Value | Loss | Value | Loss | Value | Loss | |||||||||||||||||||
FNMA MBS | $ | 43,703,786 | $ | (475,584 | ) | $ | — | $ | — | $ | 43,703,786 | $ | (475,584 | ) | |||||||||||
GNMA MBS | 3,929,552 | (24,307 | ) | — | — | 3,929,552 | (24,307 | ) | |||||||||||||||||
Collateralized mortgage obligations | 30,454,114 | (470,894 | ) | — | — | 30,454,114 | (470,894 | ) | |||||||||||||||||
Held-to-Maturity | $ | 78,087,452 | $ | (970,785 | ) | $ | — | $ | — | $ | 78,087,452 | $ | (970,785 | ) | |||||||||||
31-Dec-12 | Less than 12 months | More than 12 months | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Available-for-Sale | Value | Loss | Value | Loss | Value | Loss | |||||||||||||||||||
FNMA MBS | $ | 4,499,561 | $ | (32,664 | ) | $ | — | $ | — | $ | 4,499,561 | $ | (32,664 | ) | |||||||||||
GNMA MBS | — | — | — | — | — | — | |||||||||||||||||||
Whole Loan MBS | — | — | — | — | — | — | |||||||||||||||||||
Collateralized mortgage obligations | 101,543 | (96 | ) | — | — | 101,543 | (96 | ) | |||||||||||||||||
Collateralized loan obligations | — | — | — | — | — | — | |||||||||||||||||||
Other debt securities | — | — | — | — | — | — | |||||||||||||||||||
Available-for-Sale | $ | 4,601,104 | $ | (32,760 | ) | $ | — | $ | — | $ | 4,601,104 | $ | (32,760 | ) | |||||||||||
The Company evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. In analyzing an issuer’s financial condition, the Company may consider whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition. | |||||||||||||||||||||||||
At September 30, 2013, the unrealized loss on investment securities was caused by a rise in intermediate and long term market interest rates generally. We expect that these securities, at maturity, will be settled for at least the amortized cost of the investment. Because the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell the securities and it is not more likely than not that the Company will be required to sell the securities before recovery of the amortized cost basis less any current-period loss, these investments are not considered other-than-temporarily impaired. At September 30, 2013, there were no debt securities with unrealized losses with aggregate depreciation of 5% or more from the Company’s amortized cost basis. | |||||||||||||||||||||||||
Securities pledged had a fair value of $62,090,144 and $66,043,504 at September 30, 2013 and December 31, 2012, respectively and were pledged to secure public deposits and balances in excess of the deposit insurance limit on certain customer accounts. | |||||||||||||||||||||||||
During the second quarter of 2013, $74,540,643 of securities was transferred from the available for sale portfolio to the held to maturity portfolio. These securities were transferred at fair value with the unrealized gain/loss remaining in accumulated other comprehensive income to be accreted or amortized through other comprehensive income over the remaining life of the securities. | |||||||||||||||||||||||||
4_FAIR_VALUE_MEASUREMENTS
4. FAIR VALUE MEASUREMENTS | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
FAIR VALUE MEASUREMENTS | ' | ||||||||||||||||||||
4. FAIR VALUE MEASUREMENTS | |||||||||||||||||||||
The following disclosure of the estimated fair value of financial instruments is made in accordance with the requirements of FASB ASC 820, “Financial Instruments”. The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is necessarily required to interpret market data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. | |||||||||||||||||||||
The following methods and assumptions were used by the Company in estimating fair values of financial instruments: | |||||||||||||||||||||
Interest-bearing Bank Balances – Interest-bearing bank balances mature within one year and are carried at cost, which are estimated to be reasonably close to fair value. | |||||||||||||||||||||
Money Market Investments – The fair value of these securities approximates their carrying value due to the relatively short time to maturity | |||||||||||||||||||||
Investment Securities, Available For Sale and Held To Maturity – The estimated fair value of these securities is determined by using available market information and appropriate valuation methodologies. The estimates presented herein are not necessarily indicative of the amounts that the Company could realize in a current market exchange. | |||||||||||||||||||||
Federal Home Loan Bank Stock – It is not practical to determine the fair value of FHLB stock due to restrictions placed on its transferability. | |||||||||||||||||||||
Loans Receivable – The fair value of commercial and construction loans is approximated by the carrying value as the loans are tied directly to the Prime Rate and are subject to change on a daily basis, subject to the applicable interest rate floors. The fair value of the remainder of the portfolio is determined by discounting the future cash flows of the loans using the appropriate discount rate. | |||||||||||||||||||||
Other Financial Assets – The fair value of these assets, principally accrued interest receivable, approximates their carrying value due to their short maturity. | |||||||||||||||||||||
Non-Interest Bearing and Interest Bearing Deposits – The fair value disclosed for non-interest bearing deposits is equal to the amount payable on demand at the reporting date. The fair value of interest bearing deposits is based upon the current rates for instruments of the same remaining maturity. Interest bearing deposits with a maturity of greater than one year are estimated using a discounted cash flow approach that applies interest rates currently being offered. | |||||||||||||||||||||
Other Liabilities – The estimated fair value of other liabilities, which primarily include accrued interest payable, approximates their carrying amount. | |||||||||||||||||||||
The carrying amounts and estimated fair values of financial instruments, at September 30, 2013 and December 31, 2012 are as follows: | |||||||||||||||||||||
Fair Value Measurements at September 30, 2013 Using | |||||||||||||||||||||
Significant | |||||||||||||||||||||
Quoted Prices in | Other | Significant | |||||||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||||||
Carrying | Identical Assets | Inputs | Inputs | ||||||||||||||||||
Value | (Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||||||
Financial Assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 63,257,198 | $ | 6,495,284 | $ | 56,761,914 | $ | — | $ | 63,257,198 | |||||||||||
Investment securities, available for sale | 56,912,504 | — | 51,877,504 | 5,035,000 | 56,912,504 | ||||||||||||||||
Investment securities, held to maturity | 99,958,474 | — | 99,128,515 | — | 99,128,515 | ||||||||||||||||
Loans receivable | 75,259,848 | — | — | 76,117,619 | 76,117,619 | ||||||||||||||||
Accrued interest receivable | 551,728 | — | 305,953 | 245,775 | 551,728 | ||||||||||||||||
Total Financial Assets | $ | 295,939,752 | $ | 6,495,284 | $ | 208,073,886 | $ | 81,398,394 | $ | 295,967,564 | |||||||||||
Financial Liabilities: | |||||||||||||||||||||
Deposits | $ | 271,090,463 | $ | 97,497,389 | $ | 173,425,360 | $ | — | $ | 270,922,749 | |||||||||||
Accrued interest payable | 17,108 | — | 17,108 | — | 17,108 | ||||||||||||||||
Total Financial Liabilities | $ | 271,107,571 | $ | 97,497,389 | $ | 173,442,468 | $ | — | $ | 270,939,857 | |||||||||||
Fair Value Measurements at December 31, 2012 Using | |||||||||||||||||||||
Significant | |||||||||||||||||||||
Quoted Prices in | Other | Significant | |||||||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||||||
Carrying | Identical Assets | Inputs | Inputs | ||||||||||||||||||
Value | (Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||||||
Financial Assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 77,728,426 | $ | 3,723,131 | $ | 74,005,295 | $ | — | $ | 77,728,426 | |||||||||||
Investment securities, available for sale | 106,825,570 | — | 105,825,570 | 1,000,000 | 106,825,570 | ||||||||||||||||
Loans receivable | 80,218,050 | — | — | 80,432,242 | 80,432,242 | ||||||||||||||||
Accrued interest receivable | 617,833 | — | 262,577 | 355,256 | 617,833 | ||||||||||||||||
Total Financial Assets | $ | 265,389,879 | $ | 3,723,131 | $ | 180,093,442 | $ | 81,787,498 | $ | 265,604,071 | |||||||||||
Financial Liabilities: | |||||||||||||||||||||
Deposits | $ | 240,701,206 | $ | 81,881,173 | $ | 158,706,059 | $ | — | $ | 240,587,232 | |||||||||||
Accrued interest payable | 13,920 | — | 13,920 | — | 13,920 | ||||||||||||||||
Total Financial Liabilities | $ | 240,715,126 | $ | 81,881,173 | $ | 158,719,979 | $ | — | $ | 240,601,152 | |||||||||||
ASC 820 establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: | |||||||||||||||||||||
Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. | |||||||||||||||||||||
Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. | |||||||||||||||||||||
Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing and asset or liability. | |||||||||||||||||||||
The fair value of securities available for sale and held to maturity is determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or using matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). | |||||||||||||||||||||
Fair Value Measurements at September 30, 2013 Using | |||||||||||||||||||||
Significant | |||||||||||||||||||||
Quoted Prices in | Other | Significant | |||||||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Assets: | |||||||||||||||||||||
Available for sale: | |||||||||||||||||||||
FNMA MBS - Residential | $ | 1,323,122 | $ | — | $ | 1,323,122 | $ | — | |||||||||||||
Whole Loan MBS- | |||||||||||||||||||||
Residential | 141,653 | — | 141,653 | — | |||||||||||||||||
Collateralized mortgage | |||||||||||||||||||||
obligations | 38,117,330 | — | 38,117,330 | — | |||||||||||||||||
Collateralized loan | |||||||||||||||||||||
obligations | 5,035,000 | — | — | 5,035,000 | |||||||||||||||||
Corporate bonds | 9,305,809 | — | 9,305,809 | — | |||||||||||||||||
Other debt securities | 2,989,590 | — | 2,989,590 | — | |||||||||||||||||
Total Available for sale Securities | $ | 56,912,504 | $ | — | $ | 51,877,504 | $ | 5,035,000 | |||||||||||||
Fair Value Measurements at December 31, 2012 Using | |||||||||||||||||||||
Significant | |||||||||||||||||||||
Quoted Prices in | Other | Significant | |||||||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Assets: | |||||||||||||||||||||
Available for sale: | |||||||||||||||||||||
FNMA MBS - Residential | $ | 35,005,261 | $ | — | $ | 35,005,261 | $ | — | |||||||||||||
GNMA MBS - Residential | 5,230,424 | — | 5,230,424 | — | |||||||||||||||||
Whole Loan MBS- | |||||||||||||||||||||
Residential | 490,125 | — | 490,125 | — | |||||||||||||||||
Collateralized mortgage | |||||||||||||||||||||
obligations | 62,081,070 | — | 62,081,070 | — | |||||||||||||||||
Collateralized loan | |||||||||||||||||||||
obligations | 1,000,000 | — | — | 1,000,000 | |||||||||||||||||
Other debt securities | 3,018,690 | — | 3,018,690 | — | |||||||||||||||||
Total Available for sale Securities | $ | 106,825,570 | $ | — | $ | 105,825,570 | $ | 1,000,000 | |||||||||||||
The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine months ended September 30, 2013: | |||||||||||||||||||||
Collateralized | |||||||||||||||||||||
Loan | |||||||||||||||||||||
Obligations | |||||||||||||||||||||
2013 | |||||||||||||||||||||
Balance of recurring Level 3 assets at January 1: | $ | 1,000,000 | |||||||||||||||||||
Total gains or losses for the period: | — | ||||||||||||||||||||
Included in earnings | — | ||||||||||||||||||||
Included in other comprehensive income | 35,000 | ||||||||||||||||||||
Purchases | 4,000,000 | ||||||||||||||||||||
Sales | — | ||||||||||||||||||||
Issuances | — | ||||||||||||||||||||
Settlements | |||||||||||||||||||||
Transfers into Level 3 | — | ||||||||||||||||||||
Transfers out of Level 3 | — | ||||||||||||||||||||
Balance of recurring Level 3 assets at September 30: | $ | 5,035,000 | |||||||||||||||||||
The following table presents quantitative information about recurring Level 3 fair value measurement at September 30, 2013: | |||||||||||||||||||||
Fair | Valuation | Unobservable | |||||||||||||||||||
Value | Techniques | Inputs | Range | ||||||||||||||||||
Collateralized loan obligations | $ | 5,035,000 | Discounted cash flow | Collateral default rate | 0%-2% | ||||||||||||||||
Recovery probability | 70%-100% | ||||||||||||||||||||
There were no transfers between levels from December 31, 2012 to September 30, 2013. | |||||||||||||||||||||
Assets Measured on a Non-Recurring | |||||||||||||||||||||
Certain financial assets are measured at fair value on a nonrecurring basis, that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). | |||||||||||||||||||||
Assets measured at a fair value on a non-recurring basis are summarized below: | |||||||||||||||||||||
Impaired Loans: The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. | |||||||||||||||||||||
Real Estate Owned: Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals which are updated no less frequently than annually. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. There were no write downs for real estate owned for the three and nine months ended September 30, 2013 and 2012. | |||||||||||||||||||||
Fair Value Measurements at September 30, 2013 Using | |||||||||||||||||||||
Significant | |||||||||||||||||||||
Quoted Prices in | Other | Significant | |||||||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Assets: | |||||||||||||||||||||
Impaired loans | |||||||||||||||||||||
Commercial Real Estate | $ | 1,039,204 | — | — | $ | 1,039,204 | |||||||||||||||
Other real estate owned | — | — | — | — | |||||||||||||||||
Fair Value Measurements at December 31, 2012 Using | |||||||||||||||||||||
Significant | |||||||||||||||||||||
Quoted Prices in | Other | Significant | |||||||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Assets: | |||||||||||||||||||||
Impaired loans | |||||||||||||||||||||
Commercial Real Estate | $ | 934,034 | — | — | $ | 934,034 | |||||||||||||||
Other real estate owned | 342,867 | — | — | 342,867 | |||||||||||||||||
As of September 30, 2013, we had three impaired loans with specific reserves that were collateral dependent. Collateral dependent impaired loans, which are measured for impairment using the fair value of the collateral, had a carrying amount of $1,373,021, with a valuation allowance of $ 333,817 at that date. The valuation allowance decreased $504,714 from December 31, 2012 to September 30, 2013. The unpaid principal balance on impaired loans at September 30, 2013 was $1,426,671. | |||||||||||||||||||||
As of December 31, 2012, we had four impaired loans with specific reserves that were collateral dependent. Collateral dependent impaired loans, which are measured for impairment using the fair value of the collateral, had a carrying amount of $1,772,565, with a valuation allowance of $838,531 at that date. The unpaid principal balance on impaired loans at December 31, 2012 was $1,792,790. | |||||||||||||||||||||
The following table presents quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at September 30, 2013. | |||||||||||||||||||||
Fair | Valuation | Unobservable | |||||||||||||||||||
Value | Techniques | Inputs | Range | ||||||||||||||||||
Impaired loans - Commercial real estate | $ | 521,844 | Third Party Appraisal | Discount adjustment for differences in various costs. | 0.01% | ||||||||||||||||
64,579 | Third Party Appraisal | Adjustments for differences between comparable sales. | 2% - 4% | ||||||||||||||||||
452,781 | Third Party Appraisal | Adjustments for differences in net operating income expectations | 4% - 13% | ||||||||||||||||||
Capitalization Rate | 5.75% | ||||||||||||||||||||
Third Party Appraisal | Adjustments for differences between comparable sales. | 2% - 6% |
5_LOANS_RECEIVABLE_NET
5. LOANS RECEIVABLE, NET | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
LOANS RECEIVABLE, NET | ' | ||||||||||||||||||||||||||||
5. LOANS RECEIVABLE, NET | |||||||||||||||||||||||||||||
Loans receivable, net at September 30, 2013 and December 31, 2012 are summarized as follows: | |||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Commercial loans (principally variable rate): | |||||||||||||||||||||||||||||
Secured | $ | 1,785,392 | $ | 2,050,728 | |||||||||||||||||||||||||
Unsecured | 15,155,159 | 16,502,920 | |||||||||||||||||||||||||||
Total commercial loans | 16,940,551 | 18,553,648 | |||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||
Commercial | 52,674,057 | 56,698,844 | |||||||||||||||||||||||||||
Residential | 2,460,097 | 2,498,603 | |||||||||||||||||||||||||||
Total real estate loans | 55,134,154 | 59,197,447 | |||||||||||||||||||||||||||
Construction loans (net of undisbursed funds of $1,571,000 and $2,854,500, respectively) | 3,254,000 | 3,112,477 | |||||||||||||||||||||||||||
Consumer loans | 722,281 | 565,573 | |||||||||||||||||||||||||||
Other loans | 668,214 | 768,790 | |||||||||||||||||||||||||||
1,390,495 | 1,334,363 | ||||||||||||||||||||||||||||
Total loans receivable | 76,719,200 | 82,197,935 | |||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||
