Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 1-May-14 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'OLD LINE BANCSHARES INC | ' |
Entity Central Index Key | '0001253317 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 10,785,370 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Assets | ' | ' |
Cash and due from banks | $54,197,169 | $28,316,351 |
Interest bearing accounts | 30,383 | 30,375 |
Federal funds sold | 178,806 | 711,574 |
Total cash and cash equivalents | 54,406,358 | 29,058,300 |
Investment securities available for sale-at fair value | 172,094,347 | 172,169,776 |
Loans held for sale, fair value of $1,682,580 and $2,074,924 | 1,646,330 | 2,014,711 |
Loans held for investment (net of allowance for loan losses of $4,881,939 and $4,929,213, respectively) | 849,429,721 | 847,248,590 |
Equity securities at cost | 4,304,197 | 5,669,807 |
Premises and equipment | 34,661,659 | 35,215,868 |
Accrued interest receivable | 3,131,042 | 3,432,924 |
Deferred income taxes | 20,639,961 | 21,868,076 |
Bank owned life insurance | 30,787,554 | 30,577,187 |
Other real estate owned | 4,593,154 | 4,311,342 |
Goodwill | 7,793,665 | 7,793,665 |
Core deposit intangible | 5,058,951 | 5,287,501 |
Other assets | 4,390,527 | 2,575,377 |
Total assets | 1,192,937,466 | 1,167,223,124 |
Deposits | ' | ' |
Non-interest bearing | 234,512,077 | 228,733,624 |
Interest bearing | 773,640,266 | 745,625,862 |
Total deposits | 1,008,152,343 | 974,359,486 |
Short term borrowings | 38,193,867 | 49,530,125 |
Long term borrowings | 6,071,856 | 6,093,074 |
Accrued pension | 4,996,120 | 4,921,241 |
Other liabilities | 5,975,472 | 5,769,880 |
Total liabilities | 1,063,389,658 | 1,040,673,806 |
Stockholders' equity | ' | ' |
Common stock, par value $0.01 per share; 25,000,000 shares authorized; 10,785,370 and 10,777,113 shares issued and outstanding in 2014 and 2013, respectively | 107,854 | 107,772 |
Additional paid-in capital | 104,748,891 | 104,622,171 |
Retained earnings | 26,283,617 | 24,879,275 |
Accumulated other comprehensive loss | -1,871,087 | -3,359,823 |
Total Old Line Bancshares, Inc. stockholders' equity | 129,269,275 | 126,249,395 |
Non-controlling interest | 278,533 | 299,923 |
Total stockholders' equity | 129,547,808 | 126,549,318 |
Total liabilities and stockholders' equity | $1,192,937,466 | $1,167,223,124 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Consolidated Balance Sheets | ' | ' |
Loans held for sale, fair value (in dollars) | $1,682,580 | $2,074,924 |
Loans held for investment, allowance for loan losses (in dollars) | $4,881,939 | $4,929,213 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, authorized shares | 25,000,000 | 25,000,000 |
Common stock, shares issued | 10,785,370 | 10,777,113 |
Common stock, shares outstanding | 10,785,370 | 10,777,113 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Interest Income | ' | ' |
Loans, including fees | $10,333,973 | $7,831,823 |
U.S. treasury securities | 832 | 1,754 |
U.S. government agency securities | 150,955 | 82,430 |
Mortgage backed securities | 377,872 | 388,256 |
Municipal securities | 434,988 | 469,668 |
Federal funds sold | 389 | 601 |
Other | 72,861 | 42,544 |
Total interest income | 11,371,870 | 8,817,076 |
Interest expense | ' | ' |
Deposits | 894,303 | 857,139 |
Borrowed funds | 118,276 | 112,487 |
Total interest expense | 1,012,579 | 969,626 |
Net interest income | 10,359,291 | 7,847,450 |
Provision for loan losses | 269,769 | 200,000 |
Net interest income after provision for loan losses | 10,089,522 | 7,647,450 |
Non-interest income | ' | ' |
Service charges on deposit accounts | 451,596 | 300,741 |
Gain on sales or calls of investment securities | ' | 631,429 |
Earnings on bank owned life insurance | 243,607 | 133,228 |
Gain (loss) on disposal of assets | 96,993 | -85,561 |
Rental Income | 200,537 | ' |
Gain on sale of loans | 106,720 | ' |
Other fees and commissions | 292,672 | 247,683 |
Total non-interest income | 1,392,125 | 1,227,520 |
Non-interest expense | ' | ' |
Salaries and benefits | 4,873,634 | 3,232,677 |
Occupancy and equipment | 1,586,777 | 1,068,867 |
Data processing | 307,160 | 239,057 |
FDIC insurance and State of Maryland assessments | 218,521 | 155,243 |
Merger and integration | 29,167 | 240,485 |
Core deposit premium amortization | 228,550 | 177,582 |
(Gain) loss on sales of other real estate owned | -203,068 | 200,454 |
OREO expense | 83,066 | 314,165 |
Other operating | 1,852,736 | 1,451,365 |
Total non-interest expense | 8,976,543 | 7,079,895 |
Income before income taxes | 2,505,104 | 1,795,075 |
Income tax expense | 690,737 | 521,722 |
Net income | 1,814,367 | 1,273,353 |
Less: Net loss attributable to the non-controlling interest | -21,390 | -13,095 |
Net income available to common stockholders | $1,835,757 | $1,286,448 |
Basic earnings per common share (in dollars per share) | $0.17 | $0.19 |
Diluted earnings per common share (in dollars per share) | $0.17 | $0.19 |
Dividend per common share (in dollars per share) | $0.04 | $0.04 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Consolidated Statements of Comprehensive Income | ' | ' |
Net income | $1,814,367 | $1,273,353 |
Other comprehensive income (loss): | ' | ' |
Unrealized gain (loss) on securities available for sale, net of taxes of $969,750 and ($564,698), respectively | 1,488,736 | -617,843 |
Reclassification adjustment for realized gain on securities available for sale included in net income, gross of taxes of $0 and $249,067, respectively | ' | -631,429 |
Other comprehensive income (loss) | 1,488,736 | -1,249,272 |
Comprehensive income | 3,303,103 | 24,081 |
Comprehensive (loss) attributable to the non-controlling interest | -21,390 | -13,095 |
Comprehensive income available to common stockholders | $3,324,493 | $37,176 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Consolidated Statements of Comprehensive Income | ' | ' |
Unrealized gain (loss) on securities available for sale, taxes | $969,750 | ($564,698) |
Reclassification adjustment for realized gain on securities available for sale included in net income, taxes | $0 | $249,067 |
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, 2013 | $126,549,318 | $107,772 | $104,622,171 | $24,879,275 | ($3,359,823) | $299,923 |
Balance (in shares) at Dec. 31, 2013 | 10,777,113 | 10,777,113 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Net income attributable to Old Line Bancshares, Inc. | 1,835,757 | ' | ' | 1,835,757 | ' | ' |
Unrealized loss on securities available for sale, net of income tax benefit of $969,750 | 1,488,736 | ' | ' | ' | 1,488,736 | ' |
Net loss attributable to non-controlling interest | -21,390 | ' | ' | ' | ' | -21,390 |
Stock based compensation awards | 126,802 | ' | 126,802 | ' | ' | ' |
Restricted stock issued | ' | 82 | -82 | ' | ' | ' |
Restricted stock issued (in shares) | ' | 8,257 | ' | ' | ' | ' |
Common stock cash dividend $0.04 per share | -431,415 | ' | ' | -431,415 | ' | ' |
Balance at Mar. 31, 2014 | $129,547,808 | $107,854 | $104,748,891 | $26,283,617 | ($1,871,087) | $278,533 |
Balance (in shares) at Mar. 31, 2014 | 10,785,370 | 10,785,370 | ' | ' | ' | ' |
Consolidated_Statement_of_Chan1
Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Consolidated Statement of Changes in Stockholders' Equity | ' |
Unrealized loss on securities available for sale, income tax benefit | $969,750 |
Dividend per common share (in dollars per share) | $0.04 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Cash flows from operating activities | ' | ' |
Interest received | $11,959,298 | $9,287,947 |
Fees and commissions received | 774,977 | 488,051 |
Interest paid | -1,035,405 | -1,001,454 |
Cash paid to suppliers and employees | -9,973,914 | -5,450,138 |
Loans originated for sale | -8,373,541 | ' |
Proceeds from sale of loans originated for sale | 8,111,880 | ' |
Income taxes paid | -59,982 | ' |
Net cash provided by operating activities | 1,403,313 | 3,324,406 |
Cash flows from investing activities | ' | ' |
Purchase of investment securities available for sale | -1,502,344 | -7,691,835 |
Proceeds from disposal of investment securities | ' | ' |
Available for sale at maturity or call | 3,925,995 | 9,387,687 |
Available for sale sold | ' | 13,939,926 |
Loans made, net of principal collected | -2,328,978 | -16,943,810 |
Proceeds from sale of other real estate owned | 512,878 | 725,485 |
Redemption of equity securities | 1,273,527 | 494,301 |
Purchase of premises and equipment | 59,701 | -263,775 |
Net cash provided by investing activities | 1,940,779 | -352,021 |
Net increase (decrease) in | ' | ' |
Time deposits | -4,549,170 | 6,336,720 |
Other deposits | 38,342,027 | 6,707,765 |
Short term borrowings | -11,336,258 | -6,395,360 |
Long term borrowings | -21,218 | -25,562 |
Cash dividends paid-common stock | -431,415 | -274,153 |
Net cash used in financing activities | 22,003,966 | 6,349,410 |
Net increase in cash and cash equivalents | 25,348,058 | 9,321,795 |
Cash and cash equivalents at beginning of period | 29,058,300 | 28,690,761 |
Cash and cash equivalents at end of period | 54,406,358 | 38,012,556 |
Reconciliation of net income to net cash provided by operating activities | ' | ' |
Net income | 1,814,367 | 1,273,353 |
Adjustments to reconcile net income to net cash provided by operating activities | ' | ' |
Depreciation and amortization | 591,501 | 398,291 |
Provision for loan losses | 269,769 | 200,000 |
Change in deferred loan fees net of costs | 23,218 | 38,145 |
(Gain)/loss on sales or calls of securities | ' | -631,429 |
Amortization of premiums and discounts | 262,328 | 304,996 |
Change in loans held for sale | -368,381 | ' |
(Gain)/loss on sales of other real estate owned | -203,068 | 200,454 |
Gain on the sale of equity securities | -96,993 | ' |
Write down of other real estate owned | ' | 66,600 |
(Gain)/loss on sale of fixed assets | ' | 85,561 |
Amortization of intangible | 228,550 | 177,582 |
Deferred income taxes | 198,383 | -27,467 |
Stock based compensation awards | 126,802 | 83,662 |
Increase (decrease) in | ' | ' |
Accrued interest payable | -22,826 | -31,828 |
Income tax payable | 432,372 | 549,189 |
Accrued pension | 74,879 | 74,885 |
Other liabilities | -203,954 | 80,270 |
Decrease (increase) in | ' | ' |
Accrued interest receivable | 301,882 | 127,730 |
Bank owned life insurance | -210,367 | -108,040 |
Other assets | -1,815,149 | 462,452 |
Net cash provided by operating activities | 1,403,313 | 3,324,406 |
Supplemental Disclosure: | ' | ' |
Loans transferred to other real estate owned | $591,622 | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2014 | |
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 . 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, Montgomery, 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 March 31, 2014 and 2013 are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles (US GAAP); 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, 2013 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, 2013. We have made no significant changes to Old Line Bancshares’ accounting policies as disclosed in the Form 10-K. | |
Use of estimates-The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. These estimates and assumptions may affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. A material estimate that is particularly susceptible to significant change in the near term relates to the determination of the allowance for loan losses. | |
Reclassifications-We have made certain reclassifications to the 2013 financial presentation to conform to the 2014 presentation. These reclassifications did not change net income or stockholders’ equity. | |
Recent Accounting Pronouncements-In January 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-04, “Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure.” The objective of this guidance is to clarify when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. ASU No. 2014-04 states that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, ASU No. 2014-04 requires interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. ASU No. 2014-04 is effective for interim and annual reporting periods beginning after December 15, 2014. The adoption of ASU No. 2014-04 is not expected to have a material impact on our consolidated financial statements. |
POINTER_RIDGE_OFFICE_INVESTMEN
POINTER RIDGE OFFICE INVESTMENT, LLC | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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. | ||||||||
Marrch 31, | December 31, | |||||||
Balance Sheets | 2014 | 2013 | ||||||
Current assets | $ | 255,629 | $ | 286,206 | ||||
Non-current assets | 6,573,777 | 6,622,560 | ||||||
Liabilities | 6,086,650 | 6,108,972 | ||||||
Equity | 742,756 | 799,794 | ||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Statements of Income | ||||||||
Revenue | $ | 238,991 | $ | 224,367 | ||||
Expenses | 296,030 | 259,286 | ||||||
Net loss | $ | (57,039 | ) | $ | (34,919 | ) |
ACQUISITION_OF_WSB_HOLDINGS_IN
ACQUISITION OF WSB HOLDINGS, INC. | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
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 | — | (d) | 886,413 | |||||||||
Deferred income taxes | 7,396,519 | 4,005,790 | 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 | 118,066 | 3,097,793 | ||||||||||
Total liabilities | $ | 274,465,406 | $ | 5,324,086 | $ | 279,789,492 | |||||||
Net identifiable assets acquired over (under) liabilities assumed | 53,822,703 | (23,335,516 | ) | 30,487,187 | |||||||||
Goodwill | — | 7,159,875 | (j) | 7,159,875 | |||||||||
Net assets acquired over liabilities assumed | 53,822,703 | (16,175,641 | ) | 37,647,062 | |||||||||
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. | |||||||||||||
(j) Within the measurement period, goodwill was increased $946,241. | |||||||||||||
We allocated the purchase price for WSB Holdings as follows: | |||||||||||||
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 stockholders | 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 | |||||||||||
Expenses not accrued for and paid by Old Line Bank | $ | (118,066 | ) | ||||||||||
Final purchase price for WSB acquisition | $ | 37,647,062 | |||||||||||
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 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. There was no goodwill adjustment for the period ended March 31, 2014. |
INVESTMENT_SECURITIES
INVESTMENT SECURITIES | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
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 | |||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||
Available for sale | ||||||||||||||||||||
U. S. treasury | $ | 1,502,168 | $ | — | $ | (2,918 | ) | $ | 1,499,250 | |||||||||||
U.S. government agency | 43,738,979 | 1,974 | (1,641,614 | ) | 42,099,339 | |||||||||||||||
Municipal securities | 61,085,196 | 838,679 | (1,334,774 | ) | 60,589,101 | |||||||||||||||
Mortgage backed securities: | ||||||||||||||||||||
FHLMC certificates | 4,189,100 | 72,304 | (54,181 | ) | 4,207,223 | |||||||||||||||
FNMA certificates | 18,510,992 | 192,218 | (365,510 | ) | 18,337,700 | |||||||||||||||
GNMA certificates | 39,166,237 | 126,405 | (724,533 | ) | 38,568,109 | |||||||||||||||
SBA loan pools | 6,991,572 | — | (197,947 | ) | 6,793,625 | |||||||||||||||
$ | 175,184,244 | $ | 1,231,580 | $ | (4,321,477 | ) | $ | 172,094,347 | ||||||||||||
December 31, 2013 | ||||||||||||||||||||
Available for sale | ||||||||||||||||||||
U. S. treasury | $ | 1,249,831 | $ | 156 | $ | — | $ | 1,249,987 | ||||||||||||
U.S. government agency | 42,942,107 | — | (2,206,975 | ) | 40,735,132 | |||||||||||||||
Municipal securities | 61,190,506 | 601,327 | (2,525,198 | ) | 59,266,635 | |||||||||||||||
Mortgage backed securities | ||||||||||||||||||||
FHLMC certificates | 5,214,835 | 75,950 | (84,819 | ) | 5,205,966 | |||||||||||||||
FNMA certificates | 19,055,521 | 161,209 | (513,728 | ) | 18,703,002 | |||||||||||||||
GNMA certificates | 40,878,372 | 127,750 | (1,084,896 | ) | 39,921,226 | |||||||||||||||
SBA loan pools | 7,339,052 | — | (251,224 | ) | 7,087,828 | |||||||||||||||
$ | 177,870,224 | $ | 966,392 | $ | (6,666,840 | ) | $ | 172,169,776 | ||||||||||||
As of March 31, 2014 and December 31, 2013, securities with unrealized losses segregated by length of impairment were as follows: | ||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||
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. Treasury | $ | 1,499,250 | $ | 2,918 | $ | — | $ | — | $ | 1,499,250 | $ | 2,918 | ||||||||
U.S. government agency | 39,860,865 | 1,572,301 | 1,437,900 | 69,313 | 41,298,765 | 1,641,614 | ||||||||||||||
Municipal securities | 14,604,173 | 394,847 | 16,849,269 | 939,927 | 31,453,442 | 1,334,774 | ||||||||||||||
Mortgage backed securities | 37,450,572 | 936,673 | 6,947,791 | 207,551 | 44,398,363 | 1,144,224 | ||||||||||||||
SBA loan pools | 6,793,625 | 197,947 | — | — | 6,793,625 | 197,947 | ||||||||||||||
Total unrealized losses less than 12 months | $ | 100,208,485 | $ | 3,104,686 | $ | 25,234,960 | $ | 1,216,791 | $ | 125,443,445 | $ | 4,321,477 | ||||||||
December 31,2013 | ||||||||||||||||||||
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 | $ | 39,324,082 | $ | 2,107,099 | $ | 1,411,050 | $ | 99,876 | $ | 40,735,132 | $ | 2,206,975 | ||||||||
Municipal securities | 30,367,222 | 1,654,439 | 9,190,578 | 870,759 | 39,557,800 | 2,525,198 | ||||||||||||||
Mortgage backed securities | 41,518,287 | 1,456,886 | 4,823,932 | 226,557 | 46,342,219 | 1,683,443 | ||||||||||||||
SBA loan pools | 7,087,828 | 251,224 | — | — | 7,087,828 | 251,224 | ||||||||||||||
Total unrealized losses less than 12 months | $ | 118,297,419 | $ | 5,469,648 | $ | 15,425,560 | $ | 1,197,192 | $ | 133,722,979 | $ | 6,666,840 | ||||||||
At March 31, 2014 and December 31, 2013, we had 45 and 26 investment securities, respectively, in an unrealized loss position greater than the 12 months time frame and 165 and 120 securities, respectively, in an unrealized loss position less than the 12 months time frame. We consider all unrealized losses on securities as of March 31, 2014 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 March 31, 2014, 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 realized gains or losses for the sale or call of investment securities for the three month period ending March 31, 2014 compared to $631,429 gross gains and no gross losses for the three month period ending March 31, 2013. During the three month period ended March 31, 2014, we received $3.9 million proceeds from sales, maturities or calls of investment securities and principal pay-downs compared to $23,327,613 for the same three month period last year. | ||||||||||||||||||||
Contractual maturities and pledged securities at March 31, 2014 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. We received approximately $2.7 million in principal pay-downs during the three months ending March 31, 2014. | ||||||||||||||||||||
Available for Sale | ||||||||||||||||||||
March 31, 2014 | Amortized | Fair | ||||||||||||||||||
cost | value | |||||||||||||||||||
Maturing | ||||||||||||||||||||
Within one year | $ | 1,734,062 | $ | 1,734,124 | ||||||||||||||||
Over one to five years | 10,194,377 | 10,099,615 | ||||||||||||||||||
Over five to ten years | 47,163,392 | 45,862,144 | ||||||||||||||||||
Over ten years | 116,092,413 | 114,398,464 | ||||||||||||||||||
$ | 175,184,244 | $ | 172,094,347 | |||||||||||||||||
Pledged securities | $ | 44,268,035 | $ | 37,937,586 |
LOANS
LOANS | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
LOANS | ' | |||||||||||||||||||
LOANS | ' | |||||||||||||||||||
5. LOANS | ||||||||||||||||||||
Major classifications of loans held for investment are as follows: | ||||||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||||||
Legacy (1) | Acquired | Total | Legacy (1) | Acquired | Total | |||||||||||||||
Commercial Real Estate | ||||||||||||||||||||
Owner Occupied | $ | 167,003,364 | $ | 29,712,784 | $ | 196,716,148 | $ | 163,105,356 | $ | 30,102,731 | $ | 193,208,087 | ||||||||
Investment | 172,072,391 | 50,957,428 | 223,029,819 | 162,188,671 | 54,091,676 | 216,280,347 | ||||||||||||||
Hospitality | 68,063,766 | 8,464,828 | 76,528,594 | 67,291,387 | 8,546,239 | 75,837,626 | ||||||||||||||
