Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 31, 2013 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'OLD LINE BANCSHARES INC | ' |
Entity Central Index Key | '0001253317 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 10,766,212 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Assets | ' | ' |
Cash and due from banks | $49,957,119 | $28,332,456 |
Interest bearing accounts | 30,364 | 130,192 |
Federal funds sold | 1,005,491 | 228,113 |
Total cash and cash equivalents | 50,992,974 | 28,690,761 |
Investment securities available for sale-at fair value | 181,527,632 | 171,541,222 |
Loans held for sale, fair value of $22,611,845 and $0 | 22,584,730 | ' |
Loans held for investment (net of allowance for loan losses of $4,425,645 and $3,965,347, respectively) | 805,890,587 | 595,144,928 |
Equity securities at cost | 5,850,652 | 3,615,444 |
Premises and equipment | 35,520,366 | 25,133,013 |
Accrued interest receivable | 3,256,311 | 2,639,483 |
Deferred income taxes | 21,451,728 | 7,139,545 |
Bank owned life insurance | 30,357,357 | 16,869,307 |
Other real estate owned | 5,909,260 | 3,719,449 |
Goodwill | 7,793,665 | 633,790 |
Core deposit intangible | 5,518,619 | 3,691,471 |
Other assets | 3,059,574 | 3,038,064 |
Total assets | 1,179,713,455 | 861,856,477 |
Deposits | ' | ' |
Non-interest bearing | 223,503,418 | 188,895,263 |
Interest bearing | 761,869,410 | 546,562,555 |
Total deposits | 985,372,828 | 735,457,818 |
Short term borrowings | 56,204,082 | 37,905,467 |
Long term borrowings | 6,118,744 | 6,192,350 |
Accrued interest payable | 250,164 | 311,735 |
Income taxes payable | 371,026 | 235,323 |
Accrued pension | 4,844,855 | 4,615,699 |
Other liabilities | 3,419,993 | 1,884,924 |
Total liabilities | 1,056,581,692 | 786,603,316 |
Stockholders' equity | ' | ' |
Common stock, par value $0.01 per share; authorized 25,000,000 in 2013 and 15,000,000 for 2012; issued and outstanding 10,761,113 in 2013 and 6,845,432 in 2012 | 107,612 | 68,454 |
Additional paid-in capital | 104,408,960 | 53,792,015 |
Retained earnings | 20,882,086 | 18,531,387 |
Accumulated other comprehensive income (loss) | -2,628,710 | 2,469,758 |
Total Old Line Bancshares, Inc. stockholders' equity | 122,769,948 | 74,861,614 |
Non-controlling interest | 361,815 | 391,547 |
Total stockholders' equity | 123,131,763 | 75,253,161 |
Total liabilities and stockholders' equity | $1,179,713,455 | $861,856,477 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Consolidated Balance Sheets | ' | ' |
Loans held for sale, fair value (in dollars) | $22,611,845 | $0 |
Loans held for investment, allowance for loan losses (in dollars) | $4,425,645 | $3,965,347 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, authorized shares | 25,000,000 | 15,000,000 |
Common stock, shares issued | 10,761,113 | 6,845,432 |
Common stock, shares outstanding | 10,761,113 | 6,845,432 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Interest Income | ' | ' | ' | ' |
Loans, including fees | $11,527,459 | $8,702,142 | $28,687,187 | $25,287,273 |
U.S. treasury securities | 431 | 2,420 | 2,612 | 7,198 |
U.S. government agency securities | 161,317 | 81,936 | 379,672 | 274,534 |
Mortgage backed securities | 358,115 | 540,022 | 1,075,989 | 1,798,763 |
Municipal securities | 442,722 | 414,656 | 1,360,230 | 1,144,483 |
Federal funds sold | 650 | 1,696 | 3,023 | 4,658 |
Other | 67,780 | 57,701 | 174,441 | 149,648 |
Total interest income | 12,558,474 | 9,800,573 | 31,683,154 | 28,666,557 |
Interest expense | ' | ' | ' | ' |
Deposits | 970,911 | 1,057,075 | 2,793,005 | 3,271,773 |
Borrowed funds | 111,727 | 206,721 | 363,687 | 632,208 |
Total interest expense | 1,082,638 | 1,263,796 | 3,156,692 | 3,903,981 |
Net interest income | 11,475,836 | 8,536,777 | 28,526,462 | 24,762,576 |
Provision for loan losses | 590,000 | 375,000 | 990,000 | 1,125,000 |
Net interest income after provision for loan losses | 10,885,836 | 8,161,777 | 27,536,462 | 23,637,576 |
Non-interest income | ' | ' | ' | ' |
Service charges on deposit accounts | 466,572 | 315,468 | 1,134,986 | 962,937 |
Gain on sales or calls of investment securities | ' | 289,511 | 641,088 | 849,539 |
Earnings on bank owned life insurance | 253,894 | 137,082 | 587,763 | 412,283 |
Gain (loss) on disposal of assets | ' | ' | -104,639 | 9,365 |
Rental Income | 325,451 | ' | 505,610 | ' |
Gain on sale of loans | 332,348 | ' | 477,587 | ' |
Other fees and commissions | 268,872 | 146,550 | 785,557 | 529,873 |
Total non-interest revenue | 1,647,137 | 888,611 | 4,027,952 | 2,763,997 |
Non-interest expense | ' | ' | ' | ' |
Salaries and benefits | 4,780,588 | 3,016,334 | 12,139,833 | 8,850,143 |
Occupancy and equipment | 1,510,527 | 933,775 | 3,794,342 | 2,756,222 |
Data processing | 459,973 | 214,187 | 1,028,907 | 631,154 |
FDIC insurance and State of Maryland assessments | 217,491 | 157,206 | 559,730 | 435,851 |
Merger and integration | 143,082 | 49,290 | 3,169,917 | 107,624 |
Core deposit premium amortization | 231,118 | 177,582 | 607,575 | 549,839 |
Loss (gain) on sales of other real estate owned | 11,072 | 48,509 | 212,296 | -110,704 |
OREO expense | 159,234 | 38,933 | 628,307 | 593,917 |
Other operating | 1,846,104 | 1,494,451 | 4,833,847 | 4,092,350 |
Total non-interest expense | 9,359,189 | 6,130,267 | 26,974,754 | 17,906,396 |
Income before income taxes | 3,173,784 | 2,920,121 | 4,589,660 | 8,495,177 |
Income tax expense | 970,510 | 912,490 | 1,208,816 | 2,739,254 |
Net income | 2,203,274 | 2,007,631 | 3,380,844 | 5,755,923 |
Less: Net loss attributable to the non-controlling interest | -5,142 | -20,664 | -29,732 | -57,678 |
Net income available to common stockholders | $2,208,416 | $2,028,295 | $3,410,576 | $5,813,601 |
Basic earnings per common share (in dollars per share) | $0.22 | $0.30 | $0.40 | $0.85 |
Diluted earnings per common share (in dollars per share) | $0.22 | $0.29 | $0.40 | $0.84 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Consolidated Statements of Comprehensive Income (Loss) | ' | ' | ' | ' |
Net income available to common stockholders | $2,208,416 | $2,028,295 | $3,410,576 | $5,813,601 |
Other comprehensive income (loss) | ' | ' | ' | ' |
Unrealized gain (loss) on securities available for sale | 2,175,946 | 1,753,314 | -7,778,478 | 2,140,983 |
Reclassification adjustment for realized gain on securities available for sale included in net income | ' | -289,511 | -641,088 | -849,539 |
Income tax effect | -858,302 | -577,397 | 3,321,098 | -509,410 |
Other comprehensive income (loss) | 1,317,644 | 886,406 | -5,098,468 | 782,034 |
Total comprehensive income (loss) | $3,526,060 | $2,914,701 | ($1,687,892) | $6,595,635 |
Consolidated_Statement_of_Chan
Consolidated Statement of Changes in Stockholders' Equity (USD $) | Total | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Non-controlling Interest |
Balance at Dec. 31, 2012 | $75,253,161 | $68,454 | $53,792,015 | $18,531,387 | $2,469,758 | $391,547 |
Balance (in shares) at Dec. 31, 2012 | 6,845,432 | 6,845,432 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Net income attributable to Old Line Bancshares, Inc. | 3,410,576 | ' | ' | 3,410,576 | ' | ' |
Unrealized loss on securities available for sale, net of income tax benefit of $3,321,098 | -5,098,468 | ' | ' | ' | -5,098,468 | ' |
Net loss attributable to non-controlling interest | -29,732 | ' | ' | ' | ' | -29,732 |
Stock options exercised | 647,438 | 631 | 646,807 | ' | ' | ' |
Stock options exercised (in shares) | ' | 63,149 | ' | ' | ' | ' |
Acquisition of WSB Holdings, Inc. | 37,647,062 | 29,095 | 37,617,967 | ' | ' | ' |
Acquisition of WSB Holdings, Inc. (in shares) | ' | 2,909,486 | ' | ' | ' | ' |
Stock based compensation awards | 184,034 | ' | 184,034 | ' | ' | ' |
Restricted stock issued | ' | 84 | -84 | ' | ' | ' |
Restricted stock issued (in shares) | ' | 8,382 | ' | ' | ' | ' |
Forfeiture of shares | ' | -20 | 20 | ' | ' | ' |
Forfeiture of shares (in shares) | ' | -2,031 | ' | ' | ' | ' |
Private placement - common stock | 12,177,569 | 9,368 | 12,168,201 | ' | ' | ' |
Private placement - common stock (in shares) | ' | 936,695 | ' | ' | ' | ' |
Common stock cash dividend $0.12 per share | -1,059,877 | ' | ' | -1,059,877 | ' | ' |
Balance at Sep. 30, 2013 | $123,131,763 | $107,612 | $104,408,960 | $20,882,086 | ($2,628,710) | $361,815 |
Balance (in shares) at Sep. 30, 2013 | 10,761,113 | 10,761,113 | ' | ' | ' | ' |
Consolidated_Statement_of_Chan1
Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Consolidated Statement of Changes in Stockholders' Equity | ' |
Unrealized loss on securities available for sale, income tax benefit (in dollars) | $3,321,098 |
Dividend per common share (in dollars per share) | $0.12 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Cash flows from operating activities | ' | ' |
Interest received | $33,053,311 | $29,092,041 |
Fees and commissions received | 2,620,340 | 1,573,317 |
Interest paid | -3,464,679 | -3,959,698 |
Cash paid to suppliers and employees | -22,325,531 | -15,432,704 |
Loans originated for sale | -22,192,101 | ' |
Proceeds from sale of loans originated for sale | 24,272,848 | ' |
Income taxes paid | -539,614 | -2,657,389 |
Net cash provided by operating activities | 11,424,574 | 8,615,567 |
Cash flows from investing activities | ' | ' |
Cash and cash equivalents of acquired bank | 38,846,599 | ' |
Purchase of investment securities available for sale | -27,016,237 | -81,559,306 |
Proceeds from disposal of investment securities | ' | ' |
Available for sale at maturity or call | 87,395,951 | 38,772,596 |
Available for sale sold | ' | 25,572,809 |
Loans made, net of principal collected | -74,260,660 | -34,950,662 |
Proceeds from sale of other real estate owned | 2,905,643 | 810,310 |
Improvements to other real estate owned | ' | -15,525 |
Redemption of equity securities | -2,109,051 | 103,550 |
Purchase of premises, equipment and software | -1,378,263 | -1,556,090 |
Net cash provided by investing activities | 24,383,982 | -52,822,318 |
Net increase (decrease) in | ' | ' |
Time deposits | -24,202,612 | -24,899,126 |
Other deposits | 57,922,907 | 65,209,819 |
Short term borrowings | -41,951,953 | 5,871,951 |
Long term borrowings | -73,606 | -68,016 |
Acquisition cash consideration | -16,966,208 | ' |
Stock proceeds from private placement | 12,177,568 | ' |
Stock options exercised | 647,439 | 23,131 |
Cash dividends paid-common stock | -1,059,878 | -819,512 |
Net cash used in financing activities | -13,506,343 | 45,318,247 |
Net increase (decrease) in cash and cash equivalents | 22,302,213 | 1,111,496 |
Cash and cash equivalents at beginning of period | 28,690,761 | 43,636,724 |
Cash and cash equivalents at end of period | 50,992,974 | 44,748,220 |
Reconciliation of net income to net cash provided by operating activities | ' | ' |
Net income | 3,380,844 | 5,755,923 |
Adjustments to reconcile net income to net cash provided by operating activities | ' | ' |
Depreciation and amortization | 1,265,324 | 897,150 |
Provision for loan losses | 990,000 | 1,125,000 |
Change in deferred loan fees net of costs | 118,905 | -215,995 |
(Gain)/loss on sales or calls of securities | -641,088 | -849,539 |
Amortization of premiums and discounts | 981,667 | 799,727 |
Change in loans held for sale | 2,080,747 | ' |
Gain on the sale of loans | -477,587 | ' |
(Gain)/loss on sales of other real estate owned | 212,296 | -110,704 |
Write down of other real estate owned | 84,040 | 281,000 |
(Gain)/loss on sale of fixed assets | 104,639 | -9,365 |
Amortization of intangible | 607,576 | 549,839 |
Deferred income taxes | 533,499 | -66,149 |
Stock based compensation awards | 184,034 | 135,381 |
Increase (decrease) in | ' | ' |
Accrued interest payable | -307,987 | -55,717 |
Income tax payable | 135,703 | 148,014 |
Accrued pension | 229,156 | 228,061 |
Other liabilities | -1,562,724 | 528,234 |
Decrease (increase) in | ' | ' |
Accrued interest receivable | 269,585 | -158,248 |
Bank owned life insurance | -501,233 | -341,141 |
Other assets | 3,737,178 | -25,904 |
Net cash provided by operating activities | 11,424,574 | 8,615,567 |
Supplemental disclosure of noncash activities: | ' | ' |
Transfer to loans from other real estated owned | 233,580 | 191,921 |
WSB Holdings, Inc. | ' | ' |
Fair value of assets and liabilities from acquisition: | ' | ' |
Fair value of tangible assets acquired | 264,156,097 | ' |
Other intangible assets acquired | 46,120,580 | ' |
Fair value of liabilities assumed | -317,436,552 | ' |
Net identifiable asset acquired over (under) liabilities assumed | ($7,159,875) | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2013 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Organization and Description of Business-Old Line Bancshares, Inc. (Old Line Bancshares) was incorporated under the laws of the State of Maryland on April 11, 2003 to serve as the holding company of Old Line Bank (Bank). The primary business of Old Line Bancshares is to own all of the capital stock of Old Line Bank. We provide a full range of banking services to customers located in Anne Arundel, Calvert, Charles, Prince George’s, and St. Mary’s counties in Maryland and surrounding areas. | |
Basis of Presentation and Consolidation-The accompanying condensed consolidated financial statements include the activity of Old Line Bancshares and its wholly owned subsidiary, Old Line Bank, and its majority owned subsidiary Pointer Ridge Office Investments, LLC (Pointer Ridge), a real estate investment company. We have eliminated all significant intercompany transactions and balances. | |
We report the non-controlling interests in Pointer Ridge separately in the consolidated balance sheet. We report the income of Pointer Ridge attributable to Old Line Bancshares on the consolidated statement of income. | |
The foregoing consolidated financial statements for the periods ended September 30, 2013 and 2012 are unaudited; however, in the opinion of management we have included all adjustments (comprising only normal recurring accruals) necessary for a fair presentation of the results of the interim period. We derived the balances as of December 31, 2012 from audited financial statements. These statements should be read in conjunction with Old Line Bancshares’ financial statements and accompanying notes included in Old Line Bancshares’ Form 10-K for the year ended December 31, 2012. Old Line Bancshares adopted one new critical accounting policy during the second quarter of this year as follows: | |
Business Combinations and Acquired Loan Accounting. Accounting principles generally accepted in the United States (US GAAP) requires that the acquisition method of accounting, formerly referred to as purchase method, be used for all business combinations and that an acquirer be identified for each business combination. Under US GAAP, the acquirer is the entity that obtains control of one or more businesses in the business combination, and the acquisition date is the date the acquirer achieves control. US GAAP requires that the acquirer recognize the fair value of assets acquired, liabilities assumed, and any noncontrolling interest in the acquiree at the acquisition date. | |
Acquired loans are recorded at fair value at the date of acquisition, and accordingly no allowance for loan losses is transferred to the acquiring entity in connection with purchase accounting. The fair values of loans with evidence of credit deterioration (purchased, credit-impaired loans) are initially recorded at fair value, but thereafter accounted for differently than purchased, non-credit-impaired loans. For purchased, credit-impaired loans, the excess of all cash flows estimated to be collectable at the date of acquisition over the purchase price of the purchase credit-impaired loan is recognized as interest income, using a level-yield basis over the life of the loan. This amount is referred to as the accretable yield. The purchased credit-impaired loan’s contractually-required payments receivable estimated to be in excess of the amount of its future cash flows expected at the date of acquisition is referred to as the non-accretable difference, and is not reflected as an adjustment to the yield, in the form of a loss accrual or a valuation allowance. | |
Subsequent to the acquisition date, management continues to monitor cash flows on a quarterly basis, to determine the performance of each purchased, credit-impaired loan in comparison to management’s initial performance expectations. Subsequent decreases to the expected cash flows will generally result in a provision for loan losses. Subsequent significant increases in cash flows result in a reversal of the provision for loan losses to the extent of prior provisions, or a reclassification of amount from non-accretable difference to accretable yield, with a positive impact on the accretion of interest income in future periods. | |
Acquired performing loans are accounted for using the contractual cash flows method of recognizing discount accretion based on the acquired loans’ contractual cash flows. Acquired performing loans are recorded as of the purchase date at fair value. Credit losses on the acquired performing loans are estimated based on analysis of the performing portfolio. A provision for loan losses is recognized for any further credit deterioration that occurs in these loans subsequent to the acquisition date. We had one acquired loan from MB&T of which we recognized further credit deterioration in the quarter ending September 30, 2013, and recorded a $290,000 specific reserve. | |
Allowance for Loan Losses - During the third quarter of 2013, management revised the methodology for the loss-rate analysis for the performing loan portfolios due to the increase in total loans and the complexity of the loan portfolio. The primary changes in the methodology were to segment loans with similar risk characteristics and change the look back period to 12 quarters. Previously we used various loss measurement periods for the different segments. Some were three year and some had history disregarded because there was so little in losses. | |
These changes were effective September 30, 2013 and resulted in no additional provision for the quarter ending September 30, 2013. Management made the following changes to the methodology during the third quarter of 2013: | |
· The portfolio is analyzed in the following segments for the ASC 450 analysis pool and is sorted by the following loan types: | |
Commercial & Industrial Loans | |
Commercial Real Estate Loans — Owner Occupied | |
Commercial Real Estate Loans — Non-owner occupied | |
Commercial Real Estate Loans — Hotels/Motels/Inns | |
Residential Land Loans | |
Residential Acquisition & Development Loans | |
Commercial Land Loans | |
Commercial Acquisition & Development Loans | |
Residential First Lien Loans (including construction) — Investor | |
Residential First Lien Loans (including construction) — Owner Occupied | |
HELOC & Closed End Junior Lien Loans | |
Consumer Installment Loans — Boats | |
Consumer Installment Loans — Other | |
Consumer Revolving & Credit Cards | |
· Within each of the above loan types, each portfolio is sorted by the risk assessment rating of each loan as Pass, Pass-Watch, Special Mention or Substandard. | |
· The Bank’s loss experience for each of the last 12 quarters is aggregated and that total is used to create a percentage of the loan portfolio as it existed at the beginning of the 12 quarter “look back.” | |
· The Bank’s loss experience (Loss Factor) is progressively tiered by risk category for Pass, Pass-Watch, Special Mention and Substandard loans by applying a higher loss factor to higher risk rated categories. Loans rated “Doubtful” or “Loss” are, by definition, impaired and will be specifically reserved based upon Bank management’s best estimate of the loss exposure for each loan. | |
Loans Held-for-Sale-The loans classified in the held-for-sale portfolio consists of loans that have been committed to be purchased by investors in the secondary market at September 30, 2013 and will be settled subsequent to that date. Only loans purchased by investors with recourse obligations are included in the allowance calculation. | |
The loans classified in the held-for-sale portfolio also include a pool of acquired impaired loans that we are currently working to market with brokers. These loans are not included in the allowance calculation due to the fair value accounting of the purchased loans. | |
The accounting and reporting policies of Old Line Bancshares conform with US GAAP. | |
Reclassifications-We have made certain reclassifications to the 2012 financial presentation to conform to the 2013 presentation. These reclassifications did not change net income or stockholders’ equity. |
POINTER_RIDGE_OFFICE_INVESTMEN
POINTER RIDGE OFFICE INVESTMENT, LLC | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
POINTER RIDGE OFFICE INVESTMENT, LLC | ' | |||||||||||||
POINTER RIDGE OFFICE INVESTMENT, LLC | ' | |||||||||||||
2. POINTER RIDGE OFFICE INVESTMENT, LLC | ||||||||||||||
Old Line Bank has a 62.5% ownership of Pointer Ridge Office Investment, LLC and we have consolidated its results of operations from the date of acquisition. | ||||||||||||||
The following table summarizes the condensed Balance Sheets and Statements of Income information for Pointer Ridge Office Investment, LLC. | ||||||||||||||
September 30, | December 31, | |||||||||||||
Balance Sheets | 2013 | 2012 | ||||||||||||
Current assets | $ | 278,672 | $ | 313,165 | ||||||||||
Non-current assets | 6,820,995 | 6,938,990 | ||||||||||||
Liabilities | 6,134,827 | 6,208,029 | ||||||||||||
Equity | 964,840 | 1,044,126 | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Statements of Income | ||||||||||||||
Revenue | $ | 230,223 | $ | 213,415 | $ | 676,613 | $ | 624,669 | ||||||
Expenses | 243,936 | 268,519 | 755,899 | 778,478 | ||||||||||
Net loss | $ | (13,713 | ) | $ | (55,104 | ) | $ | (79,286 | ) | $ | (153,809 | ) |
ACQUISITION_OF_WSB_HOLDINGS_IN
ACQUISITION OF WSB HOLDINGS, INC. | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
ACQUISITION OF WSB HOLDINGS, INC. | ' | ||||||||||
ACQUISITION OF WSB HOLDINGS, INC. | ' | ||||||||||
3. ACQUISITION OF WSB HOLDINGS, INC. | |||||||||||
On May 10, 2013, Old Line Bancshares acquired WSB Holdings, Inc. (WSB Holdings), the parent company of The Washington Savings Bank, F.S.B. (WSB). We converted each share of common stock of WSB Holdings into the right to receive, at the holder’s election, $6.0743 in cash or 0.557 shares of Old Line Bancshares’ common stock. We paid cash for any fractional shares of Old Line Bancshares’ common stock and aggregate cash consideration of $17.0 million. The total merger consideration was $54.7 million. | |||||||||||
In connection with the acquisition, WSB was merged with and into Old Line Bank, with Old Line Bank the surviving bank. | |||||||||||
The acquired assets and assumed liabilities of WSB Holdings were measured at estimated fair value. Management made significant estimates and exercised significant judgment in accounting for the acquisition of WSB Holdings. Management judgmentally assigned risk ratings to loans based on appraisals and estimated collateral values, expected cash flows, prepayment speeds and estimated loss factors to measure fair values for loans. Other real estate acquired through foreclosure was valued based upon pending sales contracts and appraised values, adjusted for current market conditions. Premises and equipment was valued based on recent appraised values. Management used quoted or current market prices to determine the fair value of investment securities, and long-term borrowings that were assumed from WSB Holdings. | |||||||||||
The statement of net assets acquired and the resulting acquisition date goodwill recorded is presented in the following table. As explained in the notes that accompany the following table, the purchased assets, assumed liabilities and identifiable intangible assets were recorded at the acquisition date fair value. | |||||||||||
As Recorded by | |||||||||||
As Recorded by | Fair Value | Old Line | |||||||||
WSB Holdings, Inc | Adjustments | Bancshares, Inc. | |||||||||
Assets | |||||||||||
Cash and due from banks | $ | 5,576,699 | $ | — | $ | 5,576,699 | |||||
Federal funds sold | 33,269,900 | (16,966,208 | ) | 16,303,692 | |||||||
Total cash and cash equivalents | 38,846,599 | (16,966,208 | ) | 21,880,391 | |||||||
Investment securities available for sale | 79,476,355 | (101,654 | )(a) | 79,374,701 | |||||||
Loans, net of deferred fees and costs | 177,204,282 | (14,263,180 | )(b) | 162,941,102 | |||||||
Allowance for loan losses | (2,767,274 | ) | 2,767,274 | (b) | — | ||||||
Premises and equipment | 4,705,902 | 5,673,151 | (c) | 10,379,053 | |||||||
Accrued interest receivable | 886,413 | — | 886,413 | ||||||||
Deferred income taxes | 7,396,519 | 4,005,790 | (d) | 11,402,309 | |||||||
Bank owned life insurance | 12,986,817 | — | 12,986,817 | ||||||||
Other real estate owned | 5,225,958 | (993,476 | )(e) | 4,232,482 | |||||||
Core deposit intangible | — | 2,434,723 | (f) | 2,434,723 | |||||||
Other assets | 4,326,538 | (567,850 | )(g) | 3,758,688 | |||||||
Total assets | $ | 328,288,109 | $ | (18,011,430 | ) | $ | 310,276,679 | ||||
Liabilities and Stockholders’ Equity | |||||||||||
Deposits | |||||||||||
Non-interest bearing | $ | 10,863,874 | $ | — | $ | 10,863,874 | |||||
Interest bearing | 204,375,389 | 955,452 | (h) | 205,330,841 | |||||||
Total deposits | 215,239,263 | 955,452 | 216,194,715 | ||||||||
Long term borrowings | 56,000,000 | 4,250,568 | (i) | 60,250,568 | |||||||
Accrued interest payable | 246,416 | — | 246,416 | ||||||||
Other liabilities | 2,979,727 | — | 2,979,727 | ||||||||
Total liabilities | $ | 274,465,406 | $ | 5,206,020 | $ | 279,671,426 | |||||
Net identifiable assets acquired over (under) liabilities assumed | 53,822,703 | (23,217,450 | ) | 30,605,253 | |||||||
Goodwill | — | 7,159,875 | 7,159,875 | ||||||||
Net assets acquired over liabilities assumed | 53,822,703 | (16,057,575 | ) | 37,765,128 | |||||||
Purchase Price Consideration-Common Stock | |||||||||||
WSB Holdings shares outstanding exchanged for stock | 5,223,633 | ||||||||||
Exchange ratio | 0.557 | ||||||||||
Old Line Bancshares shares issued to WSB Holdings | 2,909,486 | ||||||||||
Purchase price per WSB Holdings common share | $ | 6.0743 | |||||||||
Cash consideration | $ | 16,966,208 | |||||||||
Purchase price assigned to shares exchanged for stock | $ | 37,765,128 | |||||||||
Explanation of fair value adjustments | |||||||||||
(a) Adjustment reflects marking the available for sale portfolio to fair value as of the acquisition date. | |||||||||||
(b) Adjustment reflects the fair value adjustments based on Old Line Bancshares’ evaluation of the acquired loan portfolio and excludes the allowance for losses recorded by WSB Holdings. | |||||||||||
(c) Adjustment reflects the fair value adjustments based on Old Line Bancshares’ evaluation of the acquired premises and equipment. | |||||||||||
(d) Adjustment to record deferred tax asset related to fair value adjustments at 39.45% income tax rate. | |||||||||||
(e) Adjustment reflects the fair value adjustments to other real estate owned based on Old Line Bancshares’ evaluation of the acquired other real estate owned portfolio. | |||||||||||
(f) Adjustment reflects the recording of the core deposits intangible on the acquired deposit accounts. | |||||||||||
(g) Adjustment reflects the impairment of certain WSB Holdings’ prepaid and deferred accounts. | |||||||||||
(h) Adjustment arises since the rates on interest-bearing deposits are higher than rates available on similar deposits as of the acquisition date. | |||||||||||
(i) Adjustment reflects the fair value of WSB Holdings’ borrowings acquired on acquisition date and is related to the Federal Home Loan Bank of Atlanta (“FHLB”) pre-payment penalty incurred subsequent to the acquisition date in the connection with the repayment of all of WSB’s FHLB advances by Old Line Bancshares. | |||||||||||
During the third quarter of 2013, within the measurement period, goodwill was increased $946,241 associated with the acquisition of WSB Holdings. As outlined in Footnote 2 of our financial statements, this amount represented the difference between the estimated fair value of tangible and intangible assets acquired and liabilities assumed at acquisition date. This increased represents $102,484 fair value adjustment on one of our lot loans, $2,949 in our deferred tax assets and $8,310 credit on one commercial land loan and $849,118 on fair value of our investments classified as available for sale that we identified during the period. | |||||||||||
Pro Forma Results | |||||||||||
The following schedule includes consolidated statements of income data for the unaudited pro forma results for the periods ended September 30, 2013 and 2012 as if the WSB Holdings acquisition had occurred as of the beginning of the periods presented. | |||||||||||
Nine Months Ended | |||||||||||
September 30, | |||||||||||
2013 | 2012 | ||||||||||
Net interest income | $ | 31,405 | $ | 33,137 | |||||||
Other non-interest revenue | 5,275 | 5,402 | |||||||||
Total revenue | 36,680 | 38,539 | |||||||||
Provision expense | 990 | 1,125 | |||||||||
Other non-interest expense | 32,825 | 31,477 | |||||||||
Income before income taxes | 2,865 | 5,937 | |||||||||
Income tax expense | 1,102 | 2,283 | |||||||||
Net income | $ | 1,763 | $ | 3,654 | |||||||
Basic earnings per share | 0.21 | 0.48 | |||||||||
Diluted earnings per share | 0.21 | 0.47 | |||||||||
We have not included any provision for loan losses during the periods for loans acquired from WSB. In accordance with accounting for business combinations, we included the credit losses evident in the loans in the determination of the fair value of loans at the date of acquisition and eliminated the allowance for loan losses maintained by WSB at acquisition date. | |||||||||||
We have presented the pro forma financial information for illustrative purposes only and it is not necessarily indicative of the financial results of the combined companies if we actually had completed the acquisition at the beginning of the periods presented, nor does it indicate future results for any other interim or full year period. Pro forma basic and diluted earnings per common share were calculated using Old Line Bancshares’ actual weighted average shares outstanding for the periods presented, plus the incremental shares issued, assuming the acquisition occurred at the beginning of the periods presented. |
INVESTMENT_SECURITIES
INVESTMENT SECURITIES | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
INVESTMENT SECURITIES | ' | |||||||||||||||||||
INVESTMENT SECURITIES | ' | |||||||||||||||||||
4. INVESTMENT SECURITIES | ||||||||||||||||||||
Presented below is a summary of the amortized cost and estimated fair value of securities. | ||||||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||||||
cost | unrealized | unrealized | fair value | |||||||||||||||||
gains | losses | |||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Available for sale | ||||||||||||||||||||
U. S. treasury | $ | 1,249,400 | $ | 513 | $ | — | $ | 1,249,913 | ||||||||||||
U.S. government agency | 47,396,111 | 5,250 | (1,609,748 | ) | 45,791,613 | |||||||||||||||
Municipal securities | 61,815,232 | 794,982 | (2,556,967 | ) | 60,053,247 | |||||||||||||||
Mortgage backed securities: | ||||||||||||||||||||
FHLMC certificates | 5,473,276 | 86,789 | (47,436 | ) | 5,512,629 | |||||||||||||||
FNMA certificates | 19,629,429 | 236,141 | (367,592 | ) | 19,497,978 | |||||||||||||||
GNMA certificates | 42,880,388 | 170,317 | (980,782 | ) | 42,069,923 | |||||||||||||||
SBA loan pools | 7,646,296 | — | (293,967 | ) | 7,352,329 | |||||||||||||||
$ | 186,090,132 | $ | 1,293,992 | $ | (5,856,492 | ) | $ | 181,527,632 | ||||||||||||
December 31, 2012 | ||||||||||||||||||||
Available for sale | ||||||||||||||||||||
