Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended |
Sep. 30, 2013 | |
Document Information [Line Items] | ' |
Entity Registrant Name | 'NEW CENTURY BANCORP INC |
Entity Central Index Key | '0001263762 |
Entity Filer Category | 'Smaller Reporting Company |
Document Type | 'S-4 |
Amendment Flag | 'false |
Document Period End Date | 30-Sep-13 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
In Thousands, unless otherwise specified | ||||
ASSETS | ' | ' | ' | |
Cash and due from banks | $11,711 | $13,498 | [1] | $18,478 |
Interest-earning deposits in other banks | 71,920 | 97,081 | [1] | 55,590 |
Federal funds sold | 3,028 | 3,029 | [1] | 3,028 |
Investment securities available for sale, at fair value | 86,476 | 81,491 | [1] | 67,854 |
Loans | 349,087 | 367,892 | [1] | 417,624 |
Allowance for loan losses | -6,858 | -7,897 | [1] | -10,034 |
NET LOANS | 342,229 | 359,995 | [1] | 407,590 |
Accrued interest receivable | 1,753 | 1,636 | [1] | 2,003 |
Stock in Federal Home Loan Bank of Atlanta (“FHLBâ€), at cost | 796 | 973 | [1] | 1,248 |
Other non marketable securities | 1,040 | 1,105 | [1] | 1,080 |
Foreclosed real estate | 2,164 | 2,833 | [1] | 3,031 |
Premises and equipment held for sale | ' | 0 | 1,113 | |
Premises and equipment, net | 10,882 | 10,939 | [1] | 11,243 |
Bank owned life insurance | 8,404 | 8,228 | [1] | 7,981 |
Core deposit intangible | 211 | 298 | [1] | 545 |
Other assets | 4,404 | 4,347 | [1] | 8,867 |
TOTAL ASSETS | 545,018 | 585,453 | [1] | 589,651 |
Deposits: | ' | ' | ' | |
Demand | 81,259 | 92,265 | [1] | 74,569 |
Savings | 17,543 | 22,139 | [1] | 24,461 |
Money market and NOW | 129,328 | 122,727 | [1] | 92,600 |
Time | 231,682 | 261,428 | [1] | 309,747 |
TOTAL DEPOSITS | 459,812 | 498,559 | [1] | 501,377 |
Short term debt | 14,207 | 17,848 | [1] | 21,877 |
Long term debt | 12,372 | 12,372 | [1] | 14,372 |
Accrued interest payable | 235 | 281 | [1] | 330 |
Accrued expenses and other liabilities | 2,401 | 2,214 | [1] | 2,149 |
TOTAL LIABILITIES | 489,027 | 531,274 | [1] | 540,105 |
Shareholders' Equity | ' | ' | ' | |
Common stock, $1 par value, 25,000,000 shares authorized; 6,921,352 and 6,913,636 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively | 6,921 | 6,914 | [1] | 6,860 |
Preferred stock, no par value, 10,000,000 shares authorized, none outstanding | 0 | 0 | [1] | 0 |
Additional paid-in capital | 42,058 | 42,000 | [1] | 41,851 |
Retained earnings | 6,889 | 4,187 | [1] | -450 |
Accumulated other comprehensive income | 123 | 1,078 | [1] | 1,285 |
TOTAL SHAREHOLDERS’ EQUITY | 55,991 | 54,179 | [1] | 49,546 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $545,018 | $585,453 | [1] | $589,651 |
[1] | Derived from audited consolidated financial statements. |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Common stock, par value (in dollars per share) | $1 | $1 | $1 |
Common stock, shares authorized | 25,000,000 | 25,000,000 | 25,000,000 |
Common stock, shares issued | 6,921,352 | 6,913,636 | 6,860,367 |
Common stock, shares outstanding | 6,921,352 | 6,913,636 | 6,860,367 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Outstanding | ' | 0 | 0 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
INTEREST INCOME | ' | ' | ' | ' | ' | ' | ' |
Loans | $5,184 | $5,775 | $16,162 | $17,817 | $23,405 | $28,172 | $30,896 |
Federal funds sold and interest-earning deposits in other banks | 51 | 41 | 163 | 113 | 164 | 109 | 68 |
Investments | 365 | 382 | 1,122 | 1,212 | 1,563 | 2,102 | 2,646 |
TOTAL INTEREST INCOME | 5,600 | 6,198 | 17,447 | 19,142 | 25,132 | 30,383 | 33,610 |
INTEREST EXPENSE | ' | ' | ' | ' | ' | ' | ' |
Money market, NOW and savings deposits | 104 | 146 | 343 | 374 | 522 | 643 | 1,180 |
Time deposits | 1,112 | 1,371 | 3,473 | 4,379 | 5,678 | 7,255 | 7,921 |
Short term debt | 9 | 26 | 34 | 86 | 113 | 228 | 276 |
Long term debt | 74 | 80 | 222 | 241 | 319 | 299 | 303 |
TOTAL INTEREST EXPENSE | 1,299 | 1,623 | 4,072 | 5,080 | 6,632 | 8,425 | 9,680 |
NET INTEREST INCOME | 4,301 | 4,575 | 13,375 | 14,062 | 18,500 | 21,958 | 23,930 |
PROVISION FOR (RECOVERY OF) LOAN LOSSES | -130 | 189 | -605 | -2,597 | -2,597 | 6,218 | 15,634 |
NET INTEREST INCOME AFTER RECOVERY OF LOAN LOSSES | 4,431 | 4,386 | 13,980 | 16,659 | 21,097 | 15,740 | 8,296 |
NON-INTEREST INCOME | ' | ' | ' | ' | ' | ' | ' |
Fees from pre-sold mortgages | 0 | 53 | 73 | 166 | 296 | 183 | 226 |
Service charges on deposit accounts | 263 | 306 | 811 | 916 | 1,200 | 1,475 | 1,641 |
Gain on branch sale | 0 | 0 | 0 | 557 | 557 | 0 | 0 |
Other fees and income | 360 | 398 | 1,113 | 943 | 1,545 | 1,159 | 811 |
TOTAL NON-INTEREST INCOME | 623 | 757 | 1,997 | 2,582 | 3,598 | 2,817 | 2,678 |
NON-INTEREST EXPENSE | ' | ' | ' | ' | ' | ' | ' |
Personnel | 2,022 | 2,042 | 6,107 | 6,050 | 8,318 | 8,842 | 9,370 |
Occupancy and equipment | 414 | 325 | 1,115 | 995 | 1,346 | 1,418 | 1,557 |
Deposit insurance | 111 | 191 | 320 | 572 | 763 | 910 | 956 |
Professional fees | 274 | 303 | 892 | 1,242 | 1,495 | 1,861 | 2,141 |
Information systems | 319 | 345 | 983 | 1,080 | 1,429 | 1,586 | 1,625 |
Foreclosed real estate-related expense | 143 | 355 | 333 | 1,056 | 1,165 | 1,841 | 985 |
Other | 629 | 609 | 1,840 | 2,039 | 2,720 | 2,647 | 2,579 |
TOTAL NON-INTEREST EXPENSE | 3,912 | 4,170 | 11,590 | 13,034 | 17,236 | 19,105 | 19,213 |
INCOME (LOSS) BEFORE INCOME TAX (BENEFIT) | 1,142 | 973 | 4,387 | 6,207 | 7,459 | -548 | -8,239 |
INCOME TAX (BENEFIT) | 493 | 341 | 1,685 | 2,305 | 2,822 | -385 | -3,284 |
NET INCOME (LOSS) | $649 | $632 | $2,702 | $3,902 | $4,637 | ($163) | ($4,955) |
NET INCOME (LOSS) PER COMMON SHARE | ' | ' | ' | ' | ' | ' | ' |
Basic (in dollars per share) | $0.09 | $0.09 | $0.39 | $0.57 | $0.67 | ($0.02) | ($0.72) |
Diluted (in dollars per share) | $0.09 | $0.09 | $0.39 | $0.57 | $0.67 | ($0.02) | ($0.72) |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | ' | ' | ' | ' | ' | ' | ' |
Basic (in shares) | 6,921,352 | 6,913,636 | 6,917,958 | 6,892,946 | 6,898,147 | 6,887,168 | 6,875,845 |
Diluted (in shares) | 6,924,142 | 6,914,085 | 6,919,507 | 6,893,064 | 6,898,377 | 6,887,168 | 6,875,845 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Net income (loss) | $649 | $632 | $2,702 | $3,902 | $4,637 | ($163) | ($4,955) |
Other comprehensive income (loss): | ' | ' | ' | ' | ' | ' | ' |
Unrealized gain (loss) on investment securities available for sale | -102 | 167 | -1,446 | 215 | -91 | 286 | -348 |
Tax effect | 34 | -59 | 491 | -82 | 31 | -104 | 116 |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | -68 | 108 | -955 | 133 | -60 | 182 | -232 |
Reclassification adjustment for losses included in net income (loss) | 0 | -51 | 0 | -174 | -223 | -113 | -37 |
Tax effect | 0 | 20 | 0 | 68 | 76 | 38 | 11 |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | 0 | -31 | 0 | -106 | -147 | -75 | -26 |
Total | -68 | 77 | -955 | 27 | -207 | 107 | -258 |
Total comprehensive income (loss) | $581 | $709 | $1,747 | $3,929 | $4,430 | ($56) | ($5,213) |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | |
In Thousands, except Share data | ||||||
Balance at Dec. 31, 2009 | $54,409 | $6,838 | $41,467 | $4,668 | $1,436 | |
Balance (in shares) at Dec. 31, 2009 | ' | 6,837,952 | ' | ' | ' | |
Net income (loss) | -4,955 | 0 | 0 | -4,955 | 0 | |
Other comprehensive income (loss), net | -258 | 0 | 0 | 0 | -258 | |
Stock option exercises | 332 | 76 | 256 | 0 | 0 | |
Stock option exercises (in shares) | ' | 75,684 | ' | ' | ' | |
Tax benefit from stock option exercises | 16 | 0 | 16 | 0 | 0 | |
Stock based compensation | 148 | 0 | 148 | 0 | 0 | |
Balance at Dec. 31, 2010 | 49,692 | 6,914 | 41,887 | -287 | 1,178 | |
Balance (in shares) at Dec. 31, 2010 | ' | 6,913,636 | ' | ' | ' | |
Net income (loss) | -163 | 0 | 0 | -163 | 0 | |
Common stock received as collateral on loan default | -165 | -54 | -111 | 0 | 0 | |
Common stock received as collateral on loan default (in shares) | ' | -53,269 | ' | ' | ' | |
Other comprehensive income (loss), net | 107 | 0 | 0 | 0 | 107 | |
Stock based compensation | 75 | 0 | 75 | 0 | 0 | |
Balance at Dec. 31, 2011 | 49,546 | 6,860 | 41,851 | -450 | 1,285 | |
Balance (in shares) at Dec. 31, 2011 | ' | 6,860,367 | ' | ' | ' | |
Net income (loss) | 3,902 | 0 | 0 | 3,902 | 0 | |
Sale of common stock | 165 | 54 | 111 | 0 | 0 | |
Sale of common stock (in shares) | ' | 53,269 | ' | ' | ' | |
Other comprehensive income (loss), net | 27 | 0 | 0 | 0 | 27 | |
Stock based compensation | 31 | 0 | 31 | 0 | 0 | |
Balance at Sep. 30, 2012 | 53,671 | 6,914 | 41,993 | 3,452 | 1,312 | |
Balance (in shares) at Sep. 30, 2012 | ' | 6,913,636 | ' | ' | ' | |
Balance at Dec. 31, 2011 | 49,546 | 6,860 | 41,851 | -450 | 1,285 | |
Balance (in shares) at Dec. 31, 2011 | ' | 6,860,367 | ' | ' | ' | |
Net income (loss) | 4,637 | 0 | 0 | 4,637 | 0 | |
Sale of common stock | 165 | 54 | 111 | 0 | 0 | |
Sale of common stock (in shares) | ' | 53,269 | ' | ' | ' | |
Other comprehensive income (loss), net | -207 | 0 | 0 | 0 | -207 | |
Stock based compensation | 38 | 0 | 38 | 0 | 0 | |
Balance at Dec. 31, 2012 | 54,179 | [1] | 6,914 | 42,000 | 4,187 | 1,078 |
Balance (in shares) at Dec. 31, 2012 | ' | 6,913,636 | ' | ' | ' | |
Net income (loss) | 2,702 | 0 | 0 | 2,702 | 0 | |
Other comprehensive income (loss), net | -955 | 0 | 0 | 0 | -955 | |
Stock option exercises | 44 | 7 | 37 | 0 | 0 | |
Stock option exercises (in shares) | ' | 7,716 | ' | ' | ' | |
Stock based compensation | 21 | 0 | 21 | 0 | 0 | |
Balance at Sep. 30, 2013 | $55,991 | $6,921 | $42,058 | $6,889 | $123 | |
Balance (in shares) at Sep. 30, 2013 | ' | 6,921,352 | ' | ' | ' | |
[1] | Derived from audited consolidated financial statements. |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' | ' | ' | ' |
Net income (loss) | $2,702 | $3,902 | $4,637 | ($163) | ($4,955) |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' | ' | ' |
Recovery of loan losses | -605 | -2,597 | -2,597 | 6,218 | 15,634 |
Depreciation and amortization of premises and equipment | 385 | 433 | 581 | 659 | 751 |
Amortization and accretion of investment securities | 443 | 414 | 546 | 718 | 836 |
Amortization of deferred loan fees and costs | -174 | -147 | -197 | -200 | -176 |
Amortization of core deposit intangible | 87 | 86 | 115 | 153 | 154 |
Loss on sale of premises and equipment | ' | ' | 0 | 0 | 11 |
Deferred income taxes | ' | ' | 2,784 | -366 | -2,405 |
Stock-based compensation | 21 | 31 | 38 | 75 | 148 |
Loss on write down on other assets | ' | ' | 0 | 82 | 0 |
Net gain on branch sale | 0 | -557 | -557 | 0 | 0 |
Increase in cash surrender value of bank owned life insurance | -176 | -186 | -247 | -254 | -262 |
Net loss on sale and write-downs of foreclosed real estate | 278 | 869 | 960 | 1,423 | 656 |
Net loss on investment security sales and pay-downs | 185 | 174 | 223 | 113 | 37 |
Change in assets and liabilities: | ' | ' | ' | ' | ' |
Net change in accrued interest receivable | -117 | 92 | 367 | 485 | 102 |
Net change in other assets | 434 | 558 | 1,781 | 1,733 | -1,444 |
Net change in accrued expenses and other liabilities | 141 | 1,801 | 16 | -90 | -242 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 3,604 | 4,873 | 8,450 | 10,586 | 8,845 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' | ' | ' | ' |
Purchase of FHLB stock | ' | ' | 0 | 0 | -315 |
Redemption of FHLB stock | 177 | 275 | 275 | 200 | 0 |
Redemption of non-marketable security | 65 | 0 | ' | ' | ' |
Purchase of investment securities available for sale | -23,269 | -21,211 | -42,148 | -16,209 | -21,836 |
Maturities of investment securities available for sale | 7,351 | 11,122 | 14,122 | 25,836 | 15,796 |
Mortgage-backed securities pay-downs | 8,859 | 9,556 | 12,805 | 11,261 | 11,104 |
Sale of investment securities available for sale | 0 | 500 | 500 | 500 | 0 |
Net cash payment on branch sale | 0 | -13,001 | ' | ' | ' |
Net change in loans outstanding | 17,945 | 28,465 | 45,227 | 44,051 | -11,223 |
Cash paid on sale of branches | ' | ' | -12,621 | 0 | 0 |
Purchase of other non-marketable securities | ' | ' | -138 | -50 | -100 |
Redemption of other-non-marketable securities | ' | ' | 113 | 52 | 0 |
Proceeds from sale of loans | ' | ' | 342 | 0 | 2,618 |
Proceeds from sale of foreclosed real estate | 991 | 3,335 | 4,058 | 2,011 | 1,712 |
Proceeds from the sale of premises and equipment | ' | ' | 0 | 1 | 5 |
Retirement of premises and equipment | ' | ' | 19 | 0 | 0 |
Purchases of premises and equipment | -328 | -185 | -231 | -34 | -1,426 |
NET CASH PROVIDED BY INVESTING ACTIVITIES | 11,791 | 18,856 | 22,323 | 67,619 | -3,665 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' | ' | ' | ' |
Net change in deposits | -38,747 | -5,477 | 11,603 | -33,222 | -5,663 |
Proceeds from short-term debt | 0 | 6,666 | 6,666 | 2,184 | 2,000 |
Repayments on short-term debt | -3,641 | -2,348 | -10,695 | -3,973 | 1,102 |
Proceeds from long term debt | ' | ' | 0 | 0 | 6,000 |
Repayments on long-term debt | 0 | -2,000 | -2,000 | -2,000 | -2,000 |
Proceeds from sale of common stock | ' | ' | 165 | 0 | 0 |
Tax benefit from exercise of stock options | ' | ' | 0 | 0 | 16 |
Proceeds from stock option exercises | 44 | 165 | 0 | 0 | 332 |
NET CASH USED IN FINANCING ACTIVITIES | -42,344 | -2,994 | 5,739 | -37,011 | 1,787 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | -26,949 | 20,735 | 36,512 | 41,194 | 6,967 |
CASH AND CASH EQUIVALENTS, BEGINNING | 113,608 | 77,096 | 77,096 | 35,902 | 28,935 |
CASH AND CASH EQUIVALENTS, ENDING | 86,659 | 97,831 | 113,608 | 77,096 | 35,902 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ' | ' | ' | ' | ' |
Interest | 4,118 | 5,117 | 6,681 | 8,490 | 9,634 |
Taxes | 1,361 | 0 | 0 | 0 | 939 |
Non-cash transactions: | ' | ' | ' | ' | ' |
Unrealized gains (losses) on investment securities available for sale, net of tax | -955 | 27 | -207 | 107 | -258 |
Transfers from loans to foreclosed real estate | 600 | 4,078 | 4,820 | 2,810 | 3,495 |
Transfer from foreclosed real estate to premises and equipment | ' | ' | 0 | 0 | 960 |
Transfer from premises and equipment to premises and equipment held for sale | ' | ' | 0 | 1,113 | 0 |
Common stock received as collateral on loan default | ' | ' | 0 | -165 | 0 |
Transfers from loans held for sale to loans, at fair value | $406 | $0 | ' | ' | ' |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' | ' |
NOTE A — BASIS OF PRESENTATION | NOTE A — ORGANIZATION AND OPERATIONS | |
New Century Bancorp, Inc. (the “Company”) is a bank holding company whose principal business activity consists of ownership of New Century Bank (the “Bank”). The Bank is engaged in general commercial and retail banking and operates under the banking laws of North Carolina and the rules and regulations of the Federal Deposit Insurance Corporation and the North Carolina Commissioner of Banks. The Bank undergoes periodic examinations by those regulatory authorities. | New Century Bancorp, Inc. (“Company”) is a bank holding company whose principal business activity consists of ownership of New Century Bank (referred to as the “Bank”). All significant intercompany transactions and balances have been eliminated in consolidation. In 2004, the Company formed New Century Statutory Trust I, which issued trust preferred securities to provide additional capital for general corporate purposes, including the current and future expansion of the Company. New Century Statutory Trust I is not a consolidated subsidiary of the Company. The Company is subject to the rules and regulations of the Board of Governors of the Federal Reserve and the North Carolina Commissioner of Banks. | |
All significant inter-company transactions and balances have been eliminated in consolidation. In management’s opinion, the financial information, which is unaudited, reflects all adjustments (consisting solely of normal recurring adjustments) necessary for a fair presentation of the financial information as of and for the three and nine month periods ended September 30, 2013 and 2012, in conformity with accounting principles generally accepted in the United States of America (“GAAP”). | New Century Bank was incorporated on May 19, 2000 and began banking operations on May 24, 2000. New Century Bank South began operations on January 2, 2004. The two banks merged on March 28, 2008 and New Century Bank continues as the only banking subsidiary of New Century Bancorp with the headquarters and operations center located in Dunn, NC. The Bank is engaged in general commercial and retail banking in southeastern North Carolina and operates under the banking laws of North Carolina and the rules and regulations of the Federal Deposit Insurance Corporation and the North Carolina Commissioner of Banks. The Bank undergoes periodic examinations by those regulatory authorities. | |
The preparation of consolidated financial statements requires management to make estimates and assumptions that affect reported amounts of assets and liabilities at the date of the financial statements, as well as the amounts of income and expense during the reporting period. Actual results could differ from those estimates. Operating results for the three and nine month periods ended September 30, 2013 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2013. | ||
The organization and business of the Company, accounting policies followed by the Company and other relevant information are contained in the notes to the financial statements filed as part of the Company’s 2012 Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on March 29, 2013. This quarterly report should be read in conjunction with the Annual Report. | ||
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||
Dec. 31, 2012 | |||||||
Accounting Policies [Abstract] | ' | ||||||
Significant Accounting Policies [Text Block] | ' | ||||||
NOTE B — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Use of Estimates | |||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses and the valuation of other real estate owned. | |||||||
Cash and Due from Banks, Interest-Earning Deposits in Other Banks and Federal Funds Sold | |||||||
For the purpose of presentation in the statements of cash flows, cash and cash equivalents are defined as those amounts included in the balance sheet captions “Cash and due from banks,” “Interest-earning deposits in other banks,” and “Federal funds sold.” | |||||||
Investment Securities Available for Sale | |||||||
Investment securities available for sale are reported at fair value and consist of debt instruments that are not classified as either trading securities or as held to maturity securities. Unrealized holding gains and losses, net of deferred income tax, on available for sale securities are reported as a net amount in accumulated other comprehensive income. Gains and losses on the sale of investment securities available for sale are determined using the specific-identification method. | |||||||
Loans | |||||||
Loans that management has the intent and ability to hold for the foreseeable future or until maturity are reported at their outstanding principal balance adjusted for any charge-offs, the allowance for loan losses, and any deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. Loan origination fees and certain direct origination costs are capitalized and recognized as an adjustment of the yield of the related loan. The accrual of interest on impaired loans is discontinued when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all of the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Loans held for sale are held at the lower of cost or fair market value until sold. | |||||||
Non-accrual Loans | |||||||
Loans are placed on non-accrual basis when it has been determined that all contractual principal and interest will not be received. Any payments received on these loans are applied to principal first and then to interest only after all principal has been collected. Impaired loans include all loans in non-accrual status, all troubled debt restructures, all substandard loans that are deemed to be collateral dependent, and other loans that management determines require impairment. In the case of an impaired loan that is still on accrual basis, payments are applied to both principal and interest. | |||||||
Allowance for Loan Losses | |||||||
The provision for loan losses is based upon management’s estimate of the amount needed to maintain the allowance for loan losses at an adequate level. In making the evaluation of the adequacy of the allowance for loan losses, management gives consideration to current economic conditions, statutory examinations of the loan portfolio by regulatory agencies, delinquency information and management’s internal review of the loan portfolio. Loans are considered impaired when it is probable that all amounts due will not be collected in accordance with the contractual terms of the loan agreement. The measurement of impaired loans is generally based on the present value of expected future cash flows discounted at the historical effective interest rate, or upon the fair value of the collateral if readily determinable. If the recorded investment in the loan exceeds the measure of fair value, a valuation allowance is established as a component of the allowance for loan losses. Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case, interest is recognized on a cash basis. Impaired loans, or portions thereof, are charged off when deemed uncollectible. While management uses the best information available to make evaluations, future adjustments to the allowance may be necessary if conditions differ substantially from the assumptions used in making the evaluations. In addition, regulatory examiners may require the Company to recognize adjustments to the allowance for loan losses based on their judgments about information available to them at the time of their examination. | |||||||
Stock in Federal Home Loan Bank of Atlanta | |||||||
As a requirement for membership, the Bank invests in stock of the Federal Home Loan Bank of Atlanta (“FHLB”). This investment is carried at cost at December 31, 2012 and 2011. The Company continually monitors the financial strength of the FHLB and evaluates the investment for potential impairment. There can be no assurance that the impact of recent or future legislation on the Federal Home Loan Banks will not cause a decrease in the value of the Bank’s investment in FHLB stock. | |||||||
Other Non Marketable Securities | |||||||
Other non marketable securities are equity instruments that are reported at cost. | |||||||
Foreclosed Real Estate | |||||||
Real estate acquired through, or in lieu of, loan foreclosure is recorded at the lower of cost or net realizable value, less the estimated cost to sell, at the date of foreclosure. After foreclosure, management periodically performs valuations of the property and adjusts the value down when the carrying value of the property exceeds the estimated net realizable value. Revenue and expenses from operations and changes in the valuation allowance are included in other non-interest expense. | |||||||
Premises and Equipment | |||||||
Premises and equipment are stated at cost less accumulated depreciation. Depreciation is calculated on the straight-line method over the estimated useful lives of the assets. Estimated useful lives are 40 years for buildings and 3 to 10 years for furniture, fixtures and equipment. Leasehold improvements are amortized over the terms of the respective leases or the estimated useful lives of the improvements, whichever is shorter. Repairs and maintenance costs are charged to operations as incurred and additions and improvements to premises and equipment are capitalized. Upon sale or retirement, the cost and related accumulated depreciation are removed from the accounts and any gains or losses are reflected in current operations. | |||||||
Premises and Equipment Held for Sale | |||||||
Premises and equipment held for sale are stated at book value which approximates fair market value. | |||||||
Income Taxes | |||||||
Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the tax basis of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax assets are also recognized for operating loss carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which the temporary differences are expected to be recovered or settled. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that the tax benefits will not be realized. | |||||||
Bank Owned Life Insurance | |||||||
Bank Owned Life Insurance (“BOLI”) is carried at its cash surrender value on the balance sheet and is classified as a non-interest-earning asset. Death benefit proceeds received in excess of the policy’s cash surrender value are recognized to income. Returns on the BOLI assets are added to the carrying value and included as non-interest income in the consolidated statement of operations. Any receipt of benefit proceeds is recorded as a reduction to the carrying value of the BOLI asset. At December 31, 2012 and 2011, the Company held no policy loans against its BOLI cash surrender values or restrictions on the use of the proceeds. | |||||||
Intangible Assets | |||||||
Intangible assets with finite lives include core deposits and other intangibles. Intangible assets are subject to impairment testing whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company performed an impairment test of the core deposit intangible at December 31, 2012 and found no impairment to exist. The Company’s core deposit intangible is amortized using the straight-line method over nine years. The gross amount of the core deposit intangible is $1.4 million with $1.1 million being amortized to date, leaving a remaining net balance of $0.3 million as of December 31, 2012. | |||||||
The table below summarizes the remaining core deposit intangible amortization (dollars in thousands): | |||||||
2013 | $ | 116 | |||||
2014 | 116 | ||||||
2015 | 66 | ||||||
$ | 298 | ||||||
Stock-Based Compensation | |||||||
The Company has certain stock-based employee compensation plans, described more fully in Note L. Generally accepted accounting principles (“GAAP”) require recognition of the cost of employee services received in exchange for an award of equity instruments in the financial statements over the period the employee is required to perform the services in exchange for the award (usually the vesting period). GAAP also requires the compensation cost for all awards granted after the date of adoption and any unvested awards that remained outstanding as of the date of adoption to be measured based on the fair value of the award on the grant date. | |||||||
Comprehensive Income | |||||||
The Company reports as comprehensive income all changes in shareholders’ equity during the year from sources other than shareholders. Other comprehensive income refers to all components (revenues, expenses, gains, and losses) of comprehensive income that are excluded from net income. The Company’s only component of other comprehensive income is unrealized gains and losses on investment securities available for sale. | |||||||
For the years ended December 31, 2012, 2011 and 2010, total comprehensive income (loss) was $4.4 million, ($56,000) and ($5.2 million), respectively. The deferred tax liability related to the components of comprehensive income amounted to $699,000 and $806,000 as of December 31, 2012 and 2011, respectively. The accumulated balance of other comprehensive income was $1.1 million and $1.2 million at December 31, 2012 and 2011, respectively. | |||||||
Segment Information | |||||||
The Company follows the provisions of accounting standards codification (“ASC”) 280, Segment Reporting, which specifies guidelines for determining an entity’s operating segments and the type and level of financial information to be disclosed. Based on these guidelines, management has determined that the Bank operates as a single business segment; the providing of general commercial and retail financial services to customers located in the Company’s market areas. The various products, as well as the methods used to distribute them, are those generally offered by community banks. | |||||||
Net Income per Common Share and Common Shares Outstanding | |||||||
Basic earnings per share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to outstanding stock options. Basic and diluted net income per share have been computed based upon net income as presented in the accompanying statements of operations divided by the weighted average number of common shares outstanding or assumed to be outstanding as summarized below: | |||||||
2012 | 2011 | 2010 | |||||
Weighted average number of common shares used in computing basic net income per share | 6,898,147 | 6,887,168 | 6,875,845 | ||||
Effect of dilutive stock options | 230 | — | — | ||||
Weighted average number of common shares and dilutive potential common shares used in computing diluted net income per share | 6,898,377 | 6,887,168 | 6,875,845 | ||||
At December 31, 2012, there were 360,931 anti-dilutive options. All options were anti-dilutive at December 31, 2011, and 2010. | |||||||
Recent Accounting Pronouncements | |||||||
The following summarizes recent accounting pronouncements and their expected impact on the Company: | |||||||
Accounting Standards Update (“ASU”) 2011-04, Fair Value Measurement (Topic 820) — Amendments to Achieve Common Fair Value Measurements and Disclosure Requirements in U.S. GAAP and IFRSs. ASU 2011-04 amends Topic 820, Fair Value Measurements and Disclosures, to converge the fair value measurement guidance in U.S. generally accepted accounting principles and International Financial Reporting Standards. ASU 2011-04 clarifies the application of existing fair value measurement requirements, changes certain principles in Topic 820 and requires additional fair value disclosures. ASU 2011-04 became effective for annual periods beginning after December 15, 2011, and did not have a significant impact on the Company’s financial statements upon adoption on January 1, 2012. | |||||||
ASU 2011-05, Comprehensive Income (Topic 220) — Presentation of Comprehensive Income. ASU 2011-05 amends Topic 220, Comprehensive Income, to require that all non-owner changes in stockholders’ equity be presented in either a single continuous statement of comprehensive income or in two separate but consecutive statements. Additionally, ASU 2011-05 requires entities to present, on the face of the financial statements, reclassification adjustments for items that are reclassified from other comprehensive income to net income in the statement or statements where the components of net income and the components of other comprehensive income are presented. The option to present components of other comprehensive income as part of the statement of changes in stockholders’ equity was eliminated. ASU 2011-05 became effective for annual periods beginning after December 15, 2011, and did not have a significant impact on the Company’s financial statements upon adoption on January 1, 2012. | |||||||
ASU 2011-12, Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income. ASU 2011-12 amends Topic 220 to allow the Financial Accounting Standards Board (“FASB”) time to redeliberate whether to present on the face of the financial statements the effects of reclassifications out of accumulated other comprehensive income on the components of net income and other comprehensive income for all periods presented. All other requirements in ASU 2011-05 are not affected by ASU 2011-12, including the requirement to report comprehensive income either in a single continuous financial statement or in two separate but consecutive financial statements. Public entities were required to apply these requirements for fiscal years, and interim periods within those years beginning after December 15, 2011. The Company has adopted the standard and the adoption of ASU 2011-12 did not have an impact on the Company’s financial condition, results of operations, or cash flows. | |||||||
ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This guidance is the culmination of the FASB’s deliberation on reporting reclassification adjustments from accumulated other comprehensive income (“AOCI”). The amendments in ASU 2013-02 do not change the current requirements for reporting net income or other comprehensive income. However, the amendments require disclosure of the amounts reclassified out of the AOCI in its entirety, by component, on the face of the statement of operations or in the notes thereto. Amounts that are not required to be reclassified in their entirety to net income must be cross-referenced to other disclosures that provide additional detail. The standard is effective prospectively for annual and interim reporting periods beginning after December 15, 2012. The Company has adopted the standard and the adoption of ASU 2013-02 did not have any impact on the Company’s financial condition, results of operations, or cash flows. | |||||||
Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations and cash flows. | |||||||
From time to time, the FASB issues exposure drafts for proposed statements of financial accounting standards. Such exposure drafts are subject to comment from the public, to revisions by the FASB and to final issuance by the FASB as statements of financial accounting standards. Management considers the effect of the proposed statements on the consolidated financial statements of the Company and monitors the status of changes to and proposed effective dates of exposure drafts. | |||||||
PER_SHARE_RESULTS
PER SHARE RESULTS | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||
Earnings Per Share [Text Block] | ' | |||||||||||||
NOTE B — PER SHARE RESULTS | ||||||||||||||
Basic net income per share is computed based upon the weighted average number of shares of common stock outstanding during the period. Diluted net income per share includes the dilutive effect of stock options outstanding during the period. At September 30, 2013 and 2012 there were 278,659 and 369,182 anti-dilutive options outstanding for each three month period, and 308,909 and 371,593 anti-dilutive options for each nine month period, respectively. | ||||||||||||||
Three Months Ended September | Nine Months Ended September | |||||||||||||
30, | 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Weighted average shares used for basic net income per share | 6,921,352 | 6,913,636 | 6,917,958 | 6,892,946 | ||||||||||
Effect of dilutive stock options | 2,790 | 449 | 1,549 | 118 | ||||||||||
Weighted average shares used for diluted net income per share | 6,924,142 | 6,914,085 | 6,919,507 | 6,893,064 | ||||||||||
RECENT_ACCOUNTING_PRONOUNCEMEN
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2013 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | ' |
NOTE C — RECENT ACCOUNTING PRONOUNCEMENTS | |
The following summarizes recent accounting pronouncements and their expected impact on the Company: | |
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” (“ASU 2013-02”). This guidance is the culmination of the FASB’s deliberation on reporting reclassification adjustments from accumulated other comprehensive income (“AOCI”). The amendments in ASU 2013-02 do not change the current requirements for reporting net income or other comprehensive income. However, the amendments require disclosure of amounts reclassified out of AOCI in its entirety, by component, on the face of the statement of operations or in the notes thereto. Amounts that are not required to be reclassified in their entirety to net income must be cross-referenced to other disclosures that provide additional detail. This standard is effective prospectively for annual and interim reporting periods beginning after December 15, 2012. The Company has adopted the standard and the adoption of ASU 2013-02 did not have an impact on the Company’s financial condition, results of operations, or cash flows, but did result in additional disclosures in Note H. | |
Other accounting standards that have been issued or proposed by FASB or other standards-setting bodies are not expected to have a material impact on the Company’s consolidated financial position, results of operations and cash flows. | |
From time to time, the FASB issues exposure drafts for proposed statements of financial accounting standards. Such exposure drafts are subject to comment from the public, to revisions by the FASB and to final issuance by the FASB as statements of financial accounting standards. Management considers the effect of the proposed statements on the consolidated financial statements of the Company and monitors the status of changes to and proposed effective dates of exposure drafts. | |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||
Sep. 30, 2013 | Dec. 31, 2012 | ||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ' | |||||||||||||||||||||||||||||||||
Fair Value Disclosures [Text Block] | ' | ' | |||||||||||||||||||||||||||||||||
NOTE D — FAIR VALUE MEASUREMENTS | NOTE K — FAIR VALUE MEASUREMENTS | ||||||||||||||||||||||||||||||||||
Accounting Standards Codification (“ASC”) 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 does not require any new fair value measurements, but clarifies and standardizes some divergent practices that have emerged since prior guidance was issued. ASC 820 creates a three-level hierarchy under which individual fair value estimates are to be ranked based on the relative reliability of the inputs used in the valuation. | ASC 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 does not require any new fair value measurements, but clarifies and standardizes some divergent practices that have emerged since prior guidance was issued. ASC 820 creates a three-level hierarchy under which individual fair value estimates are to be ranked based on the relative reliability of the inputs used in the valuation. | ||||||||||||||||||||||||||||||||||
Fair value estimates are made at a specific moment in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. | Financial instruments include cash and due from banks, interest-earning deposits with banks, investments, loans, deposit accounts and borrowings. Fair value estimates are made at a specific moment in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no active market readily exists for a portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. | ||||||||||||||||||||||||||||||||||
Because no active market readily exists for a portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. | The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: | ||||||||||||||||||||||||||||||||||
The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: | Fair Value Hierarchy | ||||||||||||||||||||||||||||||||||
Fair Value Hierarchy | The Company groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: | ||||||||||||||||||||||||||||||||||
The Company groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: | • | Level 1 — Valuation is based upon quoted prices for identical instruments traded in active markets. | |||||||||||||||||||||||||||||||||
• | Level 1 — Valuation is based upon quoted prices for identical instruments traded in active markets. | • | Level 2 — Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market. | ||||||||||||||||||||||||||||||||
• | Level 2 — Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market. | • | Level 3 — Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flows models and similar techniques. | ||||||||||||||||||||||||||||||||
• | Level 3 — Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flows models and similar techniques. | The following is a description of valuation methodologies used for assets and liabilities recorded at fair value. | |||||||||||||||||||||||||||||||||
The following is a description of valuation methodologies used for assets and liabilities recorded at fair value on a recurring basis. | Investment Securities Available-for-Sale | ||||||||||||||||||||||||||||||||||
Investment Securities Available-for-Sale (“AFS”) | Investment securities available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include U.S. government agencies — GSE’s, mortgage-backed securities issued by government sponsored entities, municipal bonds and corporate debt securities. Securities classified as Level 3 include asset-backed securities in less liquid markets. | ||||||||||||||||||||||||||||||||||
Investment securities available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include U.S. government agencies, mortgage-backed securities issued by government sponsored entities, and municipal bonds. There have been no changes in valuation techniques for the three months and nine months ended September 30, 2013. Valuation techniques are consistent with techniques used in prior periods. | The following tables summarize quantitative disclosures about the fair value measurement for each category of assets carried at fair value on a recurring basis as of December 31, 2012 and December 31, 2011 (dollars in thousands): | ||||||||||||||||||||||||||||||||||
The following tables summarize quantitative disclosures about the fair value measurement for each category of assets carried at fair value on a recurring basis as of September 30, 2013 and December 31, 2012 (in thousands): | |||||||||||||||||||||||||||||||||||
Investment securities available for sale | Fair value | Quoted Prices in | Significant Other | Significant | |||||||||||||||||||||||||||||||
September 30, 2013 | Active Markets for | Observable Inputs | Unobservable Inputs | Investment securities available for sale December 31, 2012 | Fair value | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||||||||||||||
Identical Assets (Level | (Level 2) | (Level 3) | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||||||||
1) | U.S. government agencies – GSE’s | $ | 37,154 | $ | — | $ | 37,154 | $ | — | ||||||||||||||||||||||||||
U.S. government | $ | 37,358 | $ | — | $ | 37,358 | $ | — | Mortgage-backed securities – GSE’s | 35,954 | — | 35,954 | — | ||||||||||||||||||||||
agencies – Government Sponsored- | Municipal bonds | 8,383 | — | 8,383 | — | ||||||||||||||||||||||||||||||
Enterprises (“GSE’s”) | Total | $ | 81,491 | $ | — | $ | 81,491 | $ | — | ||||||||||||||||||||||||||
Mortgage-backed securities – GSE’s | 40,949 | — | 40,949 | — | |||||||||||||||||||||||||||||||
Municipal bonds | 8,169 | — | 8,169 | — | |||||||||||||||||||||||||||||||
Total | $ | 86,476 | $ | — | $ | 86,476 | $ | — | Investment securities available for sale December 31, 2011 | Fair value | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||||||||
Investment securities available | Fair value | Quoted Prices in Active | Significant Other | Significant | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||||||
for sale | Markets for Identical Assets | Observable Inputs (Level | Unobservable Inputs | U.S. government agencies – GSE’s | $ | 26,412 | $ | — | $ | 26,412 | $ | — | |||||||||||||||||||||||
December 31, 2012 | (Level 1) | 2) | (Level 3) | Mortgage-backed securities – GSE’s | 35,169 | — | 35,169 | — | |||||||||||||||||||||||||||
U.S. government | $ | 37,154 | $ | — | $ | 37,154 | $ | — | Municipal bonds | 6,273 | — | 6,273 | — | ||||||||||||||||||||||
agencies – GSE’s | Total | $ | 67,854 | $ | — | $ | 67,854 | $ | — | ||||||||||||||||||||||||||
Mortgage-backed | 35,954 | — | 35,954 | — | Loans | ||||||||||||||||||||||||||||||
securities – GSE’s | The Company does not record loans at fair value on a recurring basis. However, from time to time, a loan is considered impaired and an allowance for loan losses is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment in accordance with ASC 310,”Receivables”. The fair value of impaired loans is estimated using one of several methods, including collateral value, liquidation value and discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. At December 31, 2012, substantially all of the total impaired loans were evaluated based on the fair value of the collateral. Impaired loans where an allowance is established based on the fair value of collateral require classification in the fair value hierarchy. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the impaired loan as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the impaired loan as nonrecurring Level 3. | ||||||||||||||||||||||||||||||||||
Municipal bonds | 8,383 | — | 8,383 | — | The significant unobservable input used in the fair value measurement of the Company’s impaired loans range between 6 – 55% discount from appraisals for expected liquidation and sales costs. | ||||||||||||||||||||||||||||||
Total | $ | 81,491 | $ | — | $ | 81,491 | $ | — | Foreclosed Real Estate | ||||||||||||||||||||||||||
The following is a description of valuation methodologies used for assets recorded at fair value on a non-recurring basis. | Foreclosed real estate are properties recorded at the lower of cost or net realizable value, less the estimated costs to sell, at the date of foreclosure. Inputs include appraised values on the properties or recent sales activity for similar assets in the property’s market. Therefore, foreclosed real estate is classified within Level 3 of the hierarchy. At December 31, 2012 total assets classified as foreclosed real estate totaled $2.8 million. | ||||||||||||||||||||||||||||||||||
Loans | The significant unobservable input used in the fair value measurement of the Company’s foreclosed real estate range between 16 – 20% discount from appraisals for expected liquidation and sales costs. | ||||||||||||||||||||||||||||||||||
The Company does not record loans at fair value on a recurring basis. However, from time to time, a loan is considered impaired and an allowance for loan losses is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment in accordance with ASC 310, “Receivables”. The fair value of impaired loans is estimated using one of several methods, including collateral value, market value of similar debt, enterprise value, or liquidation value and discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. At September 30, 2013 and December 31, 2012, substantially all of the total impaired loans were evaluated based on the fair value of the collateral. Impaired loans where an allowance is established based on the fair value of collateral require classification in the fair value hierarchy. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the impaired loan as non-recurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the impaired loan as non-recurring Level 3. The significant unobservable input used in the fair value measurement of the Company’s impaired loans is the discount applied to appraised values to account for expected liquidation and selling costs. At September 30, 2013, the discounts used ranged between 6% and 50%. There were no transfers between levels from the prior reporting periods and there have been no changes in valuation techniques for the three months and nine months ended September 30, 2013. | The following tables summarize quantitative disclosures about the fair value measurement for each category of assets carried at fair value on a nonrecurring basis as of December 31, 2012 and December 31, 2011 (dollars in thousands): | ||||||||||||||||||||||||||||||||||
Foreclosed Real Estate | |||||||||||||||||||||||||||||||||||
Foreclosed real estate are properties recorded at the balance of the loan or an estimated fair value less estimated selling costs, whichever is less. Inputs include appraised values on the properties or recent sales activity for similar assets in the property’s market. Therefore, foreclosed real estate is classified within Level 3 of the hierarchy. The significant unobservable input used in the fair value measurement of the Company’s impaired loans is the discount applied to appraised values to account for expected liquidation and selling costs. At September 30, 2013, the discounts used ranged between 6% and 42%. There have been no changes in valuation techniques for the quarter ended September 30, 2013. | |||||||||||||||||||||||||||||||||||
The following tables summarize quantitative disclosures about the fair value measurement for each category of assets carried at fair value on a non-recurring basis as of September 30, 2013 and December 31, 2012 (in thousands): | Asset Category December 31, 2012 | Fair value | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||||||||||||||||
Asset Category | Fair value | Quoted Prices in Active Markets | Significant Other | Significant Unobservable | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||||||
September 30, | for Identical Assets (Level 1) | Observable Inputs (Level 2) | Inputs (Level 3) | Impaired loans | $ | 8,104 | $ | — | $ | — | $ | 8,104 | |||||||||||||||||||||||
2013 | Foreclosed real estate | 2,833 | — | — | 2,833 | ||||||||||||||||||||||||||||||
Impaired loans | $ | 10,373 | $ | — | $ | — | $ | 10,373 | Total | $ | 10,937 | $ | — | $ | — | $ | 10,937 | ||||||||||||||||||
Foreclosed real | 2,164 | — | — | 2,164 | |||||||||||||||||||||||||||||||
estate | |||||||||||||||||||||||||||||||||||
Total | $ | 12,537 | $ | — | $ | — | $ | 12,537 | Asset Category December 31, 2011 | Fair value | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||||||||
As of September 30, 2013, the Bank identified $19.7 million in impaired loans, of which $10.4 million were carried at fair value on a non-recurring basis which included $7.1 million in loans that required a specific reserve of $604,000, and an additional $3.9 million in other loans without specific reserves that had partial charge-offs. | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||||||||||
Asset Category | Fair value | Quoted Prices in Active Markets | Significant Other | Significant Unobservable | Impaired loans | $ | 13,353 | $ | — | $ | — | $ | 13,353 | ||||||||||||||||||||||
December 31, 2012 | for Identical Assets (Level 1) | Observable Inputs (Level 2) | Inputs (Level 3) | Foreclosed real estate | 3,031 | — | — | 3,031 | |||||||||||||||||||||||||||
Impaired loans | $ | 8,104 | $ | — | $ | — | $ | 8,104 | Total | $ | 16,384 | $ | — | $ | — | $ | 16,384 | ||||||||||||||||||
Foreclosed real | 2,833 | — | — | 2,833 | As of December 31, 2012, the Bank identified $19.7 million in impaired loans, of which $8.1 million were carried at fair value on a non-recurring basis which included $6.0 million in loans that required a specific reserve of $909,000, and an additional $3.0 million in other loans without specific reserves that had charge-offs. As of December 31, 2011, the Bank identified $24.8 million in impaired loans, of which $13.4 million were carried at fair value on a non-recurring basis which included $9.6 million in loans that required a specific reserve of $1.5 million, and an additional $5.3 million in other loans without specific reserves that had charge-offs. | ||||||||||||||||||||||||||||||
estate | The following table presents the carrying values and estimated fair values of the Company’s financial instruments at December 31, 2012 and 2011: | ||||||||||||||||||||||||||||||||||
Total | $ | 10,937 | $ | — | $ | — | $ | 10,937 | |||||||||||||||||||||||||||
As of December 31, 2012, the Bank identified $19.7 million in impaired loans, of which $8.1 million were carried at fair value on a non-recurring basis which included $6.0 million in loans that required a specific reserve of $909,000, and an additional $3.0 million in other loans without specific reserves that had partial charge-offs. | |||||||||||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||||
Carrying Amount | Estimated Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||||||||
Cash and due from banks | $ | 13,498 | $ | 13,498 | $ | 13,498 | $ | — | $ | — | |||||||||||||||||||||||||
Interest-earning deposits in other banks | 97,081 | 97,081 | 97,081 | — | — | ||||||||||||||||||||||||||||||
Federal funds sold | 3,029 | 3,029 | 3,029 | — | — | ||||||||||||||||||||||||||||||
Investment securities available for sale | 81,491 | 81,491 | — | 81,491 | — | ||||||||||||||||||||||||||||||
Loans, net | 359,995 | 377,591 | — | — | 377,591 | ||||||||||||||||||||||||||||||
Accrued interest receivable | 1,636 | 1,636 | — | — | 1,636 | ||||||||||||||||||||||||||||||
Stock in the FHLB | 973 | 973 | — | — | 973 | ||||||||||||||||||||||||||||||
Other non-marketable securities | 1,105 | 1,105 | — | — | 1,105 | ||||||||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||||||||
Deposits | $ | 498,559 | $ | 507,478 | $ | — | $ | 507,478 | $ | — | |||||||||||||||||||||||||