Unearned loans fees, net | (198,898 | ) | (226,364 | ) | |||||||||||||||||||||||||
Allowance for loan losses | (1,260,454 | ) | (1,753,521 | ) | |||||||||||||||||||||||||
Total | $ | 75,259,848 | $ | 80,218,050 | |||||||||||||||||||||||||
Nonaccrual loans outstanding at September 30, 2013 and December 31, 2012 are summarized as follows: | |||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Nonaccrual loans: | |||||||||||||||||||||||||||||
Commercial real estate | $ | 4,334,938 | $ | 5,923,090 | |||||||||||||||||||||||||
Commercial secured | 88,021 | — | |||||||||||||||||||||||||||
Commercial unsecured | 245,913 | — | |||||||||||||||||||||||||||
Construction | 467,500 | 467,500 | |||||||||||||||||||||||||||
Total nonaccrual loans | $ | 5,136,372 | $ | 6,390,590 | |||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Interest income that would have been recorded during the period on nonaccrual loans outstanding in accordance with original terms | $ | 329,804 | $ | 478,556 | |||||||||||||||||||||||||
At September 30, 2013 and at December 31, 2012, there were no loans 90 days past due and still accruing interest. | |||||||||||||||||||||||||||||
The following table presents the aging of the past due loan balances as of September 30, 2013 and December 31, 2012 by class of loans: | |||||||||||||||||||||||||||||
30-Sep-13 | 30-59 | 60-89 | Greater | Loans | |||||||||||||||||||||||||
Days | Days | than 90 Days | Total | Not | |||||||||||||||||||||||||
Total | Past Due | Past Due | Past Due | Past Due | Past Due | ||||||||||||||||||||||||
Commercial loans: | |||||||||||||||||||||||||||||
Unsecured | $ | 15,155,159 | $ | 216,553 | $ | — | $ | 245,913 | $ | 462,466 | $ | 14,692,693 | |||||||||||||||||
Secured | 1,785,392 | — | — | 88,021 | — | 1,785,392 | |||||||||||||||||||||||
Real Estate loans | |||||||||||||||||||||||||||||
Commercial | 52,674,057 | 141,816 | — | 4,334,938 | 4,476,754 | 48,197,303 | |||||||||||||||||||||||
Residential | 2,460,097 | 100,051 | — | — | 100,051 | 2,360,046 | |||||||||||||||||||||||
Construction loans | 3,254,000 | — | 300,000 | 467,500 | 767,500 | 2,486,500 | |||||||||||||||||||||||
Consumer loans | 722,281 | — | — | — | — | 722,281 | |||||||||||||||||||||||
Other loans | 668,214 | 504 | — | — | 504 | 667,710 | |||||||||||||||||||||||
Total loans | $ | 76,719,200 | $ | 458,924 | $ | 300,000 | $ | 5,136,372 | $ | 5,807,275 | $ | 70,911,925 | |||||||||||||||||
31-Dec-12 | 30-59 | 60-89 | Greater | Loans | |||||||||||||||||||||||||
Days | Days | than 90 Days | Total | Not | |||||||||||||||||||||||||
Total | Past Due | Past Due | Past Due | Past Due | Past Due | ||||||||||||||||||||||||
Commercial loans: | |||||||||||||||||||||||||||||
Unsecured | $ | 16,502,920 | $ | 4,599 | $ | — | $ | — | $ | 4,599 | $ | 16,498,321 | |||||||||||||||||
Secured | 2,050,728 | — | 91,649 | — | 91,649 | 1,959,079 | |||||||||||||||||||||||
Real Estate loans | |||||||||||||||||||||||||||||
Commercial | 56,698,844 | 1,946,281 | 150,000 | 5,923,090 | 8,019,371 | 48,679,473 | |||||||||||||||||||||||
Residential | 2,498,603 | — | — | — | — | 2,498,603 | |||||||||||||||||||||||
Construction loans | 3,112,477 | — | — | 467,500 | 467,500 | 2,644,977 | |||||||||||||||||||||||
Consumer loans | 565,573 | — | 2,903 | — | 2,903 | 562,670 | |||||||||||||||||||||||
Other loans | 768,790 | — | — | — | — | 768,790 | |||||||||||||||||||||||
Total loans | $ | 82,197,935 | $ | 1,950,880 | $ | 244,552 | $ | 6,390,590 | $ | 8,586,022 | $ | 73,611,913 | |||||||||||||||||
Nonaccrual loans include smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment were as follows: | |||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Loans with no allocated allowance | |||||||||||||||||||||||||||||
for loan losses: | |||||||||||||||||||||||||||||
Commercial real estate | $ | 2,753,935 | $ | 3,924,469 | |||||||||||||||||||||||||
Commercial secured | 88,021 | — | |||||||||||||||||||||||||||
Construction | 467,500 | 467,500 | |||||||||||||||||||||||||||
Loans with allocated allowance | |||||||||||||||||||||||||||||
for loan losses: | |||||||||||||||||||||||||||||
Commercial real estate | 1,373,021 | 1,772,565 | |||||||||||||||||||||||||||
Commercial unsecured | 245,913 | — | |||||||||||||||||||||||||||
$ | 4,928,390 | $ | 6,164,534 | ||||||||||||||||||||||||||
Amount of the allowance for loan losses allocated: | |||||||||||||||||||||||||||||
Commercial real estate | $ | 333,817 | $ | 838,531 | |||||||||||||||||||||||||
Commercial unsecured | 49,182 | — | |||||||||||||||||||||||||||
$ | 382,999 | $ | 838,531 | ||||||||||||||||||||||||||
The following table sets forth certain information about impaired loans with a measured impairment for the three and nine months ended September 30, 2013 and 2012: | |||||||||||||||||||||||||||||
Three Months | Three Months | ||||||||||||||||||||||||||||
Ended | Ended | ||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Average of individually impaired loans during period: | |||||||||||||||||||||||||||||
Commercial real estate | $ | 4,582,437 | $ | 5,873,758 | |||||||||||||||||||||||||
Construction | 467,500 | — | |||||||||||||||||||||||||||
Commercial secured | 88,716 | — | |||||||||||||||||||||||||||
Commercial unsecured | 261,247 | — | |||||||||||||||||||||||||||
$ | 5,399,900 | $ | 5,873,758 | ||||||||||||||||||||||||||
Interest income recognized during time period that loans were impaired, either using accrual or cash-basis method of accounting | $ | 9,589 | $ | 304 | |||||||||||||||||||||||||
Nine Months | Nine Months | ||||||||||||||||||||||||||||
Ended | Ended | ||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Average of individually impaired loans during period: | |||||||||||||||||||||||||||||
Commercial real estate | $ | 4,655,481 | $ | 6,605,848 | |||||||||||||||||||||||||
Construction | 467,500 | 132,500 | |||||||||||||||||||||||||||
Commercial secured | 59,651 | — | |||||||||||||||||||||||||||
Residential real estate | — | 488,889 | |||||||||||||||||||||||||||
Commercial unsecured | 155,041 | — | |||||||||||||||||||||||||||
$ | 5,337,673 | $ | 7,227,237 | ||||||||||||||||||||||||||
Interest income recognized during time period that loans were impaired, either using accrual or cash-basis method of accounting | $ | 62,269 | $ | 304 | |||||||||||||||||||||||||
Troubled Debt Restructurings: | |||||||||||||||||||||||||||||
The Company has allocated $105,062 and $63,329 of specific reserves to customers whose loan terms have been modified in troubled debt restructurings (“TDRs”) as of September 30, 2013 and December 31, 2012, respectively. The Company has not committed to lend any additional amounts to customers with outstanding loans that are classified as TDRs. | |||||||||||||||||||||||||||||
The outstanding principal balance of trouble debt restructurings at September 30, 2013 was $5,431,492 and at December 31, 2012 was $5,826,633. None of the loans currently classified as TDRs have defaulted during the third quarter of 2013 and 2012. These TDRs are all current and are paying under the modified arrangements. | |||||||||||||||||||||||||||||
There was one loan that was modified during the nine months ended September 30, 2013 that did not meet the definition of a TDR. Modification of loans that do not meet the definition of a TDR involve either a modification of the terms of a loan to borrowers who were not experiencing financial difficulties or a delay in a payment that was considered to be insignificant. | |||||||||||||||||||||||||||||
In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. | |||||||||||||||||||||||||||||
The following table presents loans by class modified as troubled debt restructurings that occurred during the three and nine months ending September 30, 2013: | |||||||||||||||||||||||||||||
Pre-Modification | Post-Modification | ||||||||||||||||||||||||||||
Number | Outstanding Recorded | Outstanding Recorded | |||||||||||||||||||||||||||
of Loans | Investment | Investment | |||||||||||||||||||||||||||
Troubled Debt Restructurings: | |||||||||||||||||||||||||||||
Commercial real estate | 8 | $ | 245,913 | $ | 245,913 | ||||||||||||||||||||||||
The troubled debt restructurings described above required an additional allowance of $41,733 during the nine months ended September 30, 2013. | |||||||||||||||||||||||||||||
Credit Quality Indicators: | |||||||||||||||||||||||||||||
The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debts such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings: | |||||||||||||||||||||||||||||
Special Mention. Loans categorized as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position as some future date. | |||||||||||||||||||||||||||||
Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. | |||||||||||||||||||||||||||||
Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. | |||||||||||||||||||||||||||||
The following table sets forth at September 30, 2013 and December 31, 2012, the aggregate carrying value of our assets categorized as Special Mention, Substandard and Doubtful according to asset type: | |||||||||||||||||||||||||||||
At September 30, 2013 | |||||||||||||||||||||||||||||
Special | Not | ||||||||||||||||||||||||||||
Mention | Substandard | Doubtful | Classified | Total | |||||||||||||||||||||||||
Commercial Loans: | |||||||||||||||||||||||||||||
Secured | $ | — | $ | 88,021 | $ | — | $ | 1,697,371 | $ | 1,785,392 | |||||||||||||||||||
Unsecured | 269,243 | 245,913 | — | 14,640,003 | 15,155,159 | ||||||||||||||||||||||||
Commercial Real Estate | 6,487,429 | 5,976,365 | — | 40,210,263 | 52,674,057 | ||||||||||||||||||||||||
Residential Real Estate | — | 2,140,047 | — | 320,050 | 2,460,097 | ||||||||||||||||||||||||
Construction | 300,000 | 467,500 | — | 2,486,500 | 3,254,000 | ||||||||||||||||||||||||
Consumer | — | — | — | 722,281 | 722,281 | ||||||||||||||||||||||||
Other | 2,889 | — | — | 665,325 | 668,214 | ||||||||||||||||||||||||
Total loans | $ | 7,059,561 | $ | 8,917,846 | $ | — | $ | 60,741,793 | $ | 76,719,200 | |||||||||||||||||||
Real estate owned | — | — | — | — | — | ||||||||||||||||||||||||
Total assets | $ | 7,059,561 | $ | 8,917,846 | $ | — | $ | 60,741,793 | $ | 76,719,200 | |||||||||||||||||||
At December 31, 2012 | |||||||||||||||||||||||||||||
Special | Not | ||||||||||||||||||||||||||||
Mention | Substandard | Doubtful | Classified | Total | |||||||||||||||||||||||||
Commercial Loans: | |||||||||||||||||||||||||||||
Secured | $ | 91,649 | $ | — | $ | — | $ | 1,959,079 | $ | 2,050,728 | |||||||||||||||||||
Unsecured | 63,032 | — | — | 16,439,888 | 16,502,920 | ||||||||||||||||||||||||
Commercial Real Estate | 5,820,246 | 6,570,971 | — | 44,307,627 | 56,698,844 | ||||||||||||||||||||||||
Residential Real Estate | — | 2,174,455 | — | 324,148 | 2,498,603 | ||||||||||||||||||||||||
Construction | — | 467,500 | — | 2,644,977 | 3,112,477 | ||||||||||||||||||||||||
Consumer | — | — | — | 565,573 | 565,573 | ||||||||||||||||||||||||
Other | 3,746 | — | — | 765,044 | 768,790 | ||||||||||||||||||||||||
Total loans | $ | 5,978,673 | $ | 9,212,926 | $ | — | $ | 67,006,336 | $ | 82,197,935 | |||||||||||||||||||
Real estate owned | — | 342,867 | — | — | 342,867 | ||||||||||||||||||||||||
Total assets | $ | 5,978,673 | $ | 9,555,793 | $ | — | $ | 67,006,336 | $ | 82,540,802 | |||||||||||||||||||
The following table presents the balance in the allowance for loan losses and the recorded balance in loans, by portfolio segment, and based on impairment method as of September 30, 2013 and December 31, 2012: | |||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Other | |||||||||||||||||||||||||
Unsecured | Secured | Construction | Real Estate | Real Estate | Loans | Total | |||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Ending allowance balance attributable to loans | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 49,183 | $ | — | $ | — | $ | 372,103 | $ | — | $ | — | $ | 421,286 | |||||||||||||||
Collectively evaluated for impairment | 390,365 | 12,659 | 18,378 | 372,776 | 5,457 | 39,533 | 839,168 | ||||||||||||||||||||||
Total ending allowance balance | $ | 439,548 | $ | 12,659 | $ | 18,378 | $ | 744,879 | $ | 5,457 | $ | 39,533 | $ | 1,260,454 | |||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 245,913 | $ | 88,021 | $ | 467,500 | $ | 5,976,365 | $ | 2,140,047 | $ | — | $ | 8,917,846 | |||||||||||||||
Collectively evaluated for impairment | 14,909,246 | 1,697,371 | 2,786,500 | 46,697,692 | 320,050 | 1,390,495 | 67,801,354 | ||||||||||||||||||||||
Total ending loans balance | $ | 15,155,159 | $ | 1,785,392 | $ | 3,254,000 | $ | 52,674,057 | $ | 2,460,097 | $ | 1,390,495 | $ | 76,719,200 | |||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Other | |||||||||||||||||||||||||
Unsecured | Secured | Construction | Real Estate | Real Estate | Loans | Total | |||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Ending allowance balance attributable to loans | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | — | $ | — | $ | 853,108 | $ | — | $ | — | $ | 853,108 | |||||||||||||||
Collectively evaluated for impairment | 425,495 | 18,790 | 16,282 | 394,091 | 4,528 | 41,227 | 900,413 | ||||||||||||||||||||||
Total ending allowance balance | $ | 425,495 | $ | 18,790 | $ | 16,282 | $ | 1,247,199 | $ | 4,528 | $ | 41,227 | $ | 1,753,521 | |||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | — | $ | 467,500 | $ | 6,570,971 | $ | 2,174,455 | $ | — | $ | 9,212,926 | |||||||||||||||
Collectively evaluated for impairment | 16,502,920 | 2,050,728 | 2,644,977 | 50,127,873 | 324,148 | 1,334,363 | 72,985,009 | ||||||||||||||||||||||
Total ending loans balance | $ | 16,502,920 | $ | 2,050,728 | $ | 3,112,477 | $ | 56,698,844 | $ | 2,498,603 | $ | 1,334,363 | $ | 82,197,935 | |||||||||||||||
The following table presents the activity in the allowance for loan losses by portfolio segment for the three months and nine months ended September 30, 2013 and 2012. | |||||||||||||||||||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Other | |||||||||||||||||||||||||
Unsecured | Secured | Construction | Real Estate | Real Estate | Loans | Total | |||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Beginning balance | $ | 453,305 | $ | 30,194 | $ | 18,517 | $ | 710,884 | $ | 4,485 | $ | 34,202 | $ | 1,251,587 | |||||||||||||||
Provision for loan losses | (19,082 | ) | (17,535 | ) | (139 | ) | 28,995 | (2,420 | ) | 55,181 | 45,000 | ||||||||||||||||||
Loans charged-off | — | — | — | — | — | (50,000 | ) | (50,000 | ) | ||||||||||||||||||||
Recoveries | 5,325 | — | — | 5,000 | 3,392 | 150 | 13,867 | ||||||||||||||||||||||
Total ending allowance balance | $ | 439,548 | $ | 12,659 | $ | 18,378 | $ | 744,879 | $ | 5,457 | $ | 39,533 | $ | 1,260,454 | |||||||||||||||
Three months ended September 30, 2012 | |||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Other | |||||||||||||||||||||||||
Unsecured | Secured | Construction | Real Estate | Real Estate | Loans | Total | |||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Beginning balance | $ | 547,621 | $ | 13,678 | $ | 37,186 | $ | 930,883 | $ | 2,190 | $ | 50,839 | $ | 1,582,397 | |||||||||||||||
Provision for loan losses | (29,818 | ) | (2,235 | ) | (16,491 | ) | 86,237 | 999 | 1,308 | 40,000 | |||||||||||||||||||
Loans charged-off | — | — | — | — | — | (10,917 | ) | (10,917 | ) | ||||||||||||||||||||
Recoveries | 10,779 | — | — | 42,750 | — | 1,907 | 55,436 | ||||||||||||||||||||||
Total ending allowance balance | $ | 528,582 | $ | 11,443 | $ | 20,695 | $ | 1,059,870 | $ | 3,189 | $ | 43,137 | $ | 1,666,916 | |||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Other | |||||||||||||||||||||||||
Unsecured | Secured | Construction | Real Estate | Real Estate | Loans | Total | |||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Beginning balance | $ | 425,495 | $ | 18,790 | $ | 16,282 | $ | 1,247,199 | $ | 4,528 | $ | 41,227 | $ | 1,753,521 | |||||||||||||||
Provision for loan losses | (27,038 | ) | (6,131 | ) | 2,096 | 173,081 | (8,914 | ) | 46,906 | 180,000 | |||||||||||||||||||
Loans charged-off | — | — | — | (680,401 | ) | — | (50,000 | ) | (730,401 | ) | |||||||||||||||||||
Recoveries | 41,091 | — | — | 5,000 | 9,843 | 1,400 | 57,334 | ||||||||||||||||||||||
Total ending allowance balance | $ | 439,548 | $ | 12,659 | $ | 18,378 | $ | 744,879 | $ | 5,457 | $ | 39,533 | $ | 1,260,454 | |||||||||||||||
Nine months ended September 30, 2012 | |||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Other | |||||||||||||||||||||||||
Unsecured | Secured | Construction | Real Estate | Real Estate | Loans | Total | |||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Beginning balance | $ | 474,686 | $ | 12,356 | $ | 34,184 | $ | 780,820 | $ | 672 | $ | 40,302 | $ | 1,343,020 | |||||||||||||||
Provision for loan losses | 54,906 | (913 | ) | (13,489 | ) | 252,975 | (25,124 | ) | 11,645 | 280,000 | |||||||||||||||||||
Loans charged-off | (100,757 | ) | — | — | (16,675 | ) | — | (10,917 | ) | (128,349 | ) | ||||||||||||||||||
Recoveries | 99,747 | — | — | 42,750 | 27,641 | 2,107 | 172,245 | ||||||||||||||||||||||