U. S. treasury | $ | 1,249,708 | $ | 1,542 | $ | — | $ | 1,251,250 | ||||||||||||
U.S. government agency | 28,493,293 | 105,183 | (27,505 | ) | 28,570,971 | |||||||||||||||
Municipal securities | 61,670,324 | 2,453,427 | (270,102 | ) | 63,853,649 | |||||||||||||||
Mortgage backed securities | ||||||||||||||||||||
FHLMC certificates | 6,448,848 | 245,541 | (4,858 | ) | 6,689,531 | |||||||||||||||
FNMA certificates | 17,600,875 | 858,903 | — | 18,459,778 | ||||||||||||||||
GNMA certificates | 50,914,071 | 700,339 | (2,699 | ) | 51,611,711 | |||||||||||||||
SBA loan pools | 1,098,701 | 5,631 | — | 1,104,332 | ||||||||||||||||
$ | 167,475,820 | $ | 4,370,566 | $ | (305,164 | ) | $ | 171,541,222 | ||||||||||||
As of September 30, 2013, securities with unrealized losses segregated by length of impairment were as follows: | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Less than 12 months | 12 Months or More | Total | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
value | losses | value | losses | value | losses | |||||||||||||||
Unrealized losses less than 12 months | ||||||||||||||||||||
U.S. government agency | $ | 42,786,362 | $ | 1,609,748 | $ | — | $ | — | $ | 42,786,362 | $ | 1,609,748 | ||||||||
Municipal securities | 33,720,874 | 2,398,106 | 1,712,342 | 158,861 | 35,433,216 | 2,556,967 | ||||||||||||||
Mortgage backed securities | 47,005,953 | 1,395,810 | — | — | 47,005,953 | 1,395,810 | ||||||||||||||
SBA loan pools | 7,352,328 | 293,967 | 7,352,328 | 293,967 | ||||||||||||||||
Total unrealized losses less than 12 months | $ | 130,865,517 | $ | 5,697,631 | $ | 1,712,342 | $ | 158,861 | $ | 132,577,859 | $ | 5,856,492 | ||||||||
December 31,2012 | ||||||||||||||||||||
Less than 12 months | 12 Months or More | Total | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
value | losses | value | losses | value | losses | |||||||||||||||
Unrealized losses less than 12 months | ||||||||||||||||||||
U.S. government agency | $ | 4,498,200 | $ | 27,505 | $ | — | $ | — | $ | 4,498,200 | $ | 27,505 | ||||||||
Municipal securities | 13,470,047 | 270,102 | — | — | 13,470,047 | 270,102 | ||||||||||||||
Mortgage backed securities | 2,797,011 | 7,557 | — | — | 2,797,011 | 7,557 | ||||||||||||||
Total unrealized losses less than 12 months | $ | 20,765,258 | $ | 305,164 | $ | — | $ | — | $ | 20,765,258 | $ | 305,164 | ||||||||
At September 30, 2013 we had three municipal securities in an unrealized loss position greater than the 12 months time frame and 141 securities in an unrealized loss position less than the 12 months time frame. At December 31, 2012 we had 35 securities in an unrealized loss position less than the 12 months time frame and no securities in an unrealized loss position greater than the 12 months time frame. | ||||||||||||||||||||
We consider all unrealized losses on securities as of September 30, 2013 to be temporary losses because we will redeem each security at face value at or prior to maturity. We have the ability and intent to hold these securities until recovery or maturity. As of September 30, 2013, we do not have the intent to sell any of the securities classified as available for sale and believe that it is more likely than not that we will not have to sell any such securities before a recovery of cost. In most cases, market interest rate fluctuations cause a temporary impairment in value. We expect the fair value to recover as the investments approach their maturity date or re-pricing date or if market yields for these investments decline. We do not believe that credit quality caused the impairment in any of these securities. Because we believe these impairments are temporary, we have not realized any loss in our consolidated statement of income. | ||||||||||||||||||||
We have recorded no gross realized gains for the three month period ending September 30, 2013 compared to $289,511 for the same three month period last year from the sale or call of investment securities. Recorded gross realized gains for the nine month period ended September 30, 2013 was $641,088 compared to $849,539 for the same nine month period last year. During the nine month periods ended September 30, 2013 and 2012, we received $87.3 million and $64.3 million, respectively, in proceeds from sales, maturities or calls of investment securities. | ||||||||||||||||||||
Contractual maturities and pledged securities at September 30, 2013 are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without prepayment penalties. We classify mortgage backed securities based on maturity date. However, we receive payments on a monthly basis. | ||||||||||||||||||||
Available for Sale | ||||||||||||||||||||
September 30, 2013 | Amortized | Fair | ||||||||||||||||||
cost | value | |||||||||||||||||||
Maturing | ||||||||||||||||||||
Within one year | $ | 1,249,400 | $ | 1,249,913 | ||||||||||||||||
Over one to five years | 11,628,857 | 11,658,412 | ||||||||||||||||||
Over five to ten years | 50,571,838 | 49,206,713 | ||||||||||||||||||
Over ten years | 122,640,037 | 119,412,594 | ||||||||||||||||||
$ | 186,090,132 | $ | 181,527,632 | |||||||||||||||||
Pledged securities | $ | 38,229,610 | $ | 37,937,586 | ||||||||||||||||
LOANS
LOANS | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
LOANS | ' | |||||||||||||||||||||||
LOANS | ' | |||||||||||||||||||||||
5. LOANS | ||||||||||||||||||||||||
Major classifications of loans held for investment are as follows: | ||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||
Held-for-investment | Legacy (1) | Acquired | Total | Legacy (1) | Acquired | Total | ||||||||||||||||||
Real estate | ||||||||||||||||||||||||
Commercial | $ | 334,552,174 | $ | 99,524,172 | $ | 434,076,346 | $ | 279,489,013 | $ | 65,396,469 | $ | 344,885,482 | ||||||||||||
Construction | 68,310,288 | 24,773,084 | 93,083,372 | 48,603,640 | 4,174,751 | 52,778,391 | ||||||||||||||||||
Residential | 56,697,617 | 97,674,279 | 154,371,896 | 38,901,489 | 52,069,937 | 90,971,426 | ||||||||||||||||||
Commercial | 105,516,338 | 11,034,397 | 116,550,735 | 88,306,302 | 10,070,234 | 98,376,536 | ||||||||||||||||||
Boats | 6,813,030 | — | 6,813,030 | — | — | |||||||||||||||||||
Other consumer | 3,380,897 | 1,064,878 | 4,445,775 | 9,944,466 | 1,059,991 | 11,004,457 | ||||||||||||||||||
575,270,344 | 234,070,810 | 809,341,154 | 465,244,910 | 132,771,382 | 598,016,292 | |||||||||||||||||||
Allowance for loan losses | (4,184,021 | ) | (241,624 | ) | (4,425,645 | ) | (3,648,723 | ) | (316,624 | ) | (3,965,347 | ) | ||||||||||||
Deferred loan costs, net | 963,167 | 11,911 | 975,078 | 1,093,983 | — | 1,093,983 | ||||||||||||||||||
$ | 572,049,490 | $ | 233,841,097 | $ | 805,890,587 | $ | 462,690,170 | $ | 132,454,758 | $ | 595,144,928 | |||||||||||||
(1) As a result of the acquisitions of Maryland Bankcorp, Inc. (Maryland Bankcorp), the parent company of Maryland Bank & Trust Company, N.A. (MB&T), in April 2011 and of WSB Holdings, we have segmented the portfolio into two components, loans originated by Old Line Bank (legacy) and loans acquired from MB&T and WSB (acquired). | ||||||||||||||||||||||||
Credit policies and Administration | ||||||||||||||||||||||||
We have adopted a comprehensive lending policy, which includes stringent underwriting standards for all types of loans. We have designed our underwriting standards to promote a complete banking relationship rather than a transactional relationship. In an effort to manage risk, prior to funding, the loan committee consisting of the Executive Officers and seven members of the Board of Directors must approve by a majority vote all credit decisions in excess of a lending officer’s lending authority. Management believes that it employs experienced lending officers, secures appropriate collateral and carefully monitors the financial condition of its borrowers and loan concentrations. | ||||||||||||||||||||||||
In addition to the internal business processes employed in the credit administration area, the Bank retains an outside independent firm to review the loan portfolio. This firm performs a detailed annual review and an interim update. | ||||||||||||||||||||||||
We use the results of the firm’s report to validate our internal ratings and we review the commentary on specific loans and on our loan administration activities in order to improve our operations. | ||||||||||||||||||||||||
Commercial Real Estate Loans | ||||||||||||||||||||||||
Commercial real estate lending entails significant risks. Risks inherent in managing our commercial real estate portfolio relate to sudden or gradual drops in property values as well as changes in the economic climate that may detrimentally impact the borrower’s ability to repay. We attempt to mitigate these risks by carefully underwriting these loans. We also generally require the personal or corporate guarantee(s) of the owners and/or occupant(s) of the property. For loans of this type in excess of $250,000, we monitor the financial condition and operating performance of the borrower through a review of annual tax returns and updated financial statements. In addition, we meet with the borrower and/or perform site visits as required. Many of the loans acquired do not comply with underwriting standards that we maintain. Accordingly, during our due diligence process, we evaluated these loans using our underwriting standards and discounted the book value of these loans. We subsequently incorporated this discounted book value into our initial purchase price. | ||||||||||||||||||||||||
Management tracks all loans secured by commercial real estate. With the exception of loans to the hospitality industry, the properties secured by commercial real estate are diverse in terms of type. This diversity helps to reduce our exposure to economic events that affect any single market or industry. As a general rule, we avoid financing single purpose properties unless other underwriting factors are present to help mitigate the risk. As previously mentioned, we do have a concentration in the hospitality industry. At September 30, 2013 and December 31, 2012, we had approximately $66.7 million and $61.3 million, respectively, of commercial real estate loans to the hospitality industry. An individual review of these loans indicates that they generally have a low loan to value, more than acceptable existing or projected cash flow, are to experienced operators and are generally dispersed throughout the region. | ||||||||||||||||||||||||
Real Estate Construction Loans | ||||||||||||||||||||||||
This segment of our portfolio consists of funds advanced for construction of single family residences, multi-family housing and commercial buildings. These loans generally have short durations, meaning maturities typically of nine months or less. Residential houses, multi-family dwellings and commercial buildings under construction and the underlying land for which the loan was obtained secure the construction loans. All of these loans are concentrated in our primary market area. | ||||||||||||||||||||||||
Construction lending also entails significant risk. These risks involve larger loan balances concentrated with single borrowers with funds advanced upon the security of the land or the project under construction. An appraisal of the property estimates the value of the project prior to completion of construction. Thus, it is more difficult to accurately evaluate the total loan funds required to complete a project and related loan to value ratios. To mitigate the risks, we generally limit loan amounts to 80% of appraised values and obtain first lien positions on the property. We generally only offer real estate construction financing to experienced builders, commercial entities or individuals who have demonstrated the ability to obtain a permanent loan “take-out.” We also perform a complete analysis of the borrower and the project under construction. This analysis includes a review of the cost to construct, the borrower’s ability to obtain a permanent “take-out”, the cash flow available to support the debt payments and construction costs in excess of loan proceeds, and the value of the collateral. During construction, we advance funds on these loans on a percentage of completion basis. We inspect each project as needed prior to advancing funds during the term of the construction loan. | ||||||||||||||||||||||||
Residential Real Estate Loans | ||||||||||||||||||||||||
We offer a variety of consumer oriented residential real estate loans including home equity lines of credit, home improvement loans and first or second mortgages on investment properties. Our residential loan portfolio consists of a diverse client base. Although most of these loans are in our primary market area, the diversity of the individual loans in the portfolio reduces our potential risk. Usually, we secure our residential real estate loans with a security interest in the borrower’s primary or secondary residence with a loan to value not exceeding 85%. Our initial underwriting includes an analysis of the borrower’s debt/income ratio which generally may not exceed 40%, collateral value, length of employment and prior credit history. We do not originate any subprime residential real estate loans. | ||||||||||||||||||||||||
Commercial Business Lending | ||||||||||||||||||||||||
Our commercial business lending consists of lines of credit, revolving credit facilities, accounts receivable financing, term loans, equipment loans, SBA loans, standby letters of credit and unsecured loans. We originate commercial business loans for any business purpose including the financing of leasehold improvements and equipment, the carrying of accounts receivable, general working capital, and acquisition activities. We have a diverse client base and we do not have a concentration of these types of loans in any specific industry segment. We generally secure commercial business loans with accounts receivable, equipment, deeds of trust and other collateral such as marketable securities, cash value of life insurance and time deposits at Old Line Bank. | ||||||||||||||||||||||||
Commercial business loans generally depend on the success of the business for repayment. They may also involve high average balances, increased difficulty monitoring and a high risk of default. To help manage this risk, we typically limit these loans to proven businesses and we generally obtain appropriate collateral and personal guarantees from the borrower’s principal owners and monitor the financial condition of the business. For loans in excess of $250,000, monitoring generally includes a review of the borrower’s annual tax returns and updated financial statements. | ||||||||||||||||||||||||
Consumer Installment Lending | ||||||||||||||||||||||||
We offer various types of secured and unsecured consumer loans. We make consumer loans for personal, family or household purposes as a convenience to our customer base. However, these loans are not a focus of our lending activities. As a general guideline, a consumer’s total debt service should not exceed 40% of his or her gross income. The underwriting standards for consumer loans include a determination of the applicant’s payment history on other debts and an assessment of his or her ability to meet existing obligations and payments on the proposed loan. | ||||||||||||||||||||||||
Consumer loans are risky because they are unsecured or rapidly depreciating assets secure these loans. Repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment of the outstanding loan balance because of the greater likelihood of damage, loss or depreciation. Consumer loan collections depend on the borrower’s continuing financial stability. If a borrower suffers personal financial difficulties, the consumer may not repay the loan. Also, various federal and state laws, including bankruptcy and insolvency laws, may limit the amount we can recover on such loans. | ||||||||||||||||||||||||
Concentrations of Credit | ||||||||||||||||||||||||
Most of our lending activity occurs within the state of Maryland within the suburban Washington D.C. market area in Anne Arundel, Calvert, Charles, Prince George’s and St. Mary’s counties. The majority of our loan portfolio consists of commercial real estate loans and commercial and industrial loans. As of September 30, 2013 and December 31, 2012, the only industry in which we had a concentration of loans was the hospitality industry, as previously mentioned. | ||||||||||||||||||||||||
Non-Accrual and Past Due Loans | ||||||||||||||||||||||||
We consider all loans past due if the borrower has not paid the required principal and interest payments when due under the original or modified terms of the promissory note and place a loan on non-accrual status when the payment of principal or interest has become 90 days past due. When we classify a loan as non-accrual, we no longer accrue interest on such loan and we reverse any interest previously accrued but not collected. We will generally restore a non-accrual loan to accrual status when the borrower brings delinquent principal and interest payments current and we expect to collect future monthly principal and interest payments. We recognize interest on non-accrual legacy loans only when received. We originally recorded purchased, credit-impaired loans at fair value upon acquisition, and an accretable yield is established and recognized as interest income on purchased loans to the extent subsequent cash flows support the estimated accretable yield. Purchased, credit-impaired loans that perform consistent with the accretable yield expectations are not reported as non-accrual or non-performing. However, purchased, credit-impaired loans that do not continue to perform according to accretable yield expectations are considered impaired, and presented as non-accrual and non-performing. Currently, management expects to fully collect the carrying value of acquired, credit-impaired loans. | ||||||||||||||||||||||||
The table below presents an aging analysis of the loan held for investment portfolio at September 30, 2013 and December 31, 2012. | ||||||||||||||||||||||||
Age Analysis of Past Due Loans | ||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||
Legacy | Acquired | Total | Legacy | Acquired | Total | |||||||||||||||||||
Current | $ | 565,917,029 | $ | 227,454,582 | $ | 793,371,611 | $ | 459,073,548 | $ | 127,754,017 | $ | 586,827,565 | ||||||||||||
Accruing past due loans: | ||||||||||||||||||||||||
30-59 days past due | ||||||||||||||||||||||||
Real estate | 737,044 | 1,779,236 | 2,516,280 | 218,700 | 447,399 | 666,099 | ||||||||||||||||||
Commercial | — | 34,827 | 34,827 | 436,806 | 36,923 | 473,729 | ||||||||||||||||||
Consumer | — | 386 | 386 | — | 45,322 | 45,322 | ||||||||||||||||||
Total 30-59 days past due | 737,044 | 1,814,449 | 2,551,493 | 655,506 | 529,644 | 1,185,150 | ||||||||||||||||||
60-89 days past due | ||||||||||||||||||||||||
Real estate | 1,121,860 | 1,170,389 | 2,292,249 | 1,141,779 | 62,852 | 1,204,631 | ||||||||||||||||||
Commercial | 452,647 | — | 452,647 | — | — | — | ||||||||||||||||||
Consumer | — | 97 | 97 | 1,453 | 9,882 | 11,335 | ||||||||||||||||||
Total 60-89 days past due | 1,574,507 | 1,170,486 | 2,744,993 | 1,143,232 | 72,734 | 1,215,966 | ||||||||||||||||||
90 or more days past due | ||||||||||||||||||||||||
Real estate | 1,849,685 | 3,401,580 | 5,251,265 | — | — | — | ||||||||||||||||||
Consumer | 101,420 | — | 101,420 | — | 6,410 | 6,410 | ||||||||||||||||||
Total 90 or more days past due | 1,951,105 | 3,401,580 | 5,352,685 | — | 6,410 | 6,410 | ||||||||||||||||||
Total accruing past due loans | 4,262,656 | 6,386,515 | 10,649,171 | 1,798,738 | 608,788 | 2,407,526 | ||||||||||||||||||
Recorded Investment Non-accruing loans: (1) | ||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial | — | — | — | 1,226,011 | 1,401,187 | 2,627,198 | ||||||||||||||||||
Construction | — | — | — | — | 100,000 | 100,000 | ||||||||||||||||||
Residential | 552,877 | — | 552,877 | 591,873 | 2,555,374 | 3,147,247 | ||||||||||||||||||
Commercial | 1,302,147 | — | 1,302,147 | — | 35,392 | 35,392 | ||||||||||||||||||
Consumer | 14,781 | — | 14,781 | — | — | — | ||||||||||||||||||
Total Recorded Investment Non-accruing past due loans: | 1,869,805 | — | 1,869,805 | 1,817,884 | 4,091,953 | 5,909,837 | ||||||||||||||||||
Total Financing Receivables (Loans) | $ | 572,049,490 | $ | 233,841,097 | $ | 805,890,587 | $ | 462,690,170 | $ | 132,454,758 | $ | 595,144,928 | ||||||||||||
(1) Acquired, credit-impaired loans performing in accordance with accretable yield estimates are reported as accruing loans. | ||||||||||||||||||||||||
We consider all non-performing loans and troubled debt restructurings (TDRs) to be impaired. We do not recognize interest income on non-performing loans during the time period that the loans are non-performing. We only recognize interest income on non-performing loans when we receive payment in full for all amounts due of all contractually required principle and interest, and the loan is current with its contractual terms. | ||||||||||||||||||||||||
The tables below present our impaired loans at September 30, 2013 and December 31, 2012. | ||||||||||||||||||||||||
Three months September 30, 2013 | Nine months September 30, 2013 | |||||||||||||||||||||||
Unpaid | Recorded | Related | Average | Interest | Average | Interest Income | ||||||||||||||||||
Principal | Investment | Allowance | Recorded | Income | Recorded | Recognized | ||||||||||||||||||
Balance | Investment | Recognized | Investment | |||||||||||||||||||||
Legacy | ||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||
Commercial | $ | 1,302,147 | $ | 1,302,147 | $ | — | $ | 1,314,245 | $ | — | $ | 1,341,363 | $ | — | ||||||||||
Construction | — | — | — | — | — | — | — | |||||||||||||||||
Residential | 426,989 | 426,989 | — | 427,156 | — | 433,529 | — | |||||||||||||||||
Commercial | 125,888 | 125,888 | — | 126,790 | — | 130,163 | — | |||||||||||||||||
Consumer | 14,781 | 14,781 | — | 9,927 | 64 | 14,914 | 64 | |||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||
Commercial | — | — | — | — | — | — | — | |||||||||||||||||
Construction | — | — | — | — | — | — | — | |||||||||||||||||
Residential | 499,122 | 499,122 | 25,000 | 499,122 | 4,839 | 499,122 | 12,525 | |||||||||||||||||
Commercial | — | — | — | — | — | — | ||||||||||||||||||
Total legacy impaired | 2,368,927 | 2,368,927 | 25,000 | 2,377,240 | 4,903 | 2,419,091 | 12,589 | |||||||||||||||||
Acquired (1) | ||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||
Commercial | — | — | — | — | — | — | — | |||||||||||||||||
Construction | — | — | — | — | — | — | — | |||||||||||||||||
Residential | 696,110 | 655,233 | — | 656,080 | 8,424 | 659,818 | 24,107 | |||||||||||||||||
Commercial | 88,234 | 88,234 | — | 88,513 | 1,511 | 89,421 | 3,406 | |||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||
Commercial | 241,624 | 241,624 | 241,624 | 241,624 | — | 241,624 | — | |||||||||||||||||
Construction | — | — | — | — | — | — | — | |||||||||||||||||
Residential | — | — | — | — | — | — | — | |||||||||||||||||
Commercial | — | — | — | — | — | — | — | |||||||||||||||||
Total acquired impaired | 1,025,968 | 985,091 | 241,624 | 986,217 | 9,935 | 990,863 | 27,513 | |||||||||||||||||
Total impaired | $ | 3,394,895 | $ | 3,354,018 | $ | 266,624 | $ | 3,363,457 | 14,838 | 3,409,954 | 40,102 | |||||||||||||
(1) Generally accepted accounting principles require that we initially record acquired loans at fair value which includes a discount for loans with credit impairment. These loans are not performing according to their contractual terms and meet the definition of an acquired, credit-impaired loan. Although we do not accrue interest income at the contractual rate on these loans, we do recognize an accretable yield as interest income to the extent such yield is supported by cash flow analysis of the underlying loans. Acquired, credit-impaired loans where the cash flows do not perform according to initial accretable yield estimates are considered impaired. | ||||||||||||||||||||||||
Impaired Loans | ||||||||||||||||||||||||
Twelve months ended December 31, 2012 | ||||||||||||||||||||||||
Unpaid | Recorded | Related | Average | Interest | ||||||||||||||||||||
Principal | Investment | Allowance | Recorded | Income | ||||||||||||||||||||
Balance | Investment | Recognized | ||||||||||||||||||||||
Legacy | ||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||
Commercial | $ | 874,735 | $ | 874,735 | $ | — | $ | 686,724 | $ | — | ||||||||||||||
Construction | — | — | — | 727,003 | — | |||||||||||||||||||
Residential | 591,873 | 591,873 | — | 353,680 | 76,309 | |||||||||||||||||||
Commercial | — | — | — | 145,841 | — | |||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||
Commercial | 849,462 | 849,462 | 125,000 | 1,769,664 | 31,559 | |||||||||||||||||||
Construction | — | — | — | — | — | |||||||||||||||||||
Residential | — | — | — | — | — | |||||||||||||||||||
Commercial | — | — | — | 77,976 | — | |||||||||||||||||||
Consumer | — | — | — | 142,671 | — | |||||||||||||||||||
Total legacy impaired | 2,316,070 | 2,316,070 | 125,000 | 3,903,559 | 107,868 | |||||||||||||||||||
Acquired (1) | ||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||
Commercial | 2,180,807 | 1,159,563 | — | 1,664,384 | 39,476 | |||||||||||||||||||
Construction | 2,538,565 | 100,000 | — | 683,201 | 4,186 | |||||||||||||||||||
Residential | 3,371,582 | 1,798,180 | — | 1,567,514 | 34,931 | |||||||||||||||||||
Commercial | 214,697 | 126,140 | — | 172,982 | 13,896 | |||||||||||||||||||
Consumer | — | — | — | 51,540 | — | |||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||
Commercial | 1,628,156 | 241,624 | 241,624 | 657,812 | 6,319 | |||||||||||||||||||
Construction | — | — | — | — | — | |||||||||||||||||||
Residential | — | — | — | — | — | |||||||||||||||||||
Commercial | 1,620,660 | 1,361,520 | 75,000 | 543,133 | 45,963 | |||||||||||||||||||
Total acquired impaired | 11,554,467 | 4,787,027 | 316,624 | 5,340,566 | 144,771 | |||||||||||||||||||
Total impaired | $ | 13,870,537 | $ | 7,103,097 | $ | 441,624 | $ | 9,244,125 | $ | 252,639 | ||||||||||||||
(1) Generally accepted accounting principles require that we initially record acquired loans at fair value which includes a discount for loans with credit impairment. These loans are not performing according to their contractual terms and meet the definition of an acquired, credit-impaired loan. Although we do not accrue interest income at the contractual rate on these loans, we do recognize an accretable yield as interest income to the extent such yield is supported by cash flow analysis of the underlying loans. Acquired, credit-impaired loans where the cash flows do not perform according to initial accretable yield estimates are considered impaired. | ||||||||||||||||||||||||
The table below presents the contract amount due and recorded book balance of the non-accrual loans at September 30, 2013 and December 31, 2012. | ||||||||||||||||||||||||
Loans on Non-accrual Status | ||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||
# of | Unpaid | Recorded | Interest Not | # of | Unpaid | Recorded | Interest Not | |||||||||||||||||
Contracts | Principal | Investment | Accrued | Contracts | Principal | Investment | Accrued | |||||||||||||||||
Balance | Balance | |||||||||||||||||||||||
Legacy | ||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||
Commercial | 2 | $ | 2,261,011 | $ | 1,302,147 | $ | 85,660 | 2 | $ | 1,226,011 | $ | 1,226,011 | $ | 103,529 | ||||||||||
Residential | 2 | 552,877 | 552,877 | 46,176 | 2 | 591,873 | 591,873 | 25,449 | ||||||||||||||||
Consumer | 2 | 14,781 | 14,781 | 31 | — | — | — | — | ||||||||||||||||
Total non-accrual loans | 6 | 2,828,669 | 1,869,805 | 131,867 | 4 | 1,817,884 | 1,817,884 | 128,978 | ||||||||||||||||
Acquired (1) | ||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||
Commercial | — | — | — | — | 8 | 3,808,963 | 1,401,187 | 649,266 | ||||||||||||||||
Construction | — | — | — | — | 4 | 2,538,565 | 100,000 | 592,476 | ||||||||||||||||
Residential | — | — | — | — | 10 | 4,346,364 | 2,555,374 | 526,669 | ||||||||||||||||
Commercial | — | — | — | — | 3 | 123,949 | 35,392 | 45,787 | ||||||||||||||||
Total non-accrual loans | — | — | — | — | 25 | 10,817,841 | 4,091,953 | 1,814,198 | ||||||||||||||||
(1) Generally accepted accounting principles require that we initially record acquired loans at fair value which includes a discount for loans with credit impairment. These loans are not performing according to their contractual terms and meet the definition of an acquired, credit-impaired loan. Although we do not accrue interest income at the contractual rate on these loans, we do recognize an accretable yield as interest income to the extent such yield is supported by cash flow analysis of the underlying loans. Acquired, credit-impaired loans where the cash flows do not perform according to initial accretable yield estimates are considered impaired. | ||||||||||||||||||||||||
We consider a loan a TDR when we conclude that both of the following conditions exist: the restructuring constitutes a concession and the debtor is experiencing financial difficulties. | ||||||||||||||||||||||||
Restructured loans at September 30, 2013 consisted of six loans for $1,242,589 compared to five loans at December 31, 2012 for $1,193,260. | ||||||||||||||||||||||||
We had no loans that were modified to a TDR during the three months ending September 30, 2013 and 2012. | ||||||||||||||||||||||||
The following presents, by class, information related to loans modified in a TDR during the nine months ending September 30, 2013 and 2012. | ||||||||||||||||||||||||
Loans Modified as a TDR for the Nine Months Ended | ||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||||||||||
Troubled Debt Restructurings: | Number of | Recorded Investment | Number of | Recorded Investment | ||||||||||||||||||||
(dollars in thousands) | Contracts | (as of period end) | Contracts | (as of period end) | ||||||||||||||||||||
Acquired: | ||||||||||||||||||||||||
Residential Real Estate | 1 | $ | 60 | — | $ | — | ||||||||||||||||||
Total TDRs | 1 | $ | 60 | — | $ | — | ||||||||||||||||||
We had no loans that were modified as a TDR that defaulted within twelve months of the modification date during the three and nine month periods ending September 30, 2013. | ||||||||||||||||||||||||
Acquired impaired loans | ||||||||||||||||||||||||
Acquired loans are recorded at fair value at the date of acquisition, and accordingly no allowance for loan losses is transferred to the acquiring entity in connection with purchase accounting. The fair values of loans with evidence of credit deterioration (purchased, credit-impaired loans) are initially recorded at fair value, but thereafter accounted for differently than purchased, non-credit-impaired loans. For purchased, credit-impaired loans, the excess of all cash flows estimated to be collectable at the date of acquisition over the purchase price of the purchase credit-impaired loan is recognized as interest income, using a level-yield basis over the life of the loan. This amount is referred to as the accretable yield. The purchased credit-impaired loan’s contractually-required payments receivable estimated to be in excess of the amount of its future cash flows expected at the date of acquisition is referred to as the non-accretable difference, and is not reflected as an adjustment to the yield, in the form of a loss accrual or a valuation allowance. | ||||||||||||||||||||||||
Subsequent to the acquisition date, management continues to monitor cash flows on a quarterly basis, to determine the performance of each purchased, credit-impaired loan in comparison to management’s initial performance expectations. Subsequent decreases to the expected cash flows will generally result in a provision for loan losses. Subsequent significant increases in cash flows result in a reversal of the provision for loan losses to the extent of prior provisions, or a reclassification of amount from non-accretable difference to accretable yield, with a positive impact on the accretion of interest income in future periods. | ||||||||||||||||||||||||