Short-term debt | 17,848 | 17,848 | — | 17,848 | — | ||||||||||||||||||||||||||||||
Long-term debt | 12,372 | 8,451 | — | 8,451 | — | ||||||||||||||||||||||||||||||
Accrued interest payable | 281 | 281 | — | — | 281 | ||||||||||||||||||||||||||||||
31-Dec-11 | |||||||||||||||||||||||||||||||||||
Carrying Amount | Estimated Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||||||||
Cash and due from banks | $ | 18,478 | $ | 18,478 | $ | 18,478 | $ | — | $ | — | |||||||||||||||||||||||||
Interest-earning deposits in other banks | 55,590 | 55,590 | 55,590 | — | — | ||||||||||||||||||||||||||||||
Federal funds sold | 3,028 | 3,028 | 3,028 | — | — | ||||||||||||||||||||||||||||||
Investment securities available for sale | 67,854 | 67,854 | — | 67,854 | — | ||||||||||||||||||||||||||||||
Loans, net | 407,590 | 424,851 | — | — | 424,851 | ||||||||||||||||||||||||||||||
Premises and equipment held for sale | 1,113 | 1,113 | — | — | 1,113 | ||||||||||||||||||||||||||||||
Accrued interest receivable | 2,003 | 2,003 | — | — | 2,003 | ||||||||||||||||||||||||||||||
Stock in the FHLB | 1,248 | 1,248 | — | — | 1,248 | ||||||||||||||||||||||||||||||
Other non-marketable securities | 1,080 | 1,080 | — | — | 1,080 | ||||||||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||||||||
Deposits | $ | 501,377 | $ | 509,454 | $ | — | $ | 509,454 | $ | — | |||||||||||||||||||||||||
Short-term debt | 21,877 | 21,877 | — | 21,877 | — | ||||||||||||||||||||||||||||||
Long-term debt | 14,372 | 9,661 | — | 9,661 | — | ||||||||||||||||||||||||||||||
Accrued interest payable | 330 | 330 | — | — | 330 | ||||||||||||||||||||||||||||||
Cash and Due from Banks, Interest-Earning Deposits in Other Banks and Federal Funds Sold | |||||||||||||||||||||||||||||||||||
The carrying amounts for cash and due from banks, interest-earning deposits in other banks and federal funds sold approximate fair value because of the short maturities of those instruments. | |||||||||||||||||||||||||||||||||||
Investment Securities Available for Sale | |||||||||||||||||||||||||||||||||||
Fair value for investment securities available for sale equals quoted market price if such information is available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. | |||||||||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||||||||
For certain homogenous categories of loans, such as residential mortgages, fair value is estimated using the quoted market prices for securities backed by similar loans, adjusted for differences in loan characteristics. The fair value of other types of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. However, the values likely do not represent exit prices due to distressed market conditions. | |||||||||||||||||||||||||||||||||||
Stock in Federal Home Loan Bank of Atlanta | |||||||||||||||||||||||||||||||||||
The fair value for FHLB stock approximates carrying value, based on the redemption provisions of the Federal Home Loan Bank. | |||||||||||||||||||||||||||||||||||
Other Non Marketable Securities | |||||||||||||||||||||||||||||||||||
The fair value of stock in other non marketable securities is assumed to approximate carrying value. | |||||||||||||||||||||||||||||||||||
Premises and Equipment Held for Sale | |||||||||||||||||||||||||||||||||||
Premises and equipment held for sale are stated at book value which approximates fair market value. | |||||||||||||||||||||||||||||||||||
Deposits | |||||||||||||||||||||||||||||||||||
The fair value of demand deposits is the amount payable on demand at the reporting date. The fair values of time deposits are estimated using the rates currently offered for instruments of similar remaining maturities. | |||||||||||||||||||||||||||||||||||
Short Term Debt | |||||||||||||||||||||||||||||||||||
Short term debt includes FHLB advances with maturities of one year or less and sweep accounts. The fair value of short term FHLB advances is assumed to be approximate carrying value. The fair values of short term debt (sweep accounts that re-price weekly) are based on discounting expected cash flows at the interest rate for debt with the same or similar remaining maturities and collateral requirements. | |||||||||||||||||||||||||||||||||||
Long Term Debt | |||||||||||||||||||||||||||||||||||
The fair values of long term debt are based on discounting expected cash flows at the interest rate for debt with the same or similar remaining maturities and collateral requirements. | |||||||||||||||||||||||||||||||||||
Accrued Interest Receivable and Accrued Interest Payable | |||||||||||||||||||||||||||||||||||
The carrying amounts of accrued interest receivable and payable approximate fair value, because of the short maturities of these instruments. | |||||||||||||||||||||||||||||||||||
Financial Instruments with Off-Balance Sheet Risk | |||||||||||||||||||||||||||||||||||
With regard to financial instruments with off-balance sheet risk, it is not practicable to estimate the fair value of future financing commitments. | |||||||||||||||||||||||||||||||||||
FAIR_VALUE_OF_FINANCIAL_INSTRU
FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||
Investments, All Other Investments [Abstract] | ' | ' | ||||||||||||||||||||
Financial Instruments Disclosure [Text Block] | ' | ' | ||||||||||||||||||||
NOTE E — FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE J — OFF-BALANCE SHEET RISK | |||||||||||||||||||||
The following table presents the carrying values and estimated fair values of the Company’s financial instruments at September 30, 2013 and December 31, 2012: | The Company is a party to financial instruments with off-balance sheet credit risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheet. The contract or notional amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. | |||||||||||||||||||||
September 30, 2013 | Commitments to extend credit are agreements to lend to a customer as long as there is no violation of conditions established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since some of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. | |||||||||||||||||||||
Carrying | Estimated Fair | Level 1 | Level 2 | Level 3 | The amount of collateral obtained, if deemed necessary by the Company, upon extension of credit is based on management’s credit evaluation of the borrower. Collateral obtained varies but may include real estate, stocks, bonds, and certificates of deposit. | |||||||||||||||||
Amount | Value | A summary of the contract amount of the Company’s exposure to off-balance sheet credit risk as of December 31, 2012 is as follows: | ||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||
Financial assets: | Financial instruments whose contract amounts represent credit risk: | |||||||||||||||||||||
Cash and due from banks | $ | 11,711 | $ | 11,711 | $ | 11,711 | $ | — | $ | — | Undisbursed commitments | $ | 53,875 | |||||||||
Interest-earning deposits in other | 71,920 | 71,920 | 71,920 | — | — | Letters of credit | 1,366 | |||||||||||||||
banks | ||||||||||||||||||||||
Federal funds sold | 3,028 | 3,028 | 3,028 | — | — | |||||||||||||||||
Investment securities available for | 86,476 | 86,476 | — | 86,476 | — | |||||||||||||||||
sale | ||||||||||||||||||||||
Loans, net | 342,229 | 356,977 | — | — | 356,977 | |||||||||||||||||
Accrued interest receivable | 1,753 | 1,753 | 1,753 | — | — | |||||||||||||||||
Stock in FHLB | 796 | 796 | — | — | 796 | |||||||||||||||||
Other non-marketable securities | 1,040 | 1,040 | — | — | 1,040 | |||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||
Deposits | $ | 459,812 | $ | 465,264 | $ | — | $ | 465,264 | $ | — | ||||||||||||
Short term debt | 14,207 | 14,207 | — | 14,207 | — | |||||||||||||||||
Long term debt | 12,372 | 7,750 | — | 7,750 | — | |||||||||||||||||
Accrued interest payable | 235 | 235 | — | — | 235 | |||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||
Carrying | Estimated Fair | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Amount | Value | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||
Cash and due from banks | $ | 13,498 | $ | 13,498 | $ | 13,498 | $ | — | $ | — | ||||||||||||
Interest-earning deposits in other | 97,081 | 97,081 | 97,081 | — | — | |||||||||||||||||
banks | ||||||||||||||||||||||
Federal funds sold | 3,029 | 3,029 | 3,029 | — | — | |||||||||||||||||
Investment securities available | 81,491 | 81,491 | — | 81,491 | — | |||||||||||||||||
for sale | ||||||||||||||||||||||
Loans, net | 359,995 | 377,591 | — | — | 377,591 | |||||||||||||||||
Accrued interest receivable | 1,636 | 1,636 | — | — | 1,636 | |||||||||||||||||
Stock in the FHLB | 973 | 973 | — | — | 973 | |||||||||||||||||
Other non-marketable securities | 1,105 | 1,105 | — | — | 1,105 | |||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||
Deposits | $ | 498,559 | $ | 507,478 | $ | — | $ | 507,478 | $ | — | ||||||||||||
Short term debt | 17,848 | 17,848 | — | 17,848 | — | |||||||||||||||||
Long term debt | 12,372 | 8,451 | — | 8,451 | — | |||||||||||||||||
Accrued interest payable | 281 | 281 | — | — | 281 | |||||||||||||||||
Cash and Due from Banks, Interest-Earning Deposits in Other Banks and Federal Funds Sold | ||||||||||||||||||||||
The carrying amounts for cash and due from banks, interest-earning deposits in other banks and federal funds sold approximate fair value because of the short maturities of those instruments. | ||||||||||||||||||||||
Investment Securities Available for Sale | ||||||||||||||||||||||
Fair value for investment securities available for sale equals quoted market price if such information is available. If a quoted market price is not available, fair value is estimated using prices quoted for similar investments or quoted market prices obtained from independent pricing services. | ||||||||||||||||||||||
Loans | ||||||||||||||||||||||
The fair value of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. However, the values likely do not represent exit prices due to distressed market conditions. | ||||||||||||||||||||||
Stock in Federal Home Loan Bank of Atlanta and Other Non-marketable Securities | ||||||||||||||||||||||
The fair value for FHLB stock approximates carrying value, based on the redemption provisions of the FHLB. The fair value of stock in other non-marketable securities is assumed to approximate carrying value. | ||||||||||||||||||||||
Deposits | ||||||||||||||||||||||
The fair value of demand deposits is the amount payable on demand at the reporting date. The fair values of time deposits are estimated using the rates currently offered for instruments of similar remaining maturities. | ||||||||||||||||||||||
Short term Debt | ||||||||||||||||||||||
The fair values of short-term debt (sweep accounts that re-price daily) are based on discounting expected cash flows at the interest rate for debt with the same or similar remaining maturities and collateral requirements. | ||||||||||||||||||||||
Long term Debt | ||||||||||||||||||||||
The fair values of long-term debt are based on discounting expected cash flows at the interest rate for debt with the same or similar remaining maturities and collateral requirements. | ||||||||||||||||||||||
Accrued Interest Receivable and Accrued Interest Payable | ||||||||||||||||||||||
The carrying amounts of accrued interest receivable and payable approximate fair value because of the short maturities of these instruments. | ||||||||||||||||||||||
Financial Instruments with Off-Balance Sheet Risk | ||||||||||||||||||||||
With regard to financial instruments with off-balance sheet risk, it is not practicable to estimate the fair value of future financing commitments. | ||||||||||||||||||||||
INVESTMENT_SECURITIES
INVESTMENT SECURITIES | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ' | ||||||||||||||||||||||||||||||||||||||
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | ' | ' | ||||||||||||||||||||||||||||||||||||||
NOTE F — INVESTMENT SECURITIES | NOTE C — INVESTMENT SECURITIES | |||||||||||||||||||||||||||||||||||||||
The amortized cost and fair value of securities available for sale, with gross unrealized gains and losses, follow: | The amortized cost and fair value of available for sale investments (“AFS”), with gross unrealized gains and losses, follow: | |||||||||||||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair | Amortized | Gross unrealized | Gross unrealized | Fair | |||||||||||||||||||||||||||||||||
value | cost | gains | losses | value | ||||||||||||||||||||||||||||||||||||
(In thousands) | (dollars in thousands) | |||||||||||||||||||||||||||||||||||||||
Securities available for sale: | Securities available for sale: | |||||||||||||||||||||||||||||||||||||||
U.S. government agencies – GSE’s | U.S. government agencies – GSE’s (“Government | $ | 36,951 | $ | 248 | $ | -45 | $ | 37,154 | |||||||||||||||||||||||||||||||
Within 1 year | $ | 10,580 | $ | 47 | $ | — | $ | 10,627 | Sponsored Entities”) | |||||||||||||||||||||||||||||||
After 1 year but within 5 years | 9,819 | 26 | — | 9,845 | Mortgage-backed securities – GSE’s | 34,794 | 1,189 | -29 | 35,954 | |||||||||||||||||||||||||||||||
After 5 years but within 10 years | 6,000 | — | -477 | 5,523 | Municipal bonds | 7,970 | 414 | -1 | 8,383 | |||||||||||||||||||||||||||||||
After 10 years | 11,391 | 14 | -42 | 11,363 | $ | 79,715 | $ | 1,851 | $ | -75 | $ | 81,491 | ||||||||||||||||||||||||||||
Mortgage-backed securities – GSE’s | As of December 31, 2012, accumulated other comprehensive income included net gains of $1.8 million, net of deferred income taxes of $699,000. | |||||||||||||||||||||||||||||||||||||||
Within 1 year | 212 | 12 | — | 224 | December 31, 2011 | |||||||||||||||||||||||||||||||||||
After 1 year but within 5 years | 33,417 | 781 | -31 | 34,167 | Amortized | Gross unrealized | Gross unrealized | Fair | ||||||||||||||||||||||||||||||||
After 5 years but within 10 years | 6,740 | — | -182 | 6,558 | cost | gains | losses | value | ||||||||||||||||||||||||||||||||
Municipal bonds | (dollars in thousands) | |||||||||||||||||||||||||||||||||||||||
Within 1 year | 100 | 1 | — | 101 | Securities available for sale: | |||||||||||||||||||||||||||||||||||
After 1 year but within 5 years | 3,039 | 194 | — | 3,233 | U.S. government agencies – GSE’s (“Government | $ | 26,085 | $ | 327 | $ | — | $ | 26,412 | |||||||||||||||||||||||||||
After 5 years but within 10 years | 3,320 | 36 | -88 | 3,268 | Sponsored Entities”) | |||||||||||||||||||||||||||||||||||
After 10 years | 1,527 | 61 | -21 | 1,567 | Mortgage-backed securities – GSE’s | 33,871 | 1,316 | -18 | 35,169 | |||||||||||||||||||||||||||||||
$ | 86,145 | $ | 1,172 | $ | -841 | $ | 86,476 | Municipal bonds | 5,807 | 466 | — | 6,273 | ||||||||||||||||||||||||||||
As of September 30, 2013, accumulated other comprehensive income was $123,000 which represented unrealized net gains of $331,000 net of deferred income taxes of $208,000. | $ | 65,763 | $ | 2,109 | $ | -18 | $ | 67,854 | ||||||||||||||||||||||||||||||||
December 31, 2012 | As of December 31, 2011, accumulated other comprehensive income included net gains of $2.1 million, net of deferred income taxes of $806,000. | |||||||||||||||||||||||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Fairvalue | During the year ended December 31, 2012 and 2011, the pay down of GSE’s resulted in gross realized gains of $10,000 and $24,000, respectively, and realized losses of $233,000 and $137,000, respectively for each period. These pay downs generated $12.8 million and $11.3 million in proceeds during these respective periods. | ||||||||||||||||||||||||||||||||||||
(In thousands) | Securities with a carrying value of $39.5 million and $41.8 million at December 31, 2012 and 2011, respectively, were pledged to secure public monies on deposit as required by law, customer repurchase agreements, and access to the Federal Reserve Discount Window. | |||||||||||||||||||||||||||||||||||||||
Securities available for sale: | The following tables show gross unrealized losses and fair value, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position as of December 31, 2012 and 2011. | |||||||||||||||||||||||||||||||||||||||
U.S. government agencies – GSE’s | 2012 | |||||||||||||||||||||||||||||||||||||||
Within 1 year | $ | 9,385 | $ | 75 | $ | — | $ | 9,460 | Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||
After 1 year but within 5 years | 16,947 | 100 | — | 17,047 | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||||||||||
After 5 years but within 10 years | 6,003 | — | -45 | 5,958 | value | losses | value | losses | value | losses | ||||||||||||||||||||||||||||||
After 10 years | 4,616 | 73 | — | 4,689 | (dollars in thousands) | |||||||||||||||||||||||||||||||||||
Mortgage-backed securities – GSE’s | Securities available for sale: | |||||||||||||||||||||||||||||||||||||||
Within 1 year | 1,085 | 68 | — | 1,152 | U.S. government | $ | 5,959 | $ | 45 | $ | — | $ | — | $ | 5,959 | $ | 45 | |||||||||||||||||||||||
After 1 year but within 5 years | 27,188 | 1,122 | -20 | 28,290 | agencies – GSE’s | |||||||||||||||||||||||||||||||||||
After 5 years but within 10 years | 4,505 | — | -6 | 4,500 | Mortgage-backed | 10,286 | 29 | — | — | 10,286 | 29 | |||||||||||||||||||||||||||||
After 10 years | 2,016 | — | -4 | 2,012 | securities – GSE’s | |||||||||||||||||||||||||||||||||||
Municipal bonds | Municipal bonds | 677 | 1 | — | — | 677 | 1 | |||||||||||||||||||||||||||||||||
Within 1 year | 350 | 1 | — | 351 | Total temporarily impaired | $ | 16,922 | $ | 75 | $ | — | $ | — | $ | 16,922 | $ | 75 | |||||||||||||||||||||||
After 1 year but within 5 years | 2,354 | 187 | — | 2,541 | securities | |||||||||||||||||||||||||||||||||||
After 5 years but within 10 years | 3,665 | 122 | — | 3,787 | At December 31, 2012, the Company had no AFS securities with an unrealized loss for twelve or more consecutive months. Ten GSE’s and one municipal bond had unrealized losses for less than twelve months totaling $75,000 at December 31, 2012. All unrealized losses are attributable to the general trend of interest rates and the abnormal spreads of all debt instruments to U.S. Treasury securities. | |||||||||||||||||||||||||||||||||||
After 10 years | 1,601 | 103 | — | 1,704 | 2011 | |||||||||||||||||||||||||||||||||||
$ | 79,715 | $ | 1,851 | $ | -75 | $ | 81,491 | Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||
As of December 31, 2012, accumulated other comprehensive income was $1.1 million which represented unrealized net gains of $1.8 million, net of deferred income taxes of $699,000. | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||||||||||||||
The following tables show investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, at September 30, 2013 and December 31, 2012. | value | losses | value | losses | value | losses | ||||||||||||||||||||||||||||||||||
September 30, 2013 | (dollars in thousands) | |||||||||||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | Securities available for sale: | |||||||||||||||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | Mortgage-backed | $ | 7,207 | $ | 18 | $ | — | $ | — | $ | 7,207 | $ | 18 | ||||||||||||||||||||||
value | losses | value | losses | value | losses | securities – GSE’s | ||||||||||||||||||||||||||||||||||
(In thousands) | Total temporarily impaired | $ | 7,207 | $ | 18 | $ | — | $ | — | $ | 7,207 | $ | 18 | |||||||||||||||||||||||||||
Securities available for sale: | securities | |||||||||||||||||||||||||||||||||||||||
U.S. government agencies – GSE’s | $ | 9,069 | $ | 519 | $ | — | $ | — | $ | 9,069 | $ | 519 | At December 31, 2011, the Company had no AFS securities with an unrealized loss for twelve or more consecutive months. Seven GSE’s had unrealized losses for less than twelve months totaling $18,000 at December 31, 2011. All unrealized losses are attributable to the general trend of interest rates and the abnormal spreads of all debt instruments to U.S. Treasury securities. | |||||||||||||||||||||||||||
Mortgage-backed securities – GSE’s | 11,537 | 213 | — | — | 11,537 | 213 | Since none of the unrealized losses relate to the liquidity of the securities or the issuer’s ability to honor redemption obligations and the Company has the intent and ability to hold these securities to recovery, no other than temporary impairments were identified for these investments having unrealized losses for the periods ended December 31, 2012 and December 31, 2011. | |||||||||||||||||||||||||||||||||
Municipal bonds | 2,767 | 109 | — | — | 2,767 | 109 | The following table sets forth certain information regarding the amortized costs, carrying values and contractual maturities of the Company’s investment portfolio at December 31, 2012. | |||||||||||||||||||||||||||||||||
Total temporarily impaired | $ | 23,373 | $ | 841 | $ | — | $ | — | $ | 23,373 | $ | 841 | Amortized | Fair | ||||||||||||||||||||||||||
securities | Cost | Value | ||||||||||||||||||||||||||||||||||||||
At September 30, 2013, the Company had no AFS securities with an unrealized loss for twelve or more consecutive months. Five U.S. government agencies GSE’s, twelve mortgage-backed securities GSE’s, and three municipal bonds had unrealized losses for less than twelve months totaling $841,000 at September 30, 2013. All unrealized losses are attributable to the general trend of rising interest rates. | (dollars in thousands) | |||||||||||||||||||||||||||||||||||||||
December 31, 2012 | Securities available for sale: | |||||||||||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | U.S. government agencies – GSE’s | |||||||||||||||||||||||||||||||||||||
Fairv | Unrealized | Fair | Unrealized | Fair | Unrealized | Due within one year | $ | 9,385 | $ | 9,460 | ||||||||||||||||||||||||||||||
alue | losses | value | losses | value | losses | Due after one but within five years | 16,947 | 17,047 | ||||||||||||||||||||||||||||||||
(In thousands) | Due after five but within ten years | 6,003 | 5,958 | |||||||||||||||||||||||||||||||||||||
Securities available for sale: | Due after ten years | 4,616 | 4,689 | |||||||||||||||||||||||||||||||||||||
U.S. government agencies – GSE’s | $ | 5,959 | $ | 45 | $ | — | $ | — | $ | 5,959 | $ | 45 | 36,951 | 37,154 | ||||||||||||||||||||||||||
Mortgage-backed securities – GSE’s | 10,286 | 30 | — | — | 10,286 | 30 | Mortgage-backed securities – GSE’s | |||||||||||||||||||||||||||||||||
Total temporarily impaired | $ | 16,245 | $ | 75 | $ | — | $ | — | $ | 16,245 | $ | 75 | Due within one year | 1,085 | 1,152 | |||||||||||||||||||||||||
securities | Due after one but within five years | 27,188 | 28,290 | |||||||||||||||||||||||||||||||||||||
At December 31, 2012, the Company had no AFS securities with an unrealized loss for twelve or more consecutive months. Three U.S. government agencies GSE’s and seven mortgage-backed securities GSE’s had unrealized losses for less than twelve months totaling $75,000 at December 31, 2012. All unrealized losses are attributable to the general trend of interest rates and the abnormal spreads of all debt instruments to U.S. Treasury securities. | Due after five but within ten years | 4,505 | 4,500 | |||||||||||||||||||||||||||||||||||||
Due after ten years | 2,016 | 2,012 | ||||||||||||||||||||||||||||||||||||||
34,794 | 35,954 | |||||||||||||||||||||||||||||||||||||||
Municipal bonds | ||||||||||||||||||||||||||||||||||||||||
Due within one year | 350 | 351 | ||||||||||||||||||||||||||||||||||||||
Due after one but within five years | 2,354 | 2,541 | ||||||||||||||||||||||||||||||||||||||
Due after five but within ten years | 3,665 | 3,787 | ||||||||||||||||||||||||||||||||||||||
Due after ten years | 1,601 | 1,704 | ||||||||||||||||||||||||||||||||||||||
7,970 | 8,383 | |||||||||||||||||||||||||||||||||||||||
Total securities available for sale | ||||||||||||||||||||||||||||||||||||||||
Due within one year | 10,820 | 10,963 | ||||||||||||||||||||||||||||||||||||||
Due after one but within five years | 46,489 | 47,878 | ||||||||||||||||||||||||||||||||||||||
Due after five but within ten years | 14,173 | 14,245 | ||||||||||||||||||||||||||||||||||||||
Due after ten years | 8,233 | 8,405 | ||||||||||||||||||||||||||||||||||||||
$ | 79,715 | $ | 81,491 | |||||||||||||||||||||||||||||||||||||
For purposes of the maturity table, mortgage-backed securities, which are not due at a single maturity date, have been allocated over maturity groupings based on the weighted-average contractual maturities of underlying collateral. The mortgage-backed securities may mature earlier than their weighted-average contractual maturities because of principal prepayments. | ||||||||||||||||||||||||||||||||||||||||
LOANS
LOANS | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Leases Receivable Disclosure [Abstract] | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTE G — LOANS | NOTE D — LOANS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Following is a summary of the composition of the Company’s loan portfolio at September 30, 2013 and December 31, 2012: | The following is a summary of loans at December 31, 2012 and 2011: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount | Percent of total | Amount | Percent of total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate loans: | Amount | Percent of total | Amount | Percent of total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 to 4 family residential | $ | 34,157 | 9.78 | % | $ | 41,017 | 11.14 | % | (dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 174,746 | 50.06 | % | 186,949 | 50.82 | % | Real estate loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | 19,145 | 5.48 | % | 19,524 | 5.31 | % | 1 to 4 family residential | $ | 41,017 | 11.14 | % | $ | 52,182 | 12.49 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | 51,950 | 14.88 | % | 48,220 | 13.11 | % | Commercial real estate | 186,949 | 50.82 | % | 192,047 | 45.98 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Home equity lines of credit (“HELOC”) | 32,206 | 9.23 | % | 34,603 | 9.41 | % | Multi-family residential | 19,524 | 5.31 | % | 23,377 | 5.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total real estate loans | 312,204 | 89.43 | % | 330,313 | 89.79 | % | Construction | 48,220 | 13.11 | % | 70,846 | 16.96 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other loans: | Home equity lines of credit (“HELOC”) | 34,603 | 9.41 | % | 38,702 | 9.27 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 29,233 | 8.37 | % | 29,297 | 7.96 | % | Total real estate loans | 330,313 | 89.79 | % | 377,154 | 90.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals | 8,047 | 2.31 | % | 8,615 | 2.34 | % | Other loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Overdrafts | 147 | 0.04 | % | 119 | 0.03 | % | Commercial and industrial | 29,297 | 7.96 | % | 33,146 | 7.94 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other loans | 37,427 | 10.72 | % | 38,031 | 10.33 | % | Loans to individuals | 8,615 | 2.34 | % | 7,583 | 1.82 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross loans | 349,631 | 368,344 | Overdrafts | 119 | 0.03 | % | 88 | 0.02 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less deferred loan origination fees, net | -544 | -0.16 | % | -452 | -0.12 | % | Total other loans | 38,031 | 10.33 | % | 40,817 | 9.78 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans | 349,087 | 100 | % | 367,892 | 100 | % | Gross loans | 368,344 | 417,971 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | -6,858 | -7,897 | Less deferred loan origination fees, net | (452 | ) | (.12 | )% | (347 | ) | (.08 | )% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans, net | $ | 342,229 | $ | 359,995 | Total loans | 367,892 | 100 | % | 417,624 | 100 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans are primarily made in southeastern North Carolina. Real estate loans can be affected by the condition of the local real estate market and by the local economic conditions. | Allowance for loan losses | (7,897 | ) | (10,034 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
At September 30, 2013, the Company had pre-approved but unused lines of credit for customers totaling $84.4 million. In management’s opinion, these commitments, and undisbursed proceeds on loans reflected above, represent no more than normal lending risk to the Company and will be funded from normal sources of liquidity. | Total loans, net | $ | 359,995 | $ | 407,590 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
A description of the various loan products provided by the Bank is presented below. | Loans are primarily made in southeastern North Carolina. Real estate loans can be affected by the condition of the local real estate market and can be affected by the local economic conditions. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1-to-4 Family Residential Loans | At December 31, 2012, the Company had pre-approved but unused lines of credit totaling $55.2 million. In management’s opinion, these commitments, and undisbursed proceeds on loans reflected above, represent no more than normal lending risk to the Company and will be funded from normal sources of liquidity. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential 1-to-4 family loans are mortgage loans secured by residential real estate within the Bank’s market areas. These loans may also include loans that convert from construction loans into permanent financing and are secured by properties within the Bank’s market areas. | A description of the various loan products provided by the Bank is presented below. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Real Estate Loans | Residential 1 to 4 Family Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate loans are underwritten based on the borrower’s ability to generate adequate cash flow to repay the subject debt within reasonable terms. Commercial real estate loans typically include both owner and non-owner occupied properties with higher principal loan amounts and the repayment of these loans is generally dependent on the successful management of the property. Commercial real estate loans are sensitive to market and general economic conditions. Repayment analysis must be performed and consists of an identified primary/cash flow source of repayment and a secondary/liquidation source of repayment. The primary source of repayment is cash flow from income generated from rental or lease of the property. However, the cash flow can be supplemented with the borrower’s and guarantor’s global cash flow position. Other credit issues such as the business fundamentals and financial strength of the borrower/guarantor can be considered in determining adequacy of repayment ability. The secondary source of repayment is liquidation of the collateral, supplemented by a liquidation cushion provided by the financial assets of the borrower/ guarantor. Management monitors and evaluates commercial real estate loans based on collateral, market area, and risk grade. | Residential 1 to 4 family loans are mortgage loans that typically convert from construction loans into permanent financing and are secured by properties within the Bank’s market areas. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family Residential Loans | Commercial Real Estate Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential loans are typically non-farm properties with 5 or more dwelling units in structures which include apartment buildings used primarily to accommodate households on a more or less permanent basis. Successful performance of these types of loans is primarily dependant on occupancy rates, rental rates, and property management. | Commercial real estate loans are underwritten based on the borrower’s ability to generate adequate cash flow to repay the subject debt within reasonable terms. Commercial real estate loans typically include both owner and non-owner occupied properties with higher principal loan amounts and the repayment of these loans is generally dependent on the successful management of the property. Commercial real estate loans are sensitive to market and general economic conditions. Repayment analysis must be performed and consists of an identified primary/cash flow source of repayment and a secondary/liquidation source of repayment. The primary source of repayment is cash flow from income generated from rental or lease of the property. However, the cash flow can be supplemented with the borrower’s and guarantor’s global cash flow position. Other credit issues such as the business fundamentals and financial strength of the borrower/guarantor can be considered in determining adequacy of repayment ability. The secondary source of repayment is liquidation of the collateral, supplemented by liquidation cushion provided by the financial assets of the borrower/guarantor. Management monitors and evaluates commercial real estate loans based on collateral, market area, and risk grade. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction Loans | Multi-family Residential Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction loans are non-revolving extensions of credit secured by real property of which the proceeds are used to acquire and develop land and to construct commercial or residential buildings. The primary source of repayment for these types of loans is the sale of the improved property or permanent financing in which case the property is expected to generate the cash flow necessary for repayment on a permanent loan basis. Property cash flow may be supplemented with financial support from the borrowers/guarantors. Proper underwriting of a construction loan consists of the initial process of obtaining, analyzing, and approving various aspects of information pertaining to: the analysis of the permanent financing source, creditworthiness of the borrower and guarantors, ability of contractor to perform under the terms of the contract, and the feasibility, marketability, and valuation of the project. | Multi-family residential loans are typically nonfarm properties with 5 or more dwelling units in structures which include apartment buildings used primarily to accommodate households on a more or less permanent basis. Successful performance of these types of loans is primarily dependant on occupancy rates, rental rates, and property management. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Also much consideration needs to be given to the cost of the project and sources of funds needed to complete construction as well as identifying any sources of equity funding. Construction loans are traditionally considered to be higher risk loans involving technical and legal requirements inherently different from other types of loans; however with thorough credit underwriting, proper loan structure, and diligent loan servicing, these risks can often be mitigated. Some examples of risks inherent in this type of lending include: underestimated costs, inflation of material and labor costs, site difficulties (i.e. rock, soil), project not built to plans, weather delays and natural disasters, borrower/contractor/subcontractor disputes which prompt liens, interest rates increasing beyond budget. | Construction Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Home Equity Lines of Credit | Construction loans are non-revolving extensions of credit secured by real property of which the proceeds are used to acquire and develop land and to construct commercial or residential buildings. The primary source of repayment for these types of loans is the sale of the improved property or permanent financing in which case the property is expected to generate the cash flow necessary for repayment on a permanent loan basis. Property cash flow may be supplemented with financial support from the borrowers/guarantors. Proper underwriting of a construction loan consists of the initial process of obtaining, analyzing, and approving various aspects of information pertaining to: the analysis of the permanent financing source, creditworthiness of the borrower and guarantors, ability of contractor to perform under the terms of the contract, and the feasibility, marketability, and valuation of the project. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Home equity lines of credit are consumer-purpose revolving extensions of credit which are secured by first or second liens on owner-occupied residential real estate. Appropriate risk management and compliance practices are exercised to ensure that loan-to-value, lien perfection, and compliance risks are addressed and managed within the Bank’s established guidelines. The degree of utilization of revolving commitments within this loan segment is reviewed periodically to identify changes in the behavior of this borrowing group. | Also, much consideration needs to be given to the cost of the project and sources of funds needed to complete construction as well as identifying any sources of equity funding. Construction loans are traditionally considered to be higher risk loans involving technical and legal requirements inherently different from other types of loans; however with thorough credit underwriting, proper loan structure, and diligent loan servicing, these risks can be mitigated. Some examples of risks inherent in this type of lending include: underestimated costs, inflation of material and labor costs, site difficulties (i.e. rock, soil), project not built to plans, weather delays and natural disasters, borrower/contractor/subcontractor disputes which prompt liens, interest rates increasing beyond budget. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and Industrial Loans | Home Equity Lines of Credit | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial loans are underwritten after evaluating and understanding the borrower’s ability to generate positive cash flow, operate profitably and prudently expand its business. Underwriting standards are designed to promote relationships to include a full range of loan, deposit, and cash management services. Commercial and industrial loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower and the guarantors. The cash flows of the borrower, however, may not be as expected and the collateral securing these loans may fluctuate in value. In the case of loans secured by accounts receivable, the availability of funds for repayment can be impacted by the borrower’s ability to collect amounts due from its customers. | Home equity lines of credit are consumer-purpose revolving extensions of credit which are secured by first or second liens on owner-occupied residential real estate. Appropriate risk management and compliance practices are exercised to ensure that loan-to-value, lien perfection, and compliance risks are addressed and managed within the Bank’s established guidelines. The degree of utilization of revolving commitments within this loan segment is reviewed periodically to identify changes in the behavior of this borrowing group. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to Individuals & Overdrafts | Commercial and Industrial Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer loans are approved using Bank policies and procedures established to evaluate each credit request. All lending decisions and credit risks are clearly documented. Several factors are considered in making these decisions such as credit score, adjusted net worth, liquidity, debt ratio, disposable income, credit history, and loan-to-value of the collateral. This process combined with the relatively smaller loan amounts spreads the risk among many individual borrowers. Overdrafts on customer accounts are classified as loans for reporting purposes. | Commercial and industrial loans are underwritten after evaluating and understanding the borrower’s ability to generate positive cash flow, operate profitably and prudently expand its business. Underwriting standards are designed to promote relationships to include a full range of loan, deposit, and cash management services. Commercial and industrial loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower and the guarantors. The cash flows of the borrower, however, may not be as expected and the collateral securing these loans may fluctuate in value. In the case of loans secured by accounts receivable, the availability of funds for repayment can be impacted by the borrower’s ability to collect amounts due from its customers. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following tables present an age analysis of past due loans, segregated by class of loans as of September 30, 2013 and December 31, 2012, respectively: | Loans to Individuals | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2013 | Consumer loans are approved using Bank policies and procedures established to evaluate each credit request. All lending decisions and credit risks are clearly documented. Several factors are considered in making these decisions such as credit score, adjusted net worth, liquidity, debt ratio, disposable income, credit history, and loan-to-value of the collateral. This process combined with the relatively smaller loan amounts spreads the risk among many individual borrowers. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30+ Days Past Due | Non- Accrual Loans | Total | Current | Total | Overdrafts | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Past Due | Loans | Overdrafts on customer accounts are classified as loans for reporting purposes. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | Related Parties | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | — | $ | 137 | $ | 137 | $ | 29,096 | $ | 29,233 | The Bank has had loan transactions with its directors and executive officers. Such loans were made in the ordinary course of business and on substantially the same terms and collateral as those for comparable transactions prevailing at the time and did not involve more than the normal risk of collectability or present other unfavorable features. The following table represents loan transactions for directors and executive officers who held that position as of December 31, 2012. A summary of related party loan transactions, in thousands, is as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | 115 | 1,023 | 1,138 | 50,812 | 51,950 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | — | 1,004 | 1,004 | 18,141 | 19,145 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | 4,350 | 4,350 | 170,396 | 174,746 | Balance at January 1, 2012 | $ | 14,262 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals & overdrafts | 22 | 7 | 29 | 8,165 | 8,194 | Exposure of directors/executive officers added in 2012 | 92 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1-to-4 family residential | 369 | 847 | 1,216 | 32,941 | 34,157 | Borrowings | 3,227 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | 60 | 773 | 833 | 31,373 | 32,206 | Directors, resigned or retired from board in 2012 | (4,066 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred loan (fees) cost, net | — | — | — | — | -544 | Loan repayments | (10,699 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 566 | $ | 8,141 | $ | 8,707 | $ | 340,924 | $ | 349,087 | Balance at December 31, 2012 | $ | 2,816 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
There were no loans that were more than 90 days past due and still accruing interest at September 30, 2013. | At December 31, 2012, there was $1.1 million of unused lines of credit outstanding to directors and executive officers of the Company and its subsidiaries. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2012 | Non-Accrual and Past Due Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30+ Days Past Due | Non- Accrual Loans | Total | Current | Total | The following tables present as of December 31, 2012 and 2011 an age analysis of past due loans, segregated by class of loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Past Due | Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 215 | $ | 319 | $ | 534 | $ | 28,763 | $ | 29,297 | 2012 | 30+ Days Past Due | Non-Accrual Loans | Total | Current | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | 138 | 2,298 | 2,436 | 45,784 | 48,220 | Past Due | Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | — | 1,482 | 1,482 | 18,042 | 19,524 | (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 241 | 4,373 | 4,614 | 182,335 | 186,949 | Commercial and industrial | $ | 215 | $ | 319 | $ | 534 | $ | 28,763 | $ | 29,297 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals & overdrafts | 19 | 11 | 30 | 8,704 | 8,734 | Construction | 138 | 2,298 | 2,436 | 45,784 | 48,220 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 to 4 family residential | 536 | 1,061 | 1,597 | 39,420 | 41,017 | Multi-family residential | — | 1,482 | 1,482 | 18,042 | 19,524 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | 30 | 582 | 612 | 33,991 | 34,603 | Commercial real estate | 241 | 4,373 | 4,614 | 182,335 | 186,949 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred loan (fees) cost, net | — | — | — | — | -452 | Loans to individuals & overdrafts | 19 | 11 | 30 | 8,704 | 8,734 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 1,179 | $ | 10,126 | $ | 11,305 | $ | 357,039 | $ | 367,892 | 1 to 4 family residential | 536 | 1,061 | 1,597 | 39,420 | 41,017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
There were no loans greater than 90 days past due and still accruing interest at December 31, 2012. | HELOC | 30 | 582 | 612 | 33,991 | 34,603 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred loan (fees) cost, net | (452 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impaired Loans | $ | 1,179 | $ | 10,126 | $ | 11,305 | $ | 357,039 | $ | 367,892 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following tables present information on loans that were considered to be impaired as of September 30, 2013 and December 31, 2012: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2011 | 30+ Days Past Due | Non-Accrual Loans | Total | Current | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of September 30, 2013 | Three months ended September 30, 2013 | Nine months ended September 30, 2013 | Past Due | Loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recorded Investment | Contractual Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest | Average Recorded Investment | Interest | (dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Recognized | Income Recognized | Commercial and industrial | $ | 48 | $ | 171 | $ | 219 | $ | 32,927 | $ | 33,146 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
on Impaired | on Impaired | Construction | 568 | 4,072 | 4,640 | 66,206 | 70,846 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | Loans | Multi-family residential | 1,540 | — | 1,540 | 21,837 | 23,377 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | Commercial real estate | 1,013 | 10,425 | 11,438 | 180,609 | 192,047 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
With no related allowance recorded: | Loans to individuals & overdrafts | 10 | 176 | 186 | 7,485 | 7,671 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 628 | $ | 822 | $ | — | $ | 644 | $ | 27 | $ | 543 | $ | 31 | 1 to 4 family residential | 735 | 1,875 | 2,610 | 49,572 | 52,182 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | 1,885 | 2,137 | — | 1,787 | 5 | 2,006 | 8 | HELOC | 333 | 904 | 1,237 | 37,465 | 38,702 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 3,576 | 4,798 | — | 5,494 | — | 5,297 | — | Deferred loan (fees) cost, net | (347 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals & overdrafts | 1 | 1 | — | 1 | — | 2 | — | $ | 4,247 | $ | 17,623 | $ | 21,870 | $ | 396,101 | $ | 417,624 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | 2,395 | 2,395 | — | 2,401 | — | 1,915 | — | There were no loans greater than 90 days past due and still accruing interest at December 31, 2012. At December 31, 2011 there were three loans totaling $108,000 that were 90 or more days past due and still accruing interest. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 to 4 family residential | 3,345 | 3,686 | — | 2,955 | 100 | 2,877 | 133 | Loans are placed on non-accrual basis when it has been determined that all contractual principal and interest will not be received. Any payments received on these loans are applied to principal first and then to interest only after all principal has been collected. Impaired loans include all loans in non-accrual status, all troubled debt restructures, all substandard loans that are deemed to be collateral dependent, and other loans that management determines require reserves. In the case of an impaired loan that is still on accrual basis, payments are applied to both principal and interest. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | 775 | 1,007 | — | 629 | 3 | 552 | 4 | Impaired Loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal: | 12,605 | 14,846 | — | 13,911 | 135 | 13,192 | 176 | The following tables present information on loans that were considered to be impaired as of December 31, 2012 and December 31, 2011: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 14 | 14 | 7 | 7 | — | 60 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | 462 | 540 | 43 | 580 | 10 | 451 | 12 | Contractual Unpaid Principal Balance | 31-Dec-12 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 5,658 | 5,658 | 361 | 3,850 | 143 | 4,527 | 202 | Year to Date | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals & overdrafts | 10 | 10 | 2 | 12 | — | 17 | — | Recorded Investment | Related Allowance for Loan Losses | Average Recorded Investment | Interest Income Recognized on Impaired Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | — | — | — | — | — | 10 | — | (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 to 4 family residential | 765 | 764 | 75 | 1,146 | 1 | 967 | 8 | 2012:00:00 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | 154 | 181 | 117 | 352 | 3 | 254 | 3 | With no related allowance recorded: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal: | 7,063 | 7,167 | 605 | 5,947 | 157 | 6,286 | 225 | Commercial and industrial | $ | 545 | $ | 810 | $ | — | $ | 496 | $ | 20 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Totals: | Construction | 2,376 | 2,940 | — | 2,088 | 20 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | 14,618 | 16,364 | 410 | 14,763 | 123 | 14,809 | 253 | Commercial real estate | 5,987 | 6,475 | — | 9,988 | 195 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer | 11 | 11 | 2 | 13 | — | 19 | — | Loans to individuals & overdrafts | 3 | 13 | — | 123 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential | 5,039 | 5,638 | 192 | 5,082 | 107 | 4,650 | 148 | Multi-family residential | 1,442 | 1,442 | — | 1,501 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Grand Total: | $ | 19,668 | $ | 22,013 | $ | 605 | $ | 19,858 | $ | 230 | $ | 19,478 | $ | 401 | HELOC | 641 | 821 | — | 891 | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impaired loans at September 30, 2013 were approximately $19.7 million and were comprised of $8.1 million in nonaccrual loans and $11.6 million in loans that were still accruing interest. Recorded investment represents the current principal balance of the loan. Approximately $7.1 million in impaired loans had specific allowances provided for them while the remaining $12.6 million had no specific allowances recorded at September 30, 2013. Of the $12.6 million with no allowance recorded, $3.9 million of those loans have had partial charge-offs recorded. | 1 to 4 family residential | 2,725 | 2,995 | — | 1,985 | 123 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal: | 13,719 | 15,496 | — | 17,072 | 364 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2012 | Three months ended September 30, 2012 | Nine months ended September 30, 2012 | Commercial and industrial | 65 | 66 | 51 | 80 | 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recorded Investment | Contractual Unpaid Principal Balance | Related Allowance for Loan Losses | Average Recorded Investment | Interest | Average Recorded Investment | Interest | Construction | 266 | 266 | 64 | 1,358 | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income | Income | Commercial real estate | 4,505 | 5,474 | 581 | 3,433 | 298 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recognized | Recognized | Loans to individuals & overdrafts | 21 | 21 | 4 | 27 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