Total ending allowance balance | $ | 528,582 | $ | 11,443 | $ | 20,695 | $ | 1,059,870 | $ | 3,189 | $ | 43,137 | $ | 1,666,916 |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Principles of Consolidation | ' | ||||||||
Principles of Consolidation – The consolidated financial statements of the Company include the accounts of the Company, including its subsidiary Victory State Bank. All significant inter-company accounts and transactions between the Company and Bank have been eliminated in consolidation. | |||||||||
Use of Estimates | ' | ||||||||
Use of Estimates – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the amounts of revenues and expenses during the reporting period. Actual results can differ from those estimates. The allowance for loan losses, prepayment estimates on the mortgage-backed securities and collateralized mortgage obligation portfolios, contingencies and fair values of financial instruments are particularly subject to change. | |||||||||
Reclassifications | ' | ||||||||
Reclassifications – Some items in the prior year financial statements were reclassified to conform to the current presentation. | |||||||||
Cash and Cash Equivalents | ' | ||||||||
Cash and Cash Equivalents – Cash and cash equivalents consist of cash on hand, due from banks and interest-bearing deposits. Interest-bearing deposits with original maturities of 90 days or less are included in this category. Customer loan and deposit transactions are reported on a net cash basis. Regulation D of the Board of Governors of the Federal Reserve System requires that Victory State Bank maintain interest-bearing deposits or cash on hand as reserves against its demand deposits. The amount of reserves which Victory State Bank is required to maintain depends upon its level of transaction accounts. During the fourteen day period from September 19, 2013 through October 2, 2013, Victory State Bank was required to maintain reserves, after deducting vault cash, of $5,574,000. Reserves are required to be maintained on a fourteen day basis, so, from time to time, Victory State Bank may use available cash reserves on a day to day basis, so long as the fourteen day average reserves satisfy Regulation D requirements. Victory State Bank is required to report transaction account levels to the Federal Reserve on a weekly basis. | |||||||||
Interest-bearing bank balances | ' | ||||||||
Interest-bearing bank balances – Interest-bearing bank balances mature overnight and are carried at cost. | |||||||||
Investment Securities, Available for Sale | ' | ||||||||
Investment Securities, Available for Sale – Investment securities, available for sale, are to be held for an unspecified period of time and include securities that management intends to use as part of its asset/liability strategy. These securities may be sold in response to changes in interest rates, prepayments or other factors and are carried at estimated fair value. Gains or losses on the sale of such securities are determined by the specific identification method. Interest income includes amortization of purchase premium and accretion of purchase discount. Premiums and discounts are recognized in interest income using a method that approximates the level yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are estimated. Unrealized holding gains or losses, net of deferred income taxes, are excluded from earnings and reported as other comprehensive income in a separate component of stockholders’ equity until realized. For debt securities with other than temporary impairment (OTTI) that management does not intend to sell or expect to be required to sell, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. | |||||||||
The Company invests primarily in agency collateralized mortgage-Backed obligations (“CMOs”) with estimated average lives primarily under 7 Years and mortgage-backed securities. These securities are primarily issued by the Federal National Mortgage Association (“FNMA”), the Government National Mortgage Association (“GNMA”) or the Federal Home Loan Mortgage Corporation (“FHLMC”) and are primarily comprised of mortgage pools guaranteed by FNMA, GNMA or FHLMC. The Company also invests in whole loan CMOs, collateralized loan obligations (“CLO”) and asset backed securities, all of which are AAA rated at the time of purchase, as well as corporate bonds, which are rated A or better at the time of purchase. These securities expose the Company to risks such as interest rate, prepayment and credit risk and thus pay a higher rate of return than comparable treasury issues. | |||||||||
Investment Securities, Held To Maturity | ' | ||||||||
Investment Securities, Held To Maturity – Investment securities, held to maturity are carried at amortized cost when management has the positive intent and ability to hold them to maturity. The Company invests in agency Collateralized Mortgage-Backed Obligations (“CMOs”) with average lives primarily under 7 years and balloon Mortgage-Backed Securities with a final maturity of ten years or less. These securities are primarily issued by the Federal National Mortgage Association (“FNMA”), the Government National Mortgage Association (“GNMA”) or the Federal Home Loan Mortgage Corporation (“FHLMC”) and are primarily comprised of mortgage pools guaranteed by FNMA, GNMA or FHLMC. | |||||||||
Loans Receivable | ' | ||||||||
Loans Receivable – Loans receivable, that management has the intent and ability to hold for the foreseeable future or until maturity or payoff, are stated at unpaid principal balances, adjusted for deferred net origination and commitment fees and the allowance for loan losses. Interest income on loans is credited as earned. | |||||||||
It is the policy of the Company to provide a valuation allowance for probable incurred losses on loans based on the Company’s past loan loss experience, known and inherent risks in the portfolio, adverse situations which may affect the borrower’s ability to repay, estimated value of underlying collateral and current economic conditions in the Company’s lending area. The allowance is increased by provisions for loan losses charged to earnings and is reduced by charge-offs, net of recoveries. While management uses available information to estimate losses on loans, future additions to the allowance may be necessary based upon the expected growth of the loan portfolio and any changes in economic conditions beyond management’s control. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses. Such agencies may require the Bank to recognize additions to the allowance based on judgments different from those of management. Management believes, based upon all relevant and available information, that the allowance for loan losses is appropriate. | |||||||||
The Company has a policy that all loans 90 days past due are placed on non-accrual status. It is the Company’s policy to cease the accrual of interest on loans to borrowers past due less than 90 days where a probable loss is estimated and to reverse out of income all interest that is due but has not been paid. The Company applies payments received on non-accrual loans to the outstanding principal balance due before applying any amount to interest, until the loan is restored to an accruing status. On a limited basis, the Company may apply a payment to interest on a non-accrual loan if there is no impairment or no estimated loss on these assets. The Company continues to accrue interest on construction loans that are 90 days past contractual maturity date if the loan is expected to be paid in full in the next 60 days and all interest is paid up to date. | |||||||||
Loan origination fees and certain direct loan origination costs are deferred and the net amount recognized over the contractual loan terms using the level-yield method, adjusted for periodic prepayments in certain circumstances. | |||||||||
The Company considers a loan to be impaired when, based on current information, it is probable that the Company will be unable to collect all principal and interest payments due according to the contractual terms of the loan agreement. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Impairment is measured on a loan by loan basis for commercial and construction loans. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, as a practical expedient, at the loan’s observable market price or the fair value of the collateral. The fair value of the collateral, as reduced by costs to sell, is utilized if a loan is collateral dependent. The fair value of the collateral is estimated by obtaining a new appraisal, if the loan amount exceeds $100,000, or by adjusting the most recent appraisal to reflect the current market if the loan is less than $100,000 or a more recent appraisal has yet to be received. Loans with modified terms that the Company would not normally consider, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. Large groups of homogeneous loans are collectively evaluated for impairment. | |||||||||
Long-Lived Assets | ' | ||||||||
Long-Lived Assets – The Company periodically evaluates the recoverability of long-lived assets, such as premises and equipment, to ensure the carrying value has not been impaired. In performing the review for recoverability, the Company would estimate the future cash flows expected to result from the use of the asset. If the sum of the expected future cash flows is less than the carrying amount, an impairment will be recognized. The Company reports these assets at the lower of the carrying value or fair value. | |||||||||
Premises and Equipment | ' | ||||||||
Premises and Equipment – Premises, leasehold improvements, and furniture and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are accumulated by the straight-line method over the estimated useful lives of the respective assets, which range from three to fifteen years. Leasehold improvements are amortized at the lesser of their useful life or the term of the lease. | |||||||||
Federal Home Loan Bank (FHLB) Stock | ' | ||||||||
Federal Home Loan Bank (FHLB) Stock – The Bank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment. Because this stock is viewed as a long term investment, impairment is based on ultimate recovery of par value, which is the price the Bank pays for the FHLB Stock. Both cash and stock dividends are reported as income. | |||||||||
Income Taxes | ' | ||||||||
Income Taxes – The Company utilizes the liability method to account for income taxes. Under this method, deferred tax assets and liabilities are determined on differences between financial reporting and the tax bases of assets and liabilities and are measured using the enacted tax rates and laws expected to be in effect when the differences are expected to reverse. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. As such, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. | |||||||||
The Company recognizes interest and/or penalties related to income tax matters in income tax expense. | |||||||||
Financial Instruments | ' | ||||||||
Financial Instruments – In the ordinary course of business, the Company has entered into off-balance sheet financial instruments, primarily consisting of commitments to extend credit. | |||||||||
Basic and Diluted Net Income Per Common Share | ' | ||||||||
Basic and Diluted Net Income Per Common Share – The Company has stock compensation awards with non-forfeitable dividend rights which are considered participating securities. As such, earnings per share is computed using the two-class method. Basic earnings per common share is computed by dividing net income allocated to common stock by the weighted average number of common shares outstanding during the period which excludes the participating securities. Diluted earnings per common share includes the dilutive effect of additional potential common shares from stock-based compensation plans, but excludes awards considered participating securities. Earnings and dividends per share are restated for all stock splits and stock dividends through the date of issuance of the financial statements. | |||||||||
Basic net income per share of common stock is based on 1,756,670 shares and 1,740,777 shares, the weighted average number of common shares outstanding for the three months ended September 30, 2013 and 2012, respectively. Diluted net income per share of common stock is based on 1,756,670 and 1,740,777, the weighted average number of common shares outstanding plus potentially dilutive common shares for the three months ended September 30, 2013 and 2012, respectively. The weighted average number of potentially dilutive common shares excluded in calculating diluted net income per common share due to the anti-dilutive effect is 48,452 and 48,267 shares for the three months ended September 30, 2013 and 2012, respectively. Common stock equivalents were calculated using the treasury stock method. | |||||||||
Basic net income per share of common stock is based on 1,750,777 shares and 1,744,379 shares, the weighted average number of common shares outstanding for the nine months ended September 30, 2013 and 2012, respectively. Diluted net income per share of common stock is based on 1,750,777 and 1,744,379, the weighted average number of common shares outstanding plus potentially dilutive common shares for the nine months ended September 30, 2013 and 2012, respectively. The weighted average number of potentially dilutive common shares excluded in calculating diluted net income per common share due to the anti-dilutive effect is 48,615 and 47,293 shares for the nine months ended September 30, 2013 and 2012, respectively. Common stock equivalents were calculated using the treasury stock method. | |||||||||
The reconciliation of the numerators and the denominators of the basic and diluted per share computations for the three and nine months ended September 30, are as follows: | |||||||||
Reconciliation of EPS | |||||||||
Three months ended | Three months ended | ||||||||
Sept. 30, 2013 | Sept. 30, 2012 | ||||||||
Basic | |||||||||
Distributed earnings allocated to common stock | $ | 105,400 | $ | 104,447 | |||||
Undistributed earnings allocated to common sock | 231,655 | 248,552 | |||||||
Net earnings allocated to common stock | $ | 337,055 | $ | 352,999 | |||||
Weighted common shares outstanding including participating securities | 1,778,470 | 1,762,777 | |||||||
Less: Participating securities | (21,800 | ) | (22,000 | ) | |||||
Weighted average shares | 1,756,670 | 1,740,777 | |||||||
Basic EPS | $ | 0.19 | $ | 0.2 | |||||
Diluted | |||||||||
Net earnings allocated to common stock | $ | 337,055 | $ | 352,999 | |||||
Weighted average shares for basic | 1,756,670 | 1,740,777 | |||||||
Dilutive effects of: | |||||||||
Stock Options | — | — | |||||||
Unvested shares not considered participating securities | — | — | |||||||
1,756,670 | 1,740,777 | ||||||||
Diluted EPS | $ | 0.19 | $ | 0.2 | |||||
Reconciliation of EPS | |||||||||
Nine months ended | Nine months ended | ||||||||
Sept. 30, 2013 | Sept. 30, 2012 | ||||||||
Basic | |||||||||
Distributed earnings allocated to common stock | $ | 315,140 | $ | 313,988 | |||||
Undistributed earnings allocated to common sock | 447,834 | 682,823 | |||||||
Net earnings allocated to common stock | $ | 762,974 | $ | 996,811 | |||||
Weighted common shares outstanding including participating securities | 1,776,486 | 1,769,112 | |||||||
Less: Participating securities | (25,709 | ) | (24,733 | ) | |||||
Weighted average shares | 1,750,777 | 1,744,379 | |||||||
Basic EPS | $ | 0.44 | $ | 0.57 | |||||
Diluted | |||||||||
Net earnings allocated to common stock | $ | 762,974 | $ | 996,811 | |||||
Weighted average shares for basic | 1,750,777 | 1,744,379 | |||||||
Dilutive effects of: | |||||||||
Stock Options | — | — | |||||||
Unvested shares not considered participating securities | — | — | |||||||
1,750,777 | 1,744,379 | ||||||||
Diluted EPS | $ | 0.44 | $ | 0.57 | |||||
Net earnings allocated to common stock for the period are distributed earnings during the period, such as dividends on common shares outstanding, plus a proportional amount of retained income for the period based on restricted shares granted but unvested compared to the total common shares outstanding. | |||||||||
Stock Based Compensation | ' | ||||||||
Stock Based Compensation – The Company records compensation expense for stock options provided to employees in return for employment service. The cost is measured at the fair value of the options when granted, and this cost is expensed over the employment service period, which is normally the vesting period of the options. | |||||||||
Employee Stock Ownership Plan ("ESOP") | ' | ||||||||
Employee Stock Ownership Plan (“ESOP”) – The cost of shares issued to the ESOP, but not yet allocated to participants, is shown as a reduction of stockholders’ equity. Compensation expense is based on the market price of shares as they are committed to be released to participant accounts. Cash dividends on allocated ESOP shares reduce retained earnings; cash dividends on unearned ESOP shares reduce debt and accrued interest. | |||||||||
Stock Repurchase Programs | ' | ||||||||