Acquired performing loans are accounted for using the contractual cash flows method of recognizing discount accretion based on the acquired loans’ contractual cash flows. Acquired performing loans are recorded as of the purchase date at fair value. Credit losses on the acquired performing loans are estimated based on analysis of the performing portfolio. A provision for loan losses is recognized for any further credit deterioration that occurs in these loans subsequent to the acquisition date. | ||||||||||||||||||||||||
The following table outlines the contractually required payments receivable, cash flows we expect to receive, non-accretable credit adjustments and the accretable yield for all acquired impaired loans as of the acquisition date. | ||||||||||||||||||||||||
WSB Acquired Impaired Loans as of May 10, 2013 | ||||||||||||||||||||||||
May 10, 2013 | Contractually | Non-Accretable | Cash Flows | Accretable | Loans | |||||||||||||||||||
Required | Credit | Expected To Be | Yield | Receivable | ||||||||||||||||||||
Payments | Adjustments | Collected | ||||||||||||||||||||||
Receivable | ||||||||||||||||||||||||
Business loans risk rated 4 at acquisition | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Business loans risk rated 5 at acquisition | 33,038 | 19,822 | 13,216 | 21 | 13,195 | |||||||||||||||||||
Business loans risk rated 6 at acquisition | 233,880 | 140,328 | 93,552 | 10,765 | 82,787 | |||||||||||||||||||
Total business loans | 266,918 | 160,150 | 106,768 | 10,786 | 95,982 | |||||||||||||||||||
Real estate loans risk rated 4 at acquisition | 6,352,445 | 2,155,197 | 4,197,248 | 655,823 | 3,541,425 | |||||||||||||||||||
Real estate loans risk rated 5 at acquisition | 7,346,174 | 1,938,104 | 5,408,070 | 643,135 | 4,764,935 | |||||||||||||||||||
Real estate loans risk rated 6 at acquisition | 19,385,909 | 8,261,491 | 11,124,418 | 1,394,568 | 9,729,850 | |||||||||||||||||||
Real estate loans risk rated 7 at acquisition | 424,784 | 157,367 | 267,417 | (60,149 | ) | 327,566 | ||||||||||||||||||
Total real estate loans | 33,509,312 | 12,512,159 | 20,997,153 | 2,633,377 | 18,363,776 | |||||||||||||||||||
Total impaired loans acquired | $ | 33,776,230 | $ | 12,672,309 | $ | 21,103,921 | $ | 2,644,163 | $ | 18,459,758 | ||||||||||||||
At our acquisition of WSB Holdings, we recorded all loans acquired at the estimated fair value on their purchase date with no carryover of the related allowance for loan and lease losses. On the acquisition date, we segregated the loan portfolio into two loan pools, performing and non-performing. | ||||||||||||||||||||||||
We had an independent third party determine the net discounted value of cash flows on approximately 450 performing loans totaling $143.5 million. The valuation took into consideration the loans’ underlying characteristics, including account types, remaining terms, annual interest rates, interest types, past delinquencies, timing of principal and interest payments, current market rates, loan to value ratios, loss exposures, and remaining balances. These performing loans were segregated into pools based on loan and payment type and in some cases, risk grade. The effect of this fair valuation process was a net premium of $3.2 million at acquisition. We then adjusted these values for inherent credit risk within each pool, which resulted in a total non-accretable credit adjustment of $2.5 million. | ||||||||||||||||||||||||
We also individually evaluated 128 impaired loans totaling $33.7 million to determine the fair value as of the May 10, 2013 measurement date. In determining the fair value for each individually evaluated impaired loan, we considered a number of factors including the remaining life of the acquired loans, estimated prepayments, estimated loss ratios, estimated value of the underlying collateral and net present value of cash flows we expect to receive, among others. | ||||||||||||||||||||||||
We established a credit risk related non-accretable difference of $12.7 million relating to these acquired, credit impaired loans, reflected in the recorded net fair value. We further estimated the timing and amount of expected cash flows in excess of the estimated fair value and established an accretable discount of $2.6 million on the acquisition date relating to these impaired loans. | ||||||||||||||||||||||||
We have re-classified $21.1 million (net of credit marks) of our acquired loans to available for sale. These loans consist primarily of purchase credit impaired loans that we are currently working to market with brokers. We expect settlement on these loans to occur in the fourth quarter of 2013. However, at this time, we cannot estimate the current amount of gain or loss on these loans. | ||||||||||||||||||||||||
The following table outlines the contractually required payments receivable, cash flows we expect to receive, non-accretable credit adjustments and the accretable yield for all acquired impaired loans from MB&T and WSB as of September 30, 2013. | ||||||||||||||||||||||||
Acquired Impaired Loans as of September 30, 2013 | ||||||||||||||||||||||||
September 30, 2013 | Contractually | Non-Accretable | Cash Flows | Accretable | Loans | |||||||||||||||||||
Required | Credit | Expected To Be | Yield | Receivable | ||||||||||||||||||||
Payments | Adjustments | Collected | ||||||||||||||||||||||
Receivable | ||||||||||||||||||||||||
Business loans risk rated 4 at acquisition | $ | 63,041 | $ | 8,835 | $ | 54,206 | $ | — | $ | 54,206 | ||||||||||||||
Business loans risk rated 5 at acquisition | 6,196 | 2,845 | 3,351 | — | 3,351 | |||||||||||||||||||
Business loans risk rated 6 at acquisition | — | — | — | — | — | |||||||||||||||||||
Total business loans | 69,237 | 11,680 | 57,557 | — | 57,557 | |||||||||||||||||||
Real estate loans risk rated 4 at acquisition | 4,744,213 | 1,053,341 | 3,690,872 | (14,405 | ) | 3,705,277 | ||||||||||||||||||
Real estate loans risk rated 5 at acquisition | 2,198,505 | 418,325 | 1,780,180 | 64,280 | 1,715,900 | |||||||||||||||||||
Real estate loans risk rated 6 at acquisition | 8,548,075 | 4,660,493 | 3,887,582 | — | 3,887,582 | |||||||||||||||||||
Real estate loans risk rated 7 at acquisition | 53,828 | 32,296 | 21,532 | — | 21,532 | |||||||||||||||||||
Total real estate loans | 15,544,621 | 6,164,455 | 9,380,166 | 49,875 | 9,330,291 | |||||||||||||||||||
Total impaired loans acquired | $ | 15,613,858 | $ | 6,176,135 | $ | 9,437,723 | $ | 49,875 | $ | 9,387,848 | ||||||||||||||
Accretable Yield | ||||||||||||||||||||||||
Beginning balance December 31, 2012 | $ | — | ||||||||||||||||||||||
Additions due to WSB acquisition | 2,746,647 | |||||||||||||||||||||||
Accreted to income | (1,664,534 | ) | ||||||||||||||||||||||
Reclassification from non-accretable (1) | 1,655,520 | |||||||||||||||||||||||
Reclassification to loans held for sale (2) | (2,687,758 | ) | ||||||||||||||||||||||
Ending balance September 30, 2013 | $ | 49,875 | ||||||||||||||||||||||
(1) Represents amounts paid in full on loans, payments on loans with zero balances and an increase in cash flows expected to be collected. | ||||||||||||||||||||||||
(2) Represent loans reclassified as held for sale. We have pooled the previously acquired impaired loans which are scheduled for sale in the fourth quarter. | ||||||||||||||||||||||||
The following table outlines the contractually required payments receivable, cash flows we expect to receive, non-accretable credit adjustments and the accretable yield for all acquired impaired loans as of December 31, 2012. | ||||||||||||||||||||||||
Acquired Impaired Loans as of December 31, 2012 | ||||||||||||||||||||||||
December 31, 2012 | Contractually | Non-Accretable | Cash Flows | Loans | ||||||||||||||||||||
Required | Credit | Expected To Be | Receivable | |||||||||||||||||||||
Payments | Adjustments | Collected | ||||||||||||||||||||||
Receivable | ||||||||||||||||||||||||
Business loans risk rated 4 at acquisition | $ | 1,371,081 | $ | 205,662 | $ | 1,165,419 | $ | 1,165,419 | ||||||||||||||||
Business loans risk rated 5 at acquisition | 50,153 | 42,882 | 7,271 | 7,271 | ||||||||||||||||||||
Business loans risk rated 6 at acquisition | 87,422 | 52,030 | 35,392 | 35,392 | ||||||||||||||||||||
Total business loans | 1,508,656 | 300,574 | 1,208,082 | 1,208,082 | ||||||||||||||||||||
Real estate loans risk rated 4 at acquisition | 3,526,864 | 482,256 | 3,044,608 | 3,044,608 | ||||||||||||||||||||
Real estate loans risk rated 5 at acquisition | 3,474,335 | 1,706,877 | 1,767,458 | 1,767,458 | ||||||||||||||||||||
Real estate loans risk rated 6 at acquisition | 16,420,887 | 9,077,153 | 7,343,734 | 7,343,734 | ||||||||||||||||||||
Total real estate loans | 23,422,086 | 11,266,286 | 12,155,800 | 12,155,800 | ||||||||||||||||||||
Total impaired loans acquired | $ | 24,930,742 | $ | 11,566,860 | $ | 13,363,882 | $ | 13,363,882 | ||||||||||||||||
Accretable Yield | ||||||||||||||||||||||||
Beginning balance December 31, 2011 | $ | — | ||||||||||||||||||||||
Accreted to income | (3,343,955 | ) | ||||||||||||||||||||||
Reclassification from non-accretable (1) | 3,343,955 | |||||||||||||||||||||||
Ending balance December 31, 2012 | $ | — | ||||||||||||||||||||||
(1) Represents amounts paid in full on loans, payments on loans with zero balances and an increase in cash flows expected to be collected. | ||||||||||||||||||||||||
Credit Quality Indicators | ||||||||||||||||||||||||
We review the adequacy of the allowance for loan losses at least quarterly. Our review includes evaluation of impaired loans as required by ASC Topic 310-Receivables, and ASC Topic 450 Contingencies. Also, incorporated in determining the adequacy of the allowance is guidance contained in the Securities and Exchange Commission’s SAB No. 102, Loan Loss Allowance Methodology and Documentation; the Federal Financial Institutions Examination Council’s Policy Statement on Allowance for Loan and Lease Losses Methodologies and Documentation for Banks and Savings Institutions, and the Interagency Policy Statement on the Allowance for Loan and Lease Losses provided by the Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, National Credit Union Administration and Office of Thrift Supervision. | ||||||||||||||||||||||||
We base the evaluation of the adequacy of the allowance for loan losses upon loan categories. We categorize loans as installment and other consumer loans (other than boat loans), boat loans, real estate loans and commercial loans. We further divide commercial and real estate loans by risk rating and apply loss ratios by risk rating, to determine estimated loss amounts. We evaluate delinquent loans and loans for which management has knowledge about possible credit problems of the borrower or knowledge of problems with collateral separately and assign loss amounts based upon the evaluation. | ||||||||||||||||||||||||
During the third quarter of 2013, management revised the methodology for the loss-rate analysis for the performing loan portfolios due to the increase in total loans and the complexity of the loan portfolio. The primary changes in the methodology were to change the way loans are segmented with similar risk characteristics and change the look back period of charge-off history to 12 quarters. These changes were effective September 30, 2013 but did not result in a material change for the quarter ending September 30, 2013. | ||||||||||||||||||||||||
We determine loss ratios for installment and other consumer loans and real estate loans based upon a review of prior 12 months delinquency trends for the category, the three year loss ratio for the category, peer group loss ratios and industry standards. | ||||||||||||||||||||||||
With respect to commercial loans, management assigns a risk rating of one through eight as follows: | ||||||||||||||||||||||||
· Risk rating 1 (Highest Quality) is normally assigned to investment grade risks, meaning that level of risk is associated with entities having access (or capable of access) to the public capital markets and the loan underwriting in question conforms to the standards of institutional credit providers. We also include in this category loans with a perfected security interest in U.S. government securities, investment grade government sponsored entities’ bonds, investment grade municipal bonds, insured savings accounts, and insured certificates of deposits drawn on high quality financial institutions. | ||||||||||||||||||||||||
· Risk rating 2 (Good Quality) is normally assigned to a loan with a sound primary and secondary source of repayment. The borrower may have access to alternative sources of financing. This loan carries a normal level | ||||||||||||||||||||||||
· of risk, with minimal loss exposure. The borrower has the ability to perform according to the terms of the credit facility. Cash flow coverage is greater than 1.25:1 but may be vulnerable to more rapid deterioration than the higher quality loans. We may also include loans secured by high quality traded stocks, lower grade municipal bonds and uninsured certificates of deposit. | ||||||||||||||||||||||||
Characteristics of such credits should include: (a) sound primary and secondary repayment sources; (b) strong debt capacity and coverage; and (c) good management in all key positions. A credit secured by a properly margined portfolio of marketable securities, but with some portfolio concentration, also would qualify for this risk rating. Additionally, individuals with significant liquidity, low leverage and a defined source of repayment would fall within this risk rating. | ||||||||||||||||||||||||
· Risk rating 3 (Acceptable Quality) is normally assigned when the borrower is a reasonable credit risk and demonstrates the ability to repay the debt from normal business operations. Risk factors may include reliability of margins and cash flows, liquidity, dependence on a single product or industry, cyclical trends, depth of management, or limited access to alternative financing sources. Historic financial information may indicate erratic performance, but current trends are positive. Quality of financial information is adequate, but is not as detailed and sophisticated as information found on higher graded loans. If adverse circumstances arise, they may significantly impact the borrower. We classify many small business loans in this category unless deterioration occurs or we believe the loan requires additional monitoring, such as construction loans, asset based (accounts receivable/inventory) loans, and Small Business Administration (SBA) loans. | ||||||||||||||||||||||||
· Risk rating 4 (Pass/Watch) loans exhibit all the characteristics of a loan graded as a “3” with the exception that there is a greater than normal concern that an external factor may impact the viability of the borrower at some later date; or that the Bank is uncertain if the borrower has adequate financial resources to repay because of the lack of financial information available. We will generally grant this risk rating to credits that require additional monitoring such as construction loans, SBA loans and other loans deemed in need of additional monitoring. | ||||||||||||||||||||||||
· Risk rating 5 (Special Mention) is assigned to risks in need of close monitoring. These are defined as classified assets. Loans generally in this category may have either inadequate information, lack sufficient cash flow or some other problem that requires close scrutiny. The current worth and debt service capacity of the borrower or of any pledged collateral are insufficient to ensure repayment of the loan. These risk ratings may also apply to an improving credit previously criticized but some risk factors remain. All loans in this classification or below should have an action plan. | ||||||||||||||||||||||||
· Risk rating 6 (Substandard) is assigned to loans where there is insufficient debt service capacity. These obligations, even if apparently protected by collateral value, have well defined weaknesses related to adverse financial, managerial, economic, market, or political conditions that have clearly jeopardized repayment of principal and interest as originally intended. There is also the possibility that the Bank will sustain some future loss if the weaknesses are not corrected. Clear loss potential, however, does not have to exist in any individual loan we may classify as substandard. | ||||||||||||||||||||||||
· Risk rating 7 (Doubtful) corresponds to the doubtful asset categories defined by regulatory authorities. A loan classified as doubtful has all the weaknesses inherent in one classified substandard with the added characteristic that the weaknesses make collection or liquidation in full improbable. The possibility of loss is extremely high, but because of certain important and reasonable specific pending factors that may work to strengthening of the asset we have deferred its classification as loss until we may determine a more exact status and estimation of the potential loss. | ||||||||||||||||||||||||
· Risk rating 8 (Loss) is assigned to charged off loans. We consider assets classified as loss as uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has no recovery value, but that it is not practical to defer writing off the worthless assets, even though partial recoveries may occur in the future. We charge off assets in this category. | ||||||||||||||||||||||||
The following table outlines the class of loans by risk rating. | ||||||||||||||||||||||||
September 30, 2013 | Account Balance | |||||||||||||||||||||||
Risk Rating | Legacy | Acquired | Total | |||||||||||||||||||||
Pass (1-4) | ||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||
Commercial | $ | 326,450,400 | $ | 93,761,830 | $ | 420,212,229 | ||||||||||||||||||
Construction | 64,025,900 | 23,742,025 | 87,767,926 | |||||||||||||||||||||
Residential | 53,602,708 | 92,719,370 | 146,322,078 | |||||||||||||||||||||
Commercial | 100,020,432 | 10,235,969 | 110,256,401 | |||||||||||||||||||||
Consumer | 10,193,927 | 1,064,878 | 11,258,805 | |||||||||||||||||||||
Special Mention (5) | 15,599,835 | 5,377,702 | 20,977,537 | |||||||||||||||||||||
Substandard (6) | 5,377,142 | 7,147,505 | 12,524,648 | |||||||||||||||||||||
Doubtful (7) | — | 21,531 | 21,531 | |||||||||||||||||||||
Loss (8) | — | — | — | |||||||||||||||||||||
Total | $ | 575,270,344 | $ | 234,070,810 | $ | 809,341,154 | ||||||||||||||||||
December 31, 2012 | Account Balance | |||||||||||||||||||||||
Risk Rating | Legacy | Acquired | Total | |||||||||||||||||||||
Pass (1-4) | ||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||
Commercial | $ | 269,370,808 | $ | 60,971,510 | $ | 330,342,318 | ||||||||||||||||||
Construction | 44,512,690 | 3,683,127 | 48,195,817 | |||||||||||||||||||||
Residential | 35,877,467 | 45,417,057 | 81,294,523 | |||||||||||||||||||||
Commercial | 85,862,581 | 10,070,234 | 95,932,815 | |||||||||||||||||||||
Consumer | 9,944,467 | 1,059,992 | 11,004,459 | |||||||||||||||||||||
Special Mention (5) | 14,182,357 | 3,716,126 | 17,898,483 | |||||||||||||||||||||
Substandard (6) | 5,494,540 | 7,853,337 | 13,347,877 | |||||||||||||||||||||
Doubtful (7) | — | — | — | |||||||||||||||||||||
Loss (8) | — | — | — | |||||||||||||||||||||
Total | $ | 465,244,910 | $ | 132,771,382 | $ | 598,016,292 | ||||||||||||||||||
The following table details activity in the allowance for loan losses by portfolio segment for the three and nine month periods ended September 30, 2013 and 2012. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. | ||||||||||||||||||||||||
Three Months Ended September 30, 2013 | Real | Commercial | Boats | Other | Total | |||||||||||||||||||
Estate | Consumer | |||||||||||||||||||||||
Beginning balance | $ | 2,973,156 | $ | 884,697 | $ | 248,538 | $ | 130,889 | $ | 4,237,280 | ||||||||||||||
Provision for loan losses | 764,046 | (28,939 | ) | (8,330 | ) | 13,223 | 740,000 | |||||||||||||||||
Provision for loan losses for loans acquired with deteriorated credit quality | (150,000 | ) | — | — | — | (150,000 | ) | |||||||||||||||||
Recoveries | 24,124 | 3,129 | — | 24,336 | 51,589 | |||||||||||||||||||
3,611,326 | 858,887 | 240,208 | 168,448 | 4,878,869 | ||||||||||||||||||||
Loans charged off | (439,073 | ) | — | — | (14,151 | ) | (453,224 | ) | ||||||||||||||||
Ending Balance | $ | 3,172,253 | $ | 858,887 | $ | 240,208 | $ | 154,297 | $ | 4,425,645 | ||||||||||||||
Nine Months Ending September 30, 2013 | Real | Commercial | Boats | Other | Total | |||||||||||||||||||
Estate | Consumer | |||||||||||||||||||||||
Beginning balance | $ | 2,826,584 | $ | 755,954 | $ | 248,928 | $ | 133,881 | $ | 3,965,347 | ||||||||||||||
Provision for loan losses | 996,527 | 190,352 | (8,720 | ) | (13,159 | ) | 1,165,000 | |||||||||||||||||
Provision for loan losses for loans acquired with deteriorated credit quality | (175,000 | ) | — | — | — | (175,000 | ) | |||||||||||||||||
Recoveries | 65,809 | 27,218 | — | 60,778 | 153,805 | |||||||||||||||||||
3,713,920 | 973,524 | 240,208 | 181,500 | 5,109,152 | ||||||||||||||||||||
Loans charged off | (541,667 | ) | (114,637 | ) | — | (27,203 | ) | (683,507 | ) | |||||||||||||||
Ending Balance | $ | 3,172,253 | $ | 858,887 | $ | 240,208 | $ | 154,297 | $ | 4,425,645 | ||||||||||||||
Amount allocated to: | ||||||||||||||||||||||||
Legacy Loans: | ||||||||||||||||||||||||
Individually evaluated for impairment | $ | 25,000 | $ | — | $ | — | $ | — | $ | 25,000 | ||||||||||||||
Collectively evaluated for impairment | 2,905,629 | 858,887 | 240,208 | 154,297 | 4,159,021 | |||||||||||||||||||
Acquired Loans: | ||||||||||||||||||||||||
Individually evaluated for impairment | 241,624 | — | — | — | 241,624 | |||||||||||||||||||
Ending balance | $ | 3,172,253 | $ | 858,887 | $ | 240,208 | $ | 154,297 | $ | 4,425,645 | ||||||||||||||
The following table provides an analysis of the allowance for loan losses with the new methodology for the period ending September 30, 2013: | ||||||||||||||||||||||||
Provision balance transferred as of September 30, 2013 | Beginning | Amount of | Ending balance | |||||||||||||||||||||
balance prior | Transfer | with new | ||||||||||||||||||||||
to new | methodology | |||||||||||||||||||||||
methodology | ||||||||||||||||||||||||
Other consumer | $ | 154,297 | $ | (154,297 | ) | $ | — | |||||||||||||||||
Boat | 240,208 | (240,208 | ) | — | ||||||||||||||||||||
Mortgage | 3,172,253 | (3,172,253 | ) | — | ||||||||||||||||||||
Commercial | 858,887 | (858,887 | ) | — | ||||||||||||||||||||
Commercial & Industrial Loans | — | 437,546 | 437,546 | |||||||||||||||||||||
Commercial Real Estate Loans — Owner Occupied | — | 833,654 | 833,654 | |||||||||||||||||||||
Commercial Real Estate Loans — Non-owner occupied | — | 919,550 | 919,550 | |||||||||||||||||||||
Commercial Real Estate Loans — Hotels/Motels/Inns | — | 278,254 | 278,254 | |||||||||||||||||||||
Residential Land Loans | — | 4,633 | 4,633 | |||||||||||||||||||||
Residential Acquisition & Development Loans | — | 125,475 | 125,475 | |||||||||||||||||||||
Commercial Land Loans | — | 63,731 | 63,731 | |||||||||||||||||||||
Commercial Acquisition & Development Loans | — | 129,979 | 129,979 | |||||||||||||||||||||
Residential First Lien Loans (including construction) — Investor | — | 188,448 | 188,448 | |||||||||||||||||||||
Residential First Lien Loans (including construction) — Owner Occupied | — | 1,327,178 | 1,327,178 | |||||||||||||||||||||
Consumer Installment Loans — Boats | — | 2,119 | 2,119 | |||||||||||||||||||||
Consumer Installment Loans — Other | — | 114,031 | 114,031 | |||||||||||||||||||||
Consumer Revolving & Credit Cards | — | 1,047 | 1,047 | |||||||||||||||||||||
$ | 4,425,645 | $ | — | $ | 4,425,645 | |||||||||||||||||||
Three Months Ended September 30, 2012 | Real | Commercial | Boats | Other | Total | |||||||||||||||||||
Estate | Consumer | |||||||||||||||||||||||
Beginning balance | $ | 2,893,147 | $ | 778,571 | $ | 294,175 | $ | 143,568 | $ | 4,109,461 | ||||||||||||||
Provision for loan losses | (400,494 | ) | (34,431 | ) | (10,375 | ) | 433 | (444,867 | ) | |||||||||||||||
Provision for loan losses for loans acquired with deteriorated credit quality | 599,624 | 220,243 | — | — | 819,867 | |||||||||||||||||||
Recoveries | 50,582 | (11,675 | ) | — | 21,601 | 60,508 | ||||||||||||||||||
3,142,859 | 952,708 | 283,800 | 165,602 | 4,544,969 | ||||||||||||||||||||
Loans charged off | (23,664 | ) | — | — | (27,557 | ) | (51,221 | ) | ||||||||||||||||
Ending Balance | $ | 3,119,195 | $ | 952,708 | $ | 283,800 | $ | 138,045 | $ | 4,493,748 | ||||||||||||||
Nine Months Ending September 30, 2012 | Real | Commercial | Boats | Other | Total | |||||||||||||||||||
Estate | Consumer | |||||||||||||||||||||||
Beginning balance | $ | 2,123,068 | $ | 922,310 | $ | 565,240 | $ | 130,653 | $ | 3,741,271 | ||||||||||||||
Provision for loan losses | 681,096 | (122,412 | ) | (281,440 | ) | 27,889 | 305,133 | |||||||||||||||||
Provision for loan losses for loans acquired with deteriorated credit quality | 599,624 | 220,243 | — | — | 819,867 | |||||||||||||||||||
Recoveries | 63,557 | 20,258 | — | 70,268 | 154,083 | |||||||||||||||||||
3,467,345 | 1,040,399 | 283,800 | 228,810 | 5,020,354 | ||||||||||||||||||||
Loans charged off | (348,150 | ) | (87,691 | ) | — | (90,765 | ) | (526,606 | ) | |||||||||||||||
Ending Balance | $ | 3,119,195 | $ | 952,708 | $ | 283,800 | $ | 138,045 | $ | 4,493,748 | ||||||||||||||
Amount allocated to: | ||||||||||||||||||||||||
Legacy Loans: | ||||||||||||||||||||||||
Individually evaluated for impairment | $ | 309,967 | $ | — | $ | — | $ | — | $ | 309,967 | ||||||||||||||
Collectively evaluated for impairment | 2,209,604 | 732,465 | 283,800 | 138,045 | 3,363,914 | |||||||||||||||||||
Acquired Loans: | ||||||||||||||||||||||||
Individually evaluated for impairment | 599,624 | 220,243 | — | — | 819,867 | |||||||||||||||||||
Ending balance | $ | 3,119,195 | $ | 952,708 | $ | 283,800 | $ | 138,045 | $ | 4,493,748 | ||||||||||||||
We individually evaluate all legacy substandard loans risk rated six, certain legacy special mention loans risk rated five and all legacy TDRs for impairment. We individually evaluate all acquired loans that we risk rated substandard six subsequent to the acquisition, certain acquired special mention loans risk rated five and all acquired TDRs for impairment. We also evaluate the accretable yield established for all acquired, credit-impaired loans for impairment. | ||||||||||||||||||||||||
Our recorded investment in loans at September 30, 2013 and 2012 related to each balance in the allowance for possible loan losses by portfolio segment and disaggregated on the basis of our impairment methodology was as follows: | ||||||||||||||||||||||||
September 30, 2013 | Real | Commercial | Boats | Other | Total | |||||||||||||||||||
Estate | Consumer | |||||||||||||||||||||||
Legacy loans: | ||||||||||||||||||||||||
Individually evaluated for impairment with specific reserve | $ | 499,122 | $ | — | $ | — | $ | — | $ | 499,122 | ||||||||||||||
Individually evaluated for impairment without specific reserve | 3,230,535 | 1,647,484 | — | — | 4,878,019 | |||||||||||||||||||
Collectively evaluated for impairment with reserve | 455,830,423 | 103,868,853 | 6,813,030 | 3,380,897 | 569,893,203 | |||||||||||||||||||
Acquired loans: | ||||||||||||||||||||||||
Individually evaluated for impairment with specific reserve subsequent to acquisition (ASC 310-20 at acquisition) | 241,624 | — | — | — | 241,624 | |||||||||||||||||||
Individually evaluated for impairment without specific reserve (ASC 310-30 at acquisition) | 9,360,431 | 57,557 | — | — | 9,417,988 | |||||||||||||||||||
Collectively evaluated for impairment without reserve (ASC 310-20 at acquisition) | 212,369,480 | 10,976,840 | — | 1,064,878 | 224,411,198 | |||||||||||||||||||
Ending balance | $ | 681,531,615 | $ | 116,550,734 | $ | 6,813,030 | $ | 4,445,775 | $ | 809,341,154 | ||||||||||||||
September 30, 2012 | Real Estate | Commercial | Boats | Other | Total | |||||||||||||||||||
Consumer | ||||||||||||||||||||||||
Legacy loans: | ||||||||||||||||||||||||
Individually evaluated for impairment with specific reserve | $ | 1,315,642 | $ | — | $ | — | $ | — | $ | 1,315,642 | ||||||||||||||
Individually evaluated for impairment without specific reserve | 3,652,420 | 1,901,658 | — | — | 5,554,078 | |||||||||||||||||||
Collectively evaluated for impairment with reserve | 336,384,610 | 83,422,187 | 8,036,872 | 2,992,918 | 430,836,587 | |||||||||||||||||||
Acquired loans: | ||||||||||||||||||||||||
Individually evaluated for impairment with specific reserve subsequent to acquisition (ASC 310-20 at acquisition) | 957,624 | 220,243 | — | — | 1,177,867 | |||||||||||||||||||
Individually evaluated for impairment without specific reserve (ASC 310-30 at acquisition) | 12,954,203 | 1,269,171 | — | — | 14,223,374 | |||||||||||||||||||
Collectively evaluated for impairment without reserve (ASC 310-20 at acquisition) | 113,215,245 | 9,132,884 | — | 1,217,787 | 123,565,916 | |||||||||||||||||||
Ending balance | $ | 468,479,744 | $ | 95,946,143 | $ | 8,036,872 | $ | 4,210,705 | $ | 576,673,464 |
OTHER_REAL_ESTATE_OWNED
OTHER REAL ESTATE OWNED | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
OTHER REAL ESTATE OWNED | ' | ||||||||||
OTHER REAL ESTATE OWNED | ' | ||||||||||
6. OTHER REAL ESTATE OWNED | |||||||||||
At September 30, 2013 and December 31, 2012, the fair value of other real estate owned was $5,909,260 and $3,719,449, respectively. As a result of the acquisitions of Maryland Bankcorp and WSB Holdings, we have segmented the other real estate owned into two components, real estate obtained as a result of loans originated by Old Line Bank (legacy) and other real estate acquired from MB&T and WSB or obtained as a result of loans originated by MB&T and WSB (acquired). | |||||||||||
The following outlines the transactions in other real estate owned during the period. | |||||||||||
Nine months ended September 30, 2013 | Legacy | Acquired | Total | ||||||||
Beginning balance | $ | 1,651,229 | $ | 2,068,220 | $ | 3,719,449 | |||||
Acquired from WSB Holdings, Inc. | — | 4,232,482 | 4,232,482 | ||||||||
Transferred in | — | 1,159,308 | 1,159,308 | ||||||||
Write down in value | — | (66,600 | ) | (66,600 | ) | ||||||
Sales/deposits on sales | (725,484 | ) | (2,197,599 | ) | (2,923,083 | ) | |||||
Net realized loss | (200,454 | ) | (11,842 | ) | (212,296 | ) | |||||
Total end of period | $ | 725,291 | $ | 5,183,969 | $ | 5,909,260 |
EARNINGS_PER_COMMON_SHARE
EARNINGS PER COMMON SHARE | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
EARNINGS PER COMMON SHARE | ' | |||||||||
EARNINGS PER COMMON SHARE | ' | |||||||||
7. EARNINGS PER COMMON SHARE | ||||||||||
We determine basic earnings per common share by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding giving retroactive effect to stock dividends. | ||||||||||
We calculate diluted earnings per common share by including the average dilutive common stock equivalents outstanding during the period. Dilutive common equivalent shares consist of stock options, calculated using the treasury stock method. | ||||||||||
Three Months Ended | Nine Months Ended | |||||||||
September 30, | September 30, | |||||||||
2013 | 2012 | 2013 | 2012 | |||||||
Weighted average number of shares | 10,004,138 | 6,829,785 | 8,464,112 | 6,826,390 | ||||||
Dilutive average number of shares | 10,117,380 | 6,909,147 | 8,565,602 | 6,886,147 |
STOCK_BASED_COMPENSATION
STOCK BASED COMPENSATION | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
STOCK BASED COMPENSATION | ' | ||||||||||||||
STOCK BASED COMPENSATION | ' | ||||||||||||||
8. STOCK BASED COMPENSATION | |||||||||||||||