Land and A&D | 36,968,752 | 6,470,951 | 43,439,703 | 40,595,806 | 8,399,178 | 48,994,984 | ||||||||||||||
Residential Real Estate | ||||||||||||||||||||
First Lien-Investment | 45,344,442 | 27,826,424 | 73,170,866 | 45,294,434 | 28,364,096 | 73,658,530 | ||||||||||||||
First Lien-Owner Occupied | 15,677,156 | 59,987,174 | 75,664,330 | 13,909,939 | 62,247,502 | 76,157,441 | ||||||||||||||
Residential Land and A&D | 20,172,345 | 13,169,636 | 33,341,981 | 19,845,291 | 13,724,942 | 33,570,233 | ||||||||||||||
HELOC and Jr. Liens | 18,909,513 | 3,295,273 | 22,204,786 | 18,302,560 | 3,359,063 | 21,661,623 | ||||||||||||||
Commercial and Industrial | 88,511,195 | 10,172,422 | 98,683,617 | 89,629,043 | 11,161,347 | 100,790,390 | ||||||||||||||
Consumer | 9,759,318 | 775,542 | 10,534,860 | 10,127,525 | 870,843 | 10,998,368 | ||||||||||||||
642,482,242 | 210,832,462 | 853,314,704 | 630,290,012 | 220,867,617 | 851,157,629 | |||||||||||||||
Allowance for loan losses | (4,419,133 | ) | (462,806 | ) | (4,881,939 | ) | (4,397,552 | ) | (531,661 | ) | (4,929,213 | ) | ||||||||
Deferred loan costs, net | 998,266 | (1,310 | ) | 996,956 | 1,021,167 | (993 | ) | 1,020,174 | ||||||||||||
$ | 639,061,375 | $ | 210,368,346 | $ | 849,429,721 | $ | 626,913,627 | $ | 220,334,963 | $ | 847,248,590 | |||||||||
(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, the parent company of WSB, in May 2013, 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, Old Line 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 | ||||||||||||||||||||
We finance commercial real estate for our clients, for owner occupied and investment properties. Commercial real estate loans totaled $539.7 million and $534.3 million at March 31, 2014 and December 31, 2013, respectively. This lending has involved loans secured by owner-occupied commercial buildings for office, storage and warehouse space, as well as non-owner occupied commercial buildings. Our underwriting criteria for commercial real estate loans include maximum loan-to-value ratios, debt coverage ratios, secondary sources of repayments, guarantor requirements, net worth requirements and quality of cash flows. Loans secured by commercial real estate may be large in size and may involve a greater degree of risk than one-to-four family residential mortgage loans. Payments on such loans are often dependent of successful operation or management of the properties. We will generally finance owner occupied commercial real estate at a maximum loan to value of 85% and investor real estate at a maximum loan to value of 75%. | ||||||||||||||||||||
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 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. | ||||||||||||||||||||
At March 31, 2014, we had approximately $76.5 million of commercial real estate loans outstanding to the hospitality industry. An internal 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. A portion of our portfolio is made up of home equity loans to individuals with a loan to value not exceeding 80%. We also offer fixed rate home improvement loans. Our home equity and home improvement loan portfolio gives us 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 home equity loans and lines of credit with a security interest in the borrower’s primary or secondary residence. Our initial underwriting includes an analysis of the borrower’s debt/income ratio which generally may not exceed 43%. We also consider the borrower’s length of employment and prior credit history in the approval process. We require borrowers to have a credit score of at least 660. We do not have any subprime residential real estate loans. | ||||||||||||||||||||
We obtain detailed loan applications to determine a borrower’s ability to repay and verify the more significant items on these applications through credit reports, financial statements and confirmations. We also require appraisals of collateral and title insurance on secured real estate loans. Most borrowers must establish a mortgage escrow account for items such as real estate taxes, governmental charges and hazard and private mortgage insurance premiums. | ||||||||||||||||||||
A portion of this segment of the loan portfolio consists of funds advanced for construction of custom single family residences (where the home buyer is the borrower), financing to builders for the construction of pre-sold homes, and loans for multi-family housing. 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. The vast majority of these loans are concentrated in our primary market area. | ||||||||||||||||||||
Construction lending 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 these risks, we generally limit loan amounts to 80% or less of appraised values, obtain first lien positions on the property securing the loan, and adhere to established underwriting procedures. In addition, we generally offer real estate construction financing only to experienced builders, commercial entities or individuals who have demonstrated the ability to obtain a permanent loan “take-out” (conversion to a permanent mortgage upon completion of the project). 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. | ||||||||||||||||||||
Under our loan approval policy, all residential real estate loans approved must comply with federal regulations. Generally, we will make residential mortgage loans in amounts up to the limits established from time to time by Fannie Mae and Freddie Mac for secondary market resale purposes. This amount for single-family residential loans currently varies from $417,000 up to a maximum of $625,500 for certain high-cost designated areas. We also make residential mortgage loans up to limits established by the Federal Housing Administration, which currently is $625,500. The Washington, D.C. and Baltimore areas are both considered high-cost designated areas. We will, however, make loans in excess of these amounts if we believe that we can sell the loans in the secondary market or that the loans should be held in our portfolio. For loans sold in the secondary market, we require a credit score of at least 640 with some exceptions to 620 for Veterans. Loans sold in the secondary market are sold to investors on a servicing released basis and recorded as loans as held-for-sale. The premium is recorded in gain on sale of loans in non-interest income, net of commissions paid to the loan officers. | ||||||||||||||||||||
Commercial and Industrial Lending | ||||||||||||||||||||
Our commercial and industrial 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 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 have a higher degree of risk than residential mortgage loans because the availability of funds for repayment generally depends on the success of the business. They may also involve higher average balances and an increased difficulty monitoring. To help manage these risks, 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 usually 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. This category includes our luxury boat loans, which we made prior to 2008 and that remain in our portfolio. Consumer loans, however, are not a focus of our lending activities. 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. As a general guideline, the borrower’s total debt service should not exceed 40% of his or her gross income. | ||||||||||||||||||||
Consumer loans may present greater credit risk than residential mortgage loans because many consumer loans 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 loan may not be repaid. Also, various federal and state laws, including bankruptcy and insolvency laws, may limit the amount we can recover on such loans. However, in our opinion, many of these risks do not apply to the luxury boat portion of the loan portfolio due to the credit quality and liquidity of these borrowers. | ||||||||||||||||||||
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, Montgomery, Prince George’s and St. Mary’s Counties. The majority of our loan portfolio consists of commercial real estate loans and residential real estate loans. | ||||||||||||||||||||
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 March 31, 2014 and December 31, 2013. | ||||||||||||||||||||
Age Analysis of Past Due Loans | ||||||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||||||
Legacy | Acquired | Total | Legacy | Acquired | Total | |||||||||||||||
Current | $ | 633,426,455 | $ | 206,516,653 | $ | 839,943,108 | $ | 620,559,847 | $ | 214,086,692 | $ | 834,646,539 | ||||||||
Accruing past due loans: | ||||||||||||||||||||
30-89 days past due | ||||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||
Owner Occupied | 752,732 | — | 752,732 | 828,388 | 54,035 | 882,423 | ||||||||||||||
Investment | — | — | — | — | 534,694 | 534,694 | ||||||||||||||
Residential Real Estate: | ||||||||||||||||||||
First-Investment | 517,494 | 379,337 | 896,831 | 521,405 | 845,018 | 1,366,423 | ||||||||||||||
First-Owner Occupied | — | 1,774,279 | 1,774,279 | — | 2,584,408 | 2,584,408 | ||||||||||||||
Land and A&D | 269,137 | 736,341 | 1,005,478 | — | 35,162 | 35,162 | ||||||||||||||
Commercial | — | 86,196 | 86,196 | 224,322 | 396,215 | 620,537 | ||||||||||||||
Consumer | 83,559 | 990 | 84,549 | — | 14,108 | 14,108 | ||||||||||||||
Total 30-89 days past due | 1,622,922 | 2,977,143 | 4,600,065 | 1,574,115 | 4,463,640 | 6,037,755 | ||||||||||||||
90 or more days past due | ||||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||
Owner Occupied | — | 309,767 | 309,767 | — | 309,767 | 309,767 | ||||||||||||||
Residential Real Estate: | ||||||||||||||||||||
First-Owner Occupied | — | 167,792 | 167,792 | — | 429,144 | 429,144 | ||||||||||||||
Land and A&D | — | — | — | — | 915,649 | 915,649 | ||||||||||||||
Commercial | 218,272 | — | 218,272 | — | — | — | ||||||||||||||
Consumer | 12,132 | — | 12,132 | — | — | — | ||||||||||||||
Total 90 or more days past due | 230,404 | 477,559 | 707,963 | — | 1,654,560 | 1,654,560 | ||||||||||||||
Total accruing past due loans | 1,853,326 | 3,454,702 | 5,308,028 | 1,574,115 | 6,118,200 | 7,692,315 | ||||||||||||||
Recorded Investment Non-accruing loans: | ||||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||
Owner Occupied | 1,849,685 | — | 1,849,685 | 1,849,685 | — | 1,849,685 | ||||||||||||||
Investment | — | 380,265 | 380,265 | — | 376,050 | 376,050 | ||||||||||||||
Hospitality | 4,473,345 | — | 4,473,345 | 4,473,345 | — | 4,473,345 | ||||||||||||||
Residential Real Estate: | ||||||||||||||||||||
First-Investment | 120,478 | — | 120,478 | 123,183 | — | 123,183 | ||||||||||||||
First-Owner Occupied | — | 350,510 | 350,510 | 925,814 | 156,143 | 1,081,957 | ||||||||||||||
Land and A&D | — | 130,332 | 130,332 | — | 130,532 | 130,532 | ||||||||||||||
Commercial | 752,182 | — | 752,182 | 769,597 | — | 769,597 | ||||||||||||||
Consumer | 6,771 | — | 6,771 | 14,426 | — | 14,426 | ||||||||||||||
Total Recorded Investment | ||||||||||||||||||||
Non-accruing past due loans: | 7,202,461 | 861,107 | 8,063,568 | 8,156,050 | 662,725 | 8,818,775 | ||||||||||||||
Total Loans | $ | 642,482,242 | $ | 210,832,462 | $ | 853,314,704 | $ | 630,290,012 | $ | 220,867,617 | $ | 851,157,629 | ||||||||
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 March 31, 2014 and December 31, 2013. | ||||||||||||||||||||
Impaired Loans | ||||||||||||||||||||
Three months ended March 31, 2014 | ||||||||||||||||||||
Unpaid | Recorded | Related | Average | Interest | ||||||||||||||||
Principal | Investment | Allowance | Recorded | Income | ||||||||||||||||
Balance | Investment | Recognized | ||||||||||||||||||
Legacy | ||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||
Owner Occupied | $ | 2,120,282 | $ | 2,120,282 | $ | — | $ | 2,120,388 | $ | — | ||||||||||
Land and A&D | ||||||||||||||||||||
Residential Real Estate: | ||||||||||||||||||||
First-Investment | 120,478 | 120,478 | — | 121,760 | — | |||||||||||||||
Commercial | 752,182 | 752,182 | — | 763,018 | — | |||||||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||
Owner Occupied | — | — | — | — | — | |||||||||||||||
Investment | 1,351,595 | 1,351,595 | 135,160 | 1,356,616 | — | |||||||||||||||
Hospitality | 4,473,345 | 4,473,345 | 1,250,000 | 4,473,345 | — | |||||||||||||||
Land and A&D | 439,694 | 439,694 | 185,846 | 448,918 | ||||||||||||||||
Total legacy impaired | 9,257,576 | 9,257,576 | 1,571,006 | 9,284,045 | — | |||||||||||||||
Acquired (1) | ||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||
Land and A&D | 1,134,224 | — | — | 1,310,004 | — | |||||||||||||||
Residential Real Estate: | ||||||||||||||||||||
First-Owner Occupied | 541,394 | 515,826 | — | 543,027 | 4,552 | |||||||||||||||
Land and A&D | 232,027 | 232,027 | — | 232,027 | — | |||||||||||||||
Commercial | 86,813 | 86,813 | — | 87,114 | 741 | |||||||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||
Investment | 372,048 | 380,265 | 279,036 | 372,048 | — | |||||||||||||||
Residential Real Estate: | ||||||||||||||||||||
First-Owner Occupied | 351,600 | 350,510 | 100,000 | 351,600 | — | |||||||||||||||
Land and A&D | 131,031 | 130,332 | 83,770 | 131,031 | — | |||||||||||||||
Total acquired impaired | 2,849,137 | 1,695,773 | 462,806 | 3,026,851 | 5,293 | |||||||||||||||
Total impaired | $ | 12,106,713 | $ | 10,953,349 | $ | 2,033,812 | $ | 12,310,896 | $ | 5,293 | ||||||||||
(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, 2013 | ||||||||||||||||||||
Unpaid | Recorded | Related | Average | Interest | ||||||||||||||||
Principal | Investment | Allowance | Recorded | Income | ||||||||||||||||
Balance | Investment | Recognized | ||||||||||||||||||
Legacy | ||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||
Owner Occupied | $ | 1,849,685 | $ | 1,849,685 | $ | — | $ | 1,855,418 | $ | 70,711 | ||||||||||
Residential Real Estate: | ||||||||||||||||||||
First-Investment | 123,183 | 123,183 | — | 129,105 | — | |||||||||||||||
Commercial | 2,136,376 | 2,136,376 | — | 2,235,110 | 90,917 | |||||||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||
Owner Occupied | 274,516 | 274,516 | 137,258 | 282,630 | 18,177 | |||||||||||||||
Investment | 1,363,821 | 1,363,821 | 136,382 | 1,385,973 | 63,855 | |||||||||||||||
Hospitality | 4,473,345 | 4,473,345 | 1,250,000 | 4,491,435 | 105,772 | |||||||||||||||
Residential Real Estate: | ||||||||||||||||||||
First-Owner Occupied | 925,814 | 925,814 | 167,450 | 931,492 | 16,664 | |||||||||||||||
Commercial | 459,439 | 459,439 | 191,753 | 510,230 | 31,018 | |||||||||||||||
Consumer | 7,390 | 7,390 | 7,390 | 7,426 | 32 | |||||||||||||||
Total legacy impaired | 11,613,569 | 11,613,569 | 1,890,233 | 11,828,819 | 397,146 | |||||||||||||||
Acquired (1) | ||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||
Owner Occupied | 605,314 | 579,583 | — | 590,677 | 24,821 | |||||||||||||||
Residential Real Estate: | ||||||||||||||||||||
Land and A&D | 1,628,156 | 241,624 | — | 241,624 | — | |||||||||||||||
Commercial | 87,387 | 87,387 | — | 88,508 | 4,533 | |||||||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||
Investment | 372,047 | 376,050 | 279,037 | 376,047 | 17,509 | |||||||||||||||
Residential Real Estate: | ||||||||||||||||||||
First-Owner Occupied | 411,891 | 412,742 | 187,109 | 414,020 | 11,460 | |||||||||||||||
Land and A&D | 131,031 | 130,532 | 65,515 | 130,332 | 8,709 | |||||||||||||||
Total acquired impaired | 3,235,826 | 1,827,918 | 531,661 | 1,841,208 | 67,032 | |||||||||||||||
Total impaired | $ | 14,849,395 | $ | 13,441,487 | $ | 2,421,894 | $ | 13,670,027 | $ | 464,178 | ||||||||||
(1) Generally accepted accounting principles require that we record acquired loans at fair value at acquisition date. These loans are not performing according to their contractual terms and meet our definition of an impaired loan. Although we do not accrue interest income at the contractual rate on these loans, we may accrete their fair value discounts to interest income as a result of pre-payments that exceeds our cash flow expectations or payment in full of amounts due even though we classify them as non-accrual. | ||||||||||||||||||||
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 March 31, 2014 consisted of four loans for $602,639 compared to five loans at December 31, 2013 for $666,970. We had no loans that were modified as a TDR during the three month periods ending March 31, 2014 or 2013. We had no loans that were modified as a TDR that defaulted within twelve months of the modification date during the three month period ending March 31, 2014. | ||||||||||||||||||||
Acquired impaired loans | ||||||||||||||||||||
The following table documents changes in the accretable discount on acquired impaired loans during the three months ended March 31, 2014 and 2013, along with the outstanding balances and related carrying amounts for the beginning and end of those respective periods. | ||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Balance at beginning of period | $ | 40,771 | $ | — | ||||||||||||||||
Accretion of fair value discounts | (299,629 | ) | (240,238 | ) | ||||||||||||||||
Reclassification from non-accretable | 236,909 | 240,238 | ||||||||||||||||||
Balance at end of period | $ | (21,949 | ) | $ | — | |||||||||||||||
Contractually | Carrying Amount | |||||||||||||||||||
Required Payments | ||||||||||||||||||||
Receivable | ||||||||||||||||||||
At March 31, 2014 | $ | 11,884,789 | $ | 8,456,379 | ||||||||||||||||
At December 31, 2013 | 12,482,792 | 8,742,777 | ||||||||||||||||||
At March 31, 2013 | 24,536,848 | 13,174,186 | ||||||||||||||||||
At December 31, 2012 | 24,930,742 | 13,363,882 | ||||||||||||||||||
Credit Quality Indicators | ||||||||||||||||||||
We review the adequacy of the allowance for loan losses at least quarterly. We base the evaluation of the adequacy of the allowance for loan losses upon loan categories. We categorize loans as residential real estate loans, commercial real estate loans, commercial loans and consumer loans. We further divide commercial real estate loans by owner occupied, investment, hospitality and land acquisition and development. We also divide residential real estate by owner occupied, investment, land acquisition and development and junior liens. All categories are divided by risk rating and loss factors and weighed 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. | ||||||||||||||||||||
We determine loss ratios for all loans based upon a review of the three year loss ratio for the category and qualitative factors. | ||||||||||||||||||||
We charge off loans that management has identified as losses. We consider suggestions from our external loan review firm and bank examiners when determining which loans to charge off. We automatically charge off consumer loan accounts based on regulatory requirements. | ||||||||||||||||||||
If a loan that was previously rated a pass performing loan, from our acquisitions, deteriorates subsequent to the acquisition, the subject loan will be assessed for risk and, if necessary, evaluated for impairment. If the risk assessment rating is adversely changed and the loan is determined to not be impaired, the loan will be placed in a migration category and the credit mark established for the loan will be compared to the general reserve allocation that would be applied using the current allowance for loan losses formula for General Reserves. If the credit mark exceeds the allowance for loan losses formula for General Reserves, there will be no change to the allowance for loan losses. If the credit mark is less than the current allowance for loan losses formula for General Reserves, the allowance for loan losses will be increased by the amount of the shortfall by a provision recorded in the income statement. If the loan is deemed impaired, the loan will be subject to evaluation for loss exposure and a specific reserve. If the estimate of loss exposure exceeds the credit mark, the allowance for loan losses will be increased by the amount of the excess loss exposure through a provision. If the credit mark exceeds the estimate of loss exposure there will be no change to the allowance for loan losses. If a loan from the acquired loan portfolio is carrying a specific credit mark and a current evaluation determines that there has been an increase in loss exposure, the allowance for loan losses will be increased by the amount of the current loss exposure in excess of the credit mark. | ||||||||||||||||||||