Stock Repurchase Programs – On September 8, 2008, the Company announced that its Board of Directors had authorized a Rule 10b5-1 stock repurchase program for the repurchase of up to 100,000 shares of the Company’s common stock. On April 21, 2009, the Company announced that its Board of Directors had authorized a second Rule 10b5-1 stock repurchase program for the repurchase of up to an additional 100,000 shares of the Company’s common stock. The Company has repurchased a total of 200,000 shares of its common stock under these stock repurchase programs, which were completed by the end of 2010. On September 14, 2011, the Company announced that its Board of Directors had authorized a third Rule 10b5-1 stock repurchase program for the repurchase of up to an additional 100,000 shares of the Company’s common stock. At September 30, 2013, the Company had repurchased a total of 49,200 shares of its common stock under this third stock repurchase program. Stock repurchases under the programs have been accounted for using the cost method, in which the Company will reflect the entire cost of repurchased shares as a separate reduction of stockholders’ equity on its balance sheet. | |||||||||
Retention and Recognition Plan | ' | ||||||||
Retention and Recognition Plan – At the April 27, 2010 Annual Meeting, the stockholders of VSB Bancorp, Inc. approved the adoption of the 2010 Retention and Recognition Plan (the “RRP”). The RRP authorizes the award of up to 50,000 shares of its common stock to directors, officers and employees. In conjunction with the approval the RRP, stockholders approved the award of 4,000 shares of stock to each of its eight directors who had at least five years of service. The director awards will vest over five years, with 20% vesting annually for each of the first five years after the award is made, subject to acceleration and forfeiture. On April 27, 2011, 6,400 shares or 20% of the 32,000 shares of stock awarded to its eight directors who had at least five years of service had vested. On April 27, 2012, an additional 6,400 shares or 20% of the 32,000 shares of stock awarded to its eight directors who had at least five years of service had vested. On April 29, 2013, an additional 6,400 shares or 20% of the 32,000 shares of stock awarded to its eight directors who had at least five years of service had vested. On May 1, 2013, an additional 1,600 shares vested due to the retirement of a director. On June 8, 2010, an additional 3,500 shares of stock were awarded to the President and CEO of the Company, which will vest over a 65 month period, with 20% vesting annually for each of the first five years starting in November 2011, subject to acceleration and forfeiture. On November 16, 2011, 700 shares or 20% of the 3,500 shares of stock awarded to the President and CEO of the Company had vested. On November 16, 2012, an additional 700 shares or 20% of the 3,500 shares of stock awarded to the President and CEO of the Company had vested. On November 13, 2012, an additional 2,500 shares of stock were awarded to the President and CEO of the Company on an equal two year vesting beginning November 13, 2013. Also, on November 13, 2012, an additional 1,000 shares were awarded to seven non-employee directors on an equal two year vesting beginning November 13, 2013. The recipient of an award will not be required to make any payment to receive the award or the stock covered by the award. The Company recognizes compensation expense for the shares awarded under the RRP gradually as the shares vest, based upon the market price of the shares on the date of the award. | |||||||||
A summary of the status of the Company’s non-vested plan shares as of September 30, 2013 is as follows: | |||||||||
For the Nine Months Ended September 30, 2013: | |||||||||
Weighted Average | |||||||||
Shares | Grant Date Share Value | ||||||||
Non vested at beginning of period | 30,800 | $ | 11.25 | ||||||
Granted | — | ||||||||
Vested | 9,000 | $ | — | ||||||
Non vested at end of period | 21,800 | $ | 11.25 | ||||||
Comprehensive Income | ' | ||||||||
Comprehensive Income – Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses, net of taxes, on our securities’ portfolios which are also recognized as separate components of equity. | |||||||||
Recently-Adopted Accounting Standards | ' | ||||||||
Recently-Adopted Accounting Standards – In February 2013, the FASB issued an Accounting Standards Update (“ASU”) to finalize the reporting requirements for reclassifications of amounts out of accumulated other comprehensive income (“AOCI”). Items reclassified out of AOCI to net income in their entirety must have the effect of the reclassification disclosed according to the respective income statement line item. This information must be provided either on the face of the financial statements by income statement line item, or in a footnote. For public companies, the amendments in the update became effective for interim and annual periods beginning on or after December 15, 2012. As of September 30, 2013, the Company’s adoption of this ASU had no impact on its results of operations. |
2_SUMMARY_OF_SIGNIFICANT_ACCOU1
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Schedule of Earnings Per Share, Basic and Diluted | ' | ||||||||
Reconciliation of EPS | |||||||||
Three months ended | Three months ended | ||||||||
Sept. 30, 2013 | Sept. 30, 2012 | ||||||||
Basic | |||||||||
Distributed earnings allocated to common stock | $ | 105,400 | $ | 104,447 | |||||
Undistributed earnings allocated to common sock | 231,655 | 248,552 | |||||||
Net earnings allocated to common stock | $ | 337,055 | $ | 352,999 | |||||
Weighted common shares outstanding including participating securities | 1,778,470 | 1,762,777 | |||||||
Less: Participating securities | (21,800 | ) | (22,000 | ) | |||||
Weighted average shares | 1,756,670 | 1,740,777 | |||||||
Basic EPS | $ | 0.19 | $ | 0.2 | |||||
Diluted | |||||||||
Net earnings allocated to common stock | $ | 337,055 | $ | 352,999 | |||||
Weighted average shares for basic | 1,756,670 | 1,740,777 | |||||||
Dilutive effects of: | |||||||||
Stock Options | — | — | |||||||
Unvested shares not considered participating securities | — | — | |||||||
1,756,670 | 1,740,777 | ||||||||
Diluted EPS | $ | 0.19 | $ | 0.2 | |||||
Reconciliation of EPS | |||||||||
Nine months ended | Nine months ended | ||||||||
Sept. 30, 2013 | Sept. 30, 2012 | ||||||||
Basic | |||||||||
Distributed earnings allocated to common stock | $ | 315,140 | $ | 313,988 | |||||
Undistributed earnings allocated to common sock | 447,834 | 682,823 | |||||||
Net earnings allocated to common stock | $ | 762,974 | $ | 996,811 | |||||
Weighted common shares outstanding including participating securities | 1,776,486 | 1,769,112 | |||||||
Less: Participating securities | (25,709 | ) | (24,733 | ) | |||||
Weighted average shares | 1,750,777 | 1,744,379 | |||||||
Basic EPS | $ | 0.44 | $ | 0.57 | |||||
Diluted | |||||||||
Net earnings allocated to common stock | $ | 762,974 | $ | 996,811 | |||||
Weighted average shares for basic | 1,750,777 | 1,744,379 | |||||||
Dilutive effects of: | |||||||||
Stock Options | — | — | |||||||
Unvested shares not considered participating securities | — | — | |||||||
1,750,777 | 1,744,379 | ||||||||
Diluted EPS | $ | 0.44 | $ | 0.57 | |||||
Schedule of Nonvested Share Activity | ' | ||||||||
A summary of the status of the Company’s non-vested plan shares as of September 30, 2013 is as follows: | |||||||||
For the Nine Months Ended September 30, 2013: | |||||||||
Weighted Average | |||||||||
Shares | Grant Date Share Value | ||||||||
Non vested at beginning of period | 30,800 | $ | 11.25 | ||||||
Granted | — | ||||||||
Vested | 9,000 | $ | — | ||||||
Non vested at end of period | 21,800 | $ | 11.25 |
3_INVESTMENT_SECURITIES_Tables
3. INVESTMENT SECURITIES (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Schedule of Available-for-sale Securities Reconciliation | ' | ||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
Available-for-Sale | |||||||||||||||||||||||||
FNMA MBS - Residential | $ | 1,259,522 | $ | 63,600 | $ | — | $ | 1,323,122 | |||||||||||||||||
Whole Loan MBS - Residential | 138,646 | 3,007 | — | 141,653 | |||||||||||||||||||||
Collateralized mortgage obligations | 37,851,998 | 505,153 | (239,821 | ) | 38,117,330 | ||||||||||||||||||||
Collateralized loan obligations | 5,000,000 | 35,000 | — | 5,035,000 | |||||||||||||||||||||
Corporate bonds | 9,570,797 | — | (264,988 | ) | 9,305,809 | ||||||||||||||||||||
Other debt securities | 2,949,526 | 40,064 | — | 2,989,590 | |||||||||||||||||||||
Total Available-for-Sale | $ | 56,770,489 | $ | 646,824 | $ | (504,809 | ) | $ | 56,912,504 | ||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
Amortized | Unrecognized | Unrecognized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
Held-to-Maturity | |||||||||||||||||||||||||
FNMA MBS - Residential | $ | 58,103,774 | $ | 132,485 | $ | (475,584 | ) | $ | 57,760,675 | ||||||||||||||||
GNMA MBS - Residential | 3,953,859 | — | (24,307 | ) | 3,929,552 | ||||||||||||||||||||
Collateralized mortgage obligations | 37,900,841 | 8,341 | (470,894 | ) | 37,438,288 | ||||||||||||||||||||
Total Held-to-Maturity | $ | 99,958,474 | $ | 140,826 | $ | (970,785 | ) | $ | 99,128,515 | ||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||||
FNMA MBS - Residential | $ | 34,168,335 | $ | 869,590 | $ | (32,664 | ) | $ | 35,005,261 | ||||||||||||||||
GNMA MBS - Residential | 5,074,518 | 155,906 | — | 5,230,424 | |||||||||||||||||||||
Whole Loan MBS - Residential | 473,273 | 16,852 | — | 490,125 | |||||||||||||||||||||
Collateralized mortgage obligations | 60,483,873 | 1,597,293 | (96 | ) | 62,081,070 | ||||||||||||||||||||
Collateralized loan obligations | 1,000,000 | — | — | 1,000,000 | |||||||||||||||||||||
Other debt securities | 2,944,168 | 74,522 | — | 3,018,690 | |||||||||||||||||||||
Total Available-for-Sale | $ | 104,144,167 | $ | 2,714,163 | $ | (32,760 | ) | $ | 106,825,570 | ||||||||||||||||
Available-for-sale Securities, Debt Maturities, Basis of Allocation | ' | ||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||||||
Available-for-Sale | Cost | Value | |||||||||||||||||||||||
Less than one year | $ | — | $ | — | |||||||||||||||||||||
Due after one year through five years | 8,264,158 | 8,308,027 | |||||||||||||||||||||||
Due after five years through ten years | 13,053,295 | 12,850,939 | |||||||||||||||||||||||
Due after ten years | 35,453,036 | 35,753,538 | |||||||||||||||||||||||
Available-for-Sale | $ | 56,770,489 | $ | 56,912,504 | |||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||||||
Held-to-Maturity | Cost | Value | |||||||||||||||||||||||
Less than one year | $ | — | $ | — | |||||||||||||||||||||
Due after one year through five years | 29,465,277 | 29,237,950 | |||||||||||||||||||||||
Due after five years through ten years | 29,722,179 | 29,596,276 | |||||||||||||||||||||||
Due after ten years | 40,771,018 | 40,294,289 | |||||||||||||||||||||||
Held-to-Maturity | $ | 99,958,474 | $ | 99,128,515 | |||||||||||||||||||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ' | ||||||||||||||||||||||||
The following table summarizes the investment securities with unrealized losses at September 30, 2013 and December 31, 2012 by aggregated major security type and length of time in a continuous unrealized loss position: | |||||||||||||||||||||||||
30-Sep-13 | Less than 12 months | More than 12 months | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Available-for-Sale | Value | Loss | Value | Loss | Value | Loss | |||||||||||||||||||
FNMA MBS | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
GNMA MBS | — | — | — | — | — | — | |||||||||||||||||||
Whole Loan MBS | — | — | — | — | — | — | |||||||||||||||||||
Collateralized mortgage obligations | 15,981,110 | (239,821 | ) | — | — | 15,981,110 | (239,821 | ) | |||||||||||||||||
Collateralized loan obligations | — | — | — | — | — | — | |||||||||||||||||||
Corporate bonds | 9,305,809 | (264,988 | ) | — | — | 9,305,809 | (264,988 | ) | |||||||||||||||||
Other debt securities | — | — | — | — | — | — | |||||||||||||||||||
Available-for-Sale | $ | 25,286,919 | $ | (504,809 | ) | $ | — | $ | — | $ | 25,286,919 | $ | (504,809 | ) | |||||||||||
30-Sep-13 | Less than 12 months | More than 12 months | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Held-to-Maturity | Value | Loss | Value | Loss | Value | Loss | |||||||||||||||||||
FNMA MBS | $ | 43,703,786 | $ | (475,584 | ) | $ | — | $ | — | $ | 43,703,786 | $ | (475,584 | ) | |||||||||||
GNMA MBS | 3,929,552 | (24,307 | ) | — | — | 3,929,552 | (24,307 | ) | |||||||||||||||||
Collateralized mortgage obligations | 30,454,114 | (470,894 | ) | — | — | 30,454,114 | (470,894 | ) | |||||||||||||||||
Held-to-Maturity | $ | 78,087,452 | $ | (970,785 | ) | $ | — | $ | — | $ | 78,087,452 | $ | (970,785 | ) | |||||||||||
31-Dec-12 | Less than 12 months | More than 12 months | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Available-for-Sale | Value | Loss | Value | Loss | Value | Loss | |||||||||||||||||||
FNMA MBS | $ | 4,499,561 | $ | (32,664 | ) | $ | — | $ | — | $ | 4,499,561 | $ | (32,664 | ) | |||||||||||
GNMA MBS | — | — | — | — | — | — | |||||||||||||||||||
Whole Loan MBS | — | — | — | — | — | — | |||||||||||||||||||
Collateralized mortgage obligations | 101,543 | (96 | ) | — | — | 101,543 | (96 | ) | |||||||||||||||||
Collateralized loan obligations | — | — | — | — | — | — | |||||||||||||||||||
Other debt securities | — | — | — | — | — | — | |||||||||||||||||||
Available-for-Sale | $ | 4,601,104 | $ | (32,760 | ) | $ | — | $ | — | $ | 4,601,104 | $ | (32,760 | ) |
4_FAIR_VALUE_MEASUREMENTS_Tabl
4. FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Fair Value, by Balance Sheet Grouping | ' | ||||||||||||||||||||
Fair Value Measurements at September 30, 2013 Using | |||||||||||||||||||||
Significant | |||||||||||||||||||||
Quoted Prices in | Other | Significant | |||||||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||||||
Carrying | Identical Assets | Inputs | Inputs | ||||||||||||||||||
Value | (Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||||||
Financial Assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 63,257,198 | $ | 6,495,284 | $ | 56,761,914 | $ | — | $ | 63,257,198 | |||||||||||
Investment securities, available for sale | 56,912,504 | — | 51,877,504 | 5,035,000 | 56,912,504 | ||||||||||||||||
Investment securities, held to maturity | 99,958,474 | — | 99,128,515 | — | 99,128,515 | ||||||||||||||||
Loans receivable | 75,259,848 | — | — | 76,117,619 | 76,117,619 | ||||||||||||||||
Accrued interest receivable | 551,728 | — | 305,953 | 245,775 | 551,728 | ||||||||||||||||
Total Financial Assets | $ | 295,939,752 | $ | 6,495,284 | $ | 208,073,886 | $ | 81,398,394 | $ | 295,967,564 | |||||||||||
Financial Liabilities: | |||||||||||||||||||||
Deposits | $ | 271,090,463 | $ | 97,497,389 | $ | 173,425,360 | $ | — | $ | 270,922,749 | |||||||||||
Accrued interest payable | 17,108 | — | 17,108 | — | 17,108 | ||||||||||||||||
Total Financial Liabilities | $ | 271,107,571 | $ | 97,497,389 | $ | 173,442,468 | $ | — | $ | 270,939,857 | |||||||||||
Fair Value Measurements at December 31, 2012 Using | |||||||||||||||||||||
Significant | |||||||||||||||||||||
Quoted Prices in | Other | Significant | |||||||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||||||
Carrying | Identical Assets | Inputs | Inputs | ||||||||||||||||||
Value | (Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||||||
Financial Assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 77,728,426 | $ | 3,723,131 | $ | 74,005,295 | $ | — | $ | 77,728,426 | |||||||||||
Investment securities, available for sale | 106,825,570 | — | 105,825,570 | 1,000,000 | 106,825,570 | ||||||||||||||||
Loans receivable | 80,218,050 | — | — | 80,432,242 | 80,432,242 | ||||||||||||||||
Accrued interest receivable | 617,833 | — | 262,577 | 355,256 | 617,833 | ||||||||||||||||
Total Financial Assets | $ | 265,389,879 | $ | 3,723,131 | $ | 180,093,442 | $ | 81,787,498 | $ | 265,604,071 | |||||||||||
Financial Liabilities: | |||||||||||||||||||||
Deposits | $ | 240,701,206 | $ | 81,881,173 | $ | 158,706,059 | $ | — | $ | 240,587,232 | |||||||||||
Accrued interest payable | 13,920 | — | 13,920 | — | 13,920 | ||||||||||||||||
Total Financial Liabilities | $ | 240,715,126 | $ | 81,881,173 | $ | 158,719,979 | $ | — | $ | 240,601,152 | |||||||||||
Available-for-sale Securities | ' | ||||||||||||||||||||
Fair Value Measurements at September 30, 2013 Using | |||||||||||||||||||||
Significant | |||||||||||||||||||||
Quoted Prices in | Other | Significant | |||||||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Assets: | |||||||||||||||||||||
Available for sale: | |||||||||||||||||||||
FNMA MBS - Residential | $ | 1,323,122 | $ | — | $ | 1,323,122 | $ | — | |||||||||||||
Whole Loan MBS- | |||||||||||||||||||||
Residential | 141,653 | — | 141,653 | — | |||||||||||||||||
Collateralized mortgage | |||||||||||||||||||||
obligations | 38,117,330 | — | 38,117,330 | — | |||||||||||||||||
Collateralized loan | |||||||||||||||||||||