We account for stock options and restricted stock awards under the fair value method of accounting using a Black-Scholes valuation model to measure stock based compensation expense at the date of grant. We recognize compensation expense related to stock based compensation awards in our income statements over the period during which we require an individual to provide service in exchange for such award. For the nine months ended September 30, 2013 and 2012, we recorded stock-based compensation expense of $184,034 and $135,381, respectively. For the three months ending September 30, 2013 and 2012, we recorded stock-based compensation expense of $26,120 and $49,521, respectively. | |||||||||||||||
We only recognize tax benefits for options that ordinarily will result in a tax deduction when the grant is exercised (non-qualified options). For the nine months ended September 30, 2013 and 2012, we recognized $33,838 and $15,097, respectively, of tax benefits associated with the portion of the expense that was related to the issuance of non-qualified options. | |||||||||||||||
We have two equity incentive plans under which we may issue stock options and restricted stock, the 2010 Equity Incentive Plan, approved at the 2010 Annual Meeting of stockholders and the 2004 Equity Incentive Plan. Our Compensation Committee administers the equity incentive plans. As the plans outline, the Compensation Committee approves stock option and restricted stock grants to directors and employees, determines the number of shares, the type of award, the option or share price, the term (not to exceed 10 years from the date of issuance), the restrictions, and the vesting period of options and restricted stock issued. The Compensation Committee has approved and we have granted options vesting immediately as well as over periods of two, three and five years and restricted stock awards that vest over periods of twelve months to three years. We recognize the compensation expense associated with these grants over their respective vesting periods. At September 30, 2013, there was $258,857 of total unrecognized compensation cost related to non-vested stock options and restricted stock awards that we expect to realize over the next 1.2 years. As of September 30, 2013, there were 103,153 shares remaining available for future issuance under the equity incentive plans. Directors and officers exercised 63,148 options during the nine month period ended September 30, 2013, as compared to 2,900 options exercised during the nine month period ended September 30, 2012. | |||||||||||||||
A summary of the stock option activity during the nine month periods follows: | |||||||||||||||
September 30, | |||||||||||||||
2013 | 2012 | ||||||||||||||
Weighted | Weighted | ||||||||||||||
Number | average | Number | average | ||||||||||||
of shares | exercise price | of shares | exercise price | ||||||||||||
Outstanding, beginning of period | 398,958 | $ | 8.71 | 325,331 | $ | 8.65 | |||||||||
Options granted | 52,712 | 12.04 | 94,627 | 8.47 | |||||||||||
Options exercised | (63,148 | ) | 8.68 | (2,900 | ) | 6.4 | |||||||||
Options forfeited | (14,539 | ) | 9.7 | (2,000 | ) | 8 | |||||||||
Outstanding, end of period | 373,983 | $ | 9.14 | 415,058 | $ | 8.62 | |||||||||
Information related to options at September 30, 2013 follows: | |||||||||||||||
Outstanding options | Exercisable options | ||||||||||||||
Number of | Weighted | Weighted | Number of | Weighted | |||||||||||
shares at | average | average | shares at | average | |||||||||||
Exercise | September | remaining | exercise | September | exercise | ||||||||||
price | 30, 2013 | term | price | 30, 2013 | price | ||||||||||
$6.30-$7.50 | 67,764 | 5.57 | $ | 6.51 | 67,764 | $ | 6.51 | ||||||||
$7.51-$8.75 | 108,472 | 7.19 | 7.91 | 73,134 | 7.86 | ||||||||||
$8.76-$9.95 | 33,660 | 0.9 | 9.74 | 33,660 | 9.74 | ||||||||||
$9.96-$12.04 | 164,087 | 5.02 | 10.93 | 118,100 | 10.62 | ||||||||||
373,983 | 5.38 | $ | 9.14 | 292,658 | $ | 8.88 | |||||||||
Intrinsic value of outstanding options where the market value exceeds the exercise price. | $ | 1,600,294 | |||||||||||||
Intrinsic value of exercisable options where the market value exceeds the exercise price | $ | 1,328,950 | |||||||||||||
During the nine months ended September 30, 2013 and 2012, we granted 8,382 and 10,947 restricted common stock awards, respectively. During the period ended September 30, 2013, 2,031 restricted shares were forfeited and there were 520 restricted shares forfeited for the nine month period ending September 30, 2012. The following table provides a summary of the restricted stock awards during the nine month period and their vesting schedule. | |||||||||||||||
September 30, | September 30, | ||||||||||||||
2013 | 2012 | ||||||||||||||
Weighted | Weighted | ||||||||||||||
average | average | ||||||||||||||
Number | grant date | Number | grant date | ||||||||||||
of shares | fair value | of shares | fair value | ||||||||||||
Nonvested, beginning of period | 16,210 | $ | 7.7 | 15,691 | $ | 7.41 | |||||||||
Restricted stock granted | 8,382 | 12.04 | 10,947 | 8 | |||||||||||
Restricted stock vested | (9,225 | ) | 7.52 | (6,788 | ) | 7.34 | |||||||||
Restricted stock forfeited | (2,031 | ) | 9.44 | (520 | ) | 8 | |||||||||
Nonvested, end of period | 13,336 | $ | 10.29 | 19,330 | $ | 7.75 | |||||||||
Total fair value of shares vested | $ | 69,347 | $ | 49,853 | |||||||||||
Intrinsic value of outstanding restricted stock awards where the market value exceeds the exercise price | $ | 252,457 | $ | 212,823 | |||||||||||
Intrinsic value of vested restricted stock awards where the market value exceeds the exercise price | $ | 73,488 | $ | 74,736 | |||||||||||
The following table outlines the vesting schedule of the unvested restricted stock awards. | |||||||||||||||
Vesting Schedule | |||||||||||||||
of | |||||||||||||||
Unvested Restricted Stock | |||||||||||||||
Awards | |||||||||||||||
September 30, 2013 | |||||||||||||||
Vesting | # of Restricted | ||||||||||||||
Date | Shares | ||||||||||||||
12/31/13 | 3,900 | ||||||||||||||
1/27/14 | 3,725 | ||||||||||||||
1/26/15 | 1,969 | ||||||||||||||
2/27/16 | 3,742 | ||||||||||||||
Total Issued | 13,336 |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||||||||||||||||||||
9. FAIR VALUE MEASUREMENTS | ||||||||||||||||||||||||||||||||
On January 1, 2008, we adopted FASB ASC Topic 820 Fair Value Measurements and Disclosures, which defines fair value as the price that participants would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability, or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact. | ||||||||||||||||||||||||||||||||
We value investment securities classified as available for sale at fair value. | ||||||||||||||||||||||||||||||||
The fair value hierarchy established in FASB ASC Topic 820 defines three input levels for fair value measurement. Level 1 is based on quoted market prices in active markets for identical assets. Level 2 is based on significant observable inputs other than those in Level 1. Level 3 is based on significant unobservable inputs. | ||||||||||||||||||||||||||||||||
We value investment securities classified as available for sale and Sallie Mae (SLMA) equity securities (included in equity securities) at fair value on a recurring basis. We value treasury securities and SLMA equity securities under Level 1, and collateralized mortgage obligations, agency securities, government sponsored entity securities, and some agency securities under Level 2. At September 30, 2013 and December 31, 2012, we established values for available for sale investment securities as follows (000’s): | ||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||||||||||||||||||||||||||||||||
At September 30, 2013 (In thousands) | ||||||||||||||||||||||||||||||||
Quoted Prices in | Other | Significant | Total Changes | |||||||||||||||||||||||||||||
Active Markets for | Observable | Unobservable | in Fair Values | |||||||||||||||||||||||||||||
Carrying Value | Identical Assets | Inputs | Inputs | Included in | ||||||||||||||||||||||||||||
September 30, 2013 | (Level 1) | (Level 2) | (Level 3) | Period Earnings | ||||||||||||||||||||||||||||
Available-for-sale, Treasury securities and Sallie Mae | $ | 1,511 | $ | 1,511 | $ | — | $ | — | $ | — | ||||||||||||||||||||||
Available-for-sale, U.S. government agency | 45,792 | — | 45,792 | — | — | |||||||||||||||||||||||||||
Available-for-sale, Municipal securities | 60,053 | — | 60,053 | — | — | |||||||||||||||||||||||||||
Available-for-sale, FHLMC MBS | 5,513 | — | 5,513 | — | — | |||||||||||||||||||||||||||
Available-for-sale, FNMA MBS | 19,498 | — | 19,498 | — | — | |||||||||||||||||||||||||||
Available-for-sale, GNMA MBS | 42,070 | — | 42,070 | — | — | |||||||||||||||||||||||||||
SBA loan pools | 7,352 | 7,352 | ||||||||||||||||||||||||||||||
$ | 181,789 | $ | 1,511 | $ | 180,278 | $ | — | $ | — | |||||||||||||||||||||||
At December 31, 2012 (In thousands) | ||||||||||||||||||||||||||||||||
Quoted Prices in | Other | Significant | Total Changes | |||||||||||||||||||||||||||||
Active Markets for | Observable | Unobservable | in Fair Values | |||||||||||||||||||||||||||||
Carrying Value | Identical Assets | Inputs | Inputs | Included in | ||||||||||||||||||||||||||||
December 31, 2012 | (Level 1) | (Level 2) | (Level 3) | Period Earnings | ||||||||||||||||||||||||||||
Available-for-sale, Treasury securities and Sallie Mae | $ | 1,609 | $ | 1,609 | $ | — | $ | — | $ | — | ||||||||||||||||||||||
Available-for-sale, U.S. government agency | 28,570 | — | 28,570 | — | — | |||||||||||||||||||||||||||
Available-for-sale, Municipal securities | 63,854 | — | 63,854 | — | — | |||||||||||||||||||||||||||
Available-for-sale, FHLMC MBS | 6,690 | — | 6,690 | — | — | |||||||||||||||||||||||||||
Available-for-sale, FNMA MBS | 18,460 | — | 18,460 | — | — | |||||||||||||||||||||||||||
Available-for-sale, GNMA MBS | 51,612 | — | 51,612 | — | — | |||||||||||||||||||||||||||
SBA loan pools | 1,104 | 1,104 | ||||||||||||||||||||||||||||||
$ | 171,899 | $ | 1,609 | $ | 170,290 | $ | — | $ | — | |||||||||||||||||||||||
Our valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes our methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value. Furthermore, we have not comprehensively revalued the fair value amounts since the presentation dates, and therefore, estimates of fair value after the balance sheet date may differ significantly from the above presented amounts. | ||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | ||||||||||||||||||||||||||||||||
We may be required from time to time, to measure certain assets at fair value on a non-recurring basis in accordance with U.S. generally accepted accounting principles. These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period. Assets measured at fair value on a nonrecurring basis at September 30, 2013 are included in the table below. | ||||||||||||||||||||||||||||||||
We also measure certain non-financial assets such as other real estate owned, TDRs, and repossessed or foreclosed property at fair value on a non-recurring basis. Generally, we estimate the fair value of these items using Level 2 inputs based on observable market data or Level 3 inputs based on discounting criteria. | ||||||||||||||||||||||||||||||||
At September 30, 2013 (In thousands) | ||||||||||||||||||||||||||||||||
Quoted Prices in | Other | Significant | ||||||||||||||||||||||||||||||
Active Markets for | Observable | Unobservable | ||||||||||||||||||||||||||||||
Carrying Value | Identical Assets | Inputs | Inputs | |||||||||||||||||||||||||||||
September 30, 2013 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||||
Impaired Loans | ||||||||||||||||||||||||||||||||
Legacy: | $ | 2,344 | $ | 2,344 | ||||||||||||||||||||||||||||
Acquired: | 739 | 739 | ||||||||||||||||||||||||||||||
Total Impaired Loans | 3,083 | — | — | 3,083 | ||||||||||||||||||||||||||||
Other real estate owned: | ||||||||||||||||||||||||||||||||
Legacy: | $ | 725 | $ | 725 | ||||||||||||||||||||||||||||
Acquired: | 5,184 | 5,184 | ||||||||||||||||||||||||||||||
Total other real estate owned: | 5,909 | — | — | 5,909 | ||||||||||||||||||||||||||||
Total | $ | 8,992 | $ | — | $ | — | $ | 8,992 | ||||||||||||||||||||||||
At December 31, 2012 (In thousands) | ||||||||||||||||||||||||||||||||
Quoted Prices in | Other | Significant | ||||||||||||||||||||||||||||||
Active Markets for | Observable | Unobservable | ||||||||||||||||||||||||||||||
Carrying Value | Identical Assets | Inputs | Inputs | |||||||||||||||||||||||||||||
December 31, 2012 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||||
Impaired Loans | ||||||||||||||||||||||||||||||||
Legacy | $ | 2,316 | $ | — | $ | — | $ | 2,316 | ||||||||||||||||||||||||
Acquired | 4,787 | — | — | 4,787 | ||||||||||||||||||||||||||||
Total Impaired Loans | $ | 7,103 | $ | — | $ | — | $ | 7,103 | ||||||||||||||||||||||||
. | ||||||||||||||||||||||||||||||||
Other real estate owned: | ||||||||||||||||||||||||||||||||
Legacy | $ | 1,651 | $ | — | $ | — | $ | 1,651 | ||||||||||||||||||||||||
Acquired | 2,068 | — | — | 2,068 | ||||||||||||||||||||||||||||
Total other real estate owned: | 3,719 | — | — | 3,719 | ||||||||||||||||||||||||||||
Total | $ | 10,822 | $ | — | $ | — | $ | 10,822 | ||||||||||||||||||||||||
As of September 30, 2013 and December 31, 2012, we estimated the fair value of impaired assets using Level 3 inputs to be $9.0 million and $10.8 million, respectively. We determined these Level 3 inputs based on appraisal evaluations, offers to purchase and/or appraisals that we obtained from an outside third party during the preceding twelve months less costs to sell. Discounts have predominantly been in the range of 0% to 10%. As a result of the acquisition of Maryland Bankcorp and WSB Holdings, we have segmented the other real estate owned into two components, real estate obtained as a result of loans originated by Old Line Bank (legacy) and other real estate acquired from MB&T and WSB or obtained as a result of loans originated by MB&T and WSB (acquired). The increase in level 3 is due non-accrual loans, TDRs, and other real estate in the recent acquisition of WSB. | ||||||||||||||||||||||||||||||||
We use the following methodologies for estimating fair values of financial instruments that we do not measure on a recurring basis. The estimated fair values of financial instruments equal the carrying value of the instruments except as noted. | ||||||||||||||||||||||||||||||||
Cash and Cash Equivalents - For cash and cash equivalents, the carrying amount is a reasonable estimate of fair value. | ||||||||||||||||||||||||||||||||
Loans-We estimate the fair value of loans by discounting future cash flows using current rates for which we would make similar loans to borrowers with similar credit histories. We then adjust this calculated amount for any credit impairment. | ||||||||||||||||||||||||||||||||
Loans held for Sale- Loans held for sale are carried at the lower of cost or market value. The fair values of loans held for sale are based on commitments on hand from investors within the secondary market for loans with similar characteristics. | ||||||||||||||||||||||||||||||||
Investment Securities- We base the fair values of investment securities upon quoted market prices or dealer quotes. | ||||||||||||||||||||||||||||||||
Equity Securities- Equity securities are carried at cost which approximates fair value. | ||||||||||||||||||||||||||||||||
Bank Owned Life Insurance - The carrying amount of Bank Owned Life Insurance (“BOLI”) purchased on a group of officers is a reasonable estimate of fair value. BOLI is an insurance product that provides an effective way to offset current employee benefit costs. | ||||||||||||||||||||||||||||||||
Accrued Interest Receivable and Payable- The carrying amount of accrued interest and dividends receivable on loans and investments and payable on borrowings and deposits approximate their fair values. | ||||||||||||||||||||||||||||||||
Interest bearing deposits-The fair value of demand deposits and savings accounts is the amount payable on demand. We estimate the fair value of fixed maturity certificates of deposit using the rates currently offered for deposits of similar remaining maturities. | ||||||||||||||||||||||||||||||||
Non-Interest bearing deposits- The fair value of non-interest bearing accounts is the amount payable on demand at the reporting date. | ||||||||||||||||||||||||||||||||
Long and short term borrowings- The fair value of long and short term fixed rate borrowings is estimated by discounting the value of contractual cash flows using rates currently offered for advances with similar terms and remaining maturities. | ||||||||||||||||||||||||||||||||
Loan Commitments, Standby and Commercial Letters of Credit-Lending commitments have variable interest rates and “escape” clauses if the customer’s credit quality deteriorates. Therefore, the fair value of these items is insignificant and we have not included these in the following table. | ||||||||||||||||||||||||||||||||
Under ASC Topic 825, entities may choose to measure eligible financial instruments at fair value at specified election dates. The fair value measurement option (i) may be applied instrument by instrument, with certain exceptions, (ii) is generally irrevocable and (iii) is applied only to entire instruments and not to portions of instruments. We must report in earnings unrealized gains and losses on items for which we have elected the fair value measurement option at each subsequent reporting date. We measure certain financial assets and financial liabilities at fair value on a non-recurring basis. These assets and liabilities are subject to fair value adjustments in certain circumstances such as when there is evidence of impairment. | ||||||||||||||||||||||||||||||||
September 30, 2013 (In thousands) | December 31, 2012 (In thousands) | |||||||||||||||||||||||||||||||
Quoted Prices | Significant | Significant | Quoted Prices | Significant | Significant | |||||||||||||||||||||||||||
Total | in Active | Other | Other | Total | in Active | Other | Other | |||||||||||||||||||||||||
Carrying | Estimated | Markets for | Observable | Unobservable | Carrying | Estimated | Markets for | Observable | Unobservable | |||||||||||||||||||||||
Amount | Fair | Identical Assets | Inputs | Inputs | Amount | Fair | Identical Assets | Inputs | Inputs | |||||||||||||||||||||||
(000’s) | Value | (Level 1) | (Level 2) | (Level 3) | (000’s) | Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 50,993 | $ | 50,993 | $ | 50,993 | $ | — | $ | — | $ | 28,691 | $ | 28,691 | $ | 28,691 | $ | — | $ | — | ||||||||||||
Loans receivable, net | 810,316 | 823,782 | — | — | 823,782 | 595,145 | 599,320 | — | — | 599,320 | ||||||||||||||||||||||
Loans held for sale | 22,585 | 22,585 | — | 22,612 | — | — | — | — | — | |||||||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||||||||
Available for sale | 181,528 | 181,528 | — | 181,528 | — | 171,541 | 171,541 | — | 171,541 | — | ||||||||||||||||||||||
Equity Securities at cost | 5,851 | 5,851 | — | 5,851 | — | 3,615 | 3,615 | — | 3,615 | — | ||||||||||||||||||||||
Bank Owned Life Insurance | 30,357 | 30,357 | — | 30,357 | — | 16,869 | 16,869 | — | 16,869 | — | ||||||||||||||||||||||
Accrued interest receivable | 3,296 | 3,296 | — | — | 3,296 | 2,639 | 2,639 | — | 1,031 | 1,608 | ||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||||||
Non-interest-bearing | 223,503 | 223,503 | — | 223,503 | — | 188,896 | 188,896 | — | 188,896 | — | ||||||||||||||||||||||
Interest bearing | 781,969 | 763,967 | — | 763,967 | — | 546,563 | 554,778 | — | 554,778 | — | ||||||||||||||||||||||
Short term borrowings | 56,204 | 56,204 | — | 56,204 | — | 37,905 | 37,905 | — | 37,905 | — | ||||||||||||||||||||||
Long term borrowings | 6,396 | 6,119 | — | 6,119 | — | 6,192 | 6,488 | — | 6,488 | — | ||||||||||||||||||||||
Accrued Interest payable | 259 | 250 | — | 250 | — | 547 | 547 | — | 547 | — | ||||||||||||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
Basis of Presentation and Consolidation | ' |
Basis of Presentation and Consolidation-The accompanying condensed consolidated financial statements include the activity of Old Line Bancshares and its wholly owned subsidiary, Old Line Bank, and its majority owned subsidiary Pointer Ridge Office Investments, LLC (Pointer Ridge), a real estate investment company. We have eliminated all significant intercompany transactions and balances. | |
We report the non-controlling interests in Pointer Ridge separately in the consolidated balance sheet. We report the income of Pointer Ridge attributable to Old Line Bancshares on the consolidated statement of income. | |
The foregoing consolidated financial statements for the periods ended September 30, 2013 and 2012 are unaudited; however, in the opinion of management we have included all adjustments (comprising only normal recurring accruals) necessary for a fair presentation of the results of the interim period. We derived the balances as of December 31, 2012 from audited financial statements. These statements should be read in conjunction with Old Line Bancshares’ financial statements and accompanying notes included in Old Line Bancshares’ Form 10-K for the year ended December 31, 2012. Old Line Bancshares adopted one new critical accounting policy during the second quarter of this year as follows: | |
Business Combinations and Acquired Loan Accounting | ' |
Business Combinations and Acquired Loan Accounting. Accounting principles generally accepted in the United States (US GAAP) requires that the acquisition method of accounting, formerly referred to as purchase method, be used for all business combinations and that an acquirer be identified for each business combination. Under US GAAP, the acquirer is the entity that obtains control of one or more businesses in the business combination, and the acquisition date is the date the acquirer achieves control. US GAAP requires that the acquirer recognize the fair value of assets acquired, liabilities assumed, and any noncontrolling interest in the acquiree at the acquisition date. | |
Acquired loans are recorded at fair value at the date of acquisition, and accordingly no allowance for loan losses is transferred to the acquiring entity in connection with purchase accounting. The fair values of loans with evidence of credit deterioration (purchased, credit-impaired loans) are initially recorded at fair value, but thereafter accounted for differently than purchased, non-credit-impaired loans. For purchased, credit-impaired loans, the excess of all cash flows estimated to be collectable at the date of acquisition over the purchase price of the purchase credit-impaired loan is recognized as interest income, using a level-yield basis over the life of the loan. This amount is referred to as the accretable yield. The purchased credit-impaired loan’s contractually-required payments receivable estimated to be in excess of the amount of its future cash flows expected at the date of acquisition is referred to as the non-accretable difference, and is not reflected as an adjustment to the yield, in the form of a loss accrual or a valuation allowance. | |
Subsequent to the acquisition date, management continues to monitor cash flows on a quarterly basis, to determine the performance of each purchased, credit-impaired loan in comparison to management’s initial performance expectations. Subsequent decreases to the expected cash flows will generally result in a provision for loan losses. Subsequent significant increases in cash flows result in a reversal of the provision for loan losses to the extent of prior provisions, or a reclassification of amount from non-accretable difference to accretable yield, with a positive impact on the accretion of interest income in future periods. | |
Acquired performing loans are accounted for using the contractual cash flows method of recognizing discount accretion based on the acquired loans’ contractual cash flows. Acquired performing loans are recorded as of the purchase date at fair value. Credit losses on the acquired performing loans are estimated based on analysis of the performing portfolio. A provision for loan losses is recognized for any further credit deterioration that occurs in these loans subsequent to the acquisition date. We had one acquired loan from MB&T of which we recognized further credit deterioration in the quarter ending September 30, 2013, and recorded a $290,000 specific reserve. | |
Allowance for Loan Losses | ' |
Allowance for Loan Losses - During the third quarter of 2013, management revised the methodology for the loss-rate analysis for the performing loan portfolios due to the increase in total loans and the complexity of the loan portfolio. The primary changes in the methodology were to segment loans with similar risk characteristics and change the look back period to 12 quarters. Previously we used various loss measurement periods for the different segments. Some were three year and some had history disregarded because there was so little in losses. | |
These changes were effective September 30, 2013 and resulted in no additional provision for the quarter ending September 30, 2013. Management made the following changes to the methodology during the third quarter of 2013: | |
· The portfolio is analyzed in the following segments for the ASC 450 analysis pool and is sorted by the following loan types: | |
Commercial & Industrial Loans | |
Commercial Real Estate Loans — Owner Occupied | |
Commercial Real Estate Loans — Non-owner occupied | |
Commercial Real Estate Loans — Hotels/Motels/Inns | |
Residential Land Loans | |
Residential Acquisition & Development Loans | |
Commercial Land Loans | |
Commercial Acquisition & Development Loans | |
Residential First Lien Loans (including construction) — Investor | |
Residential First Lien Loans (including construction) — Owner Occupied | |
HELOC & Closed End Junior Lien Loans | |
Consumer Installment Loans — Boats | |
Consumer Installment Loans — Other | |
Consumer Revolving & Credit Cards | |
· Within each of the above loan types, each portfolio is sorted by the risk assessment rating of each loan as Pass, Pass-Watch, Special Mention or Substandard. | |
· The Bank’s loss experience for each of the last 12 quarters is aggregated and that total is used to create a percentage of the loan portfolio as it existed at the beginning of the 12 quarter “look back.” | |
· The Bank’s loss experience (Loss Factor) is progressively tiered by risk category for Pass, Pass-Watch, Special Mention and Substandard loans by applying a higher loss factor to higher risk rated categories. Loans rated “Doubtful” or “Loss” are, by definition, impaired and will be specifically reserved based upon Bank management’s best estimate of the loss exposure for each loan. | |
Loans Held-for-Sale | ' |
Loans Held-for-Sale-The loans classified in the held-for-sale portfolio consists of loans that have been committed to be purchased by investors in the secondary market at September 30, 2013 and will be settled subsequent to that date. Only loans purchased by investors with recourse obligations are included in the allowance calculation. | |
The loans classified in the held-for-sale portfolio also include a pool of acquired impaired loans that we are currently working to market with brokers. These loans are not included in the allowance calculation due to the fair value accounting of the purchased loans. | |
The accounting and reporting policies of Old Line Bancshares conform with US GAAP. | |
Reclassifications | ' |
Reclassifications-We have made certain reclassifications to the 2012 financial presentation to conform to the 2013 presentation. These reclassifications did not change net income or stockholders’ equity. |
POINTER_RIDGE_OFFICE_INVESTMEN1
POINTER RIDGE OFFICE INVESTMENT, LLC (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
POINTER RIDGE OFFICE INVESTMENT, LLC | ' | |||||||||||||
Summary of condensed Balance Sheets and Statements of Income information | ' | |||||||||||||
September 30, | December 31, | |||||||||||||
Balance Sheets | 2013 | 2012 | ||||||||||||
Current assets | $ | 278,672 | $ | 313,165 | ||||||||||
Non-current assets | 6,820,995 | 6,938,990 | ||||||||||||
Liabilities | 6,134,827 | 6,208,029 | ||||||||||||
Equity | 964,840 | 1,044,126 | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Statements of Income | ||||||||||||||
Revenue | $ | 230,223 | $ | 213,415 | $ | 676,613 | $ | 624,669 | ||||||
Expenses | 243,936 | 268,519 | 755,899 | 778,478 | ||||||||||
Net loss | $ | (13,713 | ) | $ | (55,104 | ) | $ | (79,286 | ) | $ | (153,809 | ) |
ACQUISITION_OF_WSB_HOLDINGS_IN1
ACQUISITION OF WSB HOLDINGS, INC. (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
ACQUISITION OF WSB HOLDINGS, INC. | ' | ||||||||||
Schedule of purchased assets, assumed liabilities and identifiable intangible assets recorded at acquisition date fair value | ' | ||||||||||
As Recorded by | |||||||||||
As Recorded by | Fair Value | Old Line | |||||||||
WSB Holdings, Inc | Adjustments | Bancshares, Inc. | |||||||||
Assets | |||||||||||
Cash and due from banks | $ | 5,576,699 | $ | — | $ | 5,576,699 | |||||
Federal funds sold | 33,269,900 | (16,966,208 | ) | 16,303,692 | |||||||
Total cash and cash equivalents | 38,846,599 | (16,966,208 | ) | 21,880,391 | |||||||
Investment securities available for sale | 79,476,355 | (101,654 | )(a) | 79,374,701 | |||||||
Loans, net of deferred fees and costs | 177,204,282 | (14,263,180 | )(b) | 162,941,102 | |||||||
Allowance for loan losses | (2,767,274 | ) | 2,767,274 | (b) | — | ||||||
Premises and equipment | 4,705,902 | 5,673,151 | (c) | 10,379,053 | |||||||
Accrued interest receivable | 886,413 | — | 886,413 | ||||||||
Deferred income taxes | 7,396,519 | 4,005,790 | (d) | 11,402,309 | |||||||
Bank owned life insurance | 12,986,817 | — | 12,986,817 | ||||||||
Other real estate owned | 5,225,958 | (993,476 | )(e) | 4,232,482 | |||||||
Core deposit intangible | — | 2,434,723 | (f) | 2,434,723 | |||||||
Other assets | 4,326,538 | (567,850 | )(g) | 3,758,688 | |||||||
Total assets | $ | 328,288,109 | $ | (18,011,430 | ) | $ | 310,276,679 | ||||
Liabilities and Stockholders’ Equity | |||||||||||
Deposits | |||||||||||
Non-interest bearing | $ | 10,863,874 | $ | — | $ | 10,863,874 | |||||
Interest bearing | 204,375,389 | 955,452 | (h) | 205,330,841 | |||||||
Total deposits | 215,239,263 | 955,452 | 216,194,715 | ||||||||
Long term borrowings | 56,000,000 | 4,250,568 | (i) | 60,250,568 | |||||||
Accrued interest payable | 246,416 | — | 246,416 | ||||||||
Other liabilities | 2,979,727 | — | 2,979,727 | ||||||||
Total liabilities | $ | 274,465,406 | $ | 5,206,020 | $ | 279,671,426 | |||||
Net identifiable assets acquired over (under) liabilities assumed | 53,822,703 | (23,217,450 | ) | 30,605,253 | |||||||
Goodwill | — | 7,159,875 | 7,159,875 | ||||||||
Net assets acquired over liabilities assumed | 53,822,703 | (16,057,575 | ) | 37,765,128 | |||||||
Purchase Price Consideration-Common Stock | |||||||||||
WSB Holdings shares outstanding exchanged for stock | 5,223,633 | ||||||||||
Exchange ratio | 0.557 | ||||||||||
Old Line Bancshares shares issued to WSB Holdings | 2,909,486 | ||||||||||
Purchase price per WSB Holdings common share | $ | 6.0743 | |||||||||
Cash consideration | $ | 16,966,208 | |||||||||
Purchase price assigned to shares exchanged for stock | $ | 37,765,128 | |||||||||
Explanation of fair value adjustments | |||||||||||
(a) Adjustment reflects marking the available for sale portfolio to fair value as of the acquisition date. | |||||||||||
(b) Adjustment reflects the fair value adjustments based on Old Line Bancshares’ evaluation of the acquired loan portfolio and excludes the allowance for losses recorded by WSB Holdings. | |||||||||||
(c) Adjustment reflects the fair value adjustments based on Old Line Bancshares’ evaluation of the acquired premises and equipment. | |||||||||||
(d) Adjustment to record deferred tax asset related to fair value adjustments at 39.45% income tax rate. | |||||||||||