The following tables outline the class of loans by risk rating at March 31, 2014 and December 31, 2013: | ||||||||||||||||||||
March 31, 2014 | Account Balance | |||||||||||||||||||
Legacy | Acquired | Total | ||||||||||||||||||
Risk Rating | ||||||||||||||||||||
Pass (1-5) | ||||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||
Owner Occupied | $ | 163,542,525 | $ | 26,727,753 | $ | 190,270,278 | ||||||||||||||
Investment | 169,292,647 | 49,011,853 | 218,304,500 | |||||||||||||||||
Hospitality | 63,590,421 | 8,464,828 | 72,055,249 | |||||||||||||||||
Land and A&D | 33,782,502 | 6,227,760 | 40,010,262 | |||||||||||||||||
Residential Real Estate: | ||||||||||||||||||||
First-Investment | 43,985,676 | 26,591,313 | 70,576,989 | |||||||||||||||||
First-Owner Occupied | 15,591,130 | 58,213,835 | 73,804,965 | |||||||||||||||||
Land and A&D | 17,731,271 | 12,015,470 | 29,746,741 | |||||||||||||||||
HELOC and Jr. Liens | 18,909,513 | 3,295,273 | 22,204,786 | |||||||||||||||||
Commercial | 84,399,266 | 8,557,467 | 92,956,733 | |||||||||||||||||
Consumer | 9,752,546 | 775,543 | 10,528,089 | |||||||||||||||||
620,577,497 | 199,881,095 | 820,458,592 | ||||||||||||||||||
Special Mention (6) | ||||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||
Owner Occupied | 1,611,155 | 2,100,264 | 3,711,419 | |||||||||||||||||
Investment | 1,428,149 | 830,932 | 2,259,081 | |||||||||||||||||
Hospitality | — | — | — | |||||||||||||||||
Land and A&D | 3,186,250 | 243,191 | 3,429,441 | |||||||||||||||||
Residential Real Estate: | ||||||||||||||||||||
First-Investment | 1,238,288 | 722,055 | 1,960,343 | |||||||||||||||||
First-Owner Occupied | 86,027 | 637,465 | 723,492 | |||||||||||||||||
Land and A&D | 2,441,074 | 360,793 | 2,801,867 | |||||||||||||||||
HELOC and Jr. Liens | — | — | — | |||||||||||||||||
Commercial | 2,920,052 | 633,143 | 3,553,195 | |||||||||||||||||
Consumer | — | — | — | |||||||||||||||||
12,910,995 | 5,527,843 | 18,438,838 | ||||||||||||||||||
Substandard (7) | ||||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||
Owner Occupied | 1,849,685 | 884,767 | 2,734,452 | |||||||||||||||||
Investment | 1,351,595 | 1,114,643 | 2,466,238 | |||||||||||||||||
Hospitality | 4,473,345 | — | 4,473,345 | |||||||||||||||||
Land and A&D | — | — | — | |||||||||||||||||
Residential Real Estate: | ||||||||||||||||||||
First-Investment | 120,478 | 513,056 | 633,534 | |||||||||||||||||
First-Owner Occupied | — | 1,135,875 | 1,135,875 | |||||||||||||||||
Land and A&D | — | 793,372 | 793,372 | |||||||||||||||||
HELOC and Jr. Liens | — | — | — | |||||||||||||||||
Commercial | 1,191,876 | 981,811 | 2,173,687 | |||||||||||||||||
Consumer | 6,771 | — | 6,771 | |||||||||||||||||
8,993,750 | 5,423,524 | 14,417,274 | ||||||||||||||||||
Doubtful (8) | — | — | — | |||||||||||||||||
Loss (9) | — | — | — | |||||||||||||||||
Total | $ | 642,482,242 | $ | 210,832,462 | $ | 853,314,704 | ||||||||||||||
December 31, 2013 | Account Balance | |||||||||||||||||||
Legacy | Acquired | Total | ||||||||||||||||||
Risk Rating | ||||||||||||||||||||
Pass (1-5) | ||||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||
Owner Occupied | $ | 159,945,564 | $ | 27,089,317 | $ | 187,034,881 | ||||||||||||||
Investment | 159,392,609 | 51,664,220 | 211,056,829 | |||||||||||||||||
Hospitality | 62,818,042 | 8,546,240 | 71,364,282 | |||||||||||||||||
Land and A&D | 37,383,344 | 8,148,372 | 45,531,716 | |||||||||||||||||
Residential Real Estate: | ||||||||||||||||||||
First-Investment | 44,064,312 | 27,103,460 | 71,167,772 | |||||||||||||||||
First-Owner Occupied | 12,896,971 | 60,399,843 | 73,296,814 | |||||||||||||||||
Land and A&D | 17,778,528 | 12,678,761 | 30,457,289 | |||||||||||||||||
HELOC and Jr. Liens | 18,302,559 | 3,359,063 | 21,661,622 | |||||||||||||||||
Commercial | 85,415,692 | 9,529,078 | 94,944,770 | |||||||||||||||||
Consumer | 10,113,098 | 870,843 | 10,983,941 | |||||||||||||||||
608,110,719 | 209,389,197 | 817,499,916 | ||||||||||||||||||
Special Mention (6) | ||||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||
Owner Occupied | 1,310,107 | 2,128,647 | 3,438,754 | |||||||||||||||||
Investment | 1,432,243 | 835,918 | 2,268,161 | |||||||||||||||||
Hospitality | — | — | — | |||||||||||||||||
Land and A&D | 3,212,463 | 250,806 | 3,463,269 | |||||||||||||||||
Residential Real Estate: | ||||||||||||||||||||
First-Investment | 1,106,938 | 733,107 | 1,840,045 | |||||||||||||||||
First-Owner Occupied | 87,154 | 762,920 | 850,074 | |||||||||||||||||
Land and A&D | 2,066,763 | — | 2,066,763 | |||||||||||||||||
HELOC and Jr. Liens | — | — | — | |||||||||||||||||
Commercial | 1,841,859 | 646,700 | 2,488,559 | |||||||||||||||||
Consumer | — | — | — | |||||||||||||||||
11,057,527 | 5,358,098 | 16,415,625 | ||||||||||||||||||
Substandard (7) | ||||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||
Owner Occupied | 1,849,685 | 884,767 | 2,734,452 | |||||||||||||||||
Investment | 1,363,821 | 1,591,538 | 2,955,359 | |||||||||||||||||
Hospitality | 4,473,345 | — | 4,473,345 | |||||||||||||||||
Land and A&D | — | — | — | |||||||||||||||||
Residential Real Estate: | ||||||||||||||||||||
First-Investment | 123,183 | 527,528 | 650,711 | |||||||||||||||||
First-Owner Occupied | 925,812 | 1,084,740 | 2,010,552 | |||||||||||||||||
Land and A&D | — | 1,046,181 | 1,046,181 | |||||||||||||||||
HELOC and Jr. Liens | — | — | — | |||||||||||||||||
Commercial | 2,371,493 | 985,568 | 3,357,061 | |||||||||||||||||
Consumer | 14,427 | — | 14,427 | |||||||||||||||||
11,121,766 | 6,120,322 | 17,242,088 | ||||||||||||||||||
Doubtful (8) | — | — | — | |||||||||||||||||
Loss (9) | — | — | — | |||||||||||||||||
Total | $ | 630,290,012 | $ | 220,867,617 | $ | 851,157,629 | ||||||||||||||
The following table details activity in the allowance for loan losses by portfolio segment for the three month periods ended March 31, 2014 and 2013. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. During the fourth quarter of 2013, the loan segments were changed to align with our new allowance methodology which resulted in balance transfers from prior loan categories and assigned to each new loan segment. | ||||||||||||||||||||
March 31, 2014 | Commercial | Commercial | Residential | Consumer | Total | |||||||||||||||
Real Estate | Real Estate | |||||||||||||||||||
Beginning balance | $ | 495,051 | $ | 3,569,395 | $ | 841,234 | $ | 23,533 | $ | 4,929,213 | ||||||||||
General provision for loan losses | 76,063 | 159,543 | 91,713 | 11,251 | 338,570 | |||||||||||||||
Provision (credit) for loan losses for loans acquired with deteriorated credit quality | (5,907 | ) | (138,480 | ) | 75,586 | — | (68,801 | ) | ||||||||||||
Recoveries | 2,496 | 40 | 7,670 | 4,026 | 14,232 | |||||||||||||||
567,703 | 3,590,498 | 1,016,203 | 38,810 | 5,213,214 | ||||||||||||||||
Loans charged off | (1,000 | ) | — | (320,006 | ) | (10,269 | ) | (331,275 | ) | |||||||||||
Ending Balance | $ | 566,703 | $ | 3,590,498 | $ | 696,197 | $ | 28,541 | $ | 4,881,939 | ||||||||||
Amount allocated to: | ||||||||||||||||||||
Legacy Loans: | ||||||||||||||||||||
Individually evaluated for impairment | $ | 185,846 | $ | 1,385,160 | $ | — | $ | — | $ | 1,571,006 | ||||||||||
Other loans not individually evaluated | 379,361 | 1,926,498 | 512,872 | 29,396 | 2,848,127 | |||||||||||||||
Acquired Loans: | ||||||||||||||||||||
Individually evaluated for impairment | 279,036 | — | 183,770 | — | 462,806 | |||||||||||||||
Ending balance | $ | 844,243 | $ | 3,311,658 | $ | 696,642 | $ | 29,396 | $ | 4,881,939 | ||||||||||
March 31, 2013 | Real Estate | Commercial | Boats | Other | Total | |||||||||||||||
Consumer | ||||||||||||||||||||
Beginning balance | $ | 2,826,584 | $ | 755,954 | $ | 248,928 | $ | 133,881 | $ | 3,965,347 | ||||||||||
General provision for loan losses | 22,653 | 113,670 | (7,969 | ) | (3,354 | ) | 125,000 | |||||||||||||
Provision for loan losses for loans acquired with deteriorated credit quality | 75,000 | — | — | — | 75,000 | |||||||||||||||
Recoveries | 31,383 | 16,996 | — | 22,674 | 71,053 | |||||||||||||||
2,955,620 | 886,620 | 240,959 | 153,201 | 4,236,400 | ||||||||||||||||
Loans charged off | (67,851 | ) | (102,596 | ) | — | (13,006 | ) | (183,453 | ) | |||||||||||
Ending Balance | $ | 2,887,769 | $ | 784,024 | $ | 240,959 | $ | 140,195 | $ | 4,052,947 | ||||||||||
Amount allocated to: | ||||||||||||||||||||
Legacy Loans: | ||||||||||||||||||||
Individually evaluated for impairment | $ | 25,000 | $ | — | $ | — | $ | — | $ | 25,000 | ||||||||||
Other loans not individually evaluated | 2,471,145 | 784,024 | 240,959 | 140,195 | 3,636,323 | |||||||||||||||
Acquired Loans: | ||||||||||||||||||||
Individually evaluated for impairment | 391,624 | — | — | — | 391,624 | |||||||||||||||
Ending balance | $ | 2,887,769 | $ | 784,024 | $ | 240,959 | $ | 140,195 | $ | 4,052,947 | ||||||||||
Our recorded investment in loans at March 31, 2014 and 2013 related to each balance in the allowance for probable loan losses by portfolio segment and disaggregated on the basis of our impairment methodology was as follows: | ||||||||||||||||||||
March 31, 2014 | Commercial | Commercial | Residential | Consumer | Total | |||||||||||||||
Real Estate | Real Estate | |||||||||||||||||||
Legacy loans: | ||||||||||||||||||||
Individually evaluated for impairment with specific reserve | $ | 439,694 | $ | 5,824,940 | $ | — | $ | — | $ | 6,264,634 | ||||||||||
Individually evaluated for impairment without specific reserve | 752,182 | 2,120,282 | 120,478 | — | 2,992,942 | |||||||||||||||
Other loans not individually evaluated | 87,319,319 | 436,230,697 | 99,467,152 | 9,759,318 | 632,776,486 | |||||||||||||||
Acquired loans: | ||||||||||||||||||||
Individually evaluated for impairment with specific reserve subsequent to acquisition (ASC 310-20 at acquisition) | — | 372,048 | 482,631 | — | 854,679 | |||||||||||||||
Individually evaluated for impairment without specific reserve (ASC 310-20 at acquisition) | 86,813 | — | 515,826 | — | 602,639 | |||||||||||||||
Individually evaluated for impairment without specific reserve (ASC 310-30 at acquisition) | — | — | 232,027 | — | 232,027 | |||||||||||||||
Collectively evaluated for impairment without reserve (ASC 310-20 at acquisition) | 10,085,609 | 95,166,297 | 103,563,849 | 775,542 | 209,591,297 | |||||||||||||||
Ending balance | $ | 98,683,617 | $ | 539,714,264 | $ | 204,381,963 | $ | 10,534,860 | $ | 853,314,704 | ||||||||||
March 31, 2013 | Real Estate | Commerical | Boats | Other | Total | |||||||||||||||
Consumer | ||||||||||||||||||||
Legacy loans: | ||||||||||||||||||||
Individually evaluated for impairment with specific reserve | $ | 499,122 | $ | — | $ | — | $ | — | $ | 499,122 | ||||||||||
Individually evaluated for impairment without specific reserve | 2,783,091 | 1,721,438 | — | — | 4,504,529 | |||||||||||||||
Collectively evaluated for impairment without reserve | 378,858,376 | 91,205,536 | 6,813,884 | 3,058,822 | 479,936,618 | |||||||||||||||
Acquired loans: | ||||||||||||||||||||
Individually evaluated for impairment with specific reserve subsequent to acquisition (ASC 310-20 at acquisition) | 1,603,144 | — | — | — | 1,603,144 | |||||||||||||||
Individually evaluated for impairment without specific reserve (ASC 310-30 at acquisition) | 12,887,376 | 286,810 | — | — | 13,174,186 | |||||||||||||||
Collectively evaluated for impairment without reserve (ASC 310-20 at acquisition) | 104,057,548 | 10,135,885 | — | 936,671 | 115,130,104 | |||||||||||||||
Ending balance | $ | 500,688,657 | $ | 103,349,669 | $ | 6,813,884 | $ | 3,995,493 | $ | 614,847,703 |
OTHER_REAL_ESTATE_OWNED
OTHER REAL ESTATE OWNED | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
OTHER REAL ESTATE OWNED | ' | ||||||||||
OTHER REAL ESTATE OWNED | ' | ||||||||||
6. OTHER REAL ESTATE OWNED | |||||||||||
At March 31, 2014 and December 31, 2013, the fair value of other real estate owned was $4.6 million and $4.3 million, 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. | |||||||||||
Three months ended March 31, 2014 | Legacy | Acquired | Total | ||||||||
Beginning balance | $ | 475,291 | $ | 3,836,051 | $ | 4,311,342 | |||||
Real estate acquired through foreclosure of loans | 334,000 | 257,622 | 591,622 | ||||||||
Real estate sold | — | (512,878 | ) | (512,878 | ) | ||||||
Net realized gain (loss) on sale of real estate owned | — | 203,068 | 203,068 | ||||||||
Ending balance | $ | 809,291 | $ | 3,783,863 | $ | 4,593,154 |
EARNINGS_PER_COMMON_SHARE
EARNINGS PER COMMON SHARE | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
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 | ||||||
March 31, | ||||||
2014 | 2013 | |||||
Weighted average number of shares | 10,780,141 | 6,848,505 | ||||
Dilutive average number of shares | 10,942,110 | 6,950,749 |
STOCK_BASED_COMPENSATION
STOCK BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2014 | |
STOCK BASED COMPENSATION | ' |
STOCK BASED COMPENSATION | ' |
8. STOCK BASED COMPENSATION | |
For the three months ended March 31, 2014 and 2013, we recorded stock-based compensation expense of $126,802 and $83,662, respectively. At March 31, 2014, there was $461,189 of total unrecognized compensation cost related to non-vested stock options and restricted stock awards that we expect to realize over the next 1.25 years. As of March 31, 2014, there were 413,722 shares remaining available for future issuance under the equity incentive plans. The directors and officers did not exercise any options during the three month periods ended March 31, 2014 and 2013. | |
For purposes of determining estimated fair value of stock options and restricted stock awards, we have computed the estimated fair values of all stock-based compensation using the Black-Scholes option pricing model and, for stock options and restricted stock awards granted prior to December 31, 2013, have applied the assumptions set forth in Old Line Bancshares’ Annual Report on Form 10-K for the year ended December 31, 2013. During the three months ended March 31, 2014 and 2013, we granted 50,759 and 52,712 stock options, respectively. The weighted average grant date fair value of these 2014 stock options is $4.69 and was computed using the Black-Scholes option pricing model under similar assumptions. | |
During the three months ended March 31, 2014 and 2013, we granted 8,257 and 8,382 restricted common stock awards, respectively. The weighted average grant date fair value of these restricted stock awards is $16.76 at March 31, 2014. There were no restricted shares forfeited during the three month periods ending March 31, 2014 and 2013. |
FAIR_VALUE_MEASUREMENT
FAIR VALUE MEASUREMENT | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
FAIR VALUE MEASUREMENT | ' | ||||||||||||||||
FAIR VALUE MEASUREMENT | ' | ||||||||||||||||
9. FAIR VALUE MEASUREMENT | |||||||||||||||||
The fair value of an asset or liability is 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. | |||||||||||||||||
The fair value hierarchy established by accounting standards defines three input levels for fair value measurement. The applicable standard describes three levels of inputs that may be used to measure fair value: Level 1 is based on quoted market prices in active markets for identical assets. Level 2 is based on significant observable inputs other than Level 1 prices. Level 3 is based on significant unobservable inputs that reflect a company’s own assumptions about the assumption that market participants would use in pricing an asset or liability. We evaluate fair value measurement inputs on an ongoing basis in order to determine if there is a change of sufficient significance to warrant a transfer between levels. For the three months ended March 31, 2014 and year ended December 31, 2013, there were no transfers between levels. | |||||||||||||||||
At March 31, 2014, we hold, as part of our investment portfolio, available for sale securities reported at fair value consisting of municipal securities, U.S. government sponsored entities, mortgage-backed securities. The fair value of the majority of these securities is determined using widely accepted valuation techniques including matrix pricing and broker-quote based applications. Inputs include benchmark yields, reported trades, issuer spreads, prepayments speeds and other relevant items. These are inputs used by a third-party pricing service used by us. | |||||||||||||||||
To validate the appropriateness of the valuations provided by the third party, we regularly update the understanding of the inputs used and compare valuations to an additional third party source. We classify all our investment securities available for sale in Level 2 of the fair value hierarchy, with the exception of treasury securities which fall into Level 1. | |||||||||||||||||
We value Sallie Mae (SLMA) equity securities (included in equity securities) at fair value on a recurring basis. We value SLMA equity securities under Level 1. During the period ending March 31, 2014, the SLMA equity security was sold and the realized gain of $96,993 is recorded in gain (loss) on disposal of assets on the consolidated statement of income. | |||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||||||||||||||||
At March 31, 2014 (In thousands) | |||||||||||||||||
Quoted Prices in | Other | Significant | Total Changes | ||||||||||||||
Active Markets for | Observable | Unobservable | in Fair Values | ||||||||||||||
Identical Assets | Inputs | Inputs | Included in | ||||||||||||||
Carrying Value | (Level 1) | (Level 2) | (Level 3) | Period Earnings | |||||||||||||
Availabe-for-sale: | |||||||||||||||||
Treasury securities | $ | 1,499 | $ | 1,499 | $ | — | $ | — | $ | — | |||||||
U.S. government agency | 42,099 | — | 42,099 | — | — | ||||||||||||
Municipal securities | 60,589 | — | 60,589 | — | — | ||||||||||||
FHLMC MBS | 4,207 | — | 4,207 | — | — | ||||||||||||
FNMA MBS | 18,338 | — | 18,338 | — | — | ||||||||||||
GNMA MBS | 38,568 | — | 38,568 | — | — | ||||||||||||
SBA loan pools | 6,794 | — | 6,794 | — | — | ||||||||||||
Total recurring assets at fair value | $ | 172,094 | $ | 1,499 | $ | 170,595 | $ | — | $ | — | |||||||
At December 31, 2013 (In thousands) | |||||||||||||||||
Quoted Prices in | Other | Significant | Total Changes | ||||||||||||||
Active Markets for | Observable | Unobservable | in Fair Values | ||||||||||||||
Identical Assets | Inputs | Inputs | Included in | ||||||||||||||
Carrying Value | (Level 1) | (Level 2) | (Level 3) | Period Earnings | |||||||||||||
Availabe-for-sale: | |||||||||||||||||
Treasury securities | $ | 1,250 | $ | 1,250 | $ | — | $ | — | $ | — | |||||||
U.S. government agency | 40,735 | — | 40,735 | — | — | ||||||||||||
Municipal securities | 59,267 | — | 59,267 | — | — | ||||||||||||
FHLMC MBS | 5,206 | — | 5,206 | — | — | ||||||||||||
FNMA MBS | 18,703 | — | 18,703 | — | — | ||||||||||||
GNMA MBS | 39,921 | — | 39,921 | — | — | ||||||||||||
SBA loan pools | 7,088 | — | 7,088 | — | — | ||||||||||||
Total investment securities available for sale | 172,170 | 1,250 | 170,920 | — | — | ||||||||||||
Sallie Mae equity securities | 414 | 414 | — | — | — | ||||||||||||
Total recurring assets at fair value | $ | 172,584 | $ | 1,664 | $ | 170,920 | $ | — | $ | — | |||||||
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 March 31, 2014 and December 31, 2013 are included in the tables 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 March 31, 2014 (In thousands) | |||||||||||||||||
Quoted Prices in | Other | Significant | |||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||
Carrying Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Impaired Loans | |||||||||||||||||
Legacy: | $ | 7,687 | $ | — | $ | — | $ | 7,687 | |||||||||
Acquired: | 1,233 | — | — | 1,233 | |||||||||||||
Total Impaired Loans | 8,920 | — | — | 8,920 | |||||||||||||
Other real estate owned: | |||||||||||||||||
Legacy: | 809 | — | — | 809 | |||||||||||||
Acquired: | 3,784 | — | — | 3,784 | |||||||||||||
Total other real estate owned: | 4,593 | — | — | 4,593 | |||||||||||||