on Impaired | on Impaired | Multi-family Residential | 40 | 40 | 9 | 25 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | Loans | HELOC | 179 | 179 | 43 | 235 | 10 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | 1 to 4 family residential | 926 | 926 | 157 | 1,089 | 56 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2012:00:00 | Subtotal: | 6,002 | 6,972 | 909 | 6,247 | 376 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
With no related allowance recorded: | Totals: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 545 | $ | 810 | $ | — | $ | 503 | $ | 4 | $ | 483 | $ | 17 | Commercial | 15,226 | 17,513 | 705 | 18,969 | 544 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | 2,376 | 2,940 | — | 2,550 | 10 | 2,017 | 16 | Consumer | 24 | 34 | 4 | 150 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 5,987 | 6,475 | — | 11,411 | — | 10,989 | 233 | Residential | 4,471 | 4,921 | 200 | 4,200 | 195 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals & overdrafts | 3 | 13 | — | 108 | — | 153 | — | Grand Total: | $ | 19,721 | $ | 22,468 | $ | 909 | $ | 23,319 | $ | 740 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | 1,442 | 1,442 | — | 1,492 | — | 1,516 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 to 4 family residential | 2,725 | 2,995 | — | 1,616 | 26 | 1,800 | 39 | Impaired loans at December 31, 2012 were approximately $19.7 million and were comprised of $10.1 million in non-accrual loans and $9.6 million in loans still in accruing status. Recorded investment represents the current principal balance for the loan. Approximately, $6.0 million of the $19.7 million in impaired loans at December 31, 2012 had specific allowances provided while the remaining $13.7 million had no specific allowances recorded. Of the $13.7 million with no allowance recorded, $3.0 million of those loans had partial charge-offs recorded. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | 641 | 821 | — | 1,018 | — | 954 | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal: | 13,719 | 15,496 | — | 18,698 | 40 | 17,912 | 310 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
With an allowance recorded: | Contractual Unpaid Principal Balance | 31-Dec-11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 65 | 66 | 51 | 108 | 10 | 84 | 10 | Year to Date | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | 266 | 266 | 64 | 733 | — | 1,631 | 5 | Recorded Investment | Related Allowance | Average Recorded Investment | Interest Income Recognized on Impaired Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 4,505 | 5,474 | 581 | 2,492 | 40 | 3,165 | 53 | (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals & overdrafts | 21 | 21 | 4 | 22 | 2 | 29 | 2 | 2011:00:00 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | 40 | 40 | 9 | 41 | — | 21 | — | With no related allowance recorded: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 to 4 family residential | 926 | 926 | 43 | 1,503 | 63 | 1,129 | 87 | Commercial and industrial | $ | 478 | $ | 808 | $ | — | $ | 290 | $ | 25 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | 179 | 179 | 157 | 128 | — | 249 | 3 | Construction | 1,011 | 1,166 | — | 1,539 | 23 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal: | 6,002 | 6,972 | 909 | 5,027 | 115 | 6,308 | 160 | Commercial real estate | 9,195 | 10,085 | — | 7,889 | 158 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Totals: | Loans to individuals & overdrafts | 217 | 234 | — | 175 | 4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | 15,226 | 17,513 | 705 | 19,330 | 64 | 19,906 | 334 | Multi-family residential | 1,540 | 1,540 | — | 1,041 | 102 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer | 24 | 34 | 4 | 130 | 2 | 182 | 2 | 1 to 4 family residential | 2,100 | 2,929 | — | 1,747 | 33 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential | 4,471 | 4,921 | 200 | 4,265 | 89 | 4,132 | 134 | HELOC | 730 | 824 | — | 405 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Grand Total: | $ | 19,721 | $ | 22,468 | $ | 909 | $ | 23,725 | $ | 155 | $ | 24,220 | $ | 470 | Subtotal: | 15,271 | 17,586 | — | 13,086 | 345 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impaired loans at December 31, 2012 were approximately $19.7 million and were comprised of $10.1 million in nonaccrual loans and $9.6 million in loans that were still accruing interest. Approximately $6.0 million in impaired loans had specific allowances provided for them while the remaining $13.7 million had no specific allowances recorded at December 31, 2012. Of the $13.7 million with no allowance recorded, $3.0 million of those loans had partial charge-offs recorded. | With an allowance recorded: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans are placed on non-accrual status when it has been determined that all contractual principal and interest will not be received. Any payments received on these loans are applied to principal first and then to interest only after all principal has been collected. In the case of an impaired loan that is still on accrual basis, payments are applied to both principal and interest. | Commercial and industrial | — | — | — | 272 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | Construction | 3,365 | 4,085 | 674 | 1,269 | 4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following table presents loans that were modified as troubled debt restructurings (“TDRs”) with a breakdown of the types of concessions made by loan class during the three and nine months ended 2013 and 2012: | Commercial real estate | 5,039 | 5,929 | 498 | 4,043 | 71 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals & overdrafts | 16 | 16 | 15 | 102 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family Residential | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | 1 to 4 family residential | 736 | 774 | 170 | 2,000 | 35 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30-Sep-13 | 30-Sep-13 | HELOC | 408 | 435 | 158 | 320 | 10 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number | Pre- | Post- | Number | Pre- | Post- | Subtotal: | 9,564 | 11,239 | 1,515 | 8,006 | 121 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
of loans | Modification | Modification | of loans | Modification | Modification | Totals: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding Recorded Investment | Outstanding Recorded Investment | Outstanding Recorded Investment | Outstanding Recorded Investment | Commercial | 20,628 | 23,613 | 1,172 | 16,343 | 383 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Consumer | 233 | 250 | 15 | 277 | 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Below market interest rate: | Residential | 3,974 | 4,962 | 328 | 4,472 | 78 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | $ | — | $ | — | — | $ | — | $ | — | Grand Total: | $ | 24,835 | $ | 28,825 | $ | 1,515 | $ | 21,092 | $ | 466 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | — | Impaired loans at December 31, 2011 were approximately $24.8 million and were comprised of $17.6 million in non-accrual loans and $7.2 million in loans still in accruing status. Approximately, $9.6 million of the $24.8 million in impaired loans at December 31, 2011 had specific allowances provided while the remaining $15.3 million had no specific allowances recorded. Of the $15.3 million with no allowance recorded, $5.3 million of those loans had partial charge-offs recorded. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals & overdrafts | — | — | — | — | — | — | Troubled Debt Restructurings | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1-to-4 family residential | 3 | 276 | 275 | 3 | 276 | 275 | The following table presents loans that were modified as TDRs within the previous twelve months with a breakdown of the types of concessions made by loan class during the twelve months ended December 31, 2012 and 2011: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 3 | 276 | 275 | 3 | 276 | 275 | Twelve Months Ended December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Extended payment terms: | Number of loans | Pre-Modification Outstanding Recorded investments | Post-Modification Outstanding Recorded investments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | — | — | 4 | 537 | 522 | (dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | 2 | 134 | 133 | Below market interest rate: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | 1 | 645 | 645 | Commercial and Industrial | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals & overdrafts | — | — | — | — | — | — | Construction | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1-to-4 family residential | 2 | 945 | 933 | 4 | 1,084 | 1,071 | Commercial real estate | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | — | — | — | — | — | — | Loans to individuals and overdrafts | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | — | — | — | — | — | — | 1 to 4 family residential | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 2 | 945 | 933 | 11 | 2,400 | 2,371 | HELOC | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other: | Total | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | — | — | — | — | — | Extended payment terms: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | 1 | 69 | 68 | 1 | 69 | 68 | Commercial and Industrial | 1 | 116 | 114 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | 2 | 2,454 | 2,433 | Construction | 2 | 294 | 284 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals & overdrafts | — | — | — | — | — | — | Commercial real estate | 4 | 1,281 | 863 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1-to-4 family residential | — | — | — | 2 | 135 | 130 | Multi-family residential | 1 | 1,524 | 1,514 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | — | — | — | — | — | — | Loans to individuals and overdrafts | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | — | — | — | — | — | — | 1 to 4 family residential | 2 | 100 | 96 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 1 | 69 | 68 | 5 | 2,658 | 2,631 | HELOC | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 6 | $ | 1,290 | $ | 1,276 | 19 | $ | 5,334 | $ | 5,277 | Total | 10 | 3,315 | 2,871 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and Industrial | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | Construction | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30-Sep-12 | 30-Sep-12 | Commercial real estate | 2 | 849 | 837 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of loans | Pre- Modification Outstanding Recorded Investment | Post- Modification Outstanding Recorded Investment | Number of loans | Pre- Modification Outstanding Recorded Investment | Post- Modification Outstanding Recorded Investment | Loans to individuals and overdrafts | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 1 to 4 family residential | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Below market interest rate: | HELOC | 6 | 306 | 301 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | $ | — | $ | — | — | $ | — | $ | — | Total | 8 | 1,155 | 1,138 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | — | Total | 18 | $ | 4,470 | $ | 4,009 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | — | — | As noted in the table above, there were eight loans that were considered troubled debt restructures for reasons other than below market interest rates, extended terms or forgiveness of principal. These loans were renewed at terms that vary from those that the Company would enter into for new loans of this type. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals & overdrafts | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1-to-4 family residential | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | — | — | — | — | — | — | Twelve Months Ended December 31, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | — | — | — | — | — | — | Number of loans | Pre-Modification Outstanding Recorded Investments | Post-Modification Outstanding Recorded investments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | — | — | — | — | — | — | (dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Extended payment terms: | Below market interest rate: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | — | — | 1 | 116 | 114 | Commercial and Industrial | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | 2 | 294 | 286 | Construction | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | 4 | 1,281 | 1,128 | Commercial real estate | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals & overdrafts | — | — | — | — | — | — | Loans to individuals and overdrafts | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1-to-4 family residential | 2 | 100 | 97 | 2 | 100 | 97 | 1 to 4 family residential | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | 1 | 1,524 | 1,514 | 1 | 1,524 | 1,515 | HELOC | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | — | — | — | — | — | — | Total | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 3 | 1,624 | 1,611 | 10 | 3,315 | 3,140 | Extended payment terms: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other: | Commercial and Industrial | 1 | 211 | 211 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | — | — | — | — | — | Construction | 3 | 3,226 | 3,226 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | — | Commercial real estate | 11 | 6,502 | 6,473 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | 2 | 849 | 842 | Loans to individuals and overdrafts | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals & overdrafts | — | — | — | — | — | — | 1 to 4 family residential | 5 | 456 | 453 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1-to-4 family residential | 1 | 79 | 79 | 5 | 244 | 240 | HELOC | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | — | — | — | — | — | — | Total | 20 | 10,395 | 10,363 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | — | — | — | — | — | — | Forgiveness of principal: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 1 | 79 | 79 | 7 | 1,093 | 1,082 | Commercial and Industrial | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 4 | $ | 1,703 | $ | 1,690 | 17 | $ | 4,408 | $ | 4,222 | Construction | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As noted in the tables above, there were loans that were considered troubled debt restructurings for reasons other than below market interest rates, extended payment terms or forgiveness of principal. Loans in the “Other” category are those that were renewed at terms that vary from those that the Bank would enter into for new loans of the same type. | Commercial real estate | 1 | 938 | 635 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals and overdrafts | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following table presents loans that were modified as TDRs within the past twelve months with a breakdown of the types for which there was a payment default together with concessions made by loan class during the three and nine month period ended September 30, 2013 and 2012: | Multi-family residential | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 to 4 family residential | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2013 | Nine months ended | Total | 1 | 938 | 635 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30-Sep-13 | Total | 21 | $ | 11,333 | $ | 10,998 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number | Recorded investment | Number | Recorded investment | The following table presents loans that were modified as troubled debt restructurings (“TDRs”) within the previous twelve months for which there was a payment default together with a breakdown of the types of concessions made by loan class during the twelve months ended December 31, 2012 and 2011: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
of loans | of loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Below market interest rate: | Twelve months ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | $ | — | — | $ | — | 31-Dec-12 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | Number of loans | Recorded investment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | (dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals & overdrafts | — | — | — | — | Below market interest rate: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1-to-4 family residential | — | — | — | — | Commercial and Industrial | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | — | — | — | — | Construction | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | — | — | — | — | Commercial real estate | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | — | — | — | — | Loans to individuals and overdrafts | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Extended payment terms: | 1 to 4 family residential | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | — | 2 | 156 | HELOC | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | 2 | 132 | Total | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | Extended payment terms: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals & overdrafts | — | — | Commercial and Industrial | 1 | 114 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1-to-4 family residential | — | — | 1 | 47 | Construction | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | — | — | Commercial real estate | 5 | 2,377 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | — | — | Loans to individuals and overdrafts | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | — | — | 5 | 335 | Multi-family residential | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Forgiveness of principal: | 1 to 4 family residential | 2 | 96 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | — | — | — | HELOC | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | Total | 8 | 2,587 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | Forgiveness of principal: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals and overdrafts | — | — | — | — | Commercial and Industrial | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1-to-4 family residential | — | — | — | — | Construction | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | — | — | — | — | Commercial real estate | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | — | — | — | — | Loans to individuals and overdrafts | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | — | — | — | — | 1 to 4 family residential | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other: | HELOC | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | — | — | — | Total | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | Other: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | 1 | 161 | Commercial and industrial | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals and overdrafts | — | — | — | — | Construction | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1-to-4 family residential | — | — | — | — | Commercial real estate | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | — | — | — | — | Loans to individuals and overdrafts | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | — | — | — | — | 1-to-4 family residential | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | — | — | 1 | 161 | Multi-family residential | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | — | $ | — | 6 | $ | 496 | HELOC | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 8 | $ | 2,587 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2012 | Nine months ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30-Sep-12 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number | Recorded investment | Number | Recorded investment | Twelve months ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
of loans | of loans | 31-Dec-11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Number of loans | Recorded investment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Below market interest rate: | (dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | $ | — | — | $ | — | Below market interest rate: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | Commercial and Industrial | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | Construction | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals & overdrafts | — | — | — | — | Commercial real estate | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1-to-4 family residential | — | — | — | — | Loans to individuals and overdrafts | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | — | — | — | — | 1 to 4 family residential | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | — | — | — | — | HELOC | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | — | — | — | — | Total | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Extended payment terms: | Extended payment terms: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | — | 1 | 114 | Commercial and Industrial | 1 | 211 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | 2 | 286 | Construction | 1 | 1,170 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | 4 | 1,128 | Commercial real estate | 1 | 1,472 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals & overdrafts | — | — | — | — | Loans to individuals and overdrafts | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1-to-4 family residential | 2 | 96 | 2 | 96 | 1 to 4 family residential | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | 1 | 1,514 | 1 | 1,514 | HELOC | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | — | — | — | — | Total | 3 | 2,853 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 3 | 1,610 | 10 | 3,138 | Forgiveness of principal: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Forgiveness of principal: | Commercial and Industrial | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | — | — | — | Construction | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | Commercial real estate | 1 | 635 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | Loans to individuals and overdrafts | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals and overdrafts | — | — | — | — | 1 to 4 family residential | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1-to-4 family residential | — | — | — | — | HELOC | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | — | — | — | — | Total | 1 | 635 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | — | — | — | — | Total | 4 | $ | 3,488 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | — | — | — | — | The following table presents the successes and failures of the types of modifications within the previous twelve months as of December 31, 2012 and 2011: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | Paid in full | Paying as restructured | Converted to | Foreclosure/Default | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | 2 | 842 | non-accrual | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals and overdrafts | — | — | — | — | Number | Recorded Investment | Number | Recorded Investment | Number | Recorded Investment | Number | Recorded Investment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1-to-4 family residential | 1 | 79 | 5 | 241 | of loans | of loans | of loans | of loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | — | — | — | — | (dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | — | — | — | — | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 1 | 79 | 7 | 1,083 | Below market interest rate | — | $ | — | — | $ | — | — | $ | — | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 4 | $ | 1,689 | 17 | $ | 4,221 | Extended payment terms | — | — | 7 | 2,694 | 1 | 40 | 2 | 137 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As noted in the table above, there were loans considered to be troubled debt restructurings for reasons other than below market interest rates, extended terms or forgiveness of principal. Loans in the “Other” category are those that were renewed at terms that vary from those that the Bank would enter into for new loans of the same type. | Forgiveness of principal | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
At September 30, 2013, the Bank had forty-six loans with a total balance of $10.6 million that were considered to be troubled debt restructurings. Of those TDRs, thirty-one loans with balances totaling $9.3 million were still accruing as of September 30, 2013. The remaining TDRs with balances totaling $1.3 million as of September 30, 2013 were in non-accrual status. | Other | — | — | 8 | 1,138 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Quality Indicators | Total | — | $ | — | 15 | $ | 3,832 | 1 | $ | 40 | 2 | $ | 137 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As part of the on-going monitoring of the credit quality of the loan portfolio, management utilizes a risk grading matrix to assign a risk grade to each of the Company’s loans. All non-consumer loans are graded on a scale of 1 to 9. A description of the general characteristics of these nine different risk grades is as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
• | Risk Grade 1 (Superior) — Credits in this category are virtually risk-free and are well-collateralized by cash-equivalent instruments. The repayment program is well-defined and achievable. Repayment sources are numerous. No material documentation deficiencies or exceptions exist. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
• | Risk Grade 2 (Very Good) — This grade is reserved for loans secured by readily marketable collateral, or loans within guidelines to borrowers with liquid financial statements. A liquid financial statement is a financial statement with substantial liquid assets relative to debts. These loans have excellent sources of repayment, with no significant identifiable risk of collection, and conform in all respects to Bank policy, guidelines, underwriting standards, and Federal and State regulations (no exceptions of any kind). | Paid in full | Paying as restructured | Converted to | Foreclosure/Default | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
• | Risk Grade 3 (Good) — These loans have excellent sources of repayment, with no significant identifiable risk of collection. Generally, loans assigned this risk grade will demonstrate the following characteristics: Conformity in all respects with Bank policy, guidelines, underwriting standards, and Federal and State regulations (no exceptions of any kind). Loans assigned this risk grade will demonstrate the following characteristics: | non-accrual | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
º | Documented historical cash flow that meets or exceeds required minimum Bank guidelines, or that can be supplemented with verifiable cash flow from other sources. | Number of loans | Recorded Investment | Number of loans | Recorded Investment | Number of loans | Recorded Investment | Number of loans | Recorded Investment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
º | Adequate secondary sources to liquidate the debt, including combinations of liquidity, liquidation of collateral, or liquidation value to the net worth of the borrower or guarantor. | (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
• | Risk Grade 4 (Acceptable) — This grade is given to acceptable loans. These loans have adequate sources of repayment, with little identifiable risk of collection. Loans assigned this risk grade will demonstrate the following characteristics: | 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
º | General conformity to the Bank’s policy requirements, product guidelines and underwriting standards, with limited exceptions. Any exceptions that are identified during the underwriting and approval process have been adequately mitigated by other factors. | Below market interest rate | — | $ | — | — | $ | — | — | $ | — | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
º | Documented historical cash flow that meets or exceeds required minimum Bank guidelines, or that can be supplemented with verifiable cash flow from other sources. | Extended payment terms | — | — | 7 | 1,379 | 10 | 6,131 | 3 | 2,853 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
º | Adequate secondary sources to liquidate the debt, including combinations of liquidity, liquidation of collateral, or liquidation value to the net worth of the borrower or guarantor. | Forgiveness of principal | — | — | — | — | — | — | 1 | 635 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
• | Risk Grade 5 (Acceptable With Care) — This grade is given to acceptable loans that show signs of weakness in either adequate sources of repayment or collateral, but have demonstrated mitigating factors that minimize the risk of delinquency or loss. Loans assigned this grade may demonstrate some or all of the following characteristics: | Total | — | $ | — | 7 | $ | 1,379 | 10 | $ | 6,131 | 4 | $ | 3,488 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
º | Additional exceptions to the Bank’s policy requirements, product guidelines or underwriting standards that present a higher degree of risk to the Bank. Although the combination and/or severity of identified exceptions is greater, all exceptions have been properly mitigated by other factors. | At December 31, 2012, the Company had thirty-three loans with a balance of $6.6 million that were considered to be troubled debt restructurings. Of those TDRs, fourteen loans with a balance totaling $1.9 million were still accruing as of December, 2012. The remaining nineteen TDRs with a balance totaling $4.7 million were in non-accrual status. All troubled debt restructures are included in non-performing assets and impaired loans. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
º | Unproven, insufficient or marginal primary sources of repayment that appear sufficient to service the debt at this time. Repayment weaknesses may be due to minor operational issues, financial trends, or reliance on projected (not historic) performance. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
º | Marginal or unproven secondary sources to liquidate the debt, including combinations of liquidation of collateral and liquidation value to the net worth of the borrower or guarantor. | Credit Quality Indicators | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
• | Risk Grade 6 (Watch List or Special Mention) — Loans in this category can have the following characteristics: | As part of the on-going monitoring of the credit quality of the loan portfolio, management utilizes a risk grading matrix to assign a risk grade to each of the Company’s loans. All non-consumer loans are graded on a scale of 1 to 9. A description of the general characteristics of these nine different risk grades is as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
º | Loans with underwriting guideline tolerances and/or exceptions and with no mitigating factors. | • | Risk Grade 1 (Superior) — Credits in this category are virtually risk-free and are well-collateralized by cash-equivalent instruments. The repayment program is well-defined and achievable. Repayment sources are numerous. No material documentation deficiencies or exceptions exist. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
º | Extending loans that are currently performing satisfactorily but with potential weaknesses that may, if not corrected, weaken the asset or inadequately protect the Bank’s position at some future date. Potential weaknesses are the result of deviations from prudent lending practices. | • | Risk Grade 2 (Very Good) — This grade is reserved for loans secured by readily marketable collateral, or loans within guidelines to borrowers with liquid financial statements. A liquid financial statement is a financial statement with substantial liquid assets relative to debts. These loans have excellent sources of repayment, with no significant identifiable risk of collection, and conform in all respects to Bank policy, guidelines, underwriting standards, and Federal and State regulations (no exceptions of any kind). | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
º | Loans where adverse economic conditions that develop subsequent to the loan origination that don’t jeopardize liquidation of the debt but do substantially increase the level of risk may also warrant this rating. | • | Risk Grade 3 (Good) — These loans have excellent sources of repayment, with no significant identifiable risk of collection. Generally, loans assigned this risk grade will demonstrate the following characteristics: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
• | Risk Grade 7 (Substandard) — A Substandard loan is inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified as Substandard must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt; they are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Loans consistently not meeting the repayment schedule should be downgraded to substandard. Loans in this category are characterized by deterioration in quality exhibited by any number of well-defined weaknesses requiring corrective action. | º | Conformity in all respects with Bank policy, guidelines, underwriting standards, and Federal and State regulations (no exceptions of any kind). | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
• | Risk Grade 8 (Doubtful) — Loans classified Doubtful have all the weaknesses inherent in loans classified Substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable. However, these loans are not yet rated as loss because certain events may occur which would salvage the debt. | º | Documented historical cash flow that meets or exceeds required minimum Bank guidelines, or that can be supplemented with verifiable cash flow from other sources. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
• | Risk Grade 9 (Loss) — Loans classified as Loss are considered uncollectable and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off the loan even though partial recovery may be affected in the future. | º | Adequate secondary sources to liquidate the debt, including combinations of liquidity, liquidation of collateral, or liquidation value to the net worth of the borrower or guarantor. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer loans are graded on a scale of 1 to 9. A description of the general characteristics of the nine risk grades is as follows: | • | Risk Grade 4 (Acceptable) — This grade is given to acceptable loans. These loans have adequate sources of repayment, with little identifiable risk of collection. Loans assigned this risk grade will demonstrate the following characteristics: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
• | Risk Grades 1 – 5 (Pass) — The loans in this category range from loans secured by cash with no risk of principal deterioration (Risk Grade 1) to loans that show signs of weakness in either adequate sources of repayment or collateral but have demonstrated mitigating factors that minimize the risk of delinquency or loss (Risk Grade 5). | º | General conformity to the Bank’s policy requirements, product guidelines and underwriting standards, with limited exceptions. Any exceptions that are identified during the underwriting and approval process have been adequately mitigated by other factors. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
• | Risk Grade 6 (Watch List or Special Mention) — Watch List or Special Mention loans include the following characteristics: | º | Documented historical cash flow that meets or exceeds required minimum Bank guidelines, or that can be supplemented with verifiable cash flow from other sources. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
º | Loans within guideline tolerances or with exceptions of any kind that have not been mitigated by other economic or credit factors. | º | Adequate secondary sources to liquidate the debt, including combinations of liquidity, liquidation of collateral, or liquidation value to the net worth of the borrower or guarantor | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
º | Extending loans that are currently performing satisfactorily but with potential weaknesses that may, if not corrected, weaken the asset or inadequately protect the Bank’s position at some future date. Potential weaknesses are the result of deviations from prudent lending practices. | • | Risk Grade 5 (Acceptable With Care) — This grade is given to acceptable loans that show signs of weakness in either adequate sources of repayment or collateral, but have demonstrated mitigating factors that minimize the risk of delinquency or loss. Loans assigned this grade may demonstrate some or all of the following characteristics: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
º | Loans where adverse economic conditions that develop subsequent to the loan origination that don’t jeopardize liquidation of the debt but do substantially increase the level of risk may also warrant this rating. | º | Additional exceptions to the Bank’s policy requirements, product guidelines or underwriting standards that present a higher degree of risk to the Bank. Although the combination and/or severity of identified exceptions is greater, all exceptions have been properly mitigated by other factors. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
• | Risk Grade 7 (Substandard) — A Substandard loan is inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified as Substandard must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt; they are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. | º | Unproven, insufficient or marginal primary sources of repayment that appear sufficient to service the debt at this time. Repayment weaknesses may be due to minor operational issues, financial trends, or reliance on projected (not historic) performance. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
• | Risk Grade 8 (Doubtful) — Loans classified Doubtful have all the weaknesses inherent in loans classified Substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable. However, these loans are not yet rated as loss because certain events may occur which would salvage the debt. | º | Marginal or unproven secondary sources to liquidate the debt, including combinations of liquidation of collateral and liquidation value to the net worth of the borrower or guarantor. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
• | Risk Grade 9 (Loss) — Loans classified Loss are considered uncollectable and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this worthless loan even though partial recovery may be affected in the future. | • | Risk Grade 6 (Watch List or Special Mention) — Loans in this category can have the following characteristics: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following tables present information on risk ratings of the commercial and consumer loan portfolios, segregated by loan class as of September 30, 2013 and December 31, 2012, respectively: | º | Loans with underwriting guideline tolerances and/or exceptions and with no mitigating factors. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
º | Extending loans that are currently performing satisfactorily but with potential weaknesses that may, if not corrected, weaken the asset or inadequately protect the Bank’s position at some future date. Potential weaknesses are the result of deviations from prudent lending practices. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
º | Loans where adverse economic conditions that develop subsequent to the loan origination that don’t jeopardize liquidation of the debt but do substantially increase the level of risk may also warrant this rating. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30-Sep-13 | • | Risk Grade 7 (Substandard) — A Substandard loan is inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified as Substandard must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt; they are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Loans consistently not meeting the repayment schedule should be downgraded to substandard. Loans in this category are characterized by deterioration in quality exhibited by any number of well-defined weaknesses requiring corrective action. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Credit Exposure By | Commercial and industrial | Construction | Commercial real estate | Multi-family residential | • | Risk Grade 8 (Doubtful) — Loans classified Doubtful have all the weaknesses inherent in loans classified Substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable. However, these loans are not yet rated as loss because certain events may occur which would salvage the debt. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Internally Assigned Grade | • | Risk Grade 9 (Loss) — Loans classified as Loss are considered uncollectable and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off the loan even though partial recovery may be affected in the future. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | Consumer loans are graded on a scale of 1 to 9. A description of the general characteristics of the 9 risk grades is as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Superior | $ | 738 | $ | 42 | $ | — | $ | — | • | Risk Grades 1 – 5 (Pass) — The loans in this category range from loans secured by cash with no risk of principal deterioration (Risk Grade 1) to loans that show signs of weakness in either adequate sources of repayment or collateral but have demonstrated mitigating factors that minimize the risk of delinquency or loss (Risk Grade 5). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Very good | — | — | — | — | • | Risk Grade 6 (Watch List or Special Mention) — Watch list or Special Mention loans include the following characteristics: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Good | 5,731 | 1,009 | 18,367 | 6,296 | º | Loans within guideline tolerances or with exceptions of any kind that have not been mitigated by other economic or credit factors. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acceptable | 10,405 | 2,973 | 67,224 | 5,178 | º | Extending loans that are currently performing satisfactorily but with potential weaknesses that may, if not corrected, weaken the asset or inadequately protect the Bank’s position at some future date. Potential weaknesses are the result of deviations from prudent lending practices. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acceptable with care | 6,464 | 45,105 | 62,107 | 5,275 | º | Loans where adverse economic conditions that develop subsequent to the loan origination that don’t jeopardize liquidation of the debt but do substantially increase the level of risk may also warrant this rating. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | 5,173 | 1,285 | 19,522 | 1,392 | • | Risk Grade 7 (Substandard) — A Substandard loan is inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified as Substandard must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt; they are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | 722 | 1,536 | 7,526 | 1,004 | • | Risk Grade 8 (Doubtful) — Loans classified Doubtful have all the weaknesses inherent in loans classified Substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable. However, these loans are not yet rated as loss because certain events may occur which would salvage the debt. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | • | Risk Grade 9 (Loss) — Loans classified Loss are considered uncollectable and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this worthless loan even though partial recovery may be affected in the future. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss | — | — | — | — | The following tables presents information on risk ratings of the commercial and consumer loan portfolios, segregated by loan class as of December 31, 2012 and 2011: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 29,233 | $ | 51,950 | $ | 174,746 | $ | 19,145 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer Credit Exposure By | 1-to-4 family residential | HELOC | Commercial Credit Exposure By | Commercial and industrial | Construction | Commercial real estate | Multi-family residential | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Internally Assigned Grade | Internally Assigned Grade | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 28,601 | $ | 30,014 | (dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | 1,697 | 1,226 | Superior | $ | 296 | $ | 49 | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | 3,859 | 966 | Very good | 7 | 2 | 300 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 34,157 | $ | 32,206 | Good | 7,406 | 715 | 19,623 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acceptable | 7,482 | 3,818 | 66,716 | 7,320 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acceptable with care | 12,803 | 37,625 | 70,895 | 9,704 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer Credit Exposure Based | Loans to individuals & overdrafts | Special mention | 691 | 3,233 | 18,278 | 1,018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On Payment Activity | Substandard | 612 | 2,778 | 11,137 | 1,482 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 6,678 | Doubtful | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-pass | 1,519 | Loss | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 8,197 | $ | 29,297 | $ | 48,220 | $ | 186,949 | $ | 19,524 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-12 | Consumer Credit Exposure By | 1-to-4 family residential | HELOC | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Credit Exposure By | Commercial and industrial | Construction | Commercial real estate | Multi-family residential | Internally Assigned Grade | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Internally Assigned Grade | Pass | $ | 33,944 | $ | 32,347 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | Special mention | 2,839 | 1,103 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Superior | $ | 296 | $ | 49 | $ | — | $ | — | Substandard | 4,234 | 1,153 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Very good | 7 | 2 | 300 | — | $ | 41,017 | $ | 34,603 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Good | 7,406 | 715 | 19,623 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acceptable | 7,482 | 3,818 | 66,716 | 7,320 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acceptable with care | 12,803 | 37,625 | 70,895 | 9,704 | Consumer Credit Exposure Based | Loans to individuals & overdrafts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | 691 | 3,233 | 18,278 | 1,018 | On Payment Activity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | 612 | 2,778 | 11,137 | 1,482 | Pass | $ | 8,634 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | Non-pass | 100 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss | — | — | — | — | $ | 8,734 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 29,297 | $ | 48,220 | $ | 186,949 | $ | 19,524 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer Credit Exposure By | 1-to-4 family residential | HELOC | Commercial Credit Exposure By | Commercial and industrial | Construction | Commercial real estate | Multi-family residential | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Internally Assigned Grade | Internally Assigned Grade | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 33,944 | $ | 32,347 | (dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | 2,839 | 1,103 | Superior | $ | 722 | $ | 59 | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | 4,234 | 1,153 | Very good | 154 | 6 | 429 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 41,017 | $ | 34,603 | Good | 5,184 | 2,369 | 16,510 | 1,064 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acceptable | 8,224 | 6,685 | 67,922 | 12,828 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acceptable with care | 15,048 | 54,087 | 60,604 | 7,820 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer Credit Exposure Based | Loans to individuals & overdrafts | Special mention | 3,062 | 2,671 | 27,177 | 125 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On Payment Activity | Substandard | 752 | 4,969 | 19,405 | 1,540 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 8,634 | Doubtful | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-pass | 100 | Loss | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 8,734 | $ | 33,146 | $ | 70,846 | $ | 192,047 | $ | 23,377 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The allowance for loan losses is a reserve established through provisions for loan losses charged to income and represents management’s best estimate of probable loan losses that have been incurred within the existing portfolio of loans. The allowance, in the judgment of management, is necessary to reserve for estimated losses and risk inherent in the loan portfolio. The Company’s allowance for loan loss methodology is based on historical loss experience by type of credit and internal risk grade, specific homogeneous risk pools and specific loss allocations, with adjustments for current events and conditions. The Company’s process for determining the appropriate level of reserves is designed to account for changes in credit quality as they occur. The provision for loan losses reflect loan quality trends, including the levels of and trends related to past due loans and economic conditions at the local and national levels. It also considers the quality and risk characteristics of the Company’s loan origination and servicing policies and practices. | Consumer Credit Exposure By | 1-to-4 family residential | HELOC | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In determining the loss history to be applied to its ASC 450 loan pools within the allowance for loan losses, the Company has previously used net charge off history for the most recent eight consecutive quarters. For the September 30, 2013 allowance for loan losses, the loss history was expanded to thirteen consecutive quarters of net charge offs. Since the most recent quarters have contained a large number of recoveries and lower charge-offs, resulting in a lower loss history than quarters from 2010 and 2011, management determined that the expansion of loss history better reflects the inherent losses in the current loan portfolio. The impact of this adjustment to the allowance for loan losses resulted in a nearly $1.7 million increase to our loan loss reserves as compared to the methodology previously used. | Internally Assigned Grade | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Individual reserves are calculated according to ASC Section 310-10-35 against loans evaluated individually and deemed to most likely be impaired. All loans in non-accrual status and all substandard loans that are deemed to be collateral dependent are assessed for impairment. | Pass | $ | 43,647 | $ | 35,127 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans are deemed uncollectible based on a variety of credit, collateral, documentation and other issues. In the case of uncollectible receivables, the collateral is considered unsecured and therefore fully charged off. | Special mention | 2,925 | 1,391 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following tables present a roll forward of the Company’s allowance for loan losses by loan class for the three month and nine month periods ended September 30, 2013 and September 30, 2012, respectively: | Substandard | 5,610 | 2,184 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 52,182 | $ | 38,702 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30-Sep-13 | Consumer Credit Exposure Based | Loans to individuals & overdrafts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | Commercial and industrial | Construction | Commercial real estate | 1-to-4 | HELOC | Loans to | Multi- | Total | On Payment Activity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
family residential | individuals & | family | Pass | $ | 7,447 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