(e) Adjustment reflects the fair value adjustments to other real estate owned based on Old Line Bancshares’ evaluation of the acquired other real estate owned portfolio. | |||||||||||
(f) Adjustment reflects the recording of the core deposits intangible on the acquired deposit accounts. | |||||||||||
(g) Adjustment reflects the impairment of certain WSB Holdings’ prepaid and deferred accounts. | |||||||||||
(h) Adjustment arises since the rates on interest-bearing deposits are higher than rates available on similar deposits as of the acquisition date. | |||||||||||
(i) Adjustment reflects the fair value of WSB Holdings’ borrowings acquired on acquisition date and is related to the Federal Home Loan Bank of Atlanta (“FHLB”) pre-payment penalty incurred subsequent to the acquisition date in the connection with the repayment of all of WSB’s FHLB advances by Old Line Bancshares. | |||||||||||
Schedule of consolidated statements of income data for the unaudited pro forma results | ' | ||||||||||
Nine Months Ended | |||||||||||
September 30, | |||||||||||
2013 | 2012 | ||||||||||
Net interest income | $ | 31,405 | $ | 33,137 | |||||||
Other non-interest revenue | 5,275 | 5,402 | |||||||||
Total revenue | 36,680 | 38,539 | |||||||||
Provision expense | 990 | 1,125 | |||||||||
Other non-interest expense | 32,825 | 31,477 | |||||||||
Income before income taxes | 2,865 | 5,937 | |||||||||
Income tax expense | 1,102 | 2,283 | |||||||||
Net income | $ | 1,763 | $ | 3,654 | |||||||
Basic earnings per share | 0.21 | 0.48 | |||||||||
Diluted earnings per share | 0.21 | 0.47 |
INVESTMENT_SECURITIES_Tables
INVESTMENT SECURITIES (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
INVESTMENT SECURITIES | ' | |||||||||||||||||||
Summary of the amortized cost and estimated fair value of securities | ' | |||||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||||||
cost | unrealized | unrealized | fair value | |||||||||||||||||
gains | losses | |||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Available for sale | ||||||||||||||||||||
U. S. treasury | $ | 1,249,400 | $ | 513 | $ | — | $ | 1,249,913 | ||||||||||||
U.S. government agency | 47,396,111 | 5,250 | (1,609,748 | ) | 45,791,613 | |||||||||||||||
Municipal securities | 61,815,232 | 794,982 | (2,556,967 | ) | 60,053,247 | |||||||||||||||
Mortgage backed securities: | ||||||||||||||||||||
FHLMC certificates | 5,473,276 | 86,789 | (47,436 | ) | 5,512,629 | |||||||||||||||
FNMA certificates | 19,629,429 | 236,141 | (367,592 | ) | 19,497,978 | |||||||||||||||
GNMA certificates | 42,880,388 | 170,317 | (980,782 | ) | 42,069,923 | |||||||||||||||
SBA loan pools | 7,646,296 | — | (293,967 | ) | 7,352,329 | |||||||||||||||
$ | 186,090,132 | $ | 1,293,992 | $ | (5,856,492 | ) | $ | 181,527,632 | ||||||||||||
December 31, 2012 | ||||||||||||||||||||
Available for sale | ||||||||||||||||||||
U. S. treasury | $ | 1,249,708 | $ | 1,542 | $ | — | $ | 1,251,250 | ||||||||||||
U.S. government agency | 28,493,293 | 105,183 | (27,505 | ) | 28,570,971 | |||||||||||||||
Municipal securities | 61,670,324 | 2,453,427 | (270,102 | ) | 63,853,649 | |||||||||||||||
Mortgage backed securities | ||||||||||||||||||||
FHLMC certificates | 6,448,848 | 245,541 | (4,858 | ) | 6,689,531 | |||||||||||||||
FNMA certificates | 17,600,875 | 858,903 | — | 18,459,778 | ||||||||||||||||
GNMA certificates | 50,914,071 | 700,339 | (2,699 | ) | 51,611,711 | |||||||||||||||
SBA loan pools | 1,098,701 | 5,631 | — | 1,104,332 | ||||||||||||||||
$ | 167,475,820 | $ | 4,370,566 | $ | (305,164 | ) | $ | 171,541,222 | ||||||||||||
Schedule of securities with unrealized losses segregated by length of impairment | ' | |||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Less than 12 months | 12 Months or More | Total | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
value | losses | value | losses | value | losses | |||||||||||||||
Unrealized losses less than 12 months | ||||||||||||||||||||
U.S. government agency | $ | 42,786,362 | $ | 1,609,748 | $ | — | $ | — | $ | 42,786,362 | $ | 1,609,748 | ||||||||
Municipal securities | 33,720,874 | 2,398,106 | 1,712,342 | 158,861 | 35,433,216 | 2,556,967 | ||||||||||||||
Mortgage backed securities | 47,005,953 | 1,395,810 | — | — | 47,005,953 | 1,395,810 | ||||||||||||||
SBA loan pools | 7,352,328 | 293,967 | 7,352,328 | 293,967 | ||||||||||||||||
Total unrealized losses less than 12 months | $ | 130,865,517 | $ | 5,697,631 | $ | 1,712,342 | $ | 158,861 | $ | 132,577,859 | $ | 5,856,492 | ||||||||
December 31,2012 | ||||||||||||||||||||
Less than 12 months | 12 Months or More | Total | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
value | losses | value | losses | value | losses | |||||||||||||||
Unrealized losses less than 12 months | ||||||||||||||||||||
U.S. government agency | $ | 4,498,200 | $ | 27,505 | $ | — | $ | — | $ | 4,498,200 | $ | 27,505 | ||||||||
Municipal securities | 13,470,047 | 270,102 | — | — | 13,470,047 | 270,102 | ||||||||||||||
Mortgage backed securities | 2,797,011 | 7,557 | — | — | 2,797,011 | 7,557 | ||||||||||||||
Total unrealized losses less than 12 months | $ | 20,765,258 | $ | 305,164 | $ | — | $ | — | $ | 20,765,258 | $ | 305,164 | ||||||||
Schedule of contractual maturities and pledged securities | ' | |||||||||||||||||||
Available for Sale | ||||||||||||||||||||
September 30, 2013 | Amortized | Fair | ||||||||||||||||||
cost | value | |||||||||||||||||||
Maturing | ||||||||||||||||||||
Within one year | $ | 1,249,400 | $ | 1,249,913 | ||||||||||||||||
Over one to five years | 11,628,857 | 11,658,412 | ||||||||||||||||||
Over five to ten years | 50,571,838 | 49,206,713 | ||||||||||||||||||
Over ten years | 122,640,037 | 119,412,594 | ||||||||||||||||||
$ | 186,090,132 | $ | 181,527,632 | |||||||||||||||||
Pledged securities | $ | 38,229,610 | $ | 37,937,586 |
LOANS_Tables
LOANS (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
LOANS | ' | |||||||||||||||||||||||
Summary of major classifications of loans held for investment | ' | |||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||
Held-for-investment | Legacy (1) | Acquired | Total | Legacy (1) | Acquired | Total | ||||||||||||||||||
Real estate | ||||||||||||||||||||||||
Commercial | $ | 334,552,174 | $ | 99,524,172 | $ | 434,076,346 | $ | 279,489,013 | $ | 65,396,469 | $ | 344,885,482 | ||||||||||||
Construction | 68,310,288 | 24,773,084 | 93,083,372 | 48,603,640 | 4,174,751 | 52,778,391 | ||||||||||||||||||
Residential | 56,697,617 | 97,674,279 | 154,371,896 | 38,901,489 | 52,069,937 | 90,971,426 | ||||||||||||||||||
Commercial | 105,516,338 | 11,034,397 | 116,550,735 | 88,306,302 | 10,070,234 | 98,376,536 | ||||||||||||||||||
Boats | 6,813,030 | — | 6,813,030 | — | — | |||||||||||||||||||
Other consumer | 3,380,897 | 1,064,878 | 4,445,775 | 9,944,466 | 1,059,991 | 11,004,457 | ||||||||||||||||||
575,270,344 | 234,070,810 | 809,341,154 | 465,244,910 | 132,771,382 | 598,016,292 | |||||||||||||||||||
Allowance for loan losses | (4,184,021 | ) | (241,624 | ) | (4,425,645 | ) | (3,648,723 | ) | (316,624 | ) | (3,965,347 | ) | ||||||||||||
Deferred loan costs, net | 963,167 | 11,911 | 975,078 | 1,093,983 | — | 1,093,983 | ||||||||||||||||||
$ | 572,049,490 | $ | 233,841,097 | $ | 805,890,587 | $ | 462,690,170 | $ | 132,454,758 | $ | 595,144,928 | |||||||||||||
(1) As a result of the acquisitions of Maryland Bankcorp, Inc. (Maryland Bankcorp), the parent company of Maryland Bank & Trust Company, N.A. (MB&T), in April 2011 and of WSB Holdings, we have segmented the portfolio into two components, loans originated by Old Line Bank (legacy) and loans acquired from MB&T and WSB (acquired). | ||||||||||||||||||||||||
Summary of aging analysis of the loan held for investment portfolio | ' | |||||||||||||||||||||||
Age Analysis of Past Due Loans | ||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||
Legacy | Acquired | Total | Legacy | Acquired | Total | |||||||||||||||||||
Current | $ | 565,917,029 | $ | 227,454,582 | $ | 793,371,611 | $ | 459,073,548 | $ | 127,754,017 | $ | 586,827,565 | ||||||||||||
Accruing past due loans: | ||||||||||||||||||||||||
30-59 days past due | ||||||||||||||||||||||||
Real estate | 737,044 | 1,779,236 | 2,516,280 | 218,700 | 447,399 | 666,099 | ||||||||||||||||||
Commercial | — | 34,827 | 34,827 | 436,806 | 36,923 | 473,729 | ||||||||||||||||||
Consumer | — | 386 | 386 | — | 45,322 | 45,322 | ||||||||||||||||||
Total 30-59 days past due | 737,044 | 1,814,449 | 2,551,493 | 655,506 | 529,644 | 1,185,150 | ||||||||||||||||||
60-89 days past due | ||||||||||||||||||||||||
Real estate | 1,121,860 | 1,170,389 | 2,292,249 | 1,141,779 | 62,852 | 1,204,631 | ||||||||||||||||||
Commercial | 452,647 | — | 452,647 | — | — | — | ||||||||||||||||||
Consumer | — | 97 | 97 | 1,453 | 9,882 | 11,335 | ||||||||||||||||||
Total 60-89 days past due | 1,574,507 | 1,170,486 | 2,744,993 | 1,143,232 | 72,734 | 1,215,966 | ||||||||||||||||||
90 or more days past due | ||||||||||||||||||||||||
Real estate | 1,849,685 | 3,401,580 | 5,251,265 | — | — | — | ||||||||||||||||||
Consumer | 101,420 | — | 101,420 | — | 6,410 | 6,410 | ||||||||||||||||||
Total 90 or more days past due | 1,951,105 | 3,401,580 | 5,352,685 | — | 6,410 | 6,410 | ||||||||||||||||||
Total accruing past due loans | 4,262,656 | 6,386,515 | 10,649,171 | 1,798,738 | 608,788 | 2,407,526 | ||||||||||||||||||
Recorded Investment Non-accruing loans: (1) | ||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial | — | — | — | 1,226,011 | 1,401,187 | 2,627,198 | ||||||||||||||||||
Construction | — | — | — | — | 100,000 | 100,000 | ||||||||||||||||||
Residential | 552,877 | — | 552,877 | 591,873 | 2,555,374 | 3,147,247 | ||||||||||||||||||
Commercial | 1,302,147 | — | 1,302,147 | — | 35,392 | 35,392 | ||||||||||||||||||
Consumer | 14,781 | — | 14,781 | — | — | — | ||||||||||||||||||
Total Recorded Investment Non-accruing past due loans: | 1,869,805 | — | 1,869,805 | 1,817,884 | 4,091,953 | 5,909,837 | ||||||||||||||||||
Total Financing Receivables (Loans) | $ | 572,049,490 | $ | 233,841,097 | $ | 805,890,587 | $ | 462,690,170 | $ | 132,454,758 | $ | 595,144,928 | ||||||||||||
(1) Acquired, credit-impaired loans performing in accordance with accretable yield estimates are reported as accruing loans. | ||||||||||||||||||||||||
Summary of impaired loans | ' | |||||||||||||||||||||||
Three months September 30, 2013 | Nine months September 30, 2013 | |||||||||||||||||||||||
Unpaid | Recorded | Related | Average | Interest | Average | Interest Income | ||||||||||||||||||
Principal | Investment | Allowance | Recorded | Income | Recorded | Recognized | ||||||||||||||||||
Balance | Investment | Recognized | Investment | |||||||||||||||||||||
Legacy | ||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||
Commercial | $ | 1,302,147 | $ | 1,302,147 | $ | — | $ | 1,314,245 | $ | — | $ | 1,341,363 | $ | — | ||||||||||
Construction | — | — | — | — | — | — | — | |||||||||||||||||
Residential | 426,989 | 426,989 | — | 427,156 | — | 433,529 | — | |||||||||||||||||
Commercial | 125,888 | 125,888 | — | 126,790 | — | 130,163 | — | |||||||||||||||||
Consumer | 14,781 | 14,781 | — | 9,927 | 64 | 14,914 | 64 | |||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||
Commercial | — | — | — | — | — | — | — | |||||||||||||||||
Construction | — | — | — | — | — | — | — | |||||||||||||||||
Residential | 499,122 | 499,122 | 25,000 | 499,122 | 4,839 | 499,122 | 12,525 | |||||||||||||||||
Commercial | — | — | — | — | — | — | ||||||||||||||||||
Total legacy impaired | 2,368,927 | 2,368,927 | 25,000 | 2,377,240 | 4,903 | 2,419,091 | 12,589 | |||||||||||||||||
Acquired (1) | ||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||
Commercial | — | — | — | — | — | — | — | |||||||||||||||||
Construction | — | — | — | — | — | — | — | |||||||||||||||||
Residential | 696,110 | 655,233 | — | 656,080 | 8,424 | 659,818 | 24,107 | |||||||||||||||||
Commercial | 88,234 | 88,234 | — | 88,513 | 1,511 | 89,421 | 3,406 | |||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||
Commercial | 241,624 | 241,624 | 241,624 | 241,624 | — | 241,624 | — | |||||||||||||||||
Construction | — | — | — | — | — | — | — | |||||||||||||||||
Residential | — | — | — | — | — | — | — | |||||||||||||||||
Commercial | — | — | — | — | — | — | — | |||||||||||||||||
Total acquired impaired | 1,025,968 | 985,091 | 241,624 | 986,217 | 9,935 | 990,863 | 27,513 | |||||||||||||||||
Total impaired | $ | 3,394,895 | $ | 3,354,018 | $ | 266,624 | $ | 3,363,457 | 14,838 | 3,409,954 | 40,102 | |||||||||||||
(1) Generally accepted accounting principles require that we initially record acquired loans at fair value which includes a discount for loans with credit impairment. These loans are not performing according to their contractual terms and meet the definition of an acquired, credit-impaired loan. Although we do not accrue interest income at the contractual rate on these loans, we do recognize an accretable yield as interest income to the extent such yield is supported by cash flow analysis of the underlying loans. Acquired, credit-impaired loans where the cash flows do not perform according to initial accretable yield estimates are considered impaired. | ||||||||||||||||||||||||
Impaired Loans | ||||||||||||||||||||||||
Twelve months ended December 31, 2012 | ||||||||||||||||||||||||
Unpaid | Recorded | Related | Average | Interest | ||||||||||||||||||||
Principal | Investment | Allowance | Recorded | Income | ||||||||||||||||||||
Balance | Investment | Recognized | ||||||||||||||||||||||
Legacy | ||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||
Commercial | $ | 874,735 | $ | 874,735 | $ | — | $ | 686,724 | $ | — | ||||||||||||||
Construction | — | — | — | 727,003 | — | |||||||||||||||||||
Residential | 591,873 | 591,873 | — | 353,680 | 76,309 | |||||||||||||||||||
Commercial | — | — | — | 145,841 | — | |||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||
Commercial | 849,462 | 849,462 | 125,000 | 1,769,664 | 31,559 | |||||||||||||||||||
Construction | — | — | — | — | — | |||||||||||||||||||
Residential | — | — | — | — | — | |||||||||||||||||||
Commercial | — | — | — | 77,976 | — | |||||||||||||||||||
Consumer | — | — | — | 142,671 | — | |||||||||||||||||||
Total legacy impaired | 2,316,070 | 2,316,070 | 125,000 | 3,903,559 | 107,868 | |||||||||||||||||||
Acquired (1) | ||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||
Commercial | 2,180,807 | 1,159,563 | — | 1,664,384 | 39,476 | |||||||||||||||||||
Construction | 2,538,565 | 100,000 | — | 683,201 | 4,186 | |||||||||||||||||||
Residential | 3,371,582 | 1,798,180 | — | 1,567,514 | 34,931 | |||||||||||||||||||
Commercial | 214,697 | 126,140 | — | 172,982 | 13,896 | |||||||||||||||||||
Consumer | — | — | — | 51,540 | — | |||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||
Commercial | 1,628,156 | 241,624 | 241,624 | 657,812 | 6,319 | |||||||||||||||||||
Construction | — | — | — | — | — | |||||||||||||||||||
Residential | — | — | — | — | — | |||||||||||||||||||
Commercial | 1,620,660 | 1,361,520 | 75,000 | 543,133 | 45,963 | |||||||||||||||||||
Total acquired impaired | 11,554,467 | 4,787,027 | 316,624 | 5,340,566 | 144,771 | |||||||||||||||||||
Total impaired | $ | 13,870,537 | $ | 7,103,097 | $ | 441,624 | $ | 9,244,125 | $ | 252,639 | ||||||||||||||
(1) Generally accepted accounting principles require that we initially record acquired loans at fair value which includes a discount for loans with credit impairment. These loans are not performing according to their contractual terms and meet the definition of an acquired, credit-impaired loan. Although we do not accrue interest income at the contractual rate on these loans, we do recognize an accretable yield as interest income to the extent such yield is supported by cash flow analysis of the underlying loans. Acquired, credit-impaired loans where the cash flows do not perform according to initial accretable yield estimates are considered impaired. | ||||||||||||||||||||||||
Summary of contract amount due and recorded book balance of the non-accrual loans | ' | |||||||||||||||||||||||
Loans on Non-accrual Status | ||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||
# of | Unpaid | Recorded | Interest Not | # of | Unpaid | Recorded | Interest Not | |||||||||||||||||
Contracts | Principal | Investment | Accrued | Contracts | Principal | Investment | Accrued | |||||||||||||||||
Balance | Balance | |||||||||||||||||||||||
Legacy | ||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||
Commercial | 2 | $ | 2,261,011 | $ | 1,302,147 | $ | 85,660 | 2 | $ | 1,226,011 | $ | 1,226,011 | $ | 103,529 | ||||||||||
Residential | 2 | 552,877 | 552,877 | 46,176 | 2 | 591,873 | 591,873 | 25,449 | ||||||||||||||||
Consumer | 2 | 14,781 | 14,781 | 31 | — | — | — | — | ||||||||||||||||
Total non-accrual loans | 6 | 2,828,669 | 1,869,805 | 131,867 | 4 | 1,817,884 | 1,817,884 | 128,978 | ||||||||||||||||
Acquired (1) | ||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||
Commercial | — | — | — | — | 8 | 3,808,963 | 1,401,187 | 649,266 | ||||||||||||||||
Construction | — | — | — | — | 4 | 2,538,565 | 100,000 | 592,476 | ||||||||||||||||
Residential | — | — | — | — | 10 | 4,346,364 | 2,555,374 | 526,669 | ||||||||||||||||
Commercial | — | — | — | — | 3 | 123,949 | 35,392 | 45,787 | ||||||||||||||||
Total non-accrual loans | — | — | — | — | 25 | 10,817,841 | 4,091,953 | 1,814,198 | ||||||||||||||||
(1) Generally accepted accounting principles require that we initially record acquired loans at fair value which includes a discount for loans with credit impairment. These loans are not performing according to their contractual terms and meet the definition of an acquired, credit-impaired loan. Although we do not accrue interest income at the contractual rate on these loans, we do recognize an accretable yield as interest income to the extent such yield is supported by cash flow analysis of the underlying loans. Acquired, credit-impaired loans where the cash flows do not perform according to initial accretable yield estimates are considered impaired. | ||||||||||||||||||||||||
Summary of information related to loans modified in a TDR | ' | |||||||||||||||||||||||
Loans Modified as a TDR for the Nine Months Ended | ||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||||||||||
Troubled Debt Restructurings: | Number of | Recorded Investment | Number of | Recorded Investment | ||||||||||||||||||||
(dollars in thousands) | Contracts | (as of period end) | Contracts | (as of period end) | ||||||||||||||||||||
Acquired: | ||||||||||||||||||||||||
Residential Real Estate | 1 | $ | 60 | — | $ | — | ||||||||||||||||||
Total TDRs | 1 | $ | 60 | — | $ | — | ||||||||||||||||||
Summary of contractually required payments receivable, cash flows we expect to receive, non-accretable credit adjustments and the accretable yield for all acquired impaired loans | ' | |||||||||||||||||||||||
WSB Acquired Impaired Loans as of May 10, 2013 | ||||||||||||||||||||||||
May 10, 2013 | Contractually | Non-Accretable | Cash Flows | Accretable | Loans | |||||||||||||||||||
Required | Credit | Expected To Be | Yield | Receivable | ||||||||||||||||||||
Payments | Adjustments | Collected | ||||||||||||||||||||||
Receivable | ||||||||||||||||||||||||
Business loans risk rated 4 at acquisition | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Business loans risk rated 5 at acquisition | 33,038 | 19,822 | 13,216 | 21 | 13,195 | |||||||||||||||||||
Business loans risk rated 6 at acquisition | 233,880 | 140,328 | 93,552 | 10,765 | 82,787 | |||||||||||||||||||
Total business loans | 266,918 | 160,150 | 106,768 | 10,786 | 95,982 | |||||||||||||||||||
Real estate loans risk rated 4 at acquisition | 6,352,445 | 2,155,197 | 4,197,248 | 655,823 | 3,541,425 | |||||||||||||||||||
Real estate loans risk rated 5 at acquisition | 7,346,174 | 1,938,104 | 5,408,070 | 643,135 | 4,764,935 | |||||||||||||||||||
Real estate loans risk rated 6 at acquisition | 19,385,909 | 8,261,491 | 11,124,418 | 1,394,568 | 9,729,850 | |||||||||||||||||||
Real estate loans risk rated 7 at acquisition | 424,784 | 157,367 | 267,417 | (60,149 | ) | 327,566 | ||||||||||||||||||
Total real estate loans | 33,509,312 | 12,512,159 | 20,997,153 | 2,633,377 | 18,363,776 | |||||||||||||||||||
Total impaired loans acquired | $ | 33,776,230 | $ | 12,672,309 | $ | 21,103,921 | $ | 2,644,163 | $ | 18,459,758 | ||||||||||||||
Acquired Impaired Loans as of September 30, 2013 | ||||||||||||||||||||||||
September 30, 2013 | Contractually | Non-Accretable | Cash Flows | Accretable | Loans | |||||||||||||||||||
Required | Credit | Expected To Be | Yield | Receivable | ||||||||||||||||||||
Payments | Adjustments | Collected | ||||||||||||||||||||||
Receivable | ||||||||||||||||||||||||
Business loans risk rated 4 at acquisition | $ | 63,041 | $ | 8,835 | $ | 54,206 | $ | — | $ | 54,206 | ||||||||||||||
Business loans risk rated 5 at acquisition | 6,196 | 2,845 | 3,351 | — | 3,351 | |||||||||||||||||||
Business loans risk rated 6 at acquisition | — | — | — | — | — | |||||||||||||||||||
Total business loans | 69,237 | 11,680 | 57,557 | — | 57,557 | |||||||||||||||||||
Real estate loans risk rated 4 at acquisition | 4,744,213 | 1,053,341 | 3,690,872 | (14,405 | ) | 3,705,277 | ||||||||||||||||||
Real estate loans risk rated 5 at acquisition | 2,198,505 | 418,325 | 1,780,180 | 64,280 | 1,715,900 | |||||||||||||||||||
Real estate loans risk rated 6 at acquisition | 8,548,075 | 4,660,493 | 3,887,582 | — | 3,887,582 | |||||||||||||||||||
Real estate loans risk rated 7 at acquisition | 53,828 | 32,296 | 21,532 | — | 21,532 | |||||||||||||||||||
Total real estate loans | 15,544,621 | 6,164,455 | 9,380,166 | 49,875 | 9,330,291 | |||||||||||||||||||
Total impaired loans acquired | $ | 15,613,858 | $ | 6,176,135 | $ | 9,437,723 | $ | 49,875 | $ | 9,387,848 | ||||||||||||||
Accretable Yield | ||||||||||||||||||||||||
Beginning balance December 31, 2012 | $ | — | ||||||||||||||||||||||
Additions due to WSB acquisition | 2,746,647 | |||||||||||||||||||||||
Accreted to income | (1,664,534 | ) | ||||||||||||||||||||||
Reclassification from non-accretable (1) | 1,655,520 | |||||||||||||||||||||||
Reclassification to loans held for sale (2) | (2,687,758 | ) | ||||||||||||||||||||||
Ending balance September 30, 2013 | $ | 49,875 | ||||||||||||||||||||||
(1) Represents amounts paid in full on loans, payments on loans with zero balances and an increase in cash flows expected to be collected. | ||||||||||||||||||||||||
(2) Represent loans reclassified as held for sale. We have pooled the previously acquired impaired loans which are scheduled for sale in the fourth quarter. | ||||||||||||||||||||||||
Acquired Impaired Loans as of December 31, 2012 | ||||||||||||||||||||||||
December 31, 2012 | Contractually | Non-Accretable | Cash Flows | Loans | ||||||||||||||||||||
Required | Credit | Expected To Be | Receivable | |||||||||||||||||||||
Payments | Adjustments | Collected | ||||||||||||||||||||||
Receivable | ||||||||||||||||||||||||
Business loans risk rated 4 at acquisition | $ | 1,371,081 | $ | 205,662 | $ | 1,165,419 | $ | 1,165,419 | ||||||||||||||||
Business loans risk rated 5 at acquisition | 50,153 | 42,882 | 7,271 | 7,271 | ||||||||||||||||||||
Business loans risk rated 6 at acquisition | 87,422 | 52,030 | 35,392 | 35,392 | ||||||||||||||||||||
Total business loans | 1,508,656 | 300,574 | 1,208,082 | 1,208,082 | ||||||||||||||||||||
Real estate loans risk rated 4 at acquisition | 3,526,864 | 482,256 | 3,044,608 | 3,044,608 | ||||||||||||||||||||
Real estate loans risk rated 5 at acquisition | 3,474,335 | 1,706,877 | 1,767,458 | 1,767,458 | ||||||||||||||||||||
Real estate loans risk rated 6 at acquisition | 16,420,887 | 9,077,153 | 7,343,734 | 7,343,734 | ||||||||||||||||||||
Total real estate loans | 23,422,086 | 11,266,286 | 12,155,800 | 12,155,800 | ||||||||||||||||||||
Total impaired loans acquired | $ | 24,930,742 | $ | 11,566,860 | $ | 13,363,882 | $ | 13,363,882 | ||||||||||||||||
Accretable Yield | ||||||||||||||||||||||||
Beginning balance December 31, 2011 | $ | — | ||||||||||||||||||||||
Accreted to income | (3,343,955 | ) | ||||||||||||||||||||||
Reclassification from non-accretable (1) | 3,343,955 | |||||||||||||||||||||||
Ending balance December 31, 2012 | $ | — | ||||||||||||||||||||||
(1) Represents amounts paid in full on loans, payments on loans with zero balances and an increase in cash flows expected to be collected. | ||||||||||||||||||||||||
Summary of class of loans by risk rating | ' | |||||||||||||||||||||||
September 30, 2013 | Account Balance | |||||||||||||||||||||||
Risk Rating | Legacy | Acquired | Total | |||||||||||||||||||||
Pass (1-4) | ||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||
Commercial | $ | 326,450,400 | $ | 93,761,830 | $ | 420,212,229 | ||||||||||||||||||
Construction | 64,025,900 | 23,742,025 | 87,767,926 | |||||||||||||||||||||
Residential | 53,602,708 | 92,719,370 | 146,322,078 | |||||||||||||||||||||
Commercial | 100,020,432 | 10,235,969 | 110,256,401 | |||||||||||||||||||||
Consumer | 10,193,927 | 1,064,878 | 11,258,805 | |||||||||||||||||||||
Special Mention (5) | 15,599,835 | 5,377,702 | 20,977,537 | |||||||||||||||||||||
Substandard (6) | 5,377,142 | 7,147,505 | 12,524,648 | |||||||||||||||||||||
Doubtful (7) | — | 21,531 | 21,531 | |||||||||||||||||||||
Loss (8) | — | — | — | |||||||||||||||||||||
Total | $ | 575,270,344 | $ | 234,070,810 | $ | 809,341,154 | ||||||||||||||||||
December 31, 2012 | Account Balance | |||||||||||||||||||||||
Risk Rating | Legacy | Acquired | Total | |||||||||||||||||||||
Pass (1-4) | ||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||
Commercial | $ | 269,370,808 | $ | 60,971,510 | $ | 330,342,318 | ||||||||||||||||||
Construction | 44,512,690 | 3,683,127 | 48,195,817 | |||||||||||||||||||||
Residential | 35,877,467 | 45,417,057 | 81,294,523 | |||||||||||||||||||||
Commercial | 85,862,581 | 10,070,234 | 95,932,815 | |||||||||||||||||||||
Consumer | 9,944,467 | 1,059,992 | 11,004,459 | |||||||||||||||||||||
Special Mention (5) | 14,182,357 | 3,716,126 | 17,898,483 | |||||||||||||||||||||
Substandard (6) | 5,494,540 | 7,853,337 | 13,347,877 | |||||||||||||||||||||
Doubtful (7) | — | — | — | |||||||||||||||||||||
Loss (8) | — | — | — | |||||||||||||||||||||
Total | $ | 465,244,910 | $ | 132,771,382 | $ | 598,016,292 | ||||||||||||||||||
Summary of activity in the allowance for loan losses by portfolio segment | ' | |||||||||||||||||||||||
Three Months Ended September 30, 2013 | Real | Commercial | Boats | Other | Total | |||||||||||||||||||
Estate | Consumer | |||||||||||||||||||||||
Beginning balance | $ | 2,973,156 | $ | 884,697 | $ | 248,538 | $ | 130,889 | $ | 4,237,280 | ||||||||||||||
Provision for loan losses | 764,046 | (28,939 | ) | (8,330 | ) | 13,223 | 740,000 | |||||||||||||||||
Provision for loan losses for loans acquired with deteriorated credit quality | (150,000 | ) | — | — | — | (150,000 | ) | |||||||||||||||||
Recoveries | 24,124 | 3,129 | — | 24,336 | 51,589 | |||||||||||||||||||
3,611,326 | 858,887 | 240,208 | 168,448 | 4,878,869 | ||||||||||||||||||||
Loans charged off | (439,073 | ) | — | — | (14,151 | ) | (453,224 | ) | ||||||||||||||||
Ending Balance | $ | 3,172,253 | $ | 858,887 | $ | 240,208 | $ | 154,297 | $ | 4,425,645 | ||||||||||||||
Nine Months Ending September 30, 2013 | Real | Commercial | Boats | Other | Total | |||||||||||||||||||
Estate | Consumer | |||||||||||||||||||||||
Beginning balance | $ | 2,826,584 | $ | 755,954 | $ | 248,928 | $ | 133,881 | $ | 3,965,347 | ||||||||||||||
Provision for loan losses | 996,527 | 190,352 | (8,720 | ) | (13,159 | ) | 1,165,000 | |||||||||||||||||
Provision for loan losses for loans acquired with deteriorated credit quality | (175,000 | ) | — | — | — | (175,000 | ) | |||||||||||||||||
Recoveries | 65,809 | 27,218 | — | 60,778 | 153,805 | |||||||||||||||||||
3,713,920 | 973,524 | 240,208 | 181,500 | 5,109,152 | ||||||||||||||||||||
Loans charged off | (541,667 | ) | (114,637 | ) | — | (27,203 | ) | (683,507 | ) | |||||||||||||||
Ending Balance | $ | 3,172,253 | $ | 858,887 | $ | 240,208 | $ | 154,297 | $ | 4,425,645 | ||||||||||||||
Amount allocated to: | ||||||||||||||||||||||||
Legacy Loans: | ||||||||||||||||||||||||
Individually evaluated for impairment | $ | 25,000 | $ | — | $ | — | $ | — | $ | 25,000 | ||||||||||||||
Collectively evaluated for impairment | 2,905,629 | 858,887 | 240,208 | 154,297 | 4,159,021 | |||||||||||||||||||
Acquired Loans: | ||||||||||||||||||||||||
Individually evaluated for impairment | 241,624 | — | — | — | 241,624 | |||||||||||||||||||
Ending balance | $ | 3,172,253 | $ | 858,887 | $ | 240,208 | $ | 154,297 | $ | 4,425,645 | ||||||||||||||
Schedule of analysis of the allowance for loan losses with the new methodology | ' | |||||||||||||||||||||||
Provision balance transferred as of September 30, 2013 | Beginning | Amount of | Ending balance | |||||||||||||||||||||
balance prior | Transfer | with new | ||||||||||||||||||||||
to new | methodology | |||||||||||||||||||||||
methodology | ||||||||||||||||||||||||
Other consumer | $ | 154,297 | $ | (154,297 | ) | $ | — | |||||||||||||||||
Boat | 240,208 | (240,208 | ) | — | ||||||||||||||||||||
Mortgage | 3,172,253 | (3,172,253 | ) | — | ||||||||||||||||||||
Commercial | 858,887 | (858,887 | ) | — | ||||||||||||||||||||
Commercial & Industrial Loans | — | 437,546 | 437,546 | |||||||||||||||||||||
Commercial Real Estate Loans — Owner Occupied | — | 833,654 | 833,654 | |||||||||||||||||||||
Commercial Real Estate Loans — Non-owner occupied | — | 919,550 | 919,550 | |||||||||||||||||||||
Commercial Real Estate Loans — Hotels/Motels/Inns | — | 278,254 | 278,254 | |||||||||||||||||||||
Residential Land Loans | — | 4,633 | 4,633 | |||||||||||||||||||||
Residential Acquisition & Development Loans | — | 125,475 | 125,475 | |||||||||||||||||||||
Commercial Land Loans | — | 63,731 | 63,731 | |||||||||||||||||||||
Commercial Acquisition & Development Loans | — | 129,979 | 129,979 | |||||||||||||||||||||
Residential First Lien Loans (including construction) — Investor | — | 188,448 | 188,448 | |||||||||||||||||||||
Residential First Lien Loans (including construction) — Owner Occupied | — | 1,327,178 | 1,327,178 | |||||||||||||||||||||
Consumer Installment Loans — Boats | — | 2,119 | 2,119 | |||||||||||||||||||||
Consumer Installment Loans — Other | — | 114,031 | 114,031 | |||||||||||||||||||||
Consumer Revolving & Credit Cards | — | 1,047 | 1,047 | |||||||||||||||||||||
$ | 4,425,645 | $ | — | $ | 4,425,645 | |||||||||||||||||||
Three Months Ended September 30, 2012 | Real | Commercial | Boats | Other | Total | |||||||||||||||||||
Estate | Consumer | |||||||||||||||||||||||
Beginning balance | $ | 2,893,147 | $ | 778,571 | $ | 294,175 | $ | 143,568 | $ | 4,109,461 | ||||||||||||||
Provision for loan losses | (400,494 | ) | (34,431 | ) | (10,375 | ) | 433 | (444,867 | ) | |||||||||||||||
Provision for loan losses for loans acquired with deteriorated credit quality | 599,624 | 220,243 | — | — | 819,867 | |||||||||||||||||||
Recoveries | 50,582 | (11,675 | ) | — | 21,601 | 60,508 | ||||||||||||||||||
3,142,859 | 952,708 | 283,800 | 165,602 | 4,544,969 | ||||||||||||||||||||
Loans charged off | (23,664 | ) | — | — | (27,557 | ) | (51,221 | ) | ||||||||||||||||
Ending Balance | $ | 3,119,195 | $ | 952,708 | $ | 283,800 | $ | 138,045 | $ | 4,493,748 | ||||||||||||||
Nine Months Ending September 30, 2012 | Real | Commercial | Boats | Other | Total | |||||||||||||||||||
Estate | Consumer | |||||||||||||||||||||||
Beginning balance | $ | 2,123,068 | $ | 922,310 | $ | 565,240 | $ | 130,653 | $ | 3,741,271 | ||||||||||||||
Provision for loan losses | 681,096 | (122,412 | ) | (281,440 | ) | 27,889 | 305,133 | |||||||||||||||||
Provision for loan losses for loans acquired with deteriorated credit quality | 599,624 | 220,243 | — | — | 819,867 | |||||||||||||||||||
Recoveries | 63,557 | 20,258 | — | 70,268 | 154,083 | |||||||||||||||||||
3,467,345 | 1,040,399 | 283,800 | 228,810 | 5,020,354 | ||||||||||||||||||||