Total | $ | 13,513 | $ | — | $ | — | $ | 13,513 | |||||||||
At December 31, 2013 (In thousands) | |||||||||||||||||
Quoted Prices in | Other | Significant | |||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||
Carrying Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Impaired Loans | |||||||||||||||||
Legacy: | $ | 9,723 | $ | — | $ | — | $ | 9,723 | |||||||||
Acquired: | 1,296 | — | — | 1,296 | |||||||||||||
Total Impaired Loans | 11,019 | — | — | 11,019 | |||||||||||||
Other real estate owned: | |||||||||||||||||
Legacy: | 475 | — | — | $ | 475 | ||||||||||||
Acquired: | 3,836 | — | — | 3,836 | |||||||||||||
Total other real estate owned: | 4,311 | — | — | 4,311 | |||||||||||||
Total | $ | 15,330 | $ | — | $ | — | $ | 15,330 | |||||||||
As of March 31, 2014 and December 31, 2013, we estimated the fair value of impaired assets using Level 3 inputs to be $13.5 million and $15.3 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 50%. 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). | |||||||||||||||||
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 because of the short maturities of these instruments. | |||||||||||||||||
Loans- We estimate the fair value of loans, segregated by type based on similar financial characteristics, segregated by type based on similar financial characteristics, 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 considered restricted stock and 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. | |||||||||||||||||
Off-balance Sheet Commitments and Contingencies- Carrying amounts are reasonable estimates of the fair values for such financial instruments. Carrying amounts include unamortized fee income and, in some cases, reserves for any credit losses from those financial instruments. These amounts are not material to our financial position. | |||||||||||||||||
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. | |||||||||||||||||
March 31, 2014 (In thousands) | |||||||||||||||||
Quoted Prices | Significant | Significant | |||||||||||||||
Total | in Active | Other | Other | ||||||||||||||
Carrying | Estimated | Markets for | Observable | Unobservable | |||||||||||||
Amount | Fair | Identical Assets | Inputs | Inputs | |||||||||||||
(000’s) | Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 54,406 | $ | 54,406 | $ | 54,406 | $ | — | $ | — | |||||||
Loans receivable, net | 849,430 | 863,985 | — | — | 863,985 | ||||||||||||
Loans held for sale | 1,682 | 1,682 | — | 1,682 | — | ||||||||||||
Investment securities available for sale | 172,094 | 172,094 | 1,499 | 170,595 | — | ||||||||||||
Equity Securities at cost | 4,304 | 4,304 | — | 4,304 | — | ||||||||||||
Bank Owned Life Insurance | 30,788 | 30,788 | — | 30,788 | — | ||||||||||||
Accrued interest receivable | 3,131 | 3,131 | — | 906 | 2,225 | ||||||||||||
Liabilities: | |||||||||||||||||
Deposits: | |||||||||||||||||
Non-interest-bearing | 234,512 | 234,512 | — | 234,512 | — | ||||||||||||
Interest bearing | 773,640 | 779,087 | — | 779,087 | — | ||||||||||||
Short term borrowings | 38,194 | 38,194 | — | 38,194 | — | ||||||||||||
Long term borrowings | 6,072 | 6,072 | — | 6,072 | — | ||||||||||||
Accrued Interest payable | 242 | 242 | — | 242 | — | ||||||||||||
December 31, 2013 (In thousands) | |||||||||||||||||
Quoted Prices | Significant | Significant | |||||||||||||||
Total | in Active | Other | Other | ||||||||||||||
Carrying | Estimated | Markets for | Observable | Unobservable | |||||||||||||
Amount | Fair | Identical Assets | Inputs | Inputs | |||||||||||||
(000’s) | Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 29,058 | $ | 29,058 | $ | 29,058 | $ | — | $ | — | |||||||
Loans receivable, net | 847,249 | 860,458 | — | — | 860,458 | ||||||||||||
Loans held for sale | 2,075 | 2,075 | — | 2,075 | — | ||||||||||||
Investment securities available for sale | 172,170 | 172,170 | 1,250 | 170,920 | — | ||||||||||||
Equity Securities at cost | 5,670 | 5,670 | 414 | 5,256 | — | ||||||||||||
Bank Owned Life Insurance | 30,577 | 30,577 | — | 30,577 | — | ||||||||||||
Accrued interest receivable | 3,433 | 3,433 | — | 1,088 | 2,345 | ||||||||||||
Liabilities: | |||||||||||||||||
Deposits: | |||||||||||||||||
Non-interest-bearing | 228,734 | 228,734 | — | 228,734 | — | ||||||||||||
Interest bearing | 745,626 | 751,703 | — | 751,703 | — | ||||||||||||
Short term borrowings | 49,530 | 49,530 | — | 49,530 | — | ||||||||||||
Long term borrowings | 6,093 | 6,093 | — | 6,093 | — | ||||||||||||
Accrued Interest payable | 265 | 265 | — | 265 | — | ||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
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 March 31, 2014 and 2013 are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles (US GAAP); 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, 2013 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, 2013. We have made no significant changes to Old Line Bancshares’ accounting policies as disclosed in the Form 10-K. | |
Use of estimates | ' |
Use of estimates-The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. These estimates and assumptions may affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. A material estimate that is particularly susceptible to significant change in the near term relates to the determination of the allowance for loan losses. | |
Reclassifications | ' |
Reclassifications-We have made certain reclassifications to the 2013 financial presentation to conform to the 2014 presentation. These reclassifications did not change net income or stockholders’ equity. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements-In January 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-04, “Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure.” The objective of this guidance is to clarify when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. ASU No. 2014-04 states that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, ASU No. 2014-04 requires interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. ASU No. 2014-04 is effective for interim and annual reporting periods beginning after December 15, 2014. The adoption of ASU No. 2014-04 is not expected to have a material impact on our consolidated financial statements. |
POINTER_RIDGE_OFFICE_INVESTMEN1
POINTER RIDGE OFFICE INVESTMENT, LLC (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
POINTER RIDGE OFFICE INVESTMENT, LLC | ' | |||||||
Summary of condensed Balance Sheets and Statements of Income information | ' | |||||||
Marrch 31, | December 31, | |||||||
Balance Sheets | 2014 | 2013 | ||||||
Current assets | $ | 255,629 | $ | 286,206 | ||||
Non-current assets | 6,573,777 | 6,622,560 | ||||||
Liabilities | 6,086,650 | 6,108,972 | ||||||
Equity | 742,756 | 799,794 | ||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Statements of Income | ||||||||
Revenue | $ | 238,991 | $ | 224,367 | ||||
Expenses | 296,030 | 259,286 | ||||||
Net loss | $ | (57,039 | ) | $ | (34,919 | ) |
ACQUISITION_OF_WSB_HOLDINGS_IN1
ACQUISITION OF WSB HOLDINGS, INC. (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
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 | — | (d) | 886,413 | |||||||||
Deferred income taxes | 7,396,519 | 4,005,790 | 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 | 118,066 | 3,097,793 | ||||||||||
Total liabilities | $ | 274,465,406 | $ | 5,324,086 | $ | 279,789,492 | |||||||
Net identifiable assets acquired over (under) liabilities assumed | 53,822,703 | (23,335,516 | ) | 30,487,187 | |||||||||
Goodwill | — | 7,159,875 | (j) | 7,159,875 | |||||||||
Net assets acquired over liabilities assumed | 53,822,703 | (16,175,641 | ) | 37,647,062 | |||||||||
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. | |||||||||||||
(j) Within the measurement period, goodwill was increased $946,241. | |||||||||||||
We allocated the purchase price for WSB Holdings as follows: | |||||||||||||
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 stockholders | 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 | |||||||||||
Expenses not accrued for and paid by Old Line Bank | $ | (118,066 | ) | ||||||||||
Final purchase price for WSB acquisition | $ | 37,647,062 |
INVESTMENT_SECURITIES_Tables
INVESTMENT SECURITIES (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
INVESTMENT SECURITIES | ' | |||||||||||||||||||
Summary of the amortized cost and estimated fair value of securities | ' | |||||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||||||
cost | unrealized | unrealized | fair value | |||||||||||||||||
gains | losses | |||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||
Available for sale | ||||||||||||||||||||
U. S. treasury | $ | 1,502,168 | $ | — | $ | (2,918 | ) | $ | 1,499,250 | |||||||||||
U.S. government agency | 43,738,979 | 1,974 | (1,641,614 | ) | 42,099,339 | |||||||||||||||
Municipal securities | 61,085,196 | 838,679 | (1,334,774 | ) | 60,589,101 | |||||||||||||||
Mortgage backed securities: | ||||||||||||||||||||
FHLMC certificates | 4,189,100 | 72,304 | (54,181 | ) | 4,207,223 | |||||||||||||||
FNMA certificates | 18,510,992 | 192,218 | (365,510 | ) | 18,337,700 | |||||||||||||||
GNMA certificates | 39,166,237 | 126,405 | (724,533 | ) | 38,568,109 | |||||||||||||||
SBA loan pools | 6,991,572 | — | (197,947 | ) | 6,793,625 | |||||||||||||||
$ | 175,184,244 | $ | 1,231,580 | $ | (4,321,477 | ) | $ | 172,094,347 | ||||||||||||
December 31, 2013 | ||||||||||||||||||||
Available for sale | ||||||||||||||||||||
U. S. treasury | $ | 1,249,831 | $ | 156 | $ | — | $ | 1,249,987 | ||||||||||||
U.S. government agency | 42,942,107 | — | (2,206,975 | ) | 40,735,132 | |||||||||||||||
Municipal securities | 61,190,506 | 601,327 | (2,525,198 | ) | 59,266,635 | |||||||||||||||
Mortgage backed securities | ||||||||||||||||||||
FHLMC certificates | 5,214,835 | 75,950 | (84,819 | ) | 5,205,966 | |||||||||||||||
FNMA certificates | 19,055,521 | 161,209 | (513,728 | ) | 18,703,002 | |||||||||||||||
GNMA certificates | 40,878,372 | 127,750 | (1,084,896 | ) | 39,921,226 | |||||||||||||||
SBA loan pools | 7,339,052 | — | (251,224 | ) | 7,087,828 | |||||||||||||||
$ | 177,870,224 | $ | 966,392 | $ | (6,666,840 | ) | $ | 172,169,776 | ||||||||||||
Schedule of securities with unrealized losses segregated by length of impairment | ' | |||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||
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. Treasury | $ | 1,499,250 | $ | 2,918 | $ | — | $ | — | $ | 1,499,250 | $ | 2,918 | ||||||||
U.S. government agency | 39,860,865 | 1,572,301 | 1,437,900 | 69,313 | 41,298,765 | 1,641,614 | ||||||||||||||
Municipal securities | 14,604,173 | 394,847 | 16,849,269 | 939,927 | 31,453,442 | 1,334,774 | ||||||||||||||
Mortgage backed securities | 37,450,572 | 936,673 | 6,947,791 | 207,551 | 44,398,363 | 1,144,224 | ||||||||||||||
SBA loan pools | 6,793,625 | 197,947 | — | — | 6,793,625 | 197,947 | ||||||||||||||
Total unrealized losses less than 12 months | $ | 100,208,485 | $ | 3,104,686 | $ | 25,234,960 | $ | 1,216,791 | $ | 125,443,445 | $ | 4,321,477 | ||||||||
December 31,2013 | ||||||||||||||||||||
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 | $ | 39,324,082 | $ | 2,107,099 | $ | 1,411,050 | $ | 99,876 | $ | 40,735,132 | $ | 2,206,975 | ||||||||
Municipal securities | 30,367,222 | 1,654,439 | 9,190,578 | 870,759 | 39,557,800 | 2,525,198 | ||||||||||||||
Mortgage backed securities | 41,518,287 | 1,456,886 | 4,823,932 | 226,557 | 46,342,219 | 1,683,443 | ||||||||||||||
SBA loan pools | 7,087,828 | 251,224 | — | — | 7,087,828 | 251,224 | ||||||||||||||
Total unrealized losses less than 12 months | $ | 118,297,419 | $ | 5,469,648 | $ | 15,425,560 | $ | 1,197,192 | $ | 133,722,979 | $ | 6,666,840 | ||||||||
Schedule of contractual maturities and pledged securities | ' | |||||||||||||||||||
Available for Sale | ||||||||||||||||||||
March 31, 2014 | Amortized | Fair | ||||||||||||||||||
cost | value | |||||||||||||||||||
Maturing | ||||||||||||||||||||
Within one year | $ | 1,734,062 | $ | 1,734,124 | ||||||||||||||||
Over one to five years | 10,194,377 | 10,099,615 | ||||||||||||||||||
Over five to ten years | 47,163,392 | 45,862,144 | ||||||||||||||||||
Over ten years | 116,092,413 | 114,398,464 | ||||||||||||||||||
$ | 175,184,244 | $ | 172,094,347 | |||||||||||||||||
Pledged securities | $ | 44,268,035 | $ | 37,937,586 |
LOANS_Tables
LOANS (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
LOANS | ' | |||||||||||||||||||
Summary of major classifications of loans held for investment | ' | |||||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||||||
Legacy (1) | Acquired | Total | Legacy (1) | Acquired | Total | |||||||||||||||
Commercial Real Estate | ||||||||||||||||||||
Owner Occupied | $ | 167,003,364 | $ | 29,712,784 | $ | 196,716,148 | $ | 163,105,356 | $ | 30,102,731 | $ | 193,208,087 | ||||||||
Investment | 172,072,391 | 50,957,428 | 223,029,819 | 162,188,671 | 54,091,676 | 216,280,347 | ||||||||||||||
Hospitality | 68,063,766 | 8,464,828 | 76,528,594 | 67,291,387 | 8,546,239 | 75,837,626 | ||||||||||||||
Land and A&D | 36,968,752 | 6,470,951 | 43,439,703 | 40,595,806 | 8,399,178 | 48,994,984 | ||||||||||||||
Residential Real Estate | ||||||||||||||||||||
First Lien-Investment | 45,344,442 | 27,826,424 | 73,170,866 | 45,294,434 | 28,364,096 | 73,658,530 | ||||||||||||||
First Lien-Owner Occupied | 15,677,156 | 59,987,174 | 75,664,330 | 13,909,939 | 62,247,502 | 76,157,441 | ||||||||||||||
Residential Land and A&D | 20,172,345 | 13,169,636 | 33,341,981 | 19,845,291 | 13,724,942 | 33,570,233 | ||||||||||||||
HELOC and Jr. Liens | 18,909,513 | 3,295,273 | 22,204,786 | 18,302,560 | 3,359,063 | 21,661,623 | ||||||||||||||
Commercial and Industrial | 88,511,195 | 10,172,422 | 98,683,617 | 89,629,043 | 11,161,347 | 100,790,390 | ||||||||||||||
Consumer | 9,759,318 | 775,542 | 10,534,860 | 10,127,525 | 870,843 | 10,998,368 | ||||||||||||||
642,482,242 | 210,832,462 | 853,314,704 | 630,290,012 | 220,867,617 | 851,157,629 | |||||||||||||||
Allowance for loan losses | (4,419,133 | ) | (462,806 | ) | (4,881,939 | ) | (4,397,552 | ) | (531,661 | ) | (4,929,213 | ) | ||||||||
Deferred loan costs, net | 998,266 | (1,310 | ) | 996,956 | 1,021,167 | (993 | ) | 1,020,174 | ||||||||||||
$ | 639,061,375 | $ | 210,368,346 | $ | 849,429,721 | $ | 626,913,627 | $ | 220,334,963 | $ | 847,248,590 | |||||||||
(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, the parent company of WSB, in May 2013, 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 | ||||||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||||||
Legacy | Acquired | Total | Legacy | Acquired | Total | |||||||||||||||
Current | $ | 633,426,455 | $ | 206,516,653 | $ | 839,943,108 | $ | 620,559,847 | $ | 214,086,692 | $ | 834,646,539 | ||||||||
Accruing past due loans: | ||||||||||||||||||||
30-89 days past due | ||||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||
Owner Occupied | 752,732 | — | 752,732 | 828,388 | 54,035 | 882,423 | ||||||||||||||
Investment | — | — | — | — | 534,694 | 534,694 | ||||||||||||||
Residential Real Estate: | ||||||||||||||||||||
First-Investment | 517,494 | 379,337 | 896,831 | 521,405 | 845,018 | 1,366,423 | ||||||||||||||
First-Owner Occupied | — | 1,774,279 | 1,774,279 | — | 2,584,408 | 2,584,408 | ||||||||||||||
Land and A&D | 269,137 | 736,341 | 1,005,478 | — | 35,162 | 35,162 | ||||||||||||||
Commercial | — | 86,196 | 86,196 | 224,322 | 396,215 | 620,537 | ||||||||||||||
Consumer | 83,559 | 990 | 84,549 | — | 14,108 | 14,108 | ||||||||||||||
Total 30-89 days past due | 1,622,922 | 2,977,143 | 4,600,065 | 1,574,115 | 4,463,640 | 6,037,755 | ||||||||||||||
90 or more days past due | ||||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||
Owner Occupied | — | 309,767 | 309,767 | — | 309,767 | 309,767 | ||||||||||||||
Residential Real Estate: | ||||||||||||||||||||
First-Owner Occupied | — | 167,792 | 167,792 | — | 429,144 | 429,144 | ||||||||||||||
Land and A&D | — | — | — | — | 915,649 | 915,649 | ||||||||||||||
Commercial | 218,272 | — | 218,272 | — | — | — | ||||||||||||||
Consumer | 12,132 | — | 12,132 | — | — | — | ||||||||||||||
Total 90 or more days past due | 230,404 | 477,559 | 707,963 | — | 1,654,560 | 1,654,560 | ||||||||||||||
Total accruing past due loans | 1,853,326 | 3,454,702 | 5,308,028 | 1,574,115 | 6,118,200 | 7,692,315 | ||||||||||||||
Recorded Investment Non-accruing loans: | ||||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||
Owner Occupied | 1,849,685 | — | 1,849,685 | 1,849,685 | — | 1,849,685 | ||||||||||||||
Investment | — | 380,265 | 380,265 | — | 376,050 | 376,050 | ||||||||||||||
Hospitality | 4,473,345 | — | 4,473,345 | 4,473,345 | — | 4,473,345 | ||||||||||||||
Residential Real Estate: | ||||||||||||||||||||
First-Investment | 120,478 | — | 120,478 | 123,183 | — | 123,183 | ||||||||||||||
First-Owner Occupied | — | 350,510 | 350,510 | 925,814 | 156,143 | 1,081,957 | ||||||||||||||
Land and A&D | — | 130,332 | 130,332 | — | 130,532 | 130,532 | ||||||||||||||
Commercial | 752,182 | — | 752,182 | 769,597 | — | 769,597 | ||||||||||||||
Consumer | 6,771 | — | 6,771 | 14,426 | — | 14,426 | ||||||||||||||
Total Recorded Investment | ||||||||||||||||||||
Non-accruing past due loans: | 7,202,461 | 861,107 | 8,063,568 | 8,156,050 | 662,725 | 8,818,775 | ||||||||||||||
Total Loans | $ | 642,482,242 | $ | 210,832,462 | $ | 853,314,704 | $ | 630,290,012 | $ | 220,867,617 | $ | 851,157,629 | ||||||||
Summary of impaired loans | ' | |||||||||||||||||||
Impaired Loans | ||||||||||||||||||||
Three months ended March 31, 2014 | ||||||||||||||||||||
Unpaid | Recorded | Related | Average | Interest | ||||||||||||||||
Principal | Investment | Allowance | Recorded | Income | ||||||||||||||||
Balance | Investment | Recognized | ||||||||||||||||||
Legacy | ||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||
Owner Occupied | $ | 2,120,282 | $ | 2,120,282 | $ | — | $ | 2,120,388 | $ | — | ||||||||||
Land and A&D | ||||||||||||||||||||
Residential Real Estate: | ||||||||||||||||||||
First-Investment | 120,478 | 120,478 | — | 121,760 | — | |||||||||||||||
Commercial | 752,182 | 752,182 | — | 763,018 | — | |||||||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||
Owner Occupied | — | — | — | — | — | |||||||||||||||
Investment | 1,351,595 | 1,351,595 | 135,160 | 1,356,616 | — | |||||||||||||||
Hospitality | 4,473,345 | 4,473,345 | 1,250,000 | 4,473,345 | — | |||||||||||||||
Land and A&D | 439,694 | 439,694 | 185,846 | 448,918 | ||||||||||||||||
Total legacy impaired | 9,257,576 | 9,257,576 | 1,571,006 | 9,284,045 | — | |||||||||||||||
Acquired (1) | ||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||
Land and A&D | 1,134,224 | — | — | 1,310,004 | — | |||||||||||||||
Residential Real Estate: | ||||||||||||||||||||
First-Owner Occupied | 541,394 | 515,826 | — | 543,027 | 4,552 | |||||||||||||||
Land and A&D | 232,027 | 232,027 | — | 232,027 | — | |||||||||||||||
Commercial | 86,813 | 86,813 | — | 87,114 | 741 | |||||||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||
Investment | 372,048 | 380,265 | 279,036 | 372,048 | — | |||||||||||||||
Residential Real Estate: | ||||||||||||||||||||
First-Owner Occupied | 351,600 | 350,510 | 100,000 | 351,600 | — | |||||||||||||||
Land and A&D | 131,031 | 130,332 | 83,770 | 131,031 | — | |||||||||||||||
Total acquired impaired | 2,849,137 | 1,695,773 | 462,806 | 3,026,851 | 5,293 | |||||||||||||||
Total impaired | $ | 12,106,713 | $ | 10,953,349 | $ | 2,033,812 | $ | 12,310,896 | $ | 5,293 | ||||||||||
(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, 2013 | ||||||||||||||||||||
Unpaid | Recorded | Related | Average | Interest | ||||||||||||||||
Principal | Investment | Allowance | Recorded | Income | ||||||||||||||||
Balance | Investment | Recognized | ||||||||||||||||||
Legacy | ||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||
Owner Occupied | $ | 1,849,685 | $ | 1,849,685 | $ | — | $ | 1,855,418 | $ | 70,711 | ||||||||||
Residential Real Estate: | ||||||||||||||||||||
First-Investment | 123,183 | 123,183 | — | 129,105 | — | |||||||||||||||
Commercial | 2,136,376 | 2,136,376 | — | 2,235,110 | 90,917 | |||||||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||