obligations | 5,035,000 | — | — | 5,035,000 | |||||||||||||||||
Corporate bonds | 9,305,809 | — | 9,305,809 | — | |||||||||||||||||
Other debt securities | 2,989,590 | — | 2,989,590 | — | |||||||||||||||||
Total Available for sale Securities | $ | 56,912,504 | $ | — | $ | 51,877,504 | $ | 5,035,000 | |||||||||||||
Fair Value Measurements at December 31, 2012 Using | |||||||||||||||||||||
Significant | |||||||||||||||||||||
Quoted Prices in | Other | Significant | |||||||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Assets: | |||||||||||||||||||||
Available for sale: | |||||||||||||||||||||
FNMA MBS - Residential | $ | 35,005,261 | $ | — | $ | 35,005,261 | $ | — | |||||||||||||
GNMA MBS - Residential | 5,230,424 | — | 5,230,424 | — | |||||||||||||||||
Whole Loan MBS- | |||||||||||||||||||||
Residential | 490,125 | — | 490,125 | — | |||||||||||||||||
Collateralized mortgage | |||||||||||||||||||||
obligations | 62,081,070 | — | 62,081,070 | — | |||||||||||||||||
Collateralized loan | |||||||||||||||||||||
obligations | 1,000,000 | — | — | 1,000,000 | |||||||||||||||||
Other debt securities | 3,018,690 | — | 3,018,690 | — | |||||||||||||||||
Total Available for sale Securities | $ | 106,825,570 | $ | — | $ | 105,825,570 | $ | 1,000,000 | |||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | ' | ||||||||||||||||||||
Collateralized | |||||||||||||||||||||
Loan | |||||||||||||||||||||
Obligations | |||||||||||||||||||||
2013 | |||||||||||||||||||||
Balance of recurring Level 3 assets at January 1: | $ | 1,000,000 | |||||||||||||||||||
Total gains or losses for the period: | — | ||||||||||||||||||||
Included in earnings | — | ||||||||||||||||||||
Included in other comprehensive income | 35,000 | ||||||||||||||||||||
Purchases | 4,000,000 | ||||||||||||||||||||
Sales | — | ||||||||||||||||||||
Issuances | — | ||||||||||||||||||||
Settlements | |||||||||||||||||||||
Transfers into Level 3 | — | ||||||||||||||||||||
Transfers out of Level 3 | — | ||||||||||||||||||||
Balance of recurring Level 3 assets at September 30: | $ | 5,035,000 | |||||||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings, Description | ' | ||||||||||||||||||||
Fair | Valuation | Unobservable | |||||||||||||||||||
Value | Techniques | Inputs | Range | ||||||||||||||||||
Collateralized loan obligations | $ | 5,035,000 | Discounted cash flow | Collateral default rate | 0%-2% | ||||||||||||||||
Recovery probability | 70%-100% | ||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques | ' | ||||||||||||||||||||
Fair Value Measurements at September 30, 2013 Using | |||||||||||||||||||||
Significant | |||||||||||||||||||||
Quoted Prices in | Other | Significant | |||||||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Assets: | |||||||||||||||||||||
Impaired loans | |||||||||||||||||||||
Commercial Real Estate | $ | 1,039,204 | — | — | $ | 1,039,204 | |||||||||||||||
Other real estate owned | — | — | — | — | |||||||||||||||||
Fair Value Measurements at December 31, 2012 Using | |||||||||||||||||||||
Significant | |||||||||||||||||||||
Quoted Prices in | Other | Significant | |||||||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Assets: | |||||||||||||||||||||
Impaired loans | |||||||||||||||||||||
Commercial Real Estate | $ | 934,034 | — | — | $ | 934,034 | |||||||||||||||
Other real estate owned | 342,867 | — | — | 342,867 | |||||||||||||||||
Fair Value Measurements, Nonrecurring | ' | ||||||||||||||||||||
Fair | Valuation | Unobservable | |||||||||||||||||||
Value | Techniques | Inputs | Range | ||||||||||||||||||
Impaired loans - Commercial real estate | $ | 521,844 | Third Party Appraisal | Discount adjustment for differences in various costs. | 0.01% | ||||||||||||||||
64,579 | Third Party Appraisal | Adjustments for differences between comparable sales. | 2% - 4% | ||||||||||||||||||
452,781 | Third Party Appraisal | Adjustments for differences in net operating income expectations | 4% - 13% | ||||||||||||||||||
Capitalization Rate | 5.75% | ||||||||||||||||||||
Third Party Appraisal | Adjustments for differences between comparable sales. | 2% - 6% |
5_LOANS_RECEIVABLE_NET_Tables
5. LOANS RECEIVABLE, NET (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable | ' | ||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Commercial loans (principally variable rate): | |||||||||||||||||||||||||||||
Secured | $ | 1,785,392 | $ | 2,050,728 | |||||||||||||||||||||||||
Unsecured | 15,155,159 | 16,502,920 | |||||||||||||||||||||||||||
Total commercial loans | 16,940,551 | 18,553,648 | |||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||
Commercial | 52,674,057 | 56,698,844 | |||||||||||||||||||||||||||
Residential | 2,460,097 | 2,498,603 | |||||||||||||||||||||||||||
Total real estate loans | 55,134,154 | 59,197,447 | |||||||||||||||||||||||||||
Construction loans (net of undisbursed funds of $1,571,000 and $2,854,500, respectively) | 3,254,000 | 3,112,477 | |||||||||||||||||||||||||||
Consumer loans | 722,281 | 565,573 | |||||||||||||||||||||||||||
Other loans | 668,214 | 768,790 | |||||||||||||||||||||||||||
1,390,495 | 1,334,363 | ||||||||||||||||||||||||||||
Total loans receivable | 76,719,200 | 82,197,935 | |||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||
Unearned loans fees, net | (198,898 | ) | (226,364 | ) | |||||||||||||||||||||||||
Allowance for loan losses | (1,260,454 | ) | (1,753,521 | ) | |||||||||||||||||||||||||
Total | $ | 75,259,848 | $ | 80,218,050 | |||||||||||||||||||||||||
Schedule of Financing Receivables, Non Accrual Status | ' | ||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Nonaccrual loans: | |||||||||||||||||||||||||||||
Commercial real estate | $ | 4,334,938 | $ | 5,923,090 | |||||||||||||||||||||||||
Commercial secured | 88,021 | — | |||||||||||||||||||||||||||
Commercial unsecured | 245,913 | — | |||||||||||||||||||||||||||
Construction | 467,500 | 467,500 | |||||||||||||||||||||||||||
Total nonaccrual loans | $ | 5,136,372 | $ | 6,390,590 | |||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Interest income that would have been recorded during the period on nonaccrual loans outstanding in accordance with original terms | $ | 329,804 | $ | 478,556 | |||||||||||||||||||||||||
Loans and Leases Receivable, Past Due Status, Policy | ' | ||||||||||||||||||||||||||||
30-Sep-13 | 30-59 | 60-89 | Greater | Loans | |||||||||||||||||||||||||
Days | Days | than 90 Days | Total | Not | |||||||||||||||||||||||||
Total | Past Due | Past Due | Past Due | Past Due | Past Due | ||||||||||||||||||||||||
Commercial loans: | |||||||||||||||||||||||||||||
Unsecured | $ | 15,155,159 | $ | 216,553 | $ | — | $ | 245,913 | $ | 462,466 | $ | 14,692,693 | |||||||||||||||||
Secured | 1,785,392 | — | — | 88,021 | — | 1,785,392 | |||||||||||||||||||||||
Real Estate loans | |||||||||||||||||||||||||||||
Commercial | 52,674,057 | 141,816 | — | 4,334,938 | 4,476,754 | 48,197,303 | |||||||||||||||||||||||
Residential | 2,460,097 | 100,051 | — | — | 100,051 | 2,360,046 | |||||||||||||||||||||||
Construction loans | 3,254,000 | — | 300,000 | 467,500 | 767,500 | 2,486,500 | |||||||||||||||||||||||
Consumer loans | 722,281 | — | — | — | — | 722,281 | |||||||||||||||||||||||
Other loans | 668,214 | 504 | — | — | 504 | 667,710 | |||||||||||||||||||||||
Total loans | $ | 76,719,200 | $ | 458,924 | $ | 300,000 | $ | 5,136,372 | $ | 5,807,275 | $ | 70,911,925 | |||||||||||||||||
31-Dec-12 | 30-59 | 60-89 | Greater | Loans | |||||||||||||||||||||||||
Days | Days | than 90 Days | Total | Not | |||||||||||||||||||||||||
Total | Past Due | Past Due | Past Due | Past Due | Past Due | ||||||||||||||||||||||||
Commercial loans: | |||||||||||||||||||||||||||||
Unsecured | $ | 16,502,920 | $ | 4,599 | $ | — | $ | — | $ | 4,599 | $ | 16,498,321 | |||||||||||||||||
Secured | 2,050,728 | — | 91,649 | — | 91,649 | 1,959,079 | |||||||||||||||||||||||
Real Estate loans | |||||||||||||||||||||||||||||
Commercial | 56,698,844 | 1,946,281 | 150,000 | 5,923,090 | 8,019,371 | 48,679,473 | |||||||||||||||||||||||
Residential | 2,498,603 | — | — | — | — | 2,498,603 | |||||||||||||||||||||||
Construction loans | 3,112,477 | — | — | 467,500 | 467,500 | 2,644,977 | |||||||||||||||||||||||
Consumer loans | 565,573 | — | 2,903 | — | 2,903 | 562,670 | |||||||||||||||||||||||
Other loans | 768,790 | — | — | — | — | 768,790 | |||||||||||||||||||||||
Total loans | $ | 82,197,935 | $ | 1,950,880 | $ | 244,552 | $ | 6,390,590 | $ | 8,586,022 | $ | 73,611,913 | |||||||||||||||||
Impaired Financing Receivables | ' | ||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Loans with no allocated allowance | |||||||||||||||||||||||||||||
for loan losses: | |||||||||||||||||||||||||||||
Commercial real estate | $ | 2,753,935 | $ | 3,924,469 | |||||||||||||||||||||||||
Commercial secured | 88,021 | — | |||||||||||||||||||||||||||
Construction | 467,500 | 467,500 | |||||||||||||||||||||||||||
Loans with allocated allowance | |||||||||||||||||||||||||||||
for loan losses: | |||||||||||||||||||||||||||||
Commercial real estate | 1,373,021 | 1,772,565 | |||||||||||||||||||||||||||
Commercial unsecured | 245,913 | — | |||||||||||||||||||||||||||
$ | 4,928,390 | $ | 6,164,534 | ||||||||||||||||||||||||||
Amount of the allowance for loan losses allocated: | |||||||||||||||||||||||||||||
Commercial real estate | $ | 333,817 | $ | 838,531 | |||||||||||||||||||||||||
Commercial unsecured | 49,182 | — | |||||||||||||||||||||||||||
$ | 382,999 | $ | 838,531 | ||||||||||||||||||||||||||
Schedule Of Impaired Loans | ' | ||||||||||||||||||||||||||||
Three Months | Three Months | ||||||||||||||||||||||||||||
Ended | Ended | ||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Average of individually impaired loans during period: | |||||||||||||||||||||||||||||
Commercial real estate | $ | 4,582,437 | $ | 5,873,758 | |||||||||||||||||||||||||
Construction | 467,500 | — | |||||||||||||||||||||||||||
Commercial secured | 88,716 | — | |||||||||||||||||||||||||||
Commercial unsecured | 261,247 | — | |||||||||||||||||||||||||||
$ | 5,399,900 | $ | 5,873,758 | ||||||||||||||||||||||||||
Interest income recognized during time period that loans were impaired, either using accrual or cash-basis method of accounting | $ | 9,589 | $ | 304 | |||||||||||||||||||||||||
Nine Months | Nine Months | ||||||||||||||||||||||||||||
Ended | Ended | ||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Average of individually impaired loans during period: | |||||||||||||||||||||||||||||
Commercial real estate | $ | 4,655,481 | $ | 6,605,848 | |||||||||||||||||||||||||
Construction | 467,500 | 132,500 | |||||||||||||||||||||||||||
Commercial secured | 59,651 | — | |||||||||||||||||||||||||||
Residential real estate | — | 488,889 | |||||||||||||||||||||||||||
Commercial unsecured | 155,041 | — | |||||||||||||||||||||||||||
$ | 5,337,673 | $ | 7,227,237 | ||||||||||||||||||||||||||
Interest income recognized during time period that loans were impaired, either using accrual or cash-basis method of accounting | $ | 62,269 | $ | 304 | |||||||||||||||||||||||||
Schedule of Troubled Debt Restructuring | ' | ||||||||||||||||||||||||||||
Pre-Modification | Post-Modification | ||||||||||||||||||||||||||||
Number | Outstanding Recorded | Outstanding Recorded | |||||||||||||||||||||||||||
of Loans | Investment | Investment | |||||||||||||||||||||||||||
Troubled Debt Restructurings: | |||||||||||||||||||||||||||||
Commercial real estate | 8 | $ | 245,913 | $ | 245,913 | ||||||||||||||||||||||||
Schedule of Financing Receivable Credit Quality Indicators | ' | ||||||||||||||||||||||||||||
At September 30, 2013 | |||||||||||||||||||||||||||||
Special | Not | ||||||||||||||||||||||||||||
Mention | Substandard | Doubtful | Classified | Total | |||||||||||||||||||||||||
Commercial Loans: | |||||||||||||||||||||||||||||
Secured | $ | — | $ | 88,021 | $ | — | $ | 1,697,371 | $ | 1,785,392 | |||||||||||||||||||
Unsecured | 269,243 | 245,913 | — | 14,640,003 | 15,155,159 | ||||||||||||||||||||||||
Commercial Real Estate | 6,487,429 | 5,976,365 | — | 40,210,263 | 52,674,057 | ||||||||||||||||||||||||
Residential Real Estate | — | 2,140,047 | — | 320,050 | 2,460,097 | ||||||||||||||||||||||||
Construction | 300,000 | 467,500 | — | 2,486,500 | 3,254,000 | ||||||||||||||||||||||||
Consumer | — | — | — | 722,281 | 722,281 | ||||||||||||||||||||||||
Other | 2,889 | — | — | 665,325 | 668,214 | ||||||||||||||||||||||||
Total loans | $ | 7,059,561 | $ | 8,917,846 | $ | — | $ | 60,741,793 | $ | 76,719,200 | |||||||||||||||||||
Real estate owned | — | — | — | — | — | ||||||||||||||||||||||||
Total assets | $ | 7,059,561 | $ | 8,917,846 | $ | — | $ | 60,741,793 | $ | 76,719,200 | |||||||||||||||||||
At December 31, 2012 | |||||||||||||||||||||||||||||
Special | Not | ||||||||||||||||||||||||||||
Mention | Substandard | Doubtful | Classified | Total | |||||||||||||||||||||||||
Commercial Loans: | |||||||||||||||||||||||||||||
Secured | $ | 91,649 | $ | — | $ | — | $ | 1,959,079 | $ | 2,050,728 | |||||||||||||||||||
Unsecured | 63,032 | — | — | 16,439,888 | 16,502,920 | ||||||||||||||||||||||||
Commercial Real Estate | 5,820,246 | 6,570,971 | — | 44,307,627 | 56,698,844 | ||||||||||||||||||||||||
Residential Real Estate | — | 2,174,455 | — | 324,148 | 2,498,603 | ||||||||||||||||||||||||
Construction | — | 467,500 | — | 2,644,977 | 3,112,477 | ||||||||||||||||||||||||
Consumer | — | — | — | 565,573 | 565,573 | ||||||||||||||||||||||||
Other | 3,746 | — | — | 765,044 | 768,790 | ||||||||||||||||||||||||
Total loans | $ | 5,978,673 | $ | 9,212,926 | $ | — | $ | 67,006,336 | $ | 82,197,935 | |||||||||||||||||||
Real estate owned | — | 342,867 | — | — | 342,867 | ||||||||||||||||||||||||
Total assets | $ | 5,978,673 | $ | 9,555,793 | $ | — | $ | 67,006,336 | $ | 82,540,802 | |||||||||||||||||||
Allowance for Credit Losses on Financing Receivables | ' | ||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Other | |||||||||||||||||||||||||
Unsecured | Secured | Construction | Real Estate | Real Estate | Loans | Total | |||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Ending allowance balance attributable to loans | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 49,183 | $ | — | $ | — | $ | 372,103 | $ | — | $ | — | $ | 421,286 | |||||||||||||||
Collectively evaluated for impairment | 390,365 | 12,659 | 18,378 | 372,776 | 5,457 | 39,533 | 839,168 | ||||||||||||||||||||||
Total ending allowance balance | $ | 439,548 | $ | 12,659 | $ | 18,378 | $ | 744,879 | $ | 5,457 | $ | 39,533 | $ | 1,260,454 | |||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 245,913 | $ | 88,021 | $ | 467,500 | $ | 5,976,365 | $ | 2,140,047 | $ | — | $ | 8,917,846 | |||||||||||||||
Collectively evaluated for impairment | 14,909,246 | 1,697,371 | 2,786,500 | 46,697,692 | 320,050 | 1,390,495 | 67,801,354 | ||||||||||||||||||||||
Total ending loans balance | $ | 15,155,159 | $ | 1,785,392 | $ | 3,254,000 | $ | 52,674,057 | $ | 2,460,097 | $ | 1,390,495 | $ | 76,719,200 | |||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Other | |||||||||||||||||||||||||
Unsecured | Secured | Construction | Real Estate | Real Estate | Loans | Total | |||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Ending allowance balance attributable to loans | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | — | $ | — | $ | 853,108 | $ | — | $ | — | $ | 853,108 | |||||||||||||||
Collectively evaluated for impairment | 425,495 | 18,790 | 16,282 | 394,091 | 4,528 | 41,227 | 900,413 | ||||||||||||||||||||||
Total ending allowance balance | $ | 425,495 | $ | 18,790 | $ | 16,282 | $ | 1,247,199 | $ | 4,528 | $ | 41,227 | $ | 1,753,521 | |||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | — | $ | 467,500 | $ | 6,570,971 | $ | 2,174,455 | $ | — | $ | 9,212,926 | |||||||||||||||
Collectively evaluated for impairment | 16,502,920 | 2,050,728 | 2,644,977 | 50,127,873 | 324,148 | 1,334,363 | 72,985,009 | ||||||||||||||||||||||
Total ending loans balance | $ | 16,502,920 | $ | 2,050,728 | $ | 3,112,477 | $ | 56,698,844 | $ | 2,498,603 | $ | 1,334,363 | $ | 82,197,935 | |||||||||||||||
Allowance For Loan Losses By Portfolio Segment | ' | ||||||||||||||||||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Other | |||||||||||||||||||||||||
Unsecured | Secured | Construction | Real Estate | Real Estate | Loans | Total | |||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Beginning balance | $ | 453,305 | $ | 30,194 | $ | 18,517 | $ | 710,884 | $ | 4,485 | $ | 34,202 | $ | 1,251,587 | |||||||||||||||
Provision for loan losses | (19,082 | ) | (17,535 | ) | (139 | ) | 28,995 | (2,420 | ) | 55,181 | 45,000 | ||||||||||||||||||
Loans charged-off | — | — | — | — | — | (50,000 | ) | (50,000 | ) | ||||||||||||||||||||
Recoveries | 5,325 | — | — | 5,000 | 3,392 | 150 | 13,867 | ||||||||||||||||||||||
Total ending allowance balance | $ | 439,548 | $ | 12,659 | $ | 18,378 | $ | 744,879 | $ | 5,457 | $ | 39,533 | $ | 1,260,454 | |||||||||||||||
Three months ended September 30, 2012 | |||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Other | |||||||||||||||||||||||||