Loans charged off | (348,150 | ) | (87,691 | ) | — | (90,765 | ) | (526,606 | ) | |||||||||||||||
Ending Balance | $ | 3,119,195 | $ | 952,708 | $ | 283,800 | $ | 138,045 | $ | 4,493,748 | ||||||||||||||
Amount allocated to: | ||||||||||||||||||||||||
Legacy Loans: | ||||||||||||||||||||||||
Individually evaluated for impairment | $ | 309,967 | $ | — | $ | — | $ | — | $ | 309,967 | ||||||||||||||
Collectively evaluated for impairment | 2,209,604 | 732,465 | 283,800 | 138,045 | 3,363,914 | |||||||||||||||||||
Acquired Loans: | ||||||||||||||||||||||||
Individually evaluated for impairment | 599,624 | 220,243 | — | — | 819,867 | |||||||||||||||||||
Ending balance | $ | 3,119,195 | $ | 952,708 | $ | 283,800 | $ | 138,045 | $ | 4,493,748 | ||||||||||||||
Summary of recorded investment in loans related to each balance in the allowance for possible loan losses by portfolio segment and disaggregated on the basis of impairment methodology | ' | |||||||||||||||||||||||
September 30, 2013 | Real | Commercial | Boats | Other | Total | |||||||||||||||||||
Estate | Consumer | |||||||||||||||||||||||
Legacy loans: | ||||||||||||||||||||||||
Individually evaluated for impairment with specific reserve | $ | 499,122 | $ | — | $ | — | $ | — | $ | 499,122 | ||||||||||||||
Individually evaluated for impairment without specific reserve | 3,230,535 | 1,647,484 | — | — | 4,878,019 | |||||||||||||||||||
Collectively evaluated for impairment with reserve | 455,830,423 | 103,868,853 | 6,813,030 | 3,380,897 | 569,893,203 | |||||||||||||||||||
Acquired loans: | ||||||||||||||||||||||||
Individually evaluated for impairment with specific reserve subsequent to acquisition (ASC 310-20 at acquisition) | 241,624 | — | — | — | 241,624 | |||||||||||||||||||
Individually evaluated for impairment without specific reserve (ASC 310-30 at acquisition) | 9,360,431 | 57,557 | — | — | 9,417,988 | |||||||||||||||||||
Collectively evaluated for impairment without reserve (ASC 310-20 at acquisition) | 212,369,480 | 10,976,840 | — | 1,064,878 | 224,411,198 | |||||||||||||||||||
Ending balance | $ | 681,531,615 | $ | 116,550,734 | $ | 6,813,030 | $ | 4,445,775 | $ | 809,341,154 | ||||||||||||||
September 30, 2012 | Real Estate | Commercial | Boats | Other | Total | |||||||||||||||||||
Consumer | ||||||||||||||||||||||||
Legacy loans: | ||||||||||||||||||||||||
Individually evaluated for impairment with specific reserve | $ | 1,315,642 | $ | — | $ | — | $ | — | $ | 1,315,642 | ||||||||||||||
Individually evaluated for impairment without specific reserve | 3,652,420 | 1,901,658 | — | — | 5,554,078 | |||||||||||||||||||
Collectively evaluated for impairment with reserve | 336,384,610 | 83,422,187 | 8,036,872 | 2,992,918 | 430,836,587 | |||||||||||||||||||
Acquired loans: | ||||||||||||||||||||||||
Individually evaluated for impairment with specific reserve subsequent to acquisition (ASC 310-20 at acquisition) | 957,624 | 220,243 | — | — | 1,177,867 | |||||||||||||||||||
Individually evaluated for impairment without specific reserve (ASC 310-30 at acquisition) | 12,954,203 | 1,269,171 | — | — | 14,223,374 | |||||||||||||||||||
Collectively evaluated for impairment without reserve (ASC 310-20 at acquisition) | 113,215,245 | 9,132,884 | — | 1,217,787 | 123,565,916 | |||||||||||||||||||
Ending balance | $ | 468,479,744 | $ | 95,946,143 | $ | 8,036,872 | $ | 4,210,705 | $ | 576,673,464 |
OTHER_REAL_ESTATE_OWNED_Tables
OTHER REAL ESTATE OWNED (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
OTHER REAL ESTATE OWNED | ' | ||||||||||
Schedule of transactions in other real estate owned during the period | ' | ||||||||||
Nine months ended September 30, 2013 | Legacy | Acquired | Total | ||||||||
Beginning balance | $ | 1,651,229 | $ | 2,068,220 | $ | 3,719,449 | |||||
Acquired from WSB Holdings, Inc. | — | 4,232,482 | 4,232,482 | ||||||||
Transferred in | — | 1,159,308 | 1,159,308 | ||||||||
Write down in value | — | (66,600 | ) | (66,600 | ) | ||||||
Sales/deposits on sales | (725,484 | ) | (2,197,599 | ) | (2,923,083 | ) | |||||
Net realized loss | (200,454 | ) | (11,842 | ) | (212,296 | ) | |||||
Total end of period | $ | 725,291 | $ | 5,183,969 | $ | 5,909,260 |
EARNINGS_PER_COMMON_SHARE_Tabl
EARNINGS PER COMMON SHARE (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
EARNINGS PER COMMON SHARE | ' | |||||||||
Schedule of weighted average and dilutive average number of shares | ' | |||||||||
Three Months Ended | Nine Months Ended | |||||||||
September 30, | September 30, | |||||||||
2013 | 2012 | 2013 | 2012 | |||||||
Weighted average number of shares | 10,004,138 | 6,829,785 | 8,464,112 | 6,826,390 | ||||||
Dilutive average number of shares | 10,117,380 | 6,909,147 | 8,565,602 | 6,886,147 |
STOCK_BASED_COMPENSATION_Table
STOCK BASED COMPENSATION (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
STOCK BASED COMPENSATION | ' | ||||||||||||||
Summary of the stock option activity | ' | ||||||||||||||
September 30, | |||||||||||||||
2013 | 2012 | ||||||||||||||
Weighted | Weighted | ||||||||||||||
Number | average | Number | average | ||||||||||||
of shares | exercise price | of shares | exercise price | ||||||||||||
Outstanding, beginning of period | 398,958 | $ | 8.71 | 325,331 | $ | 8.65 | |||||||||
Options granted | 52,712 | 12.04 | 94,627 | 8.47 | |||||||||||
Options exercised | (63,148 | ) | 8.68 | (2,900 | ) | 6.4 | |||||||||
Options forfeited | (14,539 | ) | 9.7 | (2,000 | ) | 8 | |||||||||
Outstanding, end of period | 373,983 | $ | 9.14 | 415,058 | $ | 8.62 | |||||||||
Schedule of information related to options | ' | ||||||||||||||
Outstanding options | Exercisable options | ||||||||||||||
Number of | Weighted | Weighted | Number of | Weighted | |||||||||||
shares at | average | average | shares at | average | |||||||||||
Exercise | September | remaining | exercise | September | exercise | ||||||||||
price | 30, 2013 | term | price | 30, 2013 | price | ||||||||||
$6.30-$7.50 | 67,764 | 5.57 | $ | 6.51 | 67,764 | $ | 6.51 | ||||||||
$7.51-$8.75 | 108,472 | 7.19 | 7.91 | 73,134 | 7.86 | ||||||||||
$8.76-$9.95 | 33,660 | 0.9 | 9.74 | 33,660 | 9.74 | ||||||||||
$9.96-$12.04 | 164,087 | 5.02 | 10.93 | 118,100 | 10.62 | ||||||||||
373,983 | 5.38 | $ | 9.14 | 292,658 | $ | 8.88 | |||||||||
Intrinsic value of outstanding options where the market value exceeds the exercise price. | $ | 1,600,294 | |||||||||||||
Intrinsic value of exercisable options where the market value exceeds the exercise price | $ | 1,328,950 | |||||||||||||
Summary of the restricted stock awards | ' | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2013 | 2012 | ||||||||||||||
Weighted | Weighted | ||||||||||||||
average | average | ||||||||||||||
Number | grant date | Number | grant date | ||||||||||||
of shares | fair value | of shares | fair value | ||||||||||||
Nonvested, beginning of period | 16,210 | $ | 7.7 | 15,691 | $ | 7.41 | |||||||||
Restricted stock granted | 8,382 | 12.04 | 10,947 | 8 | |||||||||||
Restricted stock vested | (9,225 | ) | 7.52 | (6,788 | ) | 7.34 | |||||||||
Restricted stock forfeited | (2,031 | ) | 9.44 | (520 | ) | 8 | |||||||||
Nonvested, end of period | 13,336 | $ | 10.29 | 19,330 | $ | 7.75 | |||||||||
Total fair value of shares vested | $ | 69,347 | $ | 49,853 | |||||||||||
Intrinsic value of outstanding restricted stock awards where the market value exceeds the exercise price | $ | 252,457 | $ | 212,823 | |||||||||||
Intrinsic value of vested restricted stock awards where the market value exceeds the exercise price | $ | 73,488 | $ | 74,736 | |||||||||||
Summary of the vesting schedule of the unvested restricted stock awards | ' | ||||||||||||||
Vesting Schedule | |||||||||||||||
of | |||||||||||||||
Unvested Restricted Stock | |||||||||||||||
Awards | |||||||||||||||
September 30, 2013 | |||||||||||||||
Vesting | # of Restricted | ||||||||||||||
Date | Shares | ||||||||||||||
12/31/13 | 3,900 | ||||||||||||||
1/27/14 | 3,725 | ||||||||||||||
1/26/15 | 1,969 | ||||||||||||||
2/27/16 | 3,742 | ||||||||||||||
Total Issued | 13,336 |
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||||||||||||||||||||
Schedule of assets and liabilities measured at fair value on a recurring basis | ' | |||||||||||||||||||||||||||||||
At September 30, 2013 (In thousands) | ||||||||||||||||||||||||||||||||
Quoted Prices in | Other | Significant | Total Changes | |||||||||||||||||||||||||||||
Active Markets for | Observable | Unobservable | in Fair Values | |||||||||||||||||||||||||||||
Carrying Value | Identical Assets | Inputs | Inputs | Included in | ||||||||||||||||||||||||||||
September 30, 2013 | (Level 1) | (Level 2) | (Level 3) | Period Earnings | ||||||||||||||||||||||||||||
Available-for-sale, Treasury securities and Sallie Mae | $ | 1,511 | $ | 1,511 | $ | — | $ | — | $ | — | ||||||||||||||||||||||
Available-for-sale, U.S. government agency | 45,792 | — | 45,792 | — | — | |||||||||||||||||||||||||||
Available-for-sale, Municipal securities | 60,053 | — | 60,053 | — | — | |||||||||||||||||||||||||||
Available-for-sale, FHLMC MBS | 5,513 | — | 5,513 | — | — | |||||||||||||||||||||||||||
Available-for-sale, FNMA MBS | 19,498 | — | 19,498 | — | — | |||||||||||||||||||||||||||
Available-for-sale, GNMA MBS | 42,070 | — | 42,070 | — | — | |||||||||||||||||||||||||||
SBA loan pools | 7,352 | 7,352 | ||||||||||||||||||||||||||||||
$ | 181,789 | $ | 1,511 | $ | 180,278 | $ | — | $ | — | |||||||||||||||||||||||
At December 31, 2012 (In thousands) | ||||||||||||||||||||||||||||||||
Quoted Prices in | Other | Significant | Total Changes | |||||||||||||||||||||||||||||
Active Markets for | Observable | Unobservable | in Fair Values | |||||||||||||||||||||||||||||
Carrying Value | Identical Assets | Inputs | Inputs | Included in | ||||||||||||||||||||||||||||
December 31, 2012 | (Level 1) | (Level 2) | (Level 3) | Period Earnings | ||||||||||||||||||||||||||||
Available-for-sale, Treasury securities and Sallie Mae | $ | 1,609 | $ | 1,609 | $ | — | $ | — | $ | — | ||||||||||||||||||||||
Available-for-sale, U.S. government agency | 28,570 | — | 28,570 | — | — | |||||||||||||||||||||||||||
Available-for-sale, Municipal securities | 63,854 | — | 63,854 | — | — | |||||||||||||||||||||||||||
Available-for-sale, FHLMC MBS | 6,690 | — | 6,690 | — | — | |||||||||||||||||||||||||||
Available-for-sale, FNMA MBS | 18,460 | — | 18,460 | — | — | |||||||||||||||||||||||||||
Available-for-sale, GNMA MBS | 51,612 | — | 51,612 | — | — | |||||||||||||||||||||||||||
SBA loan pools | 1,104 | 1,104 | ||||||||||||||||||||||||||||||
$ | 171,899 | $ | 1,609 | $ | 170,290 | $ | — | $ | — | |||||||||||||||||||||||
Schedule of assets and liabilities measured at fair value on a nonrecurring basis | ' | |||||||||||||||||||||||||||||||
At September 30, 2013 (In thousands) | ||||||||||||||||||||||||||||||||
Quoted Prices in | Other | Significant | ||||||||||||||||||||||||||||||
Active Markets for | Observable | Unobservable | ||||||||||||||||||||||||||||||
Carrying Value | Identical Assets | Inputs | Inputs | |||||||||||||||||||||||||||||
September 30, 2013 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||||
Impaired Loans | ||||||||||||||||||||||||||||||||
Legacy: | $ | 2,344 | $ | 2,344 | ||||||||||||||||||||||||||||
Acquired: | 739 | 739 | ||||||||||||||||||||||||||||||
Total Impaired Loans | 3,083 | — | — | 3,083 | ||||||||||||||||||||||||||||
Other real estate owned: | ||||||||||||||||||||||||||||||||
Legacy: | $ | 725 | $ | 725 | ||||||||||||||||||||||||||||
Acquired: | 5,184 | 5,184 | ||||||||||||||||||||||||||||||
Total other real estate owned: | 5,909 | — | — | 5,909 | ||||||||||||||||||||||||||||
Total | $ | 8,992 | $ | — | $ | — | $ | 8,992 | ||||||||||||||||||||||||
At December 31, 2012 (In thousands) | ||||||||||||||||||||||||||||||||
Quoted Prices in | Other | Significant | ||||||||||||||||||||||||||||||
Active Markets for | Observable | Unobservable | ||||||||||||||||||||||||||||||
Carrying Value | Identical Assets | Inputs | Inputs | |||||||||||||||||||||||||||||
December 31, 2012 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||||
Impaired Loans | ||||||||||||||||||||||||||||||||
Legacy | $ | 2,316 | $ | — | $ | — | $ | 2,316 | ||||||||||||||||||||||||
Acquired | 4,787 | — | — | 4,787 | ||||||||||||||||||||||||||||
Total Impaired Loans | $ | 7,103 | $ | — | $ | — | $ | 7,103 | ||||||||||||||||||||||||
. | ||||||||||||||||||||||||||||||||
Other real estate owned: | ||||||||||||||||||||||||||||||||
Legacy | $ | 1,651 | $ | — | $ | — | $ | 1,651 | ||||||||||||||||||||||||
Acquired | 2,068 | — | — | 2,068 | ||||||||||||||||||||||||||||
Total other real estate owned: | 3,719 | — | — | 3,719 | ||||||||||||||||||||||||||||
Total | $ | 10,822 | $ | — | $ | — | $ | 10,822 | ||||||||||||||||||||||||
Schedule of estimated fair value of financial instruments | ' | |||||||||||||||||||||||||||||||
September 30, 2013 (In thousands) | December 31, 2012 (In thousands) | |||||||||||||||||||||||||||||||
Quoted Prices | Significant | Significant | Quoted Prices | Significant | Significant | |||||||||||||||||||||||||||
Total | in Active | Other | Other | Total | in Active | Other | Other | |||||||||||||||||||||||||
Carrying | Estimated | Markets for | Observable | Unobservable | Carrying | Estimated | Markets for | Observable | Unobservable | |||||||||||||||||||||||
Amount | Fair | Identical Assets | Inputs | Inputs | Amount | Fair | Identical Assets | Inputs | Inputs | |||||||||||||||||||||||
(000’s) | Value | (Level 1) | (Level 2) | (Level 3) | (000’s) | Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 50,993 | $ | 50,993 | $ | 50,993 | $ | — | $ | — | $ | 28,691 | $ | 28,691 | $ | 28,691 | $ | — | $ | — | ||||||||||||
Loans receivable, net | 810,316 | 823,782 | — | — | 823,782 | 595,145 | 599,320 | — | — | 599,320 | ||||||||||||||||||||||
Loans held for sale | 22,585 | 22,585 | — | 22,612 | — | — | — | — | — | |||||||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||||||||
Available for sale | 181,528 | 181,528 | — | 181,528 | — | 171,541 | 171,541 | — | 171,541 | — | ||||||||||||||||||||||
Equity Securities at cost | 5,851 | 5,851 | — | 5,851 | — | 3,615 | 3,615 | — | 3,615 | — | ||||||||||||||||||||||
Bank Owned Life Insurance | 30,357 | 30,357 | — | 30,357 | — | 16,869 | 16,869 | — | 16,869 | — | ||||||||||||||||||||||
Accrued interest receivable | 3,296 | 3,296 | — | — | 3,296 | 2,639 | 2,639 | — | 1,031 | 1,608 | ||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||||||
Non-interest-bearing | 223,503 | 223,503 | — | 223,503 | — | 188,896 | 188,896 | — | 188,896 | — | ||||||||||||||||||||||
Interest bearing | 781,969 | 763,967 | — | 763,967 | — | 546,563 | 554,778 | — | 554,778 | — | ||||||||||||||||||||||
Short term borrowings | 56,204 | 56,204 | — | 56,204 | — | 37,905 | 37,905 | — | 37,905 | — | ||||||||||||||||||||||
Long term borrowings | 6,396 | 6,119 | — | 6,119 | — | 6,192 | 6,488 | — | 6,488 | — | ||||||||||||||||||||||
Accrued Interest payable | 259 | 250 | — | 250 | — | 547 | 547 | — | 547 | — | ||||||||||||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
item | |||||
Activity in the allowance for loan losses by portfolio segment | ' | ' | ' | ' | ' |
Allowance for loan losses established at acquisition date for purchased performing loans | ($150,000) | ' | $819,867 | ($175,000) | $819,867 |
Number of critical accounting policy adopted | ' | 1 | ' | ' | ' |
Specific reserve for credit deterioration of loan | 590,000 | ' | 375,000 | 990,000 | 1,125,000 |
MB&T | ' | ' | ' | ' | ' |
Activity in the allowance for loan losses by portfolio segment | ' | ' | ' | ' | ' |
Number of loan acquired of which further credit deterioration recognized | 1 | ' | ' | ' | ' |
Specific reserve for credit deterioration of loan | 290,000 | ' | ' | ' | ' |
Performing loans | ' | ' | ' | ' | ' |
Activity in the allowance for loan losses by portfolio segment | ' | ' | ' | ' | ' |
Allowance for loan losses established at acquisition date for purchased performing loans | ' | ' | ' | 0 | ' |
Look back period after change | '3 years | ' | ' | ' | ' |
Previously used measurement periods for loan losses | '3 years | ' | ' | ' | ' |
Additional provision for loan losses | $0 | ' | ' | ' | ' |
POINTER_RIDGE_OFFICE_INVESTMEN2
POINTER RIDGE OFFICE INVESTMENT, LLC (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | 10-May-13 | Dec. 31, 2012 | |
Balance Sheets | ' | ' | ' | ' | ' | ' |
Liabilities | $1,056,581,692 | ' | $1,056,581,692 | ' | $279,671,426 | $786,603,316 |
Equity | 123,131,763 | ' | 123,131,763 | ' | ' | 75,253,161 |
Statements of Income | ' | ' | ' | ' | ' | ' |
Net income | 2,203,274 | 2,007,631 | 3,380,844 | 5,755,923 | ' | ' |
Pointer Ridge | ' | ' | ' | ' | ' | ' |
Pointer Ridge Office Investment, LLC | ' | ' | ' | ' | ' | ' |
Ownership percentage | ' | ' | 62.50% | ' | ' | ' |
Balance Sheets | ' | ' | ' | ' | ' | ' |
Current assets | 278,672 | ' | 278,672 | ' | ' | 313,165 |
Non-current assets | 6,820,995 | ' | 6,820,995 | ' | ' | 6,938,990 |
Liabilities | 6,134,827 | ' | 6,134,827 | ' | ' | 6,208,029 |
Equity | 964,840 | ' | 964,840 | ' | ' | 1,044,126 |
Statements of Income | ' | ' | ' | ' | ' | ' |
Revenue | 230,223 | 213,415 | 676,613 | 624,669 | ' | ' |
Expenses | 243,936 | 268,519 | 755,899 | 778,478 | ' | ' |
Net income | ($13,713) | ($55,104) | ($79,286) | ($153,809) | ' | ' |
ACQUISITION_OF_WSB_HOLDINGS_IN2
ACQUISITION OF WSB HOLDINGS, INC. (Details) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | 10-May-13 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | 10-May-13 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | 10-May-13 |
WSB Holdings | WSB Holdings | WSB Holdings | WSB Holdings | WSB Holdings | ||||||||
Fair Value Adjustments | Fair Value Adjustments | |||||||||||
item | ||||||||||||
Acquisition of WSB Holdings, Inc. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Holder's right to receive cash for conversion of each share of common stock of acquiree (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $6.07 | ' | ' | ' | ' |
Holder's right to receive shares for conversion of each share of common stock of acquiree | ' | ' | ' | ' | ' | ' | ' | 0.557 | ' | ' | ' | ' |
Aggregate cash consideration | ' | ' | ' | ' | ' | ' | ' | $16,966,208 | ' | ' | ' | ' |
Total merger consideration | ' | ' | ' | ' | ' | ' | ' | 54,700,000 | ' | ' | ' | ' |
Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and due from banks | 49,957,119 | ' | 5,576,699 | 28,332,456 | ' | ' | ' | 5,576,699 | ' | ' | ' | ' |
Federal funds sold | 1,005,491 | ' | 16,303,692 | 228,113 | ' | ' | ' | 33,269,900 | ' | ' | ' | -16,966,208 |
Total cash and cash equivalents | 50,992,974 | ' | 21,880,391 | 28,690,761 | ' | ' | ' | 38,846,599 | ' | ' | ' | -16,966,208 |
Investment securities available for sale-at fair value | 181,527,632 | ' | 79,374,701 | 171,541,222 | ' | ' | ' | 79,476,355 | ' | ' | 849,118 | -101,654 |
Loans, net of deferred fees and costs | ' | ' | 162,941,102 | ' | ' | ' | ' | 177,204,282 | ' | ' | 102,484 | -14,263,180 |
Allowance for loan losses | -4,425,645 | -4,237,280 | ' | -3,965,347 | -4,493,748 | -4,109,461 | -3,741,271 | -2,767,274 | ' | ' | ' | 2,767,274 |
Premises and equipment | 35,520,366 | ' | 10,379,053 | 25,133,013 | ' | ' | ' | 4,705,902 | ' | ' | ' | 5,673,151 |
Accrued interest receivable | ' | ' | 886,413 | ' | ' | ' | ' | 886,413 | ' | ' | ' | ' |
Deferred income taxes | 21,451,728 | ' | 11,402,309 | 7,139,545 | ' | ' | ' | 7,396,519 | ' | ' | 2,949 | 4,005,790 |
Bank owned life insurance | 30,357,357 | ' | 12,986,817 | 16,869,307 | ' | ' | ' | 12,986,817 | ' | ' | ' | ' |
Other real estate owned | 5,909,260 | ' | 4,232,482 | 3,719,449 | ' | ' | ' | 5,225,958 | ' | ' | ' | -993,476 |
Core deposit intangible | ' | ' | 2,434,723 | ' | ' | ' | ' | ' | ' | ' | ' | 2,434,723 |
Other assets | 3,059,574 | ' | 3,758,688 | 3,038,064 | ' | ' | ' | 4,326,538 | ' | ' | ' | -567,850 |
Total assets | 1,179,713,455 | ' | 310,276,679 | 861,856,477 | ' | ' | ' | 328,288,109 | ' | ' | ' | -18,011,430 |
Deposits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-interest bearing | 223,503,418 | ' | 10,863,874 | 188,895,263 | ' | ' | ' | 10,863,874 | ' | ' | ' | ' |
Interest bearing | 761,869,410 | ' | 205,330,841 | 546,562,555 | ' | ' | ' | 204,375,389 | ' | ' | ' | 955,452 |
Total deposits | 985,372,828 | ' | 216,194,715 | 735,457,818 | ' | ' | ' | 215,239,263 | ' | ' | ' | 955,452 |
Long term borrowings | 6,118,744 | ' | 60,250,568 | 6,192,350 | ' | ' | ' | 56,000,000 | ' | ' | ' | 4,250,568 |
Accrued interest payable | 250,164 | ' | 246,416 | 311,735 | ' | ' | ' | 246,416 | ' | ' | ' | ' |
Other liabilities | 3,419,993 | ' | 2,979,727 | 1,884,924 | ' | ' | ' | 2,979,727 | ' | ' | ' | ' |
Total liabilities | 1,056,581,692 | ' | 279,671,426 | 786,603,316 | ' | ' | ' | 274,465,406 | ' | ' | ' | 5,206,020 |
Net assets acquired over liabilities assumed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net identifiable assets acquired over (under) liabilities assumed | ' | ' | 30,605,253 | ' | ' | ' | ' | 53,822,703 | -7,159,875 | ' | ' | -23,217,450 |
Goodwill | 7,793,665 | ' | 7,159,875 | 633,790 | ' | ' | ' | ' | 946,241 | ' | ' | 7,159,875 |
Net assets acquired over liabilities assumed | ' | ' | 37,765,128 | ' | ' | ' | ' | 53,822,703 | ' | ' | ' | -16,057,575 |
Purchase Price Consideration-Common Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
WSB Holdings shares outstanding exchanged for stock | ' | ' | ' | ' | ' | ' | ' | 5,223,633 | ' | ' | ' | ' |
Exchange ratio | ' | ' | ' | ' | ' | ' | ' | 0.557 | ' | ' | ' | ' |
Old Line Bancshares shares issued to WSB Holdings | ' | ' | ' | ' | ' | ' | ' | 2,909,486 | ' | ' | ' | ' |
Purchase price per WSB Holdings common share (in dollar per share) | ' | ' | ' | ' | ' | ' | ' | $6.07 | ' | ' | ' | ' |
Cash consideration | ' | ' | ' | ' | ' | ' | ' | 16,966,208 | ' | ' | ' | ' |
Purchase price assigned to shares exchanged for stock | ' | ' | ' | ' | ' | ' | ' | 37,765,128 | ' | ' | ' | ' |
Income tax rate used to record deferred tax asset at fair value (as a percent) | ' | ' | ' | ' | ' | ' | ' | 39.45% | ' | ' | ' | ' |
Number of commercial land loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' |
Credit on the commercial land loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,310 | ' |
Pro Forma Results | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net interest income | ' | ' | ' | ' | ' | ' | ' | ' | 31,405 | 33,137 | ' | ' |
Other non-interest revenue | ' | ' | ' | ' | ' | ' | ' | ' | 5,275 | 5,402 | ' | ' |
Total revenue | ' | ' | ' | ' | ' | ' | ' | ' | 36,680 | 38,539 | ' | ' |
Provision expense | ' | ' | ' | ' | ' | ' | ' | ' | 990 | 1,125 | ' | ' |
Other non-interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 32,825 | 31,477 | ' | ' |
Income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 2,865 | 5,937 | ' | ' |
Income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | 1,102 | 2,283 | ' | ' |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | $1,763 | $3,654 | ' | ' |
Basic earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | $0.21 | $0.48 | ' | ' |
Diluted earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | $0.21 | $0.47 | ' | ' |
INVESTMENT_SECURITIES_Details
INVESTMENT SECURITIES (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Investment securities | ' | ' |
Amortized cost | $186,090,132 | $167,475,820 |
Gross unrealized gains | 1,293,992 | 4,370,566 |
Gross unrealized losses | -5,856,492 | -305,164 |
Estimated fair value | 181,527,632 | 171,541,222 |
U. S. treasury | ' | ' |
Investment securities | ' | ' |
Amortized cost | 1,249,400 | 1,249,708 |
Gross unrealized gains | 513 | 1,542 |
Estimated fair value | 1,249,913 | 1,251,250 |
U.S. government agency | ' | ' |
Investment securities | ' | ' |
Amortized cost | 47,396,111 | 28,493,293 |
Gross unrealized gains | 5,250 | 105,183 |
Gross unrealized losses | -1,609,748 | -27,505 |
Estimated fair value | 45,791,613 | 28,570,971 |
Municipal securities | ' | ' |
Investment securities | ' | ' |
Amortized cost | 61,815,232 | 61,670,324 |
Gross unrealized gains | 794,982 | 2,453,427 |
Gross unrealized losses | -2,556,967 | -270,102 |
Estimated fair value | 60,053,247 | 63,853,649 |
FHLMC certificates | ' | ' |
Investment securities | ' | ' |
Amortized cost | 5,473,276 | 6,448,848 |
Gross unrealized gains | 86,789 | 245,541 |
Gross unrealized losses | -47,436 | -4,858 |
Estimated fair value | 5,512,629 | 6,689,531 |
FNMA certificates | ' | ' |
Investment securities | ' | ' |
Amortized cost | 19,629,429 | 17,600,875 |
Gross unrealized gains | 236,141 | 858,903 |
Gross unrealized losses | -367,592 | ' |
Estimated fair value | 19,497,978 | 18,459,778 |
GNMA certificates | ' | ' |
Investment securities | ' | ' |
Amortized cost | 42,880,388 | 50,914,071 |
Gross unrealized gains | 170,317 | 700,339 |
Gross unrealized losses | -980,782 | -2,699 |
Estimated fair value | 42,069,923 | 51,611,711 |
SBA loan pools | ' | ' |
Investment securities | ' | ' |
Amortized cost | 7,646,296 | 1,098,701 |
Gross unrealized gains | ' | 5,631 |
Gross unrealized losses | -293,967 | ' |
Estimated fair value | $7,352,329 | $1,104,332 |
INVESTMENT_SECURITIES_Details_
INVESTMENT SECURITIES (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
item | item | item | |||
Investment securities | ' | ' | ' | ' | ' |
Less than 12 months, Fair value | $130,865,517 | ' | $130,865,517 | ' | $20,765,258 |
Less than 12 months, Unrealized losses | 5,697,631 | ' | 5,697,631 | ' | 305,164 |
12 Months or More, Fair value | 1,712,342 | ' | 1,712,342 | ' | ' |
12 Months or More, Unrealized losses | 158,861 | ' | 158,861 | ' | ' |
Total, Fair value | 132,577,859 | ' | 132,577,859 | ' | 20,765,258 |
Total, Unrealized losses | 5,856,492 | ' | 5,856,492 | ' | 305,164 |
Number of securities in an unrealized loss position for greater than 12 months | 3 | ' | 3 | ' | 0 |
Number of securities in an unrealized loss position for less than 12 months | 141 | ' | 141 | ' | 35 |
Gross realized gains and proceeds from sales or calls of investment securities | ' | ' | ' | ' | ' |
Gross realized gains from the sale or call of investment securities | 0 | 289,511 | 641,088 | 849,539 | ' |
Proceeds from sales, maturities or calls of investment securities | ' | ' | 87,300,000 | 64,300,000 | ' |
U.S. government agency | ' | ' | ' | ' | ' |
Investment securities | ' | ' | ' | ' | ' |
Less than 12 months, Fair value | 42,786,362 | ' | 42,786,362 | ' | 4,498,200 |
Less than 12 months, Unrealized losses | 1,609,748 | ' | 1,609,748 | ' | 27,505 |
Total, Fair value | 42,786,362 | ' | 42,786,362 | ' | 4,498,200 |
Total, Unrealized losses | 1,609,748 | ' | 1,609,748 | ' | 27,505 |
Municipal securities | ' | ' | ' | ' | ' |
Investment securities | ' | ' | ' | ' | ' |
Less than 12 months, Fair value | 33,720,874 | ' | 33,720,874 | ' | 13,470,047 |
Less than 12 months, Unrealized losses | 2,398,106 | ' | 2,398,106 | ' | 270,102 |
12 Months or More, Fair value | 1,712,342 | ' | 1,712,342 | ' | ' |
12 Months or More, Unrealized losses | 158,861 | ' | 158,861 | ' | ' |
Total, Fair value | 35,433,216 | ' | 35,433,216 | ' | 13,470,047 |
Total, Unrealized losses | 2,556,967 | ' | 2,556,967 | ' | 270,102 |
Mortgage backed securities | ' | ' | ' | ' | ' |
Investment securities | ' | ' | ' | ' | ' |
Less than 12 months, Fair value | 47,005,953 | ' | 47,005,953 | ' | 2,797,011 |
Less than 12 months, Unrealized losses | 1,395,810 | ' | 1,395,810 | ' | 7,557 |
Total, Fair value | 47,005,953 | ' | 47,005,953 | ' | 2,797,011 |
Total, Unrealized losses | 1,395,810 | ' | 1,395,810 | ' | 7,557 |
SBA loan pools | ' | ' | ' | ' | ' |
Investment securities | ' | ' | ' | ' | ' |
Less than 12 months, Fair value | 7,352,328 | ' | 7,352,328 | ' | ' |
Less than 12 months, Unrealized losses | 293,967 | ' | 293,967 | ' | ' |
Total, Fair value | 7,352,328 | ' | 7,352,328 | ' | ' |
Total, Unrealized losses | $293,967 | ' | $293,967 | ' | ' |
INVESTMENT_SECURITIES_Details_1
INVESTMENT SECURITIES (Details 3) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Available for Sale, Amortized cost | ' | ' |
Within one year | $1,249,400 | ' |
Over one to five years | 11,628,857 | ' |
Over five to ten years | 50,571,838 | ' |
Over ten years | 122,640,037 | ' |
Total available for sale, Amortized cost | 186,090,132 | 167,475,820 |
Available for Sale, Fair value | ' | ' |
Within one year | 1,249,913 | ' |
Over one to five years | 11,658,412 | ' |
Over five to ten years | 49,206,713 | ' |
Over ten years | 119,412,594 | ' |
Estimated fair value | 181,527,632 | 171,541,222 |
Pledged securities | ' | ' |
Amortized cost | 38,229,610 | ' |
Fair value | $37,937,586 | ' |
LOANS_Details
LOANS (Details) (USD $) | 9 Months Ended | |||||
Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | |
item | ||||||
Held-for-investment | ' | ' | ' | ' | ' | ' |
Total before allowance and deferred loan cost | $809,341,154 | ' | $598,016,292 | $576,673,464 | ' | ' |
Allowance for loan losses | -4,425,645 | -4,237,280 | -3,965,347 | -4,493,748 | -4,109,461 | -3,741,271 |
Deferred loan costs, net | 975,078 | ' | 1,093,983 | ' | ' | ' |
Total | 805,890,587 | ' | 595,144,928 | ' | ' | ' |
Number of components segmented in loan portfolio | 2 | ' | ' | ' | ' | ' |
Number of members of board of directors forming loan committee | 7 | ' | ' | ' | ' | ' |
Real estate | ' | ' | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 681,531,615 | ' | ' | 468,479,744 | ' | ' |
Allowance for loan losses | -3,172,253 | -2,973,156 | -2,826,584 | -3,119,195 | -2,893,147 | -2,123,068 |
Real estate | Commercial | ' | ' | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 434,076,346 | ' | 344,885,482 | ' | ' | ' |
Minimum threshold amount of loan for which financial condition and operating performance of the borrower is monitored | 250,000 | ' | ' | ' | ' | ' |
Real estate | Commercial | Hospitality industry | ' | ' | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' | ' | ' |
Total | 66,700,000 | ' | 61,300,000 | ' | ' | ' |
Real estate | Construction | ' | ' | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 93,083,372 | ' | 52,778,391 | ' | ' | ' |
Real estate | Construction | Maximum | ' | ' | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' | ' | ' |
Maturity period of short duration loans | '9 months | ' | ' | ' | ' | ' |
Loan to value ratio (as a percent) | 80.00% | ' | ' | ' | ' | ' |
Real estate | Residential | ' | ' | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 154,371,896 | ' | 90,971,426 | ' | ' | ' |
Real estate | Residential | Maximum | ' | ' | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' | ' | ' |
Loan to value ratio (as a percent) | 85.00% | ' | ' | ' | ' | ' |
Debt to income ratio required (as a percent) | 40.00% | ' | ' | ' | ' | ' |
Commercial | ' | ' | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 116,550,735 | ' | 98,376,536 | 95,946,143 | ' | ' |
Allowance for loan losses | -858,887 | -884,697 | -755,954 | -952,708 | -778,571 | -922,310 |
Minimum threshold amount of loan for which financial condition and operating performance of the borrower is monitored | 250,000 | ' | ' | ' | ' | ' |
Boats | ' | ' | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 6,813,030 | ' | ' | 8,036,872 | ' | ' |
Allowance for loan losses | -240,208 | -248,538 | -248,928 | -283,800 | -294,175 | -565,240 |
Consumer Portfolio Segment [Member] | ' | ' | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 4,445,775 | ' | 11,004,457 | ' | ' | ' |
Consumer Portfolio Segment [Member] | Maximum | ' | ' | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' | ' | ' |
Debt to income ratio required (as a percent) | 40.00% | ' | ' | ' | ' | ' |
Legacy | ' | ' | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 575,270,344 | ' | 465,244,910 | ' | ' | ' |
Allowance for loan losses | -4,184,021 | ' | -3,648,723 | ' | ' | ' |
Deferred loan costs, net | 963,167 | ' | 1,093,983 | ' | ' | ' |
Total | 572,049,490 | ' | 462,690,170 | ' | ' | ' |