Owner Occupied | 274,516 | 274,516 | 137,258 | 282,630 | 18,177 | |||||||||||||||
Investment | 1,363,821 | 1,363,821 | 136,382 | 1,385,973 | 63,855 | |||||||||||||||
Hospitality | 4,473,345 | 4,473,345 | 1,250,000 | 4,491,435 | 105,772 | |||||||||||||||
Residential Real Estate: | ||||||||||||||||||||
First-Owner Occupied | 925,814 | 925,814 | 167,450 | 931,492 | 16,664 | |||||||||||||||
Commercial | 459,439 | 459,439 | 191,753 | 510,230 | 31,018 | |||||||||||||||
Consumer | 7,390 | 7,390 | 7,390 | 7,426 | 32 | |||||||||||||||
Total legacy impaired | 11,613,569 | 11,613,569 | 1,890,233 | 11,828,819 | 397,146 | |||||||||||||||
Acquired (1) | ||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||
Owner Occupied | 605,314 | 579,583 | — | 590,677 | 24,821 | |||||||||||||||
Residential Real Estate: | ||||||||||||||||||||
Land and A&D | 1,628,156 | 241,624 | — | 241,624 | — | |||||||||||||||
Commercial | 87,387 | 87,387 | — | 88,508 | 4,533 | |||||||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||
Investment | 372,047 | 376,050 | 279,037 | 376,047 | 17,509 | |||||||||||||||
Residential Real Estate: | ||||||||||||||||||||
First-Owner Occupied | 411,891 | 412,742 | 187,109 | 414,020 | 11,460 | |||||||||||||||
Land and A&D | 131,031 | 130,532 | 65,515 | 130,332 | 8,709 | |||||||||||||||
Total acquired impaired | 3,235,826 | 1,827,918 | 531,661 | 1,841,208 | 67,032 | |||||||||||||||
Total impaired | $ | 14,849,395 | $ | 13,441,487 | $ | 2,421,894 | $ | 13,670,027 | $ | 464,178 | ||||||||||
(1) Generally accepted accounting principles require that we record acquired loans at fair value at acquisition date. These loans are not performing according to their contractual terms and meet our definition of an impaired loan. Although we do not accrue interest income at the contractual rate on these loans, we may accrete their fair value discounts to interest income as a result of pre-payments that exceeds our cash flow expectations or payment in full of amounts due even though we classify them as non-accrual. | ||||||||||||||||||||
Schedule of the outstanding balances and related carrying amounts of acquired impaired loans | ' | |||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Balance at beginning of period | $ | 40,771 | $ | — | ||||||||||||||||
Accretion of fair value discounts | (299,629 | ) | (240,238 | ) | ||||||||||||||||
Reclassification from non-accretable | 236,909 | 240,238 | ||||||||||||||||||
Balance at end of period | $ | (21,949 | ) | $ | — | |||||||||||||||
Contractually | Carrying Amount | |||||||||||||||||||
Required Payments | ||||||||||||||||||||
Receivable | ||||||||||||||||||||
At March 31, 2014 | $ | 11,884,789 | $ | 8,456,379 | ||||||||||||||||
At December 31, 2013 | 12,482,792 | 8,742,777 | ||||||||||||||||||
At March 31, 2013 | 24,536,848 | 13,174,186 | ||||||||||||||||||
At December 31, 2012 | 24,930,742 | 13,363,882 | ||||||||||||||||||
Summary of class of loans by risk rating | ' | |||||||||||||||||||
March 31, 2014 | Account Balance | |||||||||||||||||||
Legacy | Acquired | Total | ||||||||||||||||||
Risk Rating | ||||||||||||||||||||
Pass (1-5) | ||||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||
Owner Occupied | $ | 163,542,525 | $ | 26,727,753 | $ | 190,270,278 | ||||||||||||||
Investment | 169,292,647 | 49,011,853 | 218,304,500 | |||||||||||||||||
Hospitality | 63,590,421 | 8,464,828 | 72,055,249 | |||||||||||||||||
Land and A&D | 33,782,502 | 6,227,760 | 40,010,262 | |||||||||||||||||
Residential Real Estate: | ||||||||||||||||||||
First-Investment | 43,985,676 | 26,591,313 | 70,576,989 | |||||||||||||||||
First-Owner Occupied | 15,591,130 | 58,213,835 | 73,804,965 | |||||||||||||||||
Land and A&D | 17,731,271 | 12,015,470 | 29,746,741 | |||||||||||||||||
HELOC and Jr. Liens | 18,909,513 | 3,295,273 | 22,204,786 | |||||||||||||||||
Commercial | 84,399,266 | 8,557,467 | 92,956,733 | |||||||||||||||||
Consumer | 9,752,546 | 775,543 | 10,528,089 | |||||||||||||||||
620,577,497 | 199,881,095 | 820,458,592 | ||||||||||||||||||
Special Mention (6) | ||||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||
Owner Occupied | 1,611,155 | 2,100,264 | 3,711,419 | |||||||||||||||||
Investment | 1,428,149 | 830,932 | 2,259,081 | |||||||||||||||||
Hospitality | — | — | — | |||||||||||||||||
Land and A&D | 3,186,250 | 243,191 | 3,429,441 | |||||||||||||||||
Residential Real Estate: | ||||||||||||||||||||
First-Investment | 1,238,288 | 722,055 | 1,960,343 | |||||||||||||||||
First-Owner Occupied | 86,027 | 637,465 | 723,492 | |||||||||||||||||
Land and A&D | 2,441,074 | 360,793 | 2,801,867 | |||||||||||||||||
HELOC and Jr. Liens | — | — | — | |||||||||||||||||
Commercial | 2,920,052 | 633,143 | 3,553,195 | |||||||||||||||||
Consumer | — | — | — | |||||||||||||||||
12,910,995 | 5,527,843 | 18,438,838 | ||||||||||||||||||
Substandard (7) | ||||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||
Owner Occupied | 1,849,685 | 884,767 | 2,734,452 | |||||||||||||||||
Investment | 1,351,595 | 1,114,643 | 2,466,238 | |||||||||||||||||
Hospitality | 4,473,345 | — | 4,473,345 | |||||||||||||||||
Land and A&D | — | — | — | |||||||||||||||||
Residential Real Estate: | ||||||||||||||||||||
First-Investment | 120,478 | 513,056 | 633,534 | |||||||||||||||||
First-Owner Occupied | — | 1,135,875 | 1,135,875 | |||||||||||||||||
Land and A&D | — | 793,372 | 793,372 | |||||||||||||||||
HELOC and Jr. Liens | — | — | — | |||||||||||||||||
Commercial | 1,191,876 | 981,811 | 2,173,687 | |||||||||||||||||
Consumer | 6,771 | — | 6,771 | |||||||||||||||||
8,993,750 | 5,423,524 | 14,417,274 | ||||||||||||||||||
Doubtful (8) | — | — | — | |||||||||||||||||
Loss (9) | — | — | — | |||||||||||||||||
Total | $ | 642,482,242 | $ | 210,832,462 | $ | 853,314,704 | ||||||||||||||
December 31, 2013 | Account Balance | |||||||||||||||||||
Legacy | Acquired | Total | ||||||||||||||||||
Risk Rating | ||||||||||||||||||||
Pass (1-5) | ||||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||
Owner Occupied | $ | 159,945,564 | $ | 27,089,317 | $ | 187,034,881 | ||||||||||||||
Investment | 159,392,609 | 51,664,220 | 211,056,829 | |||||||||||||||||
Hospitality | 62,818,042 | 8,546,240 | 71,364,282 | |||||||||||||||||
Land and A&D | 37,383,344 | 8,148,372 | 45,531,716 | |||||||||||||||||
Residential Real Estate: | ||||||||||||||||||||
First-Investment | 44,064,312 | 27,103,460 | 71,167,772 | |||||||||||||||||
First-Owner Occupied | 12,896,971 | 60,399,843 | 73,296,814 | |||||||||||||||||
Land and A&D | 17,778,528 | 12,678,761 | 30,457,289 | |||||||||||||||||
HELOC and Jr. Liens | 18,302,559 | 3,359,063 | 21,661,622 | |||||||||||||||||
Commercial | 85,415,692 | 9,529,078 | 94,944,770 | |||||||||||||||||
Consumer | 10,113,098 | 870,843 | 10,983,941 | |||||||||||||||||
608,110,719 | 209,389,197 | 817,499,916 | ||||||||||||||||||
Special Mention (6) | ||||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||
Owner Occupied | 1,310,107 | 2,128,647 | 3,438,754 | |||||||||||||||||
Investment | 1,432,243 | 835,918 | 2,268,161 | |||||||||||||||||
Hospitality | — | — | — | |||||||||||||||||
Land and A&D | 3,212,463 | 250,806 | 3,463,269 | |||||||||||||||||
Residential Real Estate: | ||||||||||||||||||||
First-Investment | 1,106,938 | 733,107 | 1,840,045 | |||||||||||||||||
First-Owner Occupied | 87,154 | 762,920 | 850,074 | |||||||||||||||||
Land and A&D | 2,066,763 | — | 2,066,763 | |||||||||||||||||
HELOC and Jr. Liens | — | — | — | |||||||||||||||||
Commercial | 1,841,859 | 646,700 | 2,488,559 | |||||||||||||||||
Consumer | — | — | — | |||||||||||||||||
11,057,527 | 5,358,098 | 16,415,625 | ||||||||||||||||||
Substandard (7) | ||||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||
Owner Occupied | 1,849,685 | 884,767 | 2,734,452 | |||||||||||||||||
Investment | 1,363,821 | 1,591,538 | 2,955,359 | |||||||||||||||||
Hospitality | 4,473,345 | — | 4,473,345 | |||||||||||||||||
Land and A&D | — | — | — | |||||||||||||||||
Residential Real Estate: | ||||||||||||||||||||
First-Investment | 123,183 | 527,528 | 650,711 | |||||||||||||||||
First-Owner Occupied | 925,812 | 1,084,740 | 2,010,552 | |||||||||||||||||
Land and A&D | — | 1,046,181 | 1,046,181 | |||||||||||||||||
HELOC and Jr. Liens | — | — | — | |||||||||||||||||
Commercial | 2,371,493 | 985,568 | 3,357,061 | |||||||||||||||||
Consumer | 14,427 | — | 14,427 | |||||||||||||||||
11,121,766 | 6,120,322 | 17,242,088 | ||||||||||||||||||
Doubtful (8) | — | — | — | |||||||||||||||||
Loss (9) | — | — | — | |||||||||||||||||
Total | $ | 630,290,012 | $ | 220,867,617 | $ | 851,157,629 | ||||||||||||||
Summary of activity in the allowance for loan losses by portfolio segment | ' | |||||||||||||||||||
March 31, 2014 | Commercial | Commercial | Residential | Consumer | Total | |||||||||||||||
Real Estate | Real Estate | |||||||||||||||||||
Beginning balance | $ | 495,051 | $ | 3,569,395 | $ | 841,234 | $ | 23,533 | $ | 4,929,213 | ||||||||||
General provision for loan losses | 76,063 | 159,543 | 91,713 | 11,251 | 338,570 | |||||||||||||||
Provision (credit) for loan losses for loans acquired with deteriorated credit quality | (5,907 | ) | (138,480 | ) | 75,586 | — | (68,801 | ) | ||||||||||||
Recoveries | 2,496 | 40 | 7,670 | 4,026 | 14,232 | |||||||||||||||
567,703 | 3,590,498 | 1,016,203 | 38,810 | 5,213,214 | ||||||||||||||||
Loans charged off | (1,000 | ) | — | (320,006 | ) | (10,269 | ) | (331,275 | ) | |||||||||||
Ending Balance | $ | 566,703 | $ | 3,590,498 | $ | 696,197 | $ | 28,541 | $ | 4,881,939 | ||||||||||
Amount allocated to: | ||||||||||||||||||||
Legacy Loans: | ||||||||||||||||||||
Individually evaluated for impairment | $ | 185,846 | $ | 1,385,160 | $ | — | $ | — | $ | 1,571,006 | ||||||||||
Other loans not individually evaluated | 379,361 | 1,926,498 | 512,872 | 29,396 | 2,848,127 | |||||||||||||||
Acquired Loans: | ||||||||||||||||||||
Individually evaluated for impairment | 279,036 | — | 183,770 | — | 462,806 | |||||||||||||||
Ending balance | $ | 844,243 | $ | 3,311,658 | $ | 696,642 | $ | 29,396 | $ | 4,881,939 | ||||||||||
March 31, 2013 | Real Estate | Commercial | Boats | Other | Total | |||||||||||||||
Consumer | ||||||||||||||||||||
Beginning balance | $ | 2,826,584 | $ | 755,954 | $ | 248,928 | $ | 133,881 | $ | 3,965,347 | ||||||||||
General provision for loan losses | 22,653 | 113,670 | (7,969 | ) | (3,354 | ) | 125,000 | |||||||||||||
Provision for loan losses for loans acquired with deteriorated credit quality | 75,000 | — | — | — | 75,000 | |||||||||||||||
Recoveries | 31,383 | 16,996 | — | 22,674 | 71,053 | |||||||||||||||
2,955,620 | 886,620 | 240,959 | 153,201 | 4,236,400 | ||||||||||||||||
Loans charged off | (67,851 | ) | (102,596 | ) | — | (13,006 | ) | (183,453 | ) | |||||||||||
Ending Balance | $ | 2,887,769 | $ | 784,024 | $ | 240,959 | $ | 140,195 | $ | 4,052,947 | ||||||||||
Amount allocated to: | ||||||||||||||||||||
Legacy Loans: | ||||||||||||||||||||
Individually evaluated for impairment | $ | 25,000 | $ | — | $ | — | $ | — | $ | 25,000 | ||||||||||
Other loans not individually evaluated | 2,471,145 | 784,024 | 240,959 | 140,195 | 3,636,323 | |||||||||||||||
Acquired Loans: | ||||||||||||||||||||
Individually evaluated for impairment | 391,624 | — | — | — | 391,624 | |||||||||||||||
Ending balance | $ | 2,887,769 | $ | 784,024 | $ | 240,959 | $ | 140,195 | $ | 4,052,947 | ||||||||||
Summary of recorded investment in loans related to each balance in the allowance for probable loan losses by portfolio segment and disaggregated on the basis of impairment methodology | ' | |||||||||||||||||||
March 31, 2014 | Commercial | Commercial | Residential | Consumer | Total | |||||||||||||||
Real Estate | Real Estate | |||||||||||||||||||
Legacy loans: | ||||||||||||||||||||
Individually evaluated for impairment with specific reserve | $ | 439,694 | $ | 5,824,940 | $ | — | $ | — | $ | 6,264,634 | ||||||||||
Individually evaluated for impairment without specific reserve | 752,182 | 2,120,282 | 120,478 | — | 2,992,942 | |||||||||||||||
Other loans not individually evaluated | 87,319,319 | 436,230,697 | 99,467,152 | 9,759,318 | 632,776,486 | |||||||||||||||
Acquired loans: | ||||||||||||||||||||
Individually evaluated for impairment with specific reserve subsequent to acquisition (ASC 310-20 at acquisition) | — | 372,048 | 482,631 | — | 854,679 | |||||||||||||||
Individually evaluated for impairment without specific reserve (ASC 310-20 at acquisition) | 86,813 | — | 515,826 | — | 602,639 | |||||||||||||||
Individually evaluated for impairment without specific reserve (ASC 310-30 at acquisition) | — | — | 232,027 | — | 232,027 | |||||||||||||||
Collectively evaluated for impairment without reserve (ASC 310-20 at acquisition) | 10,085,609 | 95,166,297 | 103,563,849 | 775,542 | 209,591,297 | |||||||||||||||
Ending balance | $ | 98,683,617 | $ | 539,714,264 | $ | 204,381,963 | $ | 10,534,860 | $ | 853,314,704 | ||||||||||
March 31, 2013 | Real Estate | Commerical | Boats | Other | Total | |||||||||||||||
Consumer | ||||||||||||||||||||
Legacy loans: | ||||||||||||||||||||
Individually evaluated for impairment with specific reserve | $ | 499,122 | $ | — | $ | — | $ | — | $ | 499,122 | ||||||||||
Individually evaluated for impairment without specific reserve | 2,783,091 | 1,721,438 | — | — | 4,504,529 | |||||||||||||||
Collectively evaluated for impairment without reserve | 378,858,376 | 91,205,536 | 6,813,884 | 3,058,822 | 479,936,618 | |||||||||||||||
Acquired loans: | ||||||||||||||||||||
Individually evaluated for impairment with specific reserve subsequent to acquisition (ASC 310-20 at acquisition) | 1,603,144 | — | — | — | 1,603,144 | |||||||||||||||
Individually evaluated for impairment without specific reserve (ASC 310-30 at acquisition) | 12,887,376 | 286,810 | — | — | 13,174,186 | |||||||||||||||
Collectively evaluated for impairment without reserve (ASC 310-20 at acquisition) | 104,057,548 | 10,135,885 | — | 936,671 | 115,130,104 | |||||||||||||||
Ending balance | $ | 500,688,657 | $ | 103,349,669 | $ | 6,813,884 | $ | 3,995,493 | $ | 614,847,703 |
OTHER_REAL_ESTATE_OWNED_Tables
OTHER REAL ESTATE OWNED (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
OTHER REAL ESTATE OWNED | ' | ||||||||||
Schedule of transactions in other real estate owned during the period | ' | ||||||||||
Three months ended March 31, 2014 | Legacy | Acquired | Total | ||||||||
Beginning balance | $ | 475,291 | $ | 3,836,051 | $ | 4,311,342 | |||||
Real estate acquired through foreclosure of loans | 334,000 | 257,622 | 591,622 | ||||||||
Real estate sold | — | (512,878 | ) | (512,878 | ) | ||||||
Net realized gain (loss) on sale of real estate owned | — | 203,068 | 203,068 | ||||||||
Ending balance | $ | 809,291 | $ | 3,783,863 | $ | 4,593,154 |
EARNINGS_PER_COMMON_SHARE_Tabl
EARNINGS PER COMMON SHARE (Tables) | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
EARNINGS PER COMMON SHARE | ' | |||||
Schedule of weighted average and dilutive average number of shares | ' | |||||
Three Months Ended | ||||||
March 31, | ||||||
2014 | 2013 | |||||
Weighted average number of shares | 10,780,141 | 6,848,505 | ||||
Dilutive average number of shares | 10,942,110 | 6,950,749 |
FAIR_VALUE_MEASUREMENT_Tables
FAIR VALUE MEASUREMENT (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
FAIR VALUE MEASUREMENT | ' | ||||||||||||||||
Schedule of assets and liabilities measured at fair value on a recurring basis | ' | ||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||||||||||||||||
At March 31, 2014 (In thousands) | |||||||||||||||||
Quoted Prices in | Other | Significant | Total Changes | ||||||||||||||
Active Markets for | Observable | Unobservable | in Fair Values | ||||||||||||||
Identical Assets | Inputs | Inputs | Included in | ||||||||||||||
Carrying Value | (Level 1) | (Level 2) | (Level 3) | Period Earnings | |||||||||||||
Availabe-for-sale: | |||||||||||||||||
Treasury securities | $ | 1,499 | $ | 1,499 | $ | — | $ | — | $ | — | |||||||
U.S. government agency | 42,099 | — | 42,099 | — | — | ||||||||||||
Municipal securities | 60,589 | — | 60,589 | — | — | ||||||||||||
FHLMC MBS | 4,207 | — | 4,207 | — | — | ||||||||||||
FNMA MBS | 18,338 | — | 18,338 | — | — | ||||||||||||
GNMA MBS | 38,568 | — | 38,568 | — | — | ||||||||||||
SBA loan pools | 6,794 | — | 6,794 | — | — | ||||||||||||
Total recurring assets at fair value | $ | 172,094 | $ | 1,499 | $ | 170,595 | $ | — | $ | — | |||||||
At December 31, 2013 (In thousands) | |||||||||||||||||
Quoted Prices in | Other | Significant | Total Changes | ||||||||||||||
Active Markets for | Observable | Unobservable | in Fair Values | ||||||||||||||
Identical Assets | Inputs | Inputs | Included in | ||||||||||||||
Carrying Value | (Level 1) | (Level 2) | (Level 3) | Period Earnings | |||||||||||||
Availabe-for-sale: | |||||||||||||||||
Treasury securities | $ | 1,250 | $ | 1,250 | $ | — | $ | — | $ | — | |||||||
U.S. government agency | 40,735 | — | 40,735 | — | — | ||||||||||||
Municipal securities | 59,267 | — | 59,267 | — | — | ||||||||||||
FHLMC MBS | 5,206 | — | 5,206 | — | — | ||||||||||||
FNMA MBS | 18,703 | — | 18,703 | — | — | ||||||||||||
GNMA MBS | 39,921 | — | 39,921 | — | — | ||||||||||||
SBA loan pools | 7,088 | — | 7,088 | — | — | ||||||||||||
Total investment securities available for sale | 172,170 | 1,250 | 170,920 | — | — | ||||||||||||
Sallie Mae equity securities | 414 | 414 | — | — | — | ||||||||||||
Total recurring assets at fair value | $ | 172,584 | $ | 1,664 | $ | 170,920 | $ | — | $ | — | |||||||
Schedule of assets and liabilities measured at fair value on a nonrecurring basis | ' | ||||||||||||||||
At March 31, 2014 (In thousands) | |||||||||||||||||
Quoted Prices in | Other | Significant | |||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||
Carrying Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Impaired Loans | |||||||||||||||||
Legacy: | $ | 7,687 | $ | — | $ | — | $ | 7,687 | |||||||||
Acquired: | 1,233 | — | — | 1,233 | |||||||||||||
Total Impaired Loans | 8,920 | — | — | 8,920 | |||||||||||||
Other real estate owned: | |||||||||||||||||
Legacy: | 809 | — | — | 809 | |||||||||||||
Acquired: | 3,784 | — | — | 3,784 | |||||||||||||
Total other real estate owned: | 4,593 | — | — | 4,593 | |||||||||||||
Total | $ | 13,513 | $ | — | $ | — | $ | 13,513 | |||||||||
At December 31, 2013 (In thousands) | |||||||||||||||||
Quoted Prices in | Other | Significant | |||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||
Carrying Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Impaired Loans | |||||||||||||||||
Legacy: | $ | 9,723 | $ | — | $ | — | $ | 9,723 | |||||||||
Acquired: | 1,296 | — | — | 1,296 | |||||||||||||
Total Impaired Loans | 11,019 | — | — | 11,019 | |||||||||||||
Other real estate owned: | |||||||||||||||||
Legacy: | 475 | — | — | $ | 475 | ||||||||||||
Acquired: | 3,836 | — | — | 3,836 | |||||||||||||
Total other real estate owned: | 4,311 | — | — | 4,311 | |||||||||||||
Total | $ | 15,330 | $ | — | $ | — | $ | 15,330 | |||||||||
Schedule of estimated fair value of financial instruments | ' | ||||||||||||||||
March 31, 2014 (In thousands) | |||||||||||||||||
Quoted Prices | Significant | Significant | |||||||||||||||
Total | in Active | Other | Other | ||||||||||||||
Carrying | Estimated | Markets for | Observable | Unobservable | |||||||||||||
Amount | Fair | Identical Assets | Inputs | Inputs | |||||||||||||
(000’s) | Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 54,406 | $ | 54,406 | $ | 54,406 | $ | — | $ | — | |||||||
Loans receivable, net | 849,430 | 863,985 | — | — | 863,985 | ||||||||||||
Loans held for sale | 1,682 | 1,682 | — | 1,682 | — | ||||||||||||
Investment securities available for sale | 172,094 | 172,094 | 1,499 | 170,595 | — | ||||||||||||
Equity Securities at cost | 4,304 | 4,304 | — | 4,304 | — | ||||||||||||
Bank Owned Life Insurance | 30,788 | 30,788 | — | 30,788 | — | ||||||||||||
Accrued interest receivable | 3,131 | 3,131 | — | 906 | 2,225 | ||||||||||||
Liabilities: | |||||||||||||||||
Deposits: | |||||||||||||||||
Non-interest-bearing | 234,512 | 234,512 | — | 234,512 | — | ||||||||||||
Interest bearing | 773,640 | 779,087 | — | 779,087 | — | ||||||||||||
Short term borrowings | 38,194 | 38,194 | — | 38,194 | — | ||||||||||||