Unsecured | Secured | Construction | Real Estate | Real Estate | Loans | Total | |||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Beginning balance | $ | 547,621 | $ | 13,678 | $ | 37,186 | $ | 930,883 | $ | 2,190 | $ | 50,839 | $ | 1,582,397 | |||||||||||||||
Provision for loan losses | (29,818 | ) | (2,235 | ) | (16,491 | ) | 86,237 | 999 | 1,308 | 40,000 | |||||||||||||||||||
Loans charged-off | — | — | — | — | — | (10,917 | ) | (10,917 | ) | ||||||||||||||||||||
Recoveries | 10,779 | — | — | 42,750 | — | 1,907 | 55,436 | ||||||||||||||||||||||
Total ending allowance balance | $ | 528,582 | $ | 11,443 | $ | 20,695 | $ | 1,059,870 | $ | 3,189 | $ | 43,137 | $ | 1,666,916 | |||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Other | |||||||||||||||||||||||||
Unsecured | Secured | Construction | Real Estate | Real Estate | Loans | Total | |||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Beginning balance | $ | 425,495 | $ | 18,790 | $ | 16,282 | $ | 1,247,199 | $ | 4,528 | $ | 41,227 | $ | 1,753,521 | |||||||||||||||
Provision for loan losses | (27,038 | ) | (6,131 | ) | 2,096 | 173,081 | (8,914 | ) | 46,906 | 180,000 | |||||||||||||||||||
Loans charged-off | — | — | — | (680,401 | ) | — | (50,000 | ) | (730,401 | ) | |||||||||||||||||||
Recoveries | 41,091 | — | — | 5,000 | 9,843 | 1,400 | 57,334 | ||||||||||||||||||||||
Total ending allowance balance | $ | 439,548 | $ | 12,659 | $ | 18,378 | $ | 744,879 | $ | 5,457 | $ | 39,533 | $ | 1,260,454 | |||||||||||||||
Nine months ended September 30, 2012 | |||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Other | |||||||||||||||||||||||||
Unsecured | Secured | Construction | Real Estate | Real Estate | Loans | Total | |||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Beginning balance | $ | 474,686 | $ | 12,356 | $ | 34,184 | $ | 780,820 | $ | 672 | $ | 40,302 | $ | 1,343,020 | |||||||||||||||
Provision for loan losses | 54,906 | (913 | ) | (13,489 | ) | 252,975 | (25,124 | ) | 11,645 | 280,000 | |||||||||||||||||||
Loans charged-off | (100,757 | ) | — | — | (16,675 | ) | — | (10,917 | ) | (128,349 | ) | ||||||||||||||||||
Recoveries | 99,747 | — | — | 42,750 | 27,641 | 2,107 | 172,245 | ||||||||||||||||||||||
Total ending allowance balance | $ | 528,582 | $ | 11,443 | $ | 20,695 | $ | 1,059,870 | $ | 3,189 | $ | 43,137 | $ | 1,666,916 | |||||||||||||||
2_SUMMARY_OF_SIGNIFICANT_ACCOU2
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 18 Months Ended | 26 Months Ended | 9 Months Ended | 4 Months Ended | 10 Months Ended | |||||||||||
Nov. 16, 2012 | Nov. 16, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Apr. 29, 2013 | Apr. 27, 2012 | Apr. 27, 2011 | Nov. 15, 2011 | Dec. 31, 2010 | Sep. 14, 2011 | Apr. 27, 2010 | Apr. 21, 2009 | Sep. 08, 2008 | Sep. 30, 2013 | Sep. 30, 2013 | 1-May-13 | Nov. 13, 2012 | Nov. 13, 2012 | |
Collateralized Mortgage Backed Securities [Member] | Balloon Mortgage Backed Securities [Member] | Director [Member] | Director [Member] | Chief Executive Officer [Member] | ||||||||||||||||
Cash Reserve Deposit Required And Made Period Of Time | ' | ' | ' | ' | '14 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash Reserve Deposit Required and Made (in Dollars) | ' | ' | $5,574,000 | ' | $5,574,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Number of Shares Outstanding, Basic (in Shares) | ' | ' | 1,756,670 | 1,740,777 | 1,750,777 | 1,744,379 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Number of Shares Outstanding, Diluted (in Shares) | ' | ' | 1,756,670 | 1,740,777 | 1,750,777 | 1,744,379 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings Per Share, Potentially Dilutive Securities | ' | ' | '48,452 | '48,267 | '48,615 | '47,293 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | 100,000 | 100,000 | ' | ' | ' | ' | ' |
Stock Repurchased During Period, Shares (in Shares) | ' | ' | ' | ' | 49,200 | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | 4,000 | 3,500 | ' | ' | ' | ' | ' | ' | ' | 1,600 | 1,000 | 2,500 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | ' | ' | ' | ' | ' | ' | '5 years | '5 years | '5 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '65 months | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | '2 years |
Percent Of Share-Based Compensation Award Vested During Period | 20.00% | 20.00% | ' | ' | ' | ' | 20.00% | 20.00% | 20.00% | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Shares of Stock Awarded | 3,500 | 3,500 | ' | ' | ' | ' | 32,000 | 32,000 | 32,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (in Shares) | 700 | 700 | ' | ' | ' | ' | 6,400 | 6,400 | 6,400 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average Lives Of Investment Securities Held To Maturity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 years | ' | ' | ' | ' |
Investment Securities Held To Maturity, Final Maturity Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' |
Estimated useful lives of premises and equipment | ' | ' | ' | ' | 'three to fifteen years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2_SUMMARY_OF_SIGNIFICANT_ACCOU3
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail) - (Table 1) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Distributed earnings allocated to common stock (in Dollars) | $105,400 | $104,447 | $315,140 | $313,988 |
Undistributed earnings allocated to common sock (in Dollars) | 231,655 | 248,552 | 447,834 | 682,823 |
Net earnings allocated to common stock (in Dollars) | $337,055 | $352,999 | $762,974 | $996,811 |
Weighted common shares outstanding including participating securities | 1,778,470 | 1,762,777 | 1,776,486 | 1,769,112 |
Less: Participating securities | -21,800 | -22,000 | -25,709 | -24,733 |
Weighted average shares | 1,756,670 | 1,740,777 | 1,750,777 | 1,744,379 |
Dilutive effects of: | ' | ' | ' | ' |
Weighted average shares for basic, Total | 1,756,670 | 1,740,777 | 1,750,777 | 1,744,379 |
Basic EPS (in Dollars per share) | $0.19 | $0.20 | $0.44 | $0.57 |
Diluted EPS (in Dollars per share) | $0.19 | $0.20 | $0.44 | $0.57 |
2_SUMMARY_OF_SIGNIFICANT_ACCOU4
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail) - (Table 2) (USD $) | 0 Months Ended | 12 Months Ended | 9 Months Ended | |||||||
Nov. 16, 2012 | Nov. 16, 2011 | Apr. 29, 2013 | Apr. 27, 2012 | Apr. 27, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Beginning Of Period, Non Vested RPP Plan Disclosure [Member] | Beginning Of Period, Non Vested RPP Plan Disclosure [Member] | Granted, Non vested RPP Plan Disclosure [Member] | Vested, Non Vested RPP Plan Disclosure [Member] | End Of Period, Non Vested RPP Plan Disclosure [Member] | ||||||
Shares | ' | ' | ' | ' | ' | ' | 30,800 | ' | ' | 21,800 |
Weighted Average Grant Date Share Value (in Dollars per share) | ' | ' | ' | ' | ' | $11.25 | ' | ' | ' | $11.25 |
Granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested | 700 | 700 | 6,400 | 6,400 | 6,400 | ' | ' | ' | 9,000 | ' |
Vested (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares | ' | ' | ' | ' | ' | ' | 30,800 | ' | ' | 21,800 |
3_INVESTMENT_SECURITIES_Detail
3. INVESTMENT SECURITIES (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
Available-for-sale Securities Pledged as Collateral | ' | $62,090,144 | $66,043,504 |
Transfer to Investments | $74,540,643 | $74,540,643 | ' |
3_INVESTMENT_SECURITIES_Detail1
3. INVESTMENT SECURITIES (Detail) - (Table 1) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Held-to-Maturity | ' | ' |
Fair Value | $99,128,515 | ' |
FNMA MBS - Residential [Member] | ' | ' |
Available-for-sale securities: | ' | ' |
Amortized Cost | 1,259,522 | 34,168,335 |
Unrealized Gains | 63,600 | 869,590 |
Unrealized Losses | ' | -32,664 |
Investment securities, available for sale | 1,323,122 | 35,005,261 |
Held-to-Maturity | ' | ' |
Amortized Cost | 58,103,774 | ' |
Gross Unrecognized Gains | 132,485 | ' |
Gross Unrecognized Losses | -475,584 | ' |
Fair Value | 57,760,675 | ' |
GNMA MBS - Residential [Member] | ' | ' |
Available-for-sale securities: | ' | ' |
Amortized Cost | ' | 5,074,518 |
Unrealized Gains | ' | 155,906 |
Unrealized Losses | ' | ' |
Investment securities, available for sale | ' | 5,230,424 |
Held-to-Maturity | ' | ' |
Amortized Cost | 3,953,859 | ' |
Gross Unrecognized Gains | ' | ' |
Gross Unrecognized Losses | -24,307 | ' |
Fair Value | 3,929,552 | ' |
Whole Loan MBS - Residential [Member] | ' | ' |
Available-for-sale securities: | ' | ' |
Amortized Cost | 138,646 | 473,273 |
Unrealized Gains | 3,007 | 16,852 |
Unrealized Losses | ' | ' |
Investment securities, available for sale | 141,653 | 490,125 |
Collateralized Mortgage Backed Securities [Member] | ' | ' |
Available-for-sale securities: | ' | ' |
Amortized Cost | 37,851,998 | 60,483,873 |
Unrealized Gains | 505,153 | 1,597,293 |
Unrealized Losses | -239,821 | -96 |
Investment securities, available for sale | 38,117,330 | 62,081,070 |
Held-to-Maturity | ' | ' |
Amortized Cost | 37,900,841 | ' |
Gross Unrecognized Gains | 8,341 | ' |
Gross Unrecognized Losses | -470,894 | ' |
Fair Value | 37,438,288 | ' |
Collateralized Debt Obligations [Member] | ' | ' |
Available-for-sale securities: | ' | ' |
Amortized Cost | 5,000,000 | 1,000,000 |
Unrealized Gains | 35,000 | ' |
Unrealized Losses | ' | ' |
Investment securities, available for sale | 5,035,000 | 1,000,000 |
Corporate Bond Securities [Member] | ' | ' |
Available-for-sale securities: | ' | ' |
Amortized Cost | 9,570,797 | ' |
Unrealized Gains | ' | ' |
Unrealized Losses | -264,988 | ' |
Investment securities, available for sale | 9,305,809 | ' |
Other Debt Obligations [Member] | ' | ' |
Available-for-sale securities: | ' | ' |
Amortized Cost | 2,949,526 | 2,944,168 |
Unrealized Gains | 40,064 | 74,522 |
Unrealized Losses | ' | ' |
Investment securities, available for sale | 2,989,590 | 3,018,690 |
Total Investment Securities [Member] | ' | ' |
Available-for-sale securities: | ' | ' |
Amortized Cost | 56,770,489 | 104,144,167 |
Unrealized Gains | 646,824 | 2,714,163 |
Unrealized Losses | -504,809 | -32,760 |
Investment securities, available for sale | 56,912,504 | 106,825,570 |
Held-to-Maturity | ' | ' |
Amortized Cost | 99,958,474 | ' |
Gross Unrecognized Gains | 140,826 | ' |
Gross Unrecognized Losses | -970,785 | ' |
Fair Value | $99,128,515 | ' |
3_INVESTMENT_SECURITIES_Detail2
3. INVESTMENT SECURITIES (Detail) - (Table 2) (USD $) | Sep. 30, 2013 |
Held-to-maturity Securities, Unclassified [Abstract] | ' |
Held-to-Maturity | $99,128,515 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ' |
Available-for-sale Securities [Abstract] | ' |
Less than one year | ' |
Due after one year through five years | 8,264,158 |
Due after five years through ten years | 13,053,295 |
Due after ten years | 35,453,036 |
Available-for-Sale | 56,770,489 |
Held-to-maturity Securities, Unclassified [Abstract] | ' |
Less than one year | ' |
Due after one year through five years | 29,465,277 |
Due after five years through ten years | 29,722,179 |
Due after ten years | 40,771,018 |
Held-to-Maturity | 99,958,474 |
Estimate Of Fair Value, Fair Value Disclosure [Member] | ' |
Available-for-sale Securities [Abstract] | ' |
Less than one year | ' |
Due after one year through five years | 8,308,027 |
Due after five years through ten years | 12,850,939 |
Due after ten years | 35,753,538 |
Available-for-Sale | 56,912,504 |
Held-to-maturity Securities, Unclassified [Abstract] | ' |
Less than one year | ' |
Due after one year through five years | 29,237,950 |
Due after five years through ten years | 29,596,276 |
Due after ten years | 40,294,289 |
Held-to-Maturity | $99,128,515 |
3_INVESTMENT_SECURITIES_Detail3
3. INVESTMENT SECURITIES (Detail) - (Table 3) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
FNMA MBS - Residential [Member] | Investment Securities Less Than Twelve Months [Member] | ' | ' |
Investment Securities Fair Value | ' | $4,499,561 |
Investment Securities Unrealized Loss | ' | -32,664 |
Held-to-Maturity, Fair Value | 43,703,786 | ' |
Held-to-Maturity, Unrealized Loss | -475,584 | ' |
FNMA MBS - Residential [Member] | Investment Securities More Than Twelve Months [Member] | ' | ' |
Investment Securities Fair Value | ' | ' |
Investment Securities Unrealized Loss | ' | ' |
Held-to-Maturity, Fair Value | ' | ' |
Held-to-Maturity, Unrealized Loss | ' | ' |
FNMA MBS - Residential [Member] | Total Investment Securities [Member] | ' | ' |
Investment Securities Fair Value | ' | 4,499,561 |
Investment Securities Unrealized Loss | ' | -32,664 |
Held-to-Maturity, Fair Value | 43,703,786 | ' |
Held-to-Maturity, Unrealized Loss | -475,584 | ' |
GNMA MBS - Residential [Member] | Investment Securities Less Than Twelve Months [Member] | ' | ' |
Investment Securities Fair Value | ' | ' |
Investment Securities Unrealized Loss | ' | ' |
Held-to-Maturity, Fair Value | 3,929,552 | ' |
Held-to-Maturity, Unrealized Loss | -24,307 | ' |
GNMA MBS - Residential [Member] | Investment Securities More Than Twelve Months [Member] | ' | ' |
Investment Securities Fair Value | ' | ' |
Investment Securities Unrealized Loss | ' | ' |
Held-to-Maturity, Fair Value | ' | ' |
Held-to-Maturity, Unrealized Loss | ' | ' |
GNMA MBS - Residential [Member] | Total Investment Securities [Member] | ' | ' |
Investment Securities Fair Value | ' | ' |
Investment Securities Unrealized Loss | ' | ' |
Held-to-Maturity, Fair Value | 3,929,552 | ' |
Held-to-Maturity, Unrealized Loss | -24,307 | ' |
Whole Loan MBS - Residential [Member] | Investment Securities Less Than Twelve Months [Member] | ' | ' |
Investment Securities Fair Value | ' | ' |
Investment Securities Unrealized Loss | ' | ' |
Whole Loan MBS - Residential [Member] | Investment Securities More Than Twelve Months [Member] | ' | ' |
Investment Securities Fair Value | ' | ' |
Investment Securities Unrealized Loss | ' | ' |
Whole Loan MBS - Residential [Member] | Total Investment Securities [Member] | ' | ' |
Investment Securities Fair Value | ' | ' |
Investment Securities Unrealized Loss | ' | ' |
Collateralized Mortgage Backed Securities [Member] | Investment Securities Less Than Twelve Months [Member] | ' | ' |
Investment Securities Fair Value | 15,981,110 | 101,543 |
Investment Securities Unrealized Loss | -239,821 | -96 |
Held-to-Maturity, Fair Value | 30,454,114 | ' |
Held-to-Maturity, Unrealized Loss | -470,894 | ' |
Collateralized Mortgage Backed Securities [Member] | Investment Securities More Than Twelve Months [Member] | ' | ' |
Investment Securities Fair Value | ' | ' |
Investment Securities Unrealized Loss | ' | ' |
Held-to-Maturity, Fair Value | ' | ' |
Held-to-Maturity, Unrealized Loss | ' | ' |
Collateralized Mortgage Backed Securities [Member] | Total Investment Securities [Member] | ' | ' |
Investment Securities Fair Value | 15,981,110 | 101,543 |
Investment Securities Unrealized Loss | -239,821 | -96 |
Held-to-Maturity, Fair Value | 30,454,114 | ' |
Held-to-Maturity, Unrealized Loss | -470,894 | ' |
Collateralized Debt Obligations [Member] | Investment Securities Less Than Twelve Months [Member] | ' | ' |
Investment Securities Fair Value | ' | ' |
Investment Securities Unrealized Loss | ' | ' |
Collateralized Debt Obligations [Member] | Investment Securities More Than Twelve Months [Member] | ' | ' |
Investment Securities Fair Value | ' | ' |
Investment Securities Unrealized Loss | ' | ' |
Collateralized Debt Obligations [Member] | Total Investment Securities [Member] | ' | ' |
Investment Securities Fair Value | ' | ' |
Investment Securities Unrealized Loss | ' | ' |
Corporate Bond Securities [Member] | Investment Securities Less Than Twelve Months [Member] | ' | ' |
Investment Securities Fair Value | 9,305,809 | ' |
Investment Securities Unrealized Loss | -264,988 | ' |
Corporate Bond Securities [Member] | Investment Securities More Than Twelve Months [Member] | ' | ' |
Investment Securities Fair Value | ' | ' |
Investment Securities Unrealized Loss | ' | ' |
Corporate Bond Securities [Member] | Total Investment Securities [Member] | ' | ' |
Investment Securities Fair Value | 9,305,809 | ' |
Investment Securities Unrealized Loss | -264,988 | ' |
Other Debt Obligations [Member] | Investment Securities Less Than Twelve Months [Member] | ' | ' |
Investment Securities Fair Value | ' | ' |
Investment Securities Unrealized Loss | ' | ' |
Other Debt Obligations [Member] | Investment Securities More Than Twelve Months [Member] | ' | ' |
Investment Securities Fair Value | ' | ' |
Investment Securities Unrealized Loss | ' | ' |
Other Debt Obligations [Member] | Total Investment Securities [Member] | ' | ' |
Investment Securities Fair Value | ' | ' |
Investment Securities Unrealized Loss | ' | ' |
Total [Member] | Investment Securities Less Than Twelve Months [Member] | ' | ' |
Investment Securities Fair Value | 25,286,919 | 4,601,104 |
Investment Securities Unrealized Loss | -504,809 | -32,760 |
Held-to-Maturity, Fair Value | 78,087,452 | ' |
Held-to-Maturity, Unrealized Loss | -970,785 | ' |
Total [Member] | Investment Securities More Than Twelve Months [Member] | ' | ' |
Investment Securities Fair Value | ' | ' |
Investment Securities Unrealized Loss | ' | ' |
Held-to-Maturity, Fair Value | ' | ' |
Held-to-Maturity, Unrealized Loss | ' | ' |