overdrafts | residential | Non-pass | 224 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | $ | 7,671 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 250 | $ | 608 | $ | 4,585 | $ | 1,045 | $ | 610 | $ | 62 | $ | 58 | $ | 7,218 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/13 | Allowance for Loan Losses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision (recovery) for loan losses | (58 | ) | (56 | ) | 218 | (428 | ) | 153 | 14 | 28 | (129 | ) | The allowance for loan losses is a reserve established through provisions for loan losses charged to income and represents management’s best estimate of probable loans losses that have been incurred within the existing portfolio of loans. The allowance, in the judgment of management, is necessary to reserve for estimated losses and risk inherent in the loan portfolio. The Company’s allowance for loan loss methodology is based on historical loss experience by type of credit and internal risk grade, specific homogeneous risk pools and specific loss allocations, with adjustments for current events and conditions. The Company’s process for determining the appropriate level of reserves is designed to account for changes in credit quality as they occur The provision for loan losses reflects loan quality trends, including the levels of, and trends related to, past due loans and economic conditions at the local and national levels. It also considers the quality and risk characteristics of the Company’s loan origination and servicing policies and practices. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans charged-off | (1 | ) | (28 | ) | (206 | ) | (188 | ) | (192 | ) | (21 | ) | — | (636 | ) | Individual reserves are calculated according to ASC Section 310-10-35 against loans evaluated individually and deemed to most likely be impaired. Impaired loans include all loans in non-accrual status, all troubled debt restructures, all substandard loans that are deemed to be collateral dependent, and other loans that management determines require reserves. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | 13 | 22 | 24 | 352 | (14 | ) | 8 | — | 405 | In determining the loss history to be applied to its ASC 450 loan pools within the allowance for loan losses, the Company has previously used net charge-off history for most recent eight consecutive quarters. In determining the appropriate level of the allowance for loan losses at December 31, 2012, the loss history was expanded to ten consecutive quarters of net charge-offs. Since the most recent quarters contain a declining amount of charge offs coupled with a large number of recoveries and thus have a lower loss history than quarters from 2010 and 2011, management determined that the expansion of loss history better reflects the inherent losses in the current loan portfolio. The impact of this adjustment to the allowance for loan losses resulted in a $564,000 increase to our loan loss reserves as compared to the methodology previously used. Loan loss provisions in 2012 have also been affected by the decline in overall loan balances during the year. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, end of period 9/30/2013 | $ | 204 | $ | 546 | $ | 4,621 | $ | 781 | $ | 557 | $ | 63 | $ | 86 | $ | 6,858 | Loans are deemed uncollectible at the discretion of the Chief Credit Officer, based on a variety of credit, collateral, documentation and other issues. In the case of uncollectible receivables, the collateral is considered unsecured and therefore fully charged off. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 7 | $ | 43 | $ | 361 | $ | 75 | $ | 117 | $ | 2 | $ | — | $ | 605 | The following tables present a roll forward of the Company’s allowance for loan losses by loan segment for the twelve month periods ended December 31, 2012 and 2011, respectively (in thousands): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 197 | $ | 503 | $ | 4,260 | $ | 706 | $ | 440 | $ | 61 | $ | 86 | $ | 6,253 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 29,233 | $ | 51,950 | $ | 174,746 | $ | 34,157 | $ | 32,206 | $ | 8,194 | $ | 19,145 | $ | 349,631 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 642 | $ | 2,349 | $ | 9,233 | $ | 4,110 | $ | 930 | $ | 11 | $ | 2,395 | $ | 19,668 | 2012 | Commercial and industrial | Construction | Commercial real estate | 1 to 4 family residential | HELOC | Loans to individuals & overdrafts | Multi- family residential | Total | |||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 28,591 | $ | 49,603 | $ | 165,513 | $ | 30,047 | $ | 31,276 | $ | 8,183 | $ | 16,750 | $ | 329,963 | Allowance for loan losses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period 01/01/2012 | $ | 719 | $ | 1,540 | $ | 4,771 | $ | 1,661 | $ | 1,122 | $ | 94 | $ | 127 | $ | 10,034 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for loan losses | (2,962 | ) | (339 | ) | 1,468 | (591 | ) | (110 | ) | (42 | ) | (21 | ) | (2,597 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine months ended | Loans charged-off | (193 | ) | (720 | ) | (1,580 | ) | (232 | ) | (459 | ) | (70 | ) | — | (3,254 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30-Sep-13 | Recoveries | 2,714 | 317 | 287 | 232 | 74 | 90 | — | 3,714 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | Commercial and industrial | Construction | Commercial real estate | 1-to-4 | HELOC | Loans to | Multi- | Total | Balance, end of period 12/31/2012 | $ | 278 | $ | 798 | $ | 4,946 | $ | 1,070 | 627 | $ | 72 | $ | 106 | $ | 7,897 | ||||||||||||||||||||||||||||||||||||||||||||||||||
family | individuals & | family | Ending Balance: individually evaluated for impairment | $ | 51 | $ | 64 | $ | 581 | $ | 157 | $ | 43 | $ | 4 | $ | 9 | $ | 909 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
residential | overdrafts | residential | Ending Balance: collectively evaluated for impairment | $ | 227 | $ | 734 | $ | 4,365 | $ | 913 | $ | 584 | $ | 68 | $ | 97 | $ | 6,988 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | Loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 278 | $ | 798 | $ | 4,946 | $ | 1,070 | $ | 627 | $ | 72 | $ | 106 | $ | 7,897 | Ending Balance | $ | 29,297 | $ | 48,220 | $ | 186,949 | $ | 41,017 | $ | 34,603 | $ | 8,734 | $ | 19,524 | $ | 368,344 | |||||||||||||||||||||||||||||||||||||||||
1/1/13 | Ending Balance: individually evaluated for impairment | $ | 611 | $ | 2,642 | $ | 10,492 | $ | 3,651 | $ | 819 | $ | 24 | $ | 1,482 | $ | 19,721 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision (recovery) for loan losses | 16 | (246 | ) | (36 | ) | (353 | ) | 99 | (65 | ) | (20 | ) | (605 | ) | Ending Balance: collectively evaluated for impairment | $ | 28,686 | $ | 45,578 | $ | 176,457 | $ | 37,366 | $ | 33,784 | $ | 8,710 | $ | 18,042 | $ | 348,623 | |||||||||||||||||||||||||||||||||||||||||||
Loans charged-off | (130 | ) | (28 | ) | (385 | ) | (309 | ) | (231 | ) | (65 | ) | — | (1,148 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | 40 | 22 | 96 | 373 | 62 | 121 | — | 714 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, end of period 9/30/2013 | $ | 204 | $ | 546 | $ | 4,621 | $ | 781 | $ | 557 | $ | 63 | $ | 86 | $ | 6,858 | 2011 | Commercial and industrial | Construction | Commercial real estate | 1 to 4 family residential | HELOC | Loans to individuals & overdrafts | Multi- family residential | Total | |||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 7 | $ | 43 | $ | 361 | $ | 75 | $ | 117 | $ | 2 | $ | — | $ | 605 | Allowance for loan losses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 197 | $ | 503 | $ | 4,260 | $ | 706 | $ | 440 | $ | 61 | $ | 86 | $ | 6,253 | Balance, beginning of period 01/01/2011 | $ | 1,052 | $ | 349 | $ | 3,111 | $ | 1,900 | $ | 1,433 | $ | 1,530 | $ | 640 | $ | 10,015 | |||||||||||||||||||||||||||||||||||||||||
Provision for loan losses | 18 | 2,172 | 4,570 | 1,026 | 298 | (1,353 | ) | (513 | ) | 6,218 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans charged-off | (4,116 | ) | (993 | ) | (2,970 | ) | (1,512 | ) | (661 | ) | (170 | ) | — | (10,422 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended | Recoveries | 3,765 | 12 | 60 | 247 | 52 | 87 | — | 4,223 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30-Sep-12 | Balance, end of period 12/31/2011 | $ | 719 | $ | 1,540 | $ | 4,771 | $ | 1,661 | $ | 1,122 | $ | 94 | $ | 127 | $ | 10,034 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | Commercial and industrial | Construction | Commercial real estate | 1-to-4 | HELOC | Loans to | Multi- | Total | Ending Balance: individually evaluated for impairment | $ | — | $ | 674 | $ | 498 | $ | 170 | $ | 158 | $ | 15 | $ | — | $ | 1,515 | |||||||||||||||||||||||||||||||||||||||||||||||||
family | individuals & | family | Ending Balance: collectively evaluated for impairment | $ | 719 | $ | 866 | $ | 4,273 | $ | 1,491 | $ | 964 | $ | 79 | $ | 127 | $ | 8,519 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
residential | overdrafts | residential | Loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | Ending Balance | $ | 33,146 | $ | 70,846 | $ | 192,047 | $ | 52,182 | $ | 38,702 | $ | 7,671 | $ | 23,377 | $ | 417,971 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 386 | $ | 482 | $ | 5,228 | $ | 1,314 | $ | 897 | $ | 80 | $ | 123 | $ | 8,510 | Ending Balance: | $ | 478 | $ | 4,376 | $ | 14,234 | $ | 2,836 | $ | 1,138 | $ | 233 | $ | 1,540 | $ | 24,835 | |||||||||||||||||||||||||||||||||||||||||
6/30/12 | individually evaluated for impairment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision (recovery) for loan losses | 31 | 664 | (192 | ) | (166 | ) | (150 | ) | (6 | ) | 8 | 189 | Ending Balance: | $ | 32,668 | $ | 66,470 | $ | 177,813 | $ | 49,346 | $ | 37,564 | $ | 7,438 | $ | 21,837 | $ | 393,136 | |||||||||||||||||||||||||||||||||||||||||||||
Loans charged-off | (7 | ) | (187 | ) | (50 | ) | (63 | ) | (83 | ) | (8 | ) | — | (398 | ) | collectively evaluated for impairment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | 13 | 3 | 120 | 91 | 51 | 9 | — | 287 | The negative provision for the commercial and industrial category in 2012 was due primarily to a $2.6 million recovery on the previously reported loan fraud by a large relationship borrower. Negative provisions in the construction, and 1 to 4 family and HELOC categories were the result of declines in outstanding loan balances from 2011 to 2012. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, end of period 9/30/2012 | $ | 423 | $ | 962 | $ | 5,106 | $ | 1,176 | $ | 715 | $ | 75 | $ | 131 | $ | 8,588 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 124 | $ | 60 | $ | 532 | $ | 328 | $ | 16 | $ | 5 | $ | 9 | $ | 1,074 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 299 | $ | 902 | $ | 4,574 | $ | 848 | $ | 699 | $ | 70 | $ | 122 | $ | 7,514 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 33,175 | $ | 51,443 | $ | 189,598 | $ | 47,076 | $ | 34,988 | $ | 8,946 | $ | 21,296 | $ | 386,522 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 703 | $ | 3,061 | $ | 13,273 | $ | 3,744 | $ | 774 | $ | 124 | $ | 1,515 | $ | 23,194 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 32,472 | $ | 48,382 | $ | 176,325 | $ | 43,332 | $ | 34,214 | $ | 8,822 | $ | 19,781 | $ | 363,328 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine months ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30-Sep-12 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | Commercial and industrial | Construction | Commercial real estate | 1-to-4 | HELOC | Loans to | Multi- | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
family | individuals & | family | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
residential | overdrafts | residential | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 719 | $ | 1,540 | $ | 4,771 | $ | 1,661 | $ | 1,122 | $ | 94 | $ | 127 | $ | 10,034 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1/1/12 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision (recovery) for loan losses | (2,925 | ) | (247 | ) | 1,165 | (535 | ) | (16 | ) | (43 | ) | 4 | (2,597 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans charged-off | (58 | ) | (645 | ) | (1,031 | ) | (162 | ) | (459 | ) | (62 | ) | — | (2,417 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | 2,687 | 314 | 201 | 212 | 68 | 86 | — | 3,568 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, end of period 9/30/2012 | $ | 423 | $ | 962 | $ | 5,106 | $ | 1,176 | $ | 715 | $ | 75 | $ | 131 | $ | 8,588 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 124 | $ | 60 | $ | 532 | $ | 328 | $ | 16 | $ | 5 | $ | 9 | $ | 1,074 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 299 | $ | 902 | $ | 4,574 | $ | 848 | $ | 699 | $ | 70 | $ | 122 | $ | 7,514 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 33,175 | $ | 51,443 | $ | 189,598 | $ | 47,076 | $ | 34,988 | $ | 8,946 | $ | 21,296 | $ | 386,522 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 703 | $ | 3,061 | $ | 13,273 | $ | 3,744 | $ | 774 | $ | 124 | $ | 1,515 | $ | 23,194 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 32,472 | $ | 48,382 | $ | 176,325 | $ | 43,332 | $ | 34,214 | $ | 8,822 | $ | 19,781 | $ | 363,328 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
During the nine months ended September 30, 2012 the Company recorded recoveries on loans previously charged-off in the amount of $3.6 million. These recoveries were primarily a result of a $2.4 million recovery on commercial and industrial loans. These recoveries combined with the decrease in total loans outstanding at September 30, 2012 resulted in a $2.6 million recovery in the provision for loan losses. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PREMISES_AND_EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended | |||||||
Dec. 31, 2012 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | |||||||
NOTE E — PREMISES AND EQUIPMENT | ||||||||
The following is a summary of premises and equipment at December 31, 2012 and 2011: | ||||||||
2012 | 2011 | |||||||
(dollars in thousands) | ||||||||
Land | $ | 3,105 | $ | 3,105 | ||||
Buildings | 9,068 | 9,104 | ||||||
Furniture and equipment | 3,592 | 3,424 | ||||||
Leasehold improvements | 29 | 29 | ||||||
Construction in progress | — | 19 | ||||||
15,794 | 15,681 | |||||||
Less accumulated depreciation | 4,855 | 4,438 | ||||||
Total | $ | 10,939 | $ | 11,243 | ||||
Depreciation amounting to approximately $581,000, $659,000, and $751,000 for the years ended December 31, 2012, 2011 and 2010, respectively, is included in occupancy and equipment expense, data processing and other outsourced services expense and other expenses. | ||||||||
As of December 31, 2011, the Company had a total of $1.1 million in premises and equipment which were classified as held for sale. There was no premises and equipment classified as held for sale as of December 31, 2012. | ||||||||
The Company has operating leases for its corporate offices and branches that expire at various times through 2027. Future minimum lease payments under the leases for years subsequent to December 31, 2012 are as follows (dollars in thousands): | ||||||||
2013 | $ | 122 | ||||||
2014 | 112 | |||||||
2015 | 109 | |||||||
2016 | 109 | |||||||
2017 | 109 | |||||||
Years thereafter | 1,090 | |||||||
$ | 1,651 | |||||||
During 2012, 2011, and 2010, payments under operating leases were approximately $131,000, $140,000, and $213,000, respectively. Lease expense was accounted for on a straight line basis. | ||||||||
DEPOSITS
DEPOSITS | 12 Months Ended | ||||
Dec. 31, 2012 | |||||
Deposits [Abstract] | ' | ||||
Deposit Liabilities Disclosures [Text Block] | ' | ||||
NOTE F — DEPOSITS | |||||
At December 31, 2012 the Company had $498.6 million in total deposits which was comprised of $92.3 million in non-interest bearing deposits and $406.3 million in interest bearing deposits. Of the $406.3 million in interest bearing deposits, $22.2 million were in savings accounts, $122.7 million were in money market and NOW accounts, and $261.4 million were in time deposits. | |||||
The scheduled maturities of time deposits at December 31, 2012 are as follows: | |||||
Total Time Deposits | |||||
(dollars in thousands) | |||||
Three months or less | $ | 27384 | |||
Over three months through twelve months | 54,301 | ||||
Over one year through two years | 36,782 | ||||
Over two years through three years | 47,273 | ||||
Over three years through four years | 48,433 | ||||
Over four years through five years | 46,596 | ||||
Over five years | 659 | ||||
$ | 261,428 | ||||
Time deposits with balances of $100,000 or more at December 31, 2012 were $134.6 million. | |||||
SHORT_TERM_AND_LONG_TERM_DEBT
SHORT TERM AND LONG TERM DEBT | 12 Months Ended | ||||||||
Dec. 31, 2012 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Short Term And Long Term Debt Disclosure [Text Block] | ' | ||||||||
NOTE G — SHORT TERM AND LONG TERM DEBT | |||||||||
At December 31, 2012, the Company had $17.8 million in short term debt and $12.4 million in long term debt. Short term debt consisted of $15.8 million in securities sold under agreements to repurchase and FHLB advances with less than one year to maturity of $2.0 million. Long term debt consisted solely of $12.4 million in junior subordinated debentures. | |||||||||
At December 31, 2011, short term debt totaled $21.9 million and long term debt totaled $14.4 million. Short term debt consisted of $19.9 million in securities sold under agreements to repurchase and FHLB advances of $2.0 million with less than one year to maturity. Long term debt consisted of $12.4 million in junior subordinated debentures and FHLB advances of $2.0 million with more than one year to maturity. | |||||||||
Securities sold under agreements to repurchase generally mature within one to four days from the transaction date and are classified as short term debt. Securities sold under agreements to repurchase are reflected at the amount of cash received in connection with the transaction. These repurchase agreements are collateralized by U. S. Government agency obligations and all are floating rate. The following table presents certain information for securities sold under agreements to repurchase: | |||||||||
2012 | 2011 | ||||||||
(Dollars in thousands) | |||||||||
Balance at December 31 | $ | 15,848 | $ | 19,877 | |||||
Weighted average interest rate at December 31 | 0.27 | % | 0.39 | % | |||||
Maximum amount outstanding at any month-end during the year | $ | 24,923 | $ | 22,843 | |||||
Average daily balance outstanding during the year | $ | 21,636 | $ | 20,192 | |||||
Average annual interest rate paid during the year | 0.33 | % | 0.76 | % | |||||
At December 31, 2012 and 2011, the Company had $2.0 million and $4.0 million in advances from the Federal Home Loan Bank of Atlanta or borrowings from the Federal Reserve Bank discount window. The $2.0 million in FHLB advances at December 31, 2012 were classified as short term borrowings. | |||||||||
On September 20, 2004, $12.4 million of junior subordinated debentures were issued to New Century Statutory Trust I (“the Trust”) in exchange for the proceeds of trust preferred securities issued by the Trust. All of the Trust’s common equity is owned by the Company. The junior subordinated debentures are included in long term debt and the Company’s equity interest in the Trust is included in other assets. | |||||||||
The Company pays interest on the junior subordinated debentures at an annual rate, reset quarterly, equal to 3 month LIBOR plus 2.15%. The debentures are redeemable on September 20, 2009 or afterwards in whole or in part, on any March 20, June 20, September 20 or December 20. Redemption is mandatory at September 20, 2034. The Company has fully and unconditionally guaranteed repayment of the trust-preferred securities. The Company’s obligation under the guarantee is unsecured and subordinate to senior and subordinated indebtedness of the Company. | |||||||||
The trust preferred securities qualify as Tier 1 capital for regulatory capital purposes subject to certain limitations, none of which were applicable at December 31, 2012. | |||||||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||
Dec. 31, 2012 | |||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||
Income Tax Disclosure [Text Block] | ' | ||||||||||
NOTE H — INCOME TAXES | |||||||||||
The significant components of the provision for income taxes for the years ended December 31, 2012, 2011 and 2010 are as follows: | |||||||||||
2012 | 2011 | 2010 | |||||||||
(dollars in thousands) | |||||||||||
Current tax provision: | |||||||||||
Federal | $ | 38 | $ | -19 | $ | -879 | |||||
State | — | — | — | ||||||||
Total current tax provision (benefit) | 38 | -19 | -879 | ||||||||
Deferred tax provision: | |||||||||||
Federal | 2,217 | -355 | -1,876 | ||||||||
State | 567 | -11 | -529 | ||||||||
Total deferred tax provision (benefit) | 2,784 | -366 | -2,405 | ||||||||
Net income tax provision (benefit) | $ | 2,822 | $ | -385 | $ | -3,284 | |||||
The difference between the provision for income taxes and the amounts computed by applying the statutory federal income tax rate of 34% to income before income taxes is summarized below: | |||||||||||
2012 | 2011 | 2010 | |||||||||
(dollars in thousands) | |||||||||||
Income tax at federal statutory rate | $ | 2,536 | $ | -186 | $ | -2,801 | |||||
Increase (decrease) resulting from: | |||||||||||
State income taxes, net of federal tax effect | 374 | -7 | -349 | ||||||||
Tax-exempt interest income | -68 | -72 | -89 | ||||||||
Income from life insurance | -84 | -87 | -89 | ||||||||
Incentive stock option expense | 13 | 26 | 50 | ||||||||
Other permanent differences | 51 | -59 | -6 | ||||||||
Provision for income taxes | $ | 2,822 | $ | -385 | $ | -3,284 | |||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of deferred taxes at December 31, 2012 and 2011 are as follows: | |||||||||||
2012 | 2011 | ||||||||||
(dollars in thousands) | |||||||||||
Deferred tax assets relating to: | |||||||||||
Allowance for loan losses | $ | 3,044 | $ | 3,869 | |||||||
Deferred compensation | 401 | 404 | |||||||||
Supplemental executive retirement plan | 61 | 61 | |||||||||
Net operating loss/net economic loss | 295 | 2,140 | |||||||||
Write-downs on foreclosed real estate | 107 | 354 | |||||||||
AMT tax credit | 58 | 58 | |||||||||
Other | 71 | 142 | |||||||||
Total deferred tax assets | 4,037 | 7,028 | |||||||||
Deferred tax liabilities relating to: | |||||||||||
Premises and equipment | -730 | -750 | |||||||||
Deferred loan fees/costs | -22 | -18 | |||||||||
Unrealized gain on available-for-sale securities | -699 | -806 | |||||||||
Core deposit intangible | -115 | -210 | |||||||||
Other | — | -95 | |||||||||
Total deferred tax liabilities | -1,566 | -1,879 | |||||||||
Net recorded deferred tax asset, included in other assets | $ | 2,471 | $ | 5,149 | |||||||
The Company’s policy is to report interest and penalties, if any, related to uncertain tax positions in income tax expense in the Consolidated Statements of Operations. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2009. As of December 31, 2012 and 2011 the Company has no uncertain tax provisions. | |||||||||||
Deferred Tax Asset | |||||||||||
The Company’s net deferred tax asset was $2.5 million at December 31, 2012 and $5.1 million at December 31, 2011, respectively. In evaluating whether we will realize the full benefit of our net deferred tax asset, we consider both positive and negative evidence, including among other things recent earnings trends, projected earnings, and asset quality. As of December 31, 2012, management concluded that the Company’s net deferred tax assets were fully realizable. The Company will continue to monitor deferred tax assets closely to evaluate whether we will be able to realize the full benefit of our net deferred tax asset or whether there is any need for a valuation allowance. Significant negative trends in credit quality, losses from operations or other factors could impact the realization of the deferred tax asset in the future. | |||||||||||
The Company has no history of expiration of loss carry forwards. Management believes the Company’s forecasted earnings support a conclusion that a valuation allowance is not needed. Management closely monitors the previous twelve quarters of income (loss) before income taxes in evaluating the need for a deferred tax asset valuation allowance. This is referred to as the cumulative loss test. | |||||||||||
As of December 31, 2012, the Company passed the cumulative loss test by $6.4 million excluding the one-time non-recurring charge-off pertaining to the previously reported loan fraud by a large relationship borrower and a large recovery on the same loan fraud. The Company feels confident that deferred tax assets are more likely than not to be realized. | |||||||||||
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||||||||
Accumulated Other Comprehensive Income (Loss) [Text Block] | ' | |||||||||||||
NOTE H — ACCUMULATED OTHER COMPREHENSIVE INCOME | ||||||||||||||
The following table presents changes in accumulated other comprehensive income for the three and nine months ended September 30, 2013 and 2012. | ||||||||||||||
Three Months Ended September | Nine Months Ended | |||||||||||||
30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(In thousands) | ||||||||||||||
Beginning balance | $ | 191 | $ | 1,235 | $ | 1,078 | $ | 1,285 | ||||||
Unrealized gain (loss) on investment securities available for | -102 | 167 | -1,446 | 215 | ||||||||||
sale | ||||||||||||||
Tax benefit | 34 | -59 | 491 | -82 | ||||||||||
Other comprehensive loss before reclassification | -68 | 108 | -955 | 133 | ||||||||||
Amounts reclassified from accumulated comprehensive | ||||||||||||||
income: | ||||||||||||||
Realized loss on investment securities included in net | — | -51 | — | -174 | ||||||||||
income | ||||||||||||||
Tax effect | — | 20 | — | 68 | ||||||||||
Total reclassifications net of tax | — | -31 | — | -106 | ||||||||||
Net current period other comprehensive income (loss) | -68 | 77 | -955 | 27 | ||||||||||
Ending balance | $ | 123 | $ | 1,312 | $ | 123 | $ | 1,312 | ||||||
The income statement line items impacted by the reclassifications of realized gains (losses) on investment securities is the other non-interest expense and income tax expense line items in the consolidated statement of operations. | ||||||||||||||
REGULATORY_MATTERS
REGULATORY MATTERS | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2012 | ||||||||||||||||||||||
Regulatory Capital Requirements [Abstract] | ' | |||||||||||||||||||||
Regulatory Capital Requirements under Banking Regulations [Text Block] | ' | |||||||||||||||||||||
NOTE I — REGULATORY MATTERS | ||||||||||||||||||||||
The Company is subject to various regulatory capital requirements administered by federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios, as set forth in the table below. Management believes, as of December 31, 2012, that the Company meets all capital adequacy requirements to which it is subject. The Company’s significant assets are its investments in New Century Bank and New Century Statutory Trust I. | ||||||||||||||||||||||
Regulatory authorities may limit payment of dividends by any bank when it is determined that such a limitation is in the public interest and is necessary to ensure financial soundness of the bank. The North Carolina Commissioner of Banks and the FDIC are also authorized to prohibit the payment of dividends under certain other circumstances. | ||||||||||||||||||||||
A significant measure of the strength of a financial institution is its capital base. Federal regulations have classified and defined capital into the following components: (1) Tier 1 capital, which includes common shareholders’ equity and qualifying preferred equity, and (2) Tier 2 capital, which includes a portion of the allowance for loan losses, certain qualifying long-term debt and preferred stock which does not qualify as Tier 1 capital. Minimum capital levels are regulated by risk-based capital adequacy guidelines, which require a financial institution to maintain capital as a percentage of its assets, and certain off-balance sheet items adjusted for predefined credit risk factors (risk-adjusted assets). The Company’s equity to assets ratio was 9.25% at December 31, 2012. | ||||||||||||||||||||||
Effective June 10, 2011, the Board of Directors of New Century Bank entered into a Memorandum of Understanding (“MOU”) with the Federal Deposit Insurance Corporation (“FDIC”) and the North Carolina Commissioner of Banks. The MOU represented an informal agreement between the Board of Directors of New Century Bank, the Regional Director of the FDIC’s Atlanta Regional Office and the North Carolina Commissioner of Banks and required that New Century Bank’s management take certain actions to improve the bank’s lending function. The Memorandum also required the Bank to maintain minimum Tier 1 Leverage and Total Risk-Based Capital Ratios of 8.0% and 11.5%, respectively, during the life of the Memorandum. The Memorandum also restricted the ability of the Bank to grow its total assets at a rate in excess of 10% per year or to declare cash dividends without the prior approval of the Commissioner and the FDIC. | ||||||||||||||||||||||
On January 29, 2013, the MOU was resolved and terminated upon agreement of all parties. | ||||||||||||||||||||||
As the following tables indicate, at December 31, 2012, the Company and related Bank subsidiary both exceeded minimum regulatory capital requirements as specified in the tables below. | ||||||||||||||||||||||
Actual | Minimum for capital | |||||||||||||||||||||
adequacy purposes | ||||||||||||||||||||||
The Company: | Amount | Ratio | Amount | Ratio | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
December 31, 2012: | ||||||||||||||||||||||
Total Capital | $ | 67,443 | 16.6 | % | $ | 32,175 | 8 | % | ||||||||||||||
(to Risk-Weighted Assets) | ||||||||||||||||||||||
Tier 1 Capital | 62,229 | 15.34 | % | 16,359 | 4 | % | ||||||||||||||||
(to Risk-Weighted Assets) | ||||||||||||||||||||||
Tier 1 Capital | 62,229 | 10.78 | % | 23,013 | 4 | % | ||||||||||||||||
(to Average Assets) | ||||||||||||||||||||||
Actual | Minimum for capital | |||||||||||||||||||||
adequacy purposes | ||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | |||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
December 31, 2011: | ||||||||||||||||||||||
Total Capital | $ | 60,600 | 13.49 | % | $ | 35,947 | 8 | % | ||||||||||||||
(to Risk-Weighted Assets) | ||||||||||||||||||||||
Tier 1 Capital | 54,929 | 12.22 | % | 17,973 | 4 | % | ||||||||||||||||
(to Risk-Weighted Assets) | ||||||||||||||||||||||
Tier 1 Capital | 54,929 | 9.14 | % | 24,033 | 4 | % | ||||||||||||||||
(to Average Assets) | ||||||||||||||||||||||
There are no well capitalized minimum requirements on holding companies like the Company. | ||||||||||||||||||||||
New Century Bank’s actual capital amounts and ratios are presented in the table below as of December 31, 2012 and 2011: | ||||||||||||||||||||||
Actual | Minimum for capital | Minimum to be well | ||||||||||||||||||||
adequacy purposes | capitalized under prompt corrective action provisions | |||||||||||||||||||||
The Bank: | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
December 31, 2012: | ||||||||||||||||||||||
Total Capital | $ | 65,917 | 16.24 | % | $ | 32,584 | 8 | % | $ | 46,840 | 11.5 | % | ||||||||||
(to Risk-Weighted Assets) | ||||||||||||||||||||||
Tier 1 Capital | 60,791 | 14.98 | % | 16,294 | 4 | % | 32,588 | 8 | % | |||||||||||||
(to Risk-Weighted Assets) | ||||||||||||||||||||||
Tier 1 Capital | 60,791 | 10.52 | % | 22,995 | 4 | % | 57,489 | 8 | % | |||||||||||||
(to Average Assets) | ||||||||||||||||||||||
Actual | Minimum for capital | Minimum to be well | ||||||||||||||||||||
adequacy purposes | capitalized under prompt corrective action provisions | |||||||||||||||||||||
The Bank: | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
December 31, 2011: | ||||||||||||||||||||||
Total Capital | $ | 58,931 | 13.14 | % | $ | 35,868 | 8 | % | $ | 51,560 | 11.5 | % | ||||||||||
(to Risk-Weighted Assets) | ||||||||||||||||||||||
Tier 1 Capital | 53,272 | 11.88 | % | 17,934 | 4 | % | 35,868 | 8 | % | |||||||||||||
(to Risk-Weighted Assets) | ||||||||||||||||||||||
Tier 1 Capital | 53,272 | 8.87 | % | 24,033 | 4 | % | 48,066 | 8 | % | |||||||||||||
(to Average Assets) | ||||||||||||||||||||||
The minimum requirements to be well capitalized at December 31, 2012 and 2011 are the regulatory minimum requirements outlined in the previously mentioned MOU. | ||||||||||||||||||||||
During 2004, the Company issued $12.4 million of junior subordinated debentures to a newly formed subsidiary, New Century Statutory Trust I, which in turn issued $12.0 million of trust preferred securities. The proceeds from the sale of the trust preferred securities provided additional capital for the growth and expansion of the Bank. Under the current applicable regulatory guidelines, all of the proceeds from the issuance of these trust preferred securities qualify as Tier 1 capital as of December 31, 2012. | ||||||||||||||||||||||
Management expects that the Bank will remain “well-capitalized” for regulatory purposes, although there can be no assurance that additional capital will not be required in the near future. | ||||||||||||||||||||||
EMPLOYEE_AND_DIRECTOR_BENEFIT_
EMPLOYEE AND DIRECTOR BENEFIT PLANS | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2012 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||||||||||
NOTE L — EMPLOYEE AND DIRECTOR BENEFIT PLANS | |||||||||||||||||||||
401(k) Plan | |||||||||||||||||||||
The Company has a 401(k) Plan and substantially all employees participate in the Plan. The Company matches 100% of the first 6% of an employee’s compensation contributed to the plan. Expenses attributable to the Plan amounted to $251,000, $311,000, and $319,000 for the years ended December 31, 2012, 2011 and 2010, respectively. | |||||||||||||||||||||
Employment Agreements | |||||||||||||||||||||
The Company has entered into employment agreements with three executive officers to promote a stable and competent management base. These agreements provide for benefits as specified in the contracts and cannot be terminated by the Board of Directors, except for cause, without prejudicing the officers’ right to receive certain vested rights, including compensation. In the event of a change in control of the Company, as outlined in the agreements, the acquirer will generally be bound by the terms of those contracts. | |||||||||||||||||||||
Supplemental Executive Retirement Plans | |||||||||||||||||||||
The Company implemented a nonqualified supplemental executive retirement plan for the former Chief Executive Officer during 2003. Benefits accrued and vested during the period of employment, and will be paid in monthly benefit payments over the officer’s life after retirement. Provisions of $18,000, $71,000, and $26,000 were expensed for future benefits to be provided under this plan during 2012, 2011 and 2010, respectively. In conjunction with the implementation of this plan, the Company has purchased life insurance on certain key officers to help offset plan accruals. The life insurance policies provide the payment of a death benefit in the event an insured officer dies prior to attainment of retirement age. The total liability under this plan at December 31, 2012 and 2011 was $359,000 and $429,000, respectively. | |||||||||||||||||||||
As part of the acquisition of Progressive State Bank (“Progressive”), the Company assumed a liability for the supplemental early retirement plan for Progressive’s Chief Executive Officer. Provisions of $20,000, $57,000, and $21,000 and were expensed in 2012, 2011 and 2010, resulting in a total liability of $394,000 and $409,000 as of December 31, 2012 and 2011, respectively. Corresponding to this liability, Progressive had purchased a life insurance policy on a key officer to help offset the expense associated with future benefit payments. This policy was acquired by the Company upon its acquisition of Progressive. | |||||||||||||||||||||
Directors Deferred Compensation | |||||||||||||||||||||
The Company has instituted a Directors’ Deferral Plan whereby individual directors may elect annually to defer receipt of all or a designated portion of their directors’ fees for the coming year. Amounts so deferred are used to purchase shares of the Company’s common stock on the open market by the administrator of the Deferral Plan or to issue shares from the Company’s authorized but unissued shares, with such deferred compensation disbursed in the future as specified by the director at the time of his or her deferral election. All deferral amounts and matching contributions, if any, are paid into a rabbi trust with a separate account for each participant under the plan. Compensation and other expenses attributable to this plan for the years ended December 31, 2012, 2011 and 2010 were $220,000, $207,000, and $245,000, respectively. The Directors’ Deferral Plan was amended and restated on November 16, 2011 to ensure compliance with applicable regulations and to provide that the eventual payment of compensation deferred under the plan may be made only in the form of the Registrant’s common stock. | |||||||||||||||||||||
Stock Option Plans | |||||||||||||||||||||
The Company has shareholder approved stock option plans under which options are granted to directors and employees of the Company and its subsidiary. | |||||||||||||||||||||
• | Options granted under the 2004 Incentive Stock Option Plan vested over a five-year period with none vested at the time of grant. In 2012, 2011 and 2010, 5,750, 6,000 and 10,000 incentive stock options were granted under the 2004 Incentive Stock Option Plan, respectively. | ||||||||||||||||||||
• | On May 11, 2010, the shareholders of the Company approved the implementation of the New Century Bancorp, Inc. 2010 Omnibus Stock Ownership and Long Term Incentive Plan (the “Omnibus Plan”). The Omnibus Plan provides for the grant of incentive stock options, non-qualified stock options, restricted stock, long-term incentive compensation units and stock appreciation rights. Incentive stock options under the Omnibus Plan vest over a five-year period with none vested at the time of grant. Officers and other full-time employees of the Company and the Bank, including executive officers and directors, are eligible to receive awards under the Omnibus Plan. However, no projections have been made as to specific award terms or recipients. There were no incentive stock options granted under this plan in 2012. In 2011, 37,500 incentive stock options were granted under the 2010 Omnibus Plan. There were no incentive stock options granted under this plan in 2010. | ||||||||||||||||||||
The estimated weighted average fair market value of each option awarded, using the Black-Scholes option pricing model, together with the assumptions used in estimating those weighted average fair values, are displayed below: | |||||||||||||||||||||
2012 | 2011 | 2010 | |||||||||||||||||||
Estimated fair value of options granted | $ | 2.61 | $ | 2.43 | $ | 3.07 | |||||||||||||||
Assumptions in estimating average option values: | |||||||||||||||||||||
Risk-free interest rate | 1.49 | % | 2.55 | % | 3.49 | % | |||||||||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||||||
Volatility | 49.85 | % | 47.06 | % | 50.29 | % | |||||||||||||||
Expected life (in years) | 8 | 7.25 | 8 | ||||||||||||||||||
A summary of the Company’s option plans as of and for the year ended December 31, 2012 is as follows: | |||||||||||||||||||||
Outstanding Options | Exercisable Options | ||||||||||||||||||||
Shares Available for Future Grants | Number Outstanding | Weighted Average Exercise Price | Number Outstanding | Weighted Average Exercise | |||||||||||||||||
Price | |||||||||||||||||||||
At December 31, 2011 | 285,942 | 422,739 | $ | 8.58 | 359,123 | $ | 9.04 | ||||||||||||||
Options authorized | — | — | — | — | — | ||||||||||||||||
Options granted/vested | (5,750 | ) | 5,750 | 4.77 | 18,204 | 7.28 | |||||||||||||||
Options exercised | — | — | — | — | — | ||||||||||||||||
Options forfeited | 64,147 | (64,147 | ) | 8.48 | (49,566 | ) | $ | (10.54 | ) | ||||||||||||
At December 31, 2012 | 344,339 | 364,342 | $ | 8.53 | 327,761 | $ | 8.9 | ||||||||||||||
The aggregate intrinsic value of options outstanding and options exercisable as of December 31, 2012 was $21,000 and $5,000, respectively. Outstanding and exercisable options had no intrinsic value as of December 31, 2011 or 2010. The unrecognized compensation expense for outstanding options at December 31, 2012, 2011, and 2010 was $69,000, $147,000, and $237,000, respectively. As of December 31, 2012, this cost is expected to be recognized over a weighted average period of 1.48 years. | |||||||||||||||||||||
The weighted average remaining life of options outstanding and options exercisable as of December 31, 2012 was 2.94 years and 2.38 years, respectively. The weighted average remaining life of options outstanding and options exercisable as of December 31, 2011 was 4.03 years and 3.28 years, respectively. Information regarding the stock options outstanding at December 31, 2012 is summarized below: | |||||||||||||||||||||
Range of Exercise Prices | Number of options outstanding | Number of options exercisable | |||||||||||||||||||
$2.25 – $7.07 | 272,562 | 236,881 | |||||||||||||||||||
$7.08 – $10.69 | 22,330 | 21,430 | |||||||||||||||||||
$10.70 – $16.22 | 69,450 | 69,450 | |||||||||||||||||||
Outstanding at end of year | 364,342 | 327,761 | |||||||||||||||||||
A summary of the status of the Company’s non-vested options as of December 31, 2012 and changes during the year ended December 31, 2012, is presented below: | |||||||||||||||||||||
Non-vested Options | Options | Weighted- | |||||||||||||||||||
Average | |||||||||||||||||||||
Grant Date Fair Value | |||||||||||||||||||||
Non-vested at December 31, 2011 | 63,616 | $ | 2.87 | ||||||||||||||||||
Granted | 5,750 | 2.61 | |||||||||||||||||||
Vested | 31,362 | 2.3 | |||||||||||||||||||
Forfeited | (64,147 | ) | 2.91 | ||||||||||||||||||
Non-vested at December 31, 2012 | 36,581 | 2.64 | |||||||||||||||||||
For the years ended December 31, 2012, 2011 and 2010, the intrinsic value of options exercised was $0, $0, and $96,000, respectively, and the grant-date fair value of options vested was $38,000, $75,000, $148,000, respectively. No cash was received from stock option exercises for the years ended December 31, 2012 or 2011. | |||||||||||||||||||||
PARENT_COMPANY_FINANCIAL_DATA
PARENT COMPANY FINANCIAL DATA | 12 Months Ended | ||||||||||||
Dec. 31, 2012 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | ||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | ' | ||||||||||||
NOTE M — PARENT COMPANY FINANCIAL DATA | |||||||||||||
Following are the condensed balance sheets of New Century Bancorp as of and for the years ended December 31, 2012 and 2011 and the related condensed statements of operations and cash flows for each of the years in the three-year period ended December 31, 2012: | |||||||||||||
Condensed Balance Sheets | |||||||||||||
December 31, 2012 and 2011 | |||||||||||||
(dollars in thousands) | |||||||||||||
2012 | 2011 | ||||||||||||
Assets | |||||||||||||
Cash balances with New Century Bank | $ | 1,437 | $ | 1,053 | |||||||||
Investment in New Century Bank | 64,639 | 59,889 | |||||||||||
Investment in New Century Statutory Trust I | 513 | 503 | |||||||||||
Other assets | 109 | 776 | |||||||||||
Total Assets | $ | 66,698 | $ | 62,221 | |||||||||
Liabilities and Shareholders’ Equity | |||||||||||||
Junior subordinated debentures | $ | 12,372 | $ | 12,372 | |||||||||
Accrued interest and other liabilities | 147 | 303 | |||||||||||
Shareholders’ equity: | |||||||||||||
Common stock | 6,914 | 6,860 | |||||||||||
Additional paid-in capital | 42,000 | 41,851 | |||||||||||
Retained earnings (accumulated deficit) | 4,187 | (450 | ) | ||||||||||
Accumulated other comprehensive income | 1,078 | 1,285 | |||||||||||
Total Shareholders’ Equity | 54,179 | 49,546 | |||||||||||
Total Liabilities and Shareholders’ Equity | $ | 66,698 | $ | 62,221 | |||||||||
Condensed Statements of Operations | |||||||||||||
Years Ended December 31, 2012, 2011 and 2010 | |||||||||||||
(dollars in thousands) | |||||||||||||
2012 | 2011 | 2010 | |||||||||||
Dividends | $ | — | $ | — | $ | 233 | |||||||
Equity in earnings (losses) of subsidiaries | 4,929 | 115 | (4,904 | ) | |||||||||
Operating expense | (437 | ) | (417 | ) | (425 | ) | |||||||
Income tax benefit | 145 | 139 | 141 | ||||||||||
Net income (loss) | $ | 4,637 | $ | (163 | ) | $ | (4,955 | ) | |||||
Condensed Statements of Cash Flows | |||||||||||||
Years Ended December 31, 2012, 2011 and 2010 | |||||||||||||
(dollars in thousands) | |||||||||||||
2012 | 2011 | 2010 | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||
Net income (loss) | $ | 4,637 | $ | (163 | ) | $ | (4,955 | ) | |||||
Equity in undistributed (income) losses of subsidiaries | (4,929 | ) | (115 | ) | 4,904 | ||||||||
Net change in other assets | 667 | 647 | (124 | ) | |||||||||
Net change in other liabilities | (156 | ) | 177 | (8 | ) | ||||||||
Net cash provided (used) by operating activities | 219 | 546 | (183 | ) | |||||||||
CASH FLOW FROM FINANCING ACTIVITIES | |||||||||||||
Proceeds from sale of common stock | 165 | — | — | ||||||||||
Proceeds from other issuance of common stock | — | — | 332 | ||||||||||
Tax benefit from stock option exercises | — | — | 16 | ||||||||||
Net cash provided by financing activities | 165 | — | 348 | ||||||||||
Net increase in cash and cash equivalents | 384 | 546 | 165 | ||||||||||
Cash and cash equivalents at beginning of year | 1,053 | 507 | 342 | ||||||||||
Cash and cash equivalents, end of year | $ | 1,437 | $ | 1,053 | $ | 507 | |||||||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2012 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions Disclosure [Text Block] | ' |
NOTE N — RELATED PARTY TRANSACTIONS | |
During 2012 and 2011, there were no related party transactions other than loan transactions with the Company’s officers and directors as discussed in Note D. | |
During 2010, the Company purchased various insurance policies from a company owned by a former director of New Century Bancorp. Premiums paid totaled approximately $30,000 for these policies, which include one-year policies for directors and officers liability coverage. All such policies were purchased on terms at least as favorable to the Company as could be obtained from an unaffiliated third party. | |
All related party transactions are “arms length” transactions. | |
PREVIOUSLY_REPORTED_LOAN_FRAUD
PREVIOUSLY REPORTED LOAN FRAUD | 12 Months Ended |
Dec. 31, 2012 | |
Previously Reported Loan Fraud [Abstract] | ' |
Previously Reported Loan Fraud [Text Block] | ' |
NOTE O — PREVIOUSLY REPORTED LOAN FRAUD | |
In 2010, the Bank discovered loan fraud in connection with one of the Bank’s largest loan relationships. The previously reported loan fraud included multiple loans to the same borrower and related entities and had been committed over a period of years. | |
In September 2010, $10.8 million in loans were charged-off pertaining to this previously reported loan fraud. The Bank is committed to employing every legal remedy available to recover losses arising from this loan fraud. During the years ended December 31, 2012, 2011 and 2010, $2.6 million, $3.7 million and $777,000 of losses were recovered on these loans. Additionally, there were $47,000, $361,000 and $211,000 in legal and investigative fees incurred in the years ended December 31, 2012, 2011 and 2010 to determine the extent of the fraud and the potential for any additional losses or recoveries. | |
BRANCH_SALE
BRANCH SALE | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Discontinued Operations and Disposal Groups [Abstract] | ' | ' |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | ' | ' |
NOTE I — BRANCH SALE | NOTE P — BRANCH SALE | |
On April 6, 2012, the Bank sold all deposits and selected assets associated with two branch offices located in Pembroke and Raeford, North Carolina. The transaction was consummated pursuant to a definitive purchase and assumption agreement with Lumbee Guaranty Bank, Pembroke, North Carolina, which was entered into on December 20, 2011. The purchase price under the terms of the purchase and assumption agreement was $1.8 million which included $1.1 million for all real property and equipment and $688,000 for a deposit premium. The deposit premium was offset by the write-off of a core deposit intangible of $131,000 on these deposits resulting in a net gain of $557,000 for the Company from this transaction. Lumbee Guaranty Bank assumed $14.6 million in deposits plus accrued interest of $5,000 from the Bank and took assignment of all real property and equipment associated with the two branch offices, which totaled $1.1 million at April 6, 2012. The Bank retained all loans associated with the two branches except for approximately $338,000 plus accrued interest of $2,000 in loans associated with deposit accounts which included overdraft protection loans and loans secured by time deposits. There was a separate payment for the loans purchased that was not included in the $1.8 million purchase price. | On April 6, 2012, the Bank sold all deposits and selected assets associated with two branch offices located in Pembroke and Raeford, North Carolina. The transaction was consummated pursuant to a definitive purchase and assumption agreement with Lumbee Guarantee Bank (“Lumbee”), Pembroke, North Carolina, which was entered into on December 20, 2011. The purchase price under the terms of the purchase and assumption agreement was $1.8 million which included $1.1 million for all real property and equipment and $688,000 for a deposit premium. The deposit premium was offset by the write-off of a core deposit intangible of $131,000 on these deposits resulting in a net gain of $557,000. Lumbee assumed $14.6 million in deposits plus accrued interest of $5,000 from the Bank and took assignment of all real property and equipment associated with the two branch offices, which totaled $1.1 million at April 6, 2012. The Bank retained all loans associated with the two branches except for approximately $338,000 plus accrued interest of $2,000 in loans associated with deposit accounts which included overdraft protection loans and loans secured by time deposits. There was a separate payment for the loans purchased that was not included in the $1.8 million purchase price. | |
MERGER_WITH_SELECT_BANCORP_INC
MERGER WITH SELECT BANCORP, INC | 9 Months Ended |
Sep. 30, 2013 | |
MERGER WITH SELECT BANCORP [Abstract] | ' |
MERGER WITH SELECT BANCORP [Text Block] | ' |
NOTE J — MERGER WITH SELECT BANCORP, INC. | |
On September 30, 2013, the Company signed a merger agreement with Select Bancorp, Inc. (Select), a bank holding company, headquartered in Greenville, North Carolina, whose wholly-owned subsidiary, Select Bank & Trust Company, is a state-chartered commercial bank with approximately $265.3 million in assets. The merger, which is subject to required regulatory and shareholder approvals, will expand the Bank’s North Carolina presence with six branches in Greenville (two), Elizabeth City, Washington, Gibsonville and Burlington. | |
Under the terms of the agreement, shareholders of Select common stock will receive 1.8264 shares of New Century common stock for each share of Select common stock, for implied value of approximately $31.1 million in the aggregate, based on 2,475,000 shares of Select common stock outstanding and the $6.87 per share closing price of New Century common stock on September 27, 2013, valuing each share of Select common stock at $12.55. | |
In addition, each share of Select’s issued and outstanding preferred stock will be exchanged for one share of newly issued New Century preferred stock having terms substantially identical to Select preferred stock. All of the issued and outstanding shares of Select’s preferred stock are held by the Secretary of the United States Treasury and were issued in connection with Select’s participation in the Small Business Lending Fund. | |
The merger is expected to close in mid-2014. | |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2012 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
NOTE Q — SUBSEQUENT EVENTS | |
The Company has evaluated subsequent events through the date and time the financial statements were issued and determined there are no subsequent events to disclose. | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||||
Dec. 31, 2012 | |||||||||||
Accounting Policies [Abstract] | ' | ||||||||||
Use of Estimates, Policy [Policy Text Block] | ' | ||||||||||
Use of Estimates | |||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses and the valuation of other real estate owned. | |||||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | ' | ||||||||||
Cash and Due from Banks, Interest-Earning Deposits in Other Banks and Federal Funds Sold | |||||||||||