Legacy | Real estate | Commercial | ' | ' | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 334,552,174 | ' | 279,489,013 | ' | ' | ' |
Legacy | Real estate | Construction | ' | ' | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 68,310,288 | ' | 48,603,640 | ' | ' | ' |
Legacy | Real estate | Residential | ' | ' | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 56,697,617 | ' | 38,901,489 | ' | ' | ' |
Legacy | Commercial | ' | ' | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 105,516,338 | ' | 88,306,302 | ' | ' | ' |
Legacy | Boats | ' | ' | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 6,813,030 | ' | ' | ' | ' | ' |
Legacy | Consumer Portfolio Segment [Member] | ' | ' | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 3,380,897 | ' | 9,944,466 | ' | ' | ' |
Acquired | ' | ' | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 234,070,810 | ' | 132,771,382 | ' | ' | ' |
Allowance for loan losses | -241,624 | ' | -316,624 | ' | ' | ' |
Deferred loan costs, net | 11,911 | ' | ' | ' | ' | ' |
Total | 233,841,097 | ' | 132,454,758 | ' | ' | ' |
Acquired | Real estate | Commercial | ' | ' | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 99,524,172 | ' | 65,396,469 | ' | ' | ' |
Acquired | Real estate | Construction | ' | ' | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 24,773,084 | ' | 4,174,751 | ' | ' | ' |
Acquired | Real estate | Residential | ' | ' | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 97,674,279 | ' | 52,069,937 | ' | ' | ' |
Acquired | Commercial | ' | ' | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 11,034,397 | ' | 10,070,234 | ' | ' | ' |
Acquired | Consumer Portfolio Segment [Member] | ' | ' | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' | ' | ' |
Total before allowance and deferred loan cost | $1,064,878 | ' | $1,059,991 | ' | ' | ' |
LOANS_Details_2
LOANS (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Aging analysis of the loan held for investment portfolio | ' | ' |
Current | $793,371,611 | $586,827,565 |
Accruing past due loans: | ' | ' |
Total 30-59 days past due | 2,551,493 | 1,185,150 |
Total 60-89 days past due | 2,744,993 | 1,215,966 |
Total 90 or more days past due | 5,352,685 | 6,410 |
Total accruing past due loans | 10,649,171 | 2,407,526 |
Recorded Investment Non-accruing loans: | 1,869,805 | 5,909,837 |
Total | 805,890,587 | 595,144,928 |
Real estate | ' | ' |
Accruing past due loans: | ' | ' |
Total 30-59 days past due | 2,156,280 | 666,099 |
Total 60-89 days past due | 2,292,249 | 1,204,631 |
Total 90 or more days past due | 5,251,265 | ' |
Real estate | Commercial | ' | ' |
Accruing past due loans: | ' | ' |
Recorded Investment Non-accruing loans: | ' | 2,627,198 |
Real estate | Construction | ' | ' |
Accruing past due loans: | ' | ' |
Recorded Investment Non-accruing loans: | ' | 100,000 |
Real estate | Residential | ' | ' |
Accruing past due loans: | ' | ' |
Recorded Investment Non-accruing loans: | 552,877 | 3,147,247 |
Commercial | ' | ' |
Accruing past due loans: | ' | ' |
Total 30-59 days past due | 34,827 | 473,729 |
Total 60-89 days past due | 452,647 | ' |
Recorded Investment Non-accruing loans: | 1,302,147 | 35,392 |
Consumer | ' | ' |
Accruing past due loans: | ' | ' |
Total 30-59 days past due | 386 | 45,322 |
Total 60-89 days past due | 97 | 11,335 |
Total 90 or more days past due | 101,420 | 6,410 |
Recorded Investment Non-accruing loans: | 14,781 | ' |
Legacy | ' | ' |
Aging analysis of the loan held for investment portfolio | ' | ' |
Current | 565,917,029 | 459,073,548 |
Accruing past due loans: | ' | ' |
Total 30-59 days past due | 737,044 | 655,506 |
Total 60-89 days past due | 1,574,507 | 1,143,232 |
Total 90 or more days past due | 1,951,105 | ' |
Total accruing past due loans | 4,262,656 | 1,798,738 |
Recorded Investment Non-accruing loans: | 1,869,805 | 1,817,884 |
Total | 572,049,490 | 462,690,170 |
Legacy | Real estate | ' | ' |
Accruing past due loans: | ' | ' |
Total 30-59 days past due | 737,044 | 218,700 |
Total 60-89 days past due | 1,121,860 | 1,141,779 |
Total 90 or more days past due | 1,849,685 | ' |
Legacy | Real estate | Commercial | ' | ' |
Accruing past due loans: | ' | ' |
Recorded Investment Non-accruing loans: | 1,302,147 | 1,226,011 |
Legacy | Real estate | Residential | ' | ' |
Accruing past due loans: | ' | ' |
Recorded Investment Non-accruing loans: | 552,877 | 591,873 |
Legacy | Commercial | ' | ' |
Accruing past due loans: | ' | ' |
Total 30-59 days past due | ' | 436,806 |
Total 60-89 days past due | 452,647 | ' |
Recorded Investment Non-accruing loans: | 1,302,147 | ' |
Legacy | Consumer | ' | ' |
Accruing past due loans: | ' | ' |
Total 60-89 days past due | ' | 1,453 |
Total 90 or more days past due | 101,420 | ' |
Recorded Investment Non-accruing loans: | 14,781 | ' |
Acquired | ' | ' |
Aging analysis of the loan held for investment portfolio | ' | ' |
Current | 227,454,582 | 127,754,017 |
Accruing past due loans: | ' | ' |
Total 30-59 days past due | 1,814,449 | 529,644 |
Total 60-89 days past due | 1,170,486 | 72,734 |
Total 90 or more days past due | 3,401,580 | 6,410 |
Total accruing past due loans | 6,386,515 | 608,788 |
Recorded Investment Non-accruing loans: | ' | 4,091,953 |
Total | 233,841,097 | 132,454,758 |
Acquired | Real estate | ' | ' |
Accruing past due loans: | ' | ' |
Total 30-59 days past due | 1,779,236 | 447,399 |
Total 60-89 days past due | 1,170,389 | 62,852 |
Total 90 or more days past due | 3,401,580 | ' |
Acquired | Real estate | Commercial | ' | ' |
Accruing past due loans: | ' | ' |
Recorded Investment Non-accruing loans: | ' | 1,401,187 |
Acquired | Real estate | Construction | ' | ' |
Accruing past due loans: | ' | ' |
Recorded Investment Non-accruing loans: | ' | 100,000 |
Acquired | Real estate | Residential | ' | ' |
Accruing past due loans: | ' | ' |
Recorded Investment Non-accruing loans: | ' | 2,555,374 |
Acquired | Commercial | ' | ' |
Accruing past due loans: | ' | ' |
Total 30-59 days past due | 34,827 | 36,923 |
Recorded Investment Non-accruing loans: | ' | 35,392 |
Acquired | Consumer | ' | ' |
Accruing past due loans: | ' | ' |
Total 30-59 days past due | 386 | 45,322 |
Total 60-89 days past due | 97 | 9,882 |
Total 90 or more days past due | ' | $6,410 |
LOANS_Details_3
LOANS (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
Unpaid Principal Balance | ' | ' | ' |
Total | $3,394,895 | $3,394,895 | $13,870,537 |
Recorded Investment | ' | ' | ' |
Total | 3,354,018 | 3,354,018 | 7,103,097 |
Related Allowance | ' | ' | ' |
Total | 266,624 | 266,624 | 441,624 |
Average Recorded Investment | ' | ' | ' |
Total | 3,363,457 | 3,409,954 | 9,244,125 |
Interest Income Recognized | ' | ' | ' |
Total | 14,838 | 40,102 | 252,639 |
Legacy | ' | ' | ' |
Unpaid Principal Balance | ' | ' | ' |
Total | 2,368,927 | 2,368,927 | 2,316,070 |
Recorded Investment | ' | ' | ' |
Total | 2,368,927 | 2,368,927 | 2,316,070 |
Related Allowance | ' | ' | ' |
Total | 25,000 | 25,000 | 125,000 |
Average Recorded Investment | ' | ' | ' |
Total | 2,377,240 | 2,419,091 | 3,903,559 |
Interest Income Recognized | ' | ' | ' |
Total | 4,903 | 12,589 | 107,868 |
Legacy | Real estate | Commercial | ' | ' | ' |
Unpaid Principal Balance | ' | ' | ' |
With no related allowance recorded | 1,302,147 | 1,302,147 | 874,735 |
With an allowance recorded | 241,624 | 241,624 | 849,462 |
Recorded Investment | ' | ' | ' |
With no related allowance recorded | 1,302,147 | 1,302,147 | 874,735 |
With an allowance recorded | 241,624 | 241,624 | 849,462 |
Related Allowance | ' | ' | ' |
Total | 241,624 | 241,624 | 125,000 |
Average Recorded Investment | ' | ' | ' |
With no related allowance recorded | 1,314,245 | 1,341,363 | 686,724 |
With an allowance recorded | 241,624 | 241,624 | 1,769,664 |
Interest Income Recognized | ' | ' | ' |
With an allowance recorded | ' | ' | 31,559 |
Legacy | Real estate | Construction | ' | ' | ' |
Average Recorded Investment | ' | ' | ' |
With no related allowance recorded | ' | ' | 727,003 |
Legacy | Real estate | Residential | ' | ' | ' |
Unpaid Principal Balance | ' | ' | ' |
With no related allowance recorded | 426,989 | 426,989 | 591,873 |
With an allowance recorded | 499,122 | 499,122 | ' |
Recorded Investment | ' | ' | ' |
With no related allowance recorded | 426,989 | 426,989 | 591,873 |
With an allowance recorded | 499,122 | 499,122 | ' |
Related Allowance | ' | ' | ' |
Total | 25,000 | 25,000 | ' |
Average Recorded Investment | ' | ' | ' |
With no related allowance recorded | 427,156 | 433,529 | 353,680 |
With an allowance recorded | 499,122 | 499,122 | ' |
Interest Income Recognized | ' | ' | ' |
With no related allowance recorded | ' | ' | 76,309 |
With an allowance recorded | 4,839 | 12,525 | ' |
Legacy | Commercial | ' | ' | ' |
Unpaid Principal Balance | ' | ' | ' |
With no related allowance recorded | 125,888 | 125,888 | ' |
Recorded Investment | ' | ' | ' |
With no related allowance recorded | 125,888 | 125,888 | ' |
Average Recorded Investment | ' | ' | ' |
With no related allowance recorded | 126,790 | 130,163 | 145,841 |
With an allowance recorded | ' | ' | 77,976 |
Legacy | Consumer | ' | ' | ' |
Unpaid Principal Balance | ' | ' | ' |
With no related allowance recorded | 14,781 | 14,781 | ' |
Recorded Investment | ' | ' | ' |
With no related allowance recorded | 14,781 | 14,781 | ' |
Average Recorded Investment | ' | ' | ' |
With no related allowance recorded | 9,927 | 14,914 | ' |
With an allowance recorded | ' | ' | 142,671 |
Interest Income Recognized | ' | ' | ' |
With no related allowance recorded | 64 | 64 | ' |
Acquired | ' | ' | ' |
Unpaid Principal Balance | ' | ' | ' |
Total | 1,025,968 | 1,025,968 | 11,554,467 |
Recorded Investment | ' | ' | ' |
Total | 985,091 | 985,091 | 4,787,027 |
Related Allowance | ' | ' | ' |
Total | 241,624 | 241,624 | 316,624 |
Average Recorded Investment | ' | ' | ' |
Total | 986,217 | 990,863 | 5,340,566 |
Interest Income Recognized | ' | ' | ' |
Total | 9,935 | 27,513 | 144,771 |
Acquired | Real estate | Commercial | ' | ' | ' |
Unpaid Principal Balance | ' | ' | ' |
With no related allowance recorded | ' | ' | 2,180,807 |
With an allowance recorded | ' | ' | 1,628,156 |
Recorded Investment | ' | ' | ' |
With no related allowance recorded | ' | ' | 1,159,563 |
With an allowance recorded | ' | ' | 241,624 |
Related Allowance | ' | ' | ' |
Total | ' | ' | 241,624 |
Average Recorded Investment | ' | ' | ' |
With no related allowance recorded | ' | ' | 1,664,384 |
With an allowance recorded | ' | ' | 657,812 |
Interest Income Recognized | ' | ' | ' |
With no related allowance recorded | ' | ' | 39,476 |
With an allowance recorded | ' | ' | 6,319 |
Acquired | Real estate | Construction | ' | ' | ' |
Unpaid Principal Balance | ' | ' | ' |
With no related allowance recorded | ' | ' | 2,538,565 |
Recorded Investment | ' | ' | ' |
With no related allowance recorded | ' | ' | 100,000 |
Average Recorded Investment | ' | ' | ' |
With no related allowance recorded | ' | ' | 683,201 |
Interest Income Recognized | ' | ' | ' |
With no related allowance recorded | ' | ' | 4,186 |
Acquired | Real estate | Residential | ' | ' | ' |
Unpaid Principal Balance | ' | ' | ' |
With no related allowance recorded | 696,110 | 696,110 | 3,371,582 |
Recorded Investment | ' | ' | ' |
With no related allowance recorded | 655,233 | 655,233 | 1,798,180 |
Average Recorded Investment | ' | ' | ' |
With no related allowance recorded | 656,080 | 659,818 | 1,567,514 |
Interest Income Recognized | ' | ' | ' |
With no related allowance recorded | 8,424 | 24,107 | 34,931 |
Acquired | Commercial | ' | ' | ' |
Unpaid Principal Balance | ' | ' | ' |
With no related allowance recorded | 88,234 | 88,234 | 214,697 |
With an allowance recorded | ' | ' | 1,620,660 |
Recorded Investment | ' | ' | ' |
With no related allowance recorded | 88,234 | 88,234 | 126,140 |
With an allowance recorded | ' | ' | 1,361,520 |
Related Allowance | ' | ' | ' |
Total | ' | ' | 75,000 |
Average Recorded Investment | ' | ' | ' |
With no related allowance recorded | 88,513 | 89,421 | 172,982 |
With an allowance recorded | ' | ' | 543,133 |
Interest Income Recognized | ' | ' | ' |
With no related allowance recorded | 1,511 | 3,406 | 13,896 |
With an allowance recorded | ' | ' | 45,963 |
Acquired | Consumer | ' | ' | ' |
Average Recorded Investment | ' | ' | ' |
With no related allowance recorded | ' | ' | $51,540 |
LOANS_Details_4
LOANS (Details 4) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
item | item | |
Contract amount due and recorded book balance of the non-accrual loans | ' | ' |
Recorded Investment | $1,869,805 | $5,909,837 |
Real estate | Commercial | ' | ' |
Contract amount due and recorded book balance of the non-accrual loans | ' | ' |
Recorded Investment | ' | 2,627,198 |
Real estate | Construction | ' | ' |
Contract amount due and recorded book balance of the non-accrual loans | ' | ' |
Recorded Investment | ' | 100,000 |
Real estate | Residential | ' | ' |
Contract amount due and recorded book balance of the non-accrual loans | ' | ' |
Recorded Investment | 552,877 | 3,147,247 |
Commercial | ' | ' |
Contract amount due and recorded book balance of the non-accrual loans | ' | ' |
Recorded Investment | 1,302,147 | 35,392 |
Consumer | ' | ' |
Contract amount due and recorded book balance of the non-accrual loans | ' | ' |
Recorded Investment | 14,781 | ' |
Legacy | ' | ' |
Contract amount due and recorded book balance of the non-accrual loans | ' | ' |
# of Contracts | 6 | 4 |
Unpaid Principal Balance | 2,828,669 | 1,817,884 |
Recorded Investment | 1,869,805 | 1,817,884 |
Interest Not Accrued | 131,867 | 128,978 |
Legacy | Real estate | Commercial | ' | ' |
Contract amount due and recorded book balance of the non-accrual loans | ' | ' |
# of Contracts | 2 | 2 |
Unpaid Principal Balance | 2,261,011 | 1,226,011 |
Recorded Investment | 1,302,147 | 1,226,011 |
Interest Not Accrued | 85,660 | 103,529 |
Legacy | Real estate | Residential | ' | ' |
Contract amount due and recorded book balance of the non-accrual loans | ' | ' |
# of Contracts | 2 | 2 |
Unpaid Principal Balance | 552,877 | 591,873 |
Recorded Investment | 552,877 | 591,873 |
Interest Not Accrued | 46,176 | 25,449 |
Legacy | Commercial | ' | ' |
Contract amount due and recorded book balance of the non-accrual loans | ' | ' |
Recorded Investment | 1,302,147 | ' |
Legacy | Consumer | ' | ' |
Contract amount due and recorded book balance of the non-accrual loans | ' | ' |
# of Contracts | 2 | ' |
Unpaid Principal Balance | 14,781 | ' |
Recorded Investment | 14,781 | ' |
Interest Not Accrued | 31 | ' |
Acquired | ' | ' |
Contract amount due and recorded book balance of the non-accrual loans | ' | ' |
# of Contracts | ' | 25 |
Unpaid Principal Balance | ' | 10,817,841 |
Recorded Investment | ' | 4,091,953 |
Interest Not Accrued | ' | 1,814,198 |
Acquired | Real estate | Commercial | ' | ' |
Contract amount due and recorded book balance of the non-accrual loans | ' | ' |
# of Contracts | ' | 8 |
Unpaid Principal Balance | ' | 3,808,963 |
Recorded Investment | ' | 1,401,187 |
Interest Not Accrued | ' | 649,266 |
Acquired | Real estate | Construction | ' | ' |
Contract amount due and recorded book balance of the non-accrual loans | ' | ' |
# of Contracts | ' | 4 |
Unpaid Principal Balance | ' | 2,538,565 |
Recorded Investment | ' | 100,000 |
Interest Not Accrued | ' | 592,476 |
Acquired | Real estate | Residential | ' | ' |
Contract amount due and recorded book balance of the non-accrual loans | ' | ' |
# of Contracts | ' | 10 |
Unpaid Principal Balance | ' | 4,346,364 |
Recorded Investment | ' | 2,555,374 |
Interest Not Accrued | ' | 526,669 |
Acquired | Commercial | ' | ' |
Contract amount due and recorded book balance of the non-accrual loans | ' | ' |
# of Contracts | ' | 3 |
Unpaid Principal Balance | ' | 123,949 |
Recorded Investment | ' | 35,392 |
Interest Not Accrued | ' | $45,787 |
LOANS_Details_5
LOANS (Details 5) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |
item | item | item | item | |
Loans Modified as a TDR | ' | ' | ' | ' |
Number of Contracts | 6 | ' | 6 | 5 |
Restructured loans | $1,242,589 | ' | $1,242,589 | $1,193,260 |
Number of Contracts | 0 | 0 | 1 | ' |
Recorded Investment | 60,000 | ' | 60,000 | ' |
Number of financing receivables that have been modified by troubled debt restructurings | 0 | ' | 0 | ' |
Acquired | Residential | ' | ' | ' | ' |
Loans Modified as a TDR | ' | ' | ' | ' |
Number of Contracts | ' | ' | 1 | ' |
Recorded Investment | $60,000 | ' | $60,000 | ' |
LOANS_Details_6
LOANS (Details 6) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | 10-May-13 | 10-May-13 | Sep. 30, 2013 | 10-May-13 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | 10-May-13 | 10-May-13 | 10-May-13 | 10-May-13 | 10-May-13 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | 10-May-13 | 10-May-13 | 10-May-13 | |
Performing loans | MB&T | Real estate | Real estate | Real estate | Real estate | Commercial | Commercial | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | |||||
item | Performing loans | WSB Holdings, Inc. | WSB Holdings, Inc. | WSB Holdings, Inc. | Real estate | Real estate | Real estate | Real estate | Real estate | Real estate | Real estate | Real estate | Real estate | Real estate | Real estate | Real estate | Real estate | Real estate | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | ||||||||||||||
item | item | Performing loans | Risk rated 4 at acquisition | Risk rated 4 at acquisition | Risk rated 5 at acquisition | Risk rated 5 at acquisition | Risk rated 6 at acquisition | Risk rated 6 at acquisition | Risk rated 7 at acquisition | WSB Holdings, Inc. | WSB Holdings, Inc. | WSB Holdings, Inc. | WSB Holdings, Inc. | WSB Holdings, Inc. | Risk rated 4 at acquisition | Risk rated 4 at acquisition | Risk rated 5 at acquisition | Risk rated 5 at acquisition | Risk rated 6 at acquisition | WSB Holdings, Inc. | WSB Holdings, Inc. | WSB Holdings, Inc. | ||||||||||||||||||||
Risk rated 4 at acquisition | Risk rated 5 at acquisition | Risk rated 6 at acquisition | Risk rated 7 at acquisition | Risk rated 5 at acquisition | Risk rated 6 at acquisition | |||||||||||||||||||||||||||||||||||||
Contractually required payments receivable, cash flows we expect to receive, non-accretable credit adjustments and the accretable yield for all acquired impaired loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Provision for loan losses for loans acquired with deteriorated credit quality | ($150,000) | $819,867 | ($175,000) | $819,867 | $0 | ' | ($150,000) | $599,624 | ($175,000) | $599,624 | $220,243 | $220,243 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contractually Required Payments Receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,613,858 | 24,930,742 | ' | 33,776,230 | ' | ' | 15,544,621 | 23,422,086 | 4,744,213 | 3,526,864 | 2,198,505 | 3,474,335 | 8,548,075 | 16,420,887 | 53,828 | 33,509,312 | 6,352,445 | 7,346,174 | 19,385,909 | 424,784 | 69,237 | 1,508,656 | 63,041 | 1,371,081 | 6,196 | 50,153 | 87,422 | 266,918 | 33,038 | 233,880 |
Non-Accretable Credit Adjustments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,176,135 | 11,566,860 | ' | 12,672,309 | ' | 2,500,000 | 6,164,455 | 11,266,286 | 1,053,341 | 482,256 | 418,325 | 1,706,877 | 4,660,493 | 9,077,153 | 32,296 | 12,512,159 | 2,155,197 | 1,938,104 | 8,261,491 | 157,367 | 11,680 | 300,574 | 8,835 | 205,662 | 2,845 | 42,882 | 52,030 | 160,150 | 19,822 | 140,328 |
Cash Flows Expected To Be Collected | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,437,723 | 13,363,882 | ' | 21,103,921 | ' | ' | 9,380,166 | 12,155,800 | 3,690,872 | 3,044,608 | 1,780,180 | 1,767,458 | 3,887,582 | 7,343,734 | 21,532 | 20,997,153 | 4,197,248 | 5,408,070 | 11,124,418 | 267,417 | 57,557 | 1,208,082 | 54,206 | 1,165,419 | 3,351 | 7,271 | 35,392 | 106,768 | 13,216 | 93,552 |
Accretable Yield | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 49,875 | ' | ' | 2,644,163 | 49,875 | ' | 49,875 | ' | -14,405 | ' | 64,280 | ' | ' | ' | ' | 2,633,377 | 655,823 | 643,135 | 1,394,568 | -60,149 | ' | ' | ' | ' | ' | ' | ' | 10,786 | 21 | 10,765 |
Loans Receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,387,848 | 13,363,882 | ' | 18,459,758 | ' | ' | 9,330,291 | 12,155,800 | 3,705,277 | 3,044,608 | 1,715,900 | 1,767,458 | 3,887,582 | 7,343,734 | 21,532 | 18,363,776 | 3,541,425 | 4,764,935 | 9,729,850 | 327,566 | 57,557 | 1,208,082 | 54,206 | 1,165,419 | 3,351 | 7,271 | 35,392 | 95,982 | 13,195 | 82,787 |
Accretable Yield | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 49,875 | ' | -14,405 | ' | 64,280 | ' | ' | ' | ' | 2,633,377 | 655,823 | 643,135 | 1,394,568 | -60,149 | ' | ' | ' | ' | ' | ' | ' | 10,786 | 21 | 10,765 |
Additions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,746,647 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accreted to income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,664,534 | -3,343,955 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification from non-accretable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,655,520 | 3,343,955 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification to loans held for sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2,687,758 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ending balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 49,875 | ' | ' | 2,644,163 | 49,875 | ' | 49,875 | ' | -14,405 | ' | 64,280 | ' | ' | ' | ' | 2,633,377 | 655,823 | 643,135 | 1,394,568 | -60,149 | ' | ' | ' | ' | ' | ' | ' | 10,786 | 21 | 10,765 |
Additional information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of pools in which loan portfolio were segregated | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of loans considered for determination of net discounted value of cash flows | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 450 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of loans considered for determination of net discounted value of cash flows | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 143,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contractually required payments receivable on loans sold in orderly transaction between market participants used in the valuation of acquired loans at acquisition date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net premium calculated in the valuation at the acquisition date of acquired loans of loans sold in orderly transaction between market participants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-accretable credit adjustments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,176,135 | 11,566,860 | ' | 12,672,309 | ' | 2,500,000 | 6,164,455 | 11,266,286 | 1,053,341 | 482,256 | 418,325 | 1,706,877 | 4,660,493 | 9,077,153 | 32,296 | 12,512,159 | 2,155,197 | 1,938,104 | 8,261,491 | 157,367 | 11,680 | 300,574 | 8,835 | 205,662 | 2,845 | 42,882 | 52,030 | 160,150 | 19,822 | 140,328 |
Number of loans impaired | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 128 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Re-classified acquired loans to available for sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $21,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LOANS_Details_7
LOANS (Details 7) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 |
Real estate | Real estate | Real estate | Real estate | Real estate | Real estate | Real estate | Real estate | Commercial | Commercial | Commercial | Consumer | Consumer | Installment and other consumer loans and real estate loans | Performing loans | Pass (1-4) | Pass (1-4) | Pass (1-4) | Pass (1-4) | Pass (1-4) | Pass (1-4) | Pass (1-4) | Pass (1-4) | Pass (1-4) | Pass (1-4) | Good Quality (2) | Special Mention (5) | Special Mention (5) | Substandard (6) | Substandard (6) | Doubtful (7) | Legacy | Legacy | Legacy | Legacy | Legacy | Legacy | Legacy | Legacy | Legacy | Legacy | Legacy | Legacy | Legacy | Legacy | Legacy | Legacy | Legacy | Legacy | Legacy | Legacy | Legacy | Legacy | Legacy | Legacy | Legacy | Legacy | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | ||||
Commercial | Commercial | Construction | Construction | Residential | Residential | Real estate | Real estate | Real estate | Real estate | Real estate | Real estate | Commercial | Commercial | Consumer | Consumer | Commercial | Real estate | Real estate | Real estate | Real estate | Real estate | Real estate | Commercial | Commercial | Consumer | Consumer | Pass (1-4) | Pass (1-4) | Pass (1-4) | Pass (1-4) | Pass (1-4) | Pass (1-4) | Pass (1-4) | Pass (1-4) | Pass (1-4) | Pass (1-4) | Special Mention (5) | Special Mention (5) | Substandard (6) | Substandard (6) | Real estate | Real estate | Real estate | Real estate | Real estate | Real estate | Commercial | Commercial | Consumer | Consumer | Pass (1-4) | Pass (1-4) | Pass (1-4) | Pass (1-4) | Pass (1-4) | Pass (1-4) | Pass (1-4) | Pass (1-4) | Pass (1-4) | Pass (1-4) | Special Mention (5) | Special Mention (5) | Substandard (6) | Substandard (6) | Doubtful (7) | ||||||||||||||||||||||
Commercial | Commercial | Construction | Construction | Residential | Residential | Commercial | Commercial | Construction | Construction | Residential | Residential | Real estate | Real estate | Real estate | Real estate | Real estate | Real estate | Commercial | Commercial | Consumer | Consumer | Commercial | Commercial | Construction | Construction | Residential | Residential | Real estate | Real estate | Real estate | Real estate | Real estate | Real estate | Commercial | Commercial | Consumer | Consumer | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | Commercial | Construction | Construction | Residential | Residential | Commercial | Commercial | Construction | Construction | Residential | Residential | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit quality indicators | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Look back period after change | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Delinquency trend period considered for determining loss ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss ratio period considered | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum cash flow coverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Account Balance | $809,341,154 | $598,016,292 | $576,673,464 | $681,531,615 | $468,479,744 | $434,076,346 | $344,885,482 | $93,083,372 | $52,778,391 | $154,371,896 | $90,971,426 | $116,550,735 | $98,376,536 | $95,946,143 | $4,445,775 | $11,004,457 | ' | ' | $420,212,229 | $330,342,318 | $87,767,926 | $48,195,817 | $146,322,078 | $81,294,523 | $110,256,401 | $95,932,815 | $11,258,805 | $11,004,459 | ' | $20,977,537 | $17,898,483 | $12,524,648 | $13,347,877 | $21,531 | $575,270,344 | $465,244,910 | $334,552,174 | $279,489,013 | $68,310,288 | $48,603,640 | $56,697,617 | $38,901,489 | $105,516,338 | $88,306,302 | $3,380,897 | $9,944,466 | $326,450,400 | $269,370,808 | $64,025,900 | $44,512,690 | $53,602,708 | $35,877,467 | $100,020,432 | $85,862,581 | $10,193,927 | $9,944,467 | $15,599,835 | $14,182,357 | $5,377,142 | $5,494,540 | $234,070,810 | $132,771,382 | $99,524,172 | $65,396,469 | $24,773,084 | $4,174,751 | $97,674,279 | $52,069,937 | $11,034,397 | $10,070,234 | $1,064,878 | $1,059,991 | $93,761,830 | $60,971,510 | $23,742,025 | $3,683,127 | $92,719,370 | $45,417,057 | $10,235,969 | $10,070,234 | $1,064,878 | $1,059,992 | $5,377,702 | $3,716,126 | $7,147,505 | $7,853,337 | $21,531 |
LOANS_Details_8
LOANS (Details 8) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Legacy | Legacy | Legacy | Acquired | Acquired | Acquired | Real estate | Real estate | Real estate | Real estate | Real estate | Real estate | Real estate | Real estate | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | Boats | Boats | Boats | Boats | Boats | Boats | Other Consumer | Other Consumer | Other Consumer | Other Consumer | Other Consumer | Other Consumer | |||||
Legacy | Legacy | Acquired | Acquired | Legacy | Legacy | Acquired | Legacy | Legacy | Legacy | Legacy | |||||||||||||||||||||||||||
Activity in the allowance for loan losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | $4,237,280 | $4,109,461 | $3,965,347 | $3,741,271 | $4,184,021 | $3,648,723 | ' | $241,624 | $316,624 | ' | $2,973,156 | $2,893,147 | $2,826,584 | $2,123,068 | ' | ' | ' | ' | $884,697 | $778,571 | $755,954 | $922,310 | ' | ' | ' | $248,538 | $294,175 | $248,928 | $565,240 | ' | ' | $130,889 | $143,568 | $133,881 | $130,653 | ' | ' |
Provision for loan losses | 740,000 | -444,867 | 1,165,000 | 305,133 | ' | ' | ' | ' | ' | ' | 764,046 | -400,494 | 996,527 | 681,096 | ' | ' | ' | ' | -28,939 | -34,431 | 190,352 | -122,412 | ' | ' | ' | -8,330 | -10,375 | -8,720 | -281,440 | ' | ' | 13,223 | 433 | -13,159 | 27,889 | ' | ' |
Provision for loan losses for loans acquired with deteriorated credit quality | -150,000 | 819,867 | -175,000 | 819,867 | ' | ' | ' | ' | ' | ' | -150,000 | 599,624 | -175,000 | 599,624 | ' | ' | ' | ' | ' | 220,243 | ' | 220,243 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recoveries | 51,589 | 60,508 | 153,805 | 154,083 | ' | ' | ' | ' | ' | ' | 24,124 | 50,582 | 65,809 | 63,557 | ' | ' | ' | ' | 3,129 | -11,675 | 27,218 | 20,258 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24,336 | 21,601 | 60,778 | 70,268 | ' | ' |
Allowance for loan losses before charge offs | 4,878,869 | 4,544,969 | 5,109,152 | 5,020,354 | ' | ' | ' | ' | ' | ' | 3,611,326 | 3,142,859 | 3,713,920 | 3,467,345 | ' | ' | ' | ' | 858,887 | 952,708 | 973,524 | 1,040,399 | ' | ' | ' | 240,208 | 283,800 | 240,208 | 283,800 | ' | ' | 168,448 | 165,602 | 181,500 | 228,810 | ' | ' |
Loans charged off | -453,224 | -51,221 | -683,507 | -526,606 | ' | ' | ' | ' | ' | ' | -439,073 | -23,664 | -541,667 | -348,150 | ' | ' | ' | ' | ' | ' | -114,637 | -87,691 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -14,151 | -27,557 | -27,203 | -90,765 | ' | ' |
Ending Balance | 4,425,645 | 4,493,748 | 4,425,645 | 4,493,748 | 4,184,021 | 3,648,723 | ' | 241,624 | 316,624 | ' | 3,172,253 | 3,119,195 | 3,172,253 | 3,119,195 | ' | ' | ' | ' | 858,887 | 952,708 | 858,887 | 952,708 | ' | ' | ' | 240,208 | 283,800 | 240,208 | 283,800 | ' | ' | 154,297 | 138,045 | 154,297 | 138,045 | ' | ' |
Amount allocated to: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Individually evaluated for impairment | ' | ' | ' | ' | 25,000 | ' | 309,967 | 241,624 | ' | 819,867 | ' | ' | ' | ' | 25,000 | 309,967 | 241,624 | 599,624 | ' | ' | ' | ' | ' | ' | 220,243 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Collectively evaluated for impairment | ' | ' | ' | ' | 4,159,021 | ' | 3,363,914 | ' | ' | ' | ' | ' | ' | ' | 2,905,629 | 2,209,604 | ' | ' | ' | ' | ' | ' | 858,887 | 732,465 | ' | ' | ' | ' | ' | 240,208 | 283,800 | ' | ' | ' | ' | 154,297 | 138,045 |
Ending balance | $4,425,645 | $4,493,748 | $4,425,645 | $4,493,748 | $4,184,021 | $3,648,723 | ' | $241,624 | $316,624 | ' | $3,172,253 | $3,119,195 | $3,172,253 | $3,119,195 | ' | ' | ' | ' | $858,887 | $952,708 | $858,887 | $952,708 | ' | ' | ' | $240,208 | $283,800 | $240,208 | $283,800 | ' | ' | $154,297 | $138,045 | $154,297 | $138,045 | ' | ' |
LOANS_Details_9
LOANS (Details 9) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2011 |
Analysis of the allowance for loan losses with the new methodology | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | $4,425,645 | $4,237,280 | $3,965,347 | $4,493,748 | $4,109,461 | $3,741,271 |
Other Consumer | ' | ' | ' | ' | ' | ' |
Analysis of the allowance for loan losses with the new methodology | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | 154,297 | 130,889 | 133,881 | 138,045 | 143,568 | 130,653 |
Boats | ' | ' | ' | ' | ' | ' |
Analysis of the allowance for loan losses with the new methodology | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | 240,208 | 248,538 | 248,928 | 283,800 | 294,175 | 565,240 |
Mortgage | ' | ' | ' | ' | ' | ' |
Analysis of the allowance for loan losses with the new methodology | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | 3,172,253 | 2,973,156 | 2,826,584 | 3,119,195 | 2,893,147 | 2,123,068 |