Total [Member] | Total Investment Securities [Member] | ' | ' |
Investment Securities Fair Value | 25,286,919 | 4,601,104 |
Investment Securities Unrealized Loss | -504,809 | -32,760 |
Held-to-Maturity, Fair Value | 78,087,452 | ' |
Held-to-Maturity, Unrealized Loss | ($970,785) | ' |
4_FAIR_VALUE_MEASUREMENTS_Deta
4. FAIR VALUE MEASUREMENTS (Detail) (Collateral Dependent Impaired Loans [Member], USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Loan | Loan | |
Collateral Dependent Impaired Loans [Member] | ' | ' |
Mortgage Loans on Real Estate, Number of Loans | 3 | 4 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | $1,373,021 | ' |
Real Estate Owned, Valuation Allowance | 333,817 | 838,531 |
Real Estate Owned, Valuation Allowance, Period Increase (Decrease) | 504,714 | ' |
Impaired Financing Receivable, Unpaid Principal Balance | 1,426,671 | 1,792,790 |
Impaired Financing Receivable, Related Allowance | ' | $1,772,565 |
4_FAIR_VALUE_MEASUREMENTS_Deta1
4. FAIR VALUE MEASUREMENTS (Detail) - (Table 1) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Financial Assets: | ' | ' |
Investment securities, held to maturity | $99,958,474 | ' |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ' | ' |
Financial Assets: | ' | ' |
Cash and cash equivalents | 63,257,198 | 77,728,426 |
Investment securities, available for sale | 56,912,504 | 106,825,570 |
Investment securities, held to maturity | 99,958,474 | ' |
Loans receivable | 75,259,848 | 80,218,050 |
Accrued interest receivable | 551,728 | 617,833 |
Total Financial Assets | 295,939,752 | 265,389,879 |
Financial Liabilities: | ' | ' |
Deposits | 271,090,463 | 240,701,206 |
Accrued interest payable | 17,108 | 13,920 |
Total Financial Liabilities | 271,107,571 | 240,715,126 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Financial Assets: | ' | ' |
Cash and cash equivalents | 6,495,284 | 3,723,131 |
Total Financial Assets | 6,495,284 | 3,723,131 |
Financial Liabilities: | ' | ' |
Deposits | 97,497,389 | 81,881,173 |
Total Financial Liabilities | 97,497,389 | 81,881,173 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Financial Assets: | ' | ' |
Cash and cash equivalents | 56,761,914 | 74,005,295 |
Investment securities, available for sale | 51,877,504 | 105,825,570 |
Investment securities, held to maturity | 99,128,515 | ' |
Accrued interest receivable | 305,953 | 262,577 |
Total Financial Assets | 208,073,886 | 180,093,442 |
Financial Liabilities: | ' | ' |
Deposits | 173,425,360 | 158,706,059 |
Accrued interest payable | 17,108 | 13,920 |
Total Financial Liabilities | 173,442,468 | 158,719,979 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Financial Assets: | ' | ' |
Investment securities, available for sale | 5,035,000 | 1,000,000 |
Loans receivable | 76,117,619 | 80,432,242 |
Accrued interest receivable | 245,775 | 355,256 |
Total Financial Assets | 81,398,394 | 81,787,498 |
Total [Member] | ' | ' |
Financial Assets: | ' | ' |
Cash and cash equivalents | 63,257,198 | 77,728,426 |
Investment securities, available for sale | 56,912,504 | 106,825,570 |
Investment securities, held to maturity | 99,128,515 | ' |
Loans receivable | 76,117,619 | 80,432,242 |
Accrued interest receivable | 551,728 | 617,833 |
Total Financial Assets | 295,967,564 | 265,604,071 |
Financial Liabilities: | ' | ' |
Deposits | 270,922,749 | 240,587,232 |
Accrued interest payable | 17,108 | 13,920 |
Total Financial Liabilities | $270,939,857 | $240,601,152 |
4_FAIR_VALUE_MEASUREMENTS_Deta2
4. FAIR VALUE MEASUREMENTS (Detail) - (Table 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Total Available for sale Securities | $5,035,000 | ' |
FNMA MBS - Residential [Member] | ' | ' |
Total Available for sale Securities | 1,323,122 | 35,005,261 |
FNMA MBS - Residential [Member] | Total [Member] | ' | ' |
Total Available for sale Securities | 1,323,122 | 35,005,261 |
FNMA MBS - Residential [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Total Available for sale Securities | 1,323,122 | 35,005,261 |
GNMA MBS - Residential [Member] | ' | ' |
Total Available for sale Securities | ' | 5,230,424 |
GNMA MBS - Residential [Member] | Total [Member] | ' | ' |
Total Available for sale Securities | ' | 5,230,424 |
GNMA MBS - Residential [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Total Available for sale Securities | ' | 5,230,424 |
Whole Loan MBS - Residential [Member] | ' | ' |
Total Available for sale Securities | 141,653 | 490,125 |
Whole Loan MBS - Residential [Member] | Total [Member] | ' | ' |
Total Available for sale Securities | 141,653 | 490,125 |
Whole Loan MBS - Residential [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Total Available for sale Securities | 141,653 | 490,125 |
Collateralized Mortgage Backed Securities [Member] | ' | ' |
Total Available for sale Securities | 38,117,330 | 62,081,070 |
Collateralized Mortgage Backed Securities [Member] | Total [Member] | ' | ' |
Total Available for sale Securities | 38,117,330 | 62,081,070 |
Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Total Available for sale Securities | 38,117,330 | 62,081,070 |
Collateralized Debt Obligations [Member] | ' | ' |
Total Available for sale Securities | 5,035,000 | 1,000,000 |
Collateralized Debt Obligations [Member] | Total [Member] | ' | ' |
Total Available for sale Securities | 5,035,000 | 1,000,000 |
Collateralized Debt Obligations [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Total Available for sale Securities | 5,035,000 | 1,000,000 |
Corporate Bond Securities [Member] | ' | ' |
Total Available for sale Securities | 9,305,809 | ' |
Corporate Bond Securities [Member] | Total [Member] | ' | ' |
Total Available for sale Securities | 9,305,809 | ' |
Corporate Bond Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Total Available for sale Securities | 9,305,809 | ' |
Other Debt Obligations [Member] | ' | ' |
Total Available for sale Securities | 2,989,590 | 3,018,690 |
Other Debt Obligations [Member] | Total [Member] | ' | ' |
Total Available for sale Securities | 2,989,590 | 3,018,690 |
Other Debt Obligations [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Total Available for sale Securities | 2,989,590 | 3,018,690 |
Total [Member] | Total [Member] | ' | ' |
Total Available for sale Securities | 56,912,504 | 106,825,570 |
Total [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Total Available for sale Securities | 51,877,504 | 105,825,570 |
Total [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Total Available for sale Securities | $5,035,000 | $1,000,000 |
4_FAIR_VALUE_MEASUREMENTS_Deta3
4. FAIR VALUE MEASUREMENTS (Detail) - (Table 3) (Collateralized Debt Obligations [Member], USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Collateralized Debt Obligations [Member] | ' |
Balance of recurring Level 3 assets at January 1: | $1,000,000 |
Included in other comprehensive income | 35,000 |
Purchases | 4,000,000 |
Balance of recurring Level 3 assets at June 30: | $5,035,000 |
4_FAIR_VALUE_MEASUREMENTS_Deta4
4. FAIR VALUE MEASUREMENTS (Detail) - (Table 4) (Fair Value, Inputs, Level 3 [Member], USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Fair Value | $5,035,000 |
Valuation Techniques | 'Discounted cash flow |
Minimum [Member] | ' |
Collateral default rate | 0.00% |
Recovery probability | 70.00% |
Maximum [Member] | ' |
Collateral default rate | 2.00% |
Recovery probability | 100.00% |
4_FAIR_VALUE_MEASUREMENTS_Deta5
4. FAIR VALUE MEASUREMENTS (Detail) - (Table 5) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Total Balance Sheet Grouping [Member] | ' | ' |
Impaired loans | ' | ' |
Commercial Real Estate | $1,039,204 | $934,034 |
Other real estate owned | ' | 342,867 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Impaired loans | ' | ' |
Commercial Real Estate | 1,039,204 | 934,034 |
Other real estate owned | ' | $342,867 |
4_FAIR_VALUE_MEASUREMENTS_Deta6
4. FAIR VALUE MEASUREMENTS (Detail) - (Table 6) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Commercial Loans Discount Adjustment [Member] | ' |
Impaired loans- | ' |
Fair Value | $521,844 |
Valuation Techniques | 'Third Party Appraisal |
Unobservable Inputs | 'Discount adjustment for differences in various costs. |
Range (Weighted Average) | 0.01% |
Commercial Loans Comparable Sales [Member] | ' |
Impaired loans- | ' |
Fair Value | 64,579 |
Valuation Techniques | 'Third Party Appraisal |
Unobservable Inputs | 'Adjustments for differences between comparable sales. |
Commercial Loans Comparable Sales [Member] | Minimum [Member] | ' |
Impaired loans- | ' |
Range (Weighted Average) | 2.00% |
Commercial Loans Comparable Sales [Member] | Maximum [Member] | ' |
Impaired loans- | ' |
Range (Weighted Average) | 4.00% |
Commercial Loans Net Operating Income Expectations [Member] | ' |
Impaired loans- | ' |
Fair Value | $452,781 |
Valuation Techniques | 'Third Party Appraisal |
Unobservable Inputs | 'Adjustments for differences in net operating income expectations |
Commercial Loans Net Operating Income Expectations [Member] | Minimum [Member] | ' |
Impaired loans- | ' |
Range (Weighted Average) | 4.00% |
Commercial Loans Net Operating Income Expectations [Member] | Maximum [Member] | ' |
Impaired loans- | ' |
Range (Weighted Average) | 13.00% |
Other Real Estate Owned Comparable Sales [Member] | ' |
Impaired loans- | ' |
Valuation Techniques | 'Third Party Appraisal |
Unobservable Inputs | 'Adjustments for differences between comparable sales. |
Other Real Estate Owned Comparable Sales [Member] | Minimum [Member] | ' |
Impaired loans- | ' |
Range (Weighted Average) | 2.00% |
Other Real Estate Owned Comparable Sales [Member] | Maximum [Member] | ' |
Impaired loans- | ' |
Range (Weighted Average) | 6.00% |
Commercial Loans Net Operating Income Expectations Capitalization Rate [Member] | ' |
Impaired loans- | ' |
Unobservable Inputs | 'Capitalization Rate |
Range (Weighted Average) | 5.75% |
5_LOANS_RECEIVABLE_NET_Detail
5. LOANS RECEIVABLE, NET (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down | $105,062 | $63,329 |
Loans Receivable Impaired Troubled Debt Restructuring Amount | 5,431,492 | 5,826,633 |
Commercial Real Estate Other Receivable [Member] | ' | ' |
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down | $41,733 | ' |
5_LOANS_RECEIVABLE_NET_Detail_
5. LOANS RECEIVABLE, NET (Detail) - (Table 1) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Real estate loans: | ' | ' |
Unearned loans fees, net | ($198,898) | ($226,364) |
Allowance for loan losses | -1,260,454 | -1,753,521 |
Total | 75,259,848 | 80,218,050 |
Commercial Mortgage Backed Securities [Member] | ' | ' |
Commercial loans (principally variable rate): | ' | ' |
Commercial Loans Receivable | 1,785,392 | 2,050,728 |
Commercial Loan [Member] | ' | ' |
Commercial loans (principally variable rate): | ' | ' |
Commercial Loans Receivable | 15,155,159 | 16,502,920 |
Total Commercial Loans [Member] | ' | ' |
Commercial loans (principally variable rate): | ' | ' |
Commercial Loans Receivable | 16,940,551 | 18,553,648 |
Commercial Real Estate [Member] | ' | ' |
Real estate loans: | ' | ' |
Real Estate Loans Receivable | 52,674,057 | 56,698,844 |
Residential Real Estate [Member] | ' | ' |
Real estate loans: | ' | ' |
Real Estate Loans Receivable | 2,460,097 | 2,498,603 |
Total Real Estate Loans [Member] | ' | ' |
Real estate loans: | ' | ' |
Real Estate Loans Receivable | 55,134,154 | 59,197,447 |
Construction Loans [Member] | ' | ' |
Real estate loans: | ' | ' |
Construction loans | 3,254,000 | 3,112,477 |
Consumer Loan [Member] | ' | ' |
Real estate loans: | ' | ' |
Consumer loans | 722,281 | 565,573 |
Other Loans [Member] | ' | ' |
Real estate loans: | ' | ' |
Other loans | 668,214 | 768,790 |
Consumer And Other Loans [Member] | ' | ' |
Real estate loans: | ' | ' |
Consumer loans and other loans, Total | 1,390,495 | 1,334,363 |
Total [Member] | ' | ' |
Real estate loans: | ' | ' |
Total loans receivable | 76,719,200 | 82,197,935 |
Net Amount [Member] | ' | ' |
Real estate loans: | ' | ' |
Total | $75,259,848 | $80,218,050 |
5_LOANS_RECEIVABLE_NET_Detail_1
5. LOANS RECEIVABLE, NET (Detail) - (Table 1) (Parentheticals) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Undisbursed funds | $1,571,000 | $2,854,500 |
5_LOANS_RECEIVABLE_NET_Detail_2
5. LOANS RECEIVABLE, NET (Detail) - (Table 2) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Nonaccrual loans: | ' | ' |
Interest income that would have been recorded during the period on nonaccrual loans outstanding in accordance with original terms | $329,804 | $478,556 |
Commercial Real Estate [Member] | ' | ' |
Nonaccrual loans: | ' | ' |
Nonaccrual loans | 4,334,938 | 5,923,090 |
Commercial Mortgage Backed Securities [Member] | ' | ' |
Nonaccrual loans: | ' | ' |
Nonaccrual loans | 88,021 | ' |
Commercial Loan [Member] | ' | ' |
Nonaccrual loans: | ' | ' |
Nonaccrual loans | 245,913 | ' |
Construction Loans [Member] | ' | ' |
Nonaccrual loans: | ' | ' |
Nonaccrual loans | 467,500 | 467,500 |
Total Nonaccrual Loans [Member] | ' | ' |
Nonaccrual loans: | ' | ' |
Nonaccrual loans | $5,136,372 | $6,390,590 |
5_LOANS_RECEIVABLE_NET_Detail_3
5. LOANS RECEIVABLE, NET (Detail) - (Table 3) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Commercial Loan [Member] | ' | ' |
Commercial loans: | ' | ' |
Commercial Loans Receivable | $15,155,159 | $16,502,920 |
Commercial Mortgage Backed Securities [Member] | ' | ' |
Commercial loans: | ' | ' |
Commercial Loans Receivable | 1,785,392 | 2,050,728 |
Commercial Real Estate [Member] | ' | ' |
Real Estate loans | ' | ' |
Real Estate | 52,674,057 | 56,698,844 |
Residential Real Estate [Member] | ' | ' |
Real Estate loans | ' | ' |
Real Estate | 2,460,097 | 2,498,603 |
Construction Loans [Member] | ' | ' |
Real Estate loans | ' | ' |
Construction loans | 3,254,000 | 3,112,477 |
Consumer Loan [Member] | ' | ' |
Real Estate loans | ' | ' |
Consumer loans | 722,281 | 565,573 |
Other Loans [Member] | ' | ' |
Real Estate loans | ' | ' |
Other loans | 668,214 | 768,790 |
Loans Receivable [Member] | Commercial Loan [Member] | ' | ' |
Commercial loans: | ' | ' |
Commercial Loans Receivable | 15,155,159 | 16,502,920 |
Loans Receivable [Member] | Commercial Mortgage Backed Securities [Member] | ' | ' |
Commercial loans: | ' | ' |
Commercial Loans Receivable | 1,785,392 | 2,050,728 |
Loans Receivable [Member] | Commercial Real Estate [Member] | ' | ' |
Real Estate loans | ' | ' |
Real Estate | 52,674,057 | 56,698,844 |
Loans Receivable [Member] | Residential Real Estate [Member] | ' | ' |
Real Estate loans | ' | ' |
Real Estate | 2,460,097 | 2,498,603 |
Loans Receivable [Member] | Construction Loans [Member] | ' | ' |
Real Estate loans | ' | ' |
Construction loans | 3,254,000 | 3,112,477 |
Loans Receivable [Member] | Consumer Loan [Member] | ' | ' |
Real Estate loans | ' | ' |
Consumer loans | 722,281 | 565,573 |
Loans Receivable [Member] | Other Loans [Member] | ' | ' |
Real Estate loans | ' | ' |
Other loans | 668,214 | 768,790 |
Loans Receivable [Member] | Total Loans [Member] | ' | ' |
Real Estate loans | ' | ' |
Total loans | 76,719,200 | 82,197,935 |
30-59 Days Past Due [Member] | Commercial Loan [Member] | ' | ' |
Commercial loans: | ' | ' |
Commercial Loans Receivable | 216,553 | 4,599 |
30-59 Days Past Due [Member] | Commercial Real Estate [Member] | ' | ' |
Real Estate loans | ' | ' |
Real Estate | 141,816 | 1,946,281 |
30-59 Days Past Due [Member] | Residential Real Estate [Member] | ' | ' |
Real Estate loans | ' | ' |
Real Estate | 100,051 | ' |
30-59 Days Past Due [Member] | Other Loans [Member] | ' | ' |
Real Estate loans | ' | ' |
Other loans | 504 | ' |
30-59 Days Past Due [Member] | Total Loans [Member] | ' | ' |
Real Estate loans | ' | ' |
Total loans | 458,924 | 1,950,880 |
60-89 Days Past Due [Member] | Commercial Mortgage Backed Securities [Member] | ' | ' |
Commercial loans: | ' | ' |
Commercial Loans Receivable | ' | 91,649 |
60-89 Days Past Due [Member] | Commercial Real Estate [Member] | ' | ' |
Real Estate loans | ' | ' |
Real Estate | ' | 150,000 |
60-89 Days Past Due [Member] | Construction Loans [Member] | ' | ' |
Real Estate loans | ' | ' |
Construction loans | 300,000 | ' |
60-89 Days Past Due [Member] | Consumer Loan [Member] | ' | ' |
Real Estate loans | ' | ' |
Consumer loans | ' | 2,903 |
60-89 Days Past Due [Member] | Total Loans [Member] | ' | ' |
Real Estate loans | ' | ' |
Total loans | 300,000 | 244,552 |
Greater than 90 Days Past Due [Member] | Commercial Loan [Member] | ' | ' |
Commercial loans: | ' | ' |
Commercial Loans Receivable | 245,913 | ' |
Greater than 90 Days Past Due [Member] | Commercial Mortgage Backed Securities [Member] | ' | ' |
Commercial loans: | ' | ' |
Commercial Loans Receivable | 88,021 | ' |
Greater than 90 Days Past Due [Member] | Commercial Real Estate [Member] | ' | ' |
Real Estate loans | ' | ' |
Real Estate | 4,334,938 | 5,923,090 |
Greater than 90 Days Past Due [Member] | Construction Loans [Member] | ' | ' |
Real Estate loans | ' | ' |
Construction loans | 467,500 | 467,500 |
Greater than 90 Days Past Due [Member] | Total Loans [Member] | ' | ' |
Real Estate loans | ' | ' |
Total loans | 5,136,372 | 6,390,590 |