For the purpose of presentation in the statements of cash flows, cash and cash equivalents are defined as those amounts included in the balance sheet captions “Cash and due from banks,” “Interest-earning deposits in other banks,” and “Federal funds sold.” | |||||||||||
Investment, Policy [Policy Text Block] | ' | ||||||||||
Investment Securities Available for Sale | |||||||||||
Investment securities available for sale are reported at fair value and consist of debt instruments that are not classified as either trading securities or as held to maturity securities. Unrealized holding gains and losses, net of deferred income tax, on available for sale securities are reported as a net amount in accumulated other comprehensive income. Gains and losses on the sale of investment securities available for sale are determined using the specific-identification method. | |||||||||||
Policy Loans Receivable, Policy [Policy Text Block] | ' | ||||||||||
Loans | |||||||||||
Loans that management has the intent and ability to hold for the foreseeable future or until maturity are reported at their outstanding principal balance adjusted for any charge-offs, the allowance for loan losses, and any deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. Loan origination fees and certain direct origination costs are capitalized and recognized as an adjustment of the yield of the related loan. The accrual of interest on impaired loans is discontinued when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all of the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Loans held for sale are held at the lower of cost or fair market value until sold. | |||||||||||
Loans and Leases Receivable, Nonaccrual Loan and Lease Status, Policy [Policy Text Block] | ' | ||||||||||
Non-accrual Loans | |||||||||||
Loans are placed on non-accrual basis when it has been determined that all contractual principal and interest will not be received. Any payments received on these loans are applied to principal first and then to interest only after all principal has been collected. Impaired loans include all loans in non-accrual status, all troubled debt restructures, all substandard loans that are deemed to be collateral dependent, and other loans that management determines require impairment. In the case of an impaired loan that is still on accrual basis, payments are applied to both principal and interest. | |||||||||||
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | ' | ||||||||||
Allowance for Loan Losses | |||||||||||
The provision for loan losses is based upon management’s estimate of the amount needed to maintain the allowance for loan losses at an adequate level. In making the evaluation of the adequacy of the allowance for loan losses, management gives consideration to current economic conditions, statutory examinations of the loan portfolio by regulatory agencies, delinquency information and management’s internal review of the loan portfolio. Loans are considered impaired when it is probable that all amounts due will not be collected in accordance with the contractual terms of the loan agreement. The measurement of impaired loans is generally based on the present value of expected future cash flows discounted at the historical effective interest rate, or upon the fair value of the collateral if readily determinable. If the recorded investment in the loan exceeds the measure of fair value, a valuation allowance is established as a component of the allowance for loan losses. Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case, interest is recognized on a cash basis. Impaired loans, or portions thereof, are charged off when deemed uncollectible. While management uses the best information available to make evaluations, future adjustments to the allowance may be necessary if conditions differ substantially from the assumptions used in making the evaluations. In addition, regulatory examiners may require the Company to recognize adjustments to the allowance for loan losses based on their judgments about information available to them at the time of their examination. | |||||||||||
Stock In Federal Home Loan Bank Of Atlanta [Policy Text Block] | ' | ||||||||||
Stock in Federal Home Loan Bank of Atlanta | |||||||||||
As a requirement for membership, the Bank invests in stock of the Federal Home Loan Bank of Atlanta (“FHLB”). This investment is carried at cost at December 31, 2012 and 2011. The Company continually monitors the financial strength of the FHLB and evaluates the investment for potential impairment. There can be no assurance that the impact of recent or future legislation on the Federal Home Loan Banks will not cause a decrease in the value of the Bank’s investment in FHLB stock. | |||||||||||
Other Non Marketable Securities [Policy Text Block] | ' | ||||||||||
Other Non Marketable Securities | |||||||||||
Other non marketable securities are equity instruments that are reported at cost. | |||||||||||
Real Estate, Policy [Policy Text Block] | ' | ||||||||||
Foreclosed Real Estate | |||||||||||
Real estate acquired through, or in lieu of, loan foreclosure is recorded at the lower of cost or net realizable value, less the estimated cost to sell, at the date of foreclosure. After foreclosure, management periodically performs valuations of the property and adjusts the value down when the carrying value of the property exceeds the estimated net realizable value. Revenue and expenses from operations and changes in the valuation allowance are included in other non-interest expense. | |||||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | ' | ||||||||||
Premises and Equipment | |||||||||||
Premises and equipment are stated at cost less accumulated depreciation. Depreciation is calculated on the straight-line method over the estimated useful lives of the assets. Estimated useful lives are 40 years for buildings and 3 to 10 years for furniture, fixtures and equipment. Leasehold improvements are amortized over the terms of the respective leases or the estimated useful lives of the improvements, whichever is shorter. Repairs and maintenance costs are charged to operations as incurred and additions and improvements to premises and equipment are capitalized. Upon sale or retirement, the cost and related accumulated depreciation are removed from the accounts and any gains or losses are reflected in current operations. | |||||||||||
Long Lived Assets Held For Sale [Policy Text Block] | ' | ||||||||||
Premises and Equipment Held for Sale | |||||||||||
Premises and equipment held for sale are stated at book value which approximates fair market value. | |||||||||||
Income Tax, Policy [Policy Text Block] | ' | ||||||||||
Income Taxes | |||||||||||
Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the tax basis of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax assets are also recognized for operating loss carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which the temporary differences are expected to be recovered or settled. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that the tax benefits will not be realized. | |||||||||||
Bank Owned Life Insurance [Policy Text Block] | ' | ||||||||||
Bank Owned Life Insurance | |||||||||||
Bank Owned Life Insurance (“BOLI”) is carried at its cash surrender value on the balance sheet and is classified as a non-interest-earning asset. Death benefit proceeds received in excess of the policy’s cash surrender value are recognized to income. Returns on the BOLI assets are added to the carrying value and included as non-interest income in the consolidated statement of operations. Any receipt of benefit proceeds is recorded as a reduction to the carrying value of the BOLI asset. At December 31, 2012 and 2011, the Company held no policy loans against its BOLI cash surrender values or restrictions on the use of the proceeds. | |||||||||||
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | ' | ||||||||||
Intangible Assets | |||||||||||
Intangible assets with finite lives include core deposits and other intangibles. Intangible assets are subject to impairment testing whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company performed an impairment test of the core deposit intangible at December 31, 2012 and found no impairment to exist. The Company’s core deposit intangible is amortized using the straight-line method over nine years. The gross amount of the core deposit intangible is $1.4 million with $1.1 million being amortized to date, leaving a remaining net balance of $0.3 million as of December 31, 2012. | |||||||||||
The table below summarizes the remaining core deposit intangible amortization (dollars in thousands): | |||||||||||
2013 | $ | 116 | |||||||||
2014 | 116 | ||||||||||
2015 | 66 | ||||||||||
$ | 298 | ||||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | ||||||||||
Stock-Based Compensation | |||||||||||
The Company has certain stock-based employee compensation plans, described more fully in Note L. Generally accepted accounting principles (“GAAP”) require recognition of the cost of employee services received in exchange for an award of equity instruments in the financial statements over the period the employee is required to perform the services in exchange for the award (usually the vesting period). GAAP also requires the compensation cost for all awards granted after the date of adoption and any unvested awards that remained outstanding as of the date of adoption to be measured based on the fair value of the award on the grant date. | |||||||||||
Comprehensive Income, Policy [Policy Text Block] | ' | ||||||||||
Comprehensive Income | |||||||||||
The Company reports as comprehensive income all changes in shareholders’ equity during the year from sources other than shareholders. Other comprehensive income refers to all components (revenues, expenses, gains, and losses) of comprehensive income that are excluded from net income. The Company’s only component of other comprehensive income is unrealized gains and losses on investment securities available for sale. | |||||||||||
For the years ended December 31, 2012, 2011 and 2010, total comprehensive income (loss) was $4.4 million, ($56,000) and ($5.2 million), respectively. The deferred tax liability related to the components of comprehensive income amounted to $699,000 and $806,000 as of December 31, 2012 and 2011, respectively. The accumulated balance of other comprehensive income was $1.1 million and $1.2 million at December 31, 2012 and 2011, respectively. | |||||||||||
Segment Reporting, Policy [Policy Text Block] | ' | ||||||||||
Segment Information | |||||||||||
The Company follows the provisions of accounting standards codification (“ASC”) 280, Segment Reporting, which specifies guidelines for determining an entity’s operating segments and the type and level of financial information to be disclosed. Based on these guidelines, management has determined that the Bank operates as a single business segment; the providing of general commercial and retail financial services to customers located in the Company’s market areas. The various products, as well as the methods used to distribute them, are those generally offered by community banks. | |||||||||||
Earnings Per Share, Policy [Policy Text Block] | ' | ||||||||||
Net Income per Common Share and Common Shares Outstanding | |||||||||||
Basic earnings per share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to outstanding stock options. Basic and diluted net income per share have been computed based upon net income as presented in the accompanying statements of operations divided by the weighted average number of common shares outstanding or assumed to be outstanding as summarized below: | |||||||||||
2012 | 2011 | 2010 | |||||||||
Weighted average number of common shares used in | 6,898,147 | 6,887,168 | 6,875,845 | ||||||||
computing basic net income per share | |||||||||||
Effect of dilutive stock options | 230 | — | — | ||||||||
Weighted average number of common shares and dilutive | 6,898,377 | 6,887,168 | 6,875,845 | ||||||||
potential common shares used in computing diluted net | |||||||||||
income per share | |||||||||||
At December 31, 2012, there were 360,931 anti-dilutive options. All options were anti-dilutive at December 31, 2011, and 2010. | |||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | ||||||||||
Recent Accounting Pronouncements | |||||||||||
The following summarizes recent accounting pronouncements and their expected impact on the Company: | |||||||||||
Accounting Standards Update (“ASU”) 2011-04, Fair Value Measurement (Topic 820) — Amendments to Achieve Common Fair Value Measurements and Disclosure Requirements in U.S. GAAP and IFRSs. ASU 2011-04 amends Topic 820, Fair Value Measurements and Disclosures, to converge the fair value measurement guidance in U.S. generally accepted accounting principles and International Financial Reporting Standards. ASU 2011-04 clarifies the application of existing fair value measurement requirements, changes certain principles in Topic 820 and requires additional fair value disclosures. ASU 2011-04 became effective for annual periods beginning after December 15, 2011, and did not have a significant impact on the Company’s financial statements upon adoption on January 1, 2012. | |||||||||||
ASU 2011-05, Comprehensive Income (Topic 220) — Presentation of Comprehensive Income. ASU 2011-05 amends Topic 220, Comprehensive Income, to require that all non-owner changes in stockholders’ equity be presented in either a single continuous statement of comprehensive income or in two separate but consecutive statements. Additionally, ASU 2011-05 requires entities to present, on the face of the financial statements, reclassification adjustments for items that are reclassified from other comprehensive income to net income in the statement or statements where the components of net income and the components of other comprehensive income are presented. The option to present components of other comprehensive income as part of the statement of changes in stockholders’ equity was eliminated. ASU 2011-05 became effective for annual periods beginning after December 15, 2011, and did not have a significant impact on the Company’s financial statements upon adoption on January 1, 2012. | |||||||||||
ASU 2011-12, Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income. ASU 2011-12 amends Topic 220 to allow the Financial Accounting Standards Board (“FASB”) time to redeliberate whether to present on the face of the financial statements the effects of reclassifications out of accumulated other comprehensive income on the components of net income and other comprehensive income for all periods presented. All other requirements in ASU 2011-05 are not affected by ASU 2011-12, including the requirement to report comprehensive income either in a single continuous financial statement or in two separate but consecutive financial statements. Public entities were required to apply these requirements for fiscal years, and interim periods within those years beginning after December 15, 2011. The Company has adopted the standard and the adoption of ASU 2011-12 did not have an impact on the Company’s financial condition, results of operations, or cash flows. | |||||||||||
ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This guidance is the culmination of the FASB’s deliberation on reporting reclassification adjustments from accumulated other comprehensive income (“AOCI”). The amendments in ASU 2013-02 do not change the current requirements for reporting net income or other comprehensive income. However, the amendments require disclosure of the amounts reclassified out of the AOCI in its entirety, by component, on the face of the statement of operations or in the notes thereto. Amounts that are not required to be reclassified in their entirety to net income must be cross-referenced to other disclosures that provide additional detail. The standard is effective prospectively for annual and interim reporting periods beginning after December 15, 2012. The Company has adopted the standard and the adoption of ASU 2013-02 did not have any impact on the Company’s financial condition, results of operations, or cash flows. | |||||||||||
Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations and cash flows. | |||||||||||
From time to time, the FASB issues exposure drafts for proposed statements of financial accounting standards. Such exposure drafts are subject to comment from the public, to revisions by the FASB and to final issuance by the FASB as statements of financial accounting standards. Management considers the effect of the proposed statements on the consolidated financial statements of the Company and monitors the status of changes to and proposed effective dates of exposure drafts. | |||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2012 | |||||||||||
Accounting Policies [Abstract] | ' | ||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | ' | ||||||||||
The table below summarizes the remaining core deposit intangible amortization (dollars in thousands): | |||||||||||
2013 | $ | 116 | |||||||||
2014 | 116 | ||||||||||
2015 | 66 | ||||||||||
$ | 298 | ||||||||||
Schedule of Weighted Average Number of Shares [Table Text Block] | ' | ||||||||||
Basic and diluted net income per share have been computed based upon net income as presented in the accompanying statements of operations divided by the weighted average number of common shares outstanding or assumed to be outstanding as summarized below: | |||||||||||
2012 | 2011 | 2010 | |||||||||
Weighted average number of common shares used in | 6,898,147 | 6,887,168 | 6,875,845 | ||||||||
computing basic net income per share | |||||||||||
Effect of dilutive stock options | 230 | — | — | ||||||||
Weighted average number of common shares and dilutive | 6,898,377 | 6,887,168 | 6,875,845 | ||||||||
potential common shares used in computing diluted net | |||||||||||
income per share | |||||||||||
PER_SHARE_RESULTS_Tables
PER SHARE RESULTS (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | |||||||||||||
Basic net income per share is computed based upon the weighted average number of shares of common stock outstanding during the period. Diluted net income per share includes the dilutive effect of stock options outstanding during the period. At September 30, 2013 and 2012 there were 278,659 and 369,182 anti-dilutive options outstanding for each three month period, and 308,909 and 371,593 anti-dilutive options for each nine month period, respectively. | ||||||||||||||
Three Months Ended September | Nine Months Ended September | |||||||||||||
30, | 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Weighted average shares used for basic net | 6,921,352 | 6,913,636 | 6,917,958 | 6,892,946 | ||||||||||
income per share | ||||||||||||||
Effect of dilutive stock options | 2,790 | 449 | 1,549 | 118 | ||||||||||
Weighted average shares used for diluted net | 6,924,142 | 6,914,085 | 6,919,507 | 6,893,064 | ||||||||||
income per share | ||||||||||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||
Sep. 30, 2013 | Dec. 31, 2012 | ||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ' | |||||||||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | ' | ' | |||||||||||||||||||||||||||||||||
The following tables summarize quantitative disclosures about the fair value measurement for each category of assets carried at fair value on a recurring basis as of September 30, 2013 and December 31, 2012 (in thousands): | The following tables summarize quantitative disclosures about the fair value measurement for each category of assets carried at fair value on a recurring basis as of December 31, 2012 and December 31, 2011 (dollars in thousands): | ||||||||||||||||||||||||||||||||||
Investment securities available for sale | Fair value | Quoted Prices in | Significant Other | Significant | |||||||||||||||||||||||||||||||
September 30, 2013 | Active Markets for | Observable Inputs | Unobservable Inputs | ||||||||||||||||||||||||||||||||
Identical Assets (Level | (Level 2) | (Level 3) | Investment securities available for sale December 31, 2012 | Fair value | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||||||||||||||
1) | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||||||||||
U.S. government | $ | 37,358 | $ | — | $ | 37,358 | $ | — | U.S. government agencies – GSE’s | $ | 37,154 | $ | — | $ | 37,154 | $ | — | ||||||||||||||||||
agencies – Government Sponsored- | Mortgage-backed securities – GSE’s | 35,954 | — | 35,954 | — | ||||||||||||||||||||||||||||||
Enterprises (“GSE’s”) | Municipal bonds | 8,383 | — | 8,383 | — | ||||||||||||||||||||||||||||||
Mortgage-backed securities – GSE’s | 40,949 | — | 40,949 | — | Total | $ | 81,491 | $ | — | $ | 81,491 | $ | — | ||||||||||||||||||||||
Municipal bonds | 8,169 | — | 8,169 | — | |||||||||||||||||||||||||||||||
Total | $ | 86,476 | $ | — | $ | 86,476 | $ | — | |||||||||||||||||||||||||||
Investment securities available | Fair value | Quoted Prices in Active | Significant Other | Significant | Investment securities available for sale December 31, 2011 | Fair value | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||||||||||||
for sale | Markets for Identical Assets | Observable Inputs (Level | Unobservable Inputs | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||||
December 31, 2012 | (Level 1) | 2) | (Level 3) | U.S. government agencies – GSE’s | $ | 26,412 | $ | — | $ | 26,412 | $ | — | |||||||||||||||||||||||
U.S. government | $ | 37,154 | $ | — | $ | 37,154 | $ | — | Mortgage-backed securities – GSE’s | 35,169 | — | 35,169 | — | ||||||||||||||||||||||
agencies – GSE’s | Municipal bonds | 6,273 | — | 6,273 | — | ||||||||||||||||||||||||||||||
Mortgage-backed | 35,954 | — | 35,954 | — | Total | $ | 67,854 | $ | — | $ | 67,854 | $ | — | ||||||||||||||||||||||
securities – GSE’s | |||||||||||||||||||||||||||||||||||
Municipal bonds | 8,383 | — | 8,383 | — | |||||||||||||||||||||||||||||||
Total | $ | 81,491 | $ | — | $ | 81,491 | $ | — | |||||||||||||||||||||||||||
Fair Value Measurements, Nonrecurring [Table Text Block] | ' | ' | |||||||||||||||||||||||||||||||||
The following tables summarize quantitative disclosures about the fair value measurement for each category of assets carried at fair value on a non-recurring basis as of September 30, 2013 and December 31, 2012 (in thousands): | The following tables summarize quantitative disclosures about the fair value measurement for each category of assets carried at fair value on a nonrecurring basis as of December 31, 2012 and December 31, 2011 (dollars in thousands): | ||||||||||||||||||||||||||||||||||
Asset Category | Fair value | Quoted Prices in Active Markets | Significant Other | Significant Unobservable | |||||||||||||||||||||||||||||||
September 30, | for Identical Assets (Level 1) | Observable Inputs (Level 2) | Inputs (Level 3) | ||||||||||||||||||||||||||||||||
2013 | Asset Category December 31, 2012 | Fair value | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||||||||||||||||
Impaired loans | $ | 10,373 | $ | — | $ | — | $ | 10,373 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||
Foreclosed real | 2,164 | — | — | 2,164 | Impaired loans | $ | 8,104 | $ | — | $ | — | $ | 8,104 | ||||||||||||||||||||||
estate | Foreclosed real estate | 2,833 | — | — | 2,833 | ||||||||||||||||||||||||||||||
Total | $ | 12,537 | $ | — | $ | — | $ | 12,537 | Total | $ | 10,937 | $ | — | $ | — | $ | 10,937 | ||||||||||||||||||
As of September 30, 2013, the Bank identified $19.7 million in impaired loans, of which $10.4 million were carried at fair value on a non-recurring basis which included $7.1 million in loans that required a specific reserve of $604,000, and an additional $3.9 million in other loans without specific reserves that had partial charge-offs. | |||||||||||||||||||||||||||||||||||
Asset Category | Fair value | Quoted Prices in Active Markets | Significant Other | Significant Unobservable | |||||||||||||||||||||||||||||||
December 31, 2012 | for Identical Assets (Level 1) | Observable Inputs (Level 2) | Inputs (Level 3) | Asset Category December 31, 2011 | Fair value | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||||||||||||||
Impaired loans | $ | 8,104 | $ | — | $ | — | $ | 8,104 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||
Foreclosed real | 2,833 | — | — | 2,833 | Impaired loans | $ | 13,353 | $ | — | $ | — | $ | 13,353 | ||||||||||||||||||||||
estate | Foreclosed real estate | 3,031 | — | — | 3,031 | ||||||||||||||||||||||||||||||
Total | $ | 10,937 | $ | — | $ | — | $ | 10,937 | Total | $ | 16,384 | $ | — | $ | — | $ | 16,384 | ||||||||||||||||||
Schedule of Fair Value, Off-balance Sheet Risks [Table Text Block] | ' | ' | |||||||||||||||||||||||||||||||||
The following table presents the carrying values and estimated fair values of the Company’s financial instruments at December 31, 2012 and 2011: | |||||||||||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||||
Carrying Amount | Estimated Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||||||||
Cash and due from banks | $ | 13,498 | $ | 13,498 | $ | 13,498 | $ | — | $ | — | |||||||||||||||||||||||||
Interest-earning deposits in other banks | 97,081 | 97,081 | 97,081 | — | — | ||||||||||||||||||||||||||||||
Federal funds sold | 3,029 | 3,029 | 3,029 | — | — | ||||||||||||||||||||||||||||||
Investment securities available for sale | 81,491 | 81,491 | — | 81,491 | — | ||||||||||||||||||||||||||||||
Loans, net | 359,995 | 377,591 | — | — | 377,591 | ||||||||||||||||||||||||||||||
Accrued interest receivable | 1,636 | 1,636 | — | — | 1,636 | ||||||||||||||||||||||||||||||
Stock in the FHLB | 973 | 973 | — | — | 973 | ||||||||||||||||||||||||||||||
Other non-marketable securities | 1,105 | 1,105 | — | — | 1,105 | ||||||||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||||||||
Deposits | $ | 498,559 | $ | 507,478 | $ | — | $ | 507,478 | $ | — | |||||||||||||||||||||||||
Short-term debt | 17,848 | 17,848 | — | 17,848 | — | ||||||||||||||||||||||||||||||
Long-term debt | 12,372 | 8,451 | — | 8,451 | — | ||||||||||||||||||||||||||||||
Accrued interest payable | 281 | 281 | — | — | 281 | ||||||||||||||||||||||||||||||
31-Dec-11 | |||||||||||||||||||||||||||||||||||
Carrying Amount | Estimated Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||||||||
Cash and due from banks | $ | 18,478 | $ | 18,478 | $ | 18,478 | $ | — | $ | — | |||||||||||||||||||||||||
Interest-earning deposits in other banks | 55,590 | 55,590 | 55,590 | — | — | ||||||||||||||||||||||||||||||
Federal funds sold | 3,028 | 3,028 | 3,028 | — | — | ||||||||||||||||||||||||||||||
Investment securities available for sale | 67,854 | 67,854 | — | 67,854 | — | ||||||||||||||||||||||||||||||
Loans, net | 407,590 | 424,851 | — | — | 424,851 | ||||||||||||||||||||||||||||||
Premises and equipment held for sale | 1,113 | 1,113 | — | — | 1,113 | ||||||||||||||||||||||||||||||
Accrued interest receivable | 2,003 | 2,003 | — | — | 2,003 | ||||||||||||||||||||||||||||||
Stock in the FHLB | 1,248 | 1,248 | — | — | 1,248 | ||||||||||||||||||||||||||||||
Other non-marketable securities | 1,080 | 1,080 | — | — | 1,080 | ||||||||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||||||||
Deposits | $ | 501,377 | $ | 509,454 | $ | — | $ | 509,454 | $ | — | |||||||||||||||||||||||||
Short-term debt | 21,877 | 21,877 | — | 21,877 | — | ||||||||||||||||||||||||||||||
Long-term debt | 14,372 | 9,661 | — | 9,661 | — | ||||||||||||||||||||||||||||||
Accrued interest payable | 330 | 330 | — | — | 330 | ||||||||||||||||||||||||||||||
FAIR_VALUE_OF_FINANCIAL_INSTRU1
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Investments, All Other Investments [Abstract] | ' | ||||||||||||||||
Fair Value, by Balance Sheet Grouping [Table Text Block] | ' | ||||||||||||||||
The following table presents the carrying values and estimated fair values of the Company’s financial instruments at September 30, 2013 and December 31, 2012: | |||||||||||||||||
September 30, 2013 | |||||||||||||||||
Carrying | Estimated Fair | Level 1 | Level 2 | Level 3 | |||||||||||||
Amount | Value | ||||||||||||||||
(In thousands) | |||||||||||||||||
Financial assets: | |||||||||||||||||
Cash and due from banks | $ | 11,711 | $ | 11,711 | $ | 11,711 | $ | — | $ | — | |||||||
Interest-earning deposits in other | 71,920 | 71,920 | 71,920 | — | — | ||||||||||||
banks | |||||||||||||||||
Federal funds sold | 3,028 | 3,028 | 3,028 | — | — | ||||||||||||
Investment securities available for | 86,476 | 86,476 | — | 86,476 | — | ||||||||||||
sale | |||||||||||||||||
Loans, net | 342,229 | 356,977 | — | — | 356,977 | ||||||||||||
Accrued interest receivable | 1,753 | 1,753 | 1,753 | — | — | ||||||||||||
Stock in FHLB | 796 | 796 | — | — | 796 | ||||||||||||
Other non-marketable securities | 1,040 | 1,040 | — | — | 1,040 | ||||||||||||
Financial liabilities: | |||||||||||||||||
Deposits | $ | 459,812 | $ | 465,264 | $ | — | $ | 465,264 | $ | — | |||||||
Short term debt | 14,207 | 14,207 | — | 14,207 | — | ||||||||||||
Long term debt | 12,372 | 7,750 | — | 7,750 | — | ||||||||||||
Accrued interest payable | 235 | 235 | — | — | 235 | ||||||||||||
December 31, 2012 | |||||||||||||||||
Carrying | Estimated Fair | Level 1 | Level 2 | Level 3 | |||||||||||||
Amount | Value | ||||||||||||||||
(In thousands) | |||||||||||||||||
Financial assets: | |||||||||||||||||
Cash and due from banks | $ | 13,498 | $ | 13,498 | $ | 13,498 | $ | — | $ | — | |||||||
Interest-earning deposits in other | 97,081 | 97,081 | 97,081 | — | — | ||||||||||||
banks | |||||||||||||||||
Federal funds sold | 3,029 | 3,029 | 3,029 | — | — | ||||||||||||
Investment securities available | 81,491 | 81,491 | — | 81,491 | — | ||||||||||||
for sale | |||||||||||||||||
Loans, net | 359,995 | 377,591 | — | — | 377,591 | ||||||||||||
Accrued interest receivable | 1,636 | 1,636 | — | — | 1,636 | ||||||||||||
Stock in the FHLB | 973 | 973 | — | — | 973 | ||||||||||||
Other non-marketable securities | 1,105 | 1,105 | — | — | 1,105 | ||||||||||||
Financial liabilities: | |||||||||||||||||
Deposits | $ | 498,559 | $ | 507,478 | $ | — | $ | 507,478 | $ | — | |||||||
Short term debt | 17,848 | 17,848 | — | 17,848 | — | ||||||||||||
Long term debt | 12,372 | 8,451 | — | 8,451 | — | ||||||||||||
Accrued interest payable | 281 | 281 | — | — | 281 | ||||||||||||
INVESTMENT_SECURITIES_Tables
INVESTMENT SECURITIES (Tables) | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ' | ||||||||||||||||||||||||||||||||||||||
Available-for-sale Securities [Table Text Block] | ' | ' | ||||||||||||||||||||||||||||||||||||||
The amortized cost and fair value of securities available for sale, with gross unrealized gains and losses, follow: | ||||||||||||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair | |||||||||||||||||||||||||||||||||||||
value | ||||||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||||||||||||||||||
U.S. government agencies – GSE’s | ||||||||||||||||||||||||||||||||||||||||
Within 1 year | $ | 10,580 | $ | 47 | $ | — | $ | 10,627 | ||||||||||||||||||||||||||||||||
After 1 year but within 5 years | 9,819 | 26 | — | 9,845 | ||||||||||||||||||||||||||||||||||||
After 5 years but within 10 years | 6,000 | — | -477 | 5,523 | ||||||||||||||||||||||||||||||||||||
After 10 years | 11,391 | 14 | -42 | 11,363 | ||||||||||||||||||||||||||||||||||||
Mortgage-backed securities – GSE’s | ||||||||||||||||||||||||||||||||||||||||
Within 1 year | 212 | 12 | — | 224 | ||||||||||||||||||||||||||||||||||||
After 1 year but within 5 years | 33,417 | 781 | -31 | 34,167 | ||||||||||||||||||||||||||||||||||||
After 5 years but within 10 years | 6,740 | — | -182 | 6,558 | ||||||||||||||||||||||||||||||||||||
Municipal bonds | ||||||||||||||||||||||||||||||||||||||||
Within 1 year | 100 | 1 | — | 101 | ||||||||||||||||||||||||||||||||||||
After 1 year but within 5 years | 3,039 | 194 | — | 3,233 | ||||||||||||||||||||||||||||||||||||
After 5 years but within 10 years | 3,320 | 36 | -88 | 3,268 | ||||||||||||||||||||||||||||||||||||
After 10 years | 1,527 | 61 | -21 | 1,567 | ||||||||||||||||||||||||||||||||||||
$ | 86,145 | $ | 1,172 | $ | -841 | $ | 86,476 | |||||||||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Fairvalue | |||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||||||||||||||||||
U.S. government agencies – GSE’s | ||||||||||||||||||||||||||||||||||||||||
Within 1 year | $ | 9,385 | $ | 75 | $ | — | $ | 9,460 | ||||||||||||||||||||||||||||||||
After 1 year but within 5 years | 16,947 | 100 | — | 17,047 | ||||||||||||||||||||||||||||||||||||
After 5 years but within 10 years | 6,003 | — | -45 | 5,958 | ||||||||||||||||||||||||||||||||||||
After 10 years | 4,616 | 73 | — | 4,689 | ||||||||||||||||||||||||||||||||||||
Mortgage-backed securities – GSE’s | ||||||||||||||||||||||||||||||||||||||||
Within 1 year | 1,085 | 68 | — | 1,152 | ||||||||||||||||||||||||||||||||||||
After 1 year but within 5 years | 27,188 | 1,122 | -20 | 28,290 | ||||||||||||||||||||||||||||||||||||
After 5 years but within 10 years | 4,505 | — | -6 | 4,500 | ||||||||||||||||||||||||||||||||||||
After 10 years | 2,016 | — | -4 | 2,012 | ||||||||||||||||||||||||||||||||||||
Municipal bonds | ||||||||||||||||||||||||||||||||||||||||
Within 1 year | 350 | 1 | — | 351 | ||||||||||||||||||||||||||||||||||||
After 1 year but within 5 years | 2,354 | 187 | — | 2,541 | ||||||||||||||||||||||||||||||||||||
After 5 years but within 10 years | 3,665 | 122 | — | 3,787 | ||||||||||||||||||||||||||||||||||||
After 10 years | 1,601 | 103 | — | 1,704 | ||||||||||||||||||||||||||||||||||||
$ | 79,715 | $ | 1,851 | $ | -75 | $ | 81,491 | |||||||||||||||||||||||||||||||||
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | ' | ' | ||||||||||||||||||||||||||||||||||||||
The amortized cost and fair value of available for sale investments (“AFS”), with gross unrealized gains and losses, follow: | ||||||||||||||||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||
Amortized | Gross unrealized | Gross unrealized | Fair | |||||||||||||||||||||||||||||||||||||
cost | gains | losses | value | |||||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||||||||||||||||||
U.S. government agencies – GSE’s (“Government | $ | 36,951 | $ | 248 | $ | -45 | $ | 37,154 | ||||||||||||||||||||||||||||||||
Sponsored Entities”) | ||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities – GSE’s | 34,794 | 1,189 | -29 | 35,954 | ||||||||||||||||||||||||||||||||||||
Municipal bonds | 7,970 | 414 | -1 | 8,383 | ||||||||||||||||||||||||||||||||||||
$ | 79,715 | $ | 1,851 | $ | -75 | $ | 81,491 | |||||||||||||||||||||||||||||||||
As of December 31, 2012, accumulated other comprehensive income included net gains of $1.8 million, net of deferred income taxes of $699,000. | ||||||||||||||||||||||||||||||||||||||||
December 31, 2011 | ||||||||||||||||||||||||||||||||||||||||
Amortized | Gross unrealized | Gross unrealized | Fair | |||||||||||||||||||||||||||||||||||||
cost | gains | losses | value | |||||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||||||||||||||||||
U.S. government agencies – GSE’s (“Government | $ | 26,085 | $ | 327 | $ | — | $ | 26,412 | ||||||||||||||||||||||||||||||||
Sponsored Entities”) | ||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities – GSE’s | 33,871 | 1,316 | -18 | 35,169 | ||||||||||||||||||||||||||||||||||||
Municipal bonds | 5,807 | 466 | — | 6,273 | ||||||||||||||||||||||||||||||||||||
$ | 65,763 | $ | 2,109 | $ | -18 | $ | 67,854 | |||||||||||||||||||||||||||||||||
Schedule of Unrealized Loss on Investments [Table Text Block] | ' | ' | ||||||||||||||||||||||||||||||||||||||
The following tables show investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, at September 30, 2013 and December 31, 2012. | The following tables show gross unrealized losses and fair value, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position as of December 31, 2012 and 2011. | |||||||||||||||||||||||||||||||||||||||
September 30, 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||||||
value | losses | value | losses | value | losses | value | losses | value | losses | value | losses | |||||||||||||||||||||||||||||
(In thousands) | (dollars in thousands) | |||||||||||||||||||||||||||||||||||||||
Securities available for sale: | Securities available for sale: | |||||||||||||||||||||||||||||||||||||||
U.S. government agencies – GSE’s | $ | 9,069 | $ | 519 | $ | — | $ | — | $ | 9,069 | $ | 519 | U.S. government | $ | 5,959 | $ | 45 | $ | — | $ | — | $ | 5,959 | $ | 45 | |||||||||||||||
Mortgage-backed securities – GSE’s | 11,537 | 213 | — | — | 11,537 | 213 | agencies – GSE’s | |||||||||||||||||||||||||||||||||
Municipal bonds | 2,767 | 109 | — | — | 2,767 | 109 | Mortgage-backed | 10,286 | 29 | — | — | 10,286 | 29 | |||||||||||||||||||||||||||
Total temporarily impaired | $ | 23,373 | $ | 841 | $ | — | $ | — | $ | 23,373 | $ | 841 | securities – GSE’s | |||||||||||||||||||||||||||
securities | Municipal bonds | 677 | 1 | — | — | 677 | 1 | |||||||||||||||||||||||||||||||||
Total temporarily impaired | $ | 16,922 | $ | 75 | $ | — | $ | — | $ | 16,922 | $ | 75 | ||||||||||||||||||||||||||||
December 31, 2012 | securities | |||||||||||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||||||||
Fairv | Unrealized | Fair | Unrealized | Fair | Unrealized | 2011 | ||||||||||||||||||||||||||||||||||
alue | losses | value | losses | value | losses | Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||
(In thousands) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||||||||||||||
Securities available for sale: | value | losses | value | losses | value | losses | ||||||||||||||||||||||||||||||||||
U.S. government agencies – GSE’s | $ | 5,959 | $ | 45 | $ | — | $ | — | $ | 5,959 | $ | 45 | (dollars in thousands) | |||||||||||||||||||||||||||
Mortgage-backed securities – GSE’s | 10,286 | 30 | — | — | 10,286 | 30 | Securities available for sale: | |||||||||||||||||||||||||||||||||
Total temporarily impaired | $ | 16,245 | $ | 75 | $ | — | $ | — | $ | 16,245 | $ | 75 | Mortgage-backed | $ | 7,207 | $ | 18 | $ | — | $ | — | $ | 7,207 | $ | 18 | |||||||||||||||
securities | securities – GSE’s | |||||||||||||||||||||||||||||||||||||||
Total temporarily impaired | $ | 7,207 | $ | 18 | $ | — | $ | — | $ | 7,207 | $ | 18 | ||||||||||||||||||||||||||||
securities | ||||||||||||||||||||||||||||||||||||||||
Investments Classified by Contractual Maturity Date [Table Text Block] | ' | ' | ||||||||||||||||||||||||||||||||||||||
The following table sets forth certain information regarding the amortized costs, carrying values and contractual maturities of the Company’s investment portfolio at December 31, 2012. | ||||||||||||||||||||||||||||||||||||||||
Amortized | Fair | |||||||||||||||||||||||||||||||||||||||
Cost | Value | |||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||||||||||||||||||
U.S. government agencies – GSE’s | ||||||||||||||||||||||||||||||||||||||||
Due within one year | $ | 9,385 | $ | 9,460 | ||||||||||||||||||||||||||||||||||||
Due after one but within five years | 16,947 | 17,047 | ||||||||||||||||||||||||||||||||||||||
Due after five but within ten years | 6,003 | 5,958 | ||||||||||||||||||||||||||||||||||||||
Due after ten years | 4,616 | 4,689 | ||||||||||||||||||||||||||||||||||||||
36,951 | 37,154 | |||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities – GSE’s | ||||||||||||||||||||||||||||||||||||||||
Due within one year | 1,085 | 1,152 | ||||||||||||||||||||||||||||||||||||||
Due after one but within five years | 27,188 | 28,290 | ||||||||||||||||||||||||||||||||||||||
Due after five but within ten years | 4,505 | 4,500 | ||||||||||||||||||||||||||||||||||||||
Due after ten years | 2,016 | 2,012 | ||||||||||||||||||||||||||||||||||||||
34,794 | 35,954 | |||||||||||||||||||||||||||||||||||||||
Municipal bonds | ||||||||||||||||||||||||||||||||||||||||
Due within one year | 350 | 351 | ||||||||||||||||||||||||||||||||||||||
Due after one but within five years | 2,354 | 2,541 | ||||||||||||||||||||||||||||||||||||||
Due after five but within ten years | 3,665 | 3,787 | ||||||||||||||||||||||||||||||||||||||
Due after ten years | 1,601 | 1,704 | ||||||||||||||||||||||||||||||||||||||
7,970 | 8,383 | |||||||||||||||||||||||||||||||||||||||
Total securities available for sale | ||||||||||||||||||||||||||||||||||||||||
Due within one year | 10,820 | 10,963 | ||||||||||||||||||||||||||||||||||||||
Due after one but within five years | 46,489 | 47,878 | ||||||||||||||||||||||||||||||||||||||
Due after five but within ten years | 14,173 | 14,245 | ||||||||||||||||||||||||||||||||||||||
Due after ten years | 8,233 | 8,405 | ||||||||||||||||||||||||||||||||||||||
$ | 79,715 | $ | 81,491 | |||||||||||||||||||||||||||||||||||||
LOANS_Tables
LOANS (Tables) | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Following is a summary of the composition of the Company’s loan portfolio at September 30, 2013 and December 31, 2012: | The following is a summary of loans at December 31, 2012 and 2011: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount | Percent of total | Amount | Percent of total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate loans: | Amount | Percent of total | Amount | Percent of total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 to 4 family residential | $ | 34,157 | 9.78 | % | $ | 41,017 | 11.14 | % | (dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 174,746 | 50.06 | % | 186,949 | 50.82 | % | Real estate loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | 19,145 | 5.48 | % | 19,524 | 5.31 | % | 1 to 4 family residential | $ | 41,017 | 11.14 | % | $ | 52,182 | 12.49 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | 51,950 | 14.88 | % | 48,220 | 13.11 | % | Commercial real estate | 186,949 | 50.82 | % | 192,047 | 45.98 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Home equity lines of credit (“HELOC”) | 32,206 | 9.23 | % | 34,603 | 9.41 | % | Multi-family residential | 19,524 | 5.31 | % | 23,377 | 5.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total real estate loans | 312,204 | 89.43 | % | 330,313 | 89.79 | % | Construction | 48,220 | 13.11 | % | 70,846 | 16.96 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other loans: | Home equity lines of credit (“HELOC”) | 34,603 | 9.41 | % | 38,702 | 9.27 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 29,233 | 8.37 | % | 29,297 | 7.96 | % | Total real estate loans | 330,313 | 89.79 | % | 377,154 | 90.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals | 8,047 | 2.31 | % | 8,615 | 2.34 | % | Other loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Overdrafts | 147 | 0.04 | % | 119 | 0.03 | % | Commercial and industrial | 29,297 | 7.96 | % | 33,146 | 7.94 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other loans | 37,427 | 10.72 | % | 38,031 | 10.33 | % | Loans to individuals | 8,615 | 2.34 | % | 7,583 | 1.82 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross loans | 349,631 | 368,344 | Overdrafts | 119 | 0.03 | % | 88 | 0.02 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less deferred loan origination fees, net | -544 | -0.16 | % | -452 | -0.12 | % | Total other loans | 38,031 | 10.33 | % | 40,817 | 9.78 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans | 349,087 | 100 | % | 367,892 | 100 | % | Gross loans | 368,344 | 417,971 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | -6,858 | -7,897 | Less deferred loan origination fees, net | (452 | ) | (.12 | )% | (347 | ) | (.08 | )% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans, net | $ | 342,229 | $ | 359,995 | Total loans | 367,892 | 100 | % | 417,624 | 100 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | (7,897 | ) | (10,034 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans, net | $ | 359,995 | $ | 407,590 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Past Due Financing Receivables [Table Text Block] | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following tables present an age analysis of past due loans, segregated by class of loans as of September 30, 2013 and December 31, 2012, respectively: | The following tables present as of December 31, 2012 and 2011 an age analysis of past due loans, segregated by class of loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30+ Days Past Due | Non- Accrual Loans | Total | Current | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Past Due | Loans | 2012 | 30+ Days Past Due | Non-Accrual Loans | Total | Current | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | Past Due | Loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | — | $ | 137 | $ | 137 | $ | 29,096 | $ | 29,233 | (dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | 115 | 1,023 | 1,138 | 50,812 | 51,950 | Commercial and industrial | $ | 215 | $ | 319 | $ | 534 | $ | 28,763 | $ | 29,297 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | — | 1,004 | 1,004 | 18,141 | 19,145 | Construction | 138 | 2,298 | 2,436 | 45,784 | 48,220 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | 4,350 | 4,350 | 170,396 | 174,746 | Multi-family residential | — | 1,482 | 1,482 | 18,042 | 19,524 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals & overdrafts | 22 | 7 | 29 | 8,165 | 8,194 | Commercial real estate | 241 | 4,373 | 4,614 | 182,335 | 186,949 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
1-to-4 family residential | 369 | 847 | 1,216 | 32,941 | 34,157 | Loans to individuals & overdrafts | 19 | 11 | 30 | 8,704 | 8,734 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | 60 | 773 | 833 | 31,373 | 32,206 | 1 to 4 family residential | 536 | 1,061 | 1,597 | 39,420 | 41,017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred loan (fees) cost, net | — | — | — | — | -544 | HELOC | 30 | 582 | 612 | 33,991 | 34,603 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 566 | $ | 8,141 | $ | 8,707 | $ | 340,924 | $ | 349,087 | Deferred loan (fees) cost, net | (452 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
There were no loans that were more than 90 days past due and still accruing interest at September 30, 2013. | $ | 1,179 | $ | 10,126 | $ | 11,305 | $ | 357,039 | $ | 367,892 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30+ Days Past Due | Non- Accrual Loans | Total | Current | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Past Due | Loans | 2011 | 30+ Days Past Due | Non-Accrual Loans | Total | Current | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | Past Due | Loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 215 | $ | 319 | $ | 534 | $ | 28,763 | $ | 29,297 | (dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | 138 | 2,298 | 2,436 | 45,784 | 48,220 | Commercial and industrial | $ | 48 | $ | 171 | $ | 219 | $ | 32,927 | $ | 33,146 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | — | 1,482 | 1,482 | 18,042 | 19,524 | Construction | 568 | 4,072 | 4,640 | 66,206 | 70,846 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 241 | 4,373 | 4,614 | 182,335 | 186,949 | Multi-family residential | 1,540 | — | 1,540 | 21,837 | 23,377 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals & overdrafts | 19 | 11 | 30 | 8,704 | 8,734 | Commercial real estate | 1,013 | 10,425 | 11,438 | 180,609 | 192,047 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 to 4 family residential | 536 | 1,061 | 1,597 | 39,420 | 41,017 | Loans to individuals & overdrafts | 10 | 176 | 186 | 7,485 | 7,671 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | 30 | 582 | 612 | 33,991 | 34,603 | 1 to 4 family residential | 735 | 1,875 | 2,610 | 49,572 | 52,182 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred loan (fees) cost, net | — | — | — | — | -452 | HELOC | 333 | 904 | 1,237 | 37,465 | 38,702 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 1,179 | $ | 10,126 | $ | 11,305 | $ | 357,039 | $ | 367,892 | Deferred loan (fees) cost, net | (347 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 4,247 | $ | 17,623 | $ | 21,870 | $ | 396,101 | $ | 417,624 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions [Table Text Block] | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
A summary of related party loan transactions, in thousands, is as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2012 | $ | 14,262 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exposure of directors/executive officers added in 2012 | 92 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | 3,227 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Directors, resigned or retired from board in 2012 | (4,066 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan repayments | (10,699 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 2,816 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impaired Financing Receivables [Table Text Block] | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following tables present information on loans that were considered to be impaired as of September 30, 2013 and December 31, 2012: | The following tables present information on loans that were considered to be impaired as of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2012 and December 31, 2011: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of September 30, 2013 | September 30, 2013 | September 30, 2013 | 31-Dec-12 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contractual | Interest Income | Interest Income | Contractual | Year to Date | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unpaid | Average | Recognized on | Average | Recognized on | Unpaid | Related | Average | Interest Income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recorded | Principal | Related | Recorded | Impaired | Recorded | Impaired | Recorded | Principal | Allowance | Recorded | Recognized on | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment | Balance | Allowance | Investment | Loans | Investment | Loans | Investment | Balance | for Loan Losses | Investment | Impaired Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | 2012:00:00 | (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
With no related allowance recorded: | With no related allowance recorded: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 628 | $ | 822 | $ | - | $ | 644 | $ | 27 | $ | 543 | $ | 31 | Commercial and industrial | $ | 545 | $ | 810 | $ | - | $ | 496 | $ | 20 | |||||||||||||||||||||||||||||||||||||||||
Construction | 1,885 | 2,137 | - | 1,787 | 5 | 2,006 | 8 | Construction | 2,376 | 2,940 | - | 2,088 | 20 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 3,576 | 4,798 | - | 5,494 | - | 5,297 | - | Commercial real estate | 5,987 | 6,475 | - | 9,988 | 195 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals & overdrafts | 1 | 1 | - | 1 | - | 2 | - | Loans to individuals & overdrafts | 3 | 13 | - | 123 | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | 2,395 | 2,395 | - | 2,401 | - | 1,915 | - | Multi-family residential | 1,442 | 1,442 | - | 1,501 | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||
1 to 4 family residential | 3,345 | 3,686 | - | 2,955 | 100 | 2,877 | 133 | HELOC | 641 | 821 | - | 891 | 6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | 775 | 1,007 | - | 629 | 3 | 552 | 4 | 1 to 4 family residential | 2,725 | 2,995 | - | 1,985 | 123 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal: | 12,605 | 14,846 | - | 13,911 | 135 | 13,192 | 176 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
With an allowance recorded: | Subtotal: | 13,719 | 15,496 | - | 17,072 | 364 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 14 | 14 | 7 | 7 | - | 60 | - | With an allowance recorded: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | 462 | 540 | 43 | 580 | 10 | 451 | 12 | Commercial and industrial | 65 | 66 | 51 | 80 | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 5,658 | 5,658 | 361 | 3,850 | 143 | 4,527 | 202 | Construction | 266 | 266 | 64 | 1,358 | 6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals & overdrafts | 10 | 10 | 2 | 12 | - | 17 | - | Commercial real estate | 4,505 | 5,474 | 581 | 3,433 | 298 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | - | - | - | - | - | 10 | - | Loans to individuals & overdrafts | 21 | 21 | 4 | 27 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