Commercial | ' | ' | ' | ' | ' | ' |
Analysis of the allowance for loan losses with the new methodology | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | 858,887 | 884,697 | 755,954 | 952,708 | 778,571 | 922,310 |
Commercial & Industrial Loans | ' | ' | ' | ' | ' | ' |
Analysis of the allowance for loan losses with the new methodology | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | 437,546 | ' | ' | ' | ' | ' |
Commercial Real Estate Loans - Owner Occupied | ' | ' | ' | ' | ' | ' |
Analysis of the allowance for loan losses with the new methodology | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | 833,654 | ' | ' | ' | ' | ' |
Commercial Real Estate Loans - Non-owner occupied | ' | ' | ' | ' | ' | ' |
Analysis of the allowance for loan losses with the new methodology | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | 919,550 | ' | ' | ' | ' | ' |
Commercial Real Estate Loans - Hotels/Motels/Inns | ' | ' | ' | ' | ' | ' |
Analysis of the allowance for loan losses with the new methodology | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | 278,254 | ' | ' | ' | ' | ' |
Residential Land Loans | ' | ' | ' | ' | ' | ' |
Analysis of the allowance for loan losses with the new methodology | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | 4,633 | ' | ' | ' | ' | ' |
Residential Acquisition & Development Loans | ' | ' | ' | ' | ' | ' |
Analysis of the allowance for loan losses with the new methodology | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | 125,475 | ' | ' | ' | ' | ' |
Commercial Land Loans | ' | ' | ' | ' | ' | ' |
Analysis of the allowance for loan losses with the new methodology | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | 63,731 | ' | ' | ' | ' | ' |
Commercial Acquisition & Development Loans | ' | ' | ' | ' | ' | ' |
Analysis of the allowance for loan losses with the new methodology | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | 129,979 | ' | ' | ' | ' | ' |
Residential First Lien Loans (including construction) - Investor | ' | ' | ' | ' | ' | ' |
Analysis of the allowance for loan losses with the new methodology | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | 188,448 | ' | ' | ' | ' | ' |
Residential First Lien Loans (including construction) - Owner Occupied | ' | ' | ' | ' | ' | ' |
Analysis of the allowance for loan losses with the new methodology | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | 1,327,178 | ' | ' | ' | ' | ' |
Consumer Installment Loans - Boats | ' | ' | ' | ' | ' | ' |
Analysis of the allowance for loan losses with the new methodology | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | 2,119 | ' | ' | ' | ' | ' |
Consumer Installment Loans - Other | ' | ' | ' | ' | ' | ' |
Analysis of the allowance for loan losses with the new methodology | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | 114,031 | ' | ' | ' | ' | ' |
Consumer Revolving & Credit Cards | ' | ' | ' | ' | ' | ' |
Analysis of the allowance for loan losses with the new methodology | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | 1,047 | ' | ' | ' | ' | ' |
Balance of allowance for loan losses prior to new methodology | ' | ' | ' | ' | ' | ' |
Analysis of the allowance for loan losses with the new methodology | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | 4,425,645 | ' | ' | ' | ' | ' |
Balance of allowance for loan losses prior to new methodology | Other Consumer | ' | ' | ' | ' | ' | ' |
Analysis of the allowance for loan losses with the new methodology | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | 154,297 | ' | ' | ' | ' | ' |
Balance of allowance for loan losses prior to new methodology | Boats | ' | ' | ' | ' | ' | ' |
Analysis of the allowance for loan losses with the new methodology | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | 240,208 | ' | ' | ' | ' | ' |
Balance of allowance for loan losses prior to new methodology | Mortgage | ' | ' | ' | ' | ' | ' |
Analysis of the allowance for loan losses with the new methodology | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | 3,172,253 | ' | ' | ' | ' | ' |
Balance of allowance for loan losses prior to new methodology | Commercial | ' | ' | ' | ' | ' | ' |
Analysis of the allowance for loan losses with the new methodology | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | 858,887 | ' | ' | ' | ' | ' |
Amount of Transfer | Other Consumer | ' | ' | ' | ' | ' | ' |
Analysis of the allowance for loan losses with the new methodology | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | -154,297 | ' | ' | ' | ' | ' |
Amount of Transfer | Boats | ' | ' | ' | ' | ' | ' |
Analysis of the allowance for loan losses with the new methodology | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | -240,208 | ' | ' | ' | ' | ' |
Amount of Transfer | Mortgage | ' | ' | ' | ' | ' | ' |
Analysis of the allowance for loan losses with the new methodology | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | -3,172,253 | ' | ' | ' | ' | ' |
Amount of Transfer | Commercial | ' | ' | ' | ' | ' | ' |
Analysis of the allowance for loan losses with the new methodology | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | -858,887 | ' | ' | ' | ' | ' |
Amount of Transfer | Commercial & Industrial Loans | ' | ' | ' | ' | ' | ' |
Analysis of the allowance for loan losses with the new methodology | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | 437,546 | ' | ' | ' | ' | ' |
Amount of Transfer | Commercial Real Estate Loans - Owner Occupied | ' | ' | ' | ' | ' | ' |
Analysis of the allowance for loan losses with the new methodology | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | 833,654 | ' | ' | ' | ' | ' |
Amount of Transfer | Commercial Real Estate Loans - Non-owner occupied | ' | ' | ' | ' | ' | ' |
Analysis of the allowance for loan losses with the new methodology | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | 919,550 | ' | ' | ' | ' | ' |
Amount of Transfer | Commercial Real Estate Loans - Hotels/Motels/Inns | ' | ' | ' | ' | ' | ' |
Analysis of the allowance for loan losses with the new methodology | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | 278,254 | ' | ' | ' | ' | ' |
Amount of Transfer | Residential Land Loans | ' | ' | ' | ' | ' | ' |
Analysis of the allowance for loan losses with the new methodology | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | 4,633 | ' | ' | ' | ' | ' |
Amount of Transfer | Residential Acquisition & Development Loans | ' | ' | ' | ' | ' | ' |
Analysis of the allowance for loan losses with the new methodology | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | 125,475 | ' | ' | ' | ' | ' |
Amount of Transfer | Commercial Land Loans | ' | ' | ' | ' | ' | ' |
Analysis of the allowance for loan losses with the new methodology | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | 63,731 | ' | ' | ' | ' | ' |
Amount of Transfer | Commercial Acquisition & Development Loans | ' | ' | ' | ' | ' | ' |
Analysis of the allowance for loan losses with the new methodology | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | 129,979 | ' | ' | ' | ' | ' |
Amount of Transfer | Residential First Lien Loans (including construction) - Investor | ' | ' | ' | ' | ' | ' |
Analysis of the allowance for loan losses with the new methodology | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | 188,448 | ' | ' | ' | ' | ' |
Amount of Transfer | Residential First Lien Loans (including construction) - Owner Occupied | ' | ' | ' | ' | ' | ' |
Analysis of the allowance for loan losses with the new methodology | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | 1,327,178 | ' | ' | ' | ' | ' |
Amount of Transfer | Consumer Installment Loans - Boats | ' | ' | ' | ' | ' | ' |
Analysis of the allowance for loan losses with the new methodology | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | 2,119 | ' | ' | ' | ' | ' |
Amount of Transfer | Consumer Installment Loans - Other | ' | ' | ' | ' | ' | ' |
Analysis of the allowance for loan losses with the new methodology | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | 114,031 | ' | ' | ' | ' | ' |
Amount of Transfer | Consumer Revolving & Credit Cards | ' | ' | ' | ' | ' | ' |
Analysis of the allowance for loan losses with the new methodology | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | $1,047 | ' | ' | ' | ' | ' |
LOANS_Details_10
LOANS (Details 10) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
Recorded investment in loans related to each balance in the allowance for possible loan losses by portfolio segment and disaggregated on the basis of impairment methodology | ' | ' | ' |
Ending balance | $809,341,154 | $598,016,292 | $576,673,464 |
Real estate | ' | ' | ' |
Recorded investment in loans related to each balance in the allowance for possible loan losses by portfolio segment and disaggregated on the basis of impairment methodology | ' | ' | ' |
Ending balance | 681,531,615 | ' | 468,479,744 |
Commercial | ' | ' | ' |
Recorded investment in loans related to each balance in the allowance for possible loan losses by portfolio segment and disaggregated on the basis of impairment methodology | ' | ' | ' |
Ending balance | 116,550,735 | 98,376,536 | 95,946,143 |
Boats | ' | ' | ' |
Recorded investment in loans related to each balance in the allowance for possible loan losses by portfolio segment and disaggregated on the basis of impairment methodology | ' | ' | ' |
Ending balance | 6,813,030 | ' | 8,036,872 |
Other Consumer | ' | ' | ' |
Recorded investment in loans related to each balance in the allowance for possible loan losses by portfolio segment and disaggregated on the basis of impairment methodology | ' | ' | ' |
Ending balance | 4,445,775 | ' | 4,210,705 |
Legacy | ' | ' | ' |
Recorded investment in loans related to each balance in the allowance for possible loan losses by portfolio segment and disaggregated on the basis of impairment methodology | ' | ' | ' |
Individually evaluated for impairment with specific reserve | 499,122 | ' | 1,315,642 |
Individually evaluated for impairment without specific reserve | 4,878,019 | ' | 5,554,078 |
Collectively evaluated for impairment with reserve | 569,893,203 | ' | 430,836,587 |
Ending balance | 575,270,344 | 465,244,910 | ' |
Legacy | Real estate | ' | ' | ' |
Recorded investment in loans related to each balance in the allowance for possible loan losses by portfolio segment and disaggregated on the basis of impairment methodology | ' | ' | ' |
Individually evaluated for impairment with specific reserve | 499,122 | ' | 1,315,642 |
Individually evaluated for impairment without specific reserve | 3,230,535 | ' | 3,652,420 |
Collectively evaluated for impairment with reserve | 455,830,423 | ' | 336,384,610 |
Legacy | Commercial | ' | ' | ' |
Recorded investment in loans related to each balance in the allowance for possible loan losses by portfolio segment and disaggregated on the basis of impairment methodology | ' | ' | ' |
Individually evaluated for impairment without specific reserve | 1,647,484 | ' | 1,901,658 |
Collectively evaluated for impairment with reserve | 103,868,853 | ' | 83,422,187 |
Ending balance | 105,516,338 | 88,306,302 | ' |
Legacy | Boats | ' | ' | ' |
Recorded investment in loans related to each balance in the allowance for possible loan losses by portfolio segment and disaggregated on the basis of impairment methodology | ' | ' | ' |
Collectively evaluated for impairment with reserve | 6,813,030 | ' | 8,036,872 |
Ending balance | 6,813,030 | ' | ' |
Legacy | Other Consumer | ' | ' | ' |
Recorded investment in loans related to each balance in the allowance for possible loan losses by portfolio segment and disaggregated on the basis of impairment methodology | ' | ' | ' |
Collectively evaluated for impairment with reserve | 3,380,897 | ' | 2,992,918 |
Acquired | ' | ' | ' |
Recorded investment in loans related to each balance in the allowance for possible loan losses by portfolio segment and disaggregated on the basis of impairment methodology | ' | ' | ' |
Individually evaluated for impairment with specific reserve | 241,624 | ' | 1,177,867 |
Individually evaluated for impairment without specific reserve | 9,417,988 | ' | 14,223,374 |
Collectively evaluated for impairment without reserve | 224,411,198 | ' | 123,565,916 |
Ending balance | 234,070,810 | 132,771,382 | ' |
Acquired | Real estate | ' | ' | ' |
Recorded investment in loans related to each balance in the allowance for possible loan losses by portfolio segment and disaggregated on the basis of impairment methodology | ' | ' | ' |
Individually evaluated for impairment with specific reserve | 241,624 | ' | 957,624 |
Individually evaluated for impairment without specific reserve | 9,360,431 | ' | 12,954,203 |
Collectively evaluated for impairment without reserve | 212,369,480 | ' | 113,215,245 |
Acquired | Commercial | ' | ' | ' |
Recorded investment in loans related to each balance in the allowance for possible loan losses by portfolio segment and disaggregated on the basis of impairment methodology | ' | ' | ' |
Individually evaluated for impairment with specific reserve | ' | ' | 220,243 |
Individually evaluated for impairment without specific reserve | 57,557 | ' | 1,269,171 |
Collectively evaluated for impairment without reserve | 10,976,840 | ' | 9,132,884 |
Ending balance | 11,034,397 | 10,070,234 | ' |
Acquired | Other Consumer | ' | ' | ' |
Recorded investment in loans related to each balance in the allowance for possible loan losses by portfolio segment and disaggregated on the basis of impairment methodology | ' | ' | ' |
Collectively evaluated for impairment without reserve | $1,064,878 | ' | $1,217,787 |
OTHER_REAL_ESTATE_OWNED_Detail
OTHER REAL ESTATE OWNED (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | 10-May-13 | |
item | |||||
Other real estate owned | ' | ' | ' | ' | ' |
Number of components in which the other real estate owned were segmented | ' | ' | 2 | ' | ' |
Transactions in other real estate owned during the period | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | $3,719,449 | ' | $4,232,482 |
Acquired from WSB Holdings, Inc. | ' | ' | 4,232,482 | ' | ' |
Transferred in | ' | ' | 1,159,308 | ' | ' |
Write down in value | ' | ' | -84,040 | -281,000 | ' |
Sales/deposits on sales | ' | ' | -2,905,643 | -810,310 | ' |
(Gain)/loss on sales of other real estate owned | 11,072 | 48,509 | 212,296 | -110,704 | ' |
Total end of period | 5,909,260 | ' | 5,909,260 | ' | 4,232,482 |
Legacy | ' | ' | ' | ' | ' |
Transactions in other real estate owned during the period | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | 1,651,229 | ' | ' |
Sales/deposits on sales | ' | ' | -725,484 | ' | ' |
(Gain)/loss on sales of other real estate owned | ' | ' | -200,454 | ' | ' |
Total end of period | 725,291 | ' | 725,291 | ' | ' |
Acquired | ' | ' | ' | ' | ' |
Transactions in other real estate owned during the period | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | 2,068,220 | ' | ' |
Acquired from WSB Holdings, Inc. | ' | ' | 4,232,482 | ' | ' |
Transferred in | ' | ' | 1,159,308 | ' | ' |
Write down in value | ' | ' | -66,600 | ' | ' |
Sales/deposits on sales | ' | ' | -2,197,599 | ' | ' |
(Gain)/loss on sales of other real estate owned | ' | ' | -11,842 | ' | ' |
Total end of period | $5,183,969 | ' | $5,183,969 | ' | ' |
EARNINGS_PER_COMMON_SHARE_Deta
EARNINGS PER COMMON SHARE (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
EARNINGS PER COMMON SHARE | ' | ' | ' | ' |
Weighted average number of shares | 10,004,138 | 6,829,785 | 8,464,112 | 6,826,390 |
Dilutive average number of shares | 10,117,380 | 6,909,147 | 8,565,602 | 6,886,147 |
STOCK_BASED_COMPENSATION_Detai
STOCK BASED COMPENSATION (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
item | ||||
Stock based compensation | ' | ' | ' | ' |
Stock-based compensation expense | $26,120 | $49,521 | $184,034 | $135,381 |
Number of equity incentive plans | ' | ' | 2 | ' |
Unrecognized compensation cost related to non-vested stock options | 258,857 | ' | 258,857 | ' |
Period over which unrecognized compensation cost is expected to be realized | ' | ' | '1 year 2 months 12 days | ' |
Shares available for future issuance | 103,153 | ' | 103,153 | ' |
Maximum | ' | ' | ' | ' |
Stock based compensation | ' | ' | ' | ' |
Term from the date of issuance | ' | ' | '10 years | ' |
Stock options | ' | ' | ' | ' |
Number of shares | ' | ' | ' | ' |
Outstanding, beginning of period (in shares) | ' | ' | 398,958 | 325,331 |
Options granted (in shares) | ' | ' | 52,712 | 94,627 |
Options exercised (in shares) | ' | ' | -63,148 | -2,900 |
Options forfeited (in shares) | ' | ' | -14,539 | -2,000 |
Outstanding, end of period (in shares) | 373,983 | 415,058 | 373,983 | 415,058 |
Weighted average exercise price | ' | ' | ' | ' |
Outstanding, beginning of period (in dollars per share) | ' | ' | $8.71 | $8.65 |
Options granted (in dollars per share) | ' | ' | $12.04 | $8.47 |
Options exercised (in dollars per share) | ' | ' | $8.68 | $6.40 |
Options forfeited (in dollars per share) | ' | ' | $9.70 | $8 |
Outstanding, end of period (in dollars per share) | $9.14 | $8.62 | $9.14 | $8.62 |
Stock options | Vesting period one | ' | ' | ' | ' |
Stock based compensation | ' | ' | ' | ' |
Vesting period | ' | ' | '2 years | ' |
Stock options | Vesting period two | ' | ' | ' | ' |
Stock based compensation | ' | ' | ' | ' |
Vesting period | ' | ' | '3 years | ' |
Stock options | Vesting period three | ' | ' | ' | ' |
Stock based compensation | ' | ' | ' | ' |
Vesting period | ' | ' | '5 years | ' |
Non-qualified options | ' | ' | ' | ' |
Stock based compensation | ' | ' | ' | ' |
Recognition of tax benefits associated with the portion of the expense | ' | ' | $33,838 | $15,097 |
Restricted stock | Maximum | ' | ' | ' | ' |
Stock based compensation | ' | ' | ' | ' |
Vesting period | ' | ' | '3 years | ' |
Restricted stock | Minimum | ' | ' | ' | ' |
Stock based compensation | ' | ' | ' | ' |
Vesting period | ' | ' | '12 months | ' |
STOCK_BASED_COMPENSATION_Detai1
STOCK BASED COMPENSATION (Details 2) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Outstanding Options | ' |
Number of shares at the end of the period | 373,983 |
Weighted average remaining term | '5 years 4 months 17 days |
Weighted average exercise price (in dollars per share) | $9.14 |
Exercisable options | ' |
Number of shares at the end of the period | 292,658 |
Weighted average exercise price (in dollars per share) | $8.88 |
Intrinsic value of outstanding options and exercisable options | ' |
Intrinsic value of outstanding options where the market value exceeds the exercise price (in dollars) | $1,600,294 |
Intrinsic value of exercisable options where the market value exceeds the exercise price (in dollars) | $1,328,950 |
$6.30-$7.50 | ' |
Information related to options | ' |
Range of exercise prices, low end of the range (in dollars per share) | $6.30 |
Range of exercise prices, high end of the range (in dollars per share) | $7.50 |
Outstanding Options | ' |
Number of shares at the end of the period | 67,764 |
Weighted average remaining term | '5 years 6 months 25 days |
Weighted average exercise price (in dollars per share) | $6.51 |
Exercisable options | ' |
Number of shares at the end of the period | 67,764 |
Weighted average exercise price (in dollars per share) | $6.51 |
$7.51-$8.75 | ' |
Information related to options | ' |
Range of exercise prices, low end of the range (in dollars per share) | $7.51 |
Range of exercise prices, high end of the range (in dollars per share) | $8.75 |
Outstanding Options | ' |
Number of shares at the end of the period | 108,472 |
Weighted average remaining term | '7 years 2 months 8 days |
Weighted average exercise price (in dollars per share) | $7.91 |
Exercisable options | ' |
Number of shares at the end of the period | 73,134 |
Weighted average exercise price (in dollars per share) | $7.86 |
$8.76-$9.95 | ' |
Information related to options | ' |
Range of exercise prices, low end of the range (in dollars per share) | $8.76 |
Range of exercise prices, high end of the range (in dollars per share) | $9.95 |
Outstanding Options | ' |
Number of shares at the end of the period | 33,660 |
Weighted average remaining term | '10 months 24 days |
Weighted average exercise price (in dollars per share) | $9.74 |
Exercisable options | ' |
Number of shares at the end of the period | 33,660 |
Weighted average exercise price (in dollars per share) | $9.74 |
$9.96-$12.04 | ' |
Information related to options | ' |
Range of exercise prices, low end of the range (in dollars per share) | $9.96 |
Range of exercise prices, high end of the range (in dollars per share) | $12.04 |
Outstanding Options | ' |
Number of shares at the end of the period | 164,087 |
Weighted average remaining term | '5 years 7 days |
Weighted average exercise price (in dollars per share) | $10.93 |
Exercisable options | ' |
Number of shares at the end of the period | 118,100 |
Weighted average exercise price (in dollars per share) | $10.62 |
STOCK_BASED_COMPENSATION_Detai2
STOCK BASED COMPENSATION (Details 3) (Restricted stock, USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Number of shares | ' | ' |
Nonvested, beginning of period (in shares) | 16,210 | 15,691 |
Restricted stock granted (in shares) | 8,382 | 10,947 |
Restricted stock vested (in shares) | -9,225 | -6,788 |
Restricted stock forfeited (in shares) | -2,031 | -520 |
Nonvested, end of period (in shares) | 13,336 | 19,330 |
Weighted average grant date fair value | ' | ' |
Nonvested, beginning of period (in dollars per share) | $7.70 | $7.41 |
Restricted stock granted (in dollars per share) | $12.04 | $8 |
Restricted stock vested (in dollars per share) | $7.52 | $7.34 |
Restricted stock forfeited (in dollars per share) | $9.44 | $8 |
Nonvested, end of period (in dollars per share) | $10.29 | $7.75 |
Additional disclosures | ' | ' |
Total fair value of shares vested (in dollars) | $69,347 | $49,853 |
Intrinsic value of outstanding restricted stock awards where the market value exceeds the exercise price (in dollars) | 252,457 | 212,823 |
Intrinsic value of vested restricted stock awards where the market value exceeds the exercise price (in dollars) | $73,488 | $74,736 |
12/31/13 | ' | ' |
Number of shares | ' | ' |
Nonvested, end of period (in shares) | 3,900 | ' |
1/27/14 | ' | ' |
Number of shares | ' | ' |
Nonvested, end of period (in shares) | 3,725 | ' |
1/26/15 | ' | ' |
Number of shares | ' | ' |
Nonvested, end of period (in shares) | 1,969 | ' |
2/27/16 | ' | ' |
Number of shares | ' | ' |
Nonvested, end of period (in shares) | 3,742 | ' |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Assets and liabilities measured at fair value | ' | ' |
Available-for-sale | $181,527,632 | $171,541,222 |
Available-for-sale, U.S. government agency | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available-for-sale | 45,791,613 | 28,570,971 |
Available-for-sale, Municipal securities | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available-for-sale | 60,053,247 | 63,853,649 |
Available-for-sale, FHLMC MBS | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available-for-sale | 5,512,629 | 6,689,531 |
Available-for-sale, FNMA MBS | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available-for-sale | 19,497,978 | 18,459,778 |
Available-for-sale, GNMA MBS | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available-for-sale | 42,069,923 | 51,611,711 |
SBA loan pools | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available-for-sale | 7,352,329 | 1,104,332 |
Other Observable Inputs (Level 2) | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available-for-sale | 181,528,000 | 171,541,000 |
Carrying Value | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available-for-sale | 181,528,000 | 171,541,000 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Assets | 1,511,000 | 1,609,000 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Available-for-sale, Treasury Securities and Sallie Mae | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available-for-sale | 1,511,000 | 1,609,000 |
Recurring basis | Other Observable Inputs (Level 2) | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Assets | 180,278,000 | 170,290,000 |
Recurring basis | Other Observable Inputs (Level 2) | Available-for-sale, U.S. government agency | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available-for-sale | 45,792,000 | 28,570,000 |
Recurring basis | Other Observable Inputs (Level 2) | Available-for-sale, Municipal securities | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available-for-sale | 60,053,000 | 63,854,000 |
Recurring basis | Other Observable Inputs (Level 2) | Available-for-sale, FHLMC MBS | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available-for-sale | 5,513,000 | 6,690,000 |
Recurring basis | Other Observable Inputs (Level 2) | Available-for-sale, FNMA MBS | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available-for-sale | 19,498,000 | 18,460,000 |
Recurring basis | Other Observable Inputs (Level 2) | Available-for-sale, GNMA MBS | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available-for-sale | 42,070,000 | 51,612,000 |
Recurring basis | Other Observable Inputs (Level 2) | SBA loan pools | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available-for-sale | 7,352,000 | 1,104,000 |
Recurring basis | Carrying Value | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Assets | 181,789,000 | 171,899,000 |
Recurring basis | Carrying Value | Available-for-sale, Treasury Securities and Sallie Mae | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available-for-sale | 1,511,000 | 1,609,000 |
Recurring basis | Carrying Value | Available-for-sale, U.S. government agency | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available-for-sale | 45,792,000 | 28,570,000 |
Recurring basis | Carrying Value | Available-for-sale, Municipal securities | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available-for-sale | 60,053,000 | 63,854,000 |
Recurring basis | Carrying Value | Available-for-sale, FHLMC MBS | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available-for-sale | 5,513,000 | 6,690,000 |
Recurring basis | Carrying Value | Available-for-sale, FNMA MBS | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available-for-sale | 19,498,000 | 18,460,000 |
Recurring basis | Carrying Value | Available-for-sale, GNMA MBS | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available-for-sale | 42,070,000 | 51,612,000 |
Recurring basis | Carrying Value | SBA loan pools | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available-for-sale | $7,352,000 | $1,104,000 |
FAIR_VALUE_MEASUREMENTS_Detail1
FAIR VALUE MEASUREMENTS (Details 2) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
item | ||
Assets and liabilities measured at fair value | ' | ' |
Impaired Loans | $3,354,018 | $7,103,097 |
Additional disclosures | ' | ' |
Number of components in which the other real estate owned were segmented | 2 | ' |
Legacy | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Impaired Loans | 2,368,927 | 2,316,070 |
Acquired | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Impaired Loans | 985,091 | 4,787,027 |
Significant Unobservable Inputs (Level 3) | ' | ' |
Additional disclosures | ' | ' |
Period over which appraisal evaluations, offers to purchase and/or appraisals were obtained from an outside third party | '12 months | ' |
Significant Unobservable Inputs (Level 3) | Minimum | ' | ' |
Additional disclosures | ' | ' |
Discounts (as a percent) | 0.00% | ' |
Significant Unobservable Inputs (Level 3) | Maximum | ' | ' |
Additional disclosures | ' | ' |
Discounts (as a percent) | 10.00% | ' |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Impaired Loans | 3,083,000 | 7,103,000 |
Other real estate owned | 5,909,000 | 3,719,000 |
Assets | 8,992,000 | 10,822,000 |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | Legacy | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Impaired Loans | 2,344,000 | 2,316,000 |
Other real estate owned | 725,000 | 1,651,000 |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | Acquired | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Impaired Loans | 739,000 | 4,787,000 |
Other real estate owned | 5,184,000 | 2,068,000 |
Nonrecurring basis | Carrying Value | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Impaired Loans | 3,083,000 | 7,103,000 |
Other real estate owned | 5,909,000 | 3,719,000 |
Assets | 8,992,000 | 10,822,000 |
Nonrecurring basis | Carrying Value | Legacy | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Impaired Loans | 2,344,000 | 2,316,000 |
Other real estate owned | 725,000 | 1,651,000 |
Nonrecurring basis | Carrying Value | Acquired | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Impaired Loans | 739,000 | 4,787,000 |
Other real estate owned | $5,184,000 | $2,068,000 |
FAIR_VALUE_MEASUREMENTS_Detail2
FAIR VALUE MEASUREMENTS (Details 3) (USD $) | Sep. 30, 2013 | 10-May-13 | Dec. 31, 2012 |
Assets: | ' | ' | ' |
Loans held-for-sale | $22,611,845 | ' | $0 |
Investment securities - available for sale at fair value | 181,527,632 | ' | 171,541,222 |
Bank Owned Life Insurance | 30,357,357 | 12,986,817 | 16,869,307 |
Accrued interest receivable | 3,256,311 | ' | 2,639,483 |
Liabilities: | ' | ' | ' |
Non-interest bearing | 223,503,418 | 10,863,874 | 188,895,263 |
Interest bearing | 761,869,410 | 205,330,841 | 546,562,555 |
Accrued interest payable | 250,164 | 246,416 | 311,735 |
Total Estimated Fair Value | ' | ' | ' |
Assets: | ' | ' | ' |
Cash and cash equivalents | 50,993,000 | ' | 28,691,000 |
Loans receivable, net | 823,782,000 | ' | 599,320,000 |
Loans held-for-sale | 22,585,000 | ' | ' |
Investment securities - available for sale at fair value | 181,528,000 | ' | 171,541,000 |
Equity securities at cost | 5,851,000 | ' | 3,615,000 |
Bank Owned Life Insurance | 30,357,000 | ' | 16,869,000 |
Accrued interest receivable | 3,296,000 | ' | 2,639,000 |
Liabilities: | ' | ' | ' |
Non-interest bearing | 223,503,000 | ' | 188,896,000 |
Interest bearing | 763,967,000 | ' | 554,778,000 |
Short term borrowings | 56,204,000 | ' | 37,905,000 |
Long term borrowings | 6,119,000 | ' | 6,488,000 |
Accrued interest payable | 250,000 | ' | 547,000 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ' |
Assets: | ' | ' | ' |
Cash and cash equivalents | 50,993,000 | ' | 28,691,000 |
Significant Other Observable Inputs (Level 2) | ' | ' | ' |
Assets: | ' | ' | ' |
Loans held-for-sale | 22,612,000 | ' | ' |
Investment securities - available for sale at fair value | 181,528,000 | ' | 171,541,000 |
Equity securities at cost | 5,851,000 | ' | 3,615,000 |
Bank Owned Life Insurance | 30,357,000 | ' | 16,869,000 |
Accrued interest receivable | ' | ' | 1,031,000 |
Liabilities: | ' | ' | ' |
Non-interest bearing | 223,503,000 | ' | 188,896,000 |
Interest bearing | 763,967,000 | ' | 554,778,000 |
Short term borrowings | 56,204,000 | ' | 37,905,000 |
Long term borrowings | 6,119,000 | ' | 6,488,000 |
Accrued interest payable | 250,000 | ' | 547,000 |
Significant Other Unobservable Inputs (Level 3) | ' | ' | ' |
Assets: | ' | ' | ' |
Loans receivable, net | 823,782,000 | ' | 599,320,000 |
Accrued interest receivable | 3,296,000 | ' | 1,608,000 |
Carrying Amount | ' | ' | ' |
Assets: | ' | ' | ' |
Cash and cash equivalents | 50,993,000 | ' | 28,691,000 |
Loans receivable, net | 810,316,000 | ' | 595,145,000 |
Loans held-for-sale | 22,585,000 | ' | ' |
Investment securities - available for sale at fair value | 181,528,000 | ' | 171,541,000 |
Equity securities at cost | 5,851,000 | ' | 3,615,000 |
Bank Owned Life Insurance | 30,357,000 | ' | 16,869,000 |
Accrued interest receivable | 3,296,000 | ' | 2,639,000 |
Liabilities: | ' | ' | ' |
Non-interest bearing | 223,503,000 | ' | 188,896,000 |
Interest bearing | 781,969,000 | ' | 546,563,000 |
Short term borrowings | 56,204,000 | ' | 37,905,000 |
Long term borrowings | 6,396,000 | ' | 6,192,000 |
Accrued interest payable | $259,000 | ' | $547,000 |