Total Past Due Loans[Member] | Commercial Loan [Member] | ' | ' |
Commercial loans: | ' | ' |
Commercial Loans Receivable | 462,466 | 4,599 |
Total Past Due Loans[Member] | Commercial Mortgage Backed Securities [Member] | ' | ' |
Commercial loans: | ' | ' |
Commercial Loans Receivable | ' | 91,649 |
Total Past Due Loans[Member] | Commercial Real Estate [Member] | ' | ' |
Real Estate loans | ' | ' |
Real Estate | 4,476,754 | 8,019,371 |
Total Past Due Loans[Member] | Residential Real Estate [Member] | ' | ' |
Real Estate loans | ' | ' |
Real Estate | 100,051 | ' |
Total Past Due Loans[Member] | Construction Loans [Member] | ' | ' |
Real Estate loans | ' | ' |
Construction loans | 767,500 | 467,500 |
Total Past Due Loans[Member] | Consumer Loan [Member] | ' | ' |
Real Estate loans | ' | ' |
Consumer loans | ' | 2,903 |
Total Past Due Loans[Member] | Other Loans [Member] | ' | ' |
Real Estate loans | ' | ' |
Other loans | 504 | ' |
Total Past Due Loans[Member] | Total Loans [Member] | ' | ' |
Real Estate loans | ' | ' |
Total loans | 5,807,275 | 8,586,022 |
Loans Not Past Due [Member] | Commercial Loan [Member] | ' | ' |
Commercial loans: | ' | ' |
Commercial Loans Receivable | 14,692,693 | 16,498,321 |
Loans Not Past Due [Member] | Commercial Mortgage Backed Securities [Member] | ' | ' |
Commercial loans: | ' | ' |
Commercial Loans Receivable | 1,785,392 | 1,959,079 |
Loans Not Past Due [Member] | Commercial Real Estate [Member] | ' | ' |
Real Estate loans | ' | ' |
Real Estate | 48,197,303 | 48,679,473 |
Loans Not Past Due [Member] | Residential Real Estate [Member] | ' | ' |
Real Estate loans | ' | ' |
Real Estate | 2,360,046 | 2,498,603 |
Loans Not Past Due [Member] | Construction Loans [Member] | ' | ' |
Real Estate loans | ' | ' |
Construction loans | 2,486,500 | 2,644,977 |
Loans Not Past Due [Member] | Consumer Loan [Member] | ' | ' |
Real Estate loans | ' | ' |
Consumer loans | 722,281 | 562,670 |
Loans Not Past Due [Member] | Other Loans [Member] | ' | ' |
Real Estate loans | ' | ' |
Other loans | 667,710 | 768,790 |
Loans Not Past Due [Member] | Total Loans [Member] | ' | ' |
Real Estate loans | ' | ' |
Total loans | $70,911,925 | $73,611,913 |
5_LOANS_RECEIVABLE_NET_Detail_4
5. LOANS RECEIVABLE, NET (Detail) - (Table 4) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Loans with allocated allowance for loan losses: | ' | ' |
Loans with allocated allowance for loan losses | $4,928,390 | $6,164,534 |
Amount of the allowance for loan losses allocated: | ' | ' |
Allowance for loan losses allocated | 382,999 | 838,531 |
Commercial Real Estate [Member] | ' | ' |
Loans with no allocated allowance for loan losses: | ' | ' |
Loan with no allocated allowance | 2,753,935 | 3,924,469 |
Loans with allocated allowance for loan losses: | ' | ' |
Commercial real estate | 1,373,021 | 1,772,565 |
Amount of the allowance for loan losses allocated: | ' | ' |
Allowance for loan losses allocated | 333,817 | 838,531 |
Construction Loans [Member] | ' | ' |
Loans with no allocated allowance for loan losses: | ' | ' |
Loan with no allocated allowance | 467,500 | 467,500 |
Commercial Mortgage Backed Securities [Member] | ' | ' |
Loans with no allocated allowance for loan losses: | ' | ' |
Loan with no allocated allowance | 88,021 | ' |
Commercial Loan [Member] | ' | ' |
Loans with allocated allowance for loan losses: | ' | ' |
Loans with allocated allowance for loan losses | 245,913 | ' |
Amount of the allowance for loan losses allocated: | ' | ' |
Allowance for loan losses allocated | $49,182 | ' |
5_LOANS_RECEIVABLE_NET_Detail_5
5. LOANS RECEIVABLE, NET (Detail) - (Table 5) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Average of individually impaired loans during period: | ' | ' | ' | ' |
Interest income recognized during time period that loans were impaired, either using accrual or cash-basis method of accounting | $9,589 | $304 | $62,269 | $304 |
Commercial Real Estate [Member] | ' | ' | ' | ' |
Average of individually impaired loans during period: | ' | ' | ' | ' |
Average of Individually Impaired Loans | 4,582,437 | 5,873,758 | 4,655,481 | 6,605,848 |
Construction Loans [Member] | ' | ' | ' | ' |
Average of individually impaired loans during period: | ' | ' | ' | ' |
Average of Individually Impaired Loans | 467,500 | ' | 467,500 | 132,500 |
Commercial Mortgage Backed Securities [Member] | ' | ' | ' | ' |
Average of individually impaired loans during period: | ' | ' | ' | ' |
Average of Individually Impaired Loans | 88,716 | ' | 59,651 | ' |
Commercial Loan [Member] | ' | ' | ' | ' |
Average of individually impaired loans during period: | ' | ' | ' | ' |
Average of Individually Impaired Loans | 261,247 | ' | 155,041 | ' |
Total average of individually impaired loans[ Member] | ' | ' | ' | ' |
Average of individually impaired loans during period: | ' | ' | ' | ' |
Average of Individually Impaired Loans | 5,399,900 | 5,873,758 | 5,337,673 | 7,227,237 |
Residential Real Estate [Member] | ' | ' | ' | ' |
Average of individually impaired loans during period: | ' | ' | ' | ' |
Average of Individually Impaired Loans | ' | ' | ' | $488,889 |
5_LOANS_RECEIVABLE_NET_Detail_6
5. LOANS RECEIVABLE, NET (Detail) - (Table 6) (USD $) | Sep. 30, 2013 |
Loan | |
Troubled Debt Restructurings [Abstract] | ' |
Commercial real estate | 8 |
Commercial real estate | $245,913 |
Commercial real estate | $245,913 |
5_LOANS_RECEIVABLE_NET_Detail_7
5. LOANS RECEIVABLE, NET (Detail) - (Table 7) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Special Mention [Member] | Commercial Mortgage Backed Securities [Member] | ' | ' |
Commercial Loans: | ' | ' |
Asset Carrying Value | ' | $91,649 |
Special Mention [Member] | Commercial Loan [Member] | ' | ' |
Commercial Loans: | ' | ' |
Asset Carrying Value | 269,243 | 63,032 |
Special Mention [Member] | Commercial Real Estate [Member] | ' | ' |
Commercial Loans: | ' | ' |
Asset Carrying Value | 6,487,429 | 5,820,246 |
Special Mention [Member] | Construction Loans [Member] | ' | ' |
Commercial Loans: | ' | ' |
Asset Carrying Value | 300,000 | ' |
Special Mention [Member] | Other Loans [Member] | ' | ' |
Commercial Loans: | ' | ' |
Asset Carrying Value | 2,889 | 3,746 |
Special Mention [Member] | Total [Member] | ' | ' |
Commercial Loans: | ' | ' |
Asset Carrying Value | 7,059,561 | 5,978,673 |
Special Mention [Member] | Total Assets [Member] | ' | ' |
Commercial Loans: | ' | ' |
Asset Carrying Value | 7,059,561 | 5,978,673 |
Substandard [Member] | Commercial Mortgage Backed Securities [Member] | ' | ' |
Commercial Loans: | ' | ' |
Asset Carrying Value | 88,021 | ' |
Substandard [Member] | Commercial Loan [Member] | ' | ' |
Commercial Loans: | ' | ' |
Asset Carrying Value | 245,913 | ' |
Substandard [Member] | Commercial Real Estate [Member] | ' | ' |
Commercial Loans: | ' | ' |
Asset Carrying Value | 5,976,365 | 6,570,971 |
Substandard [Member] | Residential Real Estate [Member] | ' | ' |
Commercial Loans: | ' | ' |
Asset Carrying Value | 2,140,047 | 2,174,455 |
Substandard [Member] | Construction Loans [Member] | ' | ' |
Commercial Loans: | ' | ' |
Asset Carrying Value | 467,500 | 467,500 |
Substandard [Member] | Total [Member] | ' | ' |
Commercial Loans: | ' | ' |
Asset Carrying Value | 8,917,846 | 9,212,926 |
Substandard [Member] | Real Estate Owned [Member] | ' | ' |
Commercial Loans: | ' | ' |
Asset Carrying Value | ' | 342,867 |
Substandard [Member] | Total Assets [Member] | ' | ' |
Commercial Loans: | ' | ' |
Asset Carrying Value | 8,917,846 | 9,555,793 |
Loans Receivables Not Classified [Member] | Commercial Mortgage Backed Securities [Member] | ' | ' |
Commercial Loans: | ' | ' |
Asset Carrying Value | 1,697,371 | 1,959,079 |
Loans Receivables Not Classified [Member] | Commercial Loan [Member] | ' | ' |
Commercial Loans: | ' | ' |
Asset Carrying Value | 14,640,003 | 16,439,888 |
Loans Receivables Not Classified [Member] | Commercial Real Estate [Member] | ' | ' |
Commercial Loans: | ' | ' |
Asset Carrying Value | 40,210,263 | 44,307,627 |
Loans Receivables Not Classified [Member] | Residential Real Estate [Member] | ' | ' |
Commercial Loans: | ' | ' |
Asset Carrying Value | 320,050 | 324,148 |
Loans Receivables Not Classified [Member] | Construction Loans [Member] | ' | ' |
Commercial Loans: | ' | ' |
Asset Carrying Value | 2,486,500 | 2,644,977 |
Loans Receivables Not Classified [Member] | Consumer Loan [Member] | ' | ' |
Commercial Loans: | ' | ' |
Asset Carrying Value | 722,281 | 565,573 |
Loans Receivables Not Classified [Member] | Other Loans [Member] | ' | ' |
Commercial Loans: | ' | ' |
Asset Carrying Value | 665,325 | 765,044 |
Loans Receivables Not Classified [Member] | Total [Member] | ' | ' |
Commercial Loans: | ' | ' |
Asset Carrying Value | 60,741,793 | 67,006,336 |
Loans Receivables Not Classified [Member] | Total Assets [Member] | ' | ' |
Commercial Loans: | ' | ' |
Asset Carrying Value | 60,741,793 | 67,006,336 |
Total [Member] | Commercial Mortgage Backed Securities [Member] | ' | ' |
Commercial Loans: | ' | ' |
Asset Carrying Value | 1,785,392 | 2,050,728 |
Total [Member] | Commercial Loan [Member] | ' | ' |
Commercial Loans: | ' | ' |
Asset Carrying Value | 15,155,159 | 16,502,920 |
Total [Member] | Commercial Real Estate [Member] | ' | ' |
Commercial Loans: | ' | ' |
Asset Carrying Value | 52,674,057 | 56,698,844 |
Total [Member] | Residential Real Estate [Member] | ' | ' |
Commercial Loans: | ' | ' |
Asset Carrying Value | 2,460,097 | 2,498,603 |
Total [Member] | Construction Loans [Member] | ' | ' |
Commercial Loans: | ' | ' |
Asset Carrying Value | 3,254,000 | 3,112,477 |
Total [Member] | Consumer Loan [Member] | ' | ' |
Commercial Loans: | ' | ' |
Asset Carrying Value | 722,281 | 565,573 |
Total [Member] | Other Loans [Member] | ' | ' |
Commercial Loans: | ' | ' |
Asset Carrying Value | 668,214 | 768,790 |
Total [Member] | Total [Member] | ' | ' |
Commercial Loans: | ' | ' |
Asset Carrying Value | 76,719,200 | 82,540,802 |
Total [Member] | Real Estate Owned [Member] | ' | ' |
Commercial Loans: | ' | ' |
Asset Carrying Value | ' | $342,867 |
5_LOANS_RECEIVABLE_NET_Detail_8
5. LOANS RECEIVABLE, NET (Detail) - (Table 8) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2011 |
Ending allowance balance attributable to loans | ' | ' | ' | ' | ' | ' |
Total ending allowance balance | $1,260,454 | ' | $1,753,521 | ' | ' | ' |
Commercial Loan [Member] | ' | ' | ' | ' | ' | ' |
Ending allowance balance attributable to loans | ' | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 49,183 | ' | ' | ' | ' | ' |
Collectively evaluated for impairment | 390,365 | ' | 425,495 | ' | ' | ' |
Total ending allowance balance | 439,548 | 453,305 | 425,495 | 528,582 | 547,621 | 474,686 |
Loans: | ' | ' | ' | ' | ' | ' |
Individually evaluated for impairment loans | 245,913 | ' | ' | ' | ' | ' |
Collectively evaluated for impairment loans | 14,909,246 | ' | 16,502,920 | ' | ' | ' |
Total ending loans balance | 15,155,159 | ' | 16,502,920 | ' | ' | ' |
Commercial Mortgage Backed Securities [Member] | ' | ' | ' | ' | ' | ' |
Ending allowance balance attributable to loans | ' | ' | ' | ' | ' | ' |
Collectively evaluated for impairment | 12,659 | ' | 18,790 | ' | ' | ' |
Total ending allowance balance | 12,659 | 30,194 | 18,790 | 11,443 | 13,678 | 12,356 |
Loans: | ' | ' | ' | ' | ' | ' |
Individually evaluated for impairment loans | 88,021 | ' | ' | ' | ' | ' |
Collectively evaluated for impairment loans | 1,697,371 | ' | 2,050,728 | ' | ' | ' |
Total ending loans balance | 1,785,392 | ' | 2,050,728 | ' | ' | ' |
Construction Loans [Member] | ' | ' | ' | ' | ' | ' |
Ending allowance balance attributable to loans | ' | ' | ' | ' | ' | ' |
Collectively evaluated for impairment | 18,378 | ' | 16,282 | ' | ' | ' |
Total ending allowance balance | 18,378 | 18,517 | 16,282 | 20,695 | 37,186 | 34,184 |
Loans: | ' | ' | ' | ' | ' | ' |
Individually evaluated for impairment loans | 467,500 | ' | 467,500 | ' | ' | ' |
Collectively evaluated for impairment loans | 2,786,500 | ' | 2,644,977 | ' | ' | ' |
Total ending loans balance | 3,254,000 | ' | 3,112,477 | ' | ' | ' |
Commercial Real Estate [Member] | ' | ' | ' | ' | ' | ' |
Ending allowance balance attributable to loans | ' | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 372,103 | ' | 853,108 | ' | ' | ' |
Collectively evaluated for impairment | 372,776 | ' | 394,091 | ' | ' | ' |
Total ending allowance balance | 744,879 | 710,884 | 1,247,199 | 1,059,870 | 930,883 | 780,820 |
Loans: | ' | ' | ' | ' | ' | ' |
Individually evaluated for impairment loans | 5,976,365 | ' | 6,570,971 | ' | ' | ' |
Collectively evaluated for impairment loans | 46,697,692 | ' | 50,127,873 | ' | ' | ' |
Total ending loans balance | 52,674,057 | ' | 56,698,844 | ' | ' | ' |
Residential Real Estate [Member] | ' | ' | ' | ' | ' | ' |
Ending allowance balance attributable to loans | ' | ' | ' | ' | ' | ' |
Collectively evaluated for impairment | 5,457 | ' | 4,528 | ' | ' | ' |
Total ending allowance balance | 5,457 | 4,485 | 4,528 | 3,189 | 2,190 | 672 |
Loans: | ' | ' | ' | ' | ' | ' |
Individually evaluated for impairment loans | 2,140,047 | ' | 2,174,455 | ' | ' | ' |
Collectively evaluated for impairment loans | 320,050 | ' | 324,148 | ' | ' | ' |
Total ending loans balance | 2,460,097 | ' | 2,498,603 | ' | ' | ' |
Other Loans [Member] | ' | ' | ' | ' | ' | ' |
Ending allowance balance attributable to loans | ' | ' | ' | ' | ' | ' |
Collectively evaluated for impairment | 39,533 | ' | 41,227 | ' | ' | ' |
Total ending allowance balance | 39,533 | 34,202 | 41,227 | 43,137 | 50,839 | 40,302 |
Loans: | ' | ' | ' | ' | ' | ' |
Collectively evaluated for impairment loans | 1,390,495 | ' | 1,334,363 | ' | ' | ' |
Total ending loans balance | 1,390,495 | ' | 1,334,363 | ' | ' | ' |
Total [Member] | ' | ' | ' | ' | ' | ' |
Ending allowance balance attributable to loans | ' | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 421,286 | ' | 853,108 | ' | ' | ' |
Collectively evaluated for impairment | 839,168 | ' | 900,413 | ' | ' | ' |
Total ending allowance balance | 1,260,454 | 1,251,587 | 1,753,521 | 1,666,916 | 1,582,397 | 1,343,020 |
Loans: | ' | ' | ' | ' | ' | ' |
Individually evaluated for impairment loans | 8,917,846 | ' | 9,212,926 | ' | ' | ' |
Collectively evaluated for impairment loans | 67,801,354 | ' | 72,985,009 | ' | ' | ' |
Total ending loans balance | $76,719,200 | ' | $82,197,935 | ' | ' | ' |
5_LOANS_RECEIVABLE_NET_Detail_9
5. LOANS RECEIVABLE, NET (Detail) - (Table 9) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Allowance for loan losses: | ' | ' | ' | ' |
Beginning balance | ' | ' | $1,753,521 | ' |
Provision for loan losses | 45,000 | 40,000 | 180,000 | 280,000 |
Total ending allowance balance | 1,260,454 | ' | 1,260,454 | ' |
Commercial Loan [Member] | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' |
Beginning balance | 453,305 | 547,621 | 425,495 | 474,686 |
Provision for loan losses | -19,082 | -29,818 | -27,038 | 54,906 |
Loans charged-off | ' | ' | ' | -100,757 |
Recoveries | 5,325 | 10,779 | 41,091 | 99,747 |
Total ending allowance balance | 439,548 | 528,582 | 439,548 | 528,582 |
Commercial Mortgage Backed Securities [Member] | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' |
Beginning balance | 30,194 | 13,678 | 18,790 | 12,356 |
Provision for loan losses | -17,535 | -2,235 | -6,131 | -913 |
Total ending allowance balance | 12,659 | 11,443 | 12,659 | 11,443 |
Construction Loans [Member] | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' |
Beginning balance | 18,517 | 37,186 | 16,282 | 34,184 |
Provision for loan losses | -139 | -16,491 | 2,096 | -13,489 |
Total ending allowance balance | 18,378 | 20,695 | 18,378 | 20,695 |
Commercial Real Estate [Member] | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' |
Beginning balance | 710,884 | 930,883 | 1,247,199 | 780,820 |
Provision for loan losses | 28,995 | 86,237 | 173,081 | 252,975 |
Loans charged-off | ' | ' | -680,401 | -16,675 |
Recoveries | 5,000 | 42,750 | 5,000 | 42,750 |
Total ending allowance balance | 744,879 | 1,059,870 | 744,879 | 1,059,870 |
Residential Real Estate [Member] | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' |
Beginning balance | 4,485 | 2,190 | 4,528 | 672 |
Provision for loan losses | -2,420 | 999 | -8,914 | -25,124 |
Recoveries | 3,392 | ' | 9,843 | 27,641 |
Total ending allowance balance | 5,457 | 3,189 | 5,457 | 3,189 |
Other Loans [Member] | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' |
Beginning balance | 34,202 | 50,839 | 41,227 | 40,302 |
Provision for loan losses | 55,181 | 1,308 | 46,906 | 11,645 |
Loans charged-off | -50,000 | -10,917 | -50,000 | -10,917 |
Recoveries | 150 | 1,907 | 1,400 | 2,107 |
Total ending allowance balance | 39,533 | 43,137 | 39,533 | 43,137 |
Total [Member] | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' |
Beginning balance | 1,251,587 | 1,582,397 | 1,753,521 | 1,343,020 |
Provision for loan losses | 45,000 | 40,000 | 180,000 | 280,000 |
Loans charged-off | -50,000 | -10,917 | -730,401 | -128,349 |
Recoveries | 13,867 | 55,436 | 57,334 | 172,245 |
Total ending allowance balance | $1,260,454 | $1,666,916 | $1,260,454 | $1,666,916 |