1 to 4 family residential | 765 | 764 | 75 | 1,146 | 1 | 967 | 8 | Multi-family Residential | 40 | 40 | 9 | 25 | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | 154 | 181 | 117 | 352 | 3 | 254 | 3 | HELOC | 179 | 179 | 43 | 235 | 10 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal: | 7,063 | 7,167 | 605 | 5,947 | 157 | 6,286 | 225 | 1 to 4 family residential | 926 | 926 | 157 | 1,089 | 56 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Totals: | Subtotal: | 6,002 | 6,972 | 909 | 6,247 | 376 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | 14,618 | 16,364 | 410 | 14,763 | 123 | 14,809 | 253 | Totals: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer | 11 | 11 | 2 | 13 | - | 19 | - | Commercial | 15,226 | 17,513 | 705 | 18,969 | 544 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential | 5,039 | 5,638 | 192 | 5,082 | 107 | 4,650 | 148 | Consumer | 24 | 34 | 4 | 150 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Grand Total: | $ | 19,668 | $ | 22,013 | $ | 605 | $ | 19,858 | $ | 230 | $ | 19,478 | $ | 401 | Residential | 4,471 | 4,921 | 200 | 4,200 | 195 | ||||||||||||||||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | Grand Total: | $ | 19,721 | $ | 22,468 | $ | 909 | $ | 23,319 | $ | 740 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2012 | September 30, 2012 | September 30, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contractual | Interest Income | Interest Income | 31-Dec-11 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unpaid | Related | Average | Recognized on | Average | Recognized on | Contractual | Year to Date | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recorded | Principal | Allowance | Recorded | Impaired | Recorded | Impaired | Unpaid | Average | Interest Income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment | Balance | for Loan Losses | Investment | Loans | Investment | Loans | Recorded | Principal | Related | Recorded | Recognized on | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | Investment | Balance | Allowance | Investment | Impaired Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2012:00:00 | 2011:00:00 | (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
With no related allowance recorded: | With no related allowance recorded: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 545 | $ | 810 | $ | - | $ | 503 | $ | 4 | $ | 483 | $ | 17 | Commercial and industrial | $ | 478 | $ | 808 | $ | - | $ | 290 | $ | 25 | |||||||||||||||||||||||||||||||||||||||||
Construction | 2,376 | 2,940 | - | 2,550 | 10 | 2,017 | 16 | Construction | 1,011 | 1,166 | - | 1,539 | 23 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 5,987 | 6,475 | - | 11,411 | - | 10,989 | 233 | Commercial real estate | 9,195 | 10,085 | - | 7,889 | 158 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals & overdrafts | 3 | 13 | - | 108 | - | 153 | - | Loans to individuals & overdrafts | 217 | 234 | - | 175 | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | 1,442 | 1,442 | - | 1,492 | - | 1,516 | - | Multi-family residential | 1,540 | 1,540 | - | 1,041 | 102 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
1 to 4 family residential | 2,725 | 2,995 | - | 1,616 | 26 | 1,800 | 39 | 1 to 4 family residential | 2,100 | 2,929 | - | 1,747 | 33 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | 641 | 821 | - | 1,018 | - | 954 | 5 | HELOC | 730 | 824 | - | 405 | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal: | 13,719 | 15,496 | - | 18,698 | 40 | 17,912 | 310 | Subtotal: | 15,271 | 17,586 | - | 13,086 | 345 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
With an allowance recorded: | With an allowance recorded: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 65 | 66 | 51 | 108 | 10 | 84 | 10 | Commercial and industrial | - | - | - | 272 | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | 266 | 266 | 64 | 733 | - | 1,631 | 5 | Construction | 3,365 | 4,085 | 674 | 1,269 | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 4,505 | 5,474 | 581 | 2,492 | 40 | 3,165 | 53 | Commercial real estate | 5,039 | 5,929 | 498 | 4,043 | 71 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals & overdrafts | 21 | 21 | 4 | 22 | 2 | 29 | 2 | Loans to individuals & overdrafts | 16 | 16 | 15 | 102 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | 40 | 40 | 9 | 41 | - | 21 | - | Multi-family Residential | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||
1 to 4 family residential | 926 | 926 | 43 | 1,503 | 63 | 1,129 | 87 | 1 to 4 family residential | 736 | 774 | 170 | 2,000 | 35 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | 179 | 179 | 157 | 128 | - | 249 | 3 | HELOC | 408 | 435 | 158 | 320 | 10 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal: | 6,002 | 6,972 | 909 | 5,027 | 115 | 6,308 | 160 | Subtotal: | 9,564 | 11,239 | 1,515 | 8,006 | 121 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Totals: | Totals: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | 15,226 | 17,513 | 705 | 19,330 | 64 | 19,906 | 334 | Commercial | 20,628 | 23,613 | 1,172 | 16,343 | 383 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer | 24 | 34 | 4 | 130 | 2 | 182 | 2 | Consumer | 233 | 250 | 15 | 277 | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential | 4,471 | 4,921 | 200 | 4,265 | 89 | 4,132 | 134 | Residential | 3,974 | 4,962 | 328 | 4,472 | 78 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Grand Total: | $ | 19,721 | $ | 22,468 | $ | 909 | $ | 23,725 | $ | 155 | $ | 24,220 | $ | 470 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Grand Total: | $ | 24,835 | $ | 28,825 | $ | 1,515 | $ | 21,092 | $ | 466 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings on Financing Receivables [Table Text Block] | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following table presents loans that were modified as troubled debt restructurings (“TDRs”) with a breakdown of the types of concessions made by loan class during the three and nine months ended 2013 and 2012: | The following table presents loans that were modified as TDRs within the previous twelve months with a breakdown of the types of concessions made by loan class during the twelve months ended December 31, 2012 and 2011: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | Twelve Months Ended December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30-Sep-13 | 30-Sep-13 | Number of loans | Pre-Modification Outstanding Recorded investments | Post-Modification Outstanding Recorded investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number | Pre- | Post- | Number | Pre- | Post- | (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
of loans | Modification | Modification | of loans | Modification | Modification | Below market interest rate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding Recorded Investment | Outstanding Recorded Investment | Outstanding Recorded Investment | Outstanding Recorded Investment | Commercial and Industrial | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Construction | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Below market interest rate: | Commercial real estate | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | $ | — | $ | — | — | $ | — | $ | — | Loans to individuals and overdrafts | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | — | 1 to 4 family residential | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | — | — | HELOC | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals & overdrafts | — | — | — | — | — | — | Total | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1-to-4 family residential | 3 | 276 | 275 | 3 | 276 | 275 | Extended payment terms: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | — | — | — | — | — | — | Commercial and Industrial | 1 | 116 | 114 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | — | — | — | — | — | — | Construction | 2 | 294 | 284 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 3 | 276 | 275 | 3 | 276 | 275 | Commercial real estate | 4 | 1,281 | 863 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Extended payment terms: | Multi-family residential | 1 | 1,524 | 1,514 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | — | — | 4 | 537 | 522 | Loans to individuals and overdrafts | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | 2 | 134 | 133 | 1 to 4 family residential | 2 | 100 | 96 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | 1 | 645 | 645 | HELOC | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals & overdrafts | — | — | — | — | — | — | Total | 10 | 3,315 | 2,871 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1-to-4 family residential | 2 | 945 | 933 | 4 | 1,084 | 1,071 | Other: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | — | — | — | — | — | — | Commercial and Industrial | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | — | — | — | — | — | — | Construction | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 2 | 945 | 933 | 11 | 2,400 | 2,371 | Commercial real estate | 2 | 849 | 837 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other: | Loans to individuals and overdrafts | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | — | — | — | — | — | 1 to 4 family residential | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | 1 | 69 | 68 | 1 | 69 | 68 | HELOC | 6 | 306 | 301 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | 2 | 2,454 | 2,433 | Total | 8 | 1,155 | 1,138 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals & overdrafts | — | — | — | — | — | — | Total | 18 | $ | 4,470 | $ | 4,009 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
1-to-4 family residential | — | — | — | 2 | 135 | 130 | As noted in the table above, there were eight loans that were considered troubled debt restructures for reasons other than below market interest rates, extended terms or forgiveness of principal. These loans were renewed at terms that vary from those that the Company would enter into for new loans of this type. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 1 | 69 | 68 | 5 | 2,658 | 2,631 | Twelve Months Ended December 31, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 6 | $ | 1,290 | $ | 1,276 | 19 | $ | 5,334 | $ | 5,277 | Number of loans | Pre-Modification Outstanding Recorded Investments | Post-Modification Outstanding Recorded investments | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Below market interest rate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | Commercial and Industrial | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30-Sep-12 | 30-Sep-12 | Construction | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of loans | Pre- Modification Outstanding Recorded Investment | Post- Modification Outstanding Recorded Investment | Number of loans | Pre- Modification Outstanding Recorded Investment | Post- Modification Outstanding Recorded Investment | Commercial real estate | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Loans to individuals and overdrafts | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Below market interest rate: | 1 to 4 family residential | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | $ | — | $ | — | — | $ | — | $ | — | HELOC | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | — | Total | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | — | — | Extended payment terms: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals & overdrafts | — | — | — | — | — | — | Commercial and Industrial | 1 | 211 | 211 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1-to-4 family residential | — | — | — | — | — | — | Construction | 3 | 3,226 | 3,226 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | — | — | — | — | — | — | Commercial real estate | 11 | 6,502 | 6,473 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | — | — | — | — | — | — | Loans to individuals and overdrafts | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | — | — | — | — | — | — | 1 to 4 family residential | 5 | 456 | 453 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Extended payment terms: | HELOC | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | — | — | 1 | 116 | 114 | Total | 20 | 10,395 | 10,363 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | 2 | 294 | 286 | Forgiveness of principal: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | 4 | 1,281 | 1,128 | Commercial and Industrial | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals & overdrafts | — | — | — | — | — | — | Construction | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1-to-4 family residential | 2 | 100 | 97 | 2 | 100 | 97 | Commercial real estate | 1 | 938 | 635 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | 1 | 1,524 | 1,514 | 1 | 1,524 | 1,515 | Loans to individuals and overdrafts | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | — | — | — | — | — | — | Multi-family residential | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 3 | 1,624 | 1,611 | 10 | 3,315 | 3,140 | 1 to 4 family residential | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other: | HELOC | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | — | — | — | — | — | Total | 1 | 938 | 635 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | — | Total | 21 | $ | 11,333 | $ | 10,998 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | 2 | 849 | 842 | The following table presents loans that were modified as troubled debt restructurings (“TDRs”) within the previous twelve months for which there was a payment default together with a breakdown of the types of concessions made by loan class during the twelve months ended December 31, 2012 and 2011: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals & overdrafts | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1-to-4 family residential | 1 | 79 | 79 | 5 | 244 | 240 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | — | — | — | — | — | — | Twelve months ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | — | — | — | — | — | — | 31-Dec-12 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 1 | 79 | 79 | 7 | 1,093 | 1,082 | Number of loans | Recorded investment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 4 | $ | 1,703 | $ | 1,690 | 17 | $ | 4,408 | $ | 4,222 | (dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
As noted in the tables above, there were loans that were considered troubled debt restructurings for reasons other than below market interest rates, extended payment terms or forgiveness of principal. Loans in the “Other” category are those that were renewed at terms that vary from those that the Bank would enter into for new loans of the same type. | Below market interest rate: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and Industrial | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following table presents loans that were modified as TDRs within the past twelve months with a breakdown of the types for which there was a payment default together with concessions made by loan class during the three and nine month period ended September 30, 2013 and 2012: | Construction | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals and overdrafts | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2013 | Nine months ended | 1 to 4 family residential | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30-Sep-13 | HELOC | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number | Recorded investment | Number | Recorded investment | Total | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
of loans | of loans | Extended payment terms: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial and Industrial | 1 | 114 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Below market interest rate: | Construction | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | $ | — | — | $ | — | Commercial real estate | 5 | 2,377 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | Loans to individuals and overdrafts | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | Multi-family residential | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals & overdrafts | — | — | — | — | 1 to 4 family residential | 2 | 96 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1-to-4 family residential | — | — | — | — | HELOC | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | — | — | — | — | Total | 8 | 2,587 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | — | — | — | — | Forgiveness of principal: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | — | — | — | — | Commercial and Industrial | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Extended payment terms: | Construction | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | — | 2 | 156 | Commercial real estate | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | 2 | 132 | Loans to individuals and overdrafts | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | 1 to 4 family residential | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals & overdrafts | — | — | HELOC | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1-to-4 family residential | — | — | 1 | 47 | Total | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | — | — | Other: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | — | — | Commercial and industrial | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | — | — | 5 | 335 | Construction | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Forgiveness of principal: | Commercial real estate | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | — | — | — | Loans to individuals and overdrafts | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | 1-to-4 family residential | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | Multi-family residential | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals and overdrafts | — | — | — | — | HELOC | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1-to-4 family residential | — | — | — | — | Total | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | — | — | — | — | Total | 8 | $ | 2,587 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other: | Twelve months ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | — | — | — | 31-Dec-11 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | Number of loans | Recorded investment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | 1 | 161 | (dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals and overdrafts | — | — | — | — | Below market interest rate: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1-to-4 family residential | — | — | — | — | Commercial and Industrial | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | — | — | — | — | Construction | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | — | — | — | — | Commercial real estate | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | — | — | 1 | 161 | Loans to individuals and overdrafts | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | — | $ | — | 6 | $ | 496 | 1 to 4 family residential | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2012 | Nine months ended | Extended payment terms: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30-Sep-12 | Commercial and Industrial | 1 | 211 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number | Recorded investment | Number | Recorded investment | Construction | 1 | 1,170 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
of loans | of loans | Commercial real estate | 1 | 1,472 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Loans to individuals and overdrafts | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Below market interest rate: | 1 to 4 family residential | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | $ | — | — | $ | — | HELOC | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | Total | 3 | 2,853 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | Forgiveness of principal: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals & overdrafts | — | — | — | — | Commercial and Industrial | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1-to-4 family residential | — | — | — | — | Construction | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | — | — | — | — | Commercial real estate | 1 | 635 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | — | — | — | — | Loans to individuals and overdrafts | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | — | — | — | — | 1 to 4 family residential | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Extended payment terms: | HELOC | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | — | 1 | 114 | Total | 1 | 635 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | 2 | 286 | Total | 4 | $ | 3,488 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | 4 | 1,128 | The following table presents the successes and failures of the types of modifications within the previous twelve months as of December 31, 2012 and 2011: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals & overdrafts | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1-to-4 family residential | 2 | 96 | 2 | 96 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | 1 | 1,514 | 1 | 1,514 | Paid in full | Paying as restructured | Converted to | Foreclosure/Default | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | — | — | — | — | non-accrual | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 3 | 1,610 | 10 | 3,138 | Number | Recorded Investment | Number | Recorded Investment | Number | Recorded Investment | Number | Recorded Investment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Forgiveness of principal: | of loans | of loans | of loans | of loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | — | — | — | (dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | Below market interest rate | — | $ | — | — | $ | — | — | $ | — | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals and overdrafts | — | — | — | — | Extended payment terms | — | — | 7 | 2,694 | 1 | 40 | 2 | 137 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
1-to-4 family residential | — | — | — | — | Forgiveness of principal | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | — | — | — | — | Other | — | — | 8 | 1,138 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | — | — | — | — | Total | — | $ | — | 15 | $ | 3,832 | 1 | $ | 40 | 2 | $ | 137 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | — | — | — | Paid in full | Paying as restructured | Converted to | Foreclosure/Default | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | non-accrual | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | 2 | 842 | Number of loans | Recorded Investment | Number of loans | Recorded Investment | Number of loans | Recorded Investment | Number of loans | Recorded Investment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals and overdrafts | — | — | — | — | (dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1-to-4 family residential | 1 | 79 | 5 | 241 | 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | — | — | — | — | Below market interest rate | — | $ | — | — | $ | — | — | $ | — | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | — | — | — | — | Extended payment terms | — | — | 7 | 1,379 | 10 | 6,131 | 3 | 2,853 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 1 | 79 | 7 | 1,083 | Forgiveness of principal | — | — | — | — | — | — | 1 | 635 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 4 | $ | 1,689 | 17 | $ | 4,221 | Total | — | $ | — | 7 | $ | 1,379 | 10 | $ | 6,131 | 4 | $ | 3,488 | |||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Types Of Modifications [Table Text Block] | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following table presents loans that were modified as TDRs within the past twelve months with a breakdown of the types for which there was a payment default together with concessions made by loan class during the three and nine month period ended September 30, 2013 and 2012: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2013 | Nine months ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number | Recorded investment | Number | Recorded investment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
of loans | of loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Below market interest rate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | $ | — | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals & overdrafts | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1-to-4 family residential | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Extended payment terms: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | — | 2 | 156 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | 2 | 132 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals & overdrafts | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1-to-4 family residential | — | — | 1 | 47 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | — | — | 5 | 335 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Forgiveness of principal: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals and overdrafts | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1-to-4 family residential | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | 1 | 161 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals and overdrafts | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1-to-4 family residential | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | — | — | 1 | 161 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | — | $ | — | 6 | $ | 496 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2012 | Nine months ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30-Sep-12 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number | Recorded investment | Number | Recorded investment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
of loans | of loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Below market interest rate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | $ | — | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals & overdrafts | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1-to-4 family residential | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Extended payment terms: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | — | 1 | 114 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | 2 | 286 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | 4 | 1,128 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals & overdrafts | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1-to-4 family residential | 2 | 96 | 2 | 96 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | 1 | 1,514 | 1 | 1,514 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 3 | 1,610 | 10 | 3,138 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Forgiveness of principal: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals and overdrafts | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1-to-4 family residential | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | 2 | 842 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to individuals and overdrafts | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1-to-4 family residential | 1 | 79 | 5 | 241 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family residential | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HELOC | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 1 | 79 | 7 | 1,083 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 4 | $ | 1,689 | 17 | $ | 4,221 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing Receivable Credit Quality Indicators [Table Text Block] | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following tables present information on risk ratings of the commercial and consumer loan portfolios, segregated by loan class as of September 30, 2013 and December 31, 2012, respectively: | The following tables present information on risk ratings of the commercial and consumer loan portfolios, segregated by loan class as of September 30, 2013 and December 31, 2012, respectively: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30-Sep-13 | 30-Sep-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Credit Exposure By | Commercial and industrial | Construction | Commercial real estate | Multi-family residential | Commercial Credit Exposure By | Commercial and industrial | Construction | Commercial real estate | Multi-family residential | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Internally Assigned Grade | Internally Assigned Grade | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Superior | $ | 738 | $ | 42 | $ | — | $ | — | Superior | $ | 738 | $ | 42 | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Very good | — | — | — | — | Very good | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Good | 5,731 | 1,009 | 18,367 | 6,296 | Good | 5,731 | 1,009 | 18,367 | 6,296 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acceptable | 10,405 | 2,973 | 67,224 | 5,178 | Acceptable | 10,405 | 2,973 | 67,224 | 5,178 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acceptable with care | 6,464 | 45,105 | 62,107 | 5,275 | Acceptable with care | 6,464 | 45,105 | 62,107 | 5,275 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | 5,173 | 1,285 | 19,522 | 1,392 | Special mention | 5,173 | 1,285 | 19,522 | 1,392 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | 722 | 1,536 | 7,526 | 1,004 | Substandard | 722 | 1,536 | 7,526 | 1,004 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | Doubtful | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss | — | — | — | — | Loss | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 29,233 | $ | 51,950 | $ | 174,746 | $ | 19,145 | $ | 29,233 | $ | 51,950 | $ | 174,746 | $ | 19,145 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer Credit Exposure By | 1-to-4 family residential | HELOC | Consumer Credit Exposure By | 1-to-4 family residential | HELOC | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Internally Assigned Grade | Internally Assigned Grade | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 28,601 | $ | 30,014 | Pass | $ | 28,601 | $ | 30,014 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | 1,697 | 1,226 | Special mention | 1,697 | 1,226 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | 3,859 | 966 | Substandard | 3,859 | 966 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 34,157 | $ | 32,206 | $ | 34,157 | $ | 32,206 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer Credit Exposure Based | Loans to individuals & overdrafts | Consumer Credit Exposure Based | Loans to individuals & overdrafts | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On Payment Activity | On Payment Activity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 6,678 | Pass | $ | 6,678 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-pass | 1,519 | Non-pass | 1,519 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 8,197 | $ | 8,197 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-12 | 31-Dec-12 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Credit Exposure By | Commercial and industrial | Construction | Commercial real estate | Multi-family residential | Commercial Credit Exposure By | Commercial and industrial | Construction | Commercial real estate | Multi-family residential | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Internally Assigned Grade | Internally Assigned Grade | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Superior | $ | 296 | $ | 49 | $ | — | $ | — | Superior | $ | 296 | $ | 49 | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Very good | 7 | 2 | 300 | — | Very good | 7 | 2 | 300 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Good | 7,406 | 715 | 19,623 | — | Good | 7,406 | 715 | 19,623 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acceptable | 7,482 | 3,818 | 66,716 | 7,320 | Acceptable | 7,482 | 3,818 | 66,716 | 7,320 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acceptable with care | 12,803 | 37,625 | 70,895 | 9,704 | Acceptable with care | 12,803 | 37,625 | 70,895 | 9,704 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | 691 | 3,233 | 18,278 | 1,018 | Special mention | 691 | 3,233 | 18,278 | 1,018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | 612 | 2,778 | 11,137 | 1,482 | Substandard | 612 | 2,778 | 11,137 | 1,482 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | Doubtful | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss | — | — | — | — | Loss | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 29,297 | $ | 48,220 | $ | 186,949 | $ | 19,524 | $ | 29,297 | $ | 48,220 | $ | 186,949 | $ | 19,524 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer Credit Exposure By | 1-to-4 family residential | HELOC | Consumer Credit Exposure By | 1-to-4 family residential | HELOC | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Internally Assigned Grade | Internally Assigned Grade | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 33,944 | $ | 32,347 | Pass | $ | 33,944 | $ | 32,347 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | 2,839 | 1,103 | Special mention | 2,839 | 1,103 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | 4,234 | 1,153 | Substandard | 4,234 | 1,153 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 41,017 | $ | 34,603 | $ | 41,017 | $ | 34,603 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer Credit Exposure Based | Loans to individuals & overdrafts | Consumer Credit Exposure Based | Loans to individuals & overdrafts | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On Payment Activity | On Payment Activity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 8,634 | Pass | $ | 8,634 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-pass | 100 | Non-pass | 100 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 8,734 | $ | 8,734 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Credit Losses on Financing Receivables [Table Text Block] | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following tables present a roll forward of the Company’s allowance for loan losses by loan class for the three month and nine month periods ended September 30, 2013 and September 30, 2012, respectively: | The following tables present a roll forward of the Company’s allowance for loan losses by loan segment for the twelve month periods ended December 31, 2012 and 2011, respectively (in thousands): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30-Sep-13 | 2012 | Commercial and industrial | Construction | Commercial real estate | 1 to 4 family residential | HELOC | Loans to individuals & overdrafts | Multi- family residential | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | Commercial and industrial | Construction | Commercial real estate | 1-to-4 | HELOC | Loans to | Multi- | Total | Allowance for loan losses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
family residential | individuals & | family | Balance, beginning of period 01/01/2012 | $ | 719 | $ | 1,540 | $ | 4,771 | $ | 1,661 | $ | 1,122 | $ | 94 | $ | 127 | $ | 10,034 | |||||||||||||||||||||||||||||||||||||||||||||||
overdrafts | residential | Provision for loan losses | (2,962 | ) | (339 | ) | 1,468 | (591 | ) | (110 | ) | (42 | ) | (21 | ) | (2,597 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | Loans charged-off | (193 | ) | (720 | ) | (1,580 | ) | (232 | ) | (459 | ) | (70 | ) | — | (3,254 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 250 | $ | 608 | $ | 4,585 | $ | 1,045 | $ | 610 | $ | 62 | $ | 58 | $ | 7,218 | Recoveries | 2,714 | 317 | 287 | 232 | 74 | 90 | — | 3,714 | |||||||||||||||||||||||||||||||||||||||||
6/30/13 | Balance, end of period 12/31/2012 | $ | 278 | $ | 798 | $ | 4,946 | $ | 1,070 | 627 | $ | 72 | $ | 106 | $ | 7,897 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Provision (recovery) for loan losses | (58 | ) | (56 | ) | 218 | (428 | ) | 153 | 14 | 28 | (129 | ) | Ending Balance: individually evaluated for impairment | $ | 51 | $ | 64 | $ | 581 | $ | 157 | $ | 43 | $ | 4 | $ | 9 | $ | 909 | |||||||||||||||||||||||||||||||||||||
Loans charged-off | (1 | ) | (28 | ) | (206 | ) | (188 | ) | (192 | ) | (21 | ) | — | (636 | ) | Ending Balance: collectively evaluated for impairment | $ | 227 | $ | 734 | $ | 4,365 | $ | 913 | $ | 584 | $ | 68 | $ | 97 | $ | 6,988 | ||||||||||||||||||||||||||||||||||
Recoveries | 13 | 22 | 24 | 352 | (14 | ) | 8 | — | 405 | Loans: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, end of period 9/30/2013 | $ | 204 | $ | 546 | $ | 4,621 | $ | 781 | $ | 557 | $ | 63 | $ | 86 | $ | 6,858 | Ending Balance | $ | 29,297 | $ | 48,220 | $ | 186,949 | $ | 41,017 | $ | 34,603 | $ | 8,734 | $ | 19,524 | $ | 368,344 | |||||||||||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 7 | $ | 43 | $ | 361 | $ | 75 | $ | 117 | $ | 2 | $ | — | $ | 605 | Ending Balance: individually evaluated for impairment | $ | 611 | $ | 2,642 | $ | 10,492 | $ | 3,651 | $ | 819 | $ | 24 | $ | 1,482 | $ | 19,721 | |||||||||||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 197 | $ | 503 | $ | 4,260 | $ | 706 | $ | 440 | $ | 61 | $ | 86 | $ | 6,253 | Ending Balance: collectively evaluated for impairment | $ | 28,686 | $ | 45,578 | $ | 176,457 | $ | 37,366 | $ | 33,784 | $ | 8,710 | $ | 18,042 | $ | 348,623 | |||||||||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 29,233 | $ | 51,950 | $ | 174,746 | $ | 34,157 | $ | 32,206 | $ | 8,194 | $ | 19,145 | $ | 349,631 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 642 | $ | 2,349 | $ | 9,233 | $ | 4,110 | $ | 930 | $ | 11 | $ | 2,395 | $ | 19,668 | 2011 | Commercial and industrial | Construction | Commercial real estate | 1 to 4 family residential | HELOC | Loans to individuals & overdrafts | Multi- family residential | Total | |||||||||||||||||||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 28,591 | $ | 49,603 | $ | 165,513 | $ | 30,047 | $ | 31,276 | $ | 8,183 | $ | 16,750 | $ | 329,963 | Allowance for loan losses | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period 01/01/2011 | $ | 1,052 | $ | 349 | $ | 3,111 | $ | 1,900 | $ | 1,433 | $ | 1,530 | $ | 640 | $ | 10,015 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for loan losses | 18 | 2,172 | 4,570 | 1,026 | 298 | (1,353 | ) | (513 | ) | 6,218 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine months ended | Loans charged-off | (4,116 | ) | (993 | ) | (2,970 | ) | (1,512 | ) | (661 | ) | (170 | ) | — | (10,422 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
30-Sep-13 | Recoveries | 3,765 | 12 | 60 | 247 | 52 | 87 | — | 4,223 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | Commercial and industrial | Construction | Commercial real estate | 1-to-4 | HELOC | Loans to | Multi- | Total | Balance, end of period 12/31/2011 | $ | 719 | $ | 1,540 | $ | 4,771 | $ | 1,661 | $ | 1,122 | $ | 94 | $ | 127 | $ | 10,034 | |||||||||||||||||||||||||||||||||||||||||
family | individuals & | family | Ending Balance: individually evaluated for impairment | $ | — | $ | 674 | $ | 498 | $ | 170 | $ | 158 | $ | 15 | $ | — | $ | 1,515 | |||||||||||||||||||||||||||||||||||||||||||||||
residential | overdrafts | residential | Ending Balance: collectively evaluated for impairment | $ | 719 | $ | 866 | $ | 4,273 | $ | 1,491 | $ | 964 | $ | 79 | $ | 127 | $ | 8,519 | |||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | Loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 278 | $ | 798 | $ | 4,946 | $ | 1,070 | $ | 627 | $ | 72 | $ | 106 | $ | 7,897 | Ending Balance | $ | 33,146 | $ | 70,846 | $ | 192,047 | $ | 52,182 | $ | 38,702 | $ | 7,671 | $ | 23,377 | $ | 417,971 | |||||||||||||||||||||||||||||||||
1/1/13 | Ending Balance: | $ | 478 | $ | 4,376 | $ | 14,234 | $ | 2,836 | $ | 1,138 | $ | 233 | $ | 1,540 | $ | 24,835 | |||||||||||||||||||||||||||||||||||||||||||||||||
Provision (recovery) for loan losses | 16 | (246 | ) | (36 | ) | (353 | ) | 99 | (65 | ) | (20 | ) | (605 | ) | individually evaluated for impairment | |||||||||||||||||||||||||||||||||||||||||||||||||||
Loans charged-off | (130 | ) | (28 | ) | (385 | ) | (309 | ) | (231 | ) | (65 | ) | — | (1,148 | ) | Ending Balance: | $ | 32,668 | $ | 66,470 | $ | 177,813 | $ | 49,346 | $ | 37,564 | $ | 7,438 | $ | 21,837 | $ | 393,136 | ||||||||||||||||||||||||||||||||||
Recoveries | 40 | 22 | 96 | 373 | 62 | 121 | — | 714 | collectively evaluated for impairment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, end of period 9/30/2013 | $ | 204 | $ | 546 | $ | 4,621 | $ | 781 | $ | 557 | $ | 63 | $ | 86 | $ | 6,858 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 7 | $ | 43 | $ | 361 | $ | 75 | $ | 117 | $ | 2 | $ | — | $ | 605 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 197 | $ | 503 | $ | 4,260 | $ | 706 | $ | 440 | $ | 61 | $ | 86 | $ | 6,253 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30-Sep-12 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | Commercial and industrial | Construction | Commercial real estate | 1-to-4 | HELOC | Loans to | Multi- | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
family | individuals & | family | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
residential | overdrafts | residential | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 386 | $ | 482 | $ | 5,228 | $ | 1,314 | $ | 897 | $ | 80 | $ | 123 | $ | 8,510 | ||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/12 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision (recovery) for loan losses | 31 | 664 | (192 | ) | (166 | ) | (150 | ) | (6 | ) | 8 | 189 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans charged-off | (7 | ) | (187 | ) | (50 | ) | (63 | ) | (83 | ) | (8 | ) | — | (398 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | 13 | 3 | 120 | 91 | 51 | 9 | — | 287 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, end of period 9/30/2012 | $ | 423 | $ | 962 | $ | 5,106 | $ | 1,176 | $ | 715 | $ | 75 | $ | 131 | $ | 8,588 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 124 | $ | 60 | $ | 532 | $ | 328 | $ | 16 | $ | 5 | $ | 9 | $ | 1,074 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 299 | $ | 902 | $ | 4,574 | $ | 848 | $ | 699 | $ | 70 | $ | 122 | $ | 7,514 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 33,175 | $ | 51,443 | $ | 189,598 | $ | 47,076 | $ | 34,988 | $ | 8,946 | $ | 21,296 | $ | 386,522 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 703 | $ | 3,061 | $ | 13,273 | $ | 3,744 | $ | 774 | $ | 124 | $ | 1,515 | $ | 23,194 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 32,472 | $ | 48,382 | $ | 176,325 | $ | 43,332 | $ | 34,214 | $ | 8,822 | $ | 19,781 | $ | 363,328 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Nine months ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30-Sep-12 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | Commercial and industrial | Construction | Commercial real estate | 1-to-4 | HELOC | Loans to | Multi- | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
family | individuals & | family | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
residential | overdrafts | residential | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 719 | $ | 1,540 | $ | 4,771 | $ | 1,661 | $ | 1,122 | $ | 94 | $ | 127 | $ | 10,034 | ||||||||||||||||||||||||||||||||||||||||||||||||||
1/1/12 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision (recovery) for loan losses | (2,925 | ) | (247 | ) | 1,165 | (535 | ) | (16 | ) | (43 | ) | 4 | (2,597 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans charged-off | (58 | ) | (645 | ) | (1,031 | ) | (162 | ) | (459 | ) | (62 | ) | — | (2,417 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | 2,687 | 314 | 201 | 212 | 68 | 86 | — | 3,568 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, end of period 9/30/2012 | $ | 423 | $ | 962 | $ | 5,106 | $ | 1,176 | $ | 715 | $ | 75 | $ | 131 | $ | 8,588 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 124 | $ | 60 | $ | 532 | $ | 328 | $ | 16 | $ | 5 | $ | 9 | $ | 1,074 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 299 | $ | 902 | $ | 4,574 | $ | 848 | $ | 699 | $ | 70 | $ | 122 | $ | 7,514 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 33,175 | $ | 51,443 | $ | 189,598 | $ | 47,076 | $ | 34,988 | $ | 8,946 | $ | 21,296 | $ | 386,522 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 703 | $ | 3,061 | $ | 13,273 | $ | 3,744 | $ | 774 | $ | 124 | $ | 1,515 | $ | 23,194 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 32,472 | $ | 48,382 | $ | 176,325 | $ | 43,332 | $ | 34,214 | $ | 8,822 | $ | 19,781 | $ | 363,328 | ||||||||||||||||||||||||||||||||||||||||||||||||||
PREMISES_AND_EQUIPMENT_Tables
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended | |||||||
Dec. 31, 2012 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment [Table Text Block] | ' | |||||||
The following is a summary of premises and equipment at December 31, 2012 and 2011: | ||||||||
2012 | 2011 | |||||||
(dollars in thousands) | ||||||||
Land | $ | 3,105 | $ | 3,105 | ||||
Buildings | 9,068 | 9,104 | ||||||
Furniture and equipment | 3,592 | 3,424 | ||||||
Leasehold improvements | 29 | 29 | ||||||
Construction in progress | — | 19 | ||||||
15,794 | 15,681 | |||||||
Less accumulated depreciation | 4,855 | 4,438 | ||||||
Total | $ | 10,939 | $ | 11,243 | ||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | |||||||
The Company has operating leases for its corporate offices and branches that expire at various times through 2027. Future minimum lease payments under the leases for years subsequent to December 31, 2012 are as follows (dollars in thousands): | ||||||||
2013 | $ | 122 | ||||||
2014 | 112 | |||||||
2015 | 109 | |||||||
2016 | 109 | |||||||
2017 | 109 | |||||||
Years thereafter | 1,090 | |||||||
$ | 1,651 | |||||||
DEPOSITS_Tables
DEPOSITS (Tables) | 12 Months Ended | ||||
Dec. 31, 2012 | |||||
Deposits [Abstract] | ' | ||||
Schedule Of Maturities Of Time Deposits [Table Text Block] | ' | ||||
The scheduled maturities of time deposits at December 31, 2012 are as follows: | |||||
Total Time Deposits | |||||
(dollars in thousands) | |||||
Three months or less | $ | 27384 | |||
Over three months through twelve months | 54,301 | ||||
Over one year through two years | 36,782 | ||||
Over two years through three years | 47,273 | ||||
Over three years through four years | 48,433 | ||||
Over four years through five years | 46,596 | ||||
Over five years | 659 | ||||
$ | 261,428 | ||||
SHORT_TERM_AND_LONG_TERM_DEBT_
SHORT TERM AND LONG TERM DEBT (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2012 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of Underlying Assets of Repurchase Agreements when Amount of Repurchase Agreements Exceeds 10 Percent of Assets [Table Text Block] | ' | ||||||||
The following table presents certain information for securities sold under agreements to repurchase: | |||||||||
2012 | 2011 | ||||||||
(Dollars in thousands) | |||||||||
Balance at December 31 | $ | 15,848 | $ | 19,877 | |||||
Weighted average interest rate at December 31 | 0.27 | % | 0.39 | % | |||||
Maximum amount outstanding at any month-end during the year | $ | 24,923 | $ | 22,843 | |||||
Average daily balance outstanding during the year | $ | 21,636 | $ | 20,192 | |||||
Average annual interest rate paid during the year | 0.33 | % | 0.76 | % | |||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2012 | |||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | ' | ||||||||||
The significant components of the provision for income taxes for the years ended December 31, 2012, 2011 and 2010 are as follows: | |||||||||||
2012 | 2011 | 2010 | |||||||||
(dollars in thousands) | |||||||||||
Current tax provision: | |||||||||||
Federal | $ | 38 | $ | -19 | $ | -879 | |||||
State | — | — | — | ||||||||
Total current tax provision (benefit) | 38 | -19 | -879 | ||||||||
Deferred tax provision: | |||||||||||
Federal | 2,217 | -355 | -1,876 | ||||||||
State | 567 | -11 | -529 | ||||||||
Total deferred tax provision (benefit) | 2,784 | -366 | -2,405 | ||||||||
Net income tax provision (benefit) | $ | 2,822 | $ | -385 | $ | -3,284 | |||||
Federal Income Tax Note [Table Text Block] | ' | ||||||||||
The difference between the provision for income taxes and the amounts computed by applying the statutory federal income tax rate of 34% to income before income taxes is summarized below: | |||||||||||
2012 | 2011 | 2010 | |||||||||
(dollars in thousands) | |||||||||||
Income tax at federal statutory rate | $ | 2,536 | $ | -186 | $ | -2,801 | |||||
Increase (decrease) resulting from: | |||||||||||
State income taxes, net of federal tax effect | 374 | -7 | -349 | ||||||||
Tax-exempt interest income | -68 | -72 | -89 | ||||||||
Income from life insurance | -84 | -87 | -89 | ||||||||
Incentive stock option expense | 13 | 26 | 50 | ||||||||
Other permanent differences | 51 | -59 | -6 | ||||||||
Provision for income taxes | $ | 2,822 | $ | -385 | $ | -3,284 | |||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||||||||||
Significant components of deferred taxes at December 31, 2012 and 2011 are as follows: | |||||||||||
2012 | 2011 | ||||||||||
(dollars in thousands) | |||||||||||
Deferred tax assets relating to: | |||||||||||
Allowance for loan losses | $ | 3,044 | $ | 3,869 | |||||||
Deferred compensation | 401 | 404 | |||||||||
Supplemental executive retirement plan | 61 | 61 | |||||||||
Net operating loss/net economic loss | 295 | 2,140 | |||||||||
Write-downs on foreclosed real estate | 107 | 354 | |||||||||
AMT tax credit | 58 | 58 | |||||||||
Other | 71 | 142 | |||||||||
Total deferred tax assets | 4,037 | 7,028 | |||||||||
Deferred tax liabilities relating to: | |||||||||||
Premises and equipment | -730 | -750 | |||||||||
Deferred loan fees/costs | -22 | -18 | |||||||||
Unrealized gain on available-for-sale securities | -699 | -806 | |||||||||
Core deposit intangible | -115 | -210 | |||||||||
Other | — | -95 | |||||||||
Total deferred tax liabilities | -1,566 | -1,879 | |||||||||
Net recorded deferred tax asset, included in other assets | $ | 2,471 | $ | 5,149 | |||||||
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | |||||||||||||
The following table presents changes in accumulated other comprehensive income for the three and nine months ended September 30, 2013 and 2012. | ||||||||||||||
Three Months Ended September | Nine Months Ended | |||||||||||||
30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(In thousands) | ||||||||||||||
Beginning balance | $ | 191 | $ | 1,235 | $ | 1,078 | $ | 1,285 | ||||||
Unrealized gain (loss) on investment securities available for | -102 | 167 | -1,446 | 215 | ||||||||||
sale | ||||||||||||||
Tax benefit | 34 | -59 | 491 | -82 | ||||||||||
Other comprehensive loss before reclassification | -68 | 108 | -955 | 133 | ||||||||||
Amounts reclassified from accumulated comprehensive | ||||||||||||||
income: | ||||||||||||||
Realized loss on investment securities included in net | — | -51 | — | -174 | ||||||||||
income | ||||||||||||||
Tax effect | — | 20 | — | 68 | ||||||||||
Total reclassifications net of tax | — | -31 | — | -106 | ||||||||||
Net current period other comprehensive income (loss) | -68 | 77 | -955 | 27 | ||||||||||
Ending balance | $ | 123 | $ | 1,312 | $ | 123 | $ | 1,312 | ||||||
REGULATORY_MATTERS_Tables
REGULATORY MATTERS (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2012 | ||||||||||||||||||||||
Regulatory Capital Requirements [Abstract] | ' | |||||||||||||||||||||
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | ' | |||||||||||||||||||||
As the following tables indicate, at December 31, 2012, the Company and related Bank subsidiary both exceeded minimum regulatory capital requirements as specified in the tables below. | ||||||||||||||||||||||
Actual | Minimum for capital | |||||||||||||||||||||
adequacy purposes | ||||||||||||||||||||||
The Company: | Amount | Ratio | Amount | Ratio | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
December 31, 2012: | ||||||||||||||||||||||
Total Capital | $ | 67,443 | 16.6 | % | $ | 32,175 | 8 | % | ||||||||||||||
(to Risk-Weighted Assets) | ||||||||||||||||||||||
Tier 1 Capital | 62,229 | 15.34 | % | 16,359 | 4 | % | ||||||||||||||||
(to Risk-Weighted Assets) | ||||||||||||||||||||||
Tier 1 Capital | 62,229 | 10.78 | % | 23,013 | 4 | % | ||||||||||||||||
(to Average Assets) | ||||||||||||||||||||||
Actual | Minimum for capital | |||||||||||||||||||||
adequacy purposes | ||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | |||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
December 31, 2011: | ||||||||||||||||||||||
Total Capital | $ | 60,600 | 13.49 | % | $ | 35,947 | 8 | % | ||||||||||||||
(to Risk-Weighted Assets) | ||||||||||||||||||||||
Tier 1 Capital | 54,929 | 12.22 | % | 17,973 | 4 | % | ||||||||||||||||
(to Risk-Weighted Assets) | ||||||||||||||||||||||