Long term borrowings | 6,072 | 6,072 | — | 6,072 | — | ||||||||||||
Accrued Interest payable | 242 | 242 | — | 242 | — | ||||||||||||
December 31, 2013 (In thousands) | |||||||||||||||||
Quoted Prices | Significant | Significant | |||||||||||||||
Total | in Active | Other | Other | ||||||||||||||
Carrying | Estimated | Markets for | Observable | Unobservable | |||||||||||||
Amount | Fair | Identical Assets | Inputs | Inputs | |||||||||||||
(000’s) | Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 29,058 | $ | 29,058 | $ | 29,058 | $ | — | $ | — | |||||||
Loans receivable, net | 847,249 | 860,458 | — | — | 860,458 | ||||||||||||
Loans held for sale | 2,075 | 2,075 | — | 2,075 | — | ||||||||||||
Investment securities available for sale | 172,170 | 172,170 | 1,250 | 170,920 | — | ||||||||||||
Equity Securities at cost | 5,670 | 5,670 | 414 | 5,256 | — | ||||||||||||
Bank Owned Life Insurance | 30,577 | 30,577 | — | 30,577 | — | ||||||||||||
Accrued interest receivable | 3,433 | 3,433 | — | 1,088 | 2,345 | ||||||||||||
Liabilities: | |||||||||||||||||
Deposits: | |||||||||||||||||
Non-interest-bearing | 228,734 | 228,734 | — | 228,734 | — | ||||||||||||
Interest bearing | 745,626 | 751,703 | — | 751,703 | — | ||||||||||||
Short term borrowings | 49,530 | 49,530 | — | 49,530 | — | ||||||||||||
Long term borrowings | 6,093 | 6,093 | — | 6,093 | — | ||||||||||||
Accrued Interest payable | 265 | 265 | — | 265 | — | ||||||||||||
POINTER_RIDGE_OFFICE_INVESTMEN2
POINTER RIDGE OFFICE INVESTMENT, LLC (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Condensed Balance Sheets | ' | ' | ' |
Liabilities | $1,063,389,658 | ' | $1,040,673,806 |
Equity | 129,547,808 | ' | 126,549,318 |
Condensed Statements of Income | ' | ' | ' |
Net income | 1,814,367 | 1,273,353 | ' |
Pointer Ridge | ' | ' | ' |
Pointer Ridge Office Investment, LLC | ' | ' | ' |
Ownership percentage | 62.50% | ' | ' |
Condensed Balance Sheets | ' | ' | ' |
Current assets | 255,629 | ' | 286,206 |
Non-current assets | 6,573,777 | ' | 6,622,560 |
Liabilities | 6,086,650 | ' | 6,108,972 |
Equity | 742,756 | ' | 799,794 |
Condensed Statements of Income | ' | ' | ' |
Revenue | 238,991 | 224,367 | ' |
Expenses | 296,030 | 259,286 | ' |
Net income | ($57,039) | ($34,919) | ' |
ACQUISITION_OF_WSB_HOLDINGS_IN2
ACQUISITION OF WSB HOLDINGS, INC. (Details) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | |||
Mar. 31, 2014 | Dec. 31, 2013 | 10-May-13 | Sep. 30, 2013 | 10-May-13 | Sep. 30, 2013 | 10-May-13 | |
WSB Holdings | WSB Holdings | WSB Holdings | WSB Holdings | WSB Holdings | |||
Fair Value Adjustments | Fair Value Adjustments | As Recorded by WSB Holdings, Inc. | |||||
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 | ' | ' | 5,576,699 | ' | ' | ' | 5,576,699 |
Federal funds sold | ' | ' | 16,303,692 | ' | -16,966,208 | ' | 33,269,900 |
Total cash and cash equivalents | ' | ' | 21,880,391 | ' | -16,966,208 | ' | 38,846,599 |
Investment securities available for sale-at fair value | ' | ' | 79,374,701 | ' | -101,654 | 849,118 | 79,476,355 |
Loans, net of deferred fees and costs | ' | ' | 162,941,102 | ' | -14,263,180 | 102,484 | 177,204,282 |
Allowance for loan losses | ' | ' | ' | ' | 2,767,274 | ' | -2,767,274 |
Premises and equipment | ' | ' | 10,379,053 | ' | 5,673,151 | ' | 4,705,902 |
Accrued interest receivable | ' | ' | 886,413 | ' | ' | ' | 886,413 |
Deferred income taxes | ' | ' | 11,402,309 | ' | 4,005,790 | 2,949 | 7,396,519 |
Bank owned life insurance | ' | ' | 12,986,817 | ' | ' | ' | 12,986,817 |
Other real estate owned | ' | ' | 4,232,482 | ' | -993,476 | -8,310 | 5,225,958 |
Core deposit intangible | ' | ' | 2,434,723 | ' | 2,434,723 | ' | ' |
Other assets | ' | ' | 3,758,688 | ' | -567,850 | ' | 4,326,538 |
Total assets | ' | ' | 310,276,679 | ' | -18,011,430 | ' | 328,288,109 |
Deposits | ' | ' | ' | ' | ' | ' | ' |
Non-interest bearing | ' | ' | 10,863,874 | ' | ' | ' | 10,863,874 |
Interest bearing | ' | ' | 205,330,841 | ' | 955,452 | ' | 204,375,389 |
Total deposits | ' | ' | 216,194,715 | ' | 955,452 | ' | 215,239,263 |
Long term borrowings | ' | ' | 60,250,568 | ' | 4,250,568 | ' | 56,000,000 |
Accrued interest payable | ' | ' | 246,416 | ' | ' | ' | 246,416 |
Other liabilities | ' | ' | 3,097,793 | ' | 118,066 | ' | 2,979,727 |
Total liabilities | ' | ' | 279,789,492 | ' | 5,324,086 | ' | 274,465,406 |
Net identifiable assets acquired over (under) assumed | ' | ' | ' | ' | ' | ' | ' |
Purchase price in excess of net assets acquired | ' | ' | 30,487,187 | ' | -23,335,516 | ' | 53,822,703 |
Goodwill | 7,793,665 | 7,793,665 | 7,159,875 | ' | 7,159,875 | ' | ' |
Net assets acquired over liabilities assumed | ' | ' | 37,647,062 | ' | -16,175,641 | ' | 53,822,703 |
Income tax rate used to record deferred tax asset at fair value (as a percent) | ' | ' | ' | ' | 39.45% | ' | ' |
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 stockholders | ' | ' | 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 | ' | ' | ' | ' |
Expenses not accrued for and paid by Old Line Bank | ' | ' | -118,066 | ' | ' | ' | ' |
Final purchase price for WSB acquisition | ' | ' | 37,647,062 | ' | ' | ' | ' |
Measurement period adjustment to goodwill | $0 | ' | ' | $946,241 | $946,241 | ' | ' |
Number of commercial land loans | ' | ' | ' | ' | ' | 1 | ' |
INVESTMENT_SECURITIES_Details
INVESTMENT SECURITIES (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Investment securities | ' | ' |
Amortized cost | $175,184,244 | $177,870,224 |
Gross unrealized gains | 1,231,580 | 966,392 |
Gross unrealized losses | -4,321,477 | -6,666,840 |
Estimated fair value | 172,094,347 | 172,169,776 |
U. S. treasury | ' | ' |
Investment securities | ' | ' |
Amortized cost | 1,502,168 | 1,249,831 |
Gross unrealized gains | ' | 156 |
Gross unrealized losses | -2,918 | ' |
Estimated fair value | 1,499,250 | 1,249,987 |
U.S. government agency | ' | ' |
Investment securities | ' | ' |
Amortized cost | 43,738,979 | 42,942,107 |
Gross unrealized gains | 1,974 | ' |
Gross unrealized losses | -1,641,614 | -2,206,975 |
Estimated fair value | 42,099,339 | 40,735,132 |
Municipal securities | ' | ' |
Investment securities | ' | ' |
Amortized cost | 61,085,196 | 61,190,506 |
Gross unrealized gains | 838,679 | 601,327 |
Gross unrealized losses | -1,334,774 | -2,525,198 |
Estimated fair value | 60,589,101 | 59,266,635 |
FHLMC certificates | ' | ' |
Investment securities | ' | ' |
Amortized cost | 4,189,100 | 5,214,835 |
Gross unrealized gains | 72,304 | 75,950 |
Gross unrealized losses | -54,181 | -84,819 |
Estimated fair value | 4,207,223 | 5,205,966 |
FNMA certificates | ' | ' |
Investment securities | ' | ' |
Amortized cost | 18,510,992 | 19,055,521 |
Gross unrealized gains | 192,218 | 161,209 |
Gross unrealized losses | -365,510 | -513,728 |
Estimated fair value | 18,337,700 | 18,703,002 |
GNMA certificates | ' | ' |
Investment securities | ' | ' |
Amortized cost | 39,166,237 | 40,878,372 |
Gross unrealized gains | 126,405 | 127,750 |
Gross unrealized losses | -724,533 | -1,084,896 |
Estimated fair value | 38,568,109 | 39,921,226 |
SBA loan pools | ' | ' |
Investment securities | ' | ' |
Amortized cost | 6,991,572 | 7,339,052 |
Gross unrealized losses | -197,947 | -251,224 |
Estimated fair value | $6,793,625 | $7,087,828 |
INVESTMENT_SECURITIES_Details_
INVESTMENT SECURITIES (Details 2) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
item | item | ||
Investment securities | ' | ' | ' |
Less than 12 months, Fair value | $100,208,485 | ' | $118,297,419 |
Less than 12 months, Unrealized losses | 3,104,686 | ' | 5,469,648 |
12 Months or More, Fair value | 25,234,960 | ' | 15,425,560 |
12 Months or More, Unrealized losses | 1,216,791 | ' | 1,197,192 |
Total, Fair value | 125,443,445 | ' | 133,722,979 |
Total, Unrealized losses | 4,321,477 | ' | 6,666,840 |
Gross realized gains and proceeds from sales or calls of investment securities | ' | ' | ' |
Number of securities in an unrealized loss position for greater than 12 months | 45 | ' | 26 |
Number of securities in an unrealized loss position for less than 12 months | 165 | ' | 120 |
Gross realized gains from the sale or call of investment securities | 0 | 631,429 | ' |
Gross realized losses from the sale or call of investment securities | 0 | 0 | ' |
Proceeds from sales, maturities or calls of investment securities and principal pay-downs | 3,900,000 | 23,327,613 | ' |
Proceeds from principal pay-downs | 2,700,000 | ' | ' |
U. S. treasury | ' | ' | ' |
Investment securities | ' | ' | ' |
Less than 12 months, Fair value | 1,499,250 | ' | ' |
Less than 12 months, Unrealized losses | 2,918 | ' | ' |
Total, Fair value | 1,499,250 | ' | ' |
Total, Unrealized losses | 2,918 | ' | ' |
U.S. government agency | ' | ' | ' |
Investment securities | ' | ' | ' |
Less than 12 months, Fair value | 39,860,865 | ' | 39,324,082 |
Less than 12 months, Unrealized losses | 1,572,301 | ' | 2,107,099 |
12 Months or More, Fair value | 1,437,900 | ' | 1,411,050 |
12 Months or More, Unrealized losses | 69,313 | ' | 99,876 |
Total, Fair value | 41,298,765 | ' | 40,735,132 |
Total, Unrealized losses | 1,641,614 | ' | 2,206,975 |
Municipal securities | ' | ' | ' |
Investment securities | ' | ' | ' |
Less than 12 months, Fair value | 14,604,173 | ' | 30,367,222 |
Less than 12 months, Unrealized losses | 394,847 | ' | 1,654,439 |
12 Months or More, Fair value | 16,849,269 | ' | 9,190,578 |
12 Months or More, Unrealized losses | 939,927 | ' | 870,759 |
Total, Fair value | 31,453,442 | ' | 39,557,800 |
Total, Unrealized losses | 1,334,774 | ' | 2,525,198 |
Mortgage backed securities | ' | ' | ' |
Investment securities | ' | ' | ' |
Less than 12 months, Fair value | 37,450,572 | ' | 41,518,287 |
Less than 12 months, Unrealized losses | 936,673 | ' | 1,456,886 |
12 Months or More, Fair value | 6,947,791 | ' | 4,823,932 |
12 Months or More, Unrealized losses | 207,551 | ' | 226,557 |
Total, Fair value | 44,398,363 | ' | 46,342,219 |
Total, Unrealized losses | 1,144,224 | ' | 1,683,443 |
SBA loan pools | ' | ' | ' |
Investment securities | ' | ' | ' |
Less than 12 months, Fair value | 6,793,625 | ' | 7,087,828 |
Less than 12 months, Unrealized losses | 197,947 | ' | 251,224 |
Total, Fair value | 6,793,625 | ' | 7,087,828 |
Total, Unrealized losses | $197,947 | ' | $251,224 |
INVESTMENT_SECURITIES_Details_1
INVESTMENT SECURITIES (Details 3) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Available for Sale, Amortized cost | ' | ' |
Within one year | $1,734,062 | ' |
Over one to five years | 10,194,377 | ' |
Over five to ten years | 47,163,392 | ' |
Over ten years | 116,092,413 | ' |
Total available for sale, Amortized cost | 175,184,244 | 177,870,224 |
Available for Sale, Fair value | ' | ' |
Within one year | 1,734,124 | ' |
Over one to five years | 10,099,615 | ' |
Over five to ten years | 45,862,144 | ' |
Over ten years | 114,398,464 | ' |
Estimated fair value | 172,094,347 | 172,169,776 |
Pledged securities | ' | ' |
Amortized cost | 44,268,035 | ' |
Fair value | $37,937,586 | ' |
LOANS_Details
LOANS (Details) (USD $) | 3 Months Ended | |||
Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | |
item | ||||
Held-for-investment | ' | ' | ' | ' |
Total before allowance and deferred loan cost | $853,314,704 | $851,157,629 | $614,847,703 | ' |
Allowance for loan losses | -4,881,939 | -4,929,213 | -4,052,947 | -3,965,347 |
Deferred loan costs, net | 996,956 | 1,020,174 | ' | ' |
Total Loans | 849,429,721 | 847,248,590 | ' | ' |
Number of board of directors and executives forming loan committee | 7 | ' | ' | ' |
Commercial Real Estate | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 539,714,264 | 534,300,000 | ' | ' |
Allowance for loan losses | -3,311,658 | -3,569,395 | ' | ' |
Commercial Real Estate | Owner Occupied | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 196,716,148 | 193,208,087 | ' | ' |
Commercial Real Estate | Owner Occupied | Maximum | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Loan to value ratio (as a percent) | 85.00% | ' | ' | ' |
Commercial Real Estate | Investment | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 223,029,819 | 216,280,347 | ' | ' |
Commercial Real Estate | Investment | Maximum | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Loan to value ratio (as a percent) | 75.00% | ' | ' | ' |
Commercial Real Estate | Hospitality | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 76,528,594 | 75,837,626 | ' | ' |
Commercial Real Estate | Land and A&D | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 43,439,703 | 48,994,984 | ' | ' |
Residential Real Estate | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 204,381,963 | ' | 500,688,657 | ' |
Allowance for loan losses | -696,642 | -841,234 | -2,887,769 | -2,826,584 |
Residential Real Estate | Minimum | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Credit score required | 660 | ' | ' | ' |
Credit score required for loans sold in secondary market | 640 | ' | ' | ' |
Credit score required for loans sold in secondary market to veterans | 620 | ' | ' | ' |
Residential Real Estate | Maximum | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Loan to value ratio (as a percent) | 80.00% | ' | ' | ' |
Maturity period of short duration loans | '9 months | ' | ' | ' |
Residential Real Estate | First Lien-Investment | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 73,170,866 | 73,658,530 | ' | ' |
Residential Real Estate | First Lien-Owner Occupied | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 75,664,330 | 76,157,441 | ' | ' |
Residential Real Estate | Residential Land and A&D | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 33,341,981 | 33,570,233 | ' | ' |
Residential Real Estate | HELOC and Jr. Liens | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 22,204,786 | 21,661,623 | ' | ' |
Residential Real Estate | Residential | Maximum | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Debt to income ratio required (as a percent) | 43.00% | ' | ' | ' |
Residential Real Estate | Construction | Maximum | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Loan to value ratio (as a percent) | 80.00% | ' | ' | ' |
Maturity period of short duration loans | '9 months | ' | ' | ' |
Residential Real Estate | Federal Housing Administration | Residential | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Loans, permissible amount under federal regulations | 625,500 | ' | ' | ' |
Single-family residential loans | Fannie Mae and Freddie Mac for secondary market resale | Residential | Minimum | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Loans, permissible amount under federal regulations | 417,000 | ' | ' | ' |
Single-family residential loans | Fannie Mae and Freddie Mac for secondary market resale | Residential | Maximum | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Loans, permissible amount under federal regulations | 625,500 | ' | ' | ' |
Commercial & Industrial Loans | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 98,683,617 | 100,790,390 | ' | ' |
Consumer | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 10,534,860 | 10,998,368 | ' | ' |
Allowance for loan losses | -29,396 | -23,533 | ' | ' |
Consumer | Maximum | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Debt to income ratio required (as a percent) | 40.00% | ' | ' | ' |
Commercial | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 98,683,617 | ' | 103,349,669 | ' |
Allowance for loan losses | -844,243 | -495,051 | -784,024 | -755,954 |
Minimum threshold amount of loan for which financial condition and operating performance of the borrower is monitored | 250,000 | ' | ' | ' |
Legacy | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 642,482,242 | 630,290,012 | ' | ' |
Allowance for loan losses | -4,419,133 | -4,397,552 | ' | ' |
Deferred loan costs, net | 998,266 | 1,021,167 | ' | ' |
Total Loans | 639,061,375 | 626,913,627 | ' | ' |
Number of components segmented in loan portfolio | 2 | ' | ' | ' |
Legacy | Commercial Real Estate | Owner Occupied | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 167,003,364 | 163,105,356 | ' | ' |
Legacy | Commercial Real Estate | Investment | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 172,072,391 | 162,188,671 | ' | ' |
Legacy | Commercial Real Estate | Hospitality | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 68,063,766 | 67,291,387 | ' | ' |
Legacy | Commercial Real Estate | Land and A&D | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 36,968,752 | 40,595,806 | ' | ' |
Legacy | Residential Real Estate | First Lien-Investment | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 45,344,442 | 45,294,434 | ' | ' |
Legacy | Residential Real Estate | First Lien-Owner Occupied | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 15,677,156 | 13,909,939 | ' | ' |
Legacy | Residential Real Estate | Residential Land and A&D | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 20,172,345 | 19,845,291 | ' | ' |
Legacy | Residential Real Estate | HELOC and Jr. Liens | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 18,909,513 | 18,302,560 | ' | ' |
Legacy | Commercial & Industrial Loans | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 88,511,195 | 89,629,043 | ' | ' |
Legacy | Consumer | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 9,759,318 | 10,127,525 | ' | ' |
Acquired | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 210,832,462 | 220,867,617 | ' | ' |
Allowance for loan losses | -462,806 | -531,661 | ' | ' |
Deferred loan costs, net | -1,310 | -993 | ' | ' |
Total Loans | 210,368,346 | 220,334,963 | ' | ' |
Acquired | Commercial Real Estate | Owner Occupied | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 29,712,784 | 30,102,731 | ' | ' |
Acquired | Commercial Real Estate | Investment | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 50,957,428 | 54,091,676 | ' | ' |
Acquired | Commercial Real Estate | Hospitality | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 8,464,828 | 8,546,239 | ' | ' |
Acquired | Commercial Real Estate | Land and A&D | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 6,470,951 | 8,399,178 | ' | ' |
Acquired | Residential Real Estate | First Lien-Investment | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 27,826,424 | 28,364,096 | ' | ' |
Acquired | Residential Real Estate | First Lien-Owner Occupied | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 59,987,174 | 62,247,502 | ' | ' |
Acquired | Residential Real Estate | Residential Land and A&D | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 13,169,636 | 13,724,942 | ' | ' |
Acquired | Residential Real Estate | HELOC and Jr. Liens | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 3,295,273 | 3,359,063 | ' | ' |
Acquired | Commercial & Industrial Loans | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Total before allowance and deferred loan cost | 10,172,422 | 11,161,347 | ' | ' |
Acquired | Consumer | ' | ' | ' | ' |
Held-for-investment | ' | ' | ' | ' |
Total before allowance and deferred loan cost | $775,542 | $870,843 | ' | ' |
LOANS_Details_2
LOANS (Details 2) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Aging analysis of the loan held for investment portfolio | ' | ' |
Current | $839,943,108 | $834,646,539 |
Accruing past due loans: | ' | ' |
Total 30-89 days past due | 4,600,065 | 6,037,755 |
Total 90 or more days past due | 707,963 | 1,654,560 |
Total accruing past due loans | 5,308,028 | 7,692,315 |
Total Recorded Investment Non-accruing past due loans: | 8,063,568 | 8,818,775 |
Total Loans | 849,429,721 | 847,248,590 |
Commercial Real Estate | Owner Occupied | ' | ' |
Accruing past due loans: | ' | ' |
Total 30-89 days past due | 752,732 | 882,423 |
Total 90 or more days past due | 309,767 | 309,767 |
Total Recorded Investment Non-accruing past due loans: | 1,849,685 | 1,849,685 |
Commercial Real Estate | Investment | ' | ' |
Accruing past due loans: | ' | ' |
Total 30-89 days past due | ' | 534,694 |
Total Recorded Investment Non-accruing past due loans: | 380,265 | 376,050 |
Commercial Real Estate | Hospitality | ' | ' |
Accruing past due loans: | ' | ' |
Total Recorded Investment Non-accruing past due loans: | 4,473,345 | 4,473,345 |
Residential Real Estate | Residential First-Investment | ' | ' |