Tier 1 Capital | 54,929 | 9.14 | % | 24,033 | 4 | % | ||||||||||||||||
(to Average Assets) | ||||||||||||||||||||||
There are no well capitalized minimum requirements on holding companies like the Company. | ||||||||||||||||||||||
New Century Bank’s actual capital amounts and ratios are presented in the table below as of December 31, 2012 and 2011: | ||||||||||||||||||||||
Actual | Minimum for capital | Minimum to be well | ||||||||||||||||||||
adequacy purposes | capitalized under prompt corrective action provisions | |||||||||||||||||||||
The Bank: | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
December 31, 2012: | ||||||||||||||||||||||
Total Capital | $ | 65,917 | 16.24 | % | $ | 32,584 | 8 | % | $ | 46,840 | 11.5 | % | ||||||||||
(to Risk-Weighted Assets) | ||||||||||||||||||||||
Tier 1 Capital | 60,791 | 14.98 | % | 16,294 | 4 | % | 32,588 | 8 | % | |||||||||||||
(to Risk-Weighted Assets) | ||||||||||||||||||||||
Tier 1 Capital | 60,791 | 10.52 | % | 22,995 | 4 | % | 57,489 | 8 | % | |||||||||||||
(to Average Assets) | ||||||||||||||||||||||
Actual | Minimum for capital | Minimum to be well | ||||||||||||||||||||
adequacy purposes | capitalized under prompt corrective action provisions | |||||||||||||||||||||
The Bank: | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
December 31, 2011: | ||||||||||||||||||||||
Total Capital | $ | 58,931 | 13.14 | % | $ | 35,868 | 8 | % | $ | 51,560 | 11.5 | % | ||||||||||
(to Risk-Weighted Assets) | ||||||||||||||||||||||
Tier 1 Capital | 53,272 | 11.88 | % | 17,934 | 4 | % | 35,868 | 8 | % | |||||||||||||
(to Risk-Weighted Assets) | ||||||||||||||||||||||
Tier 1 Capital | 53,272 | 8.87 | % | 24,033 | 4 | % | 48,066 | 8 | % | |||||||||||||
(to Average Assets) | ||||||||||||||||||||||
OFFBALANCE_SHEET_RISK_Tables
OFF-BALANCE SHEET RISK (Tables) | 12 Months Ended | ||||
Dec. 31, 2012 | |||||
Off Balance Sheet Risk [Abstract] | ' | ||||
Off Balance Sheet Credit Risk [Table Text Block] | ' | ||||
A summary of the contract amount of the Company’s exposure to off-balance sheet credit risk as of December 31, 2012 is as follows: | |||||
(In thousands) | |||||
Financial instruments whose contract amounts represent credit risk: | |||||
Undisbursed commitments | $ | 53,875 | |||
Letters of credit | 1,366 | ||||
EMPLOYEE_AND_DIRECTOR_BENEFIT_1
EMPLOYEE AND DIRECTOR BENEFIT PLANS (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2012 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | ||||||||||||||||||||
The estimated weighted average fair market value of each option awarded, using the Black-Scholes option pricing model, together with the assumptions used in estimating those weighted average fair values, are displayed below: | |||||||||||||||||||||
2012 | 2011 | 2010 | |||||||||||||||||||
Estimated fair value of options granted | $ | 2.61 | $ | 2.43 | $ | 3.07 | |||||||||||||||
Assumptions in estimating average option values: | |||||||||||||||||||||
Risk-free interest rate | 1.49 | % | 2.55 | % | 3.49 | % | |||||||||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||||||
Volatility | 49.85 | % | 47.06 | % | 50.29 | % | |||||||||||||||
Expected life (in years) | 8 | 7.25 | 8 | ||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||||||||||
A summary of the Company’s option plans as of and for the year ended December 31, 2012 is as follows: | |||||||||||||||||||||
Outstanding Options | Exercisable Options | ||||||||||||||||||||
Shares Available for Future Grants | Number Outstanding | Weighted Average Exercise Price | Number Outstanding | Weighted Average Exercise | |||||||||||||||||
Price | |||||||||||||||||||||
At December 31, 2011 | 285,942 | 422,739 | $ | 8.58 | 359,123 | $ | 9.04 | ||||||||||||||
Options authorized | — | — | — | — | — | ||||||||||||||||
Options granted/vested | (5,750 | ) | 5,750 | 4.77 | 18,204 | 7.28 | |||||||||||||||
Options exercised | — | — | — | — | — | ||||||||||||||||
Options forfeited | 64,147 | (64,147 | ) | 8.48 | (49,566 | ) | $ | (10.54 | ) | ||||||||||||
At December 31, 2012 | 344,339 | 364,342 | $ | 8.53 | 327,761 | $ | 8.9 | ||||||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | ' | ||||||||||||||||||||
Information regarding the stock options outstanding at December 31, 2012 is summarized below: | |||||||||||||||||||||
Range of Exercise Prices | Number of options outstanding | Number of options exercisable | |||||||||||||||||||
$2.25 – $7.07 | 272,562 | 236,881 | |||||||||||||||||||
$7.08 – $10.69 | 22,330 | 21,430 | |||||||||||||||||||
$10.70 – $16.22 | 69,450 | 69,450 | |||||||||||||||||||
Outstanding at end of year | 364,342 | 327,761 | |||||||||||||||||||
Schedule of Nonvested Share Activity [Table Text Block] | ' | ||||||||||||||||||||
A summary of the status of the Company’s non-vested options as of December 31, 2012 and changes during the year ended December 31, 2012, is presented below: | |||||||||||||||||||||
Non-vested Options | Options | Weighted- | |||||||||||||||||||
Average | |||||||||||||||||||||
Grant Date Fair Value | |||||||||||||||||||||
Non-vested at December 31, 2011 | 63,616 | $ | 2.87 | ||||||||||||||||||
Granted | 5,750 | 2.61 | |||||||||||||||||||
Vested | 31,362 | 2.3 | |||||||||||||||||||
Forfeited | (64,147 | ) | 2.91 | ||||||||||||||||||
Non-vested at December 31, 2012 | 36,581 | 2.64 | |||||||||||||||||||
PARENT_COMPANY_FINANCIAL_DATA_
PARENT COMPANY FINANCIAL DATA (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2012 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | ||||||||||||
Condensed Balance Sheet [Table Text Block] | ' | ||||||||||||
Condensed Balance Sheets | |||||||||||||
December 31, 2012 and 2011 | |||||||||||||
(dollars in thousands) | |||||||||||||
2012 | 2011 | ||||||||||||
Assets | |||||||||||||
Cash balances with New Century Bank | $ | 1,437 | $ | 1,053 | |||||||||
Investment in New Century Bank | 64,639 | 59,889 | |||||||||||
Investment in New Century Statutory Trust I | 513 | 503 | |||||||||||
Other assets | 109 | 776 | |||||||||||
Total Assets | $ | 66,698 | $ | 62,221 | |||||||||
Liabilities and Shareholders’ Equity | |||||||||||||
Junior subordinated debentures | $ | 12,372 | $ | 12,372 | |||||||||
Accrued interest and other liabilities | 147 | 303 | |||||||||||
Shareholders’ equity: | |||||||||||||
Common stock | 6,914 | 6,860 | |||||||||||
Additional paid-in capital | 42,000 | 41,851 | |||||||||||
Retained earnings (accumulated deficit) | 4,187 | (450 | ) | ||||||||||
Accumulated other comprehensive income | 1,078 | 1,285 | |||||||||||
Total Shareholders’ Equity | 54,179 | 49,546 | |||||||||||
Total Liabilities and Shareholders’ Equity | $ | 66,698 | $ | 62,221 | |||||||||
Condensed Income Statement [Table Text Block] | ' | ||||||||||||
Condensed Statements of Operations | |||||||||||||
Years Ended December 31, 2012, 2011 and 2010 | |||||||||||||
(dollars in thousands) | |||||||||||||
2012 | 2011 | 2010 | |||||||||||
Dividends | $ | — | $ | — | $ | 233 | |||||||
Equity in earnings (losses) of subsidiaries | 4,929 | 115 | (4,904 | ) | |||||||||
Operating expense | (437 | ) | (417 | ) | (425 | ) | |||||||
Income tax benefit | 145 | 139 | 141 | ||||||||||
Net income (loss) | $ | 4,637 | $ | (163 | ) | $ | (4,955 | ) | |||||
Condensed Cash Flow Statement [Table Text Block] | ' | ||||||||||||
Condensed Statements of Cash Flows | |||||||||||||
Years Ended December 31, 2012, 2011 and 2010 | |||||||||||||
(dollars in thousands) | |||||||||||||
2012 | 2011 | 2010 | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||
Net income (loss) | $ | 4,637 | $ | (163 | ) | $ | (4,955 | ) | |||||
Equity in undistributed (income) losses of subsidiaries | (4,929 | ) | (115 | ) | 4,904 | ||||||||
Net change in other assets | 667 | 647 | (124 | ) | |||||||||
Net change in other liabilities | (156 | ) | 177 | (8 | ) | ||||||||
Net cash provided (used) by operating activities | 219 | 546 | (183 | ) | |||||||||
CASH FLOW FROM FINANCING ACTIVITIES | |||||||||||||
Proceeds from sale of common stock | 165 | — | — | ||||||||||
Proceeds from other issuance of common stock | — | — | 332 | ||||||||||
Tax benefit from stock option exercises | — | — | 16 | ||||||||||
Net cash provided by financing activities | 165 | — | 348 | ||||||||||
Net increase in cash and cash equivalents | 384 | 546 | 165 | ||||||||||
Cash and cash equivalents at beginning of year | 1,053 | 507 | 342 | ||||||||||
Cash and cash equivalents, end of year | $ | 1,437 | $ | 1,053 | $ | 507 | |||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |
2013 | $116 |
2014 | 116 |
2015 | 66 |
Finite-Lived Intangible Assets, Net | $298 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Weighted average number of common shares used in computing basic net income per share | 6,921,352 | 6,913,636 | 6,917,958 | 6,892,946 | 6,898,147 | 6,887,168 | 6,875,845 |
Effect of dilutive stock options | 2,790 | 449 | 1,549 | 118 | 230 | 0 | 0 |
Weighted average number of common shares and dilutive potential common shares used in computing diluted net income per share | 6,924,142 | 6,914,085 | 6,919,507 | 6,893,064 | 6,898,377 | 6,887,168 | 6,875,845 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Jun. 30, 2013 | Jun. 30, 2012 | ||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent, Total | $581,000 | $709,000 | $1,747,000 | $3,929,000 | $4,430,000 | ($56,000) | ($5,213,000) | ' | ' | |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Total | 123,000 | 1,312,000 | 123,000 | 1,312,000 | 1,078,000 | [1] | 1,285,000 | ' | 191,000 | 1,235,000 |
Deferred Tax Liabilities, Other Comprehensive Income | ' | ' | ' | ' | 699,000 | 806,000 | ' | ' | ' | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share, Amount | 278,659 | 369,182 | 308,909 | 371,593 | 360,931 | ' | ' | ' | ' | |
Finite-Lived Core Deposits, Gross | 211,000 | ' | 211,000 | ' | 298,000 | [1] | 545,000 | ' | ' | ' |
Finite-Lived Intangible Assets, Net, Total | ' | ' | ' | ' | 298,000 | ' | ' | ' | ' | |
Core Deposits [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Finite-Lived Intangible Assets, Accumulated Amortization | ' | ' | ' | ' | 1,100,000 | ' | ' | ' | ' | |
Finite-Lived Core Deposits, Gross | ' | ' | ' | ' | 1,400,000 | ' | ' | ' | ' | |
Finite-Lived Intangible Assets, Net, Total | ' | ' | ' | ' | $300,000 | ' | ' | ' | ' | |
Building [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Finite-Lived Intangible Asset, Useful Life | ' | ' | ' | ' | '40 years | ' | ' | ' | ' | |
Furniture and Fixtures [Member] | Minimum [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Finite-Lived Intangible Asset, Useful Life | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | |
Furniture and Fixtures [Member] | Maximum [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Finite-Lived Intangible Asset, Useful Life | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | |
[1] | Derived from audited consolidated financial statements. |
PER_SHARE_RESULTS_Details
PER SHARE RESULTS (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Weighted average shares used for basic net income per share | 6,921,352 | 6,913,636 | 6,917,958 | 6,892,946 | 6,898,147 | 6,887,168 | 6,875,845 |
Effect of dilutive stock options | 2,790 | 449 | 1,549 | 118 | 230 | 0 | 0 |
Weighted average shares used for diluted net income per share | 6,924,142 | 6,914,085 | 6,919,507 | 6,893,064 | 6,898,377 | 6,887,168 | 6,875,845 |
PER_SHARE_RESULTS_Details_Text
PER SHARE RESULTS (Details Textual) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 278,659 | 369,182 | 308,909 | 371,593 | 360,931 |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Assets, Fair Value Disclosure, Recurring | $86,476 | $81,491 | $67,854 |
US Government Agencies Debt Securities [Member] | ' | ' | ' |
Assets, Fair Value Disclosure, Recurring | 37,358 | 37,154 | 26,412 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ' | ' | ' |
Assets, Fair Value Disclosure, Recurring | 40,949 | 35,954 | 35,169 |
Municipal Bonds [Member] | ' | ' | ' |
Assets, Fair Value Disclosure, Recurring | 8,169 | 8,383 | 6,273 |
Fair Value, Inputs, Level 1 [Member] | ' | ' | ' |
Assets, Fair Value Disclosure, Recurring | 0 | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | US Government Agencies Debt Securities [Member] | ' | ' | ' |
Assets, Fair Value Disclosure, Recurring | 0 | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ' | ' | ' |
Assets, Fair Value Disclosure, Recurring | 0 | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Municipal Bonds [Member] | ' | ' | ' |
Assets, Fair Value Disclosure, Recurring | 0 | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ' | ' | ' |
Assets, Fair Value Disclosure, Recurring | 86,476 | 81,491 | 67,854 |
Fair Value, Inputs, Level 2 [Member] | US Government Agencies Debt Securities [Member] | ' | ' | ' |
Assets, Fair Value Disclosure, Recurring | 37,358 | 37,154 | 26,412 |
Fair Value, Inputs, Level 2 [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ' | ' | ' |
Assets, Fair Value Disclosure, Recurring | 40,949 | 35,954 | 35,169 |
Fair Value, Inputs, Level 2 [Member] | Municipal Bonds [Member] | ' | ' | ' |
Assets, Fair Value Disclosure, Recurring | 8,169 | 8,383 | 6,273 |
Fair Value, Inputs, Level 3 [Member] | ' | ' | ' |
Assets, Fair Value Disclosure, Recurring | 0 | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | US Government Agencies Debt Securities [Member] | ' | ' | ' |
Assets, Fair Value Disclosure, Recurring | 0 | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ' | ' | ' |
Assets, Fair Value Disclosure, Recurring | 0 | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Municipal Bonds [Member] | ' | ' | ' |
Assets, Fair Value Disclosure, Recurring | $0 | $0 | $0 |
FAIR_VALUE_MEASUREMENTS_Detail1
FAIR VALUE MEASUREMENTS (Details 1) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Assets, Fair Value Disclosure, Nonrecurring | $12,537 | $10,937 | $16,384 |
Impaired Loans [Member] | ' | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 10,373 | 8,104 | 13,353 |
Foreclosed Real Estate [Member] | ' | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 2,164 | 2,833 | 3,031 |
Fair Value, Inputs, Level 1 [Member] | ' | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Impaired Loans [Member] | ' | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Foreclosed Real Estate [Member] | ' | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ' | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Impaired Loans [Member] | ' | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Foreclosed Real Estate [Member] | ' | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ' | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 12,537 | 10,937 | 16,384 |
Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member] | ' | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 10,373 | 8,104 | 13,353 |
Fair Value, Inputs, Level 3 [Member] | Foreclosed Real Estate [Member] | ' | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | $2,164 | $2,833 | $3,031 |
FAIR_VALUE_MEASUREMENTS_Detail2
FAIR VALUE MEASUREMENTS (Details Textual) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 |
Impaired Loans [Member] | Impaired Loans [Member] | Impaired Loans [Member] | Impaired Loans [Member] | Impaired Loans [Member] | Foreclosed Real Estate [Member] | Foreclosed Real Estate [Member] | Foreclosed Real Estate [Member] | Foreclosed Real Estate [Member] | Foreclosed Real Estate [Member] | Fair Value [Member] | Fair Value [Member] | ||||
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | ||||||||||
Fair Value Inputs, Discount Rate | ' | ' | ' | ' | ' | ' | 6.00% | 50.00% | ' | ' | ' | 6.00% | 42.00% | ' | ' |
Impaired Loans Receivable | $19,700,000 | $19,700,000 | $24,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 12,537,000 | 10,937,000 | 16,384,000 | 10,373,000 | 8,104,000 | 13,353,000 | ' | ' | 2,164,000 | 2,833,000 | 3,031,000 | ' | ' | ' | ' |
Impaired Loans Required for Specific Reserves | 7,100,000 | 6,000,000 | 9,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impaired Loans Specific Reserves | 604,000 | 909,000 | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Impaired Loans Without Specific Reserves | $3,900,000 | $3,000,000 | $5,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage Of Discount From Impaired Loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.00% | 55.00% |
Percentage Of Discount From Foreclosed Real Estate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16.00% | 20.00% |
FAIR_VALUE_OF_FINANCIAL_INSTRU2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
In Thousands, unless otherwise specified | ||||
Financial assets: | ' | ' | ' | |
Cash and due from banks | $11,711 | $13,498 | [1] | $18,478 |
Interest-earning deposits in other banks | 71,920 | 97,081 | 55,590 | |
Federal funds sold | 3,028 | 3,029 | [1] | 3,028 |
Investment securities available for sale | 86,476 | 81,491 | 67,854 | |
Loans, net | 342,229 | 359,995 | 407,590 | |
Premises and equipment held for sale | ' | 0 | 1,113 | |
Accrued interest receivable | 1,753 | 1,636 | [1] | 2,003 |
Stock in the FHLB | 796 | 973 | [1] | 1,248 |
Other non-marketable securities | 1,040 | 1,105 | 1,080 | |
Financial liabilities: | ' | ' | ' | |
Deposits | 459,812 | 498,559 | [1] | 501,377 |
Short term debt | 14,207 | 17,848 | [1] | 21,877 |
Long term debt | 12,372 | 12,372 | [1] | 14,372 |
Accrued interest payable | 235 | 281 | [1] | 330 |
Financial assets: | ' | ' | ' | |
Cash and due from banks, Fair value | 11,711 | 13,498 | 18,478 | |
Interest-earning deposits in other banks, Fair value | 71,920 | 97,081 | 55,590 | |
Federal funds sold, Fair value | 3,028 | 3,029 | 3,028 | |
Investment securities available for sale, Fair value | 86,476 | 81,491 | [1] | 67,854 |
Loans, net, Fair value | 356,977 | 377,591 | 424,851 | |
Premises and equipment held for sale, Fair Value | ' | ' | 1,113 | |
Accrued interest receivable, Fair value | 1,753 | 1,636 | 2,003 | |
Stock in the FHLB, Fair value | 796 | 973 | 1,248 | |
Other non-marketable securities, Fair value | 1,040 | 1,105 | 1,080 | |
Financial liabilities: | ' | ' | ' | |
Deposits, Fair Value | 465,264 | 507,478 | 509,454 | |
Short term Debt, Fair value | 14,207 | 17,848 | 21,877 | |
Long term Debt, Fair value | 7,750 | 8,451 | 9,661 | |
Accrued interest payable, Fair value | 235 | 281 | 330 | |
Fair Value, Inputs, Level 1 [Member] | ' | ' | ' | |
Financial assets: | ' | ' | ' | |
Cash and due from banks, Fair value | 11,711 | 13,498 | 18,478 | |
Interest-earning deposits in other banks, Fair value | 71,920 | 97,081 | 55,590 | |
Federal funds sold, Fair value | 3,028 | 3,029 | 3,028 | |
Investment securities available for sale, Fair value | 0 | 0 | 0 | |
Loans, net, Fair value | 0 | 0 | 0 | |
Premises and equipment held for sale, Fair Value | ' | ' | 0 | |
Accrued interest receivable, Fair value | 1,753 | 0 | 0 | |
Stock in the FHLB, Fair value | 0 | 0 | 0 | |
Other non-marketable securities, Fair value | 0 | 0 | 0 | |
Financial liabilities: | ' | ' | ' | |
Deposits, Fair Value | 0 | 0 | 0 | |
Short term Debt, Fair value | 0 | 0 | 0 | |
Long term Debt, Fair value | 0 | 0 | 0 | |
Accrued interest payable, Fair value | 0 | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | ' | ' | ' | |
Financial assets: | ' | ' | ' | |
Cash and due from banks, Fair value | 0 | 0 | 0 | |
Interest-earning deposits in other banks, Fair value | 0 | 0 | 0 | |
Federal funds sold, Fair value | 0 | 0 | 0 | |
Investment securities available for sale, Fair value | 86,476 | 81,491 | 67,854 | |
Loans, net, Fair value | 0 | 0 | 0 | |
Premises and equipment held for sale, Fair Value | ' | ' | 0 | |
Accrued interest receivable, Fair value | 0 | 0 | 0 | |
Stock in the FHLB, Fair value | 0 | 0 | 0 | |
Other non-marketable securities, Fair value | 0 | 0 | 0 | |
Financial liabilities: | ' | ' | ' | |
Deposits, Fair Value | 465,264 | 507,478 | 509,454 | |
Short term Debt, Fair value | 14,207 | 17,848 | 21,877 | |
Long term Debt, Fair value | 7,750 | 8,451 | 9,661 | |
Accrued interest payable, Fair value | 0 | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | ' | ' | ' | |
Financial assets: | ' | ' | ' | |
Cash and due from banks, Fair value | 0 | 0 | 0 | |
Interest-earning deposits in other banks, Fair value | 0 | 0 | 0 | |
Federal funds sold, Fair value | 0 | 0 | 0 | |
Investment securities available for sale, Fair value | 0 | 0 | 0 | |
Loans, net, Fair value | 356,977 | 377,591 | 424,851 | |
Premises and equipment held for sale, Fair Value | ' | ' | 1,113 | |
Accrued interest receivable, Fair value | 0 | 1,636 | 2,003 | |
Stock in the FHLB, Fair value | 796 | 973 | 1,248 | |
Other non-marketable securities, Fair value | 1,040 | 1,105 | 1,080 | |
Financial liabilities: | ' | ' | ' | |
Deposits, Fair Value | 0 | 0 | 0 | |
Short term Debt, Fair value | 0 | 0 | 0 | |
Long term Debt, Fair value | 0 | 0 | 0 | |
Accrued interest payable, Fair value | $235 | $281 | $330 | |
[1] | Derived from audited consolidated financial statements. |
INVESTMENT_SECURITIES_Details
INVESTMENT SECURITIES (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Securities available for sale: | ' | ' | ' | |
Amortized cost | $86,145 | $79,715 | $65,763 | |
Gross unrealized gains | 1,172 | 1,851 | 2,109 | |
Gross Unrealized Losses | -841 | -75 | -18 | |
Fair value | 86,476 | 81,491 | [1] | 67,854 |
Amortized cost Within 1 year | ' | 10,820 | ' | |
Amortized cost After 1 year but within 5 years | ' | 46,489 | ' | |
Amortized cost After 5 years but within 10 years | ' | 14,173 | ' | |
Amortized cost After 10 years | ' | 8,233 | ' | |
Fair value Within 1 year | ' | 10,963 | ' | |
Fair value After 1 year but within 5 years | ' | 47,878 | ' | |
Fair value After 5 years but within 10 years | ' | 14,245 | ' | |
Fair value After 10 years | ' | 8,405 | ' | |
US Government Agencies Debt Securities [Member] | ' | ' | ' | |
Securities available for sale: | ' | ' | ' | |
Amortized cost | ' | 36,951 | 26,085 | |
Gross unrealized gains | ' | 248 | 327 | |
Gross Unrealized Losses | ' | -45 | 0 | |
Fair value | ' | 37,154 | 26,412 | |
Amortized cost Within 1 year | 10,580 | 9,385 | ' | |
Amortized cost After 1 year but within 5 years | 9,819 | 16,947 | ' | |
Amortized cost After 5 years but within 10 years | 6,000 | 6,003 | ' | |
Amortized cost After 10 years | 11,391 | 4,616 | ' | |
Gross unrealized gains Within 1 year | 47 | 75 | ' | |
Gross unrealized gains After 1 year but within 5 years | 26 | 100 | ' | |
Gross unrealized gains After 5 years but within 10 years | 0 | 0 | ' | |
Gross unrealized gains After 10 years | 14 | 73 | ' | |
Gross unrealized losses Within 1 year | 0 | 0 | ' | |
Gross unrealized losses After 1 year but within 5 years | 0 | 0 | ' | |
Gross unrealized losses After 5 years but within 10 years | -477 | -45 | ' | |
Gross unrealized losses After 10 years | -42 | 0 | ' | |
Fair value Within 1 year | 10,627 | 9,460 | ' | |
Fair value After 1 year but within 5 years | 9,845 | 17,047 | ' | |
Fair value After 5 years but within 10 years | 5,523 | 5,958 | ' | |
Fair value After 10 years | 11,363 | 4,689 | ' | |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ' | ' | ' | |
Securities available for sale: | ' | ' | ' | |
Amortized cost | ' | 34,794 | 33,871 | |
Gross unrealized gains | ' | 1,189 | 1,316 | |
Gross Unrealized Losses | ' | -29 | -18 | |
Fair value | ' | 35,954 | 35,169 | |
Amortized cost Within 1 year | 212 | 1,085 | ' | |
Amortized cost After 1 year but within 5 years | 33,417 | 27,188 | ' | |
Amortized cost After 5 years but within 10 years | 6,740 | 4,505 | ' | |
Amortized cost After 10 years | ' | 2,016 | ' | |
Gross unrealized gains Within 1 year | 12 | 68 | ' | |
Gross unrealized gains After 1 year but within 5 years | 781 | 1,122 | ' | |
Gross unrealized gains After 5 years but within 10 years | 0 | 0 | ' | |
Gross unrealized gains After 10 years | ' | 0 | ' | |
Gross unrealized losses Within 1 year | 0 | 0 | ' | |
Gross unrealized losses After 1 year but within 5 years | -31 | -20 | ' | |
Gross unrealized losses After 5 years but within 10 years | -182 | -6 | ' | |
Gross unrealized losses After 10 years | ' | -4 | ' | |
Fair value Within 1 year | 224 | 1,152 | ' | |
Fair value After 1 year but within 5 years | 34,167 | 28,290 | ' | |
Fair value After 5 years but within 10 years | 6,558 | 4,500 | ' | |
Fair value After 10 years | ' | 2,012 | ' | |
Municipal Bonds [Member] | ' | ' | ' | |
Securities available for sale: | ' | ' | ' | |
Amortized cost | ' | 7,970 | 5,807 | |
Gross unrealized gains | ' | 414 | 466 | |
Gross Unrealized Losses | ' | -1 | 0 | |
Fair value | ' | 8,383 | 6,273 | |
Amortized cost Within 1 year | 100 | 350 | ' | |
Amortized cost After 1 year but within 5 years | 3,039 | 2,354 | ' | |
Amortized cost After 5 years but within 10 years | 3,320 | 3,665 | ' | |
Amortized cost After 10 years | 1,527 | 1,601 | ' | |
Gross unrealized gains Within 1 year | 1 | 1 | ' | |
Gross unrealized gains After 1 year but within 5 years | 194 | 187 | ' | |
Gross unrealized gains After 5 years but within 10 years | 36 | 122 | ' | |
Gross unrealized gains After 10 years | 61 | 103 | ' | |
Gross unrealized losses Within 1 year | 0 | 0 | ' | |
Gross unrealized losses After 1 year but within 5 years | 0 | 0 | ' | |
Gross unrealized losses After 5 years but within 10 years | -88 | 0 | ' | |
Gross unrealized losses After 10 years | -21 | 0 | ' | |
Fair value Within 1 year | 101 | 351 | ' | |
Fair value After 1 year but within 5 years | 3,233 | 2,541 | ' | |
Fair value After 5 years but within 10 years | 3,268 | 3,787 | ' | |
Fair value After 10 years | $1,567 | $1,704 | ' | |
[1] | Derived from audited consolidated financial statements. |
INVESTMENT_SECURITIES_Details_
INVESTMENT SECURITIES (Details 1) (USD $) | 9 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Securities available for sale: | ' | ' | ' |
Less Than 12 Months Fair value | ' | $16,922 | $7,207 |
Less than 12 Months Unrealized losses | ' | 75 | 18 |
12 Months or More Fair value | ' | 0 | 0 |
12 Months or More Unrealized losses | ' | 0 | 0 |
Total Fair value | ' | 16,922 | 7,207 |
Total Unrealized losses | ' | 75 | 18 |
US Government Agencies Debt Securities [Member] | ' | ' | ' |
Securities available for sale: | ' | ' | ' |
Less Than 12 Months Fair value | 9,069 | 5,959 | ' |
Less than 12 Months Unrealized losses | 519 | 45 | ' |
12 Months or More Fair value | 0 | 0 | ' |
12 Months or More Unrealized losses | 0 | 0 | ' |
Total Fair value | 9,069 | 5,959 | ' |
Total Unrealized losses | 519 | 45 | ' |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ' | ' | ' |
Securities available for sale: | ' | ' | ' |
Less Than 12 Months Fair value | 11,537 | 10,286 | 7,207 |
Less than 12 Months Unrealized losses | 213 | 30 | 18 |
12 Months or More Fair value | 0 | 0 | 0 |
12 Months or More Unrealized losses | 0 | 0 | 0 |
Total Fair value | 11,537 | 10,286 | 7,207 |
Total Unrealized losses | 213 | 30 | 18 |
Municipal Bonds [Member] | ' | ' | ' |
Securities available for sale: | ' | ' | ' |
Less Than 12 Months Fair value | 2,767 | 677 | ' |
Less than 12 Months Unrealized losses | 109 | 1 | ' |
12 Months or More Fair value | 0 | 0 | ' |
12 Months or More Unrealized losses | 0 | 0 | ' |
Total Fair value | 2,767 | 677 | ' |
Total Unrealized losses | 109 | 1 | ' |
Temporarily Impaired Securities [Member] | ' | ' | ' |
Securities available for sale: | ' | ' | ' |
Less Than 12 Months Fair value | 23,373 | 16,245 | ' |
Less than 12 Months Unrealized losses | 841 | 75 | ' |
12 Months or More Fair value | 0 | 0 | ' |
12 Months or More Unrealized losses | 0 | 0 | ' |
Total Fair value | 23,373 | 16,245 | ' |
Total Unrealized losses | $841 | $75 | ' |
INVESTMENT_SECURITIES_Details_1
INVESTMENT SECURITIES (Details Textual) (USD $) | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | ||
Available-for-sale Securities, Gross Unrealized Gain (Loss) | $331,000 | $1,800,000 | $2,100,000 | ' | ' | ' | |
Deferred Income Taxes and Other Liabilities, Noncurrent | 208,000 | 699,000 | 806,000 | ' | ' | ' | |
Trading Securities, Description | 'three municipal bonds had unrealized losses for less than twelve months totaling $841,000 at September 30, 2013. | 'Three U.S. government agencies GSE’s and seven mortgage-backed securities GSE’s had unrealized losses for less than twelve months totaling $75,000 at December 31, 2012. | ' | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Total | 123,000 | 1,078,000 | [1] | 1,285,000 | 191,000 | 1,312,000 | 1,235,000 |
Available-for-sale Securities, Gross Realized Gains | ' | 10,000 | 24,000 | ' | ' | ' | |
Available-for-sale Securities, Gross Realized Losses | ' | 233,000 | 137,000 | ' | ' | ' | |
Available-for-sale Securities, Gross Realized Gains (Losses), Sale Proceeds | ' | 12,800,000 | 11,300,000 | ' | ' | ' | |
US Government Securities, at Carrying Value | ' | $39,500,000 | $41,800,000 | ' | ' | ' | |
[1] | Derived from audited consolidated financial statements. |
LOANS_Details
LOANS (Details) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
In Thousands, unless otherwise specified | ||||||||
Gross loans | $349,631 | ' | $368,344 | ' | ' | $417,971 | ' | |
Less deferred loan origination fees, net | -544 | ' | -452 | ' | ' | -347 | ' | |
Loans | 349,087 | ' | 367,892 | [1] | 386,522 | ' | 417,624 | ' |
Allowance for loan losses | -6,858 | -7,218 | -7,897 | [1] | -8,588 | -8,510 | -10,034 | -10,015 |
Total loans, net | 342,229 | ' | 359,995 | [1] | ' | ' | 407,590 | ' |
Percentage of Deferred Origination Fees | -0.16% | ' | -0.12% | ' | ' | -0.08% | ' | |
Percent of Loans | 100.00% | ' | 100.00% | ' | ' | 100.00% | ' | |
Family Residential Real Estate 1 to 4 [Member] | ' | ' | ' | ' | ' | ' | ' | |
Loans | 34,157 | ' | 41,017 | 47,076 | ' | 52,182 | ' | |
Allowance for loan losses | -781 | -1,045 | -1,070 | -1,176 | -1,314 | -1,661 | -1,900 | |
Percent of Loans | 9.78% | ' | 11.14% | ' | ' | 12.49% | ' | |
Commercial Real Estate [Member] | ' | ' | ' | ' | ' | ' | ' | |
Loans | 174,746 | ' | 186,949 | 189,598 | ' | 192,047 | ' | |
Allowance for loan losses | -4,621 | -4,585 | -4,946 | -5,106 | -5,228 | -4,771 | -3,111 | |
Percent of Loans | 50.06% | ' | 50.82% | ' | ' | 45.98% | ' | |
Multi Family Residential Real Estate [Member] | ' | ' | ' | ' | ' | ' | ' | |
Loans | 19,145 | ' | 19,524 | 21,296 | ' | 23,377 | ' | |
Allowance for loan losses | -86 | -58 | -106 | -131 | -123 | -127 | -640 | |
Percent of Loans | 5.48% | ' | 5.31% | ' | ' | 5.60% | ' | |
Construction Loans Real Estate [Member] | ' | ' | ' | ' | ' | ' | ' | |
Loans | 51,950 | ' | 48,220 | 51,443 | ' | 70,846 | ' | |
Allowance for loan losses | -546 | -608 | -798 | -962 | -482 | -1,540 | -349 | |
Percent of Loans | 14.88% | ' | 13.11% | ' | ' | 16.96% | ' | |
Home Equity Line of Credit [Member] | ' | ' | ' | ' | ' | ' | ' | |
Loans | 32,206 | ' | 34,603 | 34,988 | ' | 38,702 | ' | |
Allowance for loan losses | -557 | -610 | -627 | -715 | -897 | -1,122 | -1,433 | |
Percent of Loans | 9.23% | ' | 9.41% | ' | ' | 9.27% | ' | |
Real Estate [Member] | ' | ' | ' | ' | ' | ' | ' | |
Loans | 312,204 | ' | 330,313 | ' | ' | 377,154 | ' | |
Percent of Loans | 89.43% | ' | 89.79% | ' | ' | 90.30% | ' | |
Commercial and Industrial Other [Member] | ' | ' | ' | ' | ' | ' | ' | |
Loans | 29,233 | ' | 29,297 | 33,175 | ' | 33,146 | ' | |
Allowance for loan losses | -204 | -250 | -278 | -423 | -386 | -719 | -1,052 | |
Percent of Loans | 8.37% | ' | 7.96% | ' | ' | 7.94% | ' | |
Loans to Individuals [Member] | ' | ' | ' | ' | ' | ' | ' | |
Loans | 8,047 | ' | 8,615 | ' | ' | 7,583 | ' | |
Percent of Loans | 2.31% | ' | 2.34% | ' | ' | 1.82% | ' | |
Overdrafts [Member] | ' | ' | ' | ' | ' | ' | ' | |
Loans | 147 | ' | 119 | ' | ' | 88 | ' | |
Percent of Loans | 0.04% | ' | 0.03% | ' | ' | 0.02% | ' | |
Other Loans [Member] | ' | ' | ' | ' | ' | ' | ' | |
Loans | $37,427 | ' | $38,031 | ' | ' | $40,817 | ' | |
Percent of Loans | 10.72% | ' | 10.33% | ' | ' | 9.78% | ' | |
[1] | Derived from audited consolidated financial statements. |
LOANS_Details_1
LOANS (Details 1) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2012 |
Balance at January 1, 2012 | $14,262 |
Exposure of directors/executive officers added in 2012 | 92 |
Borrowings | 3,227 |
Directors, resigned or retired from board in 2012 | -4,066 |
Loan repayments | -10,699 |
Balance at December 31, 2012 | $2,816 |
LOANS_Details_2
LOANS (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | |
In Thousands, unless otherwise specified | |||||
30+ Days Past Due | $566 | $1,179 | ' | $4,247 | |
Non-Accrual Loans | 8,141 | 10,126 | ' | 17,623 | |
Total Past Due | 8,707 | 11,305 | ' | 21,870 | |
Current | 340,924 | 357,039 | ' | 396,101 | |
Less deferred loan origination fees, net | -544 | -452 | ' | -347 | |
Loans | 349,087 | 367,892 | [1] | 386,522 | 417,624 |
Commercial and Industrial [Member] | ' | ' | ' | ' | |
30+ Days Past Due | 0 | 215 | ' | 48 | |
Non-Accrual Loans | 137 | 319 | ' | 171 | |
Total Past Due | 137 | 534 | ' | 219 | |
Current | 29,096 | 28,763 | ' | 32,927 | |
Loans | 29,233 | 29,297 | 33,175 | 33,146 | |
Construction Loans Real Estate [Member] | ' | ' | ' | ' | |
30+ Days Past Due | 115 | 138 | ' | 568 | |
Non-Accrual Loans | 1,023 | 2,298 | ' | 4,072 | |
Total Past Due | 1,138 | 2,436 | ' | 4,640 | |
Current | 50,812 | 45,784 | ' | 66,206 | |
Loans | 51,950 | 48,220 | 51,443 | 70,846 | |
Multi Family Residential Real Estate [Member] | ' | ' | ' | ' | |
30+ Days Past Due | 0 | 0 | ' | 1,540 | |
Non-Accrual Loans | 1,004 | 1,482 | ' | 0 | |
Total Past Due | 1,004 | 1,482 | ' | 1,540 | |
Current | 18,141 | 18,042 | ' | 21,837 | |
Loans | 19,145 | 19,524 | 21,296 | 23,377 | |
Commercial Real Estate [Member] | ' | ' | ' | ' | |
30+ Days Past Due | 0 | 241 | ' | 1,013 | |
Non-Accrual Loans | 4,350 | 4,373 | ' | 10,425 | |
Total Past Due | 4,350 | 4,614 | ' | 11,438 | |
Current | 170,396 | 182,335 | ' | 180,609 | |
Loans | 174,746 | 186,949 | 189,598 | 192,047 | |
Loans to Individuals and Overdrafts [Member] | ' | ' | ' | ' | |
30+ Days Past Due | 22 | 19 | ' | 10 | |
Non-Accrual Loans | 7 | 11 | ' | 176 | |
Total Past Due | 29 | 30 | ' | 186 | |
Current | 8,165 | 8,704 | ' | 7,485 | |
Loans | 8,194 | 8,734 | 8,946 | 7,671 | |
Family Residential Real Estate 1 to 4 [Member] | ' | ' | ' | ' | |
30+ Days Past Due | 369 | 536 | ' | 735 | |
Non-Accrual Loans | 847 | 1,061 | ' | 1,875 | |
Total Past Due | 1,216 | 1,597 | ' | 2,610 | |
Current | 32,941 | 39,420 | ' | 49,572 | |
Loans | 34,157 | 41,017 | 47,076 | 52,182 | |
Home Equity Line of Credit [Member] | ' | ' | ' | ' | |
30+ Days Past Due | 60 | 30 | ' | 333 | |
Non-Accrual Loans | 773 | 582 | ' | 904 | |
Total Past Due | 833 | 612 | ' | 1,237 | |
Current | 31,373 | 33,991 | ' | 37,465 | |
Loans | $32,206 | $34,603 | $34,988 | $38,702 | |
[1] | Derived from audited consolidated financial statements. |
LOANS_Details_3
LOANS (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 |
With no related allowance, Recorded Investment | $12,605 | ' | $12,605 | ' | $13,719 | $15,271 |
With no related allowance, Contractual Unpaid Principal Balance | 14,846 | ' | 14,846 | ' | 15,496 | 17,586 |
With no related allowance, Average Recorded Investment | 13,911 | 18,698 | 13,192 | 17,912 | 17,072 | 13,086 |
With no related allowance, Interest Income Recognized on Impaired Loans | 135 | 40 | 176 | 310 | 364 | 345 |
With an related allowance, Recorded Investment | 7,063 | ' | 7,063 | ' | 6,002 | 9,564 |
With an related allowance, Contractual Unpaid Principal Balance | 7,167 | ' | 7,167 | ' | 6,972 | 11,239 |
Related Allowance | 605 | ' | 605 | ' | 909 | 1,515 |
With an related allowance, Average Recorded Investment | 5,947 | 5,027 | 6,286 | 6,308 | 6,247 | 8,006 |
With an related allowance, Interest Income Recognized on Impaired Loans | 157 | 115 | 225 | 160 | 376 | 121 |
Recorded Investment Total | 19,668 | ' | 19,668 | ' | 19,721 | 24,835 |
Contractual Unpaid Principal Balance Total | 22,013 | ' | 22,013 | ' | 22,468 | 28,825 |
Related Allowance Total | 605 | ' | 605 | ' | 909 | 1,515 |
Average Recorded Investment Total | 19,858 | 23,725 | 19,478 | 24,220 | 23,319 | 21,092 |
Interest Income Recognized on impaired Loans Total | 230 | 155 | 401 | 470 | 740 | 466 |
Residential Real Estate [Member] | ' | ' | ' | ' | ' | ' |
Recorded Investment Total | 5,039 | ' | 5,039 | ' | 4,471 | 3,974 |
Contractual Unpaid Principal Balance Total | 5,638 | ' | 5,638 | ' | 4,921 | 4,962 |
Related Allowance Total | 192 | ' | 192 | ' | 200 | 328 |
Average Recorded Investment Total | 5,082 | 4,265 | 4,650 | 4,132 | 4,200 | 4,472 |
Interest Income Recognized on impaired Loans Total | 107 | 89 | 148 | 134 | 195 | 78 |
Commercial Loan [Member] | ' | ' | ' | ' | ' | ' |
Recorded Investment Total | 14,618 | ' | 14,618 | ' | 15,226 | 20,628 |
Contractual Unpaid Principal Balance Total | 16,364 | ' | 16,364 | ' | 17,513 | 23,613 |
Related Allowance Total | 410 | ' | 410 | ' | 705 | 1,172 |
Average Recorded Investment Total | 14,763 | 19,330 | 14,809 | 19,906 | 18,969 | 16,343 |
Interest Income Recognized on impaired Loans Total | 123 | 64 | 253 | 334 | 544 | 383 |
Consumer Loan [Member] | ' | ' | ' | ' | ' | ' |
Recorded Investment Total | 11 | ' | 11 | ' | 24 | 233 |
Contractual Unpaid Principal Balance Total | 11 | ' | 11 | ' | 34 | 250 |
Related Allowance Total | 2 | ' | 2 | ' | 4 | 15 |
Average Recorded Investment Total | 13 | 130 | 19 | 182 | 150 | 277 |
Interest Income Recognized on impaired Loans Total | 0 | 2 | 0 | 2 | 1 | 5 |
Commercial and Industrial [Member] | ' | ' | ' | ' | ' | ' |
With no related allowance, Recorded Investment | 628 | ' | 628 | ' | 545 | 478 |
With no related allowance, Contractual Unpaid Principal Balance | 822 | ' | 822 | ' | 810 | 808 |
With no related allowance, Average Recorded Investment | 644 | 503 | 543 | 483 | 496 | 290 |
With no related allowance, Interest Income Recognized on Impaired Loans | 27 | 4 | 31 | 17 | 20 | 25 |
With an related allowance, Recorded Investment | 14 | ' | 14 | ' | 65 | 0 |
With an related allowance, Contractual Unpaid Principal Balance | 14 | ' | 14 | ' | 66 | 0 |
Related Allowance | 7 | ' | 7 | ' | 51 | 0 |
With an related allowance, Average Recorded Investment | 7 | 108 | 60 | 84 | 80 | 272 |
With an related allowance, Interest Income Recognized on Impaired Loans | 0 | 10 | 0 | 10 | 5 | 0 |
Construction Loans Real Estate [Member] | ' | ' | ' | ' | ' | ' |
With no related allowance, Recorded Investment | 1,885 | ' | 1,885 | ' | 2,376 | 1,011 |
With no related allowance, Contractual Unpaid Principal Balance | 2,137 | ' | 2,137 | ' | 2,940 | 1,166 |
With no related allowance, Average Recorded Investment | 1,787 | 2,550 | 2,006 | 2,017 | 2,088 | 1,539 |
With no related allowance, Interest Income Recognized on Impaired Loans | 5 | 10 | 8 | 16 | 20 | 23 |
With an related allowance, Recorded Investment | 462 | ' | 462 | ' | 266 | 3,365 |
With an related allowance, Contractual Unpaid Principal Balance | 540 | ' | 540 | ' | 266 | 4,085 |
Related Allowance | 43 | ' | 43 | ' | 64 | 674 |
With an related allowance, Average Recorded Investment | 580 | 733 | 451 | 1,631 | 1,358 | 1,269 |
With an related allowance, Interest Income Recognized on Impaired Loans | 10 | 0 | 12 | 5 | 6 | 4 |
Commercial Real Estate [Member] | ' | ' | ' | ' | ' | ' |
With no related allowance, Recorded Investment | 3,576 | ' | 3,576 | ' | 5,987 | 9,195 |
With no related allowance, Contractual Unpaid Principal Balance | 4,798 | ' | 4,798 | ' | 6,475 | 10,085 |
With no related allowance, Average Recorded Investment | 5,494 | 11,411 | 5,297 | 10,989 | 9,988 | 7,889 |
With no related allowance, Interest Income Recognized on Impaired Loans | 0 | 0 | 0 | 233 | 195 | 158 |
With an related allowance, Recorded Investment | 5,658 | ' | 5,658 | ' | 4,505 | 5,039 |
With an related allowance, Contractual Unpaid Principal Balance | 5,658 | ' | 5,658 | ' | 5,474 | 5,929 |
Related Allowance | 361 | ' | 361 | ' | 581 | 498 |
With an related allowance, Average Recorded Investment | 3,850 | 2,492 | 4,527 | 3,165 | 3,433 | 4,043 |
With an related allowance, Interest Income Recognized on Impaired Loans | 143 | 40 | 202 | 53 | 298 | 71 |
Loans to Individuals and Overdrafts [Member] | ' | ' | ' | ' | ' | ' |
With no related allowance, Recorded Investment | 1 | ' | 1 | ' | 3 | 217 |
With no related allowance, Contractual Unpaid Principal Balance | 1 | ' | 1 | ' | 13 | 234 |
With no related allowance, Average Recorded Investment | 1 | 108 | 2 | 153 | 123 | 175 |
With no related allowance, Interest Income Recognized on Impaired Loans | 0 | 0 | 0 | 0 | 0 | 4 |
With an related allowance, Recorded Investment | 10 | ' | 10 | ' | 21 | 16 |
With an related allowance, Contractual Unpaid Principal Balance | 10 | ' | 10 | ' | 21 | 16 |
Related Allowance | 2 | ' | 2 | ' | 4 | 15 |
With an related allowance, Average Recorded Investment | 12 | 22 | 17 | 29 | 27 | 102 |
With an related allowance, Interest Income Recognized on Impaired Loans | 0 | 2 | 0 | 2 | 1 | 1 |
Multi Family Residential Real Estate [Member] | ' | ' | ' | ' | ' | ' |
With no related allowance, Recorded Investment | 2,395 | ' | 2,395 | ' | 1,442 | 1,540 |
With no related allowance, Contractual Unpaid Principal Balance | 2,395 | ' | 2,395 | ' | 1,442 | 1,540 |
With no related allowance, Average Recorded Investment | 2,401 | 1,492 | 1,915 | 1,516 | 1,501 | 1,041 |
With no related allowance, Interest Income Recognized on Impaired Loans | 0 | 0 | 0 | 0 | 0 | 102 |
With an related allowance, Recorded Investment | 0 | ' | 0 | ' | 40 | 0 |
With an related allowance, Contractual Unpaid Principal Balance | 0 | ' | 0 | ' | 40 | 0 |
Related Allowance | 0 | ' | 0 | ' | 9 | 0 |
With an related allowance, Average Recorded Investment | 0 | 41 | 10 | 21 | 25 | 0 |
With an related allowance, Interest Income Recognized on Impaired Loans | 0 | 0 | 0 | 0 | 0 | 0 |
Family Residential Real Estate 1 to 4 [Member] | ' | ' | ' | ' | ' | ' |
With no related allowance, Recorded Investment | 3,345 | ' | 3,345 | ' | 2,725 | 2,100 |
With no related allowance, Contractual Unpaid Principal Balance | 3,686 | ' | 3,686 | ' | 2,995 | 2,929 |
With no related allowance, Average Recorded Investment | 2,955 | 1,616 | 2,877 | 1,800 | 1,985 | 1,747 |
With no related allowance, Interest Income Recognized on Impaired Loans | 100 | 26 | 133 | 39 | 123 | 33 |
With an related allowance, Recorded Investment | 765 | ' | 765 | ' | 926 | 736 |
With an related allowance, Contractual Unpaid Principal Balance | 764 | ' | 764 | ' | 926 | 774 |
Related Allowance | 75 | ' | 75 | ' | 43 | 170 |
With an related allowance, Average Recorded Investment | 1,146 | 1,503 | 967 | 1,129 | 1,089 | 2,000 |
With an related allowance, Interest Income Recognized on Impaired Loans | 1 | 63 | 8 | 87 | 56 | 35 |
Home Equity Line of Credit [Member] | ' | ' | ' | ' | ' | ' |
With no related allowance, Recorded Investment | 775 | ' | 775 | ' | 641 | 730 |
With no related allowance, Contractual Unpaid Principal Balance | 1,007 | ' | 1,007 | ' | 821 | 824 |
With no related allowance, Average Recorded Investment | 629 | 1,018 | 552 | 954 | 891 | 405 |
With no related allowance, Interest Income Recognized on Impaired Loans | 3 | 0 | 4 | 5 | 6 | 0 |
With an related allowance, Recorded Investment | 154 | ' | 154 | ' | 179 | 408 |
With an related allowance, Contractual Unpaid Principal Balance | 181 | ' | 181 | ' | 179 | 435 |
Related Allowance | 117 | ' | 117 | ' | 157 | 158 |
With an related allowance, Average Recorded Investment | 352 | 128 | 254 | 249 | 235 | 320 |
With an related allowance, Interest Income Recognized on Impaired Loans | $3 | $0 | $3 | $3 | $10 | $10 |
LOANS_Details_4
LOANS (Details 4) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 |
Number | Number | Number | Number | Number | Number | |
Number of loans | 6 | 4 | 19 | 17 | 18 | 21 |
Pre-Modification Outstanding Recorded Investment | $1,290 | $1,703 | $5,334 | $4,408 | $4,470 | $11,333 |
Post-Modification Outstanding Recorded Investment | 1,276 | 1,690 | 5,277 | 4,222 | 4,009 | 10,998 |
Number of TDRs loans | 0 | 4 | 6 | 17 | 8 | 4 |
Recorded investment | 0 | 1,689 | 496 | 4,221 | 2,587 | 3,488 |
Commercial and Inustrial Below Market Interest Rate [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | 0 | 0 | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | 0 | 0 | 0 | 0 | 0 | 0 |
Post-Modification Outstanding Recorded Investment | 0 | 0 | 0 | 0 | 0 | 0 |
Number of TDRs loans | 0 | 0 | 0 | 0 | 0 | 0 |
Recorded investment | 0 | 0 | 0 | 0 | 0 | 0 |
Construction Below Market Interest Rate [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | 0 | 0 | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | 0 | 0 | 0 | 0 | 0 | 0 |
Post-Modification Outstanding Recorded Investment | 0 | 0 | 0 | 0 | 0 | 0 |
Number of TDRs loans | 0 | 0 | 0 | 0 | 0 | 0 |
Recorded investment | 0 | 0 | 0 | 0 | 0 | 0 |
Commercial Real Estate Below Market Interest Rate [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | 0 | 0 | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | 0 | 0 | 0 | 0 | 0 | 0 |
Post-Modification Outstanding Recorded Investment | 0 | 0 | 0 | 0 | 0 | 0 |
Number of TDRs loans | 0 | 0 | 0 | 0 | 0 | 0 |
Recorded investment | 0 | 0 | 0 | 0 | 0 | 0 |
Loans to Individuals and Overdrafts Below Market Interest Rate [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | 0 | 0 | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | 0 | 0 | 0 | 0 | 0 | 0 |
Post-Modification Outstanding Recorded Investment | 0 | 0 | 0 | 0 | 0 | 0 |
Number of TDRs loans | 0 | 0 | 0 | 0 | 0 | 0 |
Recorded investment | 0 | 0 | 0 | 0 | 0 | 0 |
Residential 1 to 4 Family Below Market Interest Rate [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | 3 | 0 | 3 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | 276 | 0 | 276 | 0 | 0 | 0 |
Post-Modification Outstanding Recorded Investment | 275 | 0 | 275 | 0 | 0 | 0 |
Number of TDRs loans | 0 | 0 | 0 | 0 | 0 | 0 |
Recorded investment | 0 | 0 | 0 | 0 | 0 | 0 |
Multi Family Residential Below Market Interest Rate [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | 0 | 0 | 0 | 0 | ' | ' |
Pre-Modification Outstanding Recorded Investment | 0 | 0 | 0 | 0 | ' | ' |
Post-Modification Outstanding Recorded Investment | 0 | 0 | 0 | 0 | ' | ' |
Number of TDRs loans | 0 | 0 | 0 | 0 | ' | ' |
Recorded investment | 0 | 0 | 0 | 0 | ' | ' |
Home Equity Line of Credit Below Market Interest Rate [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | 0 | 0 | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | 0 | 0 | 0 | 0 | 0 | 0 |
Post-Modification Outstanding Recorded Investment | 0 | 0 | 0 | 0 | 0 | 0 |
Number of TDRs loans | 0 | 0 | 0 | 0 | 0 | 0 |
Recorded investment | 0 | 0 | 0 | 0 | 0 | 0 |
Below Market Interest Rate [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | 3 | 0 | 3 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | 276 | 0 | 276 | 0 | 0 | 0 |
Post-Modification Outstanding Recorded Investment | 275 | 0 | 275 | 0 | 0 | 0 |
Number of TDRs loans | 0 | 0 | 0 | 0 | 0 | 0 |
Recorded investment | 0 | 0 | 0 | 0 | 0 | 0 |
Commercial and Inustrial Extended Payment Term [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | 0 | 0 | 4 | 1 | 1 | 1 |
Pre-Modification Outstanding Recorded Investment | 0 | 0 | 537 | 116 | 116 | 211 |
Post-Modification Outstanding Recorded Investment | 0 | 0 | 522 | 114 | 114 | 211 |
Number of TDRs loans | 0 | 0 | 2 | 1 | 1 | 1 |
Recorded investment | 0 | 0 | 156 | 114 | 114 | 211 |
Construction Extended Payment Term [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | 0 | 0 | 2 | 2 | 2 | 3 |
Pre-Modification Outstanding Recorded Investment | 0 | 0 | 134 | 294 | 294 | 3,226 |
Post-Modification Outstanding Recorded Investment | 0 | 0 | 133 | 286 | 284 | 3,226 |
Number of TDRs loans | 0 | 0 | 2 | 2 | 0 | 1 |
Recorded investment | 0 | 0 | 132 | 286 | 0 | 1,170 |
Commercial Real Estate Extended Payment Term [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | 0 | 0 | 1 | 4 | 4 | 11 |
Pre-Modification Outstanding Recorded Investment | 0 | 0 | 645 | 1,281 | 1,281 | 6,502 |
Post-Modification Outstanding Recorded Investment | 0 | 0 | 645 | 1,128 | 863 | 6,473 |
Number of TDRs loans | 0 | 0 | ' | 4 | 5 | 1 |
Recorded investment | 0 | 0 | ' | 1,128 | 2,377 | 1,472 |
Loans to Individuals and Overdrafts Extended Payment Term [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | 0 | 0 | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | 0 | 0 | 0 | 0 | 0 | 0 |
Post-Modification Outstanding Recorded Investment | 0 | 0 | 0 | 0 | 0 | 0 |
Number of TDRs loans | 0 | 0 | ' | 0 | 0 | 0 |
Recorded investment | 0 | 0 | ' | 0 | 0 | 0 |
Residential 1 to 4 Family Extended Payment Term [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | 2 | 2 | 4 | 2 | 2 | 5 |
Pre-Modification Outstanding Recorded Investment | 945 | 100 | 1,084 | 100 | 100 | 456 |
Post-Modification Outstanding Recorded Investment | 933 | 97 | 1,071 | 97 | 96 | 453 |
Number of TDRs loans | 0 | 2 | 1 | 2 | 2 | 0 |
Recorded investment | 0 | 96 | 47 | 96 | 96 | 0 |
Multi Family Residential Extended Payment Term [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | 0 | 1 | 0 | 1 | 1 | ' |
Pre-Modification Outstanding Recorded Investment | 0 | 1,524 | 0 | 1,524 | 1,524 | ' |
Post-Modification Outstanding Recorded Investment | 0 | 1,514 | 0 | 1,515 | 1,514 | ' |
Number of TDRs loans | 0 | 1 | 0 | 1 | 0 | ' |
Recorded investment | 0 | 1,514 | 0 | 1,514 | 0 | ' |
Home Equity Line of Credit Extended Payment Term [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | 0 | 0 | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | 0 | 0 | 0 | 0 | 0 | 0 |
Post-Modification Outstanding Recorded Investment | 0 | 0 | 0 | 0 | 0 | 0 |
Number of TDRs loans | 0 | 0 | ' | 0 | 0 | 0 |
Recorded investment | 0 | 0 | ' | 0 | 0 | 0 |
Extended Payment Term [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | 2 | 3 | 11 | 10 | 10 | 20 |
Pre-Modification Outstanding Recorded Investment | 945 | 1,624 | 2,400 | 3,315 | 3,315 | 10,395 |
Post-Modification Outstanding Recorded Investment | 933 | 1,611 | 2,371 | 3,140 | 2,871 | 10,363 |
Number of TDRs loans | 0 | 3 | 5 | 10 | 8 | 3 |
Recorded investment | 0 | 1,610 | 335 | 3,138 | 2,587 | 2,853 |
Commercial and Inustrial Forgiveness of Principal [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | ' | ' | ' | ' | ' | 0 |
Pre-Modification Outstanding Recorded Investment | ' | ' | ' | ' | ' | 0 |
Post-Modification Outstanding Recorded Investment | ' | ' | ' | ' | ' | 0 |
Number of TDRs loans | 0 | 0 | 0 | 0 | 0 | 0 |
Recorded investment | 0 | 0 | 0 | 0 | 0 | 0 |
Construction Forgiveness of Principal [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | ' | ' | ' | ' | ' | 0 |
Pre-Modification Outstanding Recorded Investment | ' | ' | ' | ' | ' | 0 |
Post-Modification Outstanding Recorded Investment | ' | ' | ' | ' | ' | 0 |
Number of TDRs loans | 0 | 0 | 0 | 0 | 0 | 0 |
Recorded investment | 0 | 0 | 0 | 0 | 0 | 0 |
Commercial Real Estate Forgiveness of Principal [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | ' | ' | ' | ' | ' | 1 |
Pre-Modification Outstanding Recorded Investment | ' | ' | ' | ' | ' | 938 |
Post-Modification Outstanding Recorded Investment | ' | ' | ' | ' | ' | 635 |
Number of TDRs loans | 0 | 0 | 0 | 0 | 0 | 1 |
Recorded investment | 0 | 0 | 0 | 0 | 0 | 635 |
Loans to Individuals and Overdrafts Forgiveness of Principal [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | ' | ' | ' | ' | ' | 0 |
Pre-Modification Outstanding Recorded Investment | ' | ' | ' | ' | ' | 0 |
Post-Modification Outstanding Recorded Investment | ' | ' | ' | ' | ' | 0 |
Number of TDRs loans | 0 | 0 | 0 | 0 | 0 | 0 |
Recorded investment | 0 | 0 | 0 | 0 | 0 | 0 |
Residential 1 to 4 Family Forgiveness of Principal [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | ' | ' | ' | ' | ' | 0 |
Pre-Modification Outstanding Recorded Investment | ' | ' | ' | ' | ' | 0 |
Post-Modification Outstanding Recorded Investment | ' | ' | ' | ' | ' | 0 |
Number of TDRs loans | 0 | 0 | 0 | 0 | 0 | 0 |
Recorded investment | 0 | 0 | 0 | 0 | 0 | 0 |
Multi Family Residential Forgiveness of Principal [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | ' | ' | ' | ' | ' | 0 |
Pre-Modification Outstanding Recorded Investment | ' | ' | ' | ' | ' | 0 |
Post-Modification Outstanding Recorded Investment | ' | ' | ' | ' | ' | 0 |
Number of TDRs loans | 0 | 0 | 0 | 0 | ' | ' |
Recorded investment | 0 | 0 | 0 | 0 | ' | ' |
Home Equity Line of Credit Forgiveness of Principal [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | ' | ' | ' | ' | ' | 0 |
Pre-Modification Outstanding Recorded Investment | ' | ' | ' | ' | ' | 0 |
Post-Modification Outstanding Recorded Investment | ' | ' | ' | ' | ' | 0 |
Number of TDRs loans | 0 | 0 | 0 | 0 | 0 | 0 |
Recorded investment | 0 | 0 | 0 | 0 | 0 | 0 |
Forgiveness of Principal [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | ' | ' | ' | ' | ' | 1 |
Pre-Modification Outstanding Recorded Investment | ' | ' | ' | ' | ' | 938 |
Post-Modification Outstanding Recorded Investment | ' | ' | ' | ' | ' | 635 |
Number of TDRs loans | 0 | 0 | 0 | 0 | 0 | 1 |
Recorded investment | 0 | 0 | 0 | 0 | 0 | 635 |
Commercial and Industrial Other [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | 0 | 0 | 0 | 0 | 0 | ' |
Pre-Modification Outstanding Recorded Investment | 0 | 0 | 0 | 0 | 0 | ' |
Post-Modification Outstanding Recorded Investment | 0 | 0 | 0 | 0 | 0 | ' |
Number of TDRs loans | 0 | 0 | 0 | 0 | 0 | ' |
Recorded investment | 0 | 0 | 0 | 0 | 0 | ' |
Construction Other [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | 1 | 0 | 1 | 0 | 0 | ' |
Pre-Modification Outstanding Recorded Investment | 69 | 0 | 69 | 0 | 0 | ' |
Post-Modification Outstanding Recorded Investment | 68 | 0 | 68 | 0 | 0 | ' |
Number of TDRs loans | 0 | 0 | 0 | 0 | 0 | ' |
Recorded investment | 0 | 0 | 0 | 0 | 0 | ' |
Commercial Real Estate Other [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | 0 | 0 | 2 | 2 | 2 | ' |
Pre-Modification Outstanding Recorded Investment | 0 | 0 | 2,454 | 849 | 849 | ' |
Post-Modification Outstanding Recorded Investment | 0 | 0 | 2,433 | 842 | 837 | ' |
Number of TDRs loans | 0 | 0 | 1 | 2 | 0 | ' |
Recorded investment | 0 | 0 | 161 | 842 | 0 | ' |
Loans to Individuals and Overdrafts Other [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | 0 | 0 | 0 | 0 | 0 | ' |
Pre-Modification Outstanding Recorded Investment | 0 | 0 | 0 | 0 | 0 | ' |
Post-Modification Outstanding Recorded Investment | 0 | 0 | 0 | 0 | 0 | ' |
Number of TDRs loans | 0 | 0 | 0 | 0 | 0 | ' |
Recorded investment | 0 | 0 | 0 | 0 | 0 | ' |
Residential 1 to 4 Family Other [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | 0 | 1 | 2 | 5 | 0 | ' |
Pre-Modification Outstanding Recorded Investment | 0 | 79 | 135 | 244 | 0 | ' |
Post-Modification Outstanding Recorded Investment | 0 | 79 | 130 | 240 | 0 | ' |
Number of TDRs loans | 0 | 1 | 0 | 5 | 0 | ' |
Recorded investment | 0 | 79 | 0 | 241 | 0 | ' |
Multi Family Residential Other [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | 0 | 0 | 0 | 0 | ' | ' |
Pre-Modification Outstanding Recorded Investment | 0 | 0 | 0 | 0 | ' | ' |
Post-Modification Outstanding Recorded Investment | 0 | 0 | 0 | 0 | ' | ' |
Number of TDRs loans | 0 | 0 | 0 | 0 | 0 | ' |
Recorded investment | 0 | 0 | 0 | 0 | 0 | ' |
Home Equity Line of Credit Other [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | 0 | 0 | 0 | 0 | 6 | ' |
Pre-Modification Outstanding Recorded Investment | 0 | 0 | 0 | 0 | 306 | ' |
Post-Modification Outstanding Recorded Investment | 0 | 0 | 0 | 0 | 301 | ' |
Number of TDRs loans | 0 | 0 | 0 | 0 | 0 | ' |
Recorded investment | 0 | 0 | 0 | 0 | 0 | ' |
Other [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | 1 | 1 | 5 | 7 | 8 | ' |
Pre-Modification Outstanding Recorded Investment | 69 | 79 | 2,658 | 1,093 | 1,155 | ' |
Post-Modification Outstanding Recorded Investment | 68 | 79 | 2,631 | 1,082 | 1,138 | ' |
Number of TDRs loans | 0 | 1 | 1 | 7 | 0 | ' |
Recorded investment | $0 | $79 | $161 | $1,083 | $0 | ' |
LOANS_Details_5
LOANS (Details 5) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 |
Number | Number | Number | Number | Number | Number | |
Number of loans | 6 | 4 | 19 | 17 | 18 | 21 |
Foreclosure/Default, Number of loans | ' | ' | ' | ' | 2 | 4 |
Foreclosure/Default, Recorded Investment | ' | ' | ' | ' | $137 | $3,488 |
Paid in Full [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | ' | ' | ' | ' | 0 | 0 |
Recorded Investment | ' | ' | ' | ' | 0 | 0 |
Paying as Restructured [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | ' | ' | ' | ' | 15 | 7 |
Recorded Investment | ' | ' | ' | ' | 3,832 | 1,379 |
Converted to Nonaccrual [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | ' | ' | ' | ' | 1 | 10 |
Recorded Investment | ' | ' | ' | ' | 40 | 6,131 |
Below Market Interest Rate [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | 3 | 0 | 3 | 0 | 0 | 0 |
Foreclosure/Default, Number of loans | ' | ' | ' | ' | 0 | 0 |
Foreclosure/Default, Recorded Investment | ' | ' | ' | ' | 0 | 0 |
Below Market Interest Rate [Member] | Paid in Full [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | ' | ' | ' | ' | 0 | 0 |
Recorded Investment | ' | ' | ' | ' | 0 | 0 |
Below Market Interest Rate [Member] | Paying as Restructured [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | ' | ' | ' | ' | 0 | 0 |
Recorded Investment | ' | ' | ' | ' | 0 | 0 |
Below Market Interest Rate [Member] | Converted to Nonaccrual [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | ' | ' | ' | ' | 0 | 0 |
Recorded Investment | ' | ' | ' | ' | 0 | 0 |
Extended Payment Term [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | 2 | 3 | 11 | 10 | 10 | 20 |
Foreclosure/Default, Number of loans | ' | ' | ' | ' | 2 | 3 |
Foreclosure/Default, Recorded Investment | ' | ' | ' | ' | 137 | 2,853 |
Extended Payment Term [Member] | Paid in Full [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | ' | ' | ' | ' | 0 | 0 |
Recorded Investment | ' | ' | ' | ' | 0 | 0 |
Extended Payment Term [Member] | Paying as Restructured [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | ' | ' | ' | ' | 7 | 7 |
Recorded Investment | ' | ' | ' | ' | 2,694 | 1,379 |
Extended Payment Term [Member] | Converted to Nonaccrual [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | ' | ' | ' | ' | 1 | 10 |
Recorded Investment | ' | ' | ' | ' | 40 | 6,131 |
Forgiveness of Principal [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | ' | ' | ' | ' | ' | 1 |
Foreclosure/Default, Number of loans | ' | ' | ' | ' | 0 | 1 |
Foreclosure/Default, Recorded Investment | ' | ' | ' | ' | 0 | 635 |
Forgiveness of Principal [Member] | Paid in Full [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | ' | ' | ' | ' | 0 | 0 |
Recorded Investment | ' | ' | ' | ' | 0 | 0 |
Forgiveness of Principal [Member] | Paying as Restructured [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | ' | ' | ' | ' | 0 | 0 |
Recorded Investment | ' | ' | ' | ' | 0 | 0 |
Forgiveness of Principal [Member] | Converted to Nonaccrual [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | ' | ' | ' | ' | 0 | 0 |
Recorded Investment | ' | ' | ' | ' | 0 | 0 |
Other [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | 1 | 1 | 5 | 7 | 8 | ' |
Foreclosure/Default, Number of loans | ' | ' | ' | ' | 0 | ' |
Foreclosure/Default, Recorded Investment | ' | ' | ' | ' | 0 | ' |
Other [Member] | Paid in Full [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | ' | ' | ' | ' | 0 | ' |
Recorded Investment | ' | ' | ' | ' | 0 | ' |
Other [Member] | Paying as Restructured [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | ' | ' | ' | ' | 8 | ' |
Recorded Investment | ' | ' | ' | ' | 1,138 | ' |
Other [Member] | Converted to Nonaccrual [Member] | ' | ' | ' | ' | ' | ' |
Number of loans | ' | ' | ' | ' | 0 | ' |
Recorded Investment | ' | ' | ' | ' | $0 | ' |
LOANS_Details_6
LOANS (Details 6) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | |
In Thousands, unless otherwise specified | |||||
Loans | $349,087 | $367,892 | [1] | $386,522 | $417,624 |
Commercial and Industrial [Member] | ' | ' | ' | ' | |
Loans | 29,233 | 29,297 | 33,175 | 33,146 | |
Commercial and Industrial [Member] | Superior [Member] | ' | ' | ' | ' | |
Loans | 738 | 296 | ' | 722 | |
Commercial and Industrial [Member] | Very Good [Member] | ' | ' | ' | ' | |
Loans | 0 | 7 | ' | 154 | |
Commercial and Industrial [Member] | Good [Member] | ' | ' | ' | ' | |
Loans | 5,731 | 7,406 | ' | 5,184 | |
Commercial and Industrial [Member] | Acceptable [Member] | ' | ' | ' | ' | |
Loans | 10,405 | 7,482 | ' | 8,224 | |
Commercial and Industrial [Member] | Acceptable With Care [Member] | ' | ' | ' | ' | |
Loans | 6,464 | 12,803 | ' | 15,048 | |
Commercial and Industrial [Member] | Special Mention [Member] | ' | ' | ' | ' | |
Loans | 5,173 | 691 | ' | 3,062 | |
Commercial and Industrial [Member] | Substandard [Member] | ' | ' | ' | ' | |
Loans | 722 | 612 | ' | 752 | |
Commercial and Industrial [Member] | Doubtful [Member] | ' | ' | ' | ' | |
Loans | 0 | 0 | ' | 0 | |
Commercial and Industrial [Member] | Loss [Member] | ' | ' | ' | ' | |
Loans | 0 | 0 | ' | 0 | |
Construction Loans [Member] | ' | ' | ' | ' | |
Loans | 51,950 | 48,220 | ' | 70,846 | |
Construction Loans [Member] | Superior [Member] | ' | ' | ' | ' | |
Loans | 42 | 49 | ' | 59 | |
Construction Loans [Member] | Very Good [Member] | ' | ' | ' | ' | |
Loans | 0 | 2 | ' | 6 | |
Construction Loans [Member] | Good [Member] | ' | ' | ' | ' | |
Loans | 1,009 | 715 | ' | 2,369 | |
Construction Loans [Member] | Acceptable [Member] | ' | ' | ' | ' | |
Loans | 2,973 | 3,818 | ' | 6,685 | |
Construction Loans [Member] | Acceptable With Care [Member] | ' | ' | ' | ' | |
Loans | 45,105 | 37,625 | ' | 54,087 | |
Construction Loans [Member] | Special Mention [Member] | ' | ' | ' | ' | |
Loans | 1,285 | 3,233 | ' | 2,671 | |
Construction Loans [Member] | Substandard [Member] | ' | ' | ' | ' | |
Loans | 1,536 | 2,778 | ' | 4,969 | |
Construction Loans [Member] | Doubtful [Member] | ' | ' | ' | ' | |
Loans | 0 | 0 | ' | 0 | |
Construction Loans [Member] | Loss [Member] | ' | ' | ' | ' | |
Loans | 0 | 0 | ' | 0 | |
Commercial Real Estate [Member] | ' | ' | ' | ' | |
Loans | 174,746 | 186,949 | 189,598 | 192,047 | |
Commercial Real Estate [Member] | Superior [Member] | ' | ' | ' | ' | |
Loans | 0 | 0 | ' | 0 | |
Commercial Real Estate [Member] | Very Good [Member] | ' | ' | ' | ' | |
Loans | 0 | 300 | ' | 429 | |
Commercial Real Estate [Member] | Good [Member] | ' | ' | ' | ' | |
Loans | 18,367 | 19,623 | ' | 16,510 | |
Commercial Real Estate [Member] | Acceptable [Member] | ' | ' | ' | ' | |
Loans | 67,224 | 66,716 | ' | 67,922 | |
Commercial Real Estate [Member] | Acceptable With Care [Member] | ' | ' | ' | ' | |
Loans | 62,107 | 70,895 | ' | 60,604 | |
Commercial Real Estate [Member] | Special Mention [Member] | ' | ' | ' | ' | |
Loans | 19,522 | 18,278 | ' | 27,177 | |
Commercial Real Estate [Member] | Substandard [Member] | ' | ' | ' | ' | |
Loans | 7,526 | 11,137 | ' | 19,405 | |
Commercial Real Estate [Member] | Doubtful [Member] | ' | ' | ' | ' | |
Loans | 0 | 0 | ' | 0 | |
Commercial Real Estate [Member] | Loss [Member] | ' | ' | ' | ' | |
Loans | 0 | 0 | ' | 0 | |
Multi Family Residential Real Estate [Member] | ' | ' | ' | ' | |
Loans | 19,145 | 19,524 | 21,296 | 23,377 | |
Multi Family Residential Real Estate [Member] | Superior [Member] | ' | ' | ' | ' | |
Loans | 0 | 0 | ' | 0 | |
Multi Family Residential Real Estate [Member] | Very Good [Member] | ' | ' | ' | ' | |
Loans | 0 | 0 | ' | 0 | |
Multi Family Residential Real Estate [Member] | Good [Member] | ' | ' | ' | ' | |
Loans | 6,296 | 0 | ' | 1,064 | |
Multi Family Residential Real Estate [Member] | Acceptable [Member] | ' | ' | ' | ' | |
Loans | 5,178 | 7,320 | ' | 12,828 | |
Multi Family Residential Real Estate [Member] | Acceptable With Care [Member] | ' | ' | ' | ' | |
Loans | 5,275 | 9,704 | ' | 7,820 | |
Multi Family Residential Real Estate [Member] | Special Mention [Member] | ' | ' | ' | ' | |
Loans | 1,392 | 1,018 | ' | 125 | |
Multi Family Residential Real Estate [Member] | Substandard [Member] | ' | ' | ' | ' | |
Loans | 1,004 | 1,482 | ' | 1,540 | |
Multi Family Residential Real Estate [Member] | Doubtful [Member] | ' | ' | ' | ' | |
Loans | 0 | 0 | ' | 0 | |
Multi Family Residential Real Estate [Member] | Loss [Member] | ' | ' | ' | ' | |
Loans | 0 | 0 | ' | 0 | |
Loans to Individuals and Overdrafts [Member] | ' | ' | ' | ' | |
Loans | 8,194 | 8,734 | 8,946 | 7,671 | |
Loans to Individuals and Overdrafts [Member] | Pass [Member] | ' | ' | ' | ' | |
Loans | 6,678 | 8,634 | ' | 7,447 | |
Loans to Individuals and Overdrafts [Member] | Non Pass [Member] | ' | ' | ' | ' | |
Loans | 1,519 | 100 | ' | 224 | |
Family Residential Real Estate 1 to 4 [Member] | ' | ' | ' | ' | |
Loans | 34,157 | 41,017 | 47,076 | 52,182 | |
Family Residential Real Estate 1 to 4 [Member] | Pass [Member] | ' | ' | ' | ' | |
Loans | 28,601 | 33,944 | ' | 43,647 | |
Family Residential Real Estate 1 to 4 [Member] | Special Mention [Member] | ' | ' | ' | ' | |
Loans | 1,697 | 2,839 | ' | 2,925 | |
Family Residential Real Estate 1 to 4 [Member] | Substandard [Member] | ' | ' | ' | ' | |
Loans | 3,859 | 4,234 | ' | 5,610 | |
Home Equity Line Of Credit [Member] | ' | ' | ' | ' | |
Loans | 32,206 | 34,603 | 34,988 | 38,702 | |
Home Equity Line Of Credit [Member] | Pass [Member] | ' | ' | ' | ' | |
Loans | 30,014 | 32,347 | ' | 35,127 | |
Home Equity Line Of Credit [Member] | Special Mention [Member] | ' | ' | ' | ' | |
Loans | 1,226 | 1,103 | ' | 1,391 | |
Home Equity Line Of Credit [Member] | Substandard [Member] | ' | ' | ' | ' | |
Loans | $966 | $1,153 | ' | $2,184 | |
[1] | Derived from audited consolidated financial statements. |
LOANS_Details_7
LOANS (Details 7) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |||
Allowance for loan losses, Balance, beginning of period | $7,218,000 | $8,510,000 | $7,897,000 | [1] | $10,034,000 | $10,034,000 | $10,015,000 | ' | |
Provision (recovery) for loan losses | -130,000 | 189,000 | -605,000 | -2,597,000 | -2,597,000 | 6,218,000 | 15,634,000 | ||
Loans charged-off | -636,000 | -398,000 | -1,148,000 | -2,417,000 | -3,254,000 | -10,422,000 | ' | ||
Recoveries | 405,000 | 287,000 | 714,000 | 3,568,000 | 3,714,000 | 4,223,000 | ' | ||
Allowance for loan losses, Balance, end of period | 6,858,000 | 8,588,000 | 6,858,000 | 8,588,000 | 7,897,000 | [1] | 10,034,000 | 10,015,000 | |
Ending Balance: individually evaluated for impairment | 605,000 | 1,074,000 | 605,000 | 1,074,000 | 909,000 | 1,515,000 | ' | ||
Ending Balance: collectively evaluated for impairment | 6,253,000 | 7,514,000 | 6,253,000 | 7,514,000 | 6,988,000 | 8,519,000 | ' | ||
Loans | ' | ' | ' | ' | ' | ' | ' | ||
Ending balance | 349,087,000 | 386,522,000 | 349,087,000 | 386,522,000 | 367,892,000 | [1] | 417,624,000 | ' | |
Ending Balance: individually evaluated for impairment | 19,668,000 | 23,194,000 | 19,668,000 | 23,194,000 | 19,721,000 | 24,835,000 | ' | ||
Ending Balance: collectively evaluated for impairment | 329,963,000 | 363,328,000 | 329,963,000 | 363,328,000 | 348,623,000 | 393,136,000 | ' | ||
Commercial and Industrial [Member] | ' | ' | ' | ' | ' | ' | ' | ||
Allowance for loan losses, Balance, beginning of period | 250,000 | 386,000 | 278,000 | 719,000 | 719,000 | 1,052,000 | ' | ||
Provision (recovery) for loan losses | -58,000 | 31,000 | 16,000 | -2,925,000 | -2,962,000 | 18,000 | ' | ||
Loans charged-off | -1,000 | -7,000 | -130,000 | -58,000 | -193,000 | -4,116,000 | ' | ||
Recoveries | 13,000 | 13,000 | 40,000 | 2,687,000 | 2,714,000 | 3,765,000 | ' | ||
Allowance for loan losses, Balance, end of period | 204,000 | 423,000 | 204,000 | 423,000 | 278,000 | 719,000 | ' | ||
Ending Balance: individually evaluated for impairment | 7,000 | 124,000 | 7,000 | 124,000 | 51,000 | 0 | ' | ||
Ending Balance: collectively evaluated for impairment | 197,000 | 299,000 | 197,000 | 299,000 | 227,000 | 719,000 | ' | ||
Loans | ' | ' | ' | ' | ' | ' | ' | ||
Ending balance | 29,233,000 | 33,175,000 | 29,233,000 | 33,175,000 | 29,297,000 | 33,146,000 | ' | ||
Ending Balance: individually evaluated for impairment | 642,000 | 703,000 | 642,000 | 703,000 | 611,000 | 478,000 | ' | ||
Ending Balance: collectively evaluated for impairment | 28,591,000 | 32,472,000 | 28,591,000 | 32,472,000 | 28,686,000 | 32,668,000 | ' | ||
Construction Loans Real Estate [Member] | ' | ' | ' | ' | ' | ' | ' | ||
Allowance for loan losses, Balance, beginning of period | 608,000 | 482,000 | 798,000 | 1,540,000 | 1,540,000 | 349,000 | ' | ||
Provision (recovery) for loan losses | -56,000 | 664,000 | -246,000 | -247,000 | -339,000 | 2,172,000 | ' | ||
Loans charged-off | -28,000 | -187,000 | -28,000 | -645,000 | -720,000 | -993,000 | ' | ||
Recoveries | 22,000 | 3,000 | 22,000 | 314,000 | 317,000 | 12,000 | ' | ||
Allowance for loan losses, Balance, end of period | 546,000 | 962,000 | 546,000 | 962,000 | 798,000 | 1,540,000 | ' | ||
Ending Balance: individually evaluated for impairment | 43,000 | 60,000 | 43,000 | 60,000 | 64,000 | 674,000 | ' | ||
Ending Balance: collectively evaluated for impairment | 503,000 | 902,000 | 503,000 | 902,000 | 734,000 | 866,000 | ' | ||
Loans | ' | ' | ' | ' | ' | ' | ' | ||
Ending balance | 51,950,000 | 51,443,000 | 51,950,000 | 51,443,000 | 48,220,000 | 70,846,000 | ' | ||
Ending Balance: individually evaluated for impairment | 2,347,000 | 3,061,000 | 2,347,000 | 3,061,000 | 2,642,000 | 4,376,000 | ' | ||
Ending Balance: collectively evaluated for impairment | 49,603,000 | 48,382,000 | 49,603,000 | 48,382,000 | 45,578,000 | 66,470,000 | ' | ||
Commercial Real Estate [Member] | ' | ' | ' | ' | ' | ' | ' | ||
Allowance for loan losses, Balance, beginning of period | 4,585,000 | 5,228,000 | 4,946,000 | 4,771,000 | 4,771,000 | 3,111,000 | ' | ||
Provision (recovery) for loan losses | 218,000 | -192,000 | -36,000 | 1,165,000 | 1,468,000 | 4,570,000 | ' | ||
Loans charged-off | -206,000 | -50,000 | -385,000 | -1,031,000 | -1,580,000 | -2,970,000 | ' | ||
Recoveries | 24,000 | 120,000 | 96,000 | 201,000 | 287,000 | 60,000 | ' | ||
Allowance for loan losses, Balance, end of period | 4,621,000 | 5,106,000 | 4,621,000 | 5,106,000 | 4,946,000 | 4,771,000 | ' | ||
Ending Balance: individually evaluated for impairment | 361,000 | 532,000 | 361,000 | 532,000 | 581,000 | 498,000 | ' | ||
Ending Balance: collectively evaluated for impairment | 4,260,000 | 4,574,000 | 4,260,000 | 4,574,000 | 4,365,000 | 4,273,000 | ' | ||
Loans | ' | ' | ' | ' | ' | ' | ' | ||
Ending balance | 174,746,000 | 189,598,000 | 174,746,000 | 189,598,000 | 186,949,000 | 192,047,000 | ' | ||
Ending Balance: individually evaluated for impairment | 9,233,000 | 13,273,000 | 9,233,000 | 13,273,000 | 10,492,000 | 14,234,000 | ' | ||
Ending Balance: collectively evaluated for impairment | 165,513,000 | 176,325,000 | 165,513,000 | 176,325,000 | 176,457,000 | 177,813,000 | ' | ||
Family Residential Real Estate 1 to 4 [Member] | ' | ' | ' | ' | ' | ' | ' | ||
Allowance for loan losses, Balance, beginning of period | 1,045,000 | 1,314,000 | 1,070,000 | 1,661,000 | 1,661,000 | 1,900,000 | ' | ||
Provision (recovery) for loan losses | -428,000 | -166,000 | -353,000 | -535,000 | -591,000 | 1,026,000 | ' | ||
Loans charged-off | -188,000 | -63,000 | -309,000 | -162,000 | -232,000 | -1,512,000 | ' | ||
Recoveries | 352,000 | 91,000 | 373,000 | 212,000 | 232,000 | 247,000 | ' | ||
Allowance for loan losses, Balance, end of period | 781,000 | 1,176,000 | 781,000 | 1,176,000 | 1,070,000 | 1,661,000 | ' | ||
Ending Balance: individually evaluated for impairment | 75,000 | 328,000 | 75,000 | 328,000 | 157,000 | 170,000 | ' | ||
Ending Balance: collectively evaluated for impairment | 706,000 | 848,000 | 706,000 | 848,000 | 913,000 | 1,491,000 | ' | ||
Loans | ' | ' | ' | ' | ' | ' | ' | ||
Ending balance | 34,157,000 | 47,076,000 | 34,157,000 | 47,076,000 | 41,017,000 | 52,182,000 | ' | ||
Ending Balance: individually evaluated for impairment | 4,110,000 | 3,744,000 | 4,110,000 | 3,744,000 | 3,651,000 | 2,836,000 | ' | ||
Ending Balance: collectively evaluated for impairment | 30,047,000 | 43,332,000 | 30,047,000 | 43,332,000 | 37,366,000 | 49,346,000 | ' | ||
Home Equity Line of Credit [Member] | ' | ' | ' | ' | ' | ' | ' | ||
Allowance for loan losses, Balance, beginning of period | 610,000 | 897,000 | 627,000 | 1,122,000 | 1,122,000 | 1,433,000 | ' | ||
Provision (recovery) for loan losses | 153,000 | -150,000 | 99,000 | -16,000 | -110,000 | 298,000 | ' | ||
Loans charged-off | -192,000 | -83,000 | -231,000 | -459,000 | -459,000 | -661,000 | ' | ||
Recoveries | -14,000 | 51,000 | 62,000 | 68,000 | 74,000 | 52,000 | ' | ||
Allowance for loan losses, Balance, end of period | 557,000 | 715,000 | 557,000 | 715,000 | 627,000 | 1,122,000 | ' | ||
Ending Balance: individually evaluated for impairment | 117,000 | 16,000 | 117,000 | 16,000 | 43,000 | 158,000 | ' | ||
Ending Balance: collectively evaluated for impairment | 440,000 | 699,000 | 440,000 | 699,000 | 584,000 | 964,000 | ' | ||
Loans | ' | ' | ' | ' | ' | ' | ' | ||
Ending balance | 32,206,000 | 34,988,000 | 32,206,000 | 34,988,000 | 34,603,000 | 38,702,000 | ' | ||
Ending Balance: individually evaluated for impairment | 930,000 | 774,000 | 930,000 | 774,000 | 819,000 | 1,138,000 | ' | ||
Ending Balance: collectively evaluated for impairment | 31,276,000 | 34,214,000 | 31,276,000 | 34,214,000 | 33,784,000 | 37,564,000 | ' | ||
Loans to Individuals and Overdrafts [Member] | ' | ' | ' | ' | ' | ' | ' | ||
Allowance for loan losses, Balance, beginning of period | 62,000 | 80,000 | 72,000 | 94,000 | 94,000 | 1,530,000 | ' | ||
Provision (recovery) for loan losses | 14,000 | -6,000 | -65,000 | -43,000 | -42,000 | -1,353,000 | ' | ||
Loans charged-off | -21,000 | -8,000 | -65,000 | -62,000 | -70,000 | -170,000 | ' | ||
Recoveries | 8,000 | 9,000 | 121,000 | 86,000 | 90,000 | 87,000 | ' | ||
Allowance for loan losses, Balance, end of period | 63,000 | 75,000 | 63,000 | 75,000 | 72,000 | 94,000 | ' | ||
Ending Balance: individually evaluated for impairment | 2,000 | 5,000 | 2,000 | 5,000 | 4,000 | 15,000 | ' | ||
Ending Balance: collectively evaluated for impairment | 61,000 | 70,000 | 61,000 | 70,000 | 68,000 | 79,000 | ' | ||
Loans | ' | ' | ' | ' | ' | ' | ' | ||
Ending balance | 8,194,000 | 8,946,000 | 8,194,000 | 8,946,000 | 8,734,000 | 7,671,000 | ' | ||
Ending Balance: individually evaluated for impairment | 11,000 | 124,000 | 11,000 | 124,000 | 24,000 | 233,000 | ' | ||
Ending Balance: collectively evaluated for impairment | 8,183,000 | 8,822,000 | 8,183,000 | 8,822,000 | 8,710,000 | 7,438,000 | ' | ||
Multi Family Residential Real Estate [Member] | ' | ' | ' | ' | ' | ' | ' | ||
Allowance for loan losses, Balance, beginning of period | 58,000 | 123,000 | 106,000 | 127,000 | 127,000 | 640,000 | ' | ||
Provision (recovery) for loan losses | 28,000 | 8,000 | -20,000 | 4,000 | -21,000 | -513,000 | ' | ||
Loans charged-off | 0 | 0 | 0 | 0 | 0 | 0 | ' | ||
Recoveries | 0 | 0 | 0 | 0 | 0 | 0 | ' | ||
Allowance for loan losses, Balance, end of period | 86,000 | 131,000 | 86,000 | 131,000 | 106,000 | 127,000 | ' | ||
Ending Balance: individually evaluated for impairment | 0 | 9,000 | 0 | 9,000 | 9,000 | 0 | ' | ||
Ending Balance: collectively evaluated for impairment | 86,000 | 122,000 | 86,000 | 122,000 | 97,000 | 127,000 | ' | ||
Loans | ' | ' | ' | ' | ' | ' | ' | ||
Ending balance | 19,145,000 | 21,296,000 | 19,145,000 | 21,296,000 | 19,524,000 | 23,377,000 | ' | ||
Ending Balance: individually evaluated for impairment | 2,395,000 | 1,515,000 | 2,395,000 | 1,515,000 | 1,482,000 | 1,540,000 | ' | ||
Ending Balance: collectively evaluated for impairment | $16,750,000 | $19,781,000 | $16,750,000 | $19,781,000 | $18,042,000 | $21,837,000 | ' | ||
[1] | Derived from audited consolidated financial statements. |
LOANS_Details_Textual
LOANS (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Number | Number | Number | Number | Number | Number | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | ' | ' | ' | ' | $108,000 | ' | |
Impaired Financing Receivable, Recorded Investment | 19,668,000 | ' | 19,668,000 | ' | 19,721,000 | 24,835,000 | |
Impaired Loans Required for Specific Reserves | 7,100,000 | ' | 7,100,000 | ' | 6,000,000 | 9,600,000 | |
With no related allowance, Recorded Investment | 12,605,000 | ' | 12,605,000 | ' | 13,719,000 | 15,271,000 | |
Increase (Decrease) in Finance Receivables | ' | ' | 3,900,000 | ' | 3,000,000 | ' | |
Financing Receivable, Modifications, Number of Contracts | 6 | 4 | 19 | 17 | 18 | 21 | |
Allowance for Loan and Lease Losses, Period Increase (Decrease) | ' | ' | 1,700,000 | ' | 564,000 | ' | |
Loans and Leases Receivable, Gross, Total | 349,087,000 | 386,522,000 | 349,087,000 | 386,522,000 | 367,892,000 | [1] | 417,624,000 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 8,141,000 | ' | 8,141,000 | ' | 10,126,000 | 17,623,000 | |
Impaired Financing Receivable, With Related Allowance, Recorded Investment | 7,063,000 | ' | 7,063,000 | ' | 6,002,000 | 9,564,000 | |
Allowance for Loan and Lease Losses, Write-offs | 636,000 | 398,000 | 1,148,000 | 2,417,000 | 3,254,000 | 10,422,000 | |
Impaired Loans [Member] | ' | ' | ' | ' | ' | ' | |
With no related allowance, Recorded Investment | ' | ' | ' | ' | 13,700,000 | 15,300,000 | |
Loans and Leases Receivable, Gross, Total | ' | ' | ' | ' | 19,700,000 | 24,800,000 | |
Financing Receivable, Recorded Investment, Nonaccrual Status | ' | ' | ' | ' | 10,100,000 | 17,600,000 | |
Financing Receivable Recorded Investment Still Accruing | ' | ' | ' | ' | 9,600,000 | 7,200,000 | |
Impaired Financing Receivable, With Related Allowance, Recorded Investment | ' | ' | ' | ' | 6,000,000 | 9,600,000 | |
Allowance for Loan and Lease Losses, Write-offs | ' | ' | ' | ' | 3,000,000 | 5,300,000 | |
Nonaccrual Impaired Loans [Member] | ' | ' | ' | ' | ' | ' | |
Impaired Financing Receivable, Recorded Investment | 8,100,000 | ' | 8,100,000 | ' | 10,100,000 | ' | |
Accrual Impaired Loans [Member] | ' | ' | ' | ' | ' | ' | |
Impaired Financing Receivable, Recorded Investment | 11,600,000 | ' | 11,600,000 | ' | 9,600,000 | ' | |
Troubled Debt Restructurings [Member] | ' | ' | ' | ' | ' | ' | |
Financing Receivable, Modifications, Number of Contracts | ' | ' | ' | ' | 33 | ' | |
Financing Receivable, Modifications, Recorded Investment | 10,600,000 | ' | 10,600,000 | ' | 6,600,000 | ' | |
Troubled Debt Restructuring Accrual Status [Member] | ' | ' | ' | ' | ' | ' | |
Financing Receivable, Modifications, Number of Contracts | ' | ' | ' | ' | 14 | ' | |
Financing Receivable, Modifications, Recorded Investment | 9,300,000 | ' | 9,300,000 | ' | 1,900,000 | ' | |
Troubled Debt Restructuring Nonaccrual Status [Member] | ' | ' | ' | ' | ' | ' | |
Financing Receivable, Modifications, Number of Contracts | ' | ' | ' | ' | 19 | ' | |
Financing Receivable, Modifications, Recorded Investment | 1,300,000 | ' | 1,300,000 | ' | 4,700,000 | ' | |
Unused Lines of Credit [Member] | ' | ' | ' | ' | ' | ' | |
Line of Credit Facility, Maximum Amount Outstanding During Period | ' | ' | 84,400,000 | ' | 55,200,000 | ' | |
Unused Lines of Credit [Member] | Directors And Executive Officers [Member] | ' | ' | ' | ' | ' | ' | |
Line of Credit Facility, Maximum Amount Outstanding During Period | ' | ' | ' | ' | 1,100,000 | ' | |
Commercial and Industrial [Member] | ' | ' | ' | ' | ' | ' | |
With no related allowance, Recorded Investment | 628,000 | ' | 628,000 | ' | 545,000 | 478,000 | |
Loans and Leases Receivable, Gross, Total | 29,233,000 | 33,175,000 | 29,233,000 | 33,175,000 | 29,297,000 | 33,146,000 | |
Financing Receivable, Recorded Investment, Nonaccrual Status | 137,000 | ' | 137,000 | ' | 319,000 | 171,000 | |
Impaired Financing Receivable, With Related Allowance, Recorded Investment | 14,000 | ' | 14,000 | ' | 65,000 | 0 | |
Allowance for Loan and Lease Losses, Write-offs | 1,000 | 7,000 | 130,000 | 58,000 | 193,000 | 4,116,000 | |
Recovery On Previously Reported Loan Fraud | ' | ' | ' | ' | $2,600,000 | ' | |
[1] | Derived from audited consolidated financial statements. |
PREMISES_AND_EQUIPMENT_Details
PREMISES AND EQUIPMENT (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
In Thousands, unless otherwise specified | ||||
Land | ' | $3,105 | $3,105 | |
Buildings | ' | 9,068 | 9,104 | |
Furniture and equipment | ' | 3,592 | 3,424 | |
Leasehold improvements | ' | 29 | 29 | |
Construction in progress | ' | 0 | 19 | |
Property, Plant and Equipment, Gross | ' | 15,794 | 15,681 | |
Less accumulated depreciation | ' | 4,855 | 4,438 | |
Total | $10,882 | $10,939 | [1] | $11,243 |
[1] | Derived from audited consolidated financial statements. |
PREMISES_AND_EQUIPMENT_Details1
PREMISES AND EQUIPMENT (Details 1) (USD $) | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |
2013 | $122 |
2014 | 112 |
2015 | 109 |
2016 | 109 |
2017 | 109 |
Years thereafter | 1,090 |
Operating Leases, Future Minimum Payments Due | $1,651 |
PREMISES_AND_EQUIPMENT_Details2
PREMISES AND EQUIPMENT (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Depreciation, Total | $581,000 | $659,000 | $751,000 |
Assets Held-for-sale, Property, Plant and Equipment | 0 | 1,113,000 | ' |
Lease Expiration Description | 'expire at various times through 2027 | ' | ' |
Operating Leases, Rent Expense | $131,000 | $140,000 | $213,000 |
DEPOSITS_Details
DEPOSITS (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
In Thousands, unless otherwise specified | ||||
Three months or less | ' | $27,384 | ' | |
Over three months through twelve months | ' | 54,301 | ' | |
Over one year through two years | ' | 36,782 | ' | |
Over two years through three years | ' | 47,273 | ' | |
Over three years through four years | ' | 48,433 | ' | |
Over four years through five years | ' | 46,596 | ' | |
Over five years | ' | 659 | ' | |
Time Deposits | $231,682 | $261,428 | [1] | $309,747 |
[1] | Derived from audited consolidated financial statements. |
DEPOSITS_Details_Textual
DEPOSITS (Details Textual) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Deposits, Total | $459,812,000 | $498,559,000 | [1] | $501,377,000 |
Noninterest-bearing Deposit Liabilities, Total | ' | 92,300,000 | ' | |
Interest-bearing Deposit Liabilities, Total | ' | 406,300,000 | ' | |
Deposits, Savings Deposits | 17,543,000 | 22,139,000 | [1] | 24,461,000 |
Deposits, Money Market Deposits and Negotiable Order of Withdrawal (NOW), Total | 129,328,000 | 122,727,000 | [1] | 92,600,000 |
Time Deposits | 231,682,000 | 261,428,000 | [1] | 309,747,000 |
Time Deposits, $100,000 or More, Total | ' | $134,600,000 | ' | |
[1] | Derived from audited consolidated financial statements. |
SHORT_TERM_AND_LONG_TERM_DEBT_1
SHORT TERM AND LONG TERM DEBT (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 |
Balance at December 31 | $15,848 | $19,877 |
Weighted average interest rate at December 31 | 0.27% | 0.39% |
Maximum amount outstanding at any month-end during the year | 24,923 | 22,843 |
Average daily balance outstanding during the year | $21,636 | $20,192 |
Average annual interest rate paid during the year | 0.33% | 0.76% |
SHORT_TERM_AND_LONG_TERM_DEBT_2
SHORT TERM AND LONG TERM DEBT (Details Textual) (USD $) | 12 Months Ended | ||||||
Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2011 | Sep. 20, 2004 | Dec. 31, 2012 | Dec. 31, 2011 | ||
New Century Statutory Trust I [Member] | Federal Home Loan Bank of Atlanta [Member] | Federal Home Loan Bank of Atlanta [Member] | |||||
Short-term Debt, Total | $17,848,000 | [1] | $14,207,000 | $21,877,000 | ' | ' | ' |
Long-term Debt, Total | 12,372,000 | [1] | 12,372,000 | 14,372,000 | ' | ' | ' |
Advances from Federal Home Loan Banks, Total | ' | ' | ' | ' | 2,000,000 | 4,000,000 | |
Federal Home Loan Bank, Advances, Short-term | ' | ' | ' | ' | 2,000,000 | ' | |
Junior Subordinated Notes | 12,400,000 | ' | 12,400,000 | 12,400,000 | ' | ' | |
Debt Instrument, Description of Variable Rate Basis | '3 month LIBOR plus 2.15% | ' | ' | ' | ' | ' | |
Securities Sold under Agreements to Repurchase | 15,848,000 | ' | 19,877,000 | ' | ' | ' | |
Federal Home Loan Bank, Advances, Maturities Summary, Due in Next Twelve Months | 2,000,000 | ' | 2,000,000 | ' | ' | ' | |
Federal Home Loan Bank, Advances, Maturities Summary, One to Five Years, Total | ' | ' | $2,000,000 | ' | ' | ' | |
[1] | Derived from audited consolidated financial statements. |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Current tax provision: | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | $38 | ($19) | ($879) |
State | ' | ' | ' | ' | 0 | 0 | 0 |
Total current tax provision (benefit) | ' | ' | ' | ' | 38 | -19 | -879 |
Deferred tax provision: | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | 2,217 | -355 | -1,876 |
State | ' | ' | ' | ' | 567 | -11 | -529 |
Total deferred tax provision (benefit) | ' | ' | ' | ' | 2,784 | -366 | -2,405 |
Net income tax provision (benefit) | $493 | $341 | $1,685 | $2,305 | $2,822 | ($385) | ($3,284) |
INCOME_TAXES_Details_1
INCOME TAXES (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Income tax at federal statutory rate | ' | ' | ' | ' | $2,536 | ($186) | ($2,801) |
Increase (decrease) resulting from: | ' | ' | ' | ' | ' | ' | ' |
State income taxes, net of federal tax effect | ' | ' | ' | ' | 374 | -7 | -349 |
Tax-exempt interest income | ' | ' | ' | ' | -68 | -72 | -89 |
Income from life insurance | ' | ' | ' | ' | -84 | -87 | -89 |
Incentive stock option expense | ' | ' | ' | ' | 13 | 26 | 50 |
Other permanent differences | ' | ' | ' | ' | 51 | -59 | -6 |
Net income tax provision (benefit) | $493 | $341 | $1,685 | $2,305 | $2,822 | ($385) | ($3,284) |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) (USD $) | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||
Deferred tax assets relating to: | ' | ' |
Allowance for loan losses | $3,044 | $3,869 |
Deferred compensation | 401 | 404 |
Supplemental executive retirement plan | 61 | 61 |
Net operating loss/net economic loss | 295 | 2,140 |
Write-downs on foreclosed real estate | 107 | 354 |
AMT tax credit | 58 | 58 |
Other | 71 | 142 |
Total deferred tax assets | 4,037 | 7,028 |
Deferred tax liabilities relating to: | ' | ' |
Premises and equipment | -730 | -750 |
Deferred loan fees/costs | -22 | -18 |
Unrealized gain on available-for-sale securities | -699 | -806 |
Core deposit intangible | -115 | -210 |
Other | 0 | -95 |
Total deferred tax liabilities | -1,566 | -1,879 |
Net recorded deferred tax asset, included in other assets | $2,471 | $5,149 |
INCOME_TAXES_Details_Textual
INCOME TAXES (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2012 | Dec. 31, 2011 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | ' |
Deferred Tax Assets, Net | $2,471,000 | $5,149,000 |
Deferred Tax Assets, Other Loss Carryforwards | $6,400,000 | ' |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | ||
Beginning balance | $191 | $1,235 | $1,078 | [1] | $1,285 | $1,285 | ' | ' | |
Unrealized gain (loss) on investment securities available for sale | -102 | 167 | -1,446 | 215 | -91 | 286 | -348 | ||
Tax benefit | 34 | -59 | 491 | -82 | 31 | -104 | 116 | ||
Other comprehensive loss before reclassification | -68 | 108 | -955 | 133 | -60 | 182 | -232 | ||
Amounts reclassified from accumulated comprehensive income: | ' | ' | ' | ' | ' | ' | ' | ||
Realized loss on investment securities included in net income | 0 | -51 | 0 | -174 | -223 | -113 | -37 | ||
Tax effect | 0 | 20 | 0 | 68 | 76 | 38 | 11 | ||
Total reclassifications net of tax | 0 | -31 | 0 | -106 | -147 | -75 | -26 | ||
Net current period other comprehensive income (loss) | -68 | 77 | -955 | 27 | -207 | 107 | -258 | ||
Ending balance | $123 | $1,312 | $123 | $1,312 | $1,078 | [1] | $1,285 | ' | |
[1] | Derived from audited consolidated financial statements. |
REGULATORY_MATTERS_Details
REGULATORY MATTERS (Details) (USD $) | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||
Capital, Actual Amount | $65,917 | $58,931 |
Capital to Risk Weighted Assets, Actual Ratio | 16.24% | 13.14% |
Capital Required for Capital Adequacy, Amount | 32,584 | 35,868 |
Capital Required for Capital Adequacy to Risk Weighted Assets, Ratio | 8.00% | 8.00% |
Capital Required to be Well Capitalized, Amount | 46,840 | 51,560 |
Capital Required to be Well Capitalized to Risk Weighted Assets, Ratio | 11.50% | 11.50% |
Tier One Risk Based Capital, Actual Amount | 60,791 | 53,272 |
Tier One Risk Based Capital to Risk Weighted Assets, Actual Ratio | 14.98% | 11.88% |
Tier One Risk Based Capital Required for Capital Adequacy, Amount | 16,294 | 17,934 |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets, Ratio | 4.00% | 4.00% |
Tier One Risk Based Capital Required to be Well Capitalized, Amount | 32,588 | 35,868 |
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets, Ratio | 8.00% | 8.00% |
Tier One Leverage Capital, Actual Amount | 60,791 | 53,272 |
Tier One Leverage Capital to Average Assets, Actual Ratio | 10.52% | 8.87% |
Tier One Leverage Capital Required for Capital Adequacy, Amount | 22,995 | 24,033 |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets, Ratio | 4.00% | 4.00% |
Tier One Leverage Capital Required to be Well Capitalized, Amount | 57,489 | 48,066 |
Tier One Leverage Capital Required to be Well Capitalized to Average Assets, Ratio | 8.00% | 8.00% |
Subsidiaries [Member] | ' | ' |
Capital, Actual Amount | 67,443 | 60,600 |
Capital to Risk Weighted Assets, Actual Ratio | 16.60% | 13.49% |
Capital Required for Capital Adequacy, Amount | 32,175 | 35,947 |
Capital Required for Capital Adequacy to Risk Weighted Assets, Ratio | 8.00% | 8.00% |
Tier One Risk Based Capital, Actual Amount | 62,229 | 54,929 |
Tier One Risk Based Capital to Risk Weighted Assets, Actual Ratio | 15.34% | 12.22% |
Tier One Risk Based Capital Required for Capital Adequacy, Amount | 16,359 | 17,973 |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets, Ratio | 4.00% | 4.00% |
Tier One Leverage Capital, Actual Amount | 62,229 | 54,929 |
Tier One Leverage Capital to Average Assets, Actual Ratio | 10.78% | 9.14% |
Tier One Leverage Capital Required for Capital Adequacy, Amount | $23,013 | $24,033 |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets, Ratio | 4.00% | 4.00% |
REGULATORY_MATTERS_Details_Tex
REGULATORY MATTERS (Details Textual) (USD $) | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2004 |
Memorandum [Member] | Trust Preferred Securities [Member] | |||
Maximum Restricted Level Of Capital Surplus To Declare Dividend Or Repurchase Capital Stock | ' | ' | 10.00% | ' |
Tangible Capital Required for Capital Adequacy to Tangible Assets | 9.25% | ' | ' | ' |
Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | 8.00% | ' | ' |
Capital Required to be Well Capitalized to Risk Weighted Assets | 11.50% | 11.50% | ' | ' |
Junior Subordinated Notes | $12,400,000 | $12,400,000 | ' | $12,400,000 |
Proceeds from Issuance of Trust Preferred Securities | ' | ' | ' | $12,000,000 |
OFFBALANCE_SHEET_RISK_Details
OFF-BALANCE SHEET RISK (Details) (USD $) | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |
Undisbursed Commitments [Member] | ' |
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Asset | $53,875 |
Letters Of Credit [Member] | ' |
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Asset | $1,366 |
EMPLOYEE_AND_DIRECTOR_BENEFIT_2
EMPLOYEE AND DIRECTOR BENEFIT PLANS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Estimated fair value of options granted | $2.61 | $2.43 | $3.07 |
Assumptions in estimating average option values: | ' | ' | ' |
Risk-free interest rate | 1.49% | 2.55% | 3.49% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Volatility | 49.85% | 47.06% | 50.29% |
Expected life (in years) | '8 years | '7 years 3 months | '8 years |
EMPLOYEE_AND_DIRECTOR_BENEFIT_3
EMPLOYEE AND DIRECTOR BENEFIT PLANS (Details 1) (USD $) | 12 Months Ended |
Dec. 31, 2012 | |
Shares Available for Future Grants, At December 31, 2011 | 285,942 |
Shares Available for Future Grants, Options authorized | 0 |
Shares Available for Future Grants, Options granted/vested | -5,750 |
Shares Available for Future Grants, Options exercised | 0 |
Shares Available for Future Grants, Options forfeited | 64,147 |
Shares Available for Future Grants, At December 31, 2012 | 344,339 |
Number Of Options Outstanding, At December 31, 2011 | 422,739 |
Number Of Options, Granted/vested | 5,750 |
Number Of Options, Exercised | 0 |
Number Of Options, Forfeited | -64,147 |
Number Of Options Outstanding, At December 31, 2012 | 364,342 |
Outstanding Options, Weighted Average Exercise Price, At December 31, 2011 | $8.58 |
Outstanding Options, Weighted Average Exercise Price, Options granted/vested | $4.77 |
Outstanding Options, Weighted Average Exercise Price, Options exercised | $0 |
Outstanding Options, Weighted Average Exercise Price, Options forfeited | $8.48 |
Outstanding Options, Weighted Average Exercise Price, At December 31, 2012 | $8.53 |
Exercisable Options, Number Outstanding, At December 31, 2011 | 359,123 |
Exercisable Options, Number Outstanding, Options granted/vested | 18,204 |
Exercisable Options, Number Outstanding, Options forfeited | -49,566 |
Exercisable Options, Number Outstanding, At December 31, 2012 | 327,761 |
Exercisable Options, Weighted Average Exercise Price, At December 31, 2011 | $9.04 |
Exercisable Options, Weighted Average Exercise Price, Options granted/vested | $7.28 |
Exercisable Options, Weighted Average Exercise Price, Options forfeited | ($10.54) |
Exercisable Options, Weighted Average Exercise Price, At December 31, 2012 | $8.90 |
EMPLOYEE_AND_DIRECTOR_BENEFIT_4
EMPLOYEE AND DIRECTOR BENEFIT PLANS (Details 2) (USD $) | 12 Months Ended |
Dec. 31, 2012 | |
Number of options outstanding, at end of year | 364,342 |
Number of options exercisable, Outstanding at end of year | 327,761 |
Excercise Price Range One [Member] | ' |
Range of Exercise Prices, Lower Limit | $2.25 |
Range of Exercise Prices, Upper Limit | $7.07 |
Number of options outstanding, at end of year | 272,562 |
Number of options exercisable, Outstanding at end of year | 236,881 |
Excercise Price Range Two [Member] | ' |
Range of Exercise Prices, Lower Limit | $7.08 |
Range of Exercise Prices, Upper Limit | $10.69 |
Number of options outstanding, at end of year | 22,330 |
Number of options exercisable, Outstanding at end of year | 21,430 |
Excercise Price Range Three [Member] | ' |
Range of Exercise Prices, Lower Limit | $10.70 |
Range of Exercise Prices, Upper Limit | $16.22 |
Number of options outstanding, at end of year | 69,450 |
Number of options exercisable, Outstanding at end of year | 69,450 |
EMPLOYEE_AND_DIRECTOR_BENEFIT_5
EMPLOYEE AND DIRECTOR BENEFIT PLANS (Details 3) (USD $) | 12 Months Ended |
Dec. 31, 2012 | |
Non-vested options at December 31, 2011 | 63,616 |
Non-vested options, Granted | 5,750 |
Non-vested options, Vested | 31,362 |
Non-vested options, Forfeited | -64,147 |
Non-vested options at December 31, 2012 | 36,581 |
Non-vested, Weighted-Average Grant Date Fair Value at December 31, 2011 | $2.87 |
Non-vested granted, Weighted-Average Grant Date Fair Value, Grant | $2.61 |
Non-vested Vested, Weighted-Average Grant Date Fair Value, Vested | $2.30 |
Non-vested Vested, Weighted-Average Grant Date Fair Value, Forfeited | $2.91 |
Non-vested Vested, Weighted-Average Grant Date Fair Value at December 31, 2012 | $2.64 |
EMPLOYEE_AND_DIRECTOR_BENEFIT_6
EMPLOYEE AND DIRECTOR BENEFIT PLANS (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 5,750 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $21,000 | $0 | $0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | 5,000 | 0 | 0 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | 69,000 | 147,000 | 237,000 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | '1 year 5 months 23 days | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | '2 years 11 months 8 days | '4 years 11 days | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | '2 years 4 months 17 days | '3 years 3 months 11 days | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 0 | 0 | 96,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | 38,000 | 75,000 | 148,000 |
Omnibus Plan 2010 [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 37,500 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '5 years | ' | ' |
Incentive Stock Option Plan 2004 [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 5,750 | 6,000 | 10,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '5 years | ' | ' |
Deferred Profit Sharing [Member] | ' | ' | ' |
Employee Stock Ownership Plan (ESOP), Plan Description | '100% of the first 6% of an employee’s compensation contributed to the plan. | ' | ' |
Allocated Share-based Compensation Expense | 251,000 | 311,000 | 319,000 |
Deferral Plan [Member] | ' | ' | ' |
Allocated Share-based Compensation Expense | 220,000 | 207,000 | 245,000 |
Chief Executive Officer [Member] | Other Postretirement Benefit Plan, Defined Benefit [Member] | ' | ' | ' |
Defined Benefit Plan Provisions | 20,000 | 57,000 | 21,000 |
Defined Benefit Pension Plan, Liabilities | 394,000 | 409,000 | ' |
Chief Executive Officer [Member] | Nonqualified Supplemental Executive Retirement Plan [Member] | ' | ' | ' |
Defined Benefit Plan Provisions | 18,000 | 71,000 | 26,000 |
Defined Benefit Pension Plan, Liabilities | $359,000 | $429,000 | ' |
PARENT_COMPANY_FINANCIAL_DATA_1
PARENT COMPANY FINANCIAL DATA (Details) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | |
In Thousands, unless otherwise specified | |||||||||
Assets | ' | ' | ' | ' | ' | ' | ' | ' | |
Cash balances with New Century Bank | $86,659 | ' | $113,608 | $97,831 | ' | $77,096 | $35,902 | $28,935 | |
Other assets | 4,404 | ' | 4,347 | [1] | ' | ' | 8,867 | ' | ' |
Total Assets | 545,018 | ' | 585,453 | [1] | ' | ' | 589,651 | ' | ' |
Liabilities and Shareholders’ Equity | ' | ' | ' | ' | ' | ' | ' | ' | |
Junior subordinated debentures | ' | ' | 12,400 | ' | ' | 12,400 | ' | ' | |
Shareholders’ equity: | ' | ' | ' | ' | ' | ' | ' | ' | |
Common stock | 6,921 | ' | 6,914 | [1] | ' | ' | 6,860 | ' | ' |
Additional paid-in capital | 42,058 | ' | 42,000 | [1] | ' | ' | 41,851 | ' | ' |
Retained earnings (accumulated deficit) | 6,889 | ' | 4,187 | [1] | ' | ' | -450 | ' | ' |
Accumulated other comprehensive income | 123 | 191 | 1,078 | [1] | 1,312 | 1,235 | 1,285 | ' | ' |
Total Shareholders’ Equity | 55,991 | ' | 54,179 | [1] | 53,671 | ' | 49,546 | 49,692 | 54,409 |
Total Liabilities and Shareholders’ Equity | 545,018 | ' | 585,453 | [1] | ' | ' | 589,651 | ' | ' |
Parent Company [Member] | ' | ' | ' | ' | ' | ' | ' | ' | |
Assets | ' | ' | ' | ' | ' | ' | ' | ' | |
Cash balances with New Century Bank | ' | ' | 1,437 | ' | ' | 1,053 | 507 | 342 | |
Investment in New Century Bank | ' | ' | 64,639 | ' | ' | 59,889 | ' | ' | |
Investment in New Century Statutory Trust I | ' | ' | 513 | ' | ' | 503 | ' | ' | |
Other assets | ' | ' | 109 | ' | ' | 776 | ' | ' | |
Total Assets | ' | ' | 66,698 | ' | ' | 62,221 | ' | ' | |
Liabilities and Shareholders’ Equity | ' | ' | ' | ' | ' | ' | ' | ' | |
Junior subordinated debentures | ' | ' | 12,372 | ' | ' | 12,372 | ' | ' | |
Accrued interest and other liabilities | ' | ' | 147 | ' | ' | 303 | ' | ' | |
Shareholders’ equity: | ' | ' | ' | ' | ' | ' | ' | ' | |
Common stock | ' | ' | 6,914 | ' | ' | 6,860 | ' | ' | |
Additional paid-in capital | ' | ' | 42,000 | ' | ' | 41,851 | ' | ' | |
Retained earnings (accumulated deficit) | ' | ' | 4,187 | ' | ' | -450 | ' | ' | |
Accumulated other comprehensive income | ' | ' | 1,078 | ' | ' | 1,285 | ' | ' | |
Total Shareholders’ Equity | ' | ' | 54,179 | ' | ' | 49,546 | ' | ' | |
Total Liabilities and Shareholders’ Equity | ' | ' | $66,698 | ' | ' | $62,221 | ' | ' | |
[1] | Derived from audited consolidated financial statements. |
PARENT_COMPANY_FINANCIAL_DATA_2
PARENT COMPANY FINANCIAL DATA (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Income tax benefit | $493 | $341 | $1,685 | $2,305 | $2,822 | ($385) | ($3,284) |
Net income (loss) | 649 | 632 | 2,702 | 3,902 | 4,637 | -163 | -4,955 |
Parent Company [Member] | ' | ' | ' | ' | ' | ' | ' |
Dividends | ' | ' | ' | ' | 0 | 0 | 233 |
Equity in earnings (losses) of subsidiaries | ' | ' | ' | ' | 4,929 | 115 | -4,904 |
Operating expense | ' | ' | ' | ' | -437 | -417 | -425 |
Income tax benefit | ' | ' | ' | ' | 145 | 139 | 141 |
Net income (loss) | ' | ' | ' | ' | $4,637 | ($163) | ($4,955) |
PARENT_COMPANY_FINANCIAL_DATA_3
PARENT COMPANY FINANCIAL DATA (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | $649 | $632 | $2,702 | $3,902 | $4,637 | ($163) | ($4,955) |
Net change in other assets | ' | ' | 434 | 558 | 1,781 | 1,733 | -1,444 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | ' | ' | 3,604 | 4,873 | 8,450 | 10,586 | 8,845 |
CASH FLOW FROM FINANCING ACTIVITIES | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale of common stock | ' | ' | ' | ' | 165 | 0 | 0 |
Tax benefit from stock option exercises | ' | ' | ' | ' | 0 | 0 | 16 |
NET CASH USED IN FINANCING ACTIVITIES | ' | ' | -42,344 | -2,994 | 5,739 | -37,011 | 1,787 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | ' | ' | -26,949 | 20,735 | 36,512 | 41,194 | 6,967 |
CASH AND CASH EQUIVALENTS, BEGINNING | ' | ' | 113,608 | 77,096 | 77,096 | 35,902 | 28,935 |
CASH AND CASH EQUIVALENTS, ENDING | 86,659 | 97,831 | 86,659 | 97,831 | 113,608 | 77,096 | 35,902 |
Parent Company [Member] | ' | ' | ' | ' | ' | ' | ' |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | ' | ' | ' | ' | 4,637 | -163 | -4,955 |
Equity in undistributed (income) losses of subsidiaries | ' | ' | ' | ' | -4,929 | -115 | 4,904 |
Net change in other assets | ' | ' | ' | ' | 667 | 647 | -124 |
Net change in other liabilities | ' | ' | ' | ' | -156 | 177 | -8 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | ' | ' | ' | ' | 219 | 546 | -183 |
CASH FLOW FROM FINANCING ACTIVITIES | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale of common stock | ' | ' | ' | ' | 165 | 0 | 0 |
Proceeds from other issuance of common stock | ' | ' | ' | ' | 0 | 0 | 332 |
Tax benefit from stock option exercises | ' | ' | ' | ' | 0 | 0 | 16 |
NET CASH USED IN FINANCING ACTIVITIES | ' | ' | ' | ' | 165 | 0 | 348 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | ' | ' | ' | ' | 384 | 546 | 165 |
CASH AND CASH EQUIVALENTS, BEGINNING | ' | ' | ' | 1,053 | 1,053 | 507 | 342 |
CASH AND CASH EQUIVALENTS, ENDING | ' | ' | ' | ' | $1,437 | $1,053 | $507 |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details Textual) (Directors and Officers Liability Insurance [Member], USD $) | 12 Months Ended |
Dec. 31, 2010 | |
Directors and Officers Liability Insurance [Member] | ' |
Premiums Paid For Insurance Policies | $30,000 |
PREVIOUSLY_REPORTED_LOAN_FRAUD1
PREVIOUSLY REPORTED LOAN FRAUD (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2010 | |
Previously Reported Loan Fraud [Member] | Previously Reported Loan Fraud [Member] | Previously Reported Loan Fraud [Member] | Previously Reported Loan Fraud [Member] | ||||||||
Allowance for Loan and Lease Losses, Adjustments, Net, Total | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10,800,000 |
Provision for Loan and Lease Losses | -130,000 | 189,000 | -605,000 | -2,597,000 | -2,597,000 | 6,218,000 | 15,634,000 | 2,600,000 | 3,700,000 | 777,000 | ' |
Legal Fees | ' | ' | ' | ' | ' | ' | ' | $47,000 | $361,000 | $211,000 | ' |
BRANCH_SALE_Details_Textual
BRANCH SALE (Details Textual) (USD $) | 0 Months Ended | 9 Months Ended | 12 Months Ended |
Apr. 06, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |
Purchase Price of Deposits and Selected Assets | $1,800,000 | ' | ' |
Purchase Price of Real Property and Equipment | 1,100,000 | ' | ' |
Purchase Price of Deposit Premium | 688,000 | ' | ' |
Write Off of Core Deposit Intangible on Deposit Premium | 131,000 | ' | ' |
Net Gain Offset of Deposit Premium | 557,000 | ' | ' |
Deposits Assumed | 1,100,000 | 14,600,000 | 14,600,000 |
Deposit Liabilities Reclassified as Loans Receivable | 338,000 | ' | ' |
Deposit Liabilities, Accrued Interest | $2,000 | $5,000 | $5,000 |
Description on Separate Loan Payment Conditions | ' | 'There was a separate payment for the loans purchased that was not included in the $1.8 million purchase price | 'There was a separate payment for the loans purchased that was not included in the $1.8 million purchase price. |
MERGER_WITH_SELECT_BANCORP_INC1
MERGER WITH SELECT BANCORP, INC (Details Textual) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Assets, Total | $545,018,000 | $585,453,000 | [1] | $589,651,000 |
Parent Company [Member] | ' | ' | ' | |
Assets, Total | ' | 66,698,000 | 62,221,000 | |
Common Stock Closing Price | $6.87 | ' | ' | |
Select Bancorp, Inc [Member] | ' | ' | ' | |
Assets, Total | 265,300,000 | ' | ' | |
Sale of Stock, Price Per Share | $1.83 | ' | ' | |
Common Stock, Value, Outstanding | $31,100,000 | ' | ' | |
Common Stock, Other Shares, Outstanding | 2,475,000 | ' | ' | |
Common Stock Closing Price | $12.55 | ' | ' | |
[1] | Derived from audited consolidated financial statements. |