Accruing past due loans: | ' | ' |
Total 30-89 days past due | 896,831 | 1,366,423 |
Total Recorded Investment Non-accruing past due loans: | 120,478 | 123,183 |
Residential Real Estate | First Lien-Owner Occupied | ' | ' |
Accruing past due loans: | ' | ' |
Total 30-89 days past due | 1,774,279 | 2,584,408 |
Total 90 or more days past due | 167,792 | 429,144 |
Total Recorded Investment Non-accruing past due loans: | 350,510 | 1,081,957 |
Residential Real Estate | Residential Land and A&D | ' | ' |
Accruing past due loans: | ' | ' |
Total 30-89 days past due | 1,005,478 | 35,162 |
Total 90 or more days past due | ' | 915,649 |
Total Recorded Investment Non-accruing past due loans: | 130,332 | 130,532 |
Commercial | ' | ' |
Accruing past due loans: | ' | ' |
Total 30-89 days past due | 86,196 | 620,537 |
Total 90 or more days past due | 218,272 | ' |
Total Recorded Investment Non-accruing past due loans: | 752,182 | 769,597 |
Consumer | ' | ' |
Accruing past due loans: | ' | ' |
Total 30-89 days past due | 84,549 | 14,108 |
Total 90 or more days past due | 12,132 | ' |
Total Recorded Investment Non-accruing past due loans: | 6,771 | 14,426 |
Legacy | ' | ' |
Aging analysis of the loan held for investment portfolio | ' | ' |
Current | 633,426,455 | 620,559,847 |
Accruing past due loans: | ' | ' |
Total 30-89 days past due | 1,622,922 | 1,574,115 |
Total 90 or more days past due | 230,404 | ' |
Total accruing past due loans | 1,853,326 | 1,574,115 |
Total Recorded Investment Non-accruing past due loans: | 7,202,461 | 8,156,050 |
Total Loans | 639,061,375 | 626,913,627 |
Legacy | Commercial Real Estate | Owner Occupied | ' | ' |
Accruing past due loans: | ' | ' |
Total 30-89 days past due | 752,732 | 828,388 |
Total Recorded Investment Non-accruing past due loans: | 1,849,685 | 1,849,685 |
Legacy | Commercial Real Estate | Hospitality | ' | ' |
Accruing past due loans: | ' | ' |
Total Recorded Investment Non-accruing past due loans: | 4,473,345 | 4,473,345 |
Legacy | Residential Real Estate | Residential First-Investment | ' | ' |
Accruing past due loans: | ' | ' |
Total 30-89 days past due | 517,494 | 521,405 |
Total Recorded Investment Non-accruing past due loans: | 120,478 | 123,183 |
Legacy | Residential Real Estate | First Lien-Owner Occupied | ' | ' |
Accruing past due loans: | ' | ' |
Total Recorded Investment Non-accruing past due loans: | ' | 925,814 |
Legacy | Residential Real Estate | Residential Land and A&D | ' | ' |
Accruing past due loans: | ' | ' |
Total 30-89 days past due | 269,137 | ' |
Legacy | Commercial | ' | ' |
Accruing past due loans: | ' | ' |
Total 30-89 days past due | ' | 224,322 |
Total 90 or more days past due | 218,272 | ' |
Total Recorded Investment Non-accruing past due loans: | 752,182 | 769,597 |
Legacy | Consumer | ' | ' |
Accruing past due loans: | ' | ' |
Total 30-89 days past due | 83,559 | ' |
Total 90 or more days past due | 12,132 | ' |
Total Recorded Investment Non-accruing past due loans: | 6,771 | 14,426 |
Acquired | ' | ' |
Aging analysis of the loan held for investment portfolio | ' | ' |
Current | 206,516,653 | 214,086,692 |
Accruing past due loans: | ' | ' |
Total 30-89 days past due | 2,977,143 | 4,463,640 |
Total 90 or more days past due | 477,559 | 1,654,560 |
Total accruing past due loans | 3,454,702 | 6,118,200 |
Total Recorded Investment Non-accruing past due loans: | 861,107 | 662,725 |
Total Loans | 210,368,346 | 220,334,963 |
Acquired | Commercial Real Estate | Owner Occupied | ' | ' |
Accruing past due loans: | ' | ' |
Total 30-89 days past due | ' | 54,035 |
Total 90 or more days past due | 309,767 | 309,767 |
Acquired | Commercial Real Estate | Investment | ' | ' |
Accruing past due loans: | ' | ' |
Total 30-89 days past due | ' | 534,694 |
Total Recorded Investment Non-accruing past due loans: | 380,265 | 376,050 |
Acquired | Residential Real Estate | Residential First-Investment | ' | ' |
Accruing past due loans: | ' | ' |
Total 30-89 days past due | 379,337 | 845,018 |
Acquired | Residential Real Estate | First Lien-Owner Occupied | ' | ' |
Accruing past due loans: | ' | ' |
Total 30-89 days past due | 1,774,279 | 2,584,408 |
Total 90 or more days past due | 167,792 | 429,144 |
Total Recorded Investment Non-accruing past due loans: | 350,510 | 156,143 |
Acquired | Residential Real Estate | Residential Land and A&D | ' | ' |
Accruing past due loans: | ' | ' |
Total 30-89 days past due | 736,341 | 35,162 |
Total 90 or more days past due | ' | 915,649 |
Total Recorded Investment Non-accruing past due loans: | 130,332 | 130,532 |
Acquired | Commercial | ' | ' |
Accruing past due loans: | ' | ' |
Total 30-89 days past due | 86,196 | 396,215 |
Acquired | Consumer | ' | ' |
Accruing past due loans: | ' | ' |
Total 30-89 days past due | $990 | $14,108 |
LOANS_Details_3
LOANS (Details 3) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Unpaid Principal Balance | ' | ' |
Total | $12,106,713 | $14,849,395 |
Recorded Investment | ' | ' |
Total | 10,953,349 | 13,441,487 |
Related Allowance | ' | ' |
Total | 2,033,812 | 2,421,894 |
Average Recorded Investment | ' | ' |
Total | 12,310,896 | 13,670,027 |
Interest Income Recognized | ' | ' |
Total | 5,293 | 464,178 |
Legacy | ' | ' |
Unpaid Principal Balance | ' | ' |
Total | 9,257,576 | 11,613,569 |
Recorded Investment | ' | ' |
Total | 9,257,576 | 11,613,569 |
Related Allowance | ' | ' |
Total | 1,571,006 | 1,890,233 |
Average Recorded Investment | ' | ' |
Total | 9,284,045 | 11,828,819 |
Interest Income Recognized | ' | ' |
Total | ' | 397,146 |
Legacy | Land and A&D | ' | ' |
Unpaid Principal Balance | ' | ' |
With an allowance recorded | 439,694 | ' |
Recorded Investment | ' | ' |
With an allowance recorded | 439,694 | ' |
Related Allowance | ' | ' |
Total | 185,846 | ' |
Average Recorded Investment | ' | ' |
With an allowance recorded | 448,918 | ' |
Legacy | Commercial Real Estate | Owner Occupied | ' | ' |
Unpaid Principal Balance | ' | ' |
With no related allowance recorded | 2,120,282 | 1,849,685 |
With an allowance recorded | ' | 274,516 |
Recorded Investment | ' | ' |
With no related allowance recorded | 2,120,282 | 1,849,685 |
With an allowance recorded | ' | 274,516 |
Related Allowance | ' | ' |
Total | ' | 137,258 |
Average Recorded Investment | ' | ' |
With no related allowance recorded | 2,120,388 | 1,855,418 |
With an allowance recorded | ' | 282,630 |
Interest Income Recognized | ' | ' |
With no related allowance recorded | ' | 70,711 |
With an allowance recorded | ' | 18,177 |
Legacy | Commercial Real Estate | Investment | ' | ' |
Unpaid Principal Balance | ' | ' |
With an allowance recorded | 1,351,595 | 1,363,821 |
Recorded Investment | ' | ' |
With an allowance recorded | 1,351,595 | 1,363,821 |
Related Allowance | ' | ' |
Total | 135,160 | 136,382 |
Average Recorded Investment | ' | ' |
With an allowance recorded | 1,356,616 | 1,385,973 |
Interest Income Recognized | ' | ' |
With an allowance recorded | ' | 63,855 |
Legacy | Commercial Real Estate | Hospitality | ' | ' |
Unpaid Principal Balance | ' | ' |
With an allowance recorded | 4,473,345 | 4,473,345 |
Recorded Investment | ' | ' |
With an allowance recorded | 4,473,345 | 4,473,345 |
Related Allowance | ' | ' |
Total | 1,250,000 | 1,250,000 |
Average Recorded Investment | ' | ' |
With an allowance recorded | 4,473,345 | 4,491,435 |
Interest Income Recognized | ' | ' |
With an allowance recorded | ' | 105,772 |
Legacy | Residential Real Estate | Residential First-Investment | ' | ' |
Unpaid Principal Balance | ' | ' |
With no related allowance recorded | 120,478 | 123,183 |
Recorded Investment | ' | ' |
With no related allowance recorded | 120,478 | 123,183 |
Average Recorded Investment | ' | ' |
With no related allowance recorded | 121,760 | 129,105 |
Legacy | Residential Real Estate | First Lien-Owner Occupied | ' | ' |
Unpaid Principal Balance | ' | ' |
With an allowance recorded | ' | 925,814 |
Recorded Investment | ' | ' |
With an allowance recorded | ' | 925,814 |
Related Allowance | ' | ' |
Total | ' | 167,450 |
Average Recorded Investment | ' | ' |
With an allowance recorded | ' | 931,492 |
Interest Income Recognized | ' | ' |
With an allowance recorded | ' | 16,664 |
Legacy | Commercial | ' | ' |
Unpaid Principal Balance | ' | ' |
With no related allowance recorded | 752,182 | 2,136,376 |
With an allowance recorded | ' | 459,439 |
Recorded Investment | ' | ' |
With no related allowance recorded | 752,182 | 2,136,376 |
With an allowance recorded | ' | 459,439 |
Related Allowance | ' | ' |
Total | ' | 191,753 |
Average Recorded Investment | ' | ' |
With no related allowance recorded | 763,018 | 2,235,110 |
With an allowance recorded | ' | 510,230 |
Interest Income Recognized | ' | ' |
With no related allowance recorded | ' | 90,917 |
With an allowance recorded | ' | 31,018 |
Legacy | Consumer | ' | ' |
Unpaid Principal Balance | ' | ' |
With an allowance recorded | ' | 7,390 |
Recorded Investment | ' | ' |
With an allowance recorded | ' | 7,390 |
Related Allowance | ' | ' |
Total | ' | 7,390 |
Average Recorded Investment | ' | ' |
With an allowance recorded | ' | 7,426 |
Interest Income Recognized | ' | ' |
With an allowance recorded | ' | 32 |
Acquired | ' | ' |
Unpaid Principal Balance | ' | ' |
Total | 2,849,137 | 3,235,826 |
Recorded Investment | ' | ' |
Total | 1,695,773 | 1,827,918 |
Related Allowance | ' | ' |
Total | 462,806 | 531,661 |
Average Recorded Investment | ' | ' |
Total | 3,026,851 | 1,841,208 |
Interest Income Recognized | ' | ' |
Total | 5,293 | 67,032 |
Acquired | Commercial Real Estate | Owner Occupied | ' | ' |
Unpaid Principal Balance | ' | ' |
With no related allowance recorded | ' | 605,314 |
Recorded Investment | ' | ' |
With no related allowance recorded | ' | 579,583 |
Average Recorded Investment | ' | ' |
With no related allowance recorded | ' | 590,677 |
Interest Income Recognized | ' | ' |
With no related allowance recorded | ' | 24,821 |
Acquired | Commercial Real Estate | Investment | ' | ' |
Unpaid Principal Balance | ' | ' |
With an allowance recorded | 372,048 | 372,047 |
Recorded Investment | ' | ' |
With an allowance recorded | 380,265 | 376,050 |
Related Allowance | ' | ' |
Total | 279,036 | 279,037 |
Average Recorded Investment | ' | ' |
With an allowance recorded | 372,048 | 376,047 |
Interest Income Recognized | ' | ' |
With an allowance recorded | ' | 17,509 |
Acquired | Commercial Real Estate | Land and A&D | ' | ' |
Unpaid Principal Balance | ' | ' |
With no related allowance recorded | 1,134,224 | ' |
Average Recorded Investment | ' | ' |
With no related allowance recorded | 1,310,004 | ' |
Acquired | Residential Real Estate | Land and A&D | ' | ' |
Unpaid Principal Balance | ' | ' |
With no related allowance recorded | 232,027 | 1,628,156 |
Recorded Investment | ' | ' |
With no related allowance recorded | 232,027 | 241,624 |
Average Recorded Investment | ' | ' |
With no related allowance recorded | 232,027 | 241,624 |
Acquired | Residential Real Estate | First Lien-Owner Occupied | ' | ' |
Unpaid Principal Balance | ' | ' |
With no related allowance recorded | 541,394 | ' |
With an allowance recorded | 351,600 | 411,891 |
Recorded Investment | ' | ' |
With no related allowance recorded | 515,826 | ' |
With an allowance recorded | 350,510 | 412,742 |
Related Allowance | ' | ' |
Total | 100,000 | 187,109 |
Average Recorded Investment | ' | ' |
With no related allowance recorded | 543,027 | ' |
With an allowance recorded | 351,600 | 414,020 |
Interest Income Recognized | ' | ' |
With no related allowance recorded | 4,552 | ' |
With an allowance recorded | ' | 11,460 |
Acquired | Residential Real Estate | Residential Land and A&D | ' | ' |
Unpaid Principal Balance | ' | ' |
With an allowance recorded | 131,031 | 131,031 |
Recorded Investment | ' | ' |
With an allowance recorded | 130,332 | 130,532 |
Related Allowance | ' | ' |
Total | 83,770 | 65,515 |
Average Recorded Investment | ' | ' |
With an allowance recorded | 131,031 | 130,332 |
Interest Income Recognized | ' | ' |
With an allowance recorded | ' | 8,709 |
Acquired | Commercial | ' | ' |
Unpaid Principal Balance | ' | ' |
With no related allowance recorded | 86,813 | 87,387 |
Recorded Investment | ' | ' |
With no related allowance recorded | 86,813 | 87,387 |
Average Recorded Investment | ' | ' |
With no related allowance recorded | 87,114 | 88,508 |
Interest Income Recognized | ' | ' |
With no related allowance recorded | $741 | $4,533 |
LOANS_Details_4
LOANS (Details 4) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | |
item | item | Restructured loans | Restructured loans | |
item | item | |||
Troubled debt restructurings | ' | ' | ' | ' |
Number of Contracts | ' | ' | 4 | 5 |
Pre-Modification Outstanding Recorded Investment | ' | ' | $602,639 | $666,970 |
Number of loans modified as TDR | 0 | 0 | ' | ' |
Number of loans that have been modified as troubled debt restructurings that defaulted | 0 | ' | ' | ' |
LOANS_Details_5
LOANS (Details 5) (USD $) | 3 Months Ended | 3 Months Ended | ||||
Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | |
Acquired | Acquired | |||||
Accretable Yield | ' | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | ' | ' | $40,771 | ' |
Accreted of fair value discounts | ' | ' | ' | ' | -299,629 | -240,238 |
Reclassification from non-accretable | ' | ' | ' | ' | 236,909 | 240,238 |
Ending balance | ' | ' | ' | ' | 21,949 | ' |
Contractually Required Payments Receivable | 11,884,789 | 12,482,792 | 24,536,848 | 24,930,742 | ' | ' |
Carrying Amount | 8,456,379 | 8,742,777 | 13,174,186 | 13,363,882 | ' | ' |
Change in allowance for loan losses for General Reserves due to exceeding of credit mark | 0 | ' | ' | ' | ' | ' |
Change in allowance for loan losses due to exceeding of credit mark for estimate of loss exposure | $0 | ' | ' | ' | ' | ' |
LOANS_Details_6
LOANS (Details 6) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 |
Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Commercial | Commercial | Consumer | Consumer | Installment and other consumer loans and real estate loans | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Substandard (7) | Substandard (7) | Substandard (7) | Substandard (7) | Substandard (7) | Substandard (7) | Substandard (7) | Substandard (7) | Substandard (7) | Substandard (7) | Substandard (7) | Substandard (7) | Substandard (7) | Substandard (7) | Substandard (7) | Substandard (7) | Substandard (7) | Substandard (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 | 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 | 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 | 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 | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | Acquired | ||||
Owner Occupied | Owner Occupied | Investment | Investment | Hospitality | Hospitality | Land and A&D | Land and A&D | First-Investment | First-Investment | First-Owner Occupied | First-Owner Occupied | Land and A&D | Land and A&D | HELOC and Jr. Liens | HELOC and Jr. Liens | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Commercial | Commercial | Consumer | Consumer | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Commercial | Commercial | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Commercial | Commercial | Consumer | Consumer | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Consumer | Consumer | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Substandard (7) | Substandard (7) | Substandard (7) | Substandard (7) | Substandard (7) | Substandard (7) | Substandard (7) | Substandard (7) | Substandard (7) | Substandard (7) | Substandard (7) | Substandard (7) | Substandard (7) | Substandard (7) | Substandard (7) | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Consumer | Consumer | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Pass (1-5) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Special Mention (6) | Substandard (7) | Substandard (7) | Substandard (7) | Substandard (7) | Substandard (7) | Substandard (7) | Substandard (7) | Substandard (7) | Substandard (7) | Substandard (7) | Substandard (7) | Substandard (7) | Substandard (7) | Substandard (7) | |||||||||||||||||||||||
Owner Occupied | Owner Occupied | Investment | Investment | Hospitality | Hospitality | Land and A&D | Land and A&D | First-Investment | First-Investment | First-Owner Occupied | First-Owner Occupied | Land and A&D | Land and A&D | HELOC and Jr. Liens | HELOC and Jr. Liens | Owner Occupied | Owner Occupied | Investment | Investment | Land and A&D | Land and A&D | First-Investment | First-Investment | First-Owner Occupied | First-Owner Occupied | Land and A&D | Land and A&D | Owner Occupied | Owner Occupied | Investment | Investment | Hospitality | Hospitality | First-Investment | First-Investment | First-Owner Occupied | First-Owner Occupied | Land and A&D | Land and A&D | Owner Occupied | Owner Occupied | Investment | Investment | Hospitality | Hospitality | Land and A&D | Land and A&D | First-Investment | First-Investment | First-Owner Occupied | First-Owner Occupied | Land and A&D | Land and A&D | HELOC and Jr. Liens | HELOC and Jr. Liens | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Commercial | Commercial | Consumer | Consumer | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Commercial | Commercial | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Commercial | Commercial | Consumer | Consumer | Owner Occupied | Owner Occupied | Investment | Investment | Hospitality | Hospitality | Land and A&D | Land and A&D | First-Investment | First-Investment | First-Owner Occupied | First-Owner Occupied | Land and A&D | Land and A&D | HELOC and Jr. Liens | HELOC and Jr. Liens | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Commercial | Commercial | Consumer | Consumer | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Commercial | Commercial | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Commercial | Commercial | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Owner Occupied | Owner Occupied | Investment | Investment | Hospitality | Hospitality | Land and A&D | Land and A&D | First-Investment | First-Investment | First-Owner Occupied | First-Owner Occupied | Land and A&D | Land and A&D | HELOC and Jr. Liens | HELOC and Jr. Liens | Owner Occupied | Owner Occupied | Investment | Investment | Land and A&D | Land and A&D | First-Investment | First-Investment | First-Owner Occupied | First-Owner Occupied | Land and A&D | Land and A&D | Owner Occupied | Owner Occupied | Investment | Investment | Hospitality | Hospitality | First-Investment | First-Investment | First-Owner Occupied | Owner Occupied | Owner Occupied | Investment | Investment | Hospitality | Hospitality | Land and A&D | Land and A&D | First-Investment | First-Investment | First-Owner Occupied | First-Owner Occupied | Land and A&D | Land and A&D | HELOC and Jr. Liens | HELOC and Jr. Liens | Owner Occupied | Owner Occupied | Investment | Investment | Land and A&D | Land and A&D | First-Investment | First-Investment | First-Owner Occupied | First-Owner Occupied | Land and A&D | Owner Occupied | Owner Occupied | Investment | Investment | First-Investment | First-Investment | First-Owner Occupied | First-Owner Occupied | Land and A&D | Land and A&D | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit quality indicators | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss ratio period considered | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Account balance | $853,314,704 | $851,157,629 | $614,847,703 | $539,714,264 | $534,300,000 | $196,716,148 | $193,208,087 | $223,029,819 | $216,280,347 | $76,528,594 | $75,837,626 | $43,439,703 | $48,994,984 | $204,381,963 | $500,688,657 | $73,170,866 | $73,658,530 | $75,664,330 | $76,157,441 | $33,341,981 | $33,570,233 | $22,204,786 | $21,661,623 | $98,683,617 | $103,349,669 | $10,534,860 | $10,998,368 | ' | $820,458,592 | $817,499,916 | $190,270,278 | $187,034,881 | $218,304,500 | $211,056,829 | $72,055,249 | $71,364,282 | $40,010,262 | $45,531,716 | $70,576,989 | $71,167,772 | $73,804,965 | $73,296,814 | $29,746,741 | $30,457,289 | $22,204,786 | $21,661,622 | $92,956,733 | $94,944,770 | $10,528,089 | $10,983,941 | $18,438,838 | $16,415,625 | $3,711,419 | $3,438,754 | $2,259,081 | $2,268,161 | $3,429,441 | $3,463,269 | $1,960,343 | $1,840,045 | $723,492 | $850,074 | $2,801,867 | $2,066,763 | $3,553,195 | $2,488,559 | $14,417,274 | $17,242,088 | $2,734,452 | $2,734,452 | $2,466,238 | $2,955,359 | $4,473,345 | $4,473,345 | $633,534 | $650,711 | $1,135,875 | $2,010,552 | $793,372 | $1,046,181 | $2,173,687 | $3,357,061 | $6,771 | $14,427 | $642,482,242 | $630,290,012 | $167,003,364 | $163,105,356 | $172,072,391 | $162,188,671 | $68,063,766 | $67,291,387 | $36,968,752 | $40,595,806 | $45,344,442 | $45,294,434 | $15,677,156 | $13,909,939 | $20,172,345 | $19,845,291 | $18,909,513 | $18,302,560 | $9,759,318 | $10,127,525 | $620,577,497 | $608,110,719 | $163,542,525 | $159,945,564 | $169,292,647 | $159,392,609 | $63,590,421 | $62,818,042 | $333,782,502 | $37,383,344 | $43,985,676 | $44,064,312 | $15,591,130 | $12,896,971 | $17,731,271 | $17,778,528 | $18,909,513 | $18,302,559 | $84,399,266 | $85,415,692 | $9,752,546 | $10,113,098 | $12,910,995 | $11,057,527 | $1,611,155 | $1,310,107 | $1,428,149 | $1,432,243 | $3,186,250 | $3,212,463 | $1,238,288 | $1,106,938 | $86,027 | $87,154 | $2,441,074 | $2,066,763 | $2,920,052 | $1,841,859 | $8,993,750 | $11,121,766 | $1,849,685 | $1,849,685 | $1,351,595 | $1,363,821 | $4,473,345 | $4,473,345 | $120,478 | $123,183 | $925,812 | $1,191,876 | $2,371,493 | $6,771 | $14,427 | $210,832,462 | $220,867,617 | $29,712,784 | $30,102,731 | $50,957,428 | $54,091,676 | $8,464,828 | $8,546,239 | $6,470,951 | $8,399,178 | $27,826,424 | $28,364,096 | $59,987,174 | $62,247,502 | $13,169,636 | $13,724,942 | $3,295,273 | $3,359,063 | $775,542 | $870,843 | $199,881,095 | $209,389,197 | $26,727,753 | $27,089,317 | $49,011,853 | $51,664,220 | $8,464,828 | $8,546,240 | $6,227,760 | $8,148,372 | $26,591,313 | $27,103,460 | $58,213,835 | $60,399,843 | $12,015,470 | $12,678,761 | $3,295,273 | $3,359,063 | $8,557,467 | $9,529,078 | $775,543 | $870,843 | $5,527,843 | $5,358,098 | $2,100,264 | $2,128,647 | $830,932 | $835,918 | $243,191 | $250,806 | $722,055 | $733,107 | $637,465 | $762,920 | $360,793 | $633,143 | $646,700 | $5,423,524 | $6,120,322 | $884,767 | $884,767 | $1,114,643 | $1,591,538 | $513,056 | $527,528 | $1,135,875 | $1,084,740 | $793,372 | $1,046,181 | $981,811 | $985,568 |
LOANS_Details_7
LOANS (Details 7) (USD $) | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2013 | |
Legacy | Legacy | Legacy | Acquired | Acquired | Acquired | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial Real Estate | Commercial Real Estate | Residential real estate | Residential real estate | Residential real estate | Residential real estate | Residential real estate | Residential real estate | Other consumer | Other consumer | Consumer | Consumer | Boats | Boats | |||
Legacy | Legacy | Acquired | Legacy | Legacy | Legacy | Acquired | Acquired | Legacy | Legacy | Legacy | |||||||||||||||||
Activity in the allowance for loan losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | $4,929,213 | $3,965,347 | $4,419,133 | $4,397,552 | ' | $462,806 | $531,661 | ' | $495,051 | $755,954 | ' | ' | ' | $3,569,395 | ' | $841,234 | $2,826,584 | ' | ' | ' | ' | $133,881 | ' | $23,533 | ' | $248,928 | ' |
General provision for loan losses | -269,769 | -200,000 | ' | ' | ' | ' | ' | ' | 76,063 | 113,670 | ' | ' | ' | 159,543 | ' | 91,713 | 22,653 | ' | ' | ' | ' | -3,354 | ' | 11,251 | ' | -7,969 | ' |
Provision (credit ) for loan losses for loans acquired with deteriorated credit quality | -68,801 | 75,000 | ' | ' | ' | ' | ' | ' | -5,907 | ' | ' | ' | ' | -138,480 | ' | 75,586 | 75,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recoveries | 14,232 | 71,053 | ' | ' | ' | ' | ' | ' | 2,496 | 16,996 | ' | ' | ' | 40 | ' | 7,670 | 31,383 | ' | ' | ' | ' | 22,674 | ' | 4,026 | ' | ' | ' |
Allowance for loan losses before charge offs | 5,213,214 | 4,236,400 | ' | ' | ' | ' | ' | ' | 567,703 | 886,620 | ' | ' | ' | 3,590,498 | ' | 1,016,203 | 2,955,620 | ' | ' | ' | ' | 153,201 | ' | 38,810 | ' | 240,959 | ' |
Loans charged off | -331,275 | -183,453 | ' | ' | ' | ' | ' | ' | -1,000 | -102,596 | ' | ' | ' | ' | ' | -320,006 | -67,851 | ' | ' | ' | ' | -13,006 | ' | -10,269 | ' | ' | ' |
Ending Balance | 4,881,939 | 4,052,947 | 4,419,133 | 4,397,552 | ' | 462,806 | 531,661 | ' | 844,243 | 784,024 | ' | ' | ' | 3,311,658 | ' | 696,642 | 2,887,769 | ' | ' | ' | ' | 140,195 | ' | 29,396 | ' | 240,959 | ' |
Amount allocated to: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Individually evaluated for impairment | ' | ' | 1,571,006 | ' | 25,000 | 462,806 | ' | 391,624 | ' | ' | 185,846 | ' | 279,036 | ' | 1,385,160 | ' | ' | ' | 25,000 | 183,770 | 391,624 | ' | ' | ' | ' | ' | ' |
Other loans not individually evaluated | ' | ' | 2,848,127 | ' | 3,636,323 | ' | ' | ' | ' | ' | 379,361 | 784,024 | ' | ' | 1,926,498 | ' | ' | 512,872 | 2,471,145 | ' | ' | ' | 140,195 | ' | 29,396 | ' | 240,959 |
Ending balance | $4,881,939 | $4,052,947 | $4,419,133 | $4,397,552 | ' | $462,806 | $531,661 | ' | $844,243 | $784,024 | ' | ' | ' | $3,311,658 | ' | $696,642 | $2,887,769 | ' | ' | ' | ' | $140,195 | ' | $29,396 | ' | $240,959 | ' |
LOANS_Details_8
LOANS (Details 8) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 |
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 | $853,314,704 | $851,157,629 | $614,847,703 |
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 | 98,683,617 | ' | 103,349,669 |
Commercial 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 | 539,714,264 | 534,300,000 | ' |
Residential 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 | 204,381,963 | ' | 500,688,657 |
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 | 10,534,860 | 10,998,368 | ' |
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 | ' | ' | 6,813,884 |
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 | ' | ' | 3,995,493 |
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 | 6,264,634 | ' | 499,122 |
Individually evaluated for impairment without specific reserve | 2,992,942 | ' | 4,504,529 |
Individually evaluated for impairment without specific reserve (ASC 310-30 at acquisition) | 602,639 | ' | ' |
Other loans not individually evaluated | 632,776,486 | ' | ' |
Collectively evaluated for impairment without reserve | ' | ' | 479,936,618 |
Ending balance | 642,482,242 | 630,290,012 | ' |
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 with specific reserve | 439,694 | ' | ' |
Individually evaluated for impairment without specific reserve | 752,182 | ' | 1,721,438 |
Other loans not individually evaluated | 87,319,319 | ' | ' |
Collectively evaluated for impairment without reserve | ' | ' | 91,205,536 |
Legacy | Commercial 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 | 5,824,940 | ' | ' |
Individually evaluated for impairment without specific reserve | 2,120,282 | ' | ' |
Other loans not individually evaluated | 436,230,697 | ' | ' |
Legacy | Residential 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 |
Individually evaluated for impairment without specific reserve | 120,478 | ' | 2,783,091 |
Individually evaluated for impairment without specific reserve (ASC 310-30 at acquisition) | 515,826 | ' | ' |
Other loans not individually evaluated | 99,467,152 | ' | ' |
Collectively evaluated for impairment without reserve | ' | ' | 378,858,376 |
Legacy | 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 | ' | ' | ' |
Other loans not individually evaluated | 9,759,318 | ' | ' |
Ending balance | 9,759,318 | 10,127,525 | ' |
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 without reserve | ' | ' | 6,813,884 |
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 without reserve | ' | ' | 3,058,822 |
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 | 854,679 | ' | 1,603,144 |
Individually evaluated for impairment without specific reserve (ASC 310-30 at acquisition) | 232,027 | ' | 13,174,186 |
Collectively evaluated for impairment without reserve | 209,591,297 | ' | 115,130,104 |
Ending balance | 210,832,462 | 220,867,617 | ' |
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 without specific reserve (ASC 310-30 at acquisition) | 86,813 | ' | 286,810 |
Collectively evaluated for impairment without reserve | 10,085,609 | ' | 10,135,885 |
Acquired | Commercial 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 | 372,048 | ' | ' |
Collectively evaluated for impairment without reserve | 95,166,297 | ' | ' |
Acquired | Residential 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 | 482,631 | ' | 1,603,144 |
Individually evaluated for impairment without specific reserve (ASC 310-30 at acquisition) | 232,027 | ' | 12,887,376 |
Collectively evaluated for impairment without reserve | 103,563,849 | ' | 104,057,548 |
Acquired | 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 | 775,542 | ' | ' |
Ending balance | 775,542 | 870,843 | ' |
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 | ' | ' | $936,671 |
OTHER_REAL_ESTATE_OWNED_Detail
OTHER REAL ESTATE OWNED (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
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 | $4,311,342 | ' |
Real estate acquired through foreclosure of loans | 591,622 | ' |
Real estate sold | -512,878 | -725,485 |
(Gain) loss on sales of other real estate owned | -203,068 | 200,454 |
Total end of period | 4,593,154 | ' |
Legacy | ' | ' |
Transactions in other real estate owned during the period | ' | ' |
Beginning balance | 475,291 | ' |
Real estate acquired through foreclosure of loans | 334,000 | ' |
Total end of period | 809,291 | ' |
Acquired | ' | ' |
Transactions in other real estate owned during the period | ' | ' |
Beginning balance | 3,836,051 | ' |
Real estate acquired through foreclosure of loans | 257,622 | ' |
Real estate sold | -512,878 | ' |
(Gain) loss on sales of other real estate owned | 203,068 | ' |
Total end of period | $3,783,863 | ' |
EARNINGS_PER_COMMON_SHARE_Deta
EARNINGS PER COMMON SHARE (Details) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
EARNINGS PER COMMON SHARE | ' | ' |
Weighted average number of shares | 10,780,141 | 6,848,505 |
Dilutive average number of shares | 10,942,110 | 6,950,749 |
STOCK_BASED_COMPENSATION_Detai
STOCK BASED COMPENSATION (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Stock based compensation | ' | ' |
Stock-based compensation expense | $126,802 | $83,662 |
Unrecognized compensation cost related to non-vested stock options | $461,189 | ' |
Period over which unrecognized compensation cost is expected to be realized | '1 year 3 months | ' |
Shares available for future issuance | 413,722 | ' |
Stock options | ' | ' |
Stock based compensation | ' | ' |
Options granted (in shares) | 50,759 | 52,712 |
Options granted (in dollars per share) | $4.69 | ' |
Restricted stock | ' | ' |
Stock based compensation | ' | ' |
Restricted stock granted (in shares) | 8,257 | 8,382 |
Restricted stock granted (in dollars per share) | $16.76 | ' |
Restricted stock forfeited (in shares) | 0 | 0 |
FAIR_VALUE_MEASUREMENT_Details
FAIR VALUE MEASUREMENT (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Assets and liabilities measured at fair value | ' | ' | ' |
Fair Value Assets transfers amount | $0 | ' | $0 |
Fair Value liabilities transfers amount | 0 | ' | 0 |
Gain (loss) on disposal of assets | 96,993 | -85,561 | ' |
Available-for-sale | 172,094,347 | ' | 172,169,776 |
Treasury securities | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Available-for-sale | 1,499,250 | ' | 1,249,987 |
U.S. government agency | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Available-for-sale | 42,099,339 | ' | 40,735,132 |
Municipal securities | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Available-for-sale | 60,589,101 | ' | 59,266,635 |
FHLMC MBS | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Available-for-sale | 4,207,223 | ' | 5,205,966 |
FNMA MBS | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Available-for-sale | 18,337,700 | ' | 18,703,002 |
GNMA MBS | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Available-for-sale | 38,568,109 | ' | 39,921,226 |
SBA loan pools | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Available-for-sale | 6,793,625 | ' | 7,087,828 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Available-for-sale | 1,499,000 | ' | 1,250,000 |
Other Observable Inputs (Level 2) | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Available-for-sale | 170,595,000 | ' | 170,920,000 |
Carrying Value | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Available-for-sale | 172,094,000 | ' | 172,170,000 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Available-for-sale | ' | ' | 1,250,000 |
Assets | 1,499,000 | ' | 1,664,000 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Treasury securities | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Available-for-sale | 1,499,000 | ' | 1,250,000 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Sallie Mae equity securities | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Assets | ' | ' | 414,000 |
Recurring basis | Other Observable Inputs (Level 2) | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Available-for-sale | ' | ' | 170,920,000 |
Assets | 170,595,000 | ' | 170,920,000 |
Recurring basis | Other Observable Inputs (Level 2) | U.S. government agency | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Available-for-sale | 42,099,000 | ' | 40,735,000 |
Recurring basis | Other Observable Inputs (Level 2) | Municipal securities | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Available-for-sale | 60,589,000 | ' | 59,267,000 |
Recurring basis | Other Observable Inputs (Level 2) | FHLMC MBS | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Available-for-sale | 4,207,000 | ' | 5,206,000 |
Recurring basis | Other Observable Inputs (Level 2) | FNMA MBS | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Available-for-sale | 18,338,000 | ' | 18,703,000 |
Recurring basis | Other Observable Inputs (Level 2) | GNMA MBS | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Available-for-sale | 38,568,000 | ' | 39,921,000 |
Recurring basis | Other Observable Inputs (Level 2) | SBA loan pools | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Available-for-sale | 6,794,000 | ' | 7,088,000 |
Recurring basis | Carrying Value | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Available-for-sale | ' | ' | 172,170,000 |
Assets | 172,094,000 | ' | 172,584,000 |
Recurring basis | Carrying Value | Treasury securities | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Available-for-sale | 1,499,000 | ' | 1,250,000 |
Recurring basis | Carrying Value | U.S. government agency | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Available-for-sale | 42,099,000 | ' | 40,735,000 |
Recurring basis | Carrying Value | Municipal securities | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Available-for-sale | 60,589,000 | ' | 59,267,000 |
Recurring basis | Carrying Value | FHLMC MBS | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Available-for-sale | 4,207,000 | ' | 5,206,000 |
Recurring basis | Carrying Value | FNMA MBS | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Available-for-sale | 18,338,000 | ' | 18,703,000 |
Recurring basis | Carrying Value | GNMA MBS | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Available-for-sale | 38,568,000 | ' | 39,921,000 |
Recurring basis | Carrying Value | SBA loan pools | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Available-for-sale | 6,794,000 | ' | 7,088,000 |
Recurring basis | Carrying Value | Sallie Mae equity securities | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Assets | ' | ' | $414,000 |
FAIR_VALUE_MEASUREMENT_Details1
FAIR VALUE MEASUREMENT (Details 2) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2013 | |
item | ||
Assets and liabilities measured at fair value | ' | ' |
Impaired Loans | $10,953,349 | $13,441,487 |
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 | 9,257,576 | 11,613,569 |
Acquired | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Impaired Loans | 1,695,773 | 1,827,918 |
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) | 50.00% | ' |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Impaired Loans | 8,920,000 | 11,019,000 |
Other real estate owned | 4,593,000 | 4,311,000 |
Assets | 13,513,000 | 15,330,000 |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | Legacy | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Impaired Loans | 7,687,000 | 9,723,000 |
Other real estate owned | 809,000 | 475,000 |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | Acquired | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Impaired Loans | 1,233,000 | 1,296,000 |
Other real estate owned | 3,784,000 | 3,836,000 |
Nonrecurring basis | Carrying Value | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Impaired Loans | 8,920,000 | 11,019,000 |
Other real estate owned | 4,593,000 | 4,311,000 |
Assets | 13,513,000 | 15,330,000 |
Nonrecurring basis | Carrying Value | Legacy | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Impaired Loans | 7,687,000 | 9,723,000 |
Other real estate owned | 809,000 | 475,000 |
Nonrecurring basis | Carrying Value | Acquired | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Impaired Loans | 1,233,000 | 1,296,000 |
Other real estate owned | $3,784,000 | $3,836,000 |
FAIR_VALUE_MEASUREMENT_Details2
FAIR VALUE MEASUREMENT (Details 3) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Assets: | ' | ' |
Loans held-for-sale | $1,682,580 | $2,074,924 |
Investment securities available for sale | 172,094,347 | 172,169,776 |
Bank Owned Life Insurance | 30,787,554 | 30,577,187 |
Accrued interest receivable | 3,131,042 | 3,432,924 |
Liabilities: | ' | ' |
Non-interest bearing | 234,512,077 | 228,733,624 |
Interest bearing | 773,640,266 | 745,625,862 |
Total Estimated Fair Value | ' | ' |
Assets: | ' | ' |
Cash and cash equivalents | 54,406,000 | 29,058,000 |
Loans receivable, net | 863,985,000 | 860,458,000 |
Loans held-for-sale | 1,682,000 | 2,075,000 |
Investment securities available for sale | 172,094,000 | 172,170,000 |
Equity securities at cost | 4,304,000 | 5,670,000 |
Bank Owned Life Insurance | 30,788,000 | 30,577,000 |
Accrued interest receivable | 3,131,000 | 3,433,000 |
Liabilities: | ' | ' |
Non-interest bearing | 234,512,000 | 228,734,000 |
Interest bearing | 779,087,000 | 751,703,000 |
Short term borrowings | 38,194,000 | 49,530,000 |
Long term borrowings | 6,072,000 | 6,093,000 |
Accrued interest payable | 242,000 | 265,000 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Assets: | ' | ' |
Cash and cash equivalents | 54,406,000 | 29,058,000 |
Investment securities available for sale | 1,499,000 | 1,250,000 |
Equity securities at cost | ' | 414,000 |
Significant Other Observable Inputs (Level 2) | ' | ' |
Assets: | ' | ' |
Loans held-for-sale | 1,682,000 | 2,075,000 |
Investment securities available for sale | 170,595,000 | 170,920,000 |
Equity securities at cost | 4,304,000 | 5,256,000 |
Bank Owned Life Insurance | 30,788,000 | 30,577,000 |
Accrued interest receivable | 906,000 | 1,088,000 |
Liabilities: | ' | ' |
Non-interest bearing | 234,512,000 | 228,734,000 |
Interest bearing | 779,087,000 | 751,703,000 |
Short term borrowings | 38,194,000 | 49,530,000 |
Long term borrowings | 6,072,000 | 6,093,000 |
Accrued interest payable | 242,000 | 265,000 |
Significant Other Unobservable Inputs (Level 3) | ' | ' |
Assets: | ' | ' |
Loans receivable, net | 863,985,000 | 860,458,000 |
Accrued interest receivable | 2,225,000 | 2,345,000 |
Carrying Amount | ' | ' |
Assets: | ' | ' |
Cash and cash equivalents | 54,406,000 | 29,058,000 |
Loans receivable, net | 849,430,000 | 847,249,000 |
Loans held-for-sale | 1,682,000 | 2,075,000 |
Investment securities available for sale | 172,094,000 | 172,170,000 |
Equity securities at cost | 4,304,000 | 5,670,000 |
Bank Owned Life Insurance | 30,788,000 | 30,577,000 |
Accrued interest receivable | 3,131,000 | 3,433,000 |
Liabilities: | ' | ' |
Non-interest bearing | 234,512,000 | 228,734,000 |
Interest bearing | 773,640,000 | 745,626,000 |
Short term borrowings | 38,194,000 | 49,530,000 |
Long term borrowings | 6,072,000 | 6,093,000 |
Accrued interest payable | $242,000 | $265,